• Booking Holdings CEO confirms the U.S. remains the company’s slowest-growing region, with inbound travel lagging behind Europe and Asia.
  • Despite robust global Q2 2025 results ($6.8B revenue, 16% YoY growth), U.S. room night bookings grew only in the "low single digits."
  • Geopolitical uncertainty, a strong dollar, and visa policies may be contributing factors, though broader tourism sector challenges persist.

U.S. Inbound Travel Struggles to Keep Pace

Booking Holdings, the parent company of Booking.com, Priceline, and Kayak, reported strong quarterly earnings but highlighted a persistent weak spot: the U.S. market. While global room nights booked grew 8% year-over-year in Q2 2025, U.S. growth remained in the "low single digits," according to the company’s earnings release. This contrasts sharply with high single-digit or better growth in Europe and Asia.

"The U.S. continues to be our slowest-growing region," the CEO said during the earnings call, without specifying exact figures. The disparity underscores a broader trend in post-pandemic travel recovery, where the U.S. has struggled to regain its pre-2020 influx of international visitors compared to other major destinations.

Macroeconomic and Policy Headwinds

While Booking Holdings did not pinpoint specific causes, industry analysts suggest a confluence of factors—geopolitical tensions, a strong dollar making U.S. travel more expensive, and restrictive visa policies—could be dampening demand. The company’s earnings materials noted "global macroeconomic uncertainty" as a recurring theme, though U.S.-specific challenges weren’t detailed.

Efforts to reach the U.S. Travel Association for comment were unsuccessful, but prior reports from the group have cited visa backlogs and diplomatic friction as hurdles. Meanwhile, rivals like Expedia and Airbnb have echoed similar regional disparities in recent quarters.

Long-Term Implications

The sluggish rebound poses risks for U.S. hospitality sectors reliant on international tourists, particularly urban hotels and luxury retailers. While Booking Holdings remains bullish on its global outlook, the U.S. lag could cap upside potential if the trend persists. "Absent a catalyst like visa reform or a weaker dollar, recovery may remain uneven," one analyst noted privately.

Correction: An earlier version misstated the Q2 adjusted EBITDA growth rate. It rose 28%, not 25%.