Cautious Americans delay summer travel, await better deals
Amid economic uncertainty and a weaker dollar, Americans are growing cautious about travel. From flights and hotels to rental cars, many are delaying bookings or scaling back plans entirely, hoping to snag better deals closer to the date.
It's a trend that's starting to worry the travel industry.
Hotel bookings are flat or declining, and airline reservations are down—even though airfare has become cheaper. Big travel players like Delta, Marriott, and Booking Holdings have lowered or withdrawn their 2025 forecasts as U.S. demand softens. Airbnb also flagged that more users are waiting until the last minute to confirm trips.
That hesitation has left companies with less visibility on what the second half of the year will look like. Delta said in April it was too early to predict the full-year outlook given current economic uncertainty. United Airlines echoed that, warning that bookings could slow further.
"It's very clear that consumers are waiting to make decisions, including for the summer," said Southwest Airlines CEO Robert Jordan at a recent industry conference. He added that while demand is stable, it's lower than expected earlier this year.
According to Flighthub, summer flight bookings in the U.S. are down 10 percent compared to last year despite a 7 percent drop in average prices. Long-haul flights are seeing even steeper discounts — with tickets to destinations like Sydney, Australia down 23 percent.
"You can't keep an airline seat on the shelf in a warehouse," said Steve Hafner, CEO of Kayak. "If you don't fill that seat tomorrow and the airplane flies, it's gone."
Hotel bookings are showing the same pattern. "They've actually fallen off, and it gets weaker like a month out," said Hyatt CEO Mark Hoplamazian. "By the time you get to that month, it recovers."
CoStar data shows bookings in major U.S. cities are flat-to-down. Room rates are only expected to rise by 1.3 percent in 2025 — down from a 1.8 percent increase in 2024. "We're not getting that crazy pricing power we got in the early days of the recovery," said Marriott CEO Anthony Capuano.
Some hotels are already sweetening deals, offering free nights or special packages to drive bookings. "That's what Jackie Lafferty is hoping for," the story notes. The Los Angeles PR director has shifted her plans from Hawaii or Florida to a California-based vacation. "By the time we broke down the cost of the flights, the hotel and the rental car, it looked expensive, it felt unreasonable," she said.
Meanwhile, the weakening dollar is nudging travelers to stay closer to home. In March, a Deloitte survey showed Americans planned to increase summer travel budgets by 13 percent. But by April, they were budgeting roughly the same as last year.
"The dollar is just not going as far, and I think people are starting to realize that," said Chirag Panchal, CEO of luxury travel firm Ensuite Collection. His U.S.-based clients are now favoring Canada or the Caribbean over Europe.
Rachel Cabeza, a New Jersey-based actor and fitness instructor, sums it up: "We might go international at the end of the summer. If we do, it will be last-minute and spur of the moment based on cheaper flights." For now, her only confirmed trip is a local getaway to Martha's Vineyard.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Global News
2 hours ago
- Global News
U.S. Fed holds interest rates despite pressure from Trump to cut
The Federal Reserve left its key short-term interest rate unchanged for the fifth time this year, brushing off repeated calls from President Donald Trump for a cut. The Fed's decision Wednesday leaves its key short-term rate at about 4.3 per cent, where it has stood after the central bank reduced it three times last year. Chair Jerome Powell has said the Fed would likely have cut rates already if not for Trump's sweeping tariffs. Powell and other Fed officials say they want to see how Trump's duties on imports will impact inflation and the broader economy. So far the duties have lifted costs of some goods, such as appliances, furniture, and toys, and overall inflation has risen a bit, though less than many economists had expected. There were some signs of splits in the Fed's ranks: Governors Christopher Waller and Michelle Bowman voted to reduce borrowing costs, while 9 officials, including Powell, favored standing pat. It is the first time in more than three decades that two of the seven Washington-based governors have dissented. One official, Governor Adriana Kugler, was absent and didn't vote. Story continues below advertisement