Business travel hotel bookings fell by almost 6 per cent year-on-year in the third quarter, with fewer bookings from US-based travellers accounting for almost half of the shortfall, according to data from hotel booking specialist HotelHub.
The report, which examined more than 1.75 million bookings made between July and September 2025, noted a 8.5 per cent year-on-year decline in bookings from US-based travellers. This represents an ongoing downward trend, consistent with the previous quarter's decline after changes in US trade policies caused increased uncertainty for businesses.
The downturn in US outbound travel was also felt in the UK, where fewer US-based bookings accounted for more than a quarter (26.5 per cent) of the overall 6 per cent drop in hotel bookings for the quarter.
Bookings at hotels in the US continued to trend negatively, falling 7.9 per cent overall compared to Q3 2024. International bookings to the US were down 10.9 per cent at the close of the quarter and September, typically one of the busiest months of the year, saw almost 14 per cent fewer overseas travellers, according to HotelHub’s data.
Canada, however, was a "notable outlier" in Q3. Despite a 17.2 per cent drop in bookings from the US, its second biggest originating market, overall bookings for the quarter were up 8.5 per cent compared to the same period last year. HotelHub said booking volumes were bolstered by a 14.7 per cent jump in domestic trips as well as a positive uptick in reservations from the UK (up 4.8 per cent) and France (up 4.3 per cent).
Additionally, HotelHub said a 4.2 per cent decrease in lead times for US bookings compared to Q3 2024 (in contrast to a 0.6 per cent increase in the global average), suggests a growing reluctance to commit to US travel too far in advance.
“Uncertainty breeds hesitancy and it seems businesses, particularly in the US itself, are taking a cautious approach to travel under the present circumstances,” said HotelHub chief commercial officer Paul Raymond.
“US hotel reservations have been trending downwards all year, while year-to-date bookings figures for US-based travellers are almost 11 per cent below where they were at the same point in 2024. Compounded by the current federal government shutdown, it is unlikely that this trajectory will change in Q4,” he added.
While booking volumes dropped, global average nightly room rates increased by 4.2 per cent, reaching $191 compared to $183 in Q3 2024. This “considerable” increase followed more moderate year-on-year rises in Q1 (+0.2 per cent) and Q2 (+1.8 per cent).
Europe recorded a 7.4 per cent increase in average prices compared to Q3 2024, with rates at the higher end surging by more than 14 per cent in Finland ($165 in Q3 2025 compared to $144 in Q3 2024), Spain ($183 compared to $160 in 2024) and Denmark ($218 compared to $191 in 2024).
Elsewhere, significant increases were recorded in several key business destinations, including a 18.3 per cent rate rise in Bangalore ($158 in Q3 2025 compared to $133 in Q3 2024), a 13.2 per cent increase in Toronto ($333 in Q3 2025 compared to $294 in Q3 2024) and an uptick of 10.05 per cent in Tokyo ($307 in Q3 2025 compared to $279 in Q3 2024).
Meanwhile, average US prices increased at a much lower rate, up just 1.9 per cent compared to the same period in 2024.
As in the previous quarter, London was the most booked city globally in Q3 for HotelHub – ahead of New York, Paris, Bangalore and Stockholm.
“At this stage in the year, it is probably safe to say that the trends we’ve seen to and from the US are here to stay for the rest of 2025,” Raymond added.
“What’s less clear is whether the shifts in global trade that have emerged this year and the new alliances that have formed out of necessity will be short-lived or become the norm in 2026 and beyond,” he said.