The data: More Americans plan to travel this summer compared with last year, according to a Numerator report.
Zoom in: For the time being, rising gas prices and airfares are not deterring the majority of consumers from their travel plans.
Still, budget concerns are creeping in for some. About 10% of travelers planning to use non-flight modes of transportation initially intended to fly but changed their plans due to rising costs, per Numerator’s survey. Additionally, travel spending is stagnating among lower-income consumers, while middle- and higher-income households are increasing their vacation budgets, according to data from Bank of America.
Implications for retailers: Healthy travel demand is an important tailwind for retail spending. Travelers boost spending not only at their destinations but also at local retailers as they prepare for trips. US consumers spend an average of $660 on categories like apparel, beauty, and electronics in the lead-up to their journeys, and the majority make post-trip purchases, according to Expedia Group.
At the same time, this year’s World Cup could offer a much-needed lift to retailers and hospitality operators. Even if international visitors steer clear, an increase in domestic tourism during the summer months could offset weaker performance later in the year.
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