Has Travel Growth Hit a Plateau?
On Tuesday, the United States Travel Association released its monthly Travel Trends Index (TTI) which indicated that the travel industry’s growth has leveled off, but still remains in positive territory.
The travel sector of the economy in the United States continues to remain positive due in part to the success of the leisure travel market, lower gas prices and strong wages. On the other hand, business travel is forecasted to struggle making gains this year due to unstable international financial markets.
Using a combination of the Current Travel Index and the Leading Travel Index, the U.S. Travel Association developed the TTI to score every travel segment, including domestic and international, leisure and business. A score of 50 or more is a sign of growth and below 50 indicates a drop in industry performance.
For January, the Current Travel Index indicated a score of 51.2, which was a slight drop from December’s 51.4. The results show that the industry is not growing right now, but it is still in the positive performance sector.
Despite some potential issues within the travel industry domestically and internationally for the United States, the three-month and six-month predictive Leading Travel Indices indicate the travel industry still should grow by just under three percent.
U.S. Travel Association senior vice president David Huether released a statement:
“The softened growth in January needs to be read in context. Domestic leisure travel continues to perform well enough that the industry should have no trouble coping with the market and currency turbulence that has affected business and international travel. We're seeing signs all over the place that it's a win-lose economy right now—falling oil prices are great for consumers, for example, but obviously bad for the energy sector itself; however, we're seeing no evidence at all that the travel industry will miss the boat.”
For the full USTA Travel Trends Index, check out the association’s official website.
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