Travel to and within the U.S. grew 3.4 percent year-over-year in May 2018, according to the U.S. Travel Association's most recent Travel Trends Index.
The growth signals the industry's 101st straight month of overall expansion. Leisure travel led the domestic market in May but that could flip in the short-term based on strength in business sentiment, U.S. Travel economists suggest.
Experts project a healthy summer travel season. Domestic travel is expected to increase by approximately 2.5 percent in the next six months while the continued strength in forward-looking international travel bookings is also encouraging.
International inbound travel outpaced the domestic market in May and is expected to grow roughly three percent through the fall.
"Business travel has been on an upward trajectory in 2018 and this is expected to continue throughout the rest of the year. This is solid evidence that businesses are optimistic in the current economic environment and are buoyed by the recent tax legislation," said U.S. Travel Senior Vice President for Research David Huether in a statement.
Nonetheless, concerns are mounting over rising trade tensions and climbing oil prices.
"Amid these positive signs, missed opportunities and storm clouds exist. We urge officials to foster policies and messaging in the race to be globally competitive," added Huether.
Concerns also persist that the U.S. is losing out on its share of the global travel market, which fell from 13.6 percent to 11.9 percent from 2015 to 2017. The U.S. is expected to continue to fall behind countries like China, France, Germany and the U.K. due to a sluggish rate of growth in inbound travel.
"More people around the world are traveling than ever before-but too many [are] visiting places other than the U.S.," U.S. Travel president and CEO Roger Dow said at the association's annual trade show, IPW in Denver back in May. "Bottom line: we're falling behind our competitors."
Nonetheless, the tourism industry isn't getting discouraged and is working to reverse the trend through efforts such as the Visit U.S. Coalition and Brand USA's aggressive marketing.
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