U.S. economic indicators remained generally positive in February, with one key exception: consumer sentiment. Sentiment dropped sharply, falling 9% from January, as consumers’ inflation expectations increased.
Despite negative consumer sentiment about the overall economy, travel sentiment remained positive in February—indicating that consumers still plan to prioritize leisure travel in their budgets.
Lodging demand was a relative bright spot for the industry with 4% growth in February. Key performance indicators—including occupancy, average daily rate (ADR), and revenue per available room (RevPAR)—also outperformed both 2024 levels and national averages.
Despite calendar shifts, international airlift and arrivals declined statewide, with Southern California ports seeing steeper drops—likely due to wildfires and political factors affecting visitation.
Source: Visit California and third-party data sets