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U.S. travelers are spending more in 2025

🏖 U.S. travelers in 2025 plan to spend an average of $5,138 on vacations, taking 4.2 trips—the highest in five years. Around 34% are using AI for planning, up from 31% in 2024, with 35% planning international trips in the next six months. Off-season travel and alternative accommodations help budget management. Climate and political shifts affect destination choices, while eco-friendly options are preferred if they don't raise costs.
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U.S. hoteliers have mixed expectations for summer demand

🏨 U.S. hoteliers anticipate a complex summer travel season in 2025 facing both optimism and uncertainty. Beach destinations and lesser-known areas are stable, while urban markets like New York and San Francisco show promising but not record-breaking demand. Bookings for July and August are flat compared to last year, with solo and event-based travel gaining popularity. Booking trends show extremes of far in advance or very last minute, with a mid-range booking lull. International inbound tourism is slowing, notably from China, Canada, and South America, due to geopolitical issues. Government travel has decreased sharply due to budget cuts, impacting hotels in government-dependent markets. Inflation is challenging profitability, with hoteliers strategizing to balance rates, demand, and costs. Overall, business travel is cautious with corporations cutting budgets amidst economic uncertainty.
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Business travel 2025: Insights from Booking.com for Business

🌎 In 2025, business travel is being reshaped by sustainability, AI, and personalization. Companies are choosing ground travel, like trains which are 12 times more efficient than flights, for lower carbon emissions. AI tools, such as Mindtrip and virtual assistants, are streamlining travel planning, and real-time translation apps like DeepL are enhancing communication. Inclusive travel policies are being adopted for employee safety and support. VR is allowing previews of hotels/venues, while IATA’s NDC enables dynamic pricing and personalized offers by airlines. Safety apps are in use for emergency response and traveler tracking. Immersive event experiences and AI-driven, personalized travel options are on the rise. Corporate booking is becoming more automated and centralized.
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Google expands AI capabilities across travel tools

📍 Google introduced new travel tool enhancements on March 28, 2025, featuring global hotel price tracking on mobile/desktop, Maps screenshot list in the U.S. (iOS, English), AI itinerary builder (English, U.S.), and free Gems AI assistants for all users. Google Lens now understands Hindi, Indonesian, Japanese, Korean, Portuguese, and Spanish, making travel planning and navigation more accessible and efficient. ????
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Trump’s travel backlash may last for years

🔶 On Mar 28, 2025, a sharp downturn in international travel to the U.S. is reported, attributed to the Trump administration's trade wars and hardline immigration policies. Tourism Economics revises its initial 9% growth forecast for 2024 to a 5% decline, indicating a $64 billion shortfall in U.S. travel spending. Canadian airline bookings plummet by 70%, while car travel drops 23% in February. Mexican air travel to the U.S. also falls by 6% in February. Industry experts warn of long-term impacts on tourism and attendance at major events like the 2025 Ryder Cup, 2026 FIFA World Cup, and 2028 Olympics.
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The power shift in hospitality

🏨 Hotel owners gain more leverage as major brands like Marriott International shift to asset-light strategies. Marriott, with a $81.63 billion market cap and 1.5 million rooms, targets a 5–5.5% net room growth from 2022 to 2025, necessitating over 500 new hotels yearly. Owners now demand value, performance, and accountability, playing a pivotal role in brand growth and profitability, beyond just the brand name’s allure. Owners' rising expectations include data-driven strategies, operational excellence, and strong profit margins.
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Spring into direct bookings

🏡 On Mar 28, 2025, it was highlighted how hotels can leverage springtime travel demand to increase direct bookings and guest loyalty. Hotels are advised to launch spring-specific promotions, showcase local events, tailor website messaging with spring themes, use personalization tools for targeted engagement, and create memorable experiences for repeat bookings. More insights at The Hotels Network.
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Germany retains top spot for business travel in Europe

📌 On Mar 28, 2025, BCD Travel's report based on 2024 data named Germany as Europe's top business travel destination, with the U.S. leading globally. Italy experienced the most substantial growth in Europe, while London remained a principal air travel hub. 2024 saw global business travel surpass expectations, and growth sectors included real estate, arts, entertainment, and recreation. The full report is available at BCD Travel's website.
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Perplexity embraces the era of agentic travel

🏨 On March 27, 2025, Perplexity partnered with Selfbook and Tripadvisor to launch a new AI-powered hotel booking feature. The "agentic action" design allows users to book hotels directly within Perplexity's platform without leaving the search interface. Selfbook provides the financial and booking infrastructure, while Tripadvisor offers reviews. The web feature, with mobile access and Pro-user discounts forthcoming, aims to include flights and car rentals for complete travel planning. This move aligns with the AI industry trend towards actionable tools.
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Travel planning, Gen Z and Millennial style

🏖 On Mar 27, 2025, a new report indicated a shift in tourism, with 65% of travelers aged 18–54 choosing destinations based on experiences, particularly Gen-Z and Millennials. Popular activities include culinary experiences, local interactions, and sports events. Young travelers book early, while those 55+ decide late. Economic concerns in 2025 prompt the need for standout experiences. The Arival 360 event in Valencia will discuss these trends.
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