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CAVA started the year off strong with double-digit traffic increases between January and April 2025, but growth slowed down slightly towards the end of H1. Still, the chain capped off the quarter with a 8.7% YoY overall boost in visits in Q2 2025 while visits per location held essentially steady at -1.0% – suggesting that CAVA's expansion is not cannibalizing traffic from its existing venues.
Sweetgreen experienced similar traffic patterns, with overall visits up 8.6% YoY in Q2 2025 and a visit gap of 3.1% – a somewhat larger dip than CAVA's visits per location decline, though still a manageable figure for a brand in a heavy expansion phase.
While CAVA and sweetgreen share a lot of similarities, analyzing the YoY change in Q2 2025 visits by DMA highlights their different expansion philosophies. CAVA's strategy seems focused on market depth, where entry into new markets is part of a broader strategy of establishing and strengthening regional clusters. In contrast, sweetgreen's approach seems to prioritize nationwide breadth – a strategy underscored by its plans to enter three distinct geographically separate markets in 2025.
The map reflects the impact of these distinct strategies: In Q2 2025, CAVA's YoY visit growth is mostly concentrated in distinct geographic clusters, while sweetgreen's gains are more geographically dispersed across the country's major metropolitan areas.
The Q2 2025 visit growth of CAVA and sweetgreen demonstrates that multiple viable paths exist for scaling a premium fast-casual brand. While both approaches are currently driving significant overall growth, the crucial test ahead will be which strategy can better maintain store-level profitability and brand loyalty as they continue to scale.
For more data-driven dining insights, visit placer.ai/anchor
Quick-service restaurants (QSRs) have had to work hard to stay competitive in 2025, contending with inflationary pressures, cautious consumer spending, and a wave of value-focused dining alternatives.
So with the year now more than halfway through, we analyzed location analytics for leading QSR players Yum! Brands, RBI, and Wendy’s to see which chains defied expectations in Q2 2025 – and how they managed to remain ahead of the curve.
Rising costs and growing competition have eroded fast food’s once-formidable value advantage. Convenience and grocery stores now offer more substantial dining options, giving budget-conscious consumers more reasons to look beyond traditional QSRs. Meanwhile, fast-casual brands and even some full-service restaurants (like Chili’s) have introduced more elevated dining experiences at price points close to fast-food levels.
Despite these challenges, Yum! Brands and RBI have remained resilient. Yum! Brands posted modest year-over-year (YoY) traffic growth in Q2 2025 – while RBI, whose domestic footprint contracted somewhat, saw a narrowing YoY visit gap. But both chains maintained average visits per location near last year’s levels, underscoring their ability to navigate a persistently tough environment.
What’s behind RBI’s narrowing visit gap?
Popeyes emerged as a bright spot in Q2 2025, with overall foot traffic rising by 0.6% despite a reduced domestic store count – and average visits per location climbing 2.2%. This marks a notable improvement from Q1, when traffic was down 3.2%. The chicken chain’s blend of innovation and value – from new chicken wing flavors in late 2024 and early 2025 to limited-time offers (LTOs) like the $6 Big Box – appears to be winning over diners.
Burger King, RBI’s most-visited chain, also contributed to the company’s improved traffic. The brand narrowed its YoY visit gap from 3.4% in Q1 to 2.1% in Q2, thanks in part to expanded value deals and timely tie-ins such as a How to Train Your Dragon-themed meal. Meanwhile, average visits per location at Burger King nearly matched 2024 levels, with the gap shrinking from 2.0% in Q1 to 0.2% in Q2.
Yum! Brands’ primary growth engine has been Taco Bell – by far the company’s largest U.S. banner. By frequently introducing new menu items while keeping an eye on affordability – through offerings like the expanded Luxe Cravings Box – Taco Bell has sustained its reputation as a top-value treat. And building on a strong Q1, the Mexican QSR giant saw overall foot traffic climb by 2.6% YoY in Q2, with average visits per location growing by 1.5% YoY.
