The insight: While tariffs, uncertainty, and anti-US sentiment are taking their toll on travel demand, there are still some pockets of opportunity. Interest in cruises and international destinations remains strong, while consumers continue to be willing to splurge on premium travel and trips to see stars like Beyoncé in concert.

The big picture: Consumers are broadly in “wait and see” mode due to uncertainty, Hilton CEO Chris Nassetta said during the company’s Q1 earnings call. That hesitation is softening demand for hotel rooms as well as leisure travel generally.

One notable exception to that trend is cruises, where bookings remain at healthy levels thanks in part to what Royal Caribbean CEO Jason Liberty called the “persistent value gap to land-based vacation.” In other words, cruises are often a more affordable option for price-conscious consumers seeking a getaway. Both Royal Caribbean and Carnival cite strong demand into 2026, a sign that even amid considerable uncertainty, consumers are still budgeting to spend on experiences.