Skip to content

Search

Latest Stories

USTA: Travel loses $1.8B to shutdown

The loss continues to grow every second

U.S. government shutdown 2025 travel impact

The U.S. lost more than $1.8 billion in domestic travel due to the government shutdown that began Oct. 1, according to the U.S. Travel Association.

Summary:

  • U.S. lost more than $1.8 billion in domestic travel since the Oct. 1 shutdown, USTA reported.
  • The administration views the shutdown as a way to cut costs and reduce waste.
  • Travel spending losses grow each second the government remains closed.

THE U.S. LOST more than $1.8 billion in domestic travel due to the government shutdown that began Oct. 1, according to a real-time cost ticker on the U.S. Travel Association website. Meanwhile, the Trump administration reportedly began laying off more than 4,000 federal employees as the budget standoff continues.


The association’s ticker surpassed $1 billion on Oct. 8 and the loss continues to grow every second, USTA said in a statement.

“This shutdown is doing real, irreversible damage,” said Geoff Freeman, USTA’s president and CEO. “Travelers are facing longer TSA lines and flight delays. Airports are reducing flights and we’ve seen entire control towers go dark. The longer this drags on, the worse the cascade of damage will be—for local communities, small businesses and the country. Congress needs to act now and reopen the government.”

In a Sept. 25 letter to congressional leaders, USTA warned a shutdown could prompt about 60 percent of Americans to cancel or avoid air travel.

Freeman said travel keeps America moving.

“When travel is delayed and services are disrupted, the ripple effects reach every corner of our country,” he said.

Meanwhile, the Trump administration began laying off more than 4,000 federal employees as the budget standoff continues, The Washington Post reported. Trump blamed Democrats for the deadlock and said he plans to “fire a lot” of federal workers he described as “Democrat-oriented.”

"They started this thing," Trump told reporters during an Oval Office event, calling the job cuts "Democrat-oriented, according to India Weekly." Trump’s Republicans hold majorities in both chambers of Congress but need Democratic votes in the U.S. Senate to pass any measure funding the government.

Fox News reported the shutdown costs taxpayers about $400 million a day. Republican senator Joni Ernst of Iowa said that taxpayers were paying “750,000 non-essential bureaucrats not to work.”

However, the administration reportedly sees the shutdown as an opportunity to cut costs and reduce waste, but economists warn it could slow growth and disrupt sectors, including immigration processing.

Separately, the Trump administration introduced new H-1B visa restrictions after adding a $100,000 annual filing fee in September. For employers relying on skilled foreign labor, the H-1B overhaul adds uncertainty to an already unsettled policy environment.

More for you

US Extended-Stay Hotels Outperforms in Q3

Report: Extended-stay hotels outpace industry in Q3

Summary:

  • U.S. extended-stay hotels outperformed peers in Q3, The Highland Group reported.
  • Demand for extended-stay hotels rose 2.8 percent in the third quarter.
  • Economy extended-stay hotels outperformed in RevPar despite three years of declines.

U.S. EXTENDED-STAY HOTELS outperformed comparable hotel classes in the third quarter versus the same period in 2024, according to The Highland Group. Occupancy remained 11.4 points above comparable hotels and ADR declines were smaller.

The report, “US Extended-Stay Hotels: Third Quarter 2025”, found the largest gap in the economy segment, where RevPAR fell about one fifth as much as for all economy hotels. Extended-stay ADR declined 1.4 percent, marking the second consecutive quarterly decline not seen in 15 years outside the pandemic. RevPAR fell 3.1 percent, reflecting the higher share of economy rooms. Excluding luxury and upper-upscale segments, all-hotel RevPAR dropped 3.2 percent in the third quarter.

Keep ReadingShow less