Americans are setting vacation records and splurging at bars, restaurants and hotels | CNN Business

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Leisure and hospitality businesses are hiring, offering enhanced benefits and trying to meet persistently robust demand. This expected strength in leisure spending means big business for an industry that was on its knees just three years ago.

When the pandemic began, restaurants, bars and hotels were hard hit, shedding more than 8 million jobs in the first few months of 2020. That equaled about a 49% contraction of that sector’s workforce. But it started to recover in May of that year and, last month, stood just 2.4% shy of its February 2020 level. The industry added 917,000 jobs in April from a year earlier, according to data from the Bureau of Labor Statistics, the second-largest gain of any industry during that period.

But why are Americans still so willing to open up their pocket books to take a trip or go out to eat, despite inflation and economic uncertainty? “It’s become less ‘revenge travel’ and more of a lifestyle in terms of sort of a generational shift in the prioritization of in-person experiences over goods,” Jeanelle Johnson, partner and co-leader of the travel, transportation and hospitality sector at PricewaterhouseCoopers, told CNN.

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