Kiplinger economic forecast: Surge in travel demand

The travel industry is a crucial part of the economy, and its performance affects the entire supply chain. To stay informed about important developments, subscribe to The Kiplinger Letter. While most predictions will be available online in the coming days, subscribers will receive the latest updates first.

For those planning summer vacations, it is crucial to book early, budget more, and plan for possible delays. To become a smarter investor and receive expert advice on investments, taxes, retirement, personal wealth management, and more, subscribe to Kiplinger’s Personal Finance. By signing up for Kiplinger’s free e-newsletter, one can receive the best advice directly to their email and help themselves profit and prosper.

According to industry experts and data, leisure travel will surpass pre-pandemic levels this summer, as people return to normal activities and routines. About 85% of Americans are planning a summer vacation this year, and approximately 42% are planning more trips than last summer. Air travel is also set to surpass pre-coronavirus levels, with passenger numbers that could even break new records. Among the busiest airports in the US are Dallas, Houston, Orlando, JFK in New York, and other airports on the East Coast with many international flights.

Domestic airfares may not go up significantly compared to international fares, but the costs will depend on the user. Domestic airfares are expected to rise slightly, and gas prices remain high as does demand for trains. While gas prices are a step back from last year’s all-time highs, a significant supply disruption during the summer could still lead to temporary price spikes.

Hotels are not as tense as airlines, but room rates are still rising, with an increase of 4.2% from a year ago. Car rental is getting cheaper, but booking early is still recommended due to short supplies. Cruise ships, on the other hand, are expected to operate at full capacity this summer, and bookings are projected to be slightly higher than in 2019. However, the days of great cruise deals are over.

Overall, the travel industry is expected to be extremely busy this summer, and travelers should be prepared for possible challenges and delays. The Kiplinger Letter has been providing reliable business and economic forecasts since 1925, helping millions of business owners and investors profit. To stay informed, get a free issue of The Kiplinger Letter or subscribe.

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