Elsewhere in Yum!’s portfolio, KFC and Pizza Hut posted YoY visit gaps in Q2. Still, the two brands’ average-visit-per-location gaps remained modest, indicating that consumer demand remains healthy at existing stores despite some closures.
Wendy’s is another QSR relying on value deals and menu expansions to weather the sector’s choppy waters. After two years of steady YoY same-store sales growth in the U.S., Wendy’s recorded a 2.8% comp sales decline in Q1 2025, mirrored by a 3.4% dip in average visits per location.
But Wendy’s isn’t sitting still. In March, it updated its Frostys menu, followed in April by a crowd-pleasing Cajun Crunch Spicy Chicken Sandwich. Alongside its existing value menu, Wendy’s is also leveraging special promotions this summer – from free Frostys on July 20th (National Ice Cream Day) and free fries every “Fryday” to an upcoming “Meal of Misfortune” tied to the latest season of Netflix’s Wednesday. And though visits in Q2 2025 still trailed 2024 levels, Wendy’s consistently narrowing visit gap points to a potentially brighter outlook as the year progresses.
To succeed in 2025, QSRs must excel at both menu innovation and value – no easy feat – giving today’s savvy and budget-conscious consumers a compelling reason to spend. And though 2025 promises more headwinds, chains that effectively strike this balance may be well-positioned to thrive.
Follow Placer.ai/anchor for more data-driven dining insights.
Kohl’s emergence as a hot new meme stock wasn’t on anyone’s bingo card for 2025. The retailer has grappled with declining sales and ongoing leadership challenges, driving a steep drop in its share price over the past several years. But beyond the internet buzz, is there any real reason for optimism about Kohl’s outlook?
Despite recent setbacks, Kohl’s surprised investors in Q1 2025 with a smaller-than-expected 3.9% year-over-year (YoY) drop in comparable sales – fueling speculation that a turnaround might be in the works. The company’s foot traffic gap also narrowed to just 2.7% YoY in Q1, a notable improvement from the 6.0% gap in Q4 2024. In Q2 2025, too, Kohl’s visit-per-location gap remained relatively modest at 3.1%. But monthly YoY data showed substantial volatility, with June experiencing a sharp decline while March through May visits per location held close to last year’s levels.
All in all, Kohl’s clearly has a long way to go to reclaim its former glory – and it’s too soon to tell whether a comeback is indeed in the cards. But with the right strategy, the data does point to some underlying strength that may help the company regain its footing – meme stock or not.
For more data-driven retail analyses, follow Placer.ai/anchor.
Pharmacies have weathered a challenging landscape in recent years, marked by shrinking drug margins, rising costs, and heightened competition from online retailers. Major industry leaders have had to rethink their strategies in response.
So with CVS Health set to report earnings later this month, we dove into the data to see how visits to the company’s eponymous pharmacy chain fared in Q2 2025. How have CVS’s rightsizing and optimization efforts impacted visitation? And what can location analytics reveal about some of the strategies that may drive further growth for the chain?
We dove into the data to find out.
CVS Pharmacy began 2025 on a high note. Despite hundreds of recent store closures, the chain posted steady year-over-year (YoY) visit growth throughout the first half of 2025, with only February seeing a slight dip due to the leap-year comparison.
In the first quarter of the year, CVS Health’s Pharmacy and Consumer Wellness segment reported an 11.1% jump in revenue – driven in part by a 6.7% rise in same-store prescription volume. This growth was reflected in the chain’s solid Q1 visit numbers – a momentum sustained into Q2 2025, when overall foot traffic rose 2.2% YoY and average visits per location saw an even more impressive 5.0% increase.
CVS's strong visit numbers appear to underscore the success of its rightsizing efforts, which have largely focused on optimizing the pharmacy and healthcare side of the business. In addition to closing hundreds of stores, CVS plans to open several smaller-format, pharmacy-first locations – as well as featuring limited over-the-counter offerings. The drugstore leader is also set to absorb prescription files from 625 closing Rite Aid locations, in addition to acquiring 64 of its physical stores.
