Business travel hotel bookings dropped by 5.35 per cent in the first half of 2025 with US volumes down by 10.65 per cent, according to data from hotel booking specialist HotelHub.

The US, which had already seen a ¡°striking drop¡± in bookings of 8 per cent in the first quarter of the year, experienced a further fall in hotel volumes of 13 per cent during Q2. Last week, Travelogix figures revealed a 25 per cent drop in business travel volumes between the UK and US during the first half of 2025.

HotelHub also noted that - despite a strong start to 2025 ¨C several major European markets had seen a drop in hotel bookings during the second quarter, as US trade policies caused increased uncertainty for businesses around the world.

¡°It appears that this hesitancy to travel is trickling to other markets. For example, the UK, which had seen a 7.15 per cent growth in bookings via HotelHub in Q1, closed the first six months of the year with total bookings down by 1.41 per cent compared to 2024,¡± said the hotel specialist in its quarterly report.

¡°Similarly, year-to-date bookings in France were down by 1.53 per cent at the end of June 2025 ¨C despite being up 3 per cent in Q2. It remains to be seen whether the Q2 downturn is just a blip in the immediate aftermath of the US tariff announcements and if bookings will get back on track as trade deals are settled.¡±

Several other European countries also saw declines in hotel bookings during the first half of 2025, including Germany, which was down 8.3 per cent year-on-year after suffering a 14.9 per cent plunge in Q2.

HotelHub said that only two of its top 15 countries for bookings ¨C Canada and Norway ¨C had experienced higher levels of hotel transactions in Q2 compared with the same period of last year.

The average hotel rate in Q2 was $192 per night, which was a 1.8 per cent year-on-year increase, as prices continue to ¡°settle after significant increases in 2024¡±. In Europe, the average rate was up by 3.2 per cent year-on-year to $184 in Q2.

HotelHub¡¯s figures also showed there had been a slight drop in lead times for hotel bookings which was 16.7 days in the second quarter of this year, compared with 16.85 days last year ¨C in Europe, lead time was longer at 19 days.

Average length of stay globally was 2.41 days in Q2 ¨C down slightly from 2.47 days in Q2 of 2024. In Europe, the average stay was 1.95 days in the quarter.

London was the most booked city globally in Q2 for HotelHub ¨C ahead of Paris, New York, Stockholm and Rome.

Paul Raymond, HotelHub¡¯s chief commercial officer, added: ¡°Given the global uncertainty surrounding the recent White House activity, it¡¯s not particularly surprising to see a slight downturn in hotel bookings for business travel in the first half of the year.

¡°However, while the decline in Q2 US bookings is evident, there is room for optimism in other markets. As several countries have more recently signed trade deals with the US, there appears to be a level of stability returning to businesses and we may even see a greater impetus for travel as companies look to realign strategies with the new policies in place.¡±