Commercial Pulse Report | 1-14-2025
Experian has just released the Commercial Pulse Report for January 14th, 2025 which includes a compelling look at the leisure and hospitality sector.
The Leisure & Hospitality sector has long been one of the hardest-hit industries following the COVID-19 pandemic. But in 2024, it demonstrated impressive resilience and recovery, with data from the latest report highlights several noteworthy trends that mark a turning point for this vital sector of the economy.
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Travel Reaches New Heights
Air travel soared to record-breaking levels in 2024, with the TSA screening over 903 million passengers—a 6.5% increase from pre-pandemic levels. This rise reflects not just pent-up travel demand but also growing consumer confidence in the safety and accessibility of travel.
Hotel occupancy rates, while recovering, still lag slightly behind pre-pandemic levels. Reduced corporate travel and the rise in remote work have contributed to this trend. However, leisure travel remains strong, and small businesses in the travel ecosystem are seeing the benefits.
Stabilizing Credit Activity and Improved Risk Scores
On the commercial credit side, there’s good news. Businesses in the Leisure & Hospitality subsectors have experienced a gradual increase in new account inquiries, and credit risk scores have steadily improved since late 2023. These metrics indicate a promising stabilization of credit activity.
Interestingly, the average number of commercial credit accounts per business continues to decrease. This could reflect cautious financial planning as businesses strive to balance growth with sustainable debt.
Consumer Trends Drive Growth
The affordability of travel is another major driver of the sector’s recovery. Inflation in the travel sector has trended lower than the broader economy, making vacations and leisure activities more accessible for many consumers. Despite financial pressures, such as a significant portion of Americans living paycheck-to-paycheck, this trend has supported a surge in travel demand.
Challenges Remain
While the outlook is positive, challenges persist. For example, delinquency rates within the sector fluctuate month to month, although no long-term trend of increased risk has been observed. The Hotel, RV, and Campground subsector, which bore the brunt of the pandemic’s impact, now boasts the lowest charge-off rate among Leisure & Hospitality categories—a testament to its steady recovery.
There’s a lot more on the leisure and hospitality study in this week’s report, so download your copy today!
Experian Commercial Pulse Report Explores Implications of Rising Premiums As the year draws to a close, one issue looms large for millions of small business owners: the rising cost of healthcare. According to the latest Experian Commercial Pulse Report, small business survival may soon hinge on a single factor — whether enhanced Affordable Care Act (ACA) subsidies are extended into 2026. Watch the Commercial Pulse Update The Clock Is Ticking on ACA Subsidies The American Rescue Plan and Inflation Reduction Act temporarily expanded ACA subsidies, helping make coverage more affordable for millions. But those enhancements are set to expire at the end of 2025 — a policy shift that could unleash a wave of economic strain. The Kaiser Family Foundation estimates that if these subsidies lapse, individuals who purchase insurance through the ACA marketplace could see a 75% increase in premiums. Why does this matter so much for small businesses? Because half of all ACA marketplace enrollees are small business owners, entrepreneurs, or their employees. Coverage Is Shrinking, and Costs Keep Climbing Smaller businesses have historically been less likely to offer health insurance benefits than their larger counterparts. In 2025, only 64% of businesses with 25 to 49 employees offer health benefits — the lowest level ever recorded. And while large employers are still required by the ACA to offer coverage to full-time workers, they too are feeling the pressure. Since 2010, employers have gradually reduced the share of healthcare premiums they cover, even as deductibles have risen by 164% for single coverage plans. The result? Business owners are being squeezed from both sides — by rising insurance costs and a more financially stressed workforce. The Ripple Effects Could Be Widespread If enhanced subsidies aren’t renewed, many small businesses may have no choice but to: Shut down operations Cut staff Shift jobs into larger organizations that can offer coverage That would be a blow not only to small business dynamism but also to broader economic sectors. Reduced consumer spending could hit industries like retail, real estate, and manufacturing, while healthcare providers face payment cuts and job losses due to shrinking coverage pools. What’s Next? With Congress set to vote on subsidy extensions before the end of the year, the stakes couldn’t be higher. The outcome will likely define affordability, access, and entrepreneurship for years to come. For small business owners, now is the time to assess your coverage plans, understand your employee needs, and prepare for potential cost increases. For policymakers and industry leaders, it’s a critical moment to ensure healthcare reforms continue to support the backbone of the U.S. economy — small businesses. Experian continues to provide actionable data to help businesses, lenders, and policymakers navigate uncertainty. To access the full Commercial Pulse Report and explore more insights on small business credit and sector-specific performance: ✔ Visit our Commercial Insights Hub for in-depth reports and expert analysis. ✔ Subscribe to our YouTube channel for regular updates on small business trends. ✔ Connect with your Experian account team to explore how data-driven insights can help your business grow. Download the Commercial Pulse Report Visit Commercial Insights Hub Related Posts
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