D.C. Tourism Flatlines as Foreign Visitors Fall and Hotel Tax Funds Get Redirected
Summary
Washington, D.C.'s tourism sector is struggling, with visitor numbers barely increasing in 2025 due to a decline in foreign tourists. The city's tourism agency is facing significant budget cuts, and federal government issues are negatively impacting business travel. Hosts in D.C. may experience lower demand.
More from Pricing & Profitability
Q1 2026 saw growth in ADR and occupancy across the US, with ski markets adapting to weather-related demand shifts. Booking windows are shrinking, with some markets seeing them drop by 10% in the last year. Consumer sentiment remains strong, with summer bookings and cancellation rates looking positive.
The airline industry is facing soaring fuel costs, up 56% since the Iran war started, significantly impacting fares. This is leading to fare increases across the board. While not directly about STRs, it's impacting travel expenses, possibly affecting demand and impacting host's guests' travel costs.
Marriott's CEO highlights a shift in travel trends, with a notable rebound in select-service hotels as travelers increasingly opt for drive-to destinations, which is leading to more demand for these accommodations. While luxury and resort hotels still lead, the gap is closing, suggesting a changing landscape for hotel demand in the US.
Curated by Learn STR by GoStudioM