THE U.S. TRAVEL ASSOCIATION wants the federal government to replace pandemic-era restrictions with endemic-focused policies to enable full and free travel. That was one of several subjects Roger Dow, USTA’s outgoing president and CEO, discussed at the Hunter Hotel Conference in Atlanta in March.
In a letter to incoming White House COVID-19 Response Coordinator Ashish Jha, USTA asked to immediately remove the pre-departure testing requirement for all fully vaccinated inbound international arrivals.
"Despite declining hospitalizations and infections, increased vaccination rates and immunity, and a more robust public health infrastructure to manage the virus, the vast majority of pandemic-driven federal travel policies are still in place,” the letter said. “While the public health benefits of these policies have now greatly diminished, the economic consequences continue to grow,"
The association recommended repealing the federal mask mandate for public transportation by April 18. Dow spelled out why in his keynote address at Hunter, saying the government has postponed the decision long enough.
“They kicked the can down the road a month. They were supposed to take a look at masks on March 18, they kicked it down the road to April 18,” Dow said. “I'm hopeful we'll see some action. We've asked to get the masks off. If you look at airlines, they had 6000 passenger incidents last year, they usually have about 200, where they take a passenger off the plane.”
Dow also said the U.S. needs to take other steps to encourage international travel.
“Number one, we have got to get rid of the pre-departure testing,” he said. “In other words, if you're from the U.S., you've got to 24 hours before you get on that plane get a negative test for COVID. Well, that's inhibiting travel like crazy, because people are saying, I'm on a Friday, I get my test, and I'm flying on Saturday, if I test positive, am I going to lose my flight, and I could lose my hotel reservation, all that. So, it's a major inhibitor.”
Dow said other countries, such as the United Kingdom, Greece and the European Union have eliminated the tests. Despite seeing around 600 million people flying on planes last year, he said there have been no incidences of COVID from someone being on a plane.
“You're a lot safer being on a plane than you're at the grocery store,” he said.
Other suggestions from USTA to restore travel include ending “avoid travel” advisories and the use of travel bans, work with other countries to normalize travel conditions and entry requirements and send a clear message to the American public and the world that it is safe to travel again, particularly for vaccinated individuals.
Recommendations from the Centers for Disease Control and Prevention has been “schizophrenic.”
“You never know where they're going. But the bottom line, we've got to get them to stop saying there's a travel ban, that it's not safe to travel,” Dow said. “We're pushing very hard on that.”
On other matters
Dow, who plans to step down from his position at USTA in July, told his audience at Hunter the travel and hotel business is recovering from the pandemic.
“We're probably standing about 78 percent of 2019 levels, but very uneven. Where's that all coming from? Leisure. Domestic leisure is as strong as can be. Unbelievable, if you own hotels and resort areas, beach areas, outdoor mountain areas you're doing phenomenally well. ADR’s through the roof,” Dow said. “It's amazing, but sluggish. As we all know, as business travel is probably 44 percent of 2019 levels and we have two or three enemies when it comes to business travel. One is the corporate CFO, the corporate CFO is saying their corporate table, ‘Hey, look, the last two years we've had no one traveling and look at the money we've made, look at our profits, do we really need all those people traveling?”
Inflation is another “enemy” of the industry, he said. For hotels to face that challenge, Dow said, they will need help from the large hotel brands as well as the government, with changes to brand standards regarding equipment and furniture purchases.
“When you look at where inflation is going, it's also bringing with it the difficulty that so many of you have as developers of getting products, getting approvals,” Dow said. “The cost of a new build right now going up with all these challenges, gas and energy, looking at what the fuel bills, what the costs are going to be are a huge challenge with us. And now, of course, is the disaster in Ukraine with Russia. We just did some research and 63 percent are saying that the gas prices are going to have them changing the way they're going to travel.”
