Spending and visitation trends

Visitor spending growth in 2025 was driven mainly by domestic travelers, who accounted for about 82% of total travel expenditure, underscoring how in‑state and inter‑state leisure and business trips are now the core engine of California’s tourism economy. International visitors, by contrast, spent about $25 billion, roughly $1 billion less than in 2024, dampened by a stronger‑dollar environment, softer airlift from some key markets, and lingering travel‑policy uncertainty.

Even with slightly lower international arrivals, California still recorded strong hotel and short‑term‑rental‑related spending, with guests staying in accommodations generating about $83 billion in 2025, up 2.7% year‑on‑year, signaling robust demand for overnight trips and longer‑stay experiences across urban, coastal, and wine‑country destinations. Some major cities such as San Francisco also reported visitor‑spending highs, with the city’s tourism revenue reaching $14.2 billion in 2025, surpassing its pre‑pandemic record in nominal terms though lagging slightly once inflation is factored in.

Job growth and industry resilience

The travel sector’s strength translated into job gains, with tourism adding roughly 4,350 travel‑related jobs in 2025, pushing total tourism employment in the state to about 1.2 million workers, a modest but stable 0.4% increase on the prior year’s figure. While this is still below the pre‑pandemic employment peak of around 1.2 million in 2019, it shows that the industry is on a steady‑recovery path, anchored by a mix of lodging, food service, transportation, and attractions, much of which cannot be outsourced and therefore helps support local‑payroll stability.

At the same time, analysts note that the sector entered 2025 with challenges, including a projected 1% year‑on‑year drop in total visitation to about 268 million trips, reflecting both a forecasted 9.2% reduction in international arrivals and a shift toward higher‑value, fewer‑but‑longer stays rather than sheer volume growth. Despite this, the combination of rising spending per trip and solid domestic‑travel demand has allowed California to maintain record‑high tourism revenue and employment levels, reinforcing its status as the U.S.’s travel‑economy leader.

Key Points

• California generated $158.9 billion in travel spending in 2025, the largest tourism‑industry revenue of any U.S. state and a 1.7% increase over 2024.
• Domestic travelers drove the majority of spending (about 82%), while international spending declined by about $1 billion to $25 billion, dragged down by a strong dollar and reduced airlift from some markets.
• The state added roughly 4,350 tourism‑related jobs in 2025, bringing total tourism employment to about 1.2 million, with much of the hiring concentrated in lodging, food service, and attractions.
• Hotel and short‑term‑rental guests alone contributed around $83 billion in spending, signaling strong demand for overnight stays across urban, coastal, and regional destinations.

Bottom Line: California’s record‑breaking 2025 travel year shows that U.S. tourism leadership is increasingly less about sheer international visitor count and more about high‑value domestic demand, long‑stay utilization, and a deeply embedded hospitality‑workforce base, with California acting as a blueprint for how large‑scale, diversified destination economies can sustain growth even when global arrivals softens.

The conversions—spanning Mobile, Alabama, Union City, Tennessee, and Tyler, Texas—highlight an emerging trend among hoteliers seeking operational efficiency without sacrificing performance.

A Turnaround Story in Mobile and Union City

One of the most compelling transformations comes from a multi-property owner who began with a single hotel in Union City.

The property, now known as Stay Express Inn & Suites Union City, was previously operating under Microtel by Wyndham. After converting to Stay Express, the owner reported a significant improvement in financial performance.

Encouraged by increased net operating income and reduced franchise-related expenses, the owner described the move as a turning point in both business and personal financial stability.

Building on this success, the same owner later acquired a second property in Mobile, Alabama, which had previously operated under La Quinta by Wyndham. After transitioning this property to Stay Express as well, the results mirrored the first conversion—stronger margins and improved cost control.

According to the owner, the ability to save substantially on franchise fees while maintaining competitive performance made expansion feasible—something that was previously out of reach under higher-cost franchise systems.

