Travel demand in March 2025 in the United States showed some
signs of softening, even as demand remained solid in some other areas of the
globe.
U.S. hotel occupancy in March declined year over year after
five consecutive months of growth, down 0.3 percent to 63.6 percent, according
to hotel analytics firm STR, though the shift in the Easter holiday, which was
March 31 last year and April 20 in 2025, likely affected results. The average
daily U.S. hotel rate in March increased year over year, as did revenue per
available room.
For the third straight month, the number of air tickets sold
by U.S. corporate agencies and settled by ARC declined year over year. ARC
chief commercial officer Steve Solomon in a statement cited "global
geopolitical uncertainties" affecting the results, but noted overall
first-quarter air travel demand "grew slightly more than 3 percent."
The overall average U.S. domestic ticket price in March dipped to its lowest
level since August 2024 and declined year over year, and the average price for
a premium-class ticket declined slightly from prior-year levels.
Domestic air passenger demand, as measured in revenue
passenger kilometers, in March declined year over year in the United States for
the second straight month, according to the International Air Passenger
Association, and international travel demand on North American carriers dipped
slightly as well. While IATA director general Willie Walsh in a statement noted
the potential effects of "tariffs and other economic headwinds on travel"
and said the "the small decline in demand in North America needs to be
watched carefully," he still noted that "March numbers continue to
show a global pattern of growth for air travel."
