Short-Term Restraint: Understanding the Effect of Federal Policy Changes on Lodging Demand
💸 Government travel declined significantly in Q1 and Q2 of 2025, with forward bookings down 14% as of May 3 compared to the same period in 2024. The U.S. lodging industry is impacted by federal layoffs and tariffs, affecting demand in major markets like Washington, D.C. Government rate bookings constitute over 3% of hotel demand, with wider impacts through other rate categories. In contrast, leisure travel remains resilient, driven by Americans' persistent travel desires.
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