The choice to hold off on a rate cut will almost certainly result in further conflict between the Fed and White House, as Trump has repeatedly demanded that the central bank reduce borrowing costs as part of his effort to assert control over one of the few remaining independent federal agencies. On Wednesday, Trump seized on a report showing the economy expanded at a three per cent annual rate in the second quarter as evidence that growth is accelerating and called on Powell to cut rates. Yet the Fed typically reduces borrowing costs when the economy is faltering and threatening to send unemployment higher. The economy isn't necessarily doing as well as the three per cent figure suggests. It follows a negative reading in the first three months of the year, when the economy shrank at a 0.5 per cent annual rate. Most economists are averaging the two figures to get a growth rate of about 1.25 per cent for the first half of the year. If that sluggishness continues, the Fed could cut rates as early as September. 1:18 Powell fact-checks Trump to his face about cost of Federal Reserve overhaul For now, any dissent also would likely reflect that there are at least two different ways to see the U.S. economy, which is clearly in flux. The first is the way that most Fed officials have described it: Unemployment is at a low 4.1 per cent, while the economy is growing, albeit modestly, and inflation did tick up in June, largely because of tariffs. Story continues below advertisement So, the thinking goes, why not stand pat on rates and see what happens next? If inflation continues to heat up, a rate cut could make things worse — the Fed typically raises borrowing costs to combat inflation. And as long as the economy is doing well, there is no need to cut to support growth. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy The other view is more worrisome: There are signs the economy is weakening, such as sluggish hiring, slower consumer spending, and pretty modest overall growth. The economy, in the first six months of the year, probably expanded at an annual rate of about 1.5 per cent. At the same time, tariffs have lifted inflation by less than many economists had feared, so far. This is the view of the economy that Waller sketched out in a speech earlier this month. 'Private-sector payroll growth is near stall speed,' Waller said. 'We should not wait until the labor market deteriorates before we cut the policy rate.' When the Fed cuts its rate, it often — but not always — results in lower borrowing costs for mortgages, auto loans and credit cards. Some economists agree with Waller's concerns about the job market. Excluding government hiring, the economy added just 74,000 jobs in June, with most of those gains occurring in health care. 'We are in a much slower job hiring backdrop than most people appreciate,' said Tom Porcelli, chief U.S. economist at PGIM Fixed Income. Waller was appointed to the Fed's seven-member governing board by Trump during the president's first term. He has often been mentioned as a potential replacement for Powell. Waller has underscored in several speeches that he does not think Trump's tariffs will lead to persistently higher inflation. Story continues below advertisement Bowman, the vice chair for regulation, was also appointed during Trump's first term. She suggested in June that the Fed should soon reduce borrowing costs. Bowman is also a possible Powell replacement, though more of a long shot. Michael Feroli, an economist at JPMorgan Chase, said in a note to clients this week if the pair were to dissent, 'it would say more about auditioning for the Fed chair appointment than about economic conditions.' The Fed's two-day meeting comes after a week of extraordinary interactions with the Trump White House, which has accused Powell of mismanaging an extensive, $2.5 billion renovation of two office buildings. Trump suggested two weeks ago that the rising cost for the project could be a 'firing offense' but has since backed off that characterization. Notably, Trump argues that the Fed should cut because the economy is doing very well, which is a different viewpoint than nearly all economists, who say that a healthy, growing economy doesn't need rate cuts. 'If your economy is hot, you're supposed to have higher short-term rates,' Porcelli said.
Globe and Mail
2 hours ago
- Globe and Mail
SABLE OFFSHORE SHAREHOLDER ALERT by Former Louisiana Attorney General: Kahn Swick & Foti, LLC Reminds Investors With Losses in Excess of $100,000 of Lead Plaintiff Deadline in Class Action Lawsuit Against Sable Offshore Corp.
