Major U.S. cities are preparing for a resurgence in business travel.
Major U.S. cities like New York, Los Angeles, and Chicago are preparing for a rebound in business travel despite facing a national decline fueled by international travel drops. While cities invest heavily in business travel infrastructure, hesitations persist among international travelers, leading to significant declines in advance bookings. The emergence of new travel trends focusing on combined business and leisure activities emphasizes strategic engagements in the future. As the industry adapts to changing needs, there’s a notable shift toward creating memorable experiences and addressing wellness in business travel.
New York – Major U.S. cities, including New York City, Los Angeles, Chicago, San Francisco, Houston, Dallas, and Atlanta, are anticipating a significant rebound in business travel. These cities play a vital role in corporate America, providing extensive business infrastructure and essential corporate engagement spaces. Despite their local optimism, a national decline persists, with international business travel dropping by a staggering 22%.
The repercussions of this decline have been evident across the country. New York City has faced missed deals, while Los Angeles experiences empty conference halls. Chicago’s convention centers remain quiet, and San Francisco sees fewer hotel bookings. Houston has faced cancellations, while Dallas endures sluggish activity, and Atlanta registers a decline in international foot traffic.
Travelers are exhibiting hesitation about international business visits, even as cities invest heavily in their business travel sectors. Data collected in April indicates a 9% drop in business travel to the U.S., a stark contrast to a stable first quarter of 2025 that recorded a 7% year-over-year increase in international travelers. Business travel from Western Europe has dwindled by nearly 18%, and visits from Mexico have fallen by almost 12%.
Advance bookings from European travelers for summer 2025 are down 12% compared to the previous year, underscoring growing concerns about the U.S. as a hospitable destination. Reports of negative experiences at U.S. borders, including the detention of legitimate travelers, have influenced perceptions of the U.S. as potentially hostile. Despite these concerns, the emotional significance of in-person interactions has led to a renewed interest in corporate travel, although future trips are expected to be more intentional and planned.
Current travel patterns are shifting towards strategic, high-value engagements rather than the frequent, low-impact trips that characterized the past. A new trend called “bleisure” is emerging, combining business travel with leisure stays and prompting a rising demand for flexible booking options and wellness-oriented venues. Technology continues to play a crucial role in the meetings and events industry, facilitating hybrid events that accommodate both in-person and remote participants.
As businesses seek authenticity, sustainability, and inclusivity in event planning, there is a growing focus on creating memorable and accessible experiences for attendees. Major cities such as San Francisco, Chicago, and Orlando remain leaders in the event industry landscape, bolstered by solid infrastructure and favorable conditions for hosting events.
In San Francisco, the cost of business travel has increased due to rising demand, while the pace of hotel construction has slowed in the aftermath of the pandemic. The city anticipates a 70% increase in hotel bookings driven by convention activity at the Moscone Center compared to the previous year, which is expected to be fueled by significant tech events lined up for the summer.
However, the World Travel & Tourism Council (WTTC) has issued a warning of a potential $12.5 billion loss in international travel spending for the U.S. in 2025. The U.S. is projected to be the only country among 184 analyzed by the WTTC to see a decline in international visitation this year. Current U.S. policies are perceived as deterrents to potential business leaders and international visitors, leading some to opt for remote engagements over in-person meetings.
Corporate travel managers face increasing pressure to justify travel expenditures, particularly amidst economic uncertainties and rising visa concerns. Political rhetoric and stricter visa processes are further alienating foreign visitors and business partners. Additionally, U.S. travel continues to grapple with challenges such as airline disruptions, housing shortages, and public health issues, all of which impact future event attendance and planning.
As the industry adapts, the focus is shifting towards understanding individual attendee needs, with an emphasis on wellness initiatives designed to combat travel fatigue and burnout. In these uncertain times, the evolution of business travel reflects a deeper transformation, leading to a more reflective and strategic approach to travel.
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