Travel to or within the U.S. grew 2.4 percent year over year
in June, according to the U.S. Travel Association's Travel Trends Index.
Domestic travel increased 2.6 percent, due entirely to leisure travel, which
grew 3.8 percent. Meanwhile, domestic business travel dipped 0.2 percent due to
slowing business investment and economic implications of both the U.S.'s
ongoing trade conflicts with China and discussions around the U.S.-Mexico-Canada
trade agreement, according to USTA.
From July to December, total U.S. travel will grow 1.8
percent. Domestic travel will grow 2 percent, and leisure, which is expected to
grow at a slow 2 percent, will contribute slightly more than business. Vacation
intentions are slowing, while forward-looking bookings and searches point to
resilient yet softer growth in the months ahead. Domestic business travel will
grow at 1.6 percent, weighed down by slowing business investment and the U.S. escalating
trade conflicts.
International inbound travel decreased 0.8 percent in June,
marking the third month of contraction in the first six months of 2019. USTA
forecasts international inbound travel to contract at 0.2 percent from July to
December. Soft global economic activity, the continued strength of the U.S.
dollar, prolonged and expanding trade tensions and uncertainty surrounding the
Trump administration remain major risks to international traveler sentiment. At
this point, USTA projects the U.S.'s share of the global long-haul travel
market will fall from its current 11.7 percent to below 10.9 percent by 2022.
"In June, travel posted its poorest performance in nine
months due to flat domestic business travel growth and a decline in
international inbound travel, " said USTA research SVP David Huether.
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