Kamil Krzaczynski / AFP via Getty Images
Key Takeaways
- The airline industry is having a slow beginning to 2025. There may also be a slowdown in the lodging and tourist sectors.
- Bank of America has released a new report that suggests that the poor winter weather conditions and a late Easter are contributing to a weak travel market in early 2025.
- The report concludes that, while spending has been softened, it is not at a level that warrants a “red rating”.
Airlines have already warned that the start of the year will be slow. This dynamic could also affect other travel categories.
Bank of America released data on Monday showing that spending is also down in the categories of lodging and tourism. According to the data, which examines card purchases, spending on lodging is 2.5% less than it was in 2024. Spending on tourism activities such as motorhome and RV rentals and sport clubs, tourist exhibits and attractions, amusement parks, zoos and aquariums is also down.
The data is a follow-up to reports from several airlines, who earlier this season lowered their projections of the first quarter. Virgin Atlantic CFO reported earlier today he had also seen “some indications” of a slowing US market.
Bank of America said that bad weather and a later Easter holiday could have contributed to the slow travel year. BofA claims that the weather has caused several disruptions in the United States this winter, which may have held back spending. Easter Sunday is on April 20th this year, so spring break plans and other spring travel may have been delayed.
Bank of America in-person card purchases overseas were actually up 2.6% between January and February of 2025 when compared with the same period in 2018, suggesting that people are still traveling abroad. Bank of America stated that American consumers represent about two thirds of U.S. tourism.
The bank has given the U.S. domestic travel labor market a rating of “yellow,” suggesting that while spending appears soft, it's not at the point where a "red" is warranted.
