High gas prices are squeezing experience spending on travel and dining

• When pandemic-related restrictions lifted, people were ready to spend on experiences at any cost.
• That ‘revenge spending’ on travel and leisure has been carrying the economy.
• Now, data show high gas prices is taking a toll on services spending, which may hurt the economy..

“Revenge spending” – spending on experiences such as travel and restaurants despite the cost to make up for time lost during the pandemic – is showing signs of buckling as inflation pressures settle in, new data suggest. 

Last month, as the national average for a gallon of regular unleaded gasoline reached a record high of $5.016, Bank of America saw in its monthly debit and credit card data the first decline in consumer spending on travel and restaurants since January. January was the peak of the omicron wave.