In March, inflation rose to 3.3% amid geopolitical tensions, driven largely by higher gas prices in California. Consumer confidence remained low, while the labor market held steady with unemployment at 4.3% and 178,000 jobs added.
Despite higher airfare and fuel costs, leisure travel demand remained resilient, with Americans continuing to prioritize travel and maintaining a positive outlook.
California’s hotel industry had a strong March. Statewide hotel revenue reached $2.6 billion, up 13% year over year, driven by spring break demand and solid growth across regions.
International airlift to California fell 6%, but overall arrivals from priority markets rose 3%, led by strong growth from Mexico, the U.K., and Germany.
Source: Visit California and third-party data sets