Despite Disney parks being the Happiest and Most Magical Places on Earth, even they aren’t immune to the recent inflation and rising costs facing the United States.Cinderella Castle
Disney even shared in the company’s Q2 Earnings Call that inflation can affect everything in the parks from how much you pay for your souvenirs to the cost of your meals. Disney isn’t the only one feeling the squeeze, as more and more Americans are putting off booking flights and even dining out — and consumer spending is starting to slow down.
Although “revenge travel” has been in the news quite a bit recently due to many people finally taking vacations they had put off because of the pandemic, it appears as though that may start to slow down — at least for Americans.Magic Kingdom crowds June 2022
According to The Washington Post, households have started cutting back on large purchases like travel and home repairs over the past several weeks thanks to skyrocketing prices. But, now it looks like consumers are also pulling back on just about everything from dining out to getting manicures and even home cleaning services.People are spending less overall.
Consumer spending makes up two-thirds of the United States’ economy, and held steady in April despite inflation being at historic highs. That might be starting to change, however, for the first time this year, retail sales have slowed down — mainly due to a 4% dip in car sales. Not only that, but U.S. flight bookings were down 2.3% in May, per data from Adobe Analytics.via The Washington Post
And according to data from Barclays, the spending slowdown is coming from both low- and high-income Americans and has now slowed to about 15% on services like travel and restaurants — half of what it was at the beginning of 2022. In addition, spending is down in both the goods and services categories, meaning that what might have been thought to originally just be a shift in spending is ultimately a decrease in consumer spending altogether.via The Washington Post
Overall, people are hesitant to spend money right now due to inflation being at 40-year highs and that is causing stress to both the consumer and the economy. As prices continue to rise, spending may continue to slow down, and we’ll be sure to keep you updated on this evolving situation.
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Have you cut back on spending due to inflation? Let us know in the comments!