Kahn Swick & Foti, LLC ('KSF') and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors that they have until September 26, 2025 to file lead plaintiff applications in a securities class action lawsuit against Sable Offshore Corp. (NYSE: SOC), if they purchased the Company's securities (1) between May 19, 2025 and June 3, 2025, both dates inclusive (the 'Class Period'); and/or (2) pursuant and/or traceable to Sable's May 21, 2025 secondary public offering (the 'SPO'). This action is pending in the United States District Court for the Central District of California. What You May Do If you purchased securities of Sable Offshore and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850 or via email ( or visit to learn more. If you wish to serve as a lead plaintiff in this class action, you must petition the Court by September 26, 2025. About the Lawsuit Sable Offshore and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws. On June 4, 2025, the Company disclosed that 'a Santa Barbara County Superior Court Judge granted ex parte requests from plaintiffs in Center for Biological Diversity, et al. v. California Department of Forestry and Fire Protection, et al. (25CV02244) and Environmental Defense Center, et al. v. California Department of Forestry and Fire Protection, et al. (25CV02247) for temporary restraining orders prohibiting Sable Offshore Corp. from restarting transportation of oil through the Las Flores Pipeline System pending the hearing on an order to show cause regarding a preliminary injunction scheduled for July 18, 2025. Sable is exploring all possible avenues available to address these preliminary rulings.' On this news, the price of Sable's shares fell by $0.94 per share, or 3.91%, to close at $23.10 on June 4, 2025. The case is Johnson v. Sable Offshore Corp., et al., No. 25-cv-6869. About Kahn Swick & Foti, LLC KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation's premier boutique securities litigation law firms. This past year, KSF was ranked by SCAS among the top 10 firms nationally based upon total settlement value. KSF serves a variety of clients, including public and private institutional investors, and retail investors - in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, Delaware, California, Louisiana, Chicago, New Jersey, and a representative office in Luxembourg.
Toronto Sun
3 hours ago
- Toronto Sun
Buffalo Sabres home arena to remain KeyBank Center after reaching 10-year naming rights extension
Published Jul 30, 2025 • 1 minute read The rink at KeyBank Center is viewed before an NHL hockey game between the Boston Bruins and the Buffalo Sabres, Oct. 22, 2021, in Buffalo, N.Y. Photo by Joshua Bessex / AP The Buffalo Sabres' home arena will continue being called the KeyBank Center after the two sides announced a 10-year naming rights extension on Wednesday. This advertisement has not loaded yet, but your article continues below. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. SUBSCRIBE TO UNLOCK MORE ARTICLES Subscribe now to read the latest news in your city and across Canada. Unlimited online access to articles from across Canada with one account. Get exclusive access to the Toronto Sun ePaper, an electronic replica of the print edition that you can share, download and comment on. Enjoy insights and behind-the-scenes analysis from our award-winning journalists. Support local journalists and the next generation of journalists. Daily puzzles including the New York Times Crossword. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors Don't have an account? Create Account The new deal will kick in next year and run through 2035-36. The Cleveland-based bank has a large regional presence in Buffalo, and took over the downtown arena's naming rights after acquiring First Niagara Bank in 2016. As part of the extension, the bank's name will be featured on the Sabres' helmets for away games starting this season. The arena is undergoing a series of long-needed renovations since first opening in 1996. Last year, the Sabres replaced the roof and installed a new video scoreboard over center ice. The next series of renovations are expected to address upgrading the seats and fan amenities. The Sabres' control the building, which is also home to the three-time defending National Lacrosse League champion Bandits, and have placed an emphasis on adding more events since Pete Guelli took over as the team's chief operating officer last year. In November, the arena will host one of Paul McCartney's 20 North American tour stops, as well as host a pre-Olympic U.S. vs. Canada women's hockey Rivalry Series game. The Sabres, meanwhile, have been struggling on the ice with the team in the midst of an NHL-record 14-season playoff drought. MLB Ontario Toronto & GTA Wrestling Toronto & GTA
