Travel Agencies NAICS 561510

May 13, 2025 - Fewer Americans Plan to Travel This Summer

• Less than half of Americans have summer travel plans this year, according to a survey by consumer finance firm Bankrate. Only 46% of those surveyed will be traveling this summer, down from 53% last year, with two thirds citing cost as the reason for staying home, but not in the way most would think. Among those who did not plan to travel, 68% said the cost of everyday life was the primary reason, rather than the expense of the trip itself. Tariffs and the worry of a recession also kept more consumers in a holding pattern on summer trips. Other factors for staying home cited in the survey included the hassle of traveling (16%, up from 11% last year) and an inability to take time off of work (also 16%, a 6 point increase). A reluctance to leave work could be a sign of expectant layoffs from a weak economy.
• Sinking Canadian public opinion of the US and a lengthy trade war could cost the American travel industry an estimated $4 billion, according to a Forbes analysis of US Travel Association (USTA) data. Statistics Canada reported that Canadians visiting the US by car - the majority method - dropped a hefty 23% in February 2025 compared to the same period in 2024. Air travel from Canada to the US was also down 2.4%. Canadian travel agency giant Flight Centre reports a 40% drop in bookings to the US over the last three months (year over year), and a 20% cancellation rate on pre-booked trips. The USTA in February already warned that a 10% dip in travel from Canada could cost the US $2.1 billion in consumer spending and 140,000 hospitality jobs. With that rate already more than double the USTA estimate, losses could balloon to a potential $4 billion.

• Average wages for non-supervisory travel agency employees grew significantly throughout 2024, per the most recent US Bureau Labor Statistics data. By October, wages in the industry had increased by 13% year-over-year. The boost in wages can be traced to a glut of well-paid hiring when the travel industry rebounded from Covid, and a Department of Labor mid-year regulation change that lowered industry employees’ income threshold for overtime eligibility. The overtime rule was short-lived when an appeals court overturned it in late 2024. The new Trump administration will likely not defend the change any further.
• High-end cruising, solo travel, and trips to far-flung destinations are among the top travel trends for 2025, according to travel agency Fora. A fleet of new luxury ships is attracting cruise enthusiasts and even luring “never-cruisers” to test the waters with Aqua Expeditions, Explora Journeys, Four Seasons Yachts, The Ritz Carlton Yacht Collection among cruise lines to watch, per the report. For domestic solo travelers, Santa Monica, New Orleans, and Seattle top the list of cities, while London, Rome, Nice, Barcelona, and Mexico City are top international destinations. For more adventurous travelers, Kenya, Bhutan, and Chilean Patagonia and among the top far flung destinations in 2025. Fora’s “2025 Hot List” was created with input from the company’s leadership team, industry partners and thousands of travel advisors.