Tyler, Texas: A Full-Circle Conversion

A second case in Tyler, Texas further reinforces the trend. The property, now operating as Stay Express Inn & Suites Tyler, had an unusual journey. Initially converted to Stay Express, the hotel later shifted to Quality Inn due to internal partner pressure.

However, the move did not deliver the expected gains. Despite maintaining similar levels of business, the hotel experienced a noticeable drop in return on investment due to significantly higher Property Improvement Plan (PIP) requirements and ongoing franchise fees—reportedly nearly three times higher than Stay Express.

When the property was eventually sold, the previous owner strongly recommended a return to Stay Express. The new owner agreed, citing the brand’s ability to deliver comparable business results with far lower financial burden.

The former owner summarized the experience succinctly: after trying multiple brands, Stay Express proved to be the most profitable and practical option for that specific market.

A Broader Industry Signal

These conversions point to a growing sentiment among independent hotel owners: profitability is no longer just about revenue—it’s about cost structure.

Stay Express appears to be positioning itself as a viable alternative for owners seeking:

• Lower initial and ongoing franchise fees
• More flexible and sensible PIP requirements
• Comparable operational performance to big brands
• Access to modern hotel technology which previously could only be accessed by joining the big brands 
• Faster path to profitability and expansion
• A relationship built on fair franchising principles

As rising costs continue to pressure hotel margins, such owner-driven transitions may become more common across secondary and tertiary U.S. markets.

Looking Ahead

The success stories from Mobile, Union City, and Tyler suggest a broader shift in how hotel owners evaluate brand affiliations. Instead of prioritizing brand recognition alone, many are now focusing on net operating income, ROI, and long-term sustainability.

If this trend continues, cost-efficient franchise models like Stay Express could play an increasingly important role in reshaping the economics of the midscale hotel segment. 

System-wide comparable RevPAR rose 3.6% on a currency-neutral basis versus the same period in 2025, supported by increases in both occupancy and average daily rate. Hilton also said franchise fee revenues grew 10.4% in the quarter.

On the development and capital side, Hilton approved 26,200 new rooms and increased its development pipeline to 527,000 rooms as of March 31, 2026. The company added 16,300 rooms for net unit growth of 6.3% and repurchased 2.7 million shares, bringing total capital return to $860 million for the quarter. Hilton also launched “Select by Hilton” in March 2026 with YOTEL as the first brand, and it reaffirmed full-year 2026 guidance for system-wide RevPAR growth of 2.0% to 3.0%, net income of $1,909 million to $1,937 million, adjusted EBITDA of $4,020 million to $4,060 million, and projected capital return of about $3.5 billion.

Hilton Reports First Quarter Results 2026 Highlights Earnings and Profitability

Hilton Worldwide Holdings Inc. (NYSE: HLT) reported first-quarter 2026 results on April 28, 2026, posting diluted earnings per share of $1.66. The company also reported adjusted diluted EPS of $2.01 after accounting for special items.

Net income for the quarter was $383 million, while adjusted EBITDA totaled $901 million, according to the company’s earnings release. Hilton said the profit metrics reflect ongoing demand and operating performance across its portfolio.

RevPAR Trends Point to Higher Occupancy and ADR in the Quarter

Hilton reported system-wide comparable RevPAR growth of 3.6% on a currency-neutral basis versus the same period in 2025. Management attributed the increase to gains in both occupancy and average daily rate (ADR).

The company also said franchise fee revenues rose 10.4%, indicating continued strength in branded hotel performance. Hilton’s comments suggested the quarter benefited from pricing and demand momentum rather than a single-market outlier.

Development Pipeline Expands With Room Approvals and Net Unit Growth

On the development front, Hilton approved 26,200 new rooms during the quarter. That activity lifted its development pipeline to 527,000 rooms as of March 31, 2026, up 5% year over year.

In addition, Hilton added 16,300 rooms and reported 10,900 net additional rooms. The company said net unit growth was 6.3%, reflecting a combination of openings and pipeline execution.

