“Travel remains a bright spot relative to other sectors, but we’re also seeing signs of moderation in the travel space,” said Anna Zhou, an economist for the bank.Recent Examples on the Web All chippers can shred to a certain extent, but those with separate hoppers work much more efficiently and effectively. They say spending on hotels, which rebounded relatively early from the pandemic, dipped this spring, while the late-recovering cruise industry is still steaming ahead - card spending on cruises rose 37% last month, although from very low levels a year ago.

Industry executives say consumers are favoring the experience of travel over other types of spending, but some analysts see cracks in the strong demand for travel that began in early 2022.īank of America analysts say data from their credit and debit card customers showed a slowdown in spending in April, as card use fell below year-before levels for the first time since February 2021. “There is no expectation of seeing cheaper fares in Europe in the next seven or eight months,” says John Grant, an analyst for OAG, a U.K.-based travel-data provider.įor the travel industry, the big question is how long consumers can keep paying for airline tickets and accommodations while they try to deal with stubborn high inflation, news about layoffs and bank failures, and fear of a recession.

The same thing is happening within Europe, as airlines hold the line on capacity at a time of strong travel demand.

There are some last-minute deals on domestic flights, Hopper found, but international fares are their highest in more than five years, with prices to Europe up 50% from a year ago. Limiting the number of flights also keeps prices above pre-pandemic levels.Ī provider of travel data, Hopper, predicts that average domestic airfares will peak next month at $328 for a round-trip ticket, which is down from last summer’s record of $400 but 4% higher than in 2019. flights have been canceled this year - half the rate of a year ago and lower than in 2019. “It’s going to be an ordeal - it’s always an ordeal to travel in the summer,” said travel analyst Henry Harteveldt, “but the airlines have done a lot to improve their ability to operate well this summer.”Īirlines hope that limiting the number of flights will improve reliability and reduce delays. The agency resorted to nudging airlines to reduce flights in the New York City area this summer, and it opened 169 new flight paths over the East Coast to reduce bottlenecks. The FAA is training about 3,000 more controllers, but they won’t be ready this summer. But just like the airlines, the Federal Aviation Administration - the agency that manages the nation’s air traffic - has had its own staffing shortages and occasional breakdowns of aging technology. Transportation Secretary Pete Buttigieg says the government will hold airlines responsible to treat passengers fairly when the carriers cause cancellations or long delays. It also said airlines are taking longer to recover from disruptions such as storms. In a report released last month, the Government Accountability Office blamed airlines for an increase in flight cancellations as travel recovered from the pandemic.

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