In a promising
economic development, the Bureau of Labor Statistics’ (BLS) June Consumer Price
Index (CPI) report
shows a notable reduction in inflation overall, with travel-related costs
leading the way. For the second consecutive month, the travel sector has
experienced a more significant price drop than the overall economy.
The U.S. Travel Associations' latest
Travel Price Index (TPI) indicates a substantial 1.4 percent decrease in
travel-related prices from the previous month. This decline is driven primarily
by reduced costs for hotels, airlines and gasoline. In comparison, the broader
economy saw a modest 0.1 percent decrease in prices, marking the first monthly
decline since 2020. Analysis across different time frames— month-to-month,
year-over-year and against pre-COVID-19 levels—shows an encouraging pricing trend
for travelers.
“Now is the time
for the travel industry to boost volume,” said U.S. Travel President and CEO
Geoff Freeman. “We’ve already seen travelers take advantage, with eight of the
ten busiest days in TSA’s history occurring in 2024. It’s essential that the
industry is equipped with the right funding, resources and technology—coupled
with sustained government focus—to meet an increase in demand.”
The U.S. Travel
Association updates the TPI monthly, following the Bureau of Labor Statistics’ CPI
release. With travel prices falling, current conditions present a prime
opportunity for both travelers and the industry to capitalize on the more
favorable economic climate.
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