Holidaymakers from countries most affected by US President Donald Trump’s trade tariffs are increasingly opting against vacations in the United States, while travellers from the UK and US are showing a growing preference for domestic holidays amid economic concerns, according to data from hotel search platform Trivago.
Johannes Thomas, chief executive of Trivago, told the PA news agency that the company has recorded double-digit declines in hotel bookings to the US from travellers in Canada, Mexico, and Japan—nations significantly impacted by the ongoing trade disputes. This shift suggests a strong correlation between economic policies and tourism decisions, with travellers from tariff-hit countries redirecting their holiday spending to other destinations.
Demand from German travellers to the US has also declined, albeit at a single-digit rate, although bookings from UK travellers to America have remained largely steady.
President Trump has imposed tariffs affecting more than 180 countries, including early targets such as Canada and Mexico. While many of these “reciprocal” tariffs were paused for 90 days following financial market instability, the economic uncertainty persists. Germany, as Europe’s largest economy, faces particular challenges from these trade measures and the consequent threat to its export sector.
Thomas further explained that US travellers themselves are reducing holiday expenditures amid economic uncertainty linked to the tariffs. “If you look at the different markets, the US tends to be more sensitive to uncertainty,” he said. “People there are more connected to the stock market and often carry higher debt levels, making them more vulnerable to economic developments.”
Trivago’s booking data reveals that Americans are increasingly opting for lower-cost accommodation and shorter trips, reflecting a shift towards more budget-conscious travel.
The German-based company, majority-owned by Expedia, also highlighted a notable rise in domestic travel within the UK and US. In the UK, bookings for domestic trips during the key summer months of July to September surged by 25% year-on-year. Thomas noted, “In times of uncertainty, people tend to stay closer to home.”
Among UK staycation destinations, London remains the most popular, followed by Edinburgh, where demand has increased by nearly 30%, as well as York, Blackpool, and Manchester.
Despite the global economic headwinds, overall travel demand among Britons has remained resilient, with a 16% increase in total bookings for the peak quarter ending in September.
