The U.S. Travel Insights Dashboard

Travel Spending Climbs As Trip Volumes Soften 

Travel spending rose 3.8% year-over-year in May to $119.8 billion, even as almost every measure of travel volume weakened. Air passenger traffic turned negative, hotel and short-term rental demand slowed, and overseas arrivals fell for the second month in a row. 

For travel businesses, the distinction between revenue origination matters. Dollar spending continues to rise, but the volume that fills aircraft seats, hotel rooms and event space is losing momentum. That divergence puts pressure on occupancy, load factors and yield, even when headline demand looks firm.

International Inbound

International inbound remained the weakest segment.

• Overseas arrivals fell 6.5% from a year earlier, an improvement from April’s 14.1% decline, though part of that swing traces to the unwinding of an Easter calendar shift rather than a recovery. The two months are best viewed together. Arrivals from China fell to a new low with softness concentrated in the large international gateway states.

• Visa wait times lengthened further, reaching 221 days for applicants in India and a global average of 112 days.

Business Travel

Domestic business travel was the month’s clearest strength. Corporate hotel booking pace ran 6.8% ahead of last year for July, 10.3% for August and 13.6% for September, a firmer corporate demand base heading into autumn.

Leisure Travel

Domestic leisure travel held steadier, though consumer sentiment softened at the margin.

• Leisure hotel booking pace stayed positive throughout the forward weeks, a firmer footing than the flat to negative readings seen earlier this spring. 

• Asked whether now is a good time to spend money on leisure, 31.6% of the respondents answered positively in May, down from 34.0% in April, while intent to travel over the next six months eased to 89%.

Group Travel

Group travel sent mixed signals.

• Demand ran 4.5% above the 2023 to 2025 average, a step down from the previous month.

• The share of meeting planners with a more optimistic recovery outlook rose to 35%, and booking new events became their primary focus. 

The Wider Backdrop

A common set of pressures sits under all four segments. Travel prices remain elevated, with airline, transportation and motor fuel components all running sharply above a year earlier, lifting revenue on their own. The labor market is holding rather than strengthening: leisure and hospitality kept adding jobs, but accommodation employment has only now stabilized after a long decline, and the sector’s unemployment rate edged up to 5.8%.

The May figures point to a slowdown from April, set against two distortions: an Easter calendar shift that depressed inbound arrivals, and the collapse of Spirit Airlines, which removed thousands of scheduled flights from the passenger count.