Good news for deal-seekers this fall: Travel demand has softened
airlines, hotels and cruises reporting double-digit growth and travellers using their savings, taking on debt or even selling their homes to splurge on bucket list adventures or multiple trips.
Now, at least for some travellers, that furious vacation spending is slowing down. While high-income travellers are still booking luxury experiences and jet-setting abroad, other consumers have been cutting back on travel spending to meet the high cost of living.
Data from Tourism Economics (on behalf of the US Travel Association, a travel group) shows that the meteoric rise in post-pandemic travel spending that began in 2021 has reached a plateau. In earnings calls this month, top hotel chains such as Hilton and Hyatt reported less demand by leisure travellers for lower-priced brands, while online travel agencies, such as Expedia Group and Booking Holdings, and short-term rental companies such as Airbnb also noted slowdowns.
For those still seeking a vacation or two, that softening demand means bargains — in the form of lower airfare and hotel perks.
«The revenge travel effect is finally receding, and so are prices,» said Steve Hafner, CEO of the Kayak search engine, adding that the fall season will be an ideal time for travellers to «snag up a deal.»
The hotel industry in the United States has reported a mostly flat performance this year, according to CoStar Group, a real estate analytics company.
«One thing we see across both sectors — both hotels and short-term rentals — is those listings that are the lowest price,
