Share
Laura Walters, Area Director of Revenue Strategy, Dragonfly Strategists, Rising Revenue Optimization Leader Council Member
When rising revenue leaders met earlier this year, I led a conversation centered on uncertainty. Travel patterns were shifting in ways that felt unpredictable, and revenue leaders were working to make sense of cancellations, shortened booking windows, and new risks tied to fluctuating policy.
In breakouts, one group talked about international travelers pulling back from the United States. Cancellations from Canada were a recurring theme, with some reporting up to a 40% decline in demand. Others noted downturns from China, Mexico, and Brazil while seeing stronger bookings from the UK and Europe. The outlook varied, but there was agreement that international business was no longer reliable in the same way it had been.
Domestic travel was also a focus. RLC members shared how weather disruptions and political sentiment were contributing to shorter booking windows. Some suggested exchange rates could have as much influence on cross border travel as tariffs, with creative responses like discounting to offset the gap for Canadian visitors.
Government travel added another layer of complexity. Participants reported groups canceling or scaling back blocks, new contract clauses requiring legal review, and questions about whether per diem rates would shift. These changes were driving up costs and making it harder to forecast group business with confidence.
Many connected the current environment to the early recovery years after Covid. The lesson then still seems relevant: hotels must be scrappy, willing to pivot, and open to new markets when old ones slow down. The group reflected on how quickly strategies that worked for several years can stop working, and how important it is to adjust.
The conversation closed with a reminder that these issues are ongoing. Tariffs may ease, exchange rates may stabilize, and forecasts may adjust, but uncertainty will remain. Leaders agreed that success this year depends on watching signals closely, responding quickly, and being ready to adapt each day.
Read more:
- Are US Tariffs Reshaping the Hospitality Industry (The Hotel Blueprint)
- 2025 Hotel Industry Outlook Midyear Report (HB / Choice)