Americans Are Spending Heavily on Hospitality and Leisure

Leisure and hospitality businesses in the US are bouncing back after the pandemic, with booking activity approaching pre-COVID 19 levels.
Despite many economists predicting a recession later this year, hospitality demand has been robust. This is positive news for a sector that was on its knees a mere three years ago. During the first year of the pandemic, restaurants, bars, and hotels shed more than eight million jobs, roughly 49% of the sector’s workforce.
Last month, employment levels in the sector stood at just 2.4% short of their February 2020 levels. The industry added 917,000 jobs in April from a year earlier, the second-largest gain of any industry during that period.
A recent survey conducted by the Bank of America showed that 68% of Americans plan to take a vacation this year. The leisure and hospitality sector is expected to fully recoup all its COVID-related job losses this year as consumers continue to travel, dine out and spend on in-person experiences, especially during the summer.
What does this mean for me?
By March this year, the eight largest US airlines, making up 95% of the country’s air traffic, had returned to first-quarter-of-2019 traffic. Restaurants are also cashing in on this momentum. A recent restaurant industry survey indicated that 33% of respondents were eating out more than they did six months ago.
Analysts have speculated on the reasons for the increased demand, with some suggesting that consumers are eager to forge new experiences after being cooped up during the pandemic years.