Millions of Americans have kicked off summer 2024 with travel, barbecues, and pool activities over the Memorial Day weekend. With strong consumer spending projected for travel and leisure activities, the season is already showing promising signs. The Transportation Security Administration reported its second-busiest day ever at airports, while AAA projected a high number of Americans driving long distances this weekend.
Royal Caribbean’s first-quarter earnings surpassed expectations, reflecting strong bookings and onboard spending. Optimism for the remainder of the year was expressed by company executives during their earnings call. If this positive momentum continues throughout the summer, leisure businesses such as Royal Caribbean, hotels, restaurants, and theme parks could see a boost, providing economic benefits to cities with thriving tourism scenes.
A Bank of America Institute analysis released recently also predicts a promising outlook for leisure spending this summer. Based on trends from card data, consumer surveys, and other resources, the bank expects this summer to be slightly softer than last year but still strong. The data suggests that more Americans, especially younger generations, are planning to travel internationally, take longer trips, and spend more money this summer.
The bank’s consumer travel survey showed that a significant percentage of Americans are planning to travel this summer, regardless of income level. Spending using Bank of America cards has been highest in countries like Japan, South Korea, and Switzerland, as well as domestically in states like California and Florida. Despite the economic uncertainties brought on by rising household debt, inflation, and high-interest rates, many are looking forward to a summer of travel and leisure activities.
The passing of Kabosu, the dog who inspired the popular “doge” memes, was announced by her owner, Atsuko Sato. Kabosu, a Japanese Shiba Inu, became famous in 2010 for her quizzical expression in a viral photo. The popularity of “doge” memes led to Kabosu becoming the face of the alternative cryptocurrency dogecoin in 2013. This event marked the height of the meme’s fame and led to the creation of other meme tokens like Shiba Inu coin.
Looking ahead, financial markets will be closed on Memorial Day, with earnings from Mizuho Financial and remarks by Federal Reserve officials slated for Tuesday. Wednesday will see earnings reports from companies like Salesforce and HP, while Thursday will bring more earnings releases and economic data, such as the US Department of Commerce’s second estimate of first-quarter GDP. Friday will feature inflation data from the European Union and household income and spending figures from the US Commerce Department. Despite economic challenges, the summer of 2024 is expected to be a strong season for travel and leisure spending.