CVS's pharmacy-focused strategy comes amid softening demand for its front store business – including items like cosmetics, candy, greeting cards, and other over-the-counter products – which saw a 2.4% revenue decline in Q1 2025. Yet location analytics show that these non-medical offerings remain an important traffic driver for CVS – especially during key retail milestones.
In the first half of 2025, for example, Valentine’s Day (February 14th) was CVS's busiest day of the year to date, registering a 39.2% surge in visits compared to the chain’s year-to-date (YTD) daily average and a 26.3% boost compared to an average Friday. Other holidays, including Mother’s Day and Father’s Day, sparked smaller but still significant upticks, as shoppers stopped by for gifts and cards.
CVS’s 2025 visit numbers suggest the chain is adeptly navigating pharmacy’s choppy waters – staying nimble and capitalizing on opportunities as they arise. Will the pharmacy leader continue to thrive in the months ahead?
Follow Placer.ai/anchor to find out.
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In my last column for The Anchor, I debuted a new quarterly series, entitled “All The Things I Think I Think About Retail Over The Last Quarter.”
Well, another quarter has come and gone, so that means it is time to dust off the shelves and scorecard past predictions as well as to signal what is most top of mind at present.
So, first, the scorecard. Loyal readers of my first column will remember these predictions:
It has only been three months since I put a stake in the ground on all of them, but on the “Nailed It/Too Early To Tell/Dead Wrong” scale, I am feeling pretty darn good about most of the above.
It is way too early to tell on Macy’s, Bloomie’s, and Wayfair. Same goes for Sam’s Club and Sprouts. And, as much as I would like to take a victory lap on these last two especially, the proof will be in the pudding much more down the road. Though I still am feeling like all six will break my way soon.
Finally, I would be remiss if I didn’t mention Kohl’s. Kohl’s is such a dumpster fire (meme stock, anyone?) that the very same above prediction is also likely in play for whomever gets chosen as Ashley Buchanan’s ultimate successor.
All of which leads me to…
Over the last quarter, Costco and Target have been a tale of two retailers. One stood strong on DEI, while the other kowtowed to public pressure. Both companies stated their contrasting positions publicly this past January, and the traffic results speak for themselves..
Costco has emerged unscathed, as predicted, while Target now faces concerns that it could become the next Kmart or Sears (and for a whole host of reasons beyond DEI).
The biggest takeaway for me, however?
No matter your personal opinions on DEI, the most important thing retail executives have to ask themselves is, “What matters most to our brand?”
Target and Brian Cornell forgot this one important question. They didn’t do their homework, and thereby took their fingers off the pulse of the Target customer, and clearly the customer has been voting with his or her feet.
It will likely take a regime change with a clear stated purpose to get them back.
I missed on Starbucks, and, frankly, I am kind of pissed about it. I was thrilled when Starbucks’ new CEO Brian Niccol announced his intentions to enliven the in-store Starbucks experience. His promise of “4 Minutes or Less” wait times and his introduction of ceramic mugs had me at Frappuccino.
But then something interesting happened on the way to the coffee roaster.
First, few, if any, baristas have ever offered me a ceramic mug at checkout. Plus, the experience of drinking my coffee in said ceramic mug actually adds more friction to the overall Starbucks’ experience because you still have to go back and wait in line to take your coffee to go.
Second, the wait time promise has also fallen flat. When Niccol first made the announcement, I would go into Starbucks, order at the counter, track the wait time on my phone, and, without fail, get served my coffee in under four minutes. I even proudly shared my improved wait time experiences on social media.
I bought into Brian Niccol’s java-flavored Kool-Aid hook, line, and sinker, but, as much it pains me to admit it, I also forgot one important axiom of retailing – never judge anything out-of-the-gate (which, side note, is also why, in contrast, I have not jumped on the Richard Dickson at Gap Inc. bandwagon yet, too).
Any initial promise for Starbucks in Q1 was quickly overshadowed by Starbucks’ Q2 results. Starbucks same-store sales fell for the fifth straight quarter, with U.S. same-store sales down 2%.
Shame on me. I should have known better.
