Pent-up demand and consumer savings will drive recovery in 2022 but then taper off
June 21, 2022
WASHINGTON –
Days after the United States repealed its Covid-19 testing requirement for inbound air travelers, U.S. Travel Association released its full biannual forecast for travel through 2026—including both travel spending and volume—which projects that all segments of travel, in spite of rising inflation, will surge in the short term due to pent-up demand and consumer savings. However, this is not expected to last, leading to slower growth in the later years of the forecast. The international component of the forecast was released earlier this month at the association’s IPW trade show
U.S. Travel estimates that $1.05 trillion (in 2019 dollars, adjusted for inflation) will be spent on travel in the United States in 2022, but this is still 10% below 2019 levels and 16% below where it should have been in 2022 if not for the pandemic. The table below reflects annual spending estimates, adjusted for inflation, through 2026.
The forecast, based on analysis from Tourism Economics, projects that domestic business travel volume will reach 81% of pre-pandemic levels in 2022 and 96% in 2023. However, domestic business travel spending, when adjusted for inflation, will not fully recover to pre-pandemic levels within the range of the forecast. 
U.S. Travel is advocating for federal policies that would accelerate the business travel sector’s recovery. In a recent letter to U.S. Treasury Secretary Janet Yellen, U.S. Travel called for the agency’s support on a tax extenders package that includes a temporary restoration of the entertainment business expense deduction and an extension of full expensing for business meals. These policies are also key priorities for U.S. Travel’s Meetings Mean Business Coalition.
Domestic leisure travel will continue to drive the overall U.S. travel industry’s recovery in the near term, though spending is projected to remain $46 billion below where it should have been in 2022 had the pandemic not occurred.
International inbound travel is making strides toward recovery, aided by the recent repeal of the inbound pre-departure testing requirement. The sector is projected to grow rapidly through the rest of 2022, and then grow at a slower pace in 2023-2026. A full recovery to pre-pandemic levels (volume and spending) is not expected until 2025.
However, policy changes can also help accelerate that timeline. If the U.S. reduces wait times for visitor visa interviews to less than 30 days, the U.S. could gain an additional 2.2 million international visitors and $5.2 billion in spending by the end of the 2022. U.S. Travel has several policy proposals to restore visa processing operations worldwide:
U.S. Travel expects to next revise its biannual forecast in fall 2022.
Please click here to see the full forecast.
 
U.S. Travel Association is the national, non-profit organization representing all components of the travel industry. Travelers in the United States are estimated to spend $1.1 trillion in 2022 (still 10% below 2019 levels). U.S. Travel advocates for policies to accelerate an even recovery across the travel industry and restore economic and job growth for this essential contributor to our nation’s success. Visit ustravel.org for information and recovery-related data.
 
David James
Vice President, Media Relations
202.218.3658
Email ›
Copyright © 2022 by U.S. Travel Association. All rights reserved.

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