- RateGain: Summer travel strong, travelers more selective.
- U.S. flight bookings up 13 percent, hotel searches down 16 percent.
- World Cup is driving demand in several host cities.
GLOBAL SUMMER TRAVEL demand remains strong, according to RateGain Travel Technologies. However, higher airfares, geopolitical tensions and economic uncertainty are making travelers more selective.
The report, based on Sojern’s travel intent data, found that about one-third of summer bookings remain, with travelers continuing to prioritize trips but delaying some purchases, particularly hotel bookings.
“This summer is unlike any we’ve seen before,” said Mark Rabe, Sojern’s CEO. “The World Cup has driven meaningful demand into host cities in the U.S. and Canada, but its real effect has been to redistribute demand rather than simply amplify it. Hospitality marketers who understand where intent is building—and where it is softening—will be best placed to capture remaining summer bookings.”
In the U.S., outbound flight bookings are up 13 percent year over year, while hotel searches are down 16 percent, suggesting travelers are booking flights before accommodations. Destination demand has also shifted.
Flight bookings to Canada are up 44 percent year over year, domestic travel is up 15 percent, Asia 19 percent, the Caribbean 12 percent and Europe 8 percent, while bookings to Mexico are down 12 percent, despite its remaining the top international destination for U.S. travelers.
Airfares have risen across regions following conflict in the Middle East, RateGain said. Domestic U.S. fares are up 25 percent year over year, while Central America-to-Central America routes are up 44 percent.
RateGain and Sojern said resilient demand and a significant number of unbooked summer trips leave opportunities for travel suppliers to capture late-booking travelers.
World Cup impact
The FIFA World Cup is driving demand in several host cities, according to RateGain’s FIFA World Cup Index. Flight demand is up 10.4 percent in Houston, 8.8 percent in New York, 8.7 percent in Dallas, 3.2 percent in Toronto and 2.7 percent in Vancouver. Vancouver’s average daily hotel rate is up 17.1 percent.
Not all host markets are seeing gains. Seattle recorded a 20.6 percent decline in flight demand, while Mexico City, Guadalajara and Monterrey also posted year-over-year declines.
International demand for World Cup destinations is led by travelers from the U.K., followed by Brazil, Germany, Japan, Colombia, France and South Korea. Argentina accounts for 2.1 percent of confirmed bookings but 8.2 percent of searches, suggesting additional demand may emerge as the tournament progresses.
Latin America continues to show strong regional momentum, with domestic flight bookings up 38 percent and intra-regional travel up 16 percent. European demand is up 15 percent, while U.S. demand is up 1 percent.
Europe also remains a strong-performing region, driven by intra-regional travel. Domestic flight bookings are up 35 percent, intra-European travel is up 37 percent and international inbound travel is up 11 percent.
Among major European destinations, Spain recorded a 28 percent increase in flight bookings and a 33 percent increase in hotel searches. Italy rose 24 percent and 30 percent, respectively, while France increased 15 percent in flight bookings and 11 percent in hotel searches. Portugal posted 24 percent growth in both categories. The U.K. saw an 11 percent rise in flight bookings, while hotel searches fell 6 percent.
London remains the leading European destination for travelers from Europe, North America and the Middle East and Africa, while Madrid leads among Latin American travelers.
Hotel demand in the Middle East has weakened, with hotel searches from Western Europe down 49 percent year to date and South Asia down 61 percent. In contrast, intra-regional travel remains above 2025 levels, while travel from the Middle East to the U.S. has increased, supported in part by World Cup-related demand.
A recent Priceline report found that Americans are not giving up summer vacations despite rising travel costs, with most cutting spending elsewhere to fund their trips.
