The U.S. travel industry is heading into the summer blind

Most U.S. airlines pulled their yearly forecasts as Americans begin cutting back on travel, leaving the rest of the industry waiting to see if the slowdown will hit hotels and booking platforms

The U.S. travel industry is entering the summer season with significant uncertainty, as major airlines withdraw their financial forecasts due to signs of weakening consumer demand. This growing unpredictability is raising concerns across the broader travel sector, including hotels and online booking platforms.

Key takeaways

• Major U.S. airlines like Alaska, American, Southwest, and Delta have withdrawn their 2024 financial guidance; United Airlines offered a split outlook.
• Demand for domestic leisure travel is declining, especially among middle-income travelers, while high-income travelers continue spending on international trips.
• Business and government travel is also down significantly, with some categories falling by up to 50%.
• The Dow Jones U.S. Hotels Index and Airlines Index have both hit 52-week lows.
• Hotels and online booking platforms are expected to feel the impact next, especially those with a strong U.S. focus and short booking windows.
• Lodging companies already report slowing domestic bookings and spending declines.
• While Expedia, Booking, Airbnb, and hotel chains are not expected to withdraw their guidance, analysts anticipate they will reduce their forecasts in upcoming earnings reports.

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