When running stores, it is easy to get store teams behind anything for a short period of time. I simply made the call too early and now worry the pendulum may be swinging back entirely. Part and parcel, people appear to be spending less time, not more time, in Starbucks since the regime change, which doesn’t bode well.
Any Kool-Aid drinking, whether it be for Niccol, for Dickson, or, as Target CEO Brian Cornell has received during his tenure, should always be reserved until one is sure that results are sustainable.
For more data-driven retail insights, visit placer.ai/anchor
The coffee space has become increasingly competitive in recent years. And while traffic to the segment is up, the growth of small and medium sized chains may be coming at the expense of Starbucks. Visits to the reigning coffee giant were down slightly (0.1%) YoY in Q2 2025 while average visits per location declined 4.2% in the same period.
Still, these trends mark an improvement compared to last quarter, when YoY visits and average visits per venue were down 0.9% and 5.4%, respectively – suggesting that the company's "Back to Starbucks" strategy and recent menu innovations are beginning to drive a turnaround.
Meanwhile, Dunkin' – the second-largest coffee chain in the country – is seeing modest growth, with overall visits and average visits per venue up 1.7% and 0.3% YoY, respectively, in Q2 2025. Like Starbucks, Dunkin' showed improvement in Q2 2025 compared to Q1 2025 – perhaps an early sign of strengthening consumer confidence.
But while broader market forces may have helped, Dunkin's Q2 2025 turnaround may also be attributed to the chain's promotional efforts – including a new ad campaign to promote the chain's $6 Meal Deals. As value continues to drive consumer decision-making, Dunkin's emphasis on affordable bundles positions it well to maintain its visit share despite the growing competition in the space.
Dutch Bros, one of the fastest growing coffee brands in recent years, maintained its momentum in Q2 2025, as coffee chains betting on small-format, largely drive-thru locations – including 7Brew, PJ's Coffee, Biggby, and Foxtail – continue to resonate with consumers.
Overall visits to the Oregon-based chain grew 13.8% YoY alongside a 0.8% increase in average visits per venue – indicating that the chain's ongoing expansion is not cannibalizing traffic from existing venues. This bodes well for the brand as it continues its aggressive expansion – 2,029 stores by 2029.
As we look to the second half of 2025, the coffee sector will be characterized by the distinct strategies of its key players. Dutch Bros' aggressive expansion will continue to challenge the incumbents on a local level, while Dunkin's focus on value will likely remain a key advantage with budget-conscious consumers. The ultimate test will be for Starbucks, as the industry leader's ability to translate its strategic innovations into sustained visit growth will determine its capacity to defend its market share.
For more data-driven dining insights, visit placer.ai/anchor.
The first Lollapalooza – a four-day music festival – took place in 1991. Chicago’s Grant Park became the event’s permanent home (at least in the United States) in 2005, drawing thousands of revelers and music fans to the park each year.
This year, the festival once again demonstrated its powerful impact on the city. On August 1st, 2024, visits to Grant Park surged by 1,313.2% relative to the YTD daily average, as crowds converged on the park to see Chappell Roan’s much-anticipated performance. And during the first three days of the event, the event drew significantly more foot traffic than in 2023 – with visits up 18.9% to 35.9% compared to the first three days of last year’s festival (August 3rd to 5th, 2023).
Lollapalooza led to a dramatic spike in visits to Grant Park – and it also attracted a different type of visitor compared to the rest of the year.
Analyzing Grant Park’s captured market with Spatial.ai’s PersonaLive dataset reveals that Lollapalooza attendees are more likely to belong to the “Young Professionals” and “Ultra Wealthy Families” segment groups than the typical Grant Park visitor.
By contrast, the “Near-Urban Diverse Families” segment group, comprising middle-class diverse families living in or near cities, made up only 6.5% of visitors during the festival, compared to 12.0% during the rest of the year.
Additionally, visitors during Lollapalooza came from areas with higher HHIs than both the nationwide baseline of $76.1K and the average for park visitors throughout the year. Understanding the demographic profile of visitors to the park during Lollapalooza can help planners and city officials tailor future events to these segment groups – or look for ways to make the festival accessible to a wider range of music lovers.
