U.S. Travel Demand Looks Robust Through 2026
Skift Take
- Stock market indices, including DJIA, Nasdaq, and S&P 500, experienced declines, while the 10-year treasury yield saw a slight increase.
- The hotel industry faced mixed results, with the Hotel Brand sub-index declining but the Hotel REIT sub-index growing.
- The U.S. Travel Association released a forecast predicting steady growth in domestic leisure travel and slower recovery in business travel.
The DJIA was down 108 points, Nasdaq was down 93, the S&P 500 was down 16 points, the 10-year treasury yield was up .03 to 3.768% but lodging stocks were lower. Soho House (SHCO) was up 4%, VCSA was down 8%, and SLNA was up 3%. Hilton and Hyatt were up modestly.
The Baird/STR Hotel Stock Index declined -2.65 in May from April. The Hotel Brand sub-index fell -3.6% while the Hotel REIT sub-index grew 0.8%.
The U.S. Travel Association released its biannual forecast for travel to and within the U.S. through 2026. Domestic leisure travel is expected to remain strong, but with normalized rates of growth (around 2%) in 2023 and 2024. Volume is expected to grow faster YOY than inflation-adjusted spending in 2024 and beyond. Both volume and spending in domestic business travel is expected to grow, albeit more slowly, largely due to economic conditions. While business travel will continue recovering, with both volume a
