The United States is experiencing a significant decline in international hotel bookings, particularly from Canadian and European visitors, as economic uncertainty and geopolitical factors discourage travel.
Despite this downturn, strong domestic tourism is supporting the hotel sector, helping to maintain occupancy and push average room rates higher during the summer of 2025.
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Sharp decline in international visitors from Canada and Europe
Data from HotelPlanner shows a 61% drop in international hotel bookings to the US in late April 2025 compared with the previous year.
Canadian travellers, historically the largest source of inbound tourists, fell by 52%, while bookings from the United Kingdom declined by 33%.
European markets overall have weakened, with fewer travellers booking US hotels amid concerns over political climate, immigration policies, and travel costs.
German visitors, in particular, have decreased more sharply than those from the UK, influenced by government travel advisories highlighting stringent border checks.
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By GlobalDataEconomic and political challenges reduce us appeal to foreign tourists
Several factors contribute to the fall in international travel to the US. Trade tensions, tariffs, and a strong US dollar have made visits more expensive.
Furthermore, reports of strict immigration enforcement and negative travel advisories from European authorities have created a cautious travel environment.
The World Travel & Tourism Council forecasts a $12.5 billion drop in US travel revenue for 2025, with foreign visitor spending expected to fall below $169 billion.
Analysts predict an 8.7% overall decrease in international arrivals, with European visitor numbers declining by around 10% as summer approaches.
Domestic tourism surge offsets losses, keeping hotel rates on the rise
In contrast to the slump in foreign arrivals, domestic tourism within the US is expanding robustly. Many Americans are choosing to vacation at home amid global economic instability and concerns over travel delays.
This trend is sustaining hotel occupancy and driving a 19% increase in average room rates compared to the previous year, with prices reaching $223 per night in mid-May 2025. Coastal cities and rural destinations alike are benefiting from this increased homegrown demand.
Outbound travel from the US is also growing in nearby regions like the Caribbean, where American bookings have risen by 8%, pushing hotel rates up by 53%. However, travel to Asia by US visitors has declined significantly, down 45%, likely due to distance, restrictions, and cost.
The US hotel industry faces a transitional period as international travel slows, but strong domestic demand provides a buffer.
With steady domestic bookings and cautious pricing strategies, hotels are positioned to maintain a healthy summer season despite ongoing global uncertainties.
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