Lollapalooza’s impact on Chicago extended beyond the boundaries of Grant Park, with nearby hotels seeing remarkable surges in foot traffic. The Congress Plaza Hotel on South Michigan Avenue witnessed a staggering 249.1% rise in visits during the week of July 29, 2024, compared to the YTD visit average. And Travelodge on East Harrison Street saw an impressive 181.8% increase. These spikes reflect the festival’s draw not just for locals but for out-of-town visitors who fill hotels across the city.
The North Michigan Avenue retail corridor also enjoyed a significant increase in foot traffic during the festival, with visits on Thursday, August 1st 56.0% higher than the YTD Thursday visit average. On Friday, August 2nd, visits to the corridor were 55.7% higher than the Friday visit average. These numbers highlight Lollapalooza’s role in driving economic activity across Chicago, as festival-goers venture beyond the park to explore the city’s vibrant retail and hospitality offerings.
City parks often serve as community hubs, and Flushing Meadows Corona Park in Queens, NY, has been a major gathering point for New Yorkers. The park hosted one of New York’s most beloved summer concerts – Governors Ball – which moved from Governors Island to Flushing Meadows in 2023.
During the festival (June 9th -11th, 2024), musicians like Post Malone and The Killers drew massive crowds to the park, with visits soaring to the highest levels seen all year. On June 9th, the opening day of the festival, foot traffic in the park was up 214.8% compared to the YTD daily average, and at its height, on June 8th, the festival drew 392.7% more visits than the YTD average.
The park also hosted other big events this summer – a July 21st set by DMC helped boost visits to 185.1% above the YTD average. And the Hong Kong Dragon Boat Festival on August 3rd and 4th led to major visit boosts of 221.4% and 51.6%, respectively.
These events not only draw large crowds, but also highlight the park’s role as a space where cultural and civic life can find expression, flourish, and contribute to the health of local communities.
Analyzing changes in Flushing Meadows Corona Park’s trade area size offers insight into how far people are willing to travel for these events. During Governors Ball, for example, the park’s trade area ballooned to 254.5 square miles, showing the festival's wide appeal. On July 20th, by contrast, when the park hosted several local bands and DJs, the trade area was a much more modest 57.0 square miles.
Summer events drive community engagement, economic activity, and civic pride. Cities that invest in their parks and event hubs, fostering lively and inclusive spaces, can create lasting value for both residents and visitors, enriching the cultural and social life of urban areas.
For more data-driven civic stories, visit Placer.ai.
The pandemic and economic headwinds that marked the past few years presented the multi-billion dollar hotel industry with significant challenges. But five years later, the industry is rallying – and some hotel segments are showing significant growth.
This white paper delves into location analytics across six major hotel categories – Luxury Hotels, Upper Upscale Hotels, Upscale Hotels, Upper Midscale Hotels, Midscale Hotels, and Economy Hotels – to explore the current state of the American hospitality market. The report examines changes in guest behavior, personas, and characteristics and looks at factors driving current visitation trends.
Overall, visits to hotels were 4.3% lower in Q2 2024 than in Q2 2019 (pre-pandemic). But this metric only tells part of the story. A deeper dive into the data shows that each hotel tier has been on a more nuanced recovery trajectory.
Economy chains – those offering the most basic accommodations at the lowest prices – saw visits down 24.6% in Q2 2024 compared to pre-pandemic – likely due in part to hotel closures that have plagued the tier in recent years. Though these chains were initially less impacted by the pandemic, they were dealt a significant blow by inflation – and have seen visits decline over the past three years. As hotels that cater to the most price-sensitive guests, these chains are particularly vulnerable to rising costs, and the first to suffer when consumer confidence takes a hit.
Luxury Hotels, on the other hand, have seen accelerated visit growth over the past year – and have succeeded in closing their pre-pandemic visit gap. Upscale chains, too, saw Q2 2024 visits on par with Q2 2019 levels. As tiers that serve wealthier guests with more disposable income, Luxury and Upscale Hotels are continuing to thrive in the face of headwinds.
