American demand for international trips drives 'travel momentum' and overall spending
Published On Sep 2, 2024, 10:00 AM
American demand for international trips is driving robust travel spending, which has surpassed pre-pandemic levels by over 10%. Factors contributing to this trend include a decrease in international airfare and a growing preference for vacationing abroad, particularly in Europe and Asia. High-income households are leading this spending surge, often opting for luxury travel experiences, while lower airfares are attracting a broader range of travelers. Despite strong international travel spending, domestic travel remains more prevalent among Americans.
Stock Forecasts
DAL
Positive
The travel sector, particularly companies focusing on international tourism such as airlines and travel agencies, is likely to benefit from the increasing demand for international travel. This trend may lead to higher revenues for those companies as more Americans choose to travel abroad and spend more on travel-related services.
VAC
Positive
With the increase in international travel, travel-related ETFs that cover hospitality, airlines, and experiences may also perform well. These ETFs could see positive performance as tourism picks up globally, especially in regions like Asia and Europe where spending is rising.
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