U.S. travel companies experience high demand but economic concerns cloud outlook

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U.S. travel spending in December 2022 totalled $97-billion, 3% above 2019 levels and 7% above 2021 levels, according to the U.S. Travel Association

are reporting faster rates of bookings in 2023 than in 2019 prior to the coronavirus pandemic.

“Investors are increasingly becoming more comfortable that we are not going to see a travel pullback in the first half of the year, but the back half of the year remains to be seen,” said Patrick Scholes, Truist Securities managing director. American Express said bookings through its consumer travel business were 50 per cent higher in the fourth quarter compared to pre-pandemic levels, the strongest rate that the credit card company has seen since the beginning of the recovery.

However, Hilton said it anticipates demand will plateau as the economy slows in the second half of 2023, Chief Executive Officer Christopher Nassetta told investors on a call.

 

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