But it is the Upper Midscale level – a tier that includes brands like Trademark Collection by Wyndham, Fairfield by Marriott, Holiday Inn Express by IHG Hotels & Resorts, and Hampton by Hilton – that has experienced the most robust visit growth compared to pre-pandemic. In Q2 2024, Upper Midscale Hotels drew 3.5% more visits than in Q2 2019. And during last year’s peak season (Q3 2023), Upper Midscale hotels saw the biggest visit boost of any analyzed tier.
As mid-range hotels that still offer a broad range of amenities, Upper Midscale chains strike a balance between indulgence and affordability. And perhaps unsurprisingly, hotel operators have been investing in this tier: In Q4 2023, Upper Midscale Hotels had the highest project count of any tier in the U.S. hotel construction and renovation pipeline.
The shift in favor of Upper Midscale Hotels and away from Economy chains is also evident when analyzing changes in relative visit share among the six hotel categories.
Upper Midscale hotels have always been major players: In H1 2019 they drew 28.7% of overall hotel visits – the most of any tier. But by H1 2024, their share of visits increased to 31.2%. Upscale Hotels – the second-largest tier – also saw their visit share increase, from 24.8% to 26.1%.
Meanwhile, Economy, Midscale, and Upper Upscale Hotels saw drops in visit share – with Economy chains, unsurprisingly, seeing the biggest decline. Luxury Hotels, for their parts, held firmly onto their piece of the pie, drawing 2.8% of visits in H1 2024.
Who are the visitors fueling the Upper Midscale visit revival? This next section explores shifts in visitor demographics to four Upper Midscale chains that are outperforming pre-pandemic visit levels: Trademark Collection by Wyndham, Holiday Inn Express by IHG Hotels & Resorts, Fairfield by Marriott, and Hampton by Hilton.
Analyzing the captured markets* of the four chains with demographics from STI: Popstats (2023) shows variance in the relative affluence of their visitor bases.
Fairfield by Marriott drew visitors from areas with a median household income (HHI) of $84.0K in H1 2024, well above the nationwide average of $76.1K. Hampton by Hilton and Trademark Collection by Wyndham, for their parts, drew guests from areas with respective HHIs of $79.6K and $78.5K – just above the nationwide average. Meanwhile, Holiday Inn Express by IHG Hotels & Resorts drew visitors from areas below the nationwide average.
But all four brands saw increases in the median HHIs of their captured markets over the past five years. This provides a further indication that it is wealthier consumers – those who have had to cut back less in the face of inflation – who are driving hotel recovery in 2024.
(*A chain’s captured market is obtained by weighting each Census Block Group (CBG) in its trade area according to the CBG’s share of visits to the chain – and so reflects the population that actually visits the chain in practice.)
Much of the Upper Midscale visit growth is being driven by chain expansion. But in some areas of the country, the average number of visits to individual hotel locations is also on the rise – highlighting especially robust growth potential.
Analyzing visits to existing Upper Midscale chains in four metropolitan areas with booming tourism industries – Salt Lake City, UT, Palm Bay, FL, San Diego, CA, and Richmond, VA – shows that these markets feature robust untapped demand.
Utah, for example, has emerged as a tourist hotspot in recent years – with millions of visitors flocking each year to local destinations like Salt Lake City to see the sights and take in the great outdoors. And Upper Midscale hotels in the region are reaping the benefits. In H1 2024, the overall number of visits to Upper Midscale chains in Salt Lake City was 69.4% higher than in H1 2019. Though some of this increase can be attributed to local chain expansion, the average number of visits to each individual Upper Midscale location in the area also rose by 12.5% over the same period.
Palm Bay, FL (the Space Coast) – another tourist favorite – is experiencing a similar trend. Between H1 2019 and H1 2024, overall visits to local Upper Midscale hotel chains grew by 36.4% – while the average number of visits per location increased a substantial 16.9%. Given this strong demand, it may come as no surprise that the area is undergoing a hotel construction boom. Upper Midscale hotels in other areas with flourishing tourism sectors, like San Diego, CA and Richmond, VA, are seeing similar trends, with increases in both overall visits and and in the average number of visits per location.