Select by Hilton Launch Brings YOTEL Under a New Line

Hilton launched “Select by Hilton” in March 2026, positioning the new brand line for further expansion. The first brand under the initiative is YOTEL, following an exclusive agreement.

Hilton framed the rollout as an additional platform for growth, with YOTEL set to be the initial operating name within Select by Hilton. Industry observers said the move could help Hilton broaden its brand mix in select market segments.

Share Repurchases and Dividends Lift Capital Return in Early 2026

Hilton repurchased 2.7 million shares during the quarter, according to its disclosures. The company reported capital return of $860 million for the quarter and $1,084 million year to date through April.

The company’s total capital return included dividends, and the repurchase program adds a recurring element to shareholder returns alongside ongoing cash generation.

Full Year 2026 Guidance Sets RevPAR and Earnings Targets

For the full year 2026, Hilton raised or maintained guidance, projecting system-wide RevPAR growth of 2.0% to 3.0% on a comparable and currency-neutral basis. The company also forecast full-year net income of $1,909 million to $1,937 million.

Hilton’s outlook included adjusted EBITDA of $4,020 million to $4,060 million. Capital return was projected at about $3.5 billion for the year, reflecting continued emphasis on shareholder returns.

What Management Emphasized About Demand and Brand Economics

In discussing the quarter, Hilton highlighted that RevPAR growth was driven by increases in both occupancy and ADR. The company’s commentary also pointed to strengthening franchise economics, as evidenced by the 10.4% rise in franchise fee revenues.

Analysts often look to those factors for signals about whether performance gains are broad based or concentrated in specific markets. Hilton’s reported mix suggested improvements were supported by multiple levers in pricing and bookings.

Development and New Brand Steps Set Up 2026 Expectations for Growth

Hilton’s development activity, including approvals of 26,200 rooms and a 527,000-room pipeline, provides visibility into future supply. The company’s net unit growth of 6.3% also indicates that new hotels and conversions are contributing to expansion.

With the introduction of Select by Hilton and the YOTEL relationship, Hilton may use the early brand rollout to refine its positioning in targeted segments. Investors are likely to monitor the pace of property signings, openings, and early performance under the new line.

What Did Hilton Report in Its First Quarter Results for 2026:

The process is simple: a traveler generates a secure, time-limited link in Find Hub that shows the bag’s location from a compatible tracker tag, then sends that link to the airline or baggage-recovery desk. Google says the sharing is encrypted and controlled by the user, so passengers don’t have to hand over broader device access or personal account data to get help locating their suitcase. More than 10 airlines have already signed up to accept these links, with integration underway across major global carriers and airport baggage teams.

For airlines, the appeal is obvious: better visibility into where a bag actually is can reduce manual tracing, cut compensation payouts, and improve first-time recovery rates. For travelers, it turns a frustrating missing-bag episode into something more actionable, since the airline can now see the live location rather than waiting for a paper trail or an eventually returned bag. The move also reflects a broader shift in air travel toward consumer-controlled location sharing, where passengers retain privacy while giving operators just enough data to solve a problem faster.

Key Points

• Google Find Hub now lets travelers share a bag’s live location with airlines through a secure, time-limited link.
• The feature is being integrated into SITA WorldTracer and NetTracer, the main baggage-tracking systems used globally.
• More than 10 airlines are already supporting the feature, with the goal of faster recovery and fewer baggage disputes.

Bottom Line: Google’s Find Hub baggage-sharing update is a practical upgrade for both passengers and airlines, turning lost-luggage recovery into a faster, more transparent process while keeping the traveler in control of the data.

Speaking at ITB Berlin in March 2026, EU Tourism Commissioner Apostolos Tzitzikostas warned that climate change is no longer a “background” environmental issue but a direct problem for Europe’s travel industry, with seaside resorts and ski regions among the most exposed. Scientific modelling confirms that southern coastal areas—from the Mediterranean to parts of the Atlantic—could see significant declines in summer demand as heat becomes intolerable, while northern coasts may gain short‑term popularity during milder summers that push travelers away from overheated southern beaches.

