The Future of U.S. Travel: What 2025 Holds and How 2026 Will Rebound

Published on October 26, 2025

With 2025 right around the corner, the U.S. travel industry expects slower growth than the previous years. There are definitely some economic warning signs mainly in regards to inflation, but one thing is for certain: Americans will always love to travel. Even though the forecast predicts a small decline in international travel for 2025, the years right after will bring a major increase in domestic leisure travel and international travel, especially 2026 and onward. This outlines the most important trends that will impact travel in the U.S. in the next few years to help you plan your next getaway accordingly.

U.S. Travel Spending: Growth with a Dip in International Visits

According to the U.S. Travel Fall 2025 update, total U.S. travel spending is projected to grow 1.1% in 2025, reaching $1.35 trillion. Although this growth rate is modest, it’s important to note that the travel industry is still poised for a strong rebound starting in 2026. By 2029, the forecasted total will increase to $1.49 trillion, driven by a steady recovery and upcoming mega-events.

While domestic leisure travel is projected to continue its rise, international inbound travel will experience a decline in 2025, falling by 6.3% to 67.9 million visitors. This is the first decrease in inbound international visits since 2020. Factors such as the ongoing global economic conditions, shifting consumer behavior, and even a decrease in visits from neighboring Canada are contributing to this dip. However, international travel is expected to bounce back strongly by 2026, with forecasts showing a 3.7% increase, reaching 70.4 million visits.

Domestic Leisure Travel: A Stronghold for U.S. Tourism

The real driver of U.S. travel spending remains domestic leisure travel. Even amidst concerns about inflation and the broader economic climate, Americans are continuing to prioritize vacations. In 2025, domestic leisure travel is forecast to grow 1.9%, reaching a total of $895 billion. This sector, which includes everything from weekend getaways to long vacations, accounts for the largest chunk of U.S. travel spending.

One of the reasons for the sustained growth in domestic travel is that prices for travel-related services, including hotels, dining, and transportation, have remained relatively stable compared to the overall economy. Even with economic uncertainty, leisure travelers are still finding ways to enjoy their vacations without significant cost increases.

For travelers planning domestic trips, this growth means more options and experiences than ever before. Whether you’re exploring national parks, coastal destinations, or city breaks, there’s no shortage of opportunities to explore the U.S. While international travel may be slightly lower in 2025, U.S. destinations are gearing up to offer memorable experiences to domestic travelers.

The Slowdown in International Travel: What to Expect in 2025

In stark contrast to domestic travel, international inbound travel is expected to decline for the first time since 2020. A projected decrease of 6.3% is expected for 2025, with inbound travel from countries like Canada seeing the sharpest drop. This decline is largely attributed to global economic factors, visa challenges, and the changing dynamics in international tourism.

Despite these challenges, international inbound travel remains a significant part of the U.S. tourism landscape, contributing $173 billion in travel spending in 2024. Even with the expected decrease in 2025, the U.S. travel industry is optimistic about future prospects. The forecast for 2026 shows a 3.7% increase in international visits, driven by major events such as the FIFA World Cup and the America 250 celebrations.

For international travelers planning a trip to the U.S., 2026 and beyond offer exciting opportunities. The U.S. will host several mega-events that are sure to draw large numbers of international visitors. The 2026 FIFA World Cup, the 250th anniversary of the United States in 2026, and the 2028 Summer Olympics in Los Angeles are just a few of the events that will spark travel demand to the U.S. The decade of mega-events offers a unique chance to visit the U.S. during some of the most significant celebrations in the country’s history.

The Future of International Travel: A Strong Recovery

While 2025 may see a decrease in international inbound travel, the U.S. travel industry is looking ahead to the mega-events of the coming years, which are expected to bring record levels of international visits. By 2026, inbound travel is projected to rise to 70.4 million visits, and by 2029, international travel to the U.S. could surpass historic highs, reaching 81.9 million visitors.

In particular, major events like the FIFA World Cup, America’s 250th anniversary, and the 2028 Summer Olympics are expected to drive an influx of visitors from around the world. These events, coupled with continued improvements in travel infrastructure and visa processing, will help the U.S. tourism industry rebound strongly.

For travelers planning to visit the U.S. in the coming years, these events provide the perfect opportunity to experience the country’s culture and history while attending world-class sports events and celebrations. It’s a fantastic time to visit U.S. cities like Los Angeles, Miami, New York, and Washington, D.C., as they prepare to host visitors from around the globe.

Business Travel: Gradual Recovery Expected

Business travel is expected to recover at a more muted pace in 2025, with spending projected to grow by 1.4%. However, this growth is still slower than leisure travel, which is growing at a faster pace. Group travel for business purposes is expected to rise at a slightly higher rate than individual business trips. Despite this slower growth, the longer-term outlook for business travel is optimistic, with projections showing a stronger recovery from 2027 through 2029 as the overall economy improves.

In the business world, the continued expansion of virtual and hybrid work environments may play a role in tempering the return of business travel. That said, the need for in-person meetings, conferences, and networking events is expected to remain strong, and business travel will continue to be an important driver of the U.S. economy.

Challenges and Risks for the Travel Industry

Although the future of U.S. travel looks promising, challenges remain. The risks of economic uncertainty and potential disruptions to international travel are significant concerns for the industry. Consumer sentiment remains cautious, and if economic conditions deteriorate further, travel spending may be affected.

Additionally, the U.S. is facing challenges that could further reduce international travel, including potential increases in visa fees, longer wait times for visa applications and renewals, and negative sentiment toward the U.S. in key international markets. These factors could contribute to a further decline in inbound international visits, especially from countries where the U.S. faces political or diplomatic challenges.

However, the U.S. Travel Association is working to address these issues by advocating for more streamlined visa processes and ensuring that international travelers have an easy and welcoming experience when visiting the U.S. Despite these hurdles, the U.S. travel industry is poised for a strong recovery, especially in the years following 2025.

Conclusion: A Promising Future for U.S. Travel

The U.S. travel industry remains optimistic about the future. Besides the challenges of a slower growing international inbound market in 2025, the U.S. travel industry also has domestic leisure travel which has become a stronger growing segment of the industry. The international travel outlook for 2026 is also exciting and full of opportunities because of the FIFA World Cup and the 250th anniversary of America celebrating and showcasing the country.

If your travel plans include the U.S. in the next few years, the outlook is positive no matter the reason for your travel. Business, leisure, and mega-landmarks provide valuable opportunities for enjoying the diverse places and experiences that the U.S. offers. The country has an assortment of standout monuments, active downtowns, and countless multicultural activities that affirm America’s status as a premier travel destination.