Destination Travel Trends
Foreign consumers are finding it increasingly expensive to contemplate travel to the USA. This is true for – almost literally – everyone that doesn’t live here. At the same time, a trip abroad is looking pretty good to Americans that have stayed home for a few years
In simplest terms, as the Federal Reserve raises interest rates to bring down inflation, the cost of a dollar becomes more expensive, not just to borrowers here, but to ‘buyers’ of those dollars abroad. Travel to the US from the EU, UK, Canada, and – well – everywhere – is dramatically pricier than just a few months ago.
Sure do. Restrictions eased just in time for the economy to become a roadblock to international inbound travel and make outbound attractive. Given these exchange rates, record high prices for rooms & services, and economic downforces like inflation in their home countries, it’s worth careful consideration before going after the international market in a big way. It’s probably also worth looking at ways to defend our domestic market from wanting to go bargain hunting abroad. Expect these conditions to persist well into 2023.
