What’s News with Datafy – July Tourism Edition

The big picture: This month’s headlines reaffirm a trend that we’ve been tracking closely: economic pressure is changing how Americans travel - and who is still traveling. With inflation, tariff-related uncertainty, and a more selective consumer mindset taking hold, travelers are prioritizing value, simplicity, and shorter trips. 

Meanwhile, Canadian visitation continues to decline sharply, and demand for lower-income U.S. travelers is softening. High-income audiences remain engaged - but are becoming more intentional with their spending. The moment calls for smart targeting, thoughtful messaging, and a strong local and drive-market focus. 

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Travel Demand Wavers: Sharpest Pullback from Lower-Income Travelers

Bank of America data shows three straight months of declining service spending, a trend we haven’t seen in over a decade. Delta and Southwest both flagged weaker demand among price-sensitive flyers. Many households are skipping travel entirely, while others are cutting back to fewer, more meaningful trips.

What it means for you: 

Travel demand is shifting - but it’s not disappearing. Now is the time to adjust your audience and messaging to reach and resonate with more resilient travelers. Lean into your data to identify high-intent travelers, then optimize your messaging to highlight what today’s travelers are really looking for: quality over quantity, and experiences that make trips feel truly worth it. 

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Closer to Home, Lighter on the Wallet

This summer, Americans are traveling less—and staying closer to home. A new Ipsos survey shows average vacation spending is down 25% compared to last year, with many families choosing road trips, staycations, or local weekend escapes instead of long-distance travel. Hotel bookings, flights, and even June PTO usage are all reflecting the slowdown.

What it means for you:

Drive market travelers are out there - you just have to be strategic about reaching them. Build audiences of high-intent visitors whose weekend habits or past trips suggest they’re open to close-to-home escapes. Then, use targeting messaging that highlights convenience, affordability, and unique experiences that are close to home.  

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Canadian Visitation Keeps Dropping

Canadian visits to the U.S. fell another 22% in June—six straight months of decline—due to growing tensions over tariffs, politics, and safety perceptions. Over 70% of Canadians say they’re less likely to travel to the U.S. this year.

What it means for you:

This is a wake up call for destinations that are near the border or historically reliant on Canadian travelers. It’s time to diversify markets, reinforce a welcoming brand message, and invest in cross-border trust-building if you want to reverse this trend.

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Consumer Mood: Resilient but Cautious

The economy’s sending mixed signals. Consumer confidence dipped in June (per the Conference Board), but sentiment rebounded elsewhere (University of Michigan). Retail spending is still strong - up 0.6% in June - but growth is uneven, and inflation pressures from tariffs are a growing concern.

What it means for you:

Travelers are weighing their options more carefully - so give them a reason to choose you. Use your data insights to understand who is still traveling, then make your destination stand out by highlighting the experiences that make your destination feel like a smart spend. Now is the moment for smart, data-driven story telling. 

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Want to dig deeper into how these trends are impacting your campaigns or markets?

Let’s talk. Contact your Datafy CX rep or send us a note at [email protected].