Dive Brief:
- Declining optimism across the business travel sector — the result of recent U.S. government actions — could have negative effects on the domestic hospitality industry as more global travel buyers cancel U.S.-based meetings and seek travel partners outside of the country, according to a poll published Wednesday by the Global Business Travel Association.
- From April to July, global business travel buyers have grown more concerned about safety, budgets and travel willingness, the poll detailed. The percentage of buyers concerned over border detentions (31%) increased 9 percentage points since April, while those worried about budget cuts (44%) and a declining willingness of non-U.S. employees to travel to the U.S. (41%) both increased 4 percentage points.
- U.S. policy shifts under the Trump administration, including trade tariffs and entry restrictions, are “driving companies to reassess travel plans, tighten budgets and explore markets outside the U.S.,” according to GBTA. Buyers’ actions are expected to negatively impact hotel revenues.
Dive Insight:
Canceled, relocated and virtual meetings are all on the rise since April, according to GBTA’s poll, which surveyed some 950 global travel buyers, suppliers and other industry professionals across North America, Europe, Latin America, Asia-Pacific and the Middle East and Africa between June 16 and 27.
A greater percentage of global travel buyers said they canceled U.S.-based meetings or events than in April. And more buyers also reported relocating meetings or events to outside the U.S.
Meanwhile, 20% of respondents to the July poll said they had canceled sending employees to U.S.-based events, up from 10% in April, while 24% said they have shifted meetings or events online, up from 19% in April. Nearly one in five global travel buyers (18%) also reported having employees decline U.S.-based business trips due to concerns related to U.S. government actions.
Additionally, approximately one-third (35%) of non-U.S. industry professionals said their organization is seeking potential new trade partners or vendors outside of the U.S.
Overall, a greater percentage of global travel buyers (34%, up from 29% in April) expect the number of business trips taken at their company will decline in 2025.
For suppliers, including hotels, this will result in revenue declines, the report detailed. Some 48% of suppliers expect a decrease in business travel revenue, up from 37% in April. According to GBTA, lodging suppliers are the most concerned, with 58% anticipating revenue decreases.
Last month, CoStar and Tourism Economics downgraded their 2025 and 2026 growth projections for U.S. hotel top-line performance metrics, including RevRAR, citing elevated macroeconomic concerns.
Meanwhile, the U.S. could lose $12.5 billion in international visitor spending in 2025, the World Travel & Tourism Council reported in May.
