Overview

• Domestic airfare prices have dropped by 7% year-over-year, with international fares also declining during off-peak travel periods.
• Major airlines, including Delta, are reducing capacity and cutting routes to align with weaker demand and slower bookings.
• International tourism spending in the U.S. is projected to fall by $12.5 billion in 2025, driven by tariffs, a strong dollar, and restrictive immigration narratives.
• Domestic travelers are increasingly opting for road trips, off-peak travel, and shorter, budget-conscious vacations closer to home.
• Travel platforms and hotel chains have lowered revenue forecasts and are offering discounts to attract cost-conscious travelers.