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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Americans’ urge to splurge on pricey vacations is fading.
After the pandemic put the brakes on the travel industry, leisure spending bounced back strongly over the past two years. All that pent-up demand from the pandemic is at risk of being tapped out. If “revenge travel” was the buzz word in 2023, then “normalised demand” is poised to be this year’s corporate catchphrase. Investors should adjust their expectations accordingly.
Hotel operator Marriott International is among the spate of leisure companies that said demand for travel was normalising, particularly in the US and Canada. Revenue per available room (RevPAR) or room revenue for leisure travellers from the region was flat year on year during the first quarter. Meanwhile US online travel site Expedia cited lower than expected growth in gross bookings for lowering its full-year guidance. At…