Though Economy chains have underperformed versus other categories in recent years, the tier does feature some bright spots. Some extended-stay brands in the Economy tier – hotels with perks and amenities that cater to the needs of longer-stay travelers – are succeeding despite category headwinds.
Choice Hotels’ portfolio, for example, includes WoodSpring Suites, an Economy chain offering affordable extended-stay accommodations in 35 states. In H1 2024, the chain drew 7.7% more visits than in the first half of 2019 – even as the wider Economy sector continued to languish. InTown Suites, another Economy extended stay chain, saw visits increase by 8.9% over the same period.
And location intelligence shows that the success of these two chains is likely being driven, in part, by their growing appeal to young, well-educated professionals. In H1 2019, households belonging to Spatial.ai: PersonaLive’s “Young Professionals” segment made up 9.6% of WoodSpring Suites’ captured market. But by H1 2024, the share of this group jumped dramatically to 13.3%. At the same time, InTown Suites saw its share of Young Professionals increase from 12.0% to 13.4%.
Whether due to an affinity for prolonged “workcations” (so-called “bleisure” excursions) or an embrace of super-commuting, younger guests have emerged as key drivers of growth for the extended stay segment. And by offering low–cost accommodations that meet the needs of these travelers, Economy chains can continue to grow their share of the pie.
The hospitality industry recovery continues – led by Upper Midscale Hotels, which offer elevated experiences that don’t break the bank. But today’s market has room for other tiers as well. By keeping abreast of local visitation patterns and changing consumer profiles, hotels across chain scales can personalize the visitor experience and drive customer satisfaction.
The past few years have provided the tourism sector with a multitude of headwinds, from pandemic-induced lockdowns to persistent inflation and a rise in extreme weather events. But despite these challenges, people are more excited than ever to travel – more than half of respondents to a recent survey are planning on increasing their travel budgets in the coming months.
And while revenge travel to overseas destinations is still very much alive and well, the often high costs associated with traveling abroad are shaping the way people choose to travel. Domestic travel and tourism are seeing significant growth as more affordable alternatives.
This white paper takes a closer look at two of the most popular domestic tourism destinations in the country – New York City and Los Angeles. Over the past year, both cities have continued to be leading tourism hotspots, offering a wealth of attractions for visitors. What does tourism to these two cities look like in 2024, and what has changed since before the pandemic? How have inflation and rising airfare prices affected the demographics and psychographics of visitors to these major hubs?
Analyzing the distribution of domestic tourists across CBSAs nationwide from May 2023 to April 2024 reveals New York and Los Angeles to be two of the nation’s most popular destinations. (Tourists include overnight visitors staying in a given CBSA for up to 31 days).
The New York-Newark-Jersey City, NY-NJ-PA metro area drew the largest share of domestic tourists of any CBSA during the analyzed period (2.7%), followed closely by the Los Angeles-Long Beach-Anaheim, CA CBSA (2.5%). Other domestic tourism hotspots included Orlando-Kissimmee-Sanford, FL (tied for second place with 2.5% of visitors), Dallas-Fort Worth-Arlington, TX (1.9%), Las Vegas-Henderson-Paradise, NV (1.8%), Miami-Fort Lauderdale-Pompano Beach, FL (1.8%), and Chicago-Naperville, Elgin, IL-IN-WI (1.6%).
The Big Apple. The City That Never Sleeps. Empire City. Whatever it’s called, New York City remains one of the most well-known tourist destinations in the world. And for many Americans, New York is the perfect place for an extended weekend getaway – or for a multi-day excursion to see the sights.
But where do these NYC-bound vacationers come from? Diving into the data on the origin of visitors making medium-length trips to New York City (three to seven nights) reveals that increasingly, these domestic tourists are coming from nearby metro areas.
Between 2018-2019 and 2023-2024, for example, the number of tourists visiting New York City from the Philadelphia metro area increased by 19.2%.
The number of tourists coming from the Boston and Washington, D.C metro areas, and from the New York CBSA itself (New York-Newark-Jersey City, NY-NJ-PA) also increased over the same period.
