US leads decline in global business hotel bookings in early 2025
Global hotel booking volumes for business travel have declined in the first half of 2025, with the United States experiencing the steepest drop, according to new data from HotelHub.
The latest HotelHub Index, which analyses close to 4 million hotel bookings made in 2025, reports that year-to-date global booking volumes are down 5.35% compared to January to June 2024. This marks a shift from the first quarter of the year, when bookings had remained relatively stable even with notable declines in the US.
US market
The United States continues to face the largest reduction in booking volumes, with year-to-date bookings down 10.65% from the same period last year. Data shows a 13.24% fall in US hotel bookings in the second quarter compared to Q2 2024. Additionally, average lead times for US hotel bookings reduced by 6.77% in the second quarter, indicating a decrease in advance planning for travel to the country.
This downturn comes amid uncertainty surrounding tariff policies introduced by the US administration since April. Companies have responded by curbing advance commitments to travel, reflecting hesitancy in the face of unpredictable trade policy shifts.
Impact in other markets
Hesitancy in travel bookings was also observed in other major destinations. In the United Kingdom, bookings saw a 7.15% increase in the first quarter of 2025, but this early momentum reversed, ending the first half of the year down by 1.41% compared to the same period in 2024. France experienced a similar trend: a 3% upturn in Q1 switched to a 1.53% year-to-date decline at the end of June. Australia, which recorded a 1.48% increase in Q1 bookings, finished the six-month period with a marginal 0.46% decrease.
It remains unclear whether the recent declines represent a temporary response to the US trade policy changes or if the reduced demand will persist as businesses adapt to new international agreements.
Resilience in Canada and Norway
Among the 15 countries most booked through HotelHub, only Canada and Norway recorded growth in hotel bookings during the second quarter of 2025. Canada saw a 5.13% increase in Q2 bookings compared to Q2 2024, with the year-to-date total up by 7.24%. Norway reported a 9.71% boost in Q2 bookings compared to the same quarter last year, and a 20.79% year-to-date increase against January to June 2024.
Analysis from HotelHub
"Given the global uncertainty surrounding the recent White House activity, it's not particularly surprising to see a slight downturn in hotel bookings for business travel in the first half of the year. However, while the decline in Q2 US bookings is evident, there is room for optimism in other markets. As several countries have more recently signed trade deals with the US, there appears to be a level of stability returning to businesses and we may even see a greater impetus for travel as companies look to realign strategies with the new policies in place."
The analysis, provided by Paul Raymond, Chief Commercial Officer at HotelHub, points to potential stabilisation in international markets as business strategies evolve in response to recent policy developments.
Average rates and lead times
The HotelHub Index also highlights that the overall average lead time for all bookings has dropped by 0.91%. This represents a decline from an average of 16.85 days in Q2 2024 to 16.69 days in Q2 2025, breaking a trend of increasing lead times seen since 2022.
Regarding hotel rates, the data suggests a slowdown in price increases. The average rate booked per night between April and June 2025 was USD $192, a rise of 1.77% versus the same quarter in 2024. Across the first half of the year, average rates were up just 1% from 2024 levels, a significant moderation compared with the 5.39% increase recorded in the same period last year against 2023.
This restraint in rate growth may prove beneficial for corporate travel budgets, offering some relief after previously higher cost increases.
The findings from HotelHub's Q2 2025 Index provide a snapshot of how business travel accommodation trends have evolved in response to ongoing global economic and policy shifts, particularly those originating in the US. The state of volatility in the US hotel bookings market and stagnating growth in other regions continue to reflect the business travel sector's sensitivity to global political and economic developments.
