Business travel hotel bookings fell by almost 6 percent year-on-year in the third quarter, with fewer bookings from U.S.-based travelers 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 an 8.5 percent year-on-year decline in bookings from U.S.-based travelers. This represents an ongoing downward trend, consistent with the previous quarter's decline after changes in U.S. trade policies caused increased uncertainty for businesses.
The downturn in U.S. outbound travel was also felt in the U.K., where fewer U.S.-based bookings accounted for more than a quarter (26.5 percent) of the overall 6 percent drop in hotel bookings for the quarter.
Bookings at hotels in the U.S. continued to trend negatively, falling 7.9 percent overall compared to Q3 2024. International bookings to the U.S. were down 10.9 percent at the close of the quarter and September, typically one of the busiest months of the year, saw almost 14 percent fewer overseas travelers, according to HotelHub's data.
Canada, however, was a "notable outlier" in Q3. Despite a 17.2 percent drop in bookings from the U.S., its second biggest originating market, overall bookings for the quarter were up 8.5 percent compared to the same period last year. HotelHub said booking volumes were bolstered by a 14.7 percent jump in domestic trips as well as a positive uptick in reservations from the UK (up 4.8 percent) and France (up 4.3 percent).
Additionally, HotelHub said a 4.2 percent decrease in lead times for U.S. bookings compared to Q3 2024 (in contrast to a 0.6 percent increase in the global average), suggests a growing reluctance to commit to U.S. travel too far in advance.
"Uncertainty breeds hesitancy and it seems businesses, particularly in the U.S. itself, are taking a cautious approach to travel under the present circumstances," said HotelHub chief commercial officer Paul Raymond.
"U.S. hotel reservations have been trending downwards all year, while year-to-date bookings figures for U.S.-based travelers are almost 11 percent 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 percent , reaching $191 compared to $183 in Q3 2024. This "considerable" increase followed more moderate year-on-year rises in Q1 (+0.2 percent ) and Q2 (+1.8 percent ).
Europe recorded a 7.4 percent increase in average prices compared to Q3 2024, with rates at the higher end surging by more than 14 percent 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 percent rate rise in Bangalore ($158 in Q3 2025 compared to $133 in Q3 2024), a 13.2 percent increase in Toronto ($333 in Q3 2025 compared to $294 in Q3 2024) and an uptick of 10.05 percent in Tokyo ($307 in Q3 2025 compared to $279 in Q3 2024).
Meanwhile, average U.S. prices increased at a much lower rate, up just 1.9 percent 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 U.S. 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.