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.

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Stock Forecasts

DALView DAL chart on TradingView

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.

VACView VAC chart on TradingView

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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