Read our full analysis for a more in-depth look at these trends.
Yellow light for travel: U.S. domestic tourism taps the brakes
Domestic tourism had strong years in 2023 and 2024. But this year looks to be off to a slower start.
March 2025
Key takeaways
- The U.S. travel and tourism industry is important for the domestic economy, directly accounting for around 3% of GDP and over six million jobs, according to the Bureau of Economic Analysis (BEA).
- The sector was strong in 2023 and 2024, partly driven by the powerful tailwind from post-pandemic catch-up. But this year has gotten off to a slower start, with Bank of America aggregated card data showing softer lodging, tourism and airline spending.
- It could be that the recent drop in consumer confidence is translating into people hesitating to book trips, or considering paring them back. But bad weather and a late Easter this year are also likely playing a part.
- With the labor market still in relatively good shape for now, in our view, softer travel spending may not signal a 'red light,' but rather a shift to yellow.
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