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It’s not just your imagination: things feel different this year in the U.S. travel industry.
Inbound international travel is slowing. Bookings are soft. And for many providers, especially in tourism-heavy states like Florida, California, and New York, there’s growing concern about how to keep demand strong through the rest of 2025.
Several global factors are converging at once, making this a critical moment for U.S.-based travel and hospitality businesses to reevaluate how they attract and retain customers, particularly domestic ones.
Let’s break down what’s happening and how providers can respond proactively.
International Arrivals Are Declining And It’s Happening Fast
Travel advisories issued by Canada, the UK, Germany, and South Korea are already having a measurable impact on inbound tourism. According to Condé Nast Traveler, visitation from Germany fell 22% year-over-year in March, with the UK and South Korea down 15%. Most notably, Canadian travel to the U.S. has dropped significantly following calls from officials to prioritize domestic travel instead (1).
This matters. Canadian tourists have historically played a major role in driving revenue to American destinations, especially in states like California, Texas, Nevada, and Florida. With Canadian carriers like Air Canada and WestJet reducing capacity and U.S. airlines hesitant to share summer projections, there’s a clear signal that the international influx we’ve long relied on is no longer guaranteed (1).
According to the U.S. Travel Association, international visitation to the U.S. dropped 14% overall in March. If that trend continues, it could cost the industry an estimated $21 billion in lost revenue this year alone (2).
Domestic Demand Is Also Softening
While some might hope that a drop in foreign visitors would be offset by domestic travel, data suggests U.S. travelers are also feeling the pinch.
Economic uncertainty is the top concern, with Travel Weekly reporting that 63% of travel advisors cite it as a leading reason for trip hesitancy. Flight bookings are down 10% compared to this time last year, according to Flighthub, an online travel agency. Expedia, in its Q1 report, noted that U.S. booking growth has stalled even as global travel continues to rebound (2).
Southwest Airlines CEO Robert Jordan recently summed it up: “Consumers are waiting to make decisions, including for the summer.” And when they do book, it’s often with cost-cutting in mind. A survey by MMGY shows 24% of travelers are choosing cheaper modes of transportation, and 22% are shortening their stays to manage costs (2).
Why This Is a Wake-Up Call for U.S. Providers
These aren’t just abstract trends, they directly affect your bookings, your margins, and your bottom line.
Whether you operate a boutique hotel in California wine country, a cultural tour company in New Orleans, or an adventure park in Utah, you’re likely seeing more hesitant buyers, more price-sensitive shoppers, and a slower pace of bookings than in previous years.
But here’s the opportunity: while international travel is unpredictable right now, domestic travelers are still looking. They just need more flexible, affordable ways to commit.
Alleviate Some Worries with Clusivi
At a time when many consumers are holding off on travel due to wariness, changing policies, and financial uncertainty, Clusivi at least gives your guests a way to plan and pay in advance – without debt.
Instead of using high-interest credit cards or risky Buy Now, Pay Later options, travelers can use Clusivi’s Plan-to-Pay model to pre-book their trip through structured, automatic installments. It’s not financing – it’s forward-thinking.
And for providers, that means:
- More secure bookings: Travelers can commit earlier with confidence, knowing they’re budgeting in advance
- Fewer cancellations: Structured prepayments keep travelers invested in following through
- Broader reach: Clusivi appeals to cost-conscious consumers who might otherwise delay or skip a trip
By offering Clusivi as part of your booking process, you create a lower-friction path for travelers who want to plan ahead, avoid last-minute credit card bills, and still enjoy meaningful getaways.
The Road Ahead Requires New Tools
This isn’t the year to wait and see what happens. It’s the year to respond with agility and empathy.
International tourism may take time to rebound. Domestic travel is going through its own evolution. But one thing is clear: providers who meet travelers with transparency, affordability, and tools that reduce financial stress will win.
At Clusivi, we believe travel should be accessible, and providers deserve steady revenue, even in uncertain times. Our Plan-to-Pay platform is built to help you lock in bookings, support consumer confidence, and build loyalty through smart financial planning.
Let’s help more people commit to exploring what’s right in their own backyard.
