The latest data from Bank of America reveals a decline in spending in tourism and lodging sectors compared to this time in 2024. Credit and debit card spending on lodging has dropped 2.5%, while expenditure on tourism-related activities such as motor home and RV rentals, sport clubs, tourist attractions exhibits, amusement parks, aquariums, and zoos has also declined by similar percentages. The decreased spending aligns with reports from airlines, including Virgin Atlantic, which advised lowered financial expectations for Q1 due to indications of decelerating US demand.
Factors such as adverse weather conditions and a late Easter holiday could be contributing to the slowed travel spending. Severe winter weather across the country could have deterred travel spending, while Easter Sunday, falling on April 20 in 2025, may have delayed spring break plans and other spring travels.
However, travel abroad seems to be an exception to this trend. Total in-person Bank of America credit and debit card expenditure on overseas travel in January and February 2025 saw a rise of 2.6% compared to the same period in 2024. This suggests that despite low domestic spending, US citizens are still willing to travel abroad, given that American consumers make up roughly two-thirds of all U.S. tourism demand.
Despite the apparent decrease in spending, Bank of America has assigned a "yellow" rating to the U.S. domestic travel labor market, signaling a soft but not critically depressed spending rate.