From CNBC: 2024-09-02 10:00:01

American households are spending more on travel than pre-pandemic levels, with a focus on international trips, per Bank of America. Despite a slight dip from 2023, spending is up 10.6% per household since 2019. Demand for international travel is rising, especially with lower airfares driving interest.

International travel demand has surged due to reduced Covid-19 fears and lower travel restrictions. High demand is fueled by Americans’ pent-up wanderlust and available cash. Lower international airfare prices are contributing to increased interest in travel abroad, particularly to Europe, which has seen a notable drop in flight costs.

Europe remains the top destination for U.S. tourists, accounting for 43% of spending from May to July. However, spending in Asia has seen the highest growth, fueled by advantageous exchange rates. While most Americans still vacation domestically, higher-income households are driving the international travel trend, according to Bank of America economists.

High earners are splurging on luxury travel experiences, with luxury hotels outperforming standard options. Despite concerns about inflation, cost-conscious travelers are adapting by booking off-peak trips or planning further in advance. Domestic travel demand is softening as American travelers increasingly venture abroad.

Read more: Demand for international trips drive ‘travel momentum’ and spending