Americans traveling abroad spent over $15.8 billion on travel to, and tourism-related activities within, other countries in January, more than any single month prior to the pandemic, according to the National Travel and Tourism Office.
International visitors spent over $14.7 billion in January on travel to, and tourism-related activities within, the U.S., causing the U.S. to experience a balance of trade deficit of nearly $1.1 billion in travel spending. That’s the third time in the past six months that the U.S. experienced a monthly trade deficit in travel spending. Compared to January 2021, international visitor spending rose nearly 64 percent in January.
Spending on travel and tourism-related goods and services, which include lodging and entertainment, totaled $7.9 billion in January, down from $11.5 billion for the same period in 2019.
International inbound travelers spent nearly $163 billion on U.S. travel and tourism-related goods and services in 2022, up 96 percent from 2021, according to the National Travel and Tourism Office’s latest monthly data. On average, international travelers spent more than $445 million a day in 2022.
The month of December saw international spending on travel to, and tourism-related activities within, the U.S. reach $16.5 billion, up nearly 49 percent year over year and the single highest month since February 2020, when the pandemic struck. The previous high went to November 2022, when spending hit $15.9 billion.
The U.S. ended up with a travel trade surplus in December. American traveler spending abroad amounted to more than $15.5 billion, yielding a surplus of $932 million. The U.S. also had a travel trade surplus in November and October.
International traveler spending on lodging, recreation and other goods and services inside the U.S. totaled $9.1 billion in December, up 68 percent year over year but down from $11.8 billion in December 2019.
Despite rising household expenses, nearly 60 percent of European travelers won’t cut back on traveling or spending on trips in the next six months, according to a survey by the European Travel Commission.
The commission surveyed over 6,000 European travelers in December 2022 who took at least 2 overnight trips during the last three years.
Europeans are worried about their rising living expenses, but they are not cutting back their spending. Even as energy costs and basic necessities rise, travel is the only discretionary expense people are determined to keep, according to the European Travel Commission. About 59 percent plan to spend the same on travel as last year in the first half of 2023 (below).
Plans to Spend
More
Same
Less
None
Traveling
16%
59%
23%
2%
Groceries
21%
58%
19%
1%
Personal Care
8%
49%
32%
11%
Leisure Activities
9%
47%
40%
5%
Energy & Fuel
30%
45%
23%
3%
Shopping
8%
44%
44%
5%
Source: European Travel Commission
Nearly 40 percent plan to spend 4 to 6 nights at a destination, up 6 percent from a year ago. Between 500 and 1,500 euros is the most common allocated budget.
It also seems higher airfares also won’t stop travelers from flying. Around 54 percent of travelers still plan to fly, up 10 percent for the same period last year. A Skift megatrend for 2023 is that airlines will have an easy time generating revenue from higher airfares.
At destinations, however, travelers will reallocate their spending. Nearly 20 percent will reduce their shopping, 16 percent will book cheaper accommodation and 15 percent will pay for self-catering or less pricey restaurants, according to the European Travel Commission.
About 58 percent of European travelers plan to take multiple trips and 75 percent plan to take at least one trip before June 2023. In fact, 44 percent of European travelers have fully or partly booked their upcoming trip, a 7 percent year over year increase.
In addition, Europeans are determined to cross borders for their trips in 2023. Visiting another country is the preferred choice of 63 percent of European travelers, up 13 percent from last year. Interest in domestic tourism dropped to 25 percent— its lowest level since August 2020.
About 72 percent of Europeans will travel for leisure, while 15 percent will visit friends or relatives, 7 percent will attend an event and 5 percent will take a business trip.
