Hotel bookings in the US have dropped just under 8% in the first quarter of 2025, compared to the same period in 2024, while overall booking levels around the world have changed little. That’s according to analysis of the 1.9+ million hotel bookings made via HotelHub technology.
There has been a 7% drop in bookings to Washington D.C. and an almost 13% drop in bookings to New York City.
“The volatility we have seen in recent months will almost certainly create more challenges for business travel, but the ability to travel and meet in-person is even more important as business partners try to make sense of the ‘new normal’,” said Paul Raymond, Director of Business Development at HotelHub.
The quarterly HotelHub Index shows that overall global booking volumes have changed little compared to last year.
In Canada, hotel booking volumes have risen by 9.94% compared to the same period a year ago. Reservations in the UK and France have increased by 7.15% and 3.02% respectively.
It is too early to say whether this trend points to a definitive shift away from travel to the US.
Increased volumes of bookings in other regions may be indicative of businesses upping their in-person meetings as they navigate the implications of inconsistent US policy.
The first three months of 2025 brought good news for business travellers regarding hotel rates. Based on all HotelHub bookings for the quarter, the global average rate per night was $177. That is up just 0.19% from Q1 2024, significantly lower than the 8% year-on-year rise from 2023 to 2024.
Across many major business hubs, Q1 average hotel rates were down significantly from those of 2024. Rates in the top three destinations for HotelHub users dropped compared to the first quarter of 2024 in London (by 3.92%), Paris (3.38%) and New York (3.09%). Meanwhile, 15% decreases were noted in both Toronto and Los Angeles.
The report’s findings show a continuation of the trend of booking lead times growing. On average, the length of time between the point of booking and check-in increased by 5.95% in the first three months of the year compared to Q1 2024.
Globally, there is little difference between the rate of growth in domestic and international booking lead times. However, analysis reveals the US is showing lead times for international bookings grew by 6.21% in Q1 2025 while those for domestic bookings fell by 1.68%. This hints at a surge in last-minute local travel from US businesses in the first three months of 2025.
Raymond commented: “While the results of last year’s presidential election were always going to have an impact on the course of 2025, the changes we are already seeing in our HotelHub booking data are significant…Whether this is a blip or a developing trend isn’t clear, but, moving forwards, we will be keeping a close eye on US bookings in particular.”
