""We continue to see extraordinary demand for travel and experiences," Capuano told Yahoo! Finance. "It feels like a fundamentally permanent shift that consumers are prioritizing spending on travel and experiences versus purchase of hard goods." The hotel chain expects earnings growth in 2026, with revenue driven by adding rooms to its portfolio and higher co-branded credit card fees. While U.S. business was slightly weaker in the fourth quarter due to the government shutdown, Capuano says the fundamentals remain strong."
"While Capuano acknowledged the "K-shaped" economy and an insatiable demand for luxury bookings, he told Yahoo "even with that lower-income consumer, they are still prioritizing spending on travel and experiences, just in a more economical way." Even as inflation, high rates, and political uncertainty weigh on household budgets, Americans are stubbornly hanging onto their vacations. Surveys show more than three in four Americans planned to travel in 2025,"
"Domestic leisure volumes have climbed back to roughly pre‑pandemic levels, and destinations report travelers are becoming more value‑conscious-not less determined to go. That resilience reflects a broader shift toward experiences over material goods. For years, spending on travel, dining, and recreation has outpaced many categories of physical goods, and newer data suggest that pattern is holding: Consumers are still willing to splurge on "real‑world" memories even as they balk at big‑ticket retail."
Americans continue to prioritize spending on travel and experiences despite inflation, high interest rates, and political uncertainty. Leisure demand remains strong, with domestic volumes near pre-pandemic levels and more than three in four Americans planning travel in 2025. Marriott expects earnings growth in 2026 driven by added rooms and higher co-branded credit card fees. The economy shows a K-shaped recovery and strong luxury demand, but lower-income consumers still allocate budgets to trips by choosing more economical options. Consumers increasingly favor experiences over physical goods, splurging on memories while trading down on big-ticket retail purchases.
Read at Fortune
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