Leisure travel to the U.S. is down, but business bookings are up

SAP Concur data reveals the U.S. was the top global business travel destination in H1 2025, accounting for 15% of international bookings and experiencing a 1% increase in inbound volume year-on-year, despite broader leisure travel declines. Conversely, outbound international business travel from the U.S. decreased 2.3% year-on-year, though both shifts are partly attributed to seasonal patterns. International business airfares remained stable at an average of $1,682, with U.S. travelers facing the highest costs. This indicates sustained inbound corporate activity to the U.S. while U.S. firms moderately reduce their international travel.

Analysis

Data from an SAP Concur report for the first half of 2025 indicates a notable divergence in U.S. business travel trends. The U.S. remains the premier global destination, capturing 15% of all international business travel bookings and seeing inbound volume increase by 1% year-on-year. This stability, particularly the steady flow of travel from Canada, underscores the U.S.'s continued importance for corporate interests despite a reported drop in leisure travel. However, this contrasts sharply with a 2.3% year-on-year decline in outbound international business travel from the U.S., which accelerated from a 1% drop in Q1 to 3.8% in Q2. While the report attributes this deceleration partly to seasonal patterns, it coincides with a significant slowdown in global business travel growth, which fell from 4.5% in Q1 to 0.6% in Q2. Furthermore, international airfares have stabilized at an average of $1,682, but American firms face the highest costs, with an average ticket price of $2,675. This suggests that while the U.S. remains a critical hub for inbound business, American corporations may be curtailing international travel due to cost pressures or broader economic uncertainties, a trend consistent with projections that overall business travel spending will not reach pre-pandemic levels until after 2028.

Key Decisions for Investors

• Investors should consider overweighting exposure to U.S. domestic-focused hospitality and airline stocks that benefit from resilient inbound international business travel.
• The 2.3% decline in outbound U.S. business travel warrants caution for international carriers and hotel groups that depend heavily on high-margin American corporate clients.
• The sharp deceleration in global business travel growth from 4.5% in Q1 to 0.6% in Q2 should be monitored as a key risk indicator, as it may signal a broader corporate spending pullback beyond the seasonal effects mentioned in the report.
• Analyze the margin impact of high travel costs on U.S. multinational corporations, as the premium paid for international flights may continue to suppress outbound travel budgets.