Eurodollar University Hotels, Airlines, and Gasoline Just Confirmed the Recession Is Already Here
Jul 17, 2025
The discussion delves into the surprising decline in discretionary spending, particularly in the hotel and airline sectors. Recent data reveals that the anticipated consumer resurgence is faltering, with economic uncertainties weighing heavily on travel demand. Hotel operators have downgraded their growth forecasts, highlighting a shift in consumer sentiment. The conversation underscores the complexities beyond tariffs, suggesting that job market weaknesses and stagnant incomes are pivotal to understanding the current recession signs.
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Consumer Spending Disappoints Post-Tariffs
- Hotel and airline sectors initially expected a quick consumer spending rebound after tariff issues settled.
- However, ongoing data shows a continuing consumer downturn and deflation, contradicting expectations.
Discretionary Spending Weighs on Hotels
- Hotel operators cut 2025 revenue growth forecasts citing consumer caution on discretionary spending.
- This caution stems more from weak jobs and incomes rather than tariff fears alone.
Wyndham CEO Hints at Downturn
- Wyndham CEO Jeff Bellotti reassured investors about performance during downturns without explicitly admitting a recession.
- His comments implied an expected economic slowdown despite public optimism for a short-lived uncertainty.