Fewer Americans plan to travel after surging fuel costs hit budgets

Americans are rethinking travel plans as war in the Middle East rattles international routes and pushes up the cost of fuel.

The share of US consumers planning vacations abroad or road trips closer to home fell in March, according to survey data out this week from the Conference Board.

Just under 17 per cent said they intend to travel internationally over the next six months, matching the lowest share since the end of 2022.

That would mark a shift in behaviour following a period after the Covid-19 pandemic years in which Americans splurged on trips to places far and near.

Disruptions from the war are only the latest challenge facing consumers already dealing with a softer labour market, persistent inflation and a weaker dollar.

“We have to take the gas price increase as a part of a larger picture,” said Mr Jan Freitag, the national director of hospitality analytics at CoStar Group. “Airfares may just be the last straw.”

While US airlines are so far seeing a rush in customers trying to lock in cheaper airfares before the surge in energy prices pushes costs even higher, some are warning of challenges ahead.