December travel to or within the United States grew 2.4 percent year over year, according to the U.S. Travel Association's Travel Trends Index, which measures trips involving a hotel stay or air travel. Aided by Hanukkah falling the same week as Christmas, U.S. business travel rose by more than double the six-month segment average.
U.S. domestic travel in December grew 2.6 percent year over year, thanks to leisure's growth rate of 2.8 percent and business's growth rate of 2 percent.
"December 2019 marked the 120th straight month of overall travel growth, completing the 10th consecutive year of expansion," said USTA SVP of research David Huether. "Notably, 2019 was the third consecutive year of simultaneous expansions in both domestic leisure and domestic business travel, a testament to the health of the domestic economy."
Consumer confidence and expectations eased gently downward in December, but remain at elevated levels, according to USTA, though consumer spending is beginning to show signs of fatigue and is expected to abate through the beginning of 2020. Business investment slowed due to elevated policy uncertainty, softening expectations, slow global growth, still-high trade tensions, weaker energy-sector activity and a strong dollar, thus limiting domestic business travel expectations. USTA cited ongoing trade conflicts as a continued risk for 2020, contributing to slowing growth.
USTA projected domestic travel in the first half of 2020 to rise 1.4 percent year over year . Business travel is forecasted to grow by 1.2 percent over the same period.
International inbound travel increased 0.8 percent year over year in December, ending a three-month contraction. It's also the fifth month in 2019 to have growth. "2019 was the first year in which the international component of the Travel Trends Index was negative, due to global headwinds and fierce competition in global travel," said Huether.
USTA expects first-half 2020 international inbound travel to contract 0.2 percent year over year as a result of economic and policy uncertainty. USTA cited cooling domestic and global momentum, prolonged trade tensions and policy uncertainty as risks to international traveler sentiment. USTA said the phase-one trade deal between the U.S. and China is a good step toward reducing trade policy risks.
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