The Signal: August 2025

The industry's summertime doldrums showed few signs of lifting in the final month before fall, with business travel demand still muted. And while executive from some suppliers—Hyatt Hotels Corp., for one—said some demand signs portended stronger business travel activity after Labor Day, overall metrics for the month remained restrained.

The number of air tickets sold in August by U.S. corporate travel agencies and settled by ARC declined year over year for the eighth consecutive month, and the 6.4 percent decline was the deepest since May. Although that metric can be a less than perfect measurement of business travel demand, it nevertheless is noteworthy particularly in a month in which overall U.S air sales and passenger trips each increased year over year. ARC chief commercial officer Steve Solomon said in a statement in a statement even noted the overall figures "highlighted momentum seen throughout the summer."

The average August average price for a U.S. domestic roundtrip ticket was $532, up from the $515 reported one year prior but well below the heights of the fall and winter of 2024 and 2025.

The U.S. hotel market, too, failed to accelerate in August. U.S. occupancy for the month declined 1.3 percent, according to hotel analytics firm STR, and revenue per available room declined as well. Average daily rate increased slightly. STR in August also downgraded its hotel forecast for full-year 2025 and 2026. 

Some metrics, though, painted a rosier picture of travel demand. August air demand, as measured in revenue passenger kilometers, increased 4.6 percent year over year, the highest such increase since January 2025, according to the International Air Transport Association. That increase was driven by international travel demand, which increased 6.6 percent year over year.

August U.S. domestic air demand, however, dipped 0.2 percent year over year as measured in RPKs, according to IATA. Overall, though, global domestic demand increased 1.5 percent, a rate which IATA said was "subdued."