Americans Lead Surge in Overseas Travel as U.S. Arrivals Decline
Americans are increasingly choosing international vacations even as foreign visitor numbers to the United States slide, according to government data and airline executives. In March, inbound air arrivals fell nearly 10 percent from the same month a year earlier, while U.S. citizens flying abroad rose 1.6 percent and have climbed 22 percent since 2019, the International Trade Administration reports.
The reversal deepens an existing gap between the $1 trillion U.S. travel industry’s exports and what Americans spend overseas, which exceeded $50 billion last year. Including land border crossings, inbound visitors to the U.S. dropped 14 percent in March compared with 2024, risking a $21 billion loss in tourism exports if the trend continues, the U.S. Travel Association warns. JPMorgan analysts estimate that reduced foreign travel could shave 0.1 percent from U.S. GDP.
Airlines note that international and premium-travel demand is helping to offset softer domestic bookings. United Airlines said its Europe-origin bookings are down 6 percent and Canadian-origin bookings off 9 percent year over year. But its overall premium cabin revenue is holding firm as wealthy retirees and business travelers remain eager to spend. Delta Air Lines reports that cash sales for international travel through the summer are “very strong,” according to President Glen Hauenstein, who cited a 17 percent year-over-year rise in premium-cabin sales and a 5 percent increase in international bookings.
American Airlines CEO Robert Isom emphasized the need to make the U.S. more attractive for inbound tourists by streamlining visa processes and addressing security concerns. “We’ve got to make the U.S. a place they want to go,” he told CNBC, highlighting that high-profile detentions, travel warnings and political rhetoric have discouraged foreign visitors despite a strong dollar.
While inbound figures falter, U.S. families are embracing overseas travel. Caroline Smith, an accounting director from Verona, New Jersey, spent Easter break touring Italy with her husband and two children, only to bump into multiple families from her hometown on the Spanish Steps in Rome. “We went to Spain in 2023 and Portugal in 2024 because the flights are short,” she said, adding that Greece is next on their list as the children grow older.
Travel advisers are reporting a surge in demand for celebratory and bucket-list trips. Grace Cular Yee of Pineapple7 in Virginia says many clients are splurging on college graduation voyages, inspired by social media and shows like “The White Lotus” and “Emily in Paris.” She recently arranged a mother-daughter trip to France for a high-school graduation.
The imbalance between outbound and inbound travel has industry groups urging action. ACI World’s latest Airport Economics Report notes that airport revenues remain 11.4 percent below pre-pandemic levels, even as passenger traffic nearly recovered in 2023. To support infrastructure investments needed for a projected 17.7 billion global passengers by 2043, regulators must adopt flexible policies and financing mechanisms.
Consultant Samuel Engel of ICF warns that uncertainty dampens decision-making: “Business people don’t ink deals in the face of uncertainty,” he said, noting that diplomatic tensions and policy shifts could further suppress international business travel. As Americans chase sunlit beaches and cultural experiences abroad, U.S. policymakers face the challenge of restoring the country’s appeal to visitors and rebalancing the global travel equation.
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Sources: AirGuide Business airguide.info, bing.com, cnbc.com