Consumer Travel Spend to Hit $1.09 Trillion in 2023
The travel bug is biting, even in the face of economic headwinds, leading to some encouraging predictions for the travel industry. According to the latest forecast released by the U.S. Travel Association, a non-profit organization representing all components of the travel industry, travel continues to show signs of improvement in the second half of 2023 and into the future.
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Total travel spending initially crossed the $1 trillion mark in 2022, a level it hadn't hit since since 2019. Spend is expected to continue rising this year to $1.09T. Though it has reached 93% of pre-pandemic levels, the U.S. Travel Association doesn't predict spending to surpass them until 2025.
Other notable highlights from the forecast include:
Domestic leisure travel has "normalized" in terms of the number of trips, and is expected to surpass pre-pandemic spending by $9B this year.
Domestic business travel will continue to recover year-over-year for both trip volume and spend. Though the number of trips are expected to surpass pre-pandemic levels in 2025, spending will not fully recover until after 2026.
International inbound travel will continue to recover, at higher levels than previously anticipated, driven by strong growth in Canada, as well as in key overseas markets, such as Brazil and China. Overall international travel volume is expected to surpass pre-pandemic levels in 2025, while spend will take until 2026.
