Domestic Travel Rises Thanks to Strong Leisure and Business Segments

Travel to and within the U.S. grew four percent year-over-year in June, according to the U.S. Travel Association’s (USTA) Travel Trends Index, which was buoyed by both strong domestic business and leisure travel.

This marks the industry’s 102nd straight month of overall expansion, according to the USTA. In addition, U.S. travel volume (trips to or within the U.S. involving a hotel stay or air travel) is expected to grow at a rate of about 2.6 percent through December 2018.

Domestic leisure and business travel both grew in June, boosted by near-historic highs in consumer confidence and growth in forward-looking bookings and searches. According to the Leading Travel Index, domestic travel is expected to increase by about 2.6 percent year-over-year through December 2018.

“For the first time in the history of the Travel Trends Index, both the business and leisure segments of domestic travel expanded every month during the first half of the year,” said U.S. Travel Senior Vice President for Research David Huether. “However, rising oil prices and trade uncertainty — particularly with regard to tariffs — have the potential to dampen consumer confidence.”

The boost in domestic travel offset slowed international inbound travel in June compared to May, though this market segment remained positive on a year-over-year basis. International inbound travel is expected to increase by a rate of 2.2 percent for the remainder of the year.

The rate of growth, however, is not brisk enough to help the U.S. regain its slipping share of the global travel market. U.S. travel economists caution that the country is well off the pace of long-haul travel worldwide, which is projected to increase six percent in 2018.

“Facing these potential headwinds, we urge officials to support policies and messaging that will make it clear to the world that the U.S. is open and eager for business,” said Huether.