What: According to the Financial Times, US revenge travel boon is coming to an end.

Why this is important: This is not good news for international retailers abroad.

The surge in American consumer spending on high-end vacations, often referred to as "revenge travel," appears to be diminishing, transitioning to what the industry is now branding as "normalized demand." This shift suggests a cooling in the travel sector, prompting companies to adjust their financial outlooks.

Marriott International, among other leisure firms, noted a stabilization in travel demand in the US and Canada, with RevPAR showing no growth year-over-year in the first quarter. Similarly, Expedia has revised its full-year expectations downwards due to lower-than-anticipated growth in bookings. Southwest Airlines also experienced subdued demand, with first-quarter RASM at the lower end of its forecast. Airbnb reported a slowdown too, with a modest increase in bookings compared to the same quarter last year, marking its slowest growth post-pandemic.

The U.S. hotel industry faced its first decline in RevPAR since the pandemic began, dropping 2.2% in March. This downturn has been part of a longer trend of decreasing hotel occupancy rates over the past year.

However, the global market presents opportunities, with travel demand in Europe and Asia remaining robust. Companies like Booking, which has minimal revenue dependence on the U.S., have benefited from this sustained international interest. Additionally, corporate travel is picking up, potentially offering a more stable revenue source for companies like Delta Air Lines and Hilton Worldwide, which cater significantly to business travelers. This sector's recovery is expected to outpace leisure travel, with a 7% increase in domestic business trips projected for this year.

Is this the end of US revenge travel?