Caroline Smith, an accounting director from Verona, New Jersey, and her husband recently took their two children to Italy for Easter break. On the Spanish Steps in Rome, they encountered another family from their town. Two other families from the same area were also visiting Italy independently at the same time. This reflects a growing trend in the $11 trillion global travel industry: while Americans are traveling abroad in large numbers, the number of visitors to the United States is declining.
Data from the International Trade Administration shows that foreign visitors to the U.S. by air fell nearly 10% in March compared to the same month last year and nearly 13% from pre-pandemic levels, reaching 4.54 million people. In contrast, U.S. citizens flying abroad increased by 1.6% from last March and are up 22% from 2019, totaling 6.56 million travelers.
This imbalance could deepen the over $50 billion gap between what the U.S. generates through travel and tourism services and what Americans spend abroad. Factors such as an on-again-off-again trade war, high-profile detentions of visitors, visa-holders, and permanent residents, along with a strong U.S. dollar and travel warnings, have contributed to reduced demand from international travelers.
Despite these challenges, American consumers’ appetite for international trips is helping some companies, like United and Delta, offset the impact of fewer international tourists and weaker-than-expected domestic U.S. travel demand. Samuel Engel of ICF noted that while foreigners may find the U.S. less welcoming, the hesitance to travel to the U.S. could also affect international business travel.
United Airlines reported that bookings from international passengers originating in Europe are down 6%, while those from Canada are down 9% year over year. Delta Air Lines observed a similar trend. However, advanced bookings for international travel remain stable, with premium-cabin sales up 17% and international demand up 5%.
Grace Cular Yee, a Virginia-based travel agent, noted that many clients are prioritizing international travel, especially for college graduation trips, inspired by social media and television shows like “The White Lotus.” For now, the strong labor market supports high-end, international leisure travel bookings.
— new from CNBC