U.S. business travel growth slows as companies remain cautious on spending

Corporate travel demand is holding steady, but economic uncertainty and geopolitical risks continue to limit a stronger rebound

The U.S. Travel Association projects modest growth for U.S. business travel spending in 2026, reflecting a corporate travel market that remains resilient but cautious. Based on forecasts from Tourism Economics, domestic business travel spending is expected to rise just 0.7 percent in real terms to $319 billion next year. The outlook suggests that companies continue to value in-person meetings and business relationships, even as tighter budgets, economic pressures, and geopolitical uncertainty limit faster growth. For hoteliers, the forecast points to a stable but highly competitive corporate travel environment where capturing share may matter more than relying on broad market expansion.

Key takeaways

• Modest corporate travel growth: U.S. domestic business travel spending is projected to increase to $319 billion in 2026, representing real-term growth of just 0.7 percent year over year.
• Corporate budgets remain cautious: The slower pace of growth reflects continued scrutiny of travel spending by companies, despite improving economic conditions.
• In-person meetings still matter: The forecast highlights that demand remains supported by businesses prioritizing face-to-face engagement, sales meetings, and relationship building.
• Recovery expected beyond 2026: U.S. Travel expects stronger business travel growth from 2027 onward as economic conditions stabilize further and travel budgets gradually recover.
• Leisure travel continues to outperform: Domestic leisure travel spending is forecast to grow faster than corporate travel, reaching $909 billion in 2026.
• Inbound international recovery remains fragile: International travel spending into the U.S. is expected to return to growth after a decline in 2025, but the sector remains sensitive to policy decisions and geopolitical developments.
• Hotels face a competitive corporate market: For hoteliers, the forecast suggests that corporate demand will remain available, but growth will likely come from better distribution, stronger negotiated relationships, and clearer value propositions rather than broad market expansion alone.

Source: U.S. Travel, BTN

Enjoying this analysis? Hospitality.today delivers daily insights on hotel distribution, AI trends, and travel commerce — straight to your inbox. Subscribe for free at Hospitality.today →