In coastal destinations, the threats include beach erosion, stronger storms, flooding of low‑lying resorts, and the degradation of marine ecosystems such as coral reefs and seagrass beds that underpin snorkelling, diving, and other marine‑based experiences. The EU Blue Economy Report notes that rising sea levels and increased storm intensity threaten hotel, restaurant, and marina infrastructure, while the loss of attractive physical and natural assets can drive tourists to alternative regions or different types of holidays altogether.

At the same time, in mountain tourism, warmer winters and receding snowpacks are shortening the ski season at lower‑altitude resorts, raising operating costs for人工 snowmaking and, in some cases, calling into question the long‑term viability of smaller ski areas that cannot afford large‑scale technological adaptation.

Across the continent, the tourism sector is responding with a mix of adaptation and diversification: coastal towns are investing in climate‑resilient infrastructure and “shoulder‑season” campaigns, while mountain resorts are expanding summer activities such as hiking, biking, and wellness‑focused stays to offset shrinking winter revenues.

The European Commission and intergovernmental bodies are also pushing for low‑carbon mobility, energy‑efficient hotels, and regenerative‑tourism models that recast destinations as climate‑resilient experiences rather than short‑term amenities. In essence, 2026 is emerging as a turning point where coastal and mountain tourism in Europe cannot be planned as purely “business‑as‑usual”; instead, it must be embedded in climate‑adaptation strategies that anticipate hotter summers, unpredictable winters, and shifting visitor preferences across the region.

Key Points

• EU tourism leaders warn that climate change is already damaging coastal and mountain holiday destinations, affecting safety, reliability, and long‑term demand.

• Southern European coasts face risks from heatwaves, sea‑level rise, and infrastructure loss, while northern coasts may temporarily gain more visitors during milder summers.

• Mountain resorts contend with shorter ski seasons, rising snowmaking costs, and the need to diversify into year‑round, climate‑resilient tourism products.

Bottom Line: For European coastal and mountain tourism, climate change is no longer a future threat but a present‑day operational reality, forcing destinations to adapt infrastructure, redistribute seasonal demand, and embed climate resilience into the core of their tourism strategies.

So far, U.S. carriers have responded with selective hikes and fuel surcharges, often starting with premium cabins where travelers are more price‑tolerant, and gradually spreading higher prices into economy and medium‑haul routes. Industry analysts note that airlines typically pass 60–80% of fuel‑cost increases to consumers over time, but the pace can slow when demand is fragile or competition is intense. The timing is especially sensitive because many U.S. airlines have largely stepped back from large‑scale fuel hedging, leaving them more exposed to spot‑market volatility than European rivals such as Lufthansa and British Airways, which still carry substantial hedge coverage.

If the oil shock persists, the $24 billion extra fuel burden could strain low‑cost and regional carriers most, raising the risk of route‑cancellations, capacity cuts, or even consolidation, while larger network airlines recalibrate their network and pricing strategies. For travelers, that means higher airfares, fewer discounts, and a greater chance that carriers will trim “frills” such as extra‑legroom seating, free snacks, and legacy‑style perks to keep unit costs under control. In effect, the Iran‑driven oil surge is turning fuel costs into a decisive lever on both airline profitability and how much consumers will ultimately pay to fly in 2026.

Key Points

• A sustained oil price near $90–$100 per barrel could add about $24 billion in jet‑fuel costs for U.S. airlines in 2026.
• That shock may translate into up to a 10% fare increase, phased in over 6–12 months, spread across economy and premium cabins.
• Most U.S. carriers have reduced fuel hedging, leaving them more exposed than many European rivals; low‑cost and regional airlines face the greatest margin pressure.

