International Travel to the U.S. Remains Soft – Can Domestic Demand Fill the Gap?
Photo Credit: People at Times Square, New York City unsplash.com / James Ting
Skift Take
The softening in inbound travel demand – especially from Canada – is being partially offset by domestic travel, which continues to show resilience.
U.S. tourism is navigating the ripple effects of the Trump administration’s new policies and tariffs, but Skift Research's report – The Trump Effect: Skift Travel Health Index Market Analysis – tells a nuanced story.
The Skift Travel Health Index reveals that there was a 2% year-on-year dip in U.S. travel demand in March 2025. That's down, of course, but not a collapse. And while there are several red flags – declines from Canada, volatile flows from Europe – domestic travel could pick up the slack.
Canada Is Pulling BackIs Canada boycotting the U.S.? The data suggest so: There has been a marked drop in Canadian travel to the U.S. this year, with a sharp 22% decline in flight bookings in February, immediately after President Trump talked about making Canada a U.S. state. By March 2025, hotel searches from Canada dropped 43%, while new bookings declined 34% year-on-year.
Instead, Canadian travelers are now shifting southward, with fli
