Dive Brief:
- Americans hitting the road for Labor Day weekend will see cheaper prices across travel categories, including lodging, when compared to last year’s holiday weekend, according to AAA.
- AAA booking data for Aug. 28 through Sept. 1 shows that hotel rates are 11% lower this holiday weekend compared to last year’s. Flight and car rental prices are also down year on year.
- Economic uncertainty impacted hotel RevPAR this summer, but high-end consumers are still prioritizing travel, according to hotel CEOs. Seattle, New York and Orlando, Florida, are the three most popular cities for Labor Day weekend travel this year, AAA found.
Dive Insight:
Prices for international travel over Labor Day are “a mixed bag,” according to AAA. While hotels abroad are 2% cheaper, airfare is up 8%, the company shared.
“While some people are going on dream cruises or European vacations, many travelers are staying closer to home and taking road trips to nearby beaches or national parks,” AAA Travel Vice President Stacey Barber said, also noting that Seattle and Vancouver — both port cities for Alaska cruises — are popular Labor Day destinations.
Vancouver is the most popular international destination for U.S. travelers this holiday weekend. In July, Canadian hotel occupancy was at its highest level since 2019, according to STR.
Last year’s Labor Day travel period was the busiest on record, per the Transportation Security Administration.
Several major hotel companies reported RevPAR declines in the second quarter of 2025, as the quarter “turned out to be a bit noisier than expected,” Hilton CEO Chris Nassetta said in a company earnings call.
Declining international inbound travel, in particular, impacted hotel operators earlier this summer.
Americans, however, are still prioritizing leisure travel, experts told Hotel Dive earlier this year. In a second-quarter earnings call, Hyatt Hotels CEO Mark Hoplamazian said high-end consumers “continue to prioritize travel.”