Bottom Line: The current oil‑price shock is reshaping the U.S. air‑travel landscape, turning jet fuel into a key driver of both fare levels and airline strategy, with passengers likely to see higher prices and leaner service as carriers scramble to manage a $24‑billion‑plus extra fuel bill.

Judges and industry voters highlighted Mews’ ability to scale across different property types and markets, from city‑center boutiques to resorts and lifestyle hotels, without losing simplicity for users on the ground. The system emphasizes real‑time data—live occupancy, dynamic pricing, and instant reconciliation—so hoteliers can respond faster to demand shifts, staffing needs, and guest‑service opportunities. Mews also continues to invest in AI‑driven insights, automation for routine tasks, and mobile‑first workflows, helping front‑desk teams, revenue managers, and owners make decisions based on accurate, up‑to‑the‑minute information rather than siloed spreadsheets and outdated reports.

For the broader hotel‑tech ecosystem, Mews’ three‑peat at the HotelTechAwards signals a growing consensus that cloud‑based, open‑architecture PMS platforms are the future, particularly for operators seeking agility, integration depth, and vendor agnosticism. The award underscores how Mews is not just a system of record but a central nervous system for the connected hotel, linking bookings, payments, and operations into a unified platform that can adapt as distribution, regulations, and guest expectations evolve.

Key Points

• Mews wins Best PMS at the HotelTechAwards for the third consecutive year, reinforcing its leadership in cloud‑based hotel operations software.
• The platform’s open, API‑driven architecture lets hotels integrate channels, payments, and third‑party tools while keeping a single source of truth for guest and room data.
• Judges praised Mews’ scalability, real‑time data, and AI‑driven features, which help independent and mid‑sized hotels operate more efficiently and responsively.

Bottom Line: Mews’ sustained success at the HotelTechAwards reflects a broader industry shift toward cloud‑native, open‑platform PMS solutions, positioning the brand as a central hub for the next generation of connected, data‑driven hotel operations.

At COMO Metropolitan Singapore, every room and suite now features a SleepHub unit that uses low‑frequency, psychoacoustic sound patterns to guide the brain into deeper, more stable sleep cycles, helping guests fall asleep faster and wake up at a more restorative phase. The technology is woven into the Sleep Dreams two‑ or three‑night stay, which adds a 60‑minute COMO Shambhala Signature Massage, Hyperbaric Oxygen Therapy, and a sleep evaluation by specialists, all aimed at reversing the jet lag and stress that often come with travel and city life. In parallel, COMO Shambhala Singapore offers AirPod hydroxy hyperbaric oxygen chambers, which deliver a higher‑oxygen, hydrogen‑enhanced environment designed to speed jet‑lag recovery and further improve sleep quality.

Across the portfolio, the brand is framing better sleep as a core pillar of wellness, not just a hotel amenity. Sleep‑themed packages at COMO Metropolitan London and COMO Point Yamu in Phuket similarly pair SleepHub devices with COMO Shambhala massages, carefully curated menus, and mindfulness practices, encouraging guests to reset their routines before or after busy travel itineraries. By combining proprietary technology, in‑house sleep research, and its signature holistic‑wellness approach, Como is positioning itself for the growing “sleep tourism” segment, where guests are willing to invest in stays that promise not just comfort but measurable, deeper rest.

Key Points

• Como is rolling out SleepHub® technology across key city hotels to improve sleep quality using neuroscience‑based sound.
• Sleep‑focused “Sleep Dreams” packages in Singapore, London, and Phuket include SleepHub devices, hyperbaric‑oxygen therapy, and COMO Shambhala treatments.
• The brand is integrating better sleep into its broader wellness ecosystem, targeting travelers seeking recovery‑driven, restorative stays.

Bottom Line: “Get better zzzs with Como” is more than a headline: it reflects a deliberate, science‑infused shift in how the brand delivers wellness, turning the hotel room into a tech‑enhanced, recovery‑oriented environment that makes sleep a central pillar of the guest journey

Gulf Cