Macroeconomic indicators improved modestly in January, with inflation falling to 2.4% and unemployment edging down to 4.3%. Job growth remained solid, though downward revisions to 2025 data point to slower overall employment expansion.
Consumer travel sentiment remains largely unchanged from prior months. California residents continue to align more closely with U.S. sentiment, rather than trending more positive as in the past.
California had a strong start to the year in hotel performance, outperforming the U.S. overall. ADR drove growth, pushing statewide hotel revenue up nearly 3% with strong group demand.
International airlift to California grew modestly in January, though arrivals from priority markets declined 9.1%. Canada and Europe softened, while Mexico stood out with 18.8% growth.
Source: Visit California and third-party data sets