American travel spending continues to surpass pre-pandemic levels, with international trips leading the trend, according to a new report from Bank of America. Although overall travel spending is slightly down from 2023, it remains 10.6% higher per household compared to 2019. International travel has emerged as a major area of growth, with 17% of Americans planning to vacation abroad in the next six months, an increase from pre-pandemic years. Lower airfares, especially to Europe, have fueled demand, with average fares to Europe dropping to around $950 this summer, and some fall shoulder-season flights to Rome now priced at $600. Europe accounted for 43% of American international travel spending from May to July, while spending in Asia has seen the highest growth, increasing by 11%.
Higher-income households, earning over $125,000 a year, are driving the international travel trend, with luxury hotels outperforming standard accommodations, reflecting greater resilience among wealthier travelers. While most Americans still vacation domestically, international trips are on the rise, especially as travel restrictions ease and airfares decline. However, cost-conscious travelers are adjusting their behavior by booking trips in advance or traveling during off-peak seasons to maintain their travel plans despite inflationary concerns. Overall, Americans continue to prioritize travel, with international destinations gaining momentum amid favorable economic conditions.
