There were again mixed signals from the overall U.S. economic indicators in July. Steady inflation at 2.7% contrasted with downward job revisions for May and June, raising concerns about the U.S. economy.
Consumer sentiment was mixed, with more travelers citing financial constraints on recent trips even as confidence in current and future finances rose, while overall travel excitement remained strong—driven largely by international travel interest.
In July, California saw a second consecutive month of negative room demand and revenue, led by a 6% drop in Los Angeles—likely tied to protest activity and slowing international visits—while statewide group demand also fell 0.6%.
Non-stop international airlift to California grew 1.3%, but non-resident arrivals fell 10%—driven by steep Canadian declines—while Mexico stood out with arrivals up 5% for the month and 6% year-to-date.
Source: Visit California and third-party data sets