Kalibri Labs data reveals early 2025 downturn, driven by economic uncertainty and federal travel restrictions
Apr 23, 2025
Corporate and government hotel bookings in the U.S. have declined in early 2025, reflecting broader economic uncertainty and travel restrictions. According to Kalibri Labs, corporate transient bookings dropped 4% year-over-year through early April, while government per diem bookings fell 9%. Forward-looking bookings show even steeper declines, particularly in government travel, highlighting the impact of geopolitical and economic shifts on lodging demand.
Key takeaways
- Corporate travel down: Corporate transient hotel bookings dropped 4% year-over-year through April 5. Forward bookings for the next 30 days are also down 4%.
- Government travel hit harder: Government per diem bookings declined 9%, and forward bookings are down 20%. The steep drop is attributed in part to new federal travel restrictions and spending freezes.
- Executive order impact: A recent executive order in President Trump’s second term has curbed non-essential federal travel and frozen government travel cards, further reducing demand.
- Overall market weakness: Total U.S. hotel room night production dipped 1% year-over-year. Over half of markets assessed saw flat or declining demand.
- Regional differences: The D.C. area held steady in corporate travel, but government bookings dropped sharply. Forward bookings for both segments are significantly lower.
- Tiered performance trends: Declines in corporate bookings were sharper in midscale (-13%) and economy (-8%) hotels, while upscale segments saw smaller drops. Interestingly, 30-day forward bookings rose in lower tiers but fell in higher-end properties.
Download the full report at Kalibri Labs
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