For U.S. hotels, the recovery in group demand has helped offset weaker transient travel throughout 2024. Will group demand continue to grow through 2025?
Aug 14, 2024
That’s likely, but Kelsey Fenerty, STR’s manager of analytics, noted at the Hotel Data Conference that the coming year will be “pivotal.” While hotels and short-term rentals like Airbnb are competing for leisure travelers’ dollars, business travelers and corporate groups are not yet a significant threat to hotels, Fenerty said.
Key takeaways
- Leisure Travel Slowdown: In 2025, rising credit card debt and GDP fluctuations may make travelers more price-sensitive, leading to stronger weekend demand but weaker weekday bookings and increased competition among companies;
- International Travel: U.S. outbound travel has rebounded, but inbound travel may decline in 2025 as many international visitors delay travel until the 2026 FIFA World Cup in North America, which could significantly boost hotel demand;
- Experience-Driven Travel: The trend toward unique experiences will continue, benefiting off-the-beaten-path U.S. destinations. Meanwhile, overtourism in European cities may discourage some outbound travel;
- Return to Office: The return to the office is nearly complete, with U.S. corporate travelers among the last to resume international bookings.
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