U.S. Travel Is Slowing, Canada Speeds Up

Key Points

• U.S. travel growth is slowing, with only a 1% annual increase in July 2025, mainly due to a drop in inbound travel and particularly fewer Canadian visitors.
• U.S. hotels are seeing declining performance, with a 5% year-on-year decrease and lower growth forecasts, while American domestic travel sentiment remains strong.
• Canada's travel sector is booming, led by domestic travel, a 9% increase in hotel performance, and record-high occupancy driven by major events.

Summary

The Skift Travel Health Index for July 2025 highlights diverging travel trends in North America, with U.S. travel growth slowing due to reduced inbound tourism, especially from Canada, resulting in weaker hotel performance and lower growth forecasts. In contrast, Canada's travel sector is experiencing record growth, fueled by a surge in domestic travel and major events boosting hotel occupancy. Despite these contrasting trends, overall traveler sentiment in both markets remains resilient.