Airbnb’s Political Spending, U.S. Hotels’ Health, and Falling Tourism to the U.S.
Photo Credit: Portrait of Airbnb CEO Brian Chesky. Airbnb
Skift Take
Today’s episode looks at Airbnb in Washington D.C., prospects for hotel growth in the U.S., and declining tourism there, too.
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Second-quarter earnings reports revealed that U.S. hotels are seeing limited growth while the gap between luxury and budget hotels is growing, reports Senior Hospitality Editor Senior Sean O’Neill.
O’Neill writes most U.S.-focused companies reported flat to slightly negative revenue per available room growth, while companies with international exposure showed stronger performance. U.S. hotel revenue per available room growth is projected to be -0.1% for this year, according to CoStar.
Luxury properties saw their revenue per available room grow 4% to 7%, while economy midscale hotels fell 1% to 3%. O’Neill notes the gap showed up across every major chain.
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Next, Airbnb has upped its lobbying spending to win over policymakers — so much so that spending is cutting into profit margins, reports Executive Editor Dennis Schaal.
Airbnb’s shareholder letter said it anticipates its profit margins in the third quarter will be lower than what it was last year. That’s due to investments in new products and increased policy initiatives. Airbnb spent a little over 600,000 dollars on lobbying in the U.S. alone during the first half of 2025, a roughly 30% increase from last year.
Schaal writes Airbnb views its sponsorship of global events, such as the Olympics and the World Cup, as a way to build better relations with lawmakers and government officials.
Finally, the U.S. tourism slide continued in July, as eight of the U.S.’ top 10 overseas markets registered year-over-year declines, writes Managing Editor Lex Haris.
Overseas visits to the U.S. fell roughly 3% in July, according to the National Travel and Tourism Office. Arrivals from Germany, China, and Switzerland all decreased double digits. Haris notes visits to the U.S. have fallen in five or the past six months, with April being the lone exception.
The U.S. government’s data does not include arrivals from Canada and Mexico, the country’s two largest inbound markets. Air travel by Canadians to the U.S. fell 22% in June while car crossings dropped 33%.
