U.S. leisure travelers had their revenge travel again this summer, but this time they vacationed overseas. As household incomes continue to grow, that trend has potential to continue.
During part of the “What’s Next? Key Trends, Talking Points and Takeaways” session at the 2023 Hotel Data Conference, STR’s Kelsey Fenerty and Isaac Collazo shared that while Americans traveled to international locations this year, Europe in particular, the favor was not returned. Travelers in Europe and the Asia-Pacific region are waiting on airlift, visas and a weaker U.S. dollar to visit the U.S.
Data from the U.S. Department of Commerce shows that the number of international inbound travelers coming to the U.S. from January through June 2023 is still down significantly compared to 2019. At the same time, there are more international outbound travelers than in 2019, including a 11% year-over-year increase in April.
As long as the dollar remains strong against other currencies, including the euro, there’s incentive for Americans to head overseas to stretch their dollar further. In turn, it’s more expensive for anyone to stay in the U.S.
Hoteliers can take some comfort in knowing that high-income households will still travel despite inflation, and they tend to spend more on leisure. On top of that, the number of households earning $100,000 or more a year is growing.