US Tourism Nosedive as Canada, Mexico, Brazil, France, and Japan Flee to New Travel Destinations While Expedia, Airbnb, and Hilton Report Booking Collapse Amid Tariff Turmoil – Travel And Tour World

US is facing a sharp tourism nosedive as travelers from key markets—Canada, Mexico, Brazil, France, and Japan—turn away in favor of destinations perceived as more stable or welcoming, such as Latin America, Europe, and Asia. Weighed down by tariff tensions, rising economic anxiety, and growing backlash over U.S. border policies and political rhetoric, international interest in the U.S. has plummeted. Major travel companies including Expedia, Airbnb, and Hilton have reported a collapse in bookings and reduced guidance for the year, highlighting a broader retreat in both inbound and domestic travel. Credit card data from Bank of America further confirms the trend, showing declining spending on airfare and lodging amid weakening consumer confidence, signaling what may be the industry’s first major slowdown since the explosive “revenge travel” rebound that followed the COVID-19 pandemic.

Foreign Backlash, Economic Anxiety, and Slowing Demand Trigger First Major Travel Decline Since COVID-19 Recovery

The U.S. tourism industry is facing its most significant slump since the pandemic-era rebound, as travelers from key international markets like Canada, Mexico, Brazil, France, and Japan sharply reduce visits to the United States. Major travel and hospitality companies, including Expedia, Airbnb, and Hilton, are reporting noticeable declines in bookings and weakening demand across both domestic and inbound travel sectors.

International Travelers Divert to Other Regions

A growing number of international travelers are choosing alternative destinations in response to rising political tensions, tariff disputes, and economic uncertainty in the U.S. According to Expedia, travel bookings into the U.S. fell by 7% in the first quarter of 2025, while bookings from Canada alone plunged nearly 30%.

“Europeans are traveling less to the U.S., but more to Latin America,” said Expedia CEO Ariane Gorin during a call with investors. The shift indicates a broader trend where foreign tourists—particularly from traditional source markets like France, Japan, and Brazil—are opting for destinations perceived as more affordable or politically stable.

Tariff Tensions and Border Concerns Spark Retreat

Industry experts attribute the retreat to escalating economic pressures and diplomatic friction. The U.S. Travel Association highlighted anxiety surrounding the Trump administration’s new round of tariffs and increasingly aggressive border policies. These factors have deterred many international visitors from choosing the U.S. as a preferred destination in early 2025.

Public dissatisfaction abroad is intensifying. In Canada, criticism erupted over controversial remarks by President Trump, who referred to the country as “the 51st state,” prompting widespread indignation and a reported decrease in cross-border travel. U.S. and Canadian government data both confirm a steep drop in land crossings from Canada, further affirming the regional pullback.

Consumer Confidence Sinks, Domestic Travel Falters

Not only is inbound travel weakening, but domestic demand is also softening amid a broader consumer spending slowdown. Bank of America reported continued declines in credit card spending on flights and lodging during March and April, citing falling consumer confidence and reduced appetite for discretionary purchases.

Despite Americans still spending on non-essential services like dining out, they appear increasingly hesitant to splurge on travel. The U.S. consumer confidence index fell for the fifth straight month in April, reaching its lowest point since the start of the pandemic.

Expedia, Airbnb, Hilton Sound the Alarm

The economic impact of this downturn is rippling through the core of the U.S. travel sector. Expedia Group reported a quarterly revenue of $2.99 billion—falling short of Wall Street expectations—and warned of even softer U.S. demand in April. Its shares dropped more than 7% on Friday.

Meanwhile, Airbnb noted that while foreign travel to the U.S. only represents 2–3% of its overall business, even that sliver is shrinking. “Canadians are traveling at a much lower rate to the U.S., but they’re traveling more domestically or to Mexico, Brazil, France, and Japan,” said CFO Ellie Mertz.

Hilton Hotels also revised its full-year outlook downward, now expecting revenue per available room to grow between 0% and 2%, down from its original forecast of 2% to 3%. CEO Christopher Nassetta confirmed that international bookings at U.S. hotels dropped significantly, especially from travelers in Canada and Mexico.

U.S. Entry Numbers Reflect Downturn

Government figures support these trends. The U.S. Department of Commerce revealed that just 7.1 million overseas visitors entered the country in the first three months of 2025—a 3.3% decline from the same period in 2024. Notably, this number excludes land crossings from Mexico and Canada, where data also shows steep declines.

The slowing momentum marks the first clear indication that the post-COVID travel boom—often dubbed “revenge travel”—has begun to plateau. Experts suggest the U.S. market may face a prolonged adjustment period as both international and domestic travelers reconsider their plans due to financial pressure and geopolitical unease.

US tourism is plunging as travelers from Canada, Mexico, Brazil, France, and Japan shift to alternative destinations amid rising tariffs, border tensions, and economic uncertainty, prompting Expedia, Airbnb, and Hilton to report collapsing bookings and weakening demand.

Outlook for the Rest of 2025

Despite the downturn, some industry leaders remain cautiously optimistic. Hilton’s CEO noted that if tariff concerns and economic uncertainty begin to subside in the coming quarters, travel demand could rebound in the second half of the year. However, with a shifting global tourism landscape and continued volatility in U.S. policies, recovery is anything but guaranteed.

Until then, the U.S. travel sector must grapple with weakening visitor flows, shifting destination preferences, and an increasingly skeptical global traveler base.