Consumers are reportedly delaying or cutting back on travel and experiences amid an uncertain economic outlook.
Online booking platforms, airlines, hotels and other companies in this sector have noted this trend during recent earnings calls, Reuters reported Thursday (Aug. 8).
Some have warned investors that they expect U.S. bookings to be flat in the current quarter, according to the report.
Hilton Worldwide said Wednesday that it is seeing U.S. demand slowing, with leisure travel “very, very low,” because consumers have less disposable income, per the report.
Another hospitality company, Marriott, said softer demand in North America contributed to the company’s lowering its forecast for growth in room revenue, according to the report.
The Walt Disney Co. said Wednesday that it has seen weakness in its parks division, per the report.
Online booking platforms Airbnb and Booking Holdings both said they have seen slower growth in the U.S., with consumers selecting lower-priced options or waiting longer to book their trips, according to the report.
Similarly, short-term rental management platform Beyond said people are booking trips closer to the travel date, when they’re sure they’ll have the funds they need, per the report.
This news comes at a time when the economy has seen a stock market rout and mounting recession fears, as PYMNTS reported Monday (Aug. 5).
The latest economic data on employment suggested that households could look to tighten their belts further.
For example, The Conference Board reported Monday that the Employment Trends Index decreased in July to 109.61, from an upwardly revised 110.58 in June.
Mitchell Barnes, economist at The Conference Board, said when announcing the data that: “July’s decline in the ETI is consistent with the normalization that is occurring across labor market metrics, including the ongoing moderation of payroll gains.”
It was reported Wednesday that Resy, a restaurant reservation platform owned by American Express, sees no evidence of a weakening of consumer sentiment among its customers, as demand for restaurant dining remains strong.
Conversely, Laws Whiskey House said alcoholic beverage brands are seeing current economic pressures dampen enthusiasm for beer, wine and spirits delivery as consumers begin to focus on cost rather than convenience.
