Dive Brief:
- Travel prices dipped 1.4% month over month in June, led by lower hotel, airline and gas costs, according to the U.S. Travel Association’s monthly Travel Price Index.
- June lodging prices, specifically, fell 2.5% month over month when seasonally adjusted and 2.8% year over year, though they remain 10.7% higher than in 2019.
- High prices have affected traveler spend in recent months, with some opting out of travel entirely. U.S. Travel Association President and CEO Geoff Freeman said the price dip means it’s time for the industry to “boost volume.”
Dive Insight:
The U.S. Travel Association released its price index as a follow-up to the Bureau of Labor Statistics’ monthly Consumer Price Index, published Thursday.
June’s CPI also showed that prices are falling as inflation eases — “and travel-related goods and services are at the forefront,” per the U.S. Travel Association. While the overall economy saw a 0.1% pricing decrease, according to CPI — the first month-over-month decrease since 2020 — travel prices dropped by a much greater degree.
“We’ve already seen travelers take advantage [of easing prices], with eight of the ten busiest days in TSA’s history occurring in 2024,” said Freeman in a statement. “It’s essential that the industry is equipped with the right funding, resources and technology — coupled with sustained government focus — to meet an increase in demand.”
Earlier this summer, experts told Hotel Dive that high prices were impacting traveler behavior.
Deloitte’s 2024 Summer Travel Report projected that a greater percentage of travelers this summer would come from higher income brackets.
Meanwhile, some travelers in lower income brackets were planning to skip travel entirely due to a “perception that travel is too expensive right now,” Mike Daher, who leads Deloitte’s travel and hospitality sectors, told Hotel Dive in May.
Overall, though, leisure travel intent remains strong despite concerns over spending, Deloitte found earlier this year.
