U.S. Hotels See Occupancy Hit, Tariffs and Border Policies Can Have 'Chilling Effect'
Photo Credit: An empty hotel hallway. Getty Images / dogayusufdokdok
Skift Take
New travel advisories and border policies may create a "chilling effect" on U.S. hotel occupancy. Border regions already show declines.
Trump’s Impact on Travel
Read how the first 100 days of U.S. President Donald Trump’s actions and policies are shaping the future of travel, and get insights into the industry's evolving response.Following a slight year-on-year increase in February, occupancy levels for the U.S. hotel industry declined in the first two weeks of March, signaling potential vulnerability amid new travel restrictions and heightened international warnings.
The declines were modest, but there are long-term implications for international inbound travel, particularly in regions bordering Canada and Mexico.
Recent reports of potential expanded U.S. travel restrictions have triggered concerns, along with revised travel advisories from countries like Germany and the UK, which warn of potential detention and stricter border controls.
Jan Freitag, national director, hospitality analytics at CoStar, highlighted the past "chilling effect" of such policies.
“Even though you may be able to tra
