Travel Tuesday, January 1: The Travel Industry in Review
Travel Tuesday: January 1, 2019
The Travel Industry in Review: 2018 & 2019
Happy new year from Lucid Travel! To start the year off, travel trends from the 2018 U.S. Travel’s Research Trends (by David Huether from Outlook) were analyzed to provide an expectation for 2019. Overall, the travel industry has grown, though economists wonder if the growth is sustainable.
Throughout 2018, the travel industry has increased employment and accounts for 10% of U.S goods and service exports. The largest growth has occurred in the hotel industry, and is expected to increase in 2019. Trends from 2018 show a strong consumer spending and confidence in contrast to low business spending. Additionally, domestic travel has increased more than international travel.
These statistics have been explained by economists to be the result of an optimistic consumer mindset offset by an uncertain global economy. Economists anticipate that because of last years tax cuts, newly imposed tariffs, and rising wages, interest rates and inflation will rise. It is predicted that U.S economic growth might actually decelerate. This could affect the travel industry in terms of less international profits, due to weakening global economic conditions, rising trade tensions, and a strengthening dollar.
Consumer confidence is explained by job growth and a drop in unemployment, thus resulting in higher spending. Travel is already being booked for 2019 earlier than in previous years, and mostly for leisure purposes. Survey results report that more people are planning to take more time off in 2019, due to the 22% of the population that did not use their allocated vacation time in 2018. The survey also reported most people desire to disconnect and relax on vacations, and to save money during the booking process.
If grim predictions prove themselves in 2019, Lucid Travel wants it’s customers to know that they can always expect to save money with us. Our low rates, free services, and cashback feature is sure to help in any economic climate.
Author: Willow Groskreutz