The U.S. Travel Insights Dashboard

AUGUST 2026

Travel spending in the United States has increased year over year every month in 2026, with gains remaining in the single digits. In August, spending reached $116.6 billion, up 2.5% from a year ago and 4.1% year to date. But travel volumes told a softer story. Hotel demand grew modestly, short-term rental demand declined, and both air passenger traffic and overseas arrivals fell more sharply. Forward corporate hotel bookings, however, offered a more encouraging signal for the final months of the year.

Lodging demand grew, but at a slower pace.

Hotel room demand increased 0.8% in August and remained 1.8% higher year to date. Short-term rental demand moved in the opposite direction, falling 2.3% in August, although it remained 0.9% higher year to date.

Hotel performance also varied by location. Revenue per available room (RevPAR) increased 2.0%, led by airport, urban and suburban hotels, while resort RevPAR declined 3.5%. August followed particularly strong hotel-rate growth in June and July, when the 2026 World Cup provided an additional lift to performance.

Air travel and international visitation weakened further.

Total air passenger traffic fell 4.4% in August, following a 2.1% decline in July, bringing year-to-date traffic 0.6% below last year. Overseas arrivals declined 11.8% in August and were 5.8% lower year to date.

The international picture remains uneven across source markets. While overall overseas arrivals remain below earlier levels, several major international markets continue to exceed 2019 levels. Air arrivals from Mexico reached 148% of 2019 levels, India 126% and Colombia 124%, illustrating the considerable variation beneath the topline decline.

Corporate bookings offered a brighter signal for the months ahead.

While current travel volumes softened, forward corporate bookings strengthened. As of mid-September, corporate hotel bookings were running 5.2% ahead of last year for October, 7.7% for November and 11.2% for December.

Group room nights already on the books for October through December were 4.2% ahead of the same time last year. Group travel demand, based on reporting from more than 250 destination marketing organizations, was 4.4% above the 2023–2025 average in July, compared with 1.6% for all hotel rooms sold.

Economic conditions remain mixed as job growth rebounded but inflation rose.

Leisure and hospitality (L&H) employment increased by 62,000 jobs in August after two consecutive months of decline, bringing sector employment to 17.0 million. Nearly all of the gain came from restaurants and bars, which added approximately 59,000 jobs. Accommodation added 9,000 jobs, while arts, entertainment and recreation lost 6,000.

Over the past year, accommodation employment has remained generally flat. L&H job openings also fell to 783,000 in July, the lowest level in more than five years.

Consumer sentiment weakened further in August. The University of Michigan Index of Consumer Sentiment fell from 55.2 in July to 51.7, the ninth-lowest reading in the survey’s 74-year history. Consumer confidence also fell, to 89.4.

The weakness was concentrated among lower- and middle-income consumers, while sentiment among the top third of earners improved, underscoring a two-track consumer economy. Gas prices, broader inflation and renewed tariff concerns continued to weigh on consumer sentiment.

Travel prices also continued to rise faster than overall consumer prices. The Travel Price Index rose 7.4% from a year earlier in August, compared with a 3.4% increase in the Consumer Price Index.