10 Minutes News for Hoteliers 10 Minutes News for Hoteliers
  • Top News
  • Posts
    • CSR and Sustainability
    • Events
    • Hotel Openings
    • Hotel Operations
    • Human Resources
    • Innovation
    • Market Trends
    • Marketing
    • Mergers & Acquisitions
    • Regulatory and Legal Affairs
    • Revenue Management
  • 🎙️ Podcast
  • 👉 Sign-up
  • 🌎 Languages
    • 🇫🇷 French
    • 🇩🇪 German
    • 🇮🇹 Italian
    • 🇪🇸 Spain
  • 📰 Columns
  • About us
10 Minutes News for Hoteliers 10 Minutes News for Hoteliers 10 Minutes News for Hoteliers
  • Top News
  • Posts
    • CSR and Sustainability
    • Events
    • Hotel Openings
    • Hotel Operations
    • Human Resources
    • Innovation
    • Market Trends
    • Marketing
    • Mergers & Acquisitions
    • Regulatory and Legal Affairs
    • Revenue Management
  • 🎙️ Podcast
  • 👉 Sign-up
  • 🌎 Languages
    • 🇫🇷 French
    • 🇩🇪 German
    • 🇮🇹 Italian
    • 🇪🇸 Spain
  • 📰 Columns
  • About us

From global to local, U.S. lodging industry forced to adjust to leisure-driven demand as business travel falls behind

  • Guest Contributor
  • 9 May 2025
  • 4 minute read
Total
0
Shares
0
0
0

This article was written by HotelsMag. Click here to read the original article

image

The hospitality sector has undergone a dramatic transformation over the past several years due to rising interest rates, declining discretionary income, impacts from the pandemic and changing work-from-home (WFH) trends. While early expectations projected a full recovery across all travel segments, the reality has been more nuanced. Leisure travel has remained remarkably resilient, whereas business travel—once a cornerstone of the hospitality industry— has struggled to regain its pre-pandemic momentum, especially in urban markets where WFH has become the norm. Now, new geopolitical and economic factors are poised to potentially impact lodging further, particularly in key leisure markets, while business travel continues to lag in many urban markets. 

LEISURE SHIFT 

During the height of the pandemic, travel restrictions and corporate policy shifts led to a significant decline in business travel. However, leisure travel, fueled by pent-up demand with a continued desire to travel and a preference for open-air destinations, flourished. Popular leisure markets experienced strong demand and increased room rates, with ski resorts, coastal areas, national parks and other outdoor-oriented locations benefiting the most. This dynamic has sustained itself even as broader economic conditions have fluctuated, reshaping how the hospitality industry operates.  

The continued lag in business travel remains impactful. Many businesses have permanently adjusted their travel policies, reducing the frequency of corporate trips in favor of virtual meetings. Conferences and conventions, a critical driver of urban hotel occupancy, have yet to fully recover, particularly in some cities that were heavily reliant on business travel before the pandemic. Markets, such as Seattle, San Francisco and Chicago, which once thrived on corporate demand, are still working to regain lost ground. The gap in occupancy from 2019 that is being experienced in such markets is primarily due to the commercial segment not recovering. 

Aligned Hospitality Adds Spark by Hilton Tucson Airport to Managed Portfolio
Trending
Aligned Hospitality Adds Spark by Hilton Tucson Airport to Managed Portfolio

The adverse effects on property values in these business-centric markets have become steeper as the anticipated recovery timeline keeps getting pushed out. The hospitality industry must now navigate a complex landscape. Hotels in traditionally business-heavy markets have begun repositioning themselves to attract more leisure travelers, offering experiential packages and amenities that cater to vacationers rather than just corporate guests. Additionally, destinations that have seen leisure travel boom—such as Utah’s ski markets—are benefiting from long-term shifts, including continued room rate growth. 

INTERNATIONAL TRAVEL LOW FLOW 

Looking ahead, international travel shifts present an obstacle, with the U.S. facing a 5.5% decline in inbound travel for 2025. Canadian and European travelers, who have historically been key contributors to U.S. leisure destinations, have started reducing their visits due to rising tariffs, currency fluctuations and evolving political dynamics. Going forward, leisure demand is at risk, especially in those markets dependent on international demand. Many airlines have already begun cutting flights. Canadian tourism could be as much as 70% lower this year and European travelers have also begun cancelling vacation plans to the U.S.  

The strength of the Canadian dollar has long influenced travel trends, particularly to border states and warm weather destinations in the U.S. With the Canadian dollar’s weakened position and economic pressures mounting, cross-border leisure trips are expected to shift, with fewer Canadians visiting U.S. destinations in the near term. It is expected that gateway cities, from New York to San Francisco, will feel the impact of this shift more than inland states. 

