Consumers are increasingly postponing or cutting back on travel and experiences due to a turbulent economic environment, recent reports indicate.
During recent earnings calls, companies across the travel and hospitality sectors have observed this trend, according to a Reuters report published Thursday (Aug. 8). Some have cautioned investors about the potential stagnation of U.S. bookings in the current quarter.
Hilton Worldwide reported a slowdown in U.S. demand, noting that leisure travel is currently “very, very low” as consumers grapple with reduced disposable income. Similarly, Marriott International acknowledged that softer demand in North America has led to a downward revision in its room revenue growth forecast.
The Walt Disney Company has also experienced a downturn in its parks division, reflecting a broader trend of decreased consumer spending on leisure activities.
Online booking platforms such as Airbnb and Booking Holdings have reported slower growth in the U.S., with consumers opting for lower-priced accommodations or delaying their bookings. Short-term rental management platform Beyond noted that travelers are increasingly booking trips closer to their departure dates, ensuring they have the necessary funds.
This decline in consumer spending coincides with broader economic concerns, including recent stock market volatility and rising recession fears, as detailed in a PYMNTS report on Monday (Aug. 5). Economic indicators suggest that households may be tightening their budgets further.
For instance, The Conference Board’s Employment Trends Index fell to 109.61 in July from a revised 110.58 in June. Economist Mitchell Barnes highlighted that this decline aligns with ongoing normalization across labor market metrics, including a slowdown in payroll growth.
In contrast, Resy, a restaurant reservation platform owned by American Express, has not observed any decline in consumer sentiment among its users, with demand for dining out remaining strong.
However, Laws Whiskey House reported that economic pressures are affecting consumer enthusiasm for alcoholic beverage delivery, as individuals shift their focus from convenience to cost savings.
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