The United States saw a steep decline in inbound international hotel bookings in April 2025, with the biggest drop coming from Canada, its largest tourism source market, according to hotel reservations platform HotelPlanner.
However, the platform suggests the domestic travel market remains resilient, helping to buffer the impact.
According to data shared by the website with Invezz, the share of inbound international bookings fell by 61% year-on-year during the last week of April.
Canadian bookings fell 52% in the same period, while bookings from the UK fell by 33%.
Despite this decline, average US hotel room rates rose to $223 during the week of May 12–18, 2025, up from $187 a year earlier, representing a 19% increase.
“The people coming into the US are not as diverse as they used to be,” HotelPlanner UK managing director and chief communications officer Tim Gunstone told Invezz.
“The European market going to the US is down, as well as the Canadian market.”
But he noted that the sharp fall in Canadian visitors and other international visitors has been more than compensated for by American travellers choosing to holiday within the US.
Recent findings from the hotel search site Trivago also suggested that UK and US travellers are increasingly choosing domestic holidays amid concerns over an uncertain economy.
European travel interest down despite booking uptick
While there has been a 14% increase in bookings made by Europeans at US hotels through HotelPlanner, Gunstone pointed out that the percentage share of European bookings in the overall mix has declined by four percentage points.
He attributed this partly to the company’s expansion rather than a broader market trend, as HotelPlanner has seen over 140% growth in US hotel bookings in the last year.
Tourism Economics, in a forecast released Friday, projected an 8.7% fall in international arrivals to the US for all of 2025.
European travellers, it said, were expected to make 10% fewer trips to the US as the key summer season nears.
Anti-US sentiment amid tariffs, strong dollar weigh on bookings
The broader decline in inbound bookings has been attributed in part to political and economic tensions.
The World Travel & Tourism Council has forecast a $12.5 billion drop in US travel revenue in 2025, with foreign visitor spending projected to fall below $169 billion.
Some travellers have expressed backlash over US tariffs on Canadian and European goods, contributing to a growing sense of “anti-USA” sentiment that may be deterring travel.
Aran Ryan, director of industry studies at Tourism Economics, part of Oxford Economics, wrote in a research note last week that Trump administration’s “posturing and policy” tied to issues like border security and tariffs on long-standing trade partners have created “sentiment-headwinds” among would-be travellers.
Gunstone said while concerns may be exaggerated, there is some basis to them.
“Germany on our platform has had a bigger drop than the UK,” he said.
“The German government warned tourists going to the USA, so I think there is this palpable sentiment also driven by governments.”
He was referring to travel advisories issued by Germany and the UK, cautioning citizens about strict enforcement of immigration rules after a spate of detentions at US ports of entry.
A strong US dollar may also be deterring international visitors, experts have said.
Caribbean travel from the USA surges as Asia’s share declines
While inbound travel to the US has slowed, outbound American travel to the Caribbean is booming.
Gunstone said bookings from US customers to Caribbean destinations have risen by 8%.
The average room rate in the Caribbean climbed from $272 in 2024 to $417 in 2025, marking a 53% surge.
Meanwhile, the US share of the Asian hotel market has declined by 45% over the past year, even though the broader Asian market has grown 13%.
This suggests fewer Americans are heading to Asia despite regional growth.
Summer outlook buoyed by domestic strength
Looking ahead, Gunstone said the outlook for the US summer travel season remains positive, driven by domestic demand.
“The US is in for a good summer because it has US customers growing, and with the added rebound of international visitors—potentially from reduced tariffs—we’ll see more business come their way,” he said.
Hotel rates in the US are climbing, though not as aggressively as before.
Gunstone noted that US hoteliers are raising prices “in less of a bullish manner,” possibly reflecting an awareness of the fragile global tourism climate.
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