Winter-friendly destinations have historically benefited from international visitors escaping colder climates, with, for example, Canadian travelers making up a notable portion of winter tourism to these locations. If numbers dwindle due to economic constraints and trade tensions, the hospitality sector may see demand soften in these key leisure markets, posing new challenges for hotels, resorts and tourism-driven economies.  

Regarding travel within the U.S., the potential impact of broader economic conditions on discretionary spending is another consideration. While leisure travel has remained strong to date, inflationary pressures, Wall Street declines, pending tariffs, increasing costs and high interest rates could weigh on consumers’ ability to maintain their travel habits. If economic uncertainty persists, hospitality markets that have historically depended on a robust leisure segment may start to see softer conditions with travelers either cancelling trips or trading down to lower-scale hotels or shorter trips to save money. 

The question remains: Can leisure travel continue to compensate for the ongoing struggles of business travel along with new geopolitical headwinds? Will there be more “bleisure” trips, combining business and leisure, as travelers attempt to save money? While demand for outdoor, recreational and experience-driven vacations remains strong, the hospitality industry must prepare for shifting international travel behaviors, evolving economic conditions and a likely continuation of the segmented recovery that has been seen across various markets throughout the U.S. The lodging industry’s ability to adapt to new trends and ever-changing demand sources will determine the pace and extent of the effects of these changes in the hospitality industry.  


Story contributed by Nancy Dawn, EVP, valuation & advisory, Newmark.

Please click here to access the full original article.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
You should like too
View Post
  • TOP NEWS

Islyn Studio combines raw and refined materials in Miami Beach restaurant

  • Dan Howarth
  • 23 August 2025
View Post
  • TOP NEWS

When Ryan Reynolds and Rob McElhenney Bought Wrexham AFC, This Hotelier Made the Most of the Moment: Steven Hesketh

  • Josiah Mackenzie
  • 22 August 2025
View Post
  • TOP NEWS

Radisson Blu London secures Silver Green Tourism Accreditation

  • Heather Sandlin
  • 22 August 2025
View Post
  • TOP NEWS

Digital transformation is redefining hotel F&B leadership

  • Automatic
  • 22 August 2025
View Post
  • TOP NEWS

How digital tools are reshaping team accountability and leadership in F&B operations

  • Guest Contributor
  • 21 August 2025
View Post
  • TOP NEWS

7 Ways TrustYou AI Agents Help Hotels Reduce Operational Costs

  • TrustYou Editorial Team
  • 21 August 2025
View Post
  • TOP NEWS

Hospitality leaders, you're sleeping on one of the biggest drivers of revenue in today’s market. | Scott Eddy posted on the topic | LinkedIn

  • Scott Eddy
  • 21 August 2025
View Post
  • TOP NEWS

Bed Time Stories by Testbed Vegas – 18th August 2025

  • Mark Fancourt
  • 20 August 2025
Sponsored Posts
  • 2025 SOCIETIES Quaterly 3

    View Post
  • The Future of Revenue Management Is Strategic Leadership – LodgIQ

    View Post
  • Case Study: Refinery Hotel Redefines Revenue Management with LodgIQ

    View Post
Last Posts
  • What is the problem?
    • 23 August 2025
  • Hunter Hotel Advisors Arranges Sale of Home2 Suites by Hilton Wayne
    • 22 August 2025
  • Global hotel deals remained stunted in the first half of 2025. Could the second half be different?
    • 22 August 2025
  • New on the Menu: Thai-inspired chopped cheese and Korean shakshuka
    • 22 August 2025
  • From Rome to Stockholm: Summer 2025 Hotel Guest Experience Snapshot
    • 22 August 2025
Sponsors
  • 2025 SOCIETIES Quaterly 3
  • The Future of Revenue Management Is Strategic Leadership – LodgIQ
  • Case Study: Refinery Hotel Redefines Revenue Management with LodgIQ
Contact informations

contact@10minutes.news

Advertise with us
Contact Marjolaine to learn more: marjolaine@wearepragmatik.com
Press release
pr@10minutes.news
10 Minutes News for Hoteliers 10 Minutes News for Hoteliers
  • Top News
  • Posts
  • 🎙️ Podcast
  • 👉 Sign-up
  • 🌎 Languages
  • 📰 Columns
  • About us
Discover the best of international hotel news. Categorized, and sign-up to the newsletter

Input your search keywords and press Enter.