Endless summer

Economic uncertainty and an expected decline in foreign visitors to the US led many to predict a tough year for the hospitality industry this year. While the drop in overseas tourists did occur, a resilient US consumer and an uptick in luxury bookings have kept the summer vibes going. Through the first seven months of the year foreign visitors arriving at US airports fell 3.8% compared to the previous year. Canadians appeared particularly gun-shy to visit the US, with visitors from the country falling 7.4% year-on-year. According to the World Travel & Tourism Council, domestic consumers account for nearly 90% of tourism spending in the US which insulates the country from international pressure. Although budget conscious consumers appear to have spent less this summer, higher-end consumers spent more. For instance, revenue per luxury hotel room has risen 3% this year while economy rooms generated 1.9% less.

Source: US National Travel and Tourism Office, August 2025