Read our full analysis for a more in-depth look at these trends.
Unpacking summer travel
Consumer travel demand was resilient this summer, but data suggests we’ve moved from “exuberance” to “normalization.”
September 2023
Key takeaways
- The key theme for travel this summer is "normalization." While consumer demand for flights and hotels remains robust, spending has moderated from very elevated levels.
- We see diverging trends in pricing dynamics between airlines and hotels. The former is showing signs of easing, which largely explains the 3% year-over-year (YoY) drop in average transaction size, according to Bank of America internal data. Meanwhile, hotel prices continue to strengthen, but shorter trips for consumers as they return to office also means smaller transactions.
- International travel remains resilient, with Asia and Oceania, which includes countries like Australia and New Zealand, recording the strongest YoY spending growth at 48% and 60% respectively, over the three-month period through August.