The industry has had some wins over the past year, Dow said, including an extra $250 million in funding for Brand USA, a destination marketing organization that promotes travel to the U.S., in the $1.5 trillion federal spending bill passed in March. USTA also is optimistic about the inclusion in the bipartisan infrastructure spending bill of $5 billion available to states over the next five years to help build out their electric vehicle charging networks.
“We’ve really been kicking the can down the road, talking and talking about it, now we're finally going to do something about it,” Dow said. “It’s really interesting, watching this electric vehicle trend and what that's going to mean to a property with charging stations or a property with a charging station on the highway and how it's going to work out.”
The path forward
USTA in its letter to Jha also urged to develop benchmarks and timelines for a pathway to the new normal by June 1. It suggested implementing effective, risk-based policies at any time if new variants of concern emerge or the public health situation deteriorates.
According to USTA, business travel spending in 2021 was down 56 percent when compared to two years ago and international travel spending was 78 percent below 2019 levels. However, Dow remained optimistic.
“We're going to see it come back. I see travel as a coiled spring. I see we push this thing so tight, that people want to get out and leisure is showing that I mean, what people are spending on leisure travel and what they're doing, they're just getting out like crazy. And same thing’s going to come back with business travel.”
Dow pointed to a recent survey in which 90 percent of Americans said they plan on traveling over the next six months.
“America is ready to move and move for business, so I see it coming back very strong,” he said. “And I think together we're going to write the next chapter of this industry.”
Noble broke ground on StudioRes Mobile Alabama at McGowin Park.
The 10th StudioRes expands Noble’s long-term accommodations platform.
Noble recently acquired 16 WoodSpring Suites properties through two portfolio transactions.
NOBLE INVESTMENT GROUP broke ground on StudioRes Mobile Alabama at McGowin Park, a retail center in Mobile, Alabama. It is Noble’s 10th property under Marriott International’s extended stay StudioRes brand.
“Noble is institutionalizing one of the most resilient and undersupplied segments at the intersection of hospitality, mobility and how people stay,” said Shah. “We are scaling a branded platform to capture secular demand that creates stable cash flow and long-term value.”
In May, Noble acquired 16 WoodSpring Suites properties through two portfolio transactions, expanding its platform in branded long-term accommodations.
Noah Silverman, Marriott International’s global development officer, U.S. & Canada, said breaking ground on the 10th StudioRes with Noble reflects the brand’s growth and the companies’ three-decade partnership.
“With both companies’ expertise in long-term accommodations, Marriott’s distribution channels, and the power of our nearly 248 million Marriott Bonvoy members, we are confident StudioRes is uniquely positioned to generate customer demand at scale, drive performance and sustain long-term growth,” he said.
Meanwhile, Marriott has more than 50 signed StudioRes projects, about half under construction, the statement said. The first StudioRes opened in Fort Myers, Florida.
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AHLA Foundation is partnering with ICHRIE and ACPHA to support hospitality education.
The collaborations align academic programs with industry workforce needs.
It will provide data, faculty development, and student engagement opportunities.
THE AHLA FOUNDATION, International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration work to expand education opportunities for students pursuing hospitality careers. The alliances aim to provide data, faculty development and student engagement opportunities.
Their efforts build on the foundation’s scholarships and link academics to workforce needs, AHLA said in a statement.
"We're not just funding education—we're investing in the alignment between academic learning and professional readiness," said Kevin Carey, AHLA Foundation president and CEO. "These partnerships give us the insights needed to support students and programs that effectively prepare graduates to enter the evolving hospitality industry."
ACPHA will provide annual reports on participating schools’ performance, enabling the Foundation to direct resources to programs with curricula aligned to industry needs, the Foundation said.
Thomas Kube, incoming ACPHA executive director, said the partnership shows academia and industry working together for hospitality students. The collaboration with ICHRIE includes program analysis, engagement through more than 40 Eta Sigma Delta Honor Society chapters and faculty development.
“Together, we are strengthening pathways to academic excellence, professional development and industry engagement,” said Donna Albano, chair of the ICHRIE Eta Sigma Delta Board of Governors.
