Key insights
- Bank of America's credit card data indicates a slowdown in cruise spending growth in May, with an 8.4% year-over-year increase compared to April's 15.8%. While cruise spending declined month-over-month, overall travel spending showed resilience. The data's historical correlation with industry net yields suggests potential implications for travel sector profitability, though the direct impact on broader US equity markets is limited in the short term.
Investing.com -- Bank of America credit and debit card data showed cruise spending in May increased 8.4% compared to the same month last year, according to a Friday report. The growth rate slowed from April's 15.8% increase and exceeded March's 6.7% rise.
Cruise spending in May fell 4.7% from April on a month-to-month basis. This decline was larger than the average sequential decrease of 0.5% seen from 2023 to 2025.
When compared to May 2024, cruise spending grew 13.7% in the most recent month. This figure was 2 percentage points below April's 15.9% two-year growth rate and matched March's 13.6% increase.
Total travel spending rose 6.0% year-over-year in May, matching April's 6.5% growth rate. Airline spending increased 8.9% while hotel spending gained 2.8%.
Bank of America stated that monthly spending data has shown a 75% correlation with industry net yields on a one-quarter lag since 2008, excluding the pandemic period.