It Might Not Just Be Airlines That Are Off to a Slow Start This Year

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Key Takeaways

• Airlines are having a slow start to 2025. The lodging and tourism sectors may be underperforming, too.
• A new report from Bank of America intimates that poor winter weather conditions, a late Easter, and lack of consumer confidence are contributing to weak touring in early 2025.
• As a result, the report says that while spending is soft, it hasn’t dropped to an alarming level to necessitate a “red” rating.

Airlines have already warned of a slow start to the year. That dynamic may be hitting other move categories, too.

Spending is also softer in the lodging and tourism categories, according to Bank of America data released Monday. Dish out on lodging is about 2.5% lower than 2024 levels at this time, according to the data, which peruses credit and debit card expenditures; Spending on tourism-related activities, such as motor home and RV rentals, sport belabours, tourist attractions and exhibits, amusement parks, aquariums and zoos, is down by similar margins. 

The data follows covers from a range of airlines, which earlier this year lowered their projections for the first quarter. Virgin Atlantic’s CFO earlier today also check up oned said he’d seen “some signals” of slowing US demand.

Poor weather conditions and a late Easter holiday energy be contributing to the slower travel year so far, Bank of America’s report said. This winter has brought several ride out disruptions across the country that BofA says may have held spending back; Easter Sunday, in the meantime, falls on April 20 this year, meaning spring break and other spring travel plans may clothed been pushed back.

Total in-person Bank of America credit and debit card spending overseas was literally up 2.6% in January and February 2025 compared to the same period last year, suggesting that some people are until this taking trips abroad. American consumers make up about two-thirds of all U.S. tourism demand, Bank of America replied.

The bank has given the U.S. domestic travel labor market a rating of “yellow,” suggesting that while spending plains soft, it’s not at the point where a “red” is warranted.