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Travel companies rein in their forecasts as US consumers cut spending

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• Lower-income earners delay vacations as savings dwindle, economic outlook uncertain
• Hilton, Marriott see minimal leisure travel growth; international revenue offsets U.S. demand
• Airbnb and Booking Holdings report slowing U.S. growth, last-minute bookings increase

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Russians are spending big on travel and cognac. But the boom is just one 'last growth spurt,' says an analyst.

• Russia's consumer sentiment hit a high in June as its wartime economy boosted spending.
• The sentiment index has risen since April 2022, despite the Ukraine invasion.
• Russia's economy grew 4% in the second quarter of the year. Economists expect this to slow.

Russian consumers are spending large and feeling big about their finances.

In June, Russia's consumer sentiment hit a high not seen since the 2000s, according to Levada Center, Russia's last major independent pollster.

Levada's consumer sentiment index has been moving steadily upward since April 2022, barely two months after Russia invaded Ukraine on February 24, 2022.

Despite sweeping sanctions, Russia's economy has appeared resilient due to growth generated by driven by wartime state spending on military activities and subsidies.

This growth is majorly boosting incomes in Russia amid a severe labor crunch partly due to its shrinking population.

Russian consumers are on a spending spree

Russia's GDP grew 4% in the second quarter of this year from a year ago. It's a slowdown from the 5.4% growth logged in the first quarter, but it's still robust growth. In contrast, the US economy grew 2.8% in the second quarter of this year.

Russia's booming economy has boosted consumer spending, in particular on culture, hotels, transportation services, and personal services, according to a Financial Times analysis of official data last month.

According to the FT, consumption per capita  in Russia   increased by more than 20% from 2021 to 2023. In particular, spending on travel surged more than 90% thanks to a boost from domestic tourism.

Last year, Russia's imports of cognac and sparkling wine surged 18% and 80% from 2019, respectively, according to an estimate from the Economist media outlet.

Broadly, "consumption is booming due to a combination of massive budget spending and labor force shortages leading to strong wage pressures," Bartosz Sawicki, a market analyst at the fintech Conotoxia, wrote in a note last month.

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Economic growth could halve in the second half of 2024

The good times are unlikely to last.

Economists polled by Bloomberg expect growth to slow to about 2% over the second half of the year.

The current boom is "a last growth spurt before Russia's economy starts to markedly cool," said Alex Isakov, an economist covering Russia at Bloomberg Economics.

Russia's central bank recently hiked rates to 18% in an attempt to cool inflation as the economy sees "considerable" overheating.

Such high rates mean consumer spending, too, could cool.

"'Civilian' industries are unlikely to be in a good place to serve as a substitute driver for growth as more consumers face the reality of borrowing at 20% rates or above," said Isakov.

Watch: Invading Ukraine is making Russia rich

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Is a Disney Theme Park Vacation Still Worth the Price?

As Disney has raised the cost of tickets and hotel rooms at its theme parks, and added pricey, difficult-to-navigate tools, even its most loyal fans are asking themselves if they should rethink their vacations.

By Tariro Mzezewa

Earlier this year, Jake Williams, a filmmaker and content creator in Toronto, made his long-awaited return to one of his favorite places on earth: Walt Disney World in Orlando, Fla. After traveling to Disney World and Disneyland multiple times a year since childhood and becoming an annual pass holder as an adult, Mr. Williams hadn’t been to a Disney park since 2019.

“As someone who went all the time, it’s crazy to me that I hadn’t gone to a Disney park in that long,” he said in a phone interview. “It’s a special place. ”

Before his trip, Mr. Williams heard about some changes at Disney World, but he didn’t anticipate how different things would be, starting at the airport. Since his last visit, the company had gotten rid of the Magical Express, a free bus that for more than 15 years shuttled people from Orlando International Airport to their Disney resorts. Guests must now take a shuttle that costs between $23 and $30 per adult each way, depending on the time of year, use a ride share service or rent a car.

To Disney-goers, the end of the Magical Express speaks to a larger issue: The cost of being at the happiest place on earth is going up while the perks are going away. As the company has raised the price of tickets and hotel rooms, and added costly, difficult-to-navigate tools to book rides as replacements for previously free products, even its most loyal fans are asking themselves if it’s still worth it.

Mr. Williams said that a day in the Orlando parks and a one-night stay at Disney’s Port Orleans Riverside Resort cost a “jaw-dropping” $886.34 for two adults. He decided to calculate how much the same trip cost in 2017 — a year when he visited the park several times. The cost: $567.90. Even accounting for inflation, he was stunned.

“It’s hard to justify going to Orlando rather than, like, Iceland,” he said. “When you have a budget like this, you can go a lot of places and see and do a lot of things. You could even do a Disney cruise for less than that.”

Epcot’s Italy, or Italy?

He’s not alone. Len Testa, president of Touring Plans , a site that helps travelers organize Disney trips, and a co-author of “The Unofficial Guides to Walt Disney World and Disneyland,” said that he increasingly hears from Disney lovers who are now planning other types of vacations.

