Dive Brief:
- U.S. travel spending is expected to grow at a low but positive rate in 2026, bolstered by domestic travel, and accelerate in 2027 and 2028, according to new findings from the U.S. Travel Association.
- This year, as domestic leisure and business travel spending increase and international inbound travel recovers, overall U.S. travel spending is forecast to grow 1%, reaching $1.37 trillion, according to the U.S. Travel Association. Looking ahead, travel spending is anticipated to accelerate by 3% in 2027 and 2028, hitting $1.42 trillion in 2027.
- Improving travel fundamentals positively impacted U.S. hotels in the first quarter of the year, with top companies reporting RevPAR gains associated with an uptick in leisure, business and group travel. However, ongoing economic pressures including inflation and geopolitical uncertainty could partially offset resilient travel demand this year, U.S. Travel cautions.
Dive Insight:
Recovering international inbound travel as well as growth in domestic leisure, business and group travel will contribute to increased U.S. travel spending in 2026, according to the U.S. Travel Association.
International inbound travel is expected to rebound from a 2.4% year-over-year decline in 2025 to 1.6% growth this year, with spending reaching $178 billion, per U.S. Travel. International inbound visitation will likely be “supported by increased travel tied to the World Cup,” according to the association. U.S. hotels are also hoping for a lift from the event, though bookings are currently tracking below initial projections.
U.S. Travel also forecasts that domestic travel spending will increase across all segments this year, though the domestic leisure and business travel segments are projected to grow at a slower rate than in 2025.
In the first quarter of this year, business travel optimism among global professionals weakened considerably as a result of escalating geopolitical conflicts and higher costs, the Global Business Travel Association reported last month.
Those concerns stand to threaten U.S. Travel’s spending forecast for 2026, as “prolonged conflict in the Middle East can affect both travel demand and energy prices,” the association warned. Other challenges to travel spending, and related sectors like the hospitality industry, include weakened consumer sentiment; negative sentiment toward the U.S. in key source markets as well as potential visa fee increases and extended wait times for visa applications and renewals, per U.S. Travel.
