Slowdown in U.S. consumer spending weighs on travel and leisure groups
Earnings reports this week showed more signs of belt-tightening among American households
U.S. consumers are cutting back on travel and leisure spending amid growing concerns about the health of the economy, affecting companies such as Disney theme parks, Airbnb home rentals and Hilton hotels.
Key takeaways
- Rising costs for necessities such as food have caused attendance at Disney theme parks to plateau, and some wealthier Americans are opting for international travel;
- Hilton CEO Chris Nassetta observed a "softening" market, attributing it to reduced disposable income as pandemic savings dwindle;
- Although inflation has eased from its peak, US prices have still risen more than 20% in the past five years, particularly in categories such as food.
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