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Insight of the Day: Americans are shopping less but they’re still spending on flights, hotels and Disneyland

Key Points:

  • Spending Shift: Consumers are prioritizing travel and experiences over retail purchases due to inflation impacting goods prices.

  • Disney Sees Success: Disney's parks and experiences revenue is up, driven by higher attendance (despite slowing from post-pandemic levels) and a willingness to spend more.

  • Travel Demand Remains Strong:  Airlines like Delta and United, and hotel chains like Marriott, are reporting positive results and optimistic outlooks for summer travel.

  • Economic Uncertainty: While some executives warn of a slowdown from post-pandemic travel surges,  current spending trends remain driven by pent-up demand. However, inflation and a potentially weaker labor market could impact this in the future.

Overall Picture: Despite inflation, Americans are still spending on experiences.  Travel demand is high, benefiting companies like Disney and major airlines even as consumers cut back in other areas.

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