Hotel Bookings Remain Strong Despite Economic Headwinds: AHLA Survey Provides Holiday Outlook
Summary: New data from the American Hotel & Lodging Association (AHLA), conducted by Morning Consult, confirms that hotels remain the top lodging choice for American travelers, with half of all U.S. adults planning overnight leisure travel before the end of the year. The survey indicates strong performance for midscale and high-end properties, as nearly four in five hotel guests choose these segments. However, the report also shows that rising costs are a significant concern, with 45% of respondents citing inflation as the top reason for scaling back travel plans. For hospitality professionals and suppliers, these findings underscore the need to balance robust service delivery—especially for high-end guests—with strategies to address price sensitivity and economic uncertainty.
The 2025 Holiday Outlook: American Travelers Choose Hotels, But Inflation Looms
A new survey commissioned by the American Hotel & Lodging Association (AHLA) and conducted by Morning Consult offers a crucial snapshot of American travel intentions for the final months of the year, providing valuable data for hotel operators and the suppliers who support them.
The key takeaway? Despite continued economic headwinds, hotels remain the overwhelming lodging preference for both leisure and business travelers.
Hotel Preference and Segment Strength
The survey found that fully half of all U.S. adults plan to travel overnight for leisure before the end of the year. Furthermore, nearly one-third (31%) of employed adults anticipate traveling overnight for business.
For both these groups, hotels are the go-to choice:
- 63% of business travelers choose hotels.
- 44% of leisure travelers choose hotels.
More importantly for property owners and suppliers, the data points to segment strength at the higher ends of the market: nearly four in five hotel guests plan to stay in midscale or high-end properties. This trend underscores the importance for suppliers to maintain a focus on premium products and services that cater to the elevated expectations of guests in these segments—encompassing everything from high-quality amenities and furnishings to advanced in-room technology.
Key Travel Drivers and Opportunities
The holiday season remains a dominant driver for travel, with 34% of Americans expecting to travel for Thanksgiving and 37% planning Christmas trips.
However, hotels see particularly strong preference among specific leisure travelers:
- Travelers on romantic getaways are especially likely to choose hotels (53%).
- Those on solo adventures also show a high likelihood of choosing hotels (48%).
This highlights a clear opportunity for targeted marketing by hoteliers and niche product development by suppliers. For instance, midscale and high-end properties catering to romantic or solo travelers should ensure their in-room services and amenities (such as spa-like toiletries, advanced connectivity, or high-end bedding) meet the discerning needs of these profitable segments.
The Elephant in the Room: Economic Uncertainty
While the sentiment for travel remains positive—as AHLA President & CEO Rosanna Maietta notes, “Americans want to travel, and they overwhelmingly trust and depend on hotels”—the findings clearly show that rising costs are a persistent concern.
The primary factor cited for travelers scaling back their plans is rising costs across the economy (45%). In fact, nearly half of respondents (49%) said inflation could make them less likely to travel overnight in the months ahead. This concern is real, even as 46% still plan to take an overnight family trip.
What this means for the industry:
- For Hoteliers: The need to demonstrate value is paramount. Even high-end guests are price-sensitive. This involves ensuring every dollar spent delivers a superior experience—from seamless check-in to impeccably clean rooms.
- For Suppliers: Providers of operational solutions and cost-saving technology (like advanced energy management, water conservation, or AI-powered labor solutions) have a strong value proposition, as hotels look for ways to offset inflationary pressures without sacrificing quality.
The challenge for the hospitality industry through the close of 2025 is clear: maintain operational excellence to support the strong demand in the midscale and high-end segments while simultaneously employing smart strategies to manage the cost concerns of the traveling public.
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