Tariff Ripple Effect: US Hotel Prices Adjust As Canadian Travel Interest Plummets- Image Credit Unsplash+
Following President Donald Trump’s subsequent decision to implement taxes, fresh kindness information from Lighthouse reveals emerging swings in resort pricing and travel habits. Latest figures suggest mindful responses within the travel business, highlighting early signals of business confusion and changing consumer preferences. Market overview: First prices signalsFollowing President Donald Trump’s subsequent decision to implement tariffs, fresh kindness data from Lighthouse reveals emerging shifts in resort prices and travel behavior. Latest figures suggest mindful responses within the travel business, highlighting first signals of business confusion and changing consumer preferences. Cost trends analysis: Comparing the numbersAcross main US destinations, typical hotel prices have dropped somewhat from only 30 days before. &# 13, Miami 5.5 % decrease&# 13, &# 13, New York 4.7 % decrease&# 13, &# 13, San Francisco 4.3 % decrease&# 13, &# 13, Los Angeles 3.1 % decrease&# 13, &# 13, Orlando 2.9 % decrease&# 13, Blake Reiter, Director of Hospitality Research at Lighthouse, observes,” These immediate pricing adjustments reflect uncertainty as hoteliers adapt quickly to shifting market conditions, with such declines used to drive and secure base levels of demand” .Forward outlook: Mid-term pricing forecasts Year-over-year comparisons also highlight recent softness in US hotel pricing. Data from Lighthouse indicates average advertised hotel prices were down in February (-0.46 % ), March (-2.55 % ), and April (-3.36 % ) compared to the same months in 2024, particularly noticeable within the more price-sensitive three-star segment. Also, new mid-term prices forecasts indicate more price reductions. Comparing hotel charges published on February 17, 2025, with updated prediction from March 24, 2025, resorts across the US show regular upward adjustments for remains scheduled from then through to the end of summer. Reiter notes,” These consistent reductions reflect hotelier caution regarding short-term demand. Hotels appear to be proactively adjusting rates as uncertainty persists. It will be interesting as we continue to monitor these patterns and see if such reductions continue beyond the near-term and develop into a longer-term trend” .Shifting Canadian travel patternsThese hotel pricing trends are accompanied by notable changes in international traveler interest, particularly from Canada. Since the tariff announcement in early 2025, hotel searches from Canada to US destinations have notably declined. The share of Canadian hotel searches for US destinations has fallen to its lowest point in two years. While US destinations made up roughly a quarter of all outbound Canadian hotel search traffic in 2024, this number fell to 19 % in February 2025 and again to 15 % in March 2025. Reiter adds,” The shift in Canadian search patterns is notable, as it represents thousands fewer travelers actively considering the US as a hotel destination. Travelers seem to be reconsidering their options, possibly influenced by recent economic developments “.Lighthouse will continue to track these dynamic market indicators, providing commercial teams with the intelligence needed to stay ahead of evolving travel demand patternsAbout LighthouseLighthouse ( formerly OTA Insight ) is the leading commercial platform for the travel &, hospitality industry. We transform complexity into confidence by providing actionable market insights, business intelligence, and pricing tools that maximize revenue growth. We continually innovate to deliver the best platform for hospitality professionals to price more effectively, measure performance more efficiently, and understand the market in new ways. Trusted by over 65, 000 hotels in 185 countries, Lighthouse is the only solution that provides real-time hotel and short-term rental data in a single platform. We strive to deliver the best possible experience with unmatched customer service. We consider our clients as true partners- their success is our success. This article originally appeared on Lighthouse.