U.S. holiday travel is down to 44 percent, led by Millennials and Gen Z.
Younger consumers are cost-conscious while older generations show steadier travel intent.
76 percent of Millennials are likely to use AI for travel recommendations.
NEARLY 44 PERCENT of U.S. consumers plan to travel during the 2025 holiday season, down from 46 percent last year, according to PwC. Millennials and Gen Z lead travel intent at 55 percent each, while Gen X sits at 39 percent and Baby Boomers at 26 percent.
PwC’s “Holiday Outlook 2025” survey found that among those not traveling, about half prefer to celebrate at home and cost concerns affect 43 percent, rising to 50 percent for Gen Z non-travelers. Visiting friends and relatives remains the main reason for holiday travel, cited by roughly 48 percent of those planning trips.
Younger consumers are more cost-conscious, while older generations show steadier travel intent. This split influences travel operators’ planning: younger travelers may require clear value, bundled perks and flexible options, whereas older travelers respond to reliability and convenience. Despite overall spending pressure, travel remains a key priority, reflecting its social and emotional importance during the holidays.
PwC surveyed 4,000 U.S. consumers from June 26 to July 9, with 1,000 each from Gen Z, Millennials, Gen X and Boomers, balanced by gender and region.
Generational spending patterns
Gen Z plans a 23 percent reduction in spending after last year’s 37 percent surge, while Boomers expect a 5 percent increase. Millennials are largely flat, down 1 percent and Gen X edges up 2 percent. Overall holiday spending is down 5 percent, with gift spending falling 11 percent, while travel and entertainment budgets remain stable, increasing 1 percent.
Households with children under 18 plan to spend more than twice as much as households without, averaging $2,349 compared to $1,089, highlighting the focus on family-centered experiences.
For travel and hospitality operators, these patterns suggest stronger conversion potential among older cohorts with steadier budgets and the need for clear value and cost transparency for younger travelers. Consumers are prioritizing experiences and togetherness over material gifts. Flexible fares, transparent pricing and bundled benefits such as Wi-Fi, breakfast, or late checkout can reinforce value and encourage bookings, especially among younger demographics. Gen Z’s pullback makes price-to-experience ratios decisive.
AI, timing and travel strategy
About 76 percent of Millennials say they are likely to use AI agents for recommendations, signaling a shift to “assistant-first” travel discovery. Operators must provide structured, AI-readable content, including route maps, fees, loyalty policies and inventory availability. Brands that do not may be invisible in AI-driven search and recommendation systems.
This year’s late Thanksgiving on Nov. 27 compresses the holiday booking window. Short-haul visiting-friends-and-relatives trips may see bunched reservations, increasing demand for early inventory visibility, simple cancellation policies and accurate last-minute availability. Operators should hold a portion of inventory for late bookings, streamline mobile checkouts and maintain flexible policies to capture last-minute travelers.
Strategies should be generationally targeted. Boomers and Gen X respond to comfort, reliability and multi-generational options, while Millennials and Gen Z require clear value and AI-optimized offers. Focusing on VFR travel through “home for the holidays” packages, flexible dates, partner transport and easy add-on nights can capture demand in key residential hubs.
Despite overall spending declines, travel remains a priority. Operators that deliver transparent value, AI-ready content and offers tailored to each generation can maintain bookings, convert last-minute demand and meet consumers’ evolving holiday expectations.
A TravelBoom Hotel Marketing report found that Americans continue to prioritize travel despite inflation and economic uncertainty, but with greater financial caution. About 74.5 percent plan a summer vacation and 17.5 percent are considering one, showing strong demand linked to careful budgeting.
Indian visitors to the U.S. fell 8 percent to 210,000 in June 2025, according to NTTO.
President Trump’s 50 percent tariff on Indian goods took effect on August 27.
The U.S. has seen a decline in international visitors in recent months.
