Lower-income Americans booked fewer hotels in April, dampening industry outlook

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NEW YORK - Lower-income Americans dialed back their travel spending in April as reduced savings, higher credit card delinquencies, and inflation weighed on household budgets, according to data from commercial real estate analytics firm CoStar.

"The increased cost of living is affecting lower-to-middle income households and their ability to travel, thus lessening demand for hotels in the lower-price tier," Amanda Hite, STR president, said in a statement. U.S. debt levels rose by $184 billion, or 1.1%, in the first quarter to $17.69 trillion, according to the Federal Reserve Bank of New York. Overall borrowing levels are $3.5 trillion above where they were at the end of 2019.

 

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