US Accommodation and Food Services Sector NAICS 72

Jul 13, 2025 - Traveling But Spending Less

• Consumer confidence fell sharply in June, according to the Conference Board’s Consumer Confidence Index, which declined by 5.4 points in June to 93, giving up much of May’s gains. Meanwhile, the CB’s Expectations Index fell to 69.0, remaining below the recession-signaling threshold of 80. Declines in confidence were observed across all age, income, and political groups, according to the June report. While consumers’ spending plans showed mixed signals, service sector intentions weakened broadly, with dining out being an exception. Despite the recent slip in consumer confidence, travelers are still planning trips and hotel stays this summer, Hotel Dive reports citing a Bank of America’s Summer Travel Trends Survey, which found 70% of respondents said they plan on vacationing this summer – a 3% increase from 2024. While more Americans may travel this summer, they’ll do so on tighter budgets, according to the Deloitte 2025 Summer Travel Survey.
• The dramatic drop in consumer confidence is expected to cause diners to pull back on spending, presenting restaurants with ongoing challenges amid a deteriorating economic landscape, Nation’s Restaurant News reports. In April, consumer confidence fell off a cliff according to the University of Michigan, whose consumer confidence index fell 11% for the month and is down 30% over the past five months as US consumers have grown increasingly pessimistic about the prospects for unemployment and worried about more inflation. Restaurants rely on discretionary spending. When consumers feel stressed they skip dining out and eat at home instead. In May, restaurant industry bellwether McDonald's reported a 3.6% year-over-year decline in first quarter same-store sales. The Michigan survey shows that Trump’s tariff pronouncements, along with the severe reaction of the stock and bond markets, are taking their toll on US consumers.

• International travel to the US is trending downward, according to preliminary data from the Department of Commerce, US Customs and Border Protection, and other organizations that track inbound US travel. Total international visits to the US fell approximately 14% in March compared to the same period last year. Moreover, traffic from the highest-value inbound travel markets declined significantly. March saw a 26% year-over-year decline in overnight land trips by Canadians and air travel to the US from Canada fell 14% YoY. Travel from Western Europe declined for the first time since 2021, with a 17% drop in March visits to America. Travel from Asia fell for the second consecutive month in March and remains 25% below 2019 levels, while visits from South America fell 10% following a flat February. Florida was the top destination for international visitors in March, per the US Travel Association.
• Among the 14 top-level industry sectors, leisure and hospitality trailed only private education and health services, and government, adding 20,000 jobs in June, according to the latest data from the US Bureau of Labor Statistics. Hotels and restaurants, along with other industries that rely heavily on immigrant workers, have petitioned the Trump administration for targeted relief from his immigration crackdown, but have yet to receive it. Meanwhile, average wages at accommodation and food services rose to a new high of $19.55 per hour in April, up 3.7% compared to a year earlier, according to the US Bureau of Labor Statistics.