INDIAN VISITORS TO the U.S. fell in June 2025 for the first time this millennium, excluding the Covid period, according to the U.S. Commerce Department’s National Travel and Tourism Office. About 210,00 Indians visited the U.S. in June, down 8 percent from 230,000 in the same month last year.
The provisional figure for July shows a 5.5 percent drop from the same month last year, Economic Times reported, citing NTTO data. Meanwhile, President Donald Trump’s 50 percent tariff on Indian goods took effect on August 27, while Prime Minister Narendra Modi urged citizens to follow the “Vocal for Local” policy in his Aug. 15 Independence Day address. Beyond exports like textiles, the measure is likely to affect travel, tourism and hospitality in both countries.
The U.S. has seen a decline in international visitors in recent months, the Times said.
NTTO reported that total non-U.S. resident arrivals fell 6.2 percent in June 2025 from June 2024; 7 percent in May; 8 percent in March and 1.9 percent in February. January rose 4.7 percent and April 1.3 percent over the same months last year.
India is the fourth-largest source of international visitors to the U.S. Excluding Mexico and Canada, which share a land border, India is the second-largest overseas source after the UK.
“Combined, these top five markets, with Brazil fifth, accounted for 59.4 percent of total international arrivals in June,” NTTO said.
Travel industry leaders say it is too early to blame the drop in Indian visitors on stricter visa rules under Trump’s second term, which coincided with strained India-U.S. ties; the impact could rise if the policy continues. The U.S. mostly issues 10-year multiple-entry visitor and B1 and B2 visas, allowing holders to continue traveling, but new delays or stricter issuance norms could affect arrivals after a time lag.
“We are seeing a visible impact on the student segment this year due to delays in visa issuance, even after people have secured college admission,” a travel agent was quoted as saying in the report. “Historically, the biggest categories of visitors from India to the U.S. have been those visiting friends and relatives, business and students. The U.S. has never been a top leisure destination for Indians; that space is led by Southeast Asia, the Middle East and Europe, with North America following. Right now, apart from students, we are not seeing a significant impact on other segments, but if new visa issuances are affected, they will also be hit after a time lag.”
With an Indian diaspora of more than 5 million, the U.S. sees strong travel demand from India. NTTO data shows that every June since 2000 had recorded a year-on-year increase until 2025 broke the trend.
April saw high outbound travel from India. According to the tourism ministry, 2.9 million Indians traveled abroad, with the most going to the UAE, followed by Saudi Arabia, Thailand, Singapore and the U.S.
“But after May and June, travel was hit by the Pehelgam terror attack, closure of Pakistan airspace (which continues for Indian carriers and vice versa) and the Air India Ahmedabad crash,” a travel industry leader told the Times. “Every destination, especially in the west, was affected. The drop to the U.S. may not be in isolation, given how quickly western destinations were impacted.”
Global hotel RevPAR is projected to grow 3 to 5 percent in 2025, JLL reports.
Hotel RevPAR rose 4 percent in 2024, with demand at 4.8 billion room nights.
London, New York and Tokyo are expected to lead investor interest in 2025.
GLOBAL HOTEL REVPAR is projected to grow 3 to 5 percent in 2025, with investment volume up 15 to 25 percent, driven by loan maturities, deferred capital spending and private equity fund expirations, according to JLL. Leisure travel is expected to decline as consumer savings tighten, while group, corporate and international travel increase, supporting RevPAR growth.
Major cities continue to attract strong demand and investor interest, particularly London, New York and Tokyo. APAC is likely to post the strongest growth, fueled by recovering Chinese travel, while urban markets remain poised for continued momentum.
Lifestyle hotels are emerging as the new “third place,” blending living, working and leisure. The trend is fueling expansion into branded residences and alternative accommodations. JLL said investors must weigh regional performance differences, asset types and lifestyle trends when evaluating opportunities.
Separately, a Hapi and Revinate survey found fragmented systems, inaccurate data and limited integration remain barriers for hotels seeking better data access to improve guest experience and revenue.