“At some point a Disney vacation starts competing with ‘Let’s go see Europe’ and I think that’s what a lot of people are doing,” Mr. Testa said. “I’ve had a number of people in the last few years say, ‘We priced it out and we could take our children to eat pizza in the Italy pavilion in Epcot or for the same money we could actually go to Italy for two weeks. We’re going to go to Italy for two weeks.’”

For Mr. Testa, collecting data about Disney is a passion. In the late ’90s, as a graduate student in computer science he decided he wanted to build a computer program that could help people navigate Disney World as efficiently as possible. That research continued through his Ph.D and the program he created turned into Touring Plans. His team of developers and data scientists model what’s going on at Walt Disney World on a minute-by-minute basis every day. The data they’ve collected in recent years shows that the cost of a Disney World trip, on average, has gone up almost 25 percent since 2019. Seventy percent of that increase is for services that used to be free.

The prices of parking and entry tickets have consistently risen in recent years. In 2022 ticket prices went up two times. In 2023 annual passes saw a $30 to $50 increase, depending on the tier, while multiday tickets also went up. A one-day ticket to either of Disney’s U.S. parks now costs $109 for anyone over the age of 10.

One analysis concluded that between 2014 and 2025, the base price for tickets has gone up 32 percent and increased by 90 percent for the highest-priced tickets. In 2025 the base price for an adult one-day ticket will be $119 and the higher tickets will be $199. Hotel prices have also risen. The cheapest hotels at Disney World now cost an average of $187 per night, according to Disney Magic Guides , a resource for planning trips to the parks.

In an earnings call this week , Disney’s leaders acknowledged that they’ve seen a slowdown at the parks and that, because of the economy, lower-income visitors are financially stressed, while higher-income guests are traveling internationally. And Disney is not alone: Tickets for Universal Studios in Florida and in California often cost as much as Disney tickets. In July, Comcast said Universal’s revenue fell by 11 percent in the prior quarter, with visitors turning to cruises and international travel.

In an email, a spokeswoman for Disney said the company is always trying to offer guests an array of tickets and experiences. To the company, and its most loyal fans, she said, the value of the experiences is worth the price.

“We are purposeful about creating more ticket and hotel price points than ever before to provide guests a variety of opportunities to visit our parks,” she said, adding that “a visit to a Disney theme park is a 10- to 16-hour experience with attractions, entertainment and more.”

Apps overload

For many guests, price isn’t the only hurdle. Visitors now have to navigate several new apps and tools if they want the best chance at getting on the most popular rides. In the past, they could get a free FastPass, which allowed them to go to the front of a line for a ride. In 2021, Disney replaced the FastPass with a digital feature called Genie+ that park goers had to pay for and that was supposed to make booking rides more efficient. Instead, it caused so much confusion that content creators started making videos that showed viewers how to “hack” the tool.

To get the best out of Genie+ guests had to buy the app early in the morning ( avid park-goers recommended doing so at 6 a.m.) and then, at 7 a.m., they would book rides for the day. They could only book more rides after they’d completed their first activity or two hours after making their first reservation. And they couldn’t choose what time they wanted to get on a ride — Genie+ would do it for them. Mr. Testa said all of this led to “Disney complexity fatigue.”

“ God forbid on your vacation, you want to go back to your hotel and take a nap,” Mr. Testa said. Others said having to always be on their phones took away from the experience of being on vacation.

Disney heard the complaints. In July, Genie+ became Lightning Lane Multi Pass, which makes it possible for people to reserve rides ahead of time, instead of on the day they are in the park. The new system, which starts at $30 a day, is an attempt at mixing Genie+ and FastPass, but only those willing to pay extra can use all the features. The Disney spokeswoman said that so far, guests are “very pleased” with Lightning Lane Multi Pass. Reviews on social media show that it may be too soon to tell. On Reddit, reviewers lamented the different prices for Lightning Lane passes, with one person saying she “despised the process” of booking in the new system so much she felt like throwing her phone.

Jeremy Sonkin, a Chicago-based content creator who makes videos about theme parks, was at Disney World on the first day the new system was available. He said the new app is less confusing than Genie+, but it doesn’t feel like an upgrade.

“The idea and thought behind trying to bring back the ‘Fast Pass plus’ system is correct, but it’s not a level playing field and I can see this causing just as much, if not more, frustration from guests,” he said.

Greg Antonelle, the managing director of MickeyTravels , a travel agency that focuses on booking Disney trips, said his company is having a great year, with travelers looking to experience new rides like Tiana’s Bayou Adventure , which replaced the old Splash Mountain ride. He said that complaining about Disney is par for the course.

“We’ve been in business for 13 years and we’ve heard complaints about cost for 13 years,” Mr. Antonelle said. “It’s nothing new.”

Follow New York Times Travel on Instagram and sign up for our weekly Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2024 .

An earlier version of this article misstated the starting month of the Lightning Lane Multi Pass at Disney World. It started in July, not June.

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Tariro Mzezewa, a former national correspondent at The Times, is a reporter who writes about culture and style. More about Tariro Mzezewa

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