Meanwhile, further-away CBSAs like San Francisco-Oakland-Berkeley, CA, Atlanta-Sandy Springs-Alpharetta, GA, and Miami-Fort Lauderdale-Pompano Beach, FL fed fewer tourists to NYC in 2023-2024 than they did pre-pandemic. It seems that residents of these more distant metro areas are opting for vacation destinations closer to home to avoid the high costs of air travel.
Diving even deeper into the characteristics of visitors taking medium-length trips to New York City reveals another demographic shift: Tourists staying between three and seven nights in the Big Apple are skewing younger.
Between 2018-2019 and 2023-2024, the share of visitors to New York City from areas with median ages under 30 grew from 2.1% to 4.5%. Meanwhile, the share of visitors from areas with median ages between 31 and 40 increased from 34.3% to 37.7%.
The impact of this trend is already being felt in the Big Apple, with The Broadway League reporting that the average age of audiences to its shows during the 2022- 2023 season was the youngest it had been in 20 seasons.
The shift towards younger tourists can also be seen when examining the psychographic makeup of visitors to popular attractions in New York City. Analyzing the captured markets of major NYC landmarks with data from Spatial.ai’s PersonaLive dataset reveals an increase in households belonging to the “Educated Urbanites” segment between 2018-2019 and 2023-2024.
These well-educated, young singles are increasingly visiting iconic NYC venues such as the Whitney Museum of American Art, The Metropolitan Museum of Art, The American Museum of Natural History, and the Statue of Liberty. This shift highlights the growing popularity of these attractions among young, educated singles, reflecting a broader trend of increased domestic tourism among this demographic.
New York City’s tourism sector is adapting to meet the changing needs of travelers, fueled increasingly by younger visitors who may be unable to take a costly international vacation. How have travel patterns to Los Angeles changed in response to increasing travel costs?
While New York City is the East Coast’s tourism hotspot, Los Angeles takes center stage on the West Coast. And as overseas travel has become increasingly out of reach for Americans with less discretionary income, the share of domestic tourists originating from areas with lower HHIs has risen.
Before the pandemic, 57.6% of visitors to LA came from affluent areas with median household incomes (HHIs) of over $90K/year. But by 2023-2024, this share decreased to 50.7%. Over the same period, the share of visitors from areas with median HHIs between $41K and $60K increased from 9.7% to 12.5%, while the share of visitors from areas with HHIs between $61K and $90K rose from 32.1% to 35.8%.
Diving into the psychographic makeup of visitors to popular Los Angeles attractions – Universal Studios Hollywood, Disneyland California, the Santa Monica Pier, and Griffith Observatory – also reflects the above-mentioned shift in HHI. The captured markets of these attractions had higher shares of middle-income households belonging to the “Family Union” psychographic segment in 2023-2024 than in 2018-2019.
Experian: Mosaic defines this segment as “middle income, middle-aged families living in homes supported by solid blue-collar occupations.” Pre-pandemic, 16.0% of visitors to Universal Studios Hollywood came from trade areas with high shares of “Family Union” households. This number jumped to 18.8% over the past year. A similar trend occurred at Disneyland, Santa Monica Pier, and Griffith Observatory.
And like in New York City, growing numbers of visitors to Los Angeles appear to be coming from nearby areas. Between 2018-2019 and 2023-2024, the share of in-state visitors to major Los Angeles attractions increased substantially – as people likely sought to cut costs by keeping things local.
Pre-pandemic, for example, 68.9% of visitors to Universal Studios Hollywood came from within California – a share that increased to 72.0% over the past year. Similarly, 59.7% of Griffith Observatory visitors in 2018-2019 came from within the state – and by 2023-2024, that number grew to 64.7%.
Even when times are tight, people love to travel – and New York and Los Angeles are two of their favorite destinations. With prices for airfare, hotels, and dining out increasing across the board, younger and more price-conscious households are adapting, choosing to visit nearby cities and enjoy attractions closer to home. And as the tourism industry continues its recovery, understanding emerging visitation trends can help stakeholders meet travelers where they are.
