The U.S. Travel Association’s Travel Trends Index (TTI) enjoyed an uptick for the month of June, but that bit of good news is expected to be muted by stagnant international inbound travel growth for the remainder of 2016.
According to the TTI’s Leading Travel Index (LTI), a variety of factors point to renewed sluggishness in international travel growth through year’s end. The global market’s reaction to the Brexit vote — Britain’s decision to leave the European Union — and continued strengthening of the dollar are to blame, USTA stated in a press release.
After a decline in May, domestic business travel grew somewhat in June. However, the LTI predicts that domestic business travel growth will be anemic through the end of 2016 with a company’s travel budget remaining unmoved in an “uncertain global financial environment,” the release said.
Domestic leisure travel has been the one continuing bright spot for the U.S. travel market, but has slowed compared to the past few months.
The June Current Travel Index (CTI) registered at 51.6, on par with the 6-month moving average of 51.6 (numbers above 50 indicate growth, and scores below 50 show contraction). The travel industry at large remains in expansion mode, as the CTI has registered above the 50 mark for 78 straight months.