Travel spending by Americans set to increase this summer.

This summer, Americans are anticipated to spend generously on journeys.

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The start of the season is off to a strong beginning: The Transportation Security Administration recently noted that Thursday was the second-busiest day at airports in their history. This month, five of their ten busiest days have occurred. AAA projected that 43.8 million Americans would be driving at least 50 miles this weekend, increasing by 4% from the previous year and approaching the all-time record of 44 million travelers during the 2005 Memorial Day weekend.

"We haven't seen Memorial Day weekend travel numbers like this in nearly 20 years," said Paula Twidale, AAA Travel's senior vice president in a release.

Royal Caribbean's quarterly earnings exceeded expectations due to robust onboard spending and high bookings. Company executives expressed optimism for the rest of the year during an earnings conference call.

If this continued enthusiasm persists through the summer, it would bode well for businesses associated with leisure such as Royal Caribbean, hotels, eateries, and theme parks. It could also have an uplifting impact on cities with significant tourist traffic.

The Bank of America Institute expects promising trends for leisure spending this summer, evident in their card data, a survey of 2,010 respondents, and other sources. Although spending might be slightly less than last year, it'll still be considerable.

During a virtual presentation to the media, the bank's analysts stated that the summer would likely see a formidable level of expenditure for travel. "The strength of the data already indicates it being a solid summer," said David Tinsley, the Bank of America Institute's senior economist.

The bank's travel survey indicated that 72% of people intend to travel, with 36% already planning their journeys. Younger Americans seem to be planning longer trips and are more likely to take international trips than older generations.

From January to April, spending by bank cardholders rose by more than 5% in California and remained stable in Florida. However, when compared to 2019, restaurant spending in these two states increased by approximately 15%.

Even among individuals earning less than $75,000 a year, more than 60% revealed their plans to travel this summer. The percentage climbs to over 80% for those earning more than $150,000 annually.

However, these rejuvenating times might not last forever. Household debt continues to accumulate, and delinquencies are also increasing, as per data from the New York Fed.

"In the first quarter of 2024, credit card and auto loan transition rates into serious delinquency rose across all age groups," said Joelle Scally, regional economic principal at the Household and Public Policy Research Division at the New York Fed. Additionally, inflation and interest rates at a two-decade high are weighing on people's finances.

Not every economist foresees a recession this year, but several anticipate a slowdown in the economy over the subsequent 12 months. This summer's spending spree could be the last hurrah for many before the economy potentially slows down.

Kabosu, the Canine Inspiration behind Dogecoin, Has Passed Away

Kabosu, the Shiba Inu responsible for the proliferation of "doge" memes, passed away on Friday, her proprietor Atsuko Sato announced.

The pooch—who was 18 years old at the time of her passing—fell asleep near a window while birds were singing, Sato penned in a blog post. "As I was touching her, she gently left this world," said Sato, who is a kindergarten teacher in Japan's Sakura. "I think she was the happiest canine on earth."

Kabosu gained international recognition around 2010 when a photo showcasing her with her paws folded and a perplexed expression circulated numerous online forums such as Reddit. This led to an influx of "doge-themed" memes, earning its name from an intentional misspelling of "dog." Photoshopped versions of Kabosu's face were pasted onto various delicacies, landmarks, and other animals.

In December 2013, Kabosu's face became the symbol for the alternative cryptocurrency dogecoin – a humorous play on bitcoin reflecting the internet's fondness for animal memes. Other meme-based cryptocurrencies emerged, including a Shiba Inu-themed currency.

Read the story in its entirety here.

What's Coming Up Next

Monday: Financial results from Mizuho Financial. US financial markets will be closed in commemoration of Memorial Day.

On Tuesday, you can expect income from CAVA. Federal Reserve representatives Loretta Mester, Neel Kashkari, and Lisa Cook will present speeches. S&P Global will also release the S&P CoreLogic Case-Shiller US National Home Price Index for March. The May consumer survey from The Conference Board will be made available.

The following day, Wednesday, brings earnings from Salesforce, HP, Dick's Sporting Goods, U-Haul, Abercrombie & Fitch, Chewy, American Eagle Outfitters, Victoria's Secret, and Red Robin. Federal Reserve officials John Williams and Raphael Bostic will also have speeches.

Thursday is packed with earnings news, including Costco, Dell, Dollar General, Hormel Foods, Ulta, Best Buy, Burlington, Birkenstock, Gap, Nordstrom, Asana, and Kohl’s, alongside Foot Locker. The US Commerce Department will unveil its second quarter GDP estimate, the US Labor Department will provide data on new jobless claims from May 25, and the National Association of Realtors will report on signed home contracts during April. Federal Reserve officials John Williams and Lorie Logan will give presentations as well. China's National Bureau of Statistics will publish manufacturing and services sector surveys covering May.

Friday holds the publication of May inflation data by the European Union's statistics agency. The US Commerce Department will update April information regarding household income, spending, and the preferred inflation gauge. Atlanta Fed President Raphael Bostic will have a speech.