On Friday, Expedia Group reported that decreased travel demand within the United States contributed to their lower-than-predicted revenues for the initial quarter. Additionally, Bank of America stated that credit card transaction data indicated ongoing declines in expenditures on airfare and accommodations throughout the previous month.
The two reports add to growing indications that the US travel and tourism industry may see its first slowdown since the end of the COVID-19 pandemic fuelled a period of “revenge travel” that turned into sustained interest in getting away.
Expedia, the owner of lodging booking sites such as Hotels.com and VRBO along with its own online travel agency, was the most recent U.S. firm to announce a downturn in business involving both overseas guests and local travelers.
Last week, both Airbnb and Hilton observed similar patterns in their quarterly earnings statements. Many of the leading U.S. airlines have announced intentions to cut back on planned routes, attributing this decision to a drop in bookings for leisure travel among budget-conscious passengers.
The U.S. Travel Association has stated that economic unpredictability and worries about travel-related concerns are prevalent.
President Donald Trump’s tariffs
may explain the pullback. In April, Americans’ confidence in the economy slumped for a fifth straight month to the lowest level since the onset of the pandemic.
Individuals are becoming more hesitant to splurge on vacations, particularly trips to the US.
On Friday, Bank of America reported that their credit card customers were keen on spending money on “luxury” items such as dining out during March and April. However, they noted a decrease in expenditures for more expensive non-essential purchases like travel tickets and accommodation, which might be attributed to falling consumer confidence and concerns over future economic conditions.
Overseas, there is outrage regarding the tariffs along with worries about
Tourists being held back at customs
have made citizens of some other countries less interested in travelling to the US, tourism industry experts say.
Last month, the US government reported that 7.1 million international visitors entered the country up until the end of March this year, which represents a decline of 3.3 percent compared to the first quarter of 2024.
The figures did not account for people entering via land routes from Mexico or coming from Canada, where residents have shown anger over Trump’s comments suggesting their nation should become the 51st state.
US and Canadian governmental statistics have revealed significant decreases in
border crossings
from Canada.
Scott Schenkel, Expedia’s Chief Financial Officer, stated that during the January-to-March period, the net value of booking transactions for this travel company heading towards the U.S. decreased by 7%. Additionally, reservations coming from Canada to the U.S. dropped sharply by almost 30% within the same timeframe.
During a conference call with investors on Friday, Expedia CEO Ariane Gorin stated that demand for U.S. travel decreased in April compared to March.
“We continue to experience pressure on travel to the US, however, we have observed some adjustments,” Gorin stated.
People from Europe are visiting the US less frequently nowadays.
, but rather to Latin America.”
Interest in the US as a travel destination is waning.
Last week, Airbnb stated that international trips to the U.S. account for just 2 to 3 percent of their operations. However, they have noticed a decreasing trend in how many people want to visit the United States within this sector.
“I believe Canada provides the clearest illustration of this trend, as we observe that Canadians are significantly less inclined to visit the United States compared to before. Instead, they are increasingly opting for domestic travel, venturing south to Mexico, heading over to South America to explore Brazil, crossing into Europe to experience France, and jetting off to Asia to discover Japan,” stated Ellie Mertz, CFO of Airbnb, during an investor conference call.
Christopher Nassetta, the president and CEO of Hilton, stated that during the initial three months, the company observed a decline in international visitors traveling to their U.S. properties, notably those coming from Canada and Mexico.
However, Nassetta expressed continued optimism regarding the latter part of this year.
“My personal view is that you’ll observe a reduction in some—or possibly a significant amount of—uncertainty over the coming two quarters, which will enable the fundamental resilience of the economy to become more apparent once again,” he stated.
