THREE MONTHS OF GROWTH: TRAVEL SPENDING UP 4.5% IN APRIL

Travel spending grew 4.5% year-over-year in April, decelerating only slightly from March's twelve-month high of 5.0%.  Beneath the headline, however, demand indicators softened: Air passenger growth fell to essentially flat, hotel demand growth slowed and overseas arrivals declined due to the Easter calendar shift. Moderating demand was offset by rising travel prices in April, which lifted spending even as volume growth flattened. 

The labor market remained resilient, with Leisure and Hospitality adding 14,000 jobs and the sector's unemployment rate improving to 5.4%. Consumer sentiment remained weak but did not deteriorate further. The bottom line: travelers are still spending, but the pace of demand growth has begun to cool.

Demand growth slowed across most indicators

  • Air passenger volume was virtually flat (-0.1%), compared with +1.7% in March.

  • Hotel demand grew 2.0%, slightly slower than the 2.6% recorded in March.

  • Overseas arrivals fell 14.1%, impacted by the Easter calendar shift and continued conflict in the Middle East.

  • Short-term rental demand grew 2.6%, slightly above the 2.2% recorded in March.

Domestic travel captured some of the demand that might otherwise have gone overseas, as travelers prioritize value and keep their spending closer to home.

  • Hotel performance (RevPAR growth by location) continues to be driven by leisure demand. Resort and suburban properties outperformed, while business-oriented urban and interstate markets saw more modest growth. The message is clear: travelers are still spending, but they're prioritizing leisure experiences over business travel.

The travel labor market held up in April. Leisure and Hospitality added 14,000 jobs for the month, and the sector unemployment rate eased further to 5.4%, down from 6.2% in March and 7.1% in February. Wage growth was 3.8%, slightly ahead of the 3.6% recorded across the private sector.

Consumer conditions remained mixed

Consumer sentiment remained weak but did not deteriorate further:

  • The University of Michigan Consumer Sentiment Index stood at 48.2 in April, broadly stable but remaining near historical lows.

  • The share of consumers who view the present as a good time to spend on leisure travel held at 34.0%.

  • The Longwoods travel sentiment reading, tracking travelers with plans in the next six months, ticked up slightly from 89% in March to 90% in April.

U.S. Travel members have access to the exclusive U.S. Travel Insights Dashboard, the most comprehensive and centralized source for high-frequency intelligence on the U.S. travel industry and the broader economy. The platform, powered by Tourism Economics, is supported by approximately 20 data partners and tracks industry performance, travel volumes and predictive travel indicators to provide members with a detailed, interactive view of travel's recovery and performance.

Supporting Data Providers

  • AirDNA
  • Future Partners
  • Longwoods International
  • National Park Service
  • Northstar Meetings Group
  • Simpleview
  • Tempest
  • TransUnion
  • TSA
  • U.S. Department of Commerce
  • Airline Data Inc.
  • MMGY
  • National Travel and Tourism Office
  • Oxford Economics
  • STR
  • Tourism Economics
  • TravelClick, an Amadeus Company
  • U.S. Bureau of Labor Statistics
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