US Hotel Bookings Experience Sharp Q1 Drop, Meanwhile Other Countries See Rise

HotelHub’s Q1 2025 data reveals a 7.76% decrease in US hotel bookings compared to the same period in 2024, while bookings in countries like Canada, the UK and France have increased. The global average hotel rate remained stable at $177 per night.

HotelHub, a prominent hotel booking technology provider, detailed a significant decrease in US hotel bookings in their recently released Q1 2025 data. There was a 7.76% drop in US bookings compared to Q1 2024. This downward trend is observed amidst sweeping domestic and foreign policy changes by the new US administration.

Rising Hotel Bookings in Other Countries

Conversely, hotel bookings in several countries traditionally allied with the US increased in Q1 2025. Canada saw a rise in hotel booking volumes by 9.94% compared to the same period in 2024. Similarly, the UK and France noted increases in bookings by 7.15% and 3.02%, respectively. This could potentially suggest a shift in business travel away from the US.

Stabilisation of Global Average Hotel Rate

Despite economic volatility, the first quarter of 2025 brought some positive news for business travelers regarding hotel rates. Based on all HotelHub bookings for the quarter, the global average rate per night was $177. This was a mere 0.19% increase from Q1 2024, contrasting with the nearly 8% rise seen the previous year.

Decline in Major Business Hubs’ Hotel Rates

Q1 average hotel rates declined significantly in several major business hubs compared to 2024. Top destinations for HotelHub users saw decreases in average hotel rates, with London, Paris, and New York experiencing rate drops of 3.92%, 3.38%, and 3.09%, respectively. Toronto and Los Angeles marked a remarkable 15% decrease in hotel rates.

US Outlier in Booking Lead Time Growth

HotelHub’s 2025 findings also highlighted a continued growth trend in booking lead time from 2024. While global averages showed little difference in the growth rate between domestic and international booking lead times, the US was an exception. Although lead times for international bookings in the US grew by 6.21% in Q1 2025, the lead times for domestic bookings dropped by 1.68%, indicating a surge in last-minute local travel.

Paul Raymond, Director of Business Development at HotelHub, noted the significant changes in HotelHub booking data, particularly the 7% drop in bookings in Washington, D.C., and almost 13% drop in New York. He suggested that the volatility in recent months could create more challenges for business travel, but also emphasized the importance of in-person meetings as businesses navigate the ‘new normal’.

Download the HotelHub Index 2025: Q1.