December 2016
U.S. Travel Outlook is a monthly newsletter of the U.S. Travel Association. Visit http://www.ustravel.org/news/us-travel-newsletters/travel-outlook
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Examining Current Industry Trends
Current State of the Economy Current State of the Economy and Travel

Conditions appear to be improving for the economy as the new year approaches. Third-quarter gross domestic product (GDP) growth showed that the economy accelerated to the fastest pace in two years during the months of July through September. More recently, employers added a solid 178,000 jobs in November, while the unemployment fell to a 114-month low of 4.6 percent and consumer confidence shot up to a nine-year high. At the same time, strong growth in personal disposable income in recent months is a good omen for continued sustainable growth in consumer spending in the near term. On the inflation front, travel prices remained unchanged from 2015 through the first 10 months of 2016 while overall consumer inflation rose a moderate 1.1 percent.Go to Outlook

LABOR

According to the latest jobs report from the Department of Labor, 178,000 nonfarm jobs were added to the economy in November 2016, a stronger month for job creation than October’s downwardly revised 142,000 job increase.Go to Outlook

CONSUMER CONFIDENCE

Consumer confidence in the economy reached a nine-year high in November, according to The Conference Board.Go to Outlook

CONSUMER SPENDING

Personal income and outlays were off to a strong start for the fourth quarter of 2016. October personal and disposable incomes spiked upward 0.6 percent to start the quarter, a number consistent with a background narrative of job and wage increases over the past six months.Go to Outlook

EXPORTS

The U.S. trade deficit expanded in October to $42.6 billion, according to the Department of Commerce.Go to Outlook

STATE OF BUSINESS

Investor and former banker Wilbur Ross has been nominated to become the Commerce Secretary in the new Administration.Go to Outlook

TRAVEL TRENDS INDEX

Overall travel volume (person trips to or within the U.S. involving a hotel stay or air travel) continued to grow on a year-over-year basis in October but at a slightly slower pace than the prior two months, according to the U.S. Travel Association's Travel Trends Index.Go to Outlook

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Leisure Travel Leisure Travel

For the first time since May 2015, the share of U.S. residents (69.3%) interested in traveling domestically fell below 70 percent during the month of November, according to the latest U.S. Travel Barometer.Go to Outlook

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Lodging Industry Lodging Industry

According to STR, total room revenue increased 3.3 percent and room demand increased 1.3 percent from a year ago in the U.S. in October.Go to Outlook

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Transportation Transportation

AIR TRAVEL

According to the International Air Transport Association (IATA), North American airlines' traffic climbed 2.4 percent in October compared to October 2015.Go to Outlook

ROADS & RAILS

Ridesharing company Lyft just released an economic impact report based on a survey of passengers and drivers in 20 major cities in 2016.Go to Outlook

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Business Travel Business Travel

After an uneven 2016 that saw only limited increases in overall pricing, the business travel outlook for next year looks to be similarly subdued, with flat to moderate rate increases expected globally across air, hotel and ground transportation, according to American Express's Global Business Travel 2017 Forecast.Go to Outlook

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International Travel International Travel

The most recent U.S. Travel Barometer, which covered November, showed that the United States’ share of international lodging searches declined to 10.7 percent, the lowest share since October 2014.Go to Outlook

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Project: Time Off Project: Time Off

Planners report greater happiness with their personal relationships, financial situation, and professional success, according to “The State of American Vacation.”Go to Outlook

U.S. Travel Updated
 

RESEARCH

U.S. Travel’s research team recently updated summary market profiles for major source countries of inbound travel to the U.S. Additional summary profiles as well as a number of full reports for selected countries will be released in the near future.Go to Outlook

POLICY

Advocates for airline competition won a significant victory when the Obama Administration decided to allow service to U.S. cities by Norwegian Air International.Go to Outlook

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U.S. Travel Dashboard
U.S. Travel Dashboard U.S. Travel Dashboard
Travel Trends Index Share of Domestic Search by U.S. Region

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