Domestic travel strengthens U.S. hotel demand in 2025

Rising home-market bookings reshape distribution priorities and pricing strategies for hotels

Domestic travel continued to gain share in 2025, according to SiteMinder data based on more than 130 million hotel bookings. The United States saw 77% of arrivals from domestic travelers, with similar trends emerging in Canada, Germany, France, and Spain. Booking behavior also stabilized, offering hotels greater predictability despite modest declines in room rates. The findings suggest that hotels should refine distribution strategies and focus on incremental revenue opportunities amid evolving guest patterns.

Key takeaways

• Domestic travel growth: Domestic arrivals reached 77% in the U.S., with comparable increases across major global markets, indicating sustained preference for closer-to-home travel.
• Shifting channel landscape: Expedia led U.S. booking channels again, while B2B platforms, fintech travel apps, and Asian OTAs gained visibility, reflecting a more complex distribution mix.
• Direct bookings resilience: Hotel websites maintained the third position among booking channels despite ongoing debate about AI’s future impact on direct distribution.
• More predictable booking behavior: Cancellation rates, lead times, and length of stay stabilized in 2025, helping hotels plan operations and revenue strategies with greater confidence.
• Moderate pricing pressure: Average daily rates declined slightly year over year, reinforcing the need for value-added packages and longer-stay incentives.
• Short stays dominate: One-night stays remained prevalent across major markets, highlighting continued demand for short, flexible travel patterns.
• Seasonality remains stable: Peak summer demand persisted, though with slight redistribution toward quieter months, suggesting gradual normalization of travel cycles.
• Top booking channels in 2025 (U.S.): Expedia Group, Booking.com, hotel websites (direct bookings), Agoda, Airbnb, Hotelbeds, Global Distribution Systems (GDS), Hopper, WebBeds, and Trip.com formed the leading distribution channels.

Source: SiteMinder

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