Online Travel Reservation Services NAICS 561599

Feb 6, 2026 - Trump Policies Take Big Toll on Travel Industry in 2025

• International travel to the US fell in 2025 as global tourism grew, making it the only major destination seeing a decline in international visitors, according to the US Travel Association. Inbound travel dropped about 4% year over year - 11 million fewer visitors and a $50 billion hit to airlines, hotels, restaurants and attractions - while worldwide tourism rose about 4% (per the International Travel Association). The slide reflects a sharp shift in US entry policy under Trump, including expanded travel bans, widespread visa suspensions, and broader social-media vetting, measures that industry groups say have made the US feel less welcoming to foreign travelers. Those policies, coupled with confrontational rhetoric toward allies, have dampened demand from key markets of Canada, Europe and parts of the Middle East. Travel leaders warn the resulting slump could have lasting consequences for US competitiveness, even with potential tailwinds from events like the 2026 FIFA World Cup.
• Riding a significant bounce back after the pandemic, wages in the travel arrangement and reservation industry have been climbing steadily, outpacing growth in most other sectors. High demand after the pandemic, specialized expertise, and a tight labor market are combining to push both short- and long-term wages higher in online travel services. Nonsupervisory employees now earn $33.08 per hour, a 15.9% increase from a year ago as rising online travel bookings required companies to retain and hire experienced staff to handle the increased workflow. While inflation also accounts for a small portion of the increase, a significant share comes from the growing value of digital and customer service skills, like managing complex itineraries and navigating booking platforms. Over the past decade, wages have risen nearly 60%, faster than the 49% increase for all private nonsupervisory positions, driven by long-term expansion, tech adoption, and competition for skilled employees.

• US hotels are increasingly focusing on balancing online travel agency (OTA) partnerships with direct bookings to enhance profitability and guest loyalty. While OTAs like Booking.com offer hotels global reach and drive volume, they come with high commission fees and limited access to guest data. To mitigate these challenges, hotels are employing strategies such as offering value-added incentives like free breakfast or late checkout to encourage direct bookings. Additionally, optimizing hotel websites for mobile devices and ensuring a seamless booking experience can reduce "leakage," where potential direct bookers end up on an OTA. Implementing smart pricing strategies allows hotels to maintain competitive edge without breaching OTA agreements. Collecting guest data during the booking process, even from OTA reservations, enables hotels to personalize services and foster repeat business.
• A recent $9.5 million court settlement between online travel agency (OTA) umbrella company Bookings Holdings and the state of Texas demonstrates a willingness by regulators to crack down on junk fees in hotel bookings. Bookings, owner of OTA sites including Priceline.com and Kayak.com, was accused of hiding questionable costs like resort, amenity, and utility fees into a single, vague, “Taxes and Fees” line item. In addition to the monetary payment, Bookings has to disclose any added fees clearly and upfront. The case could be a bellwether of the effectiveness of the Federal Trade Commission’s 2025 Junk Fees Rule, which mandates added fees be clearly communicated to customers in the hotel and live entertainment industry. The rule in effect ends junk fees for those industries, with the Texas case being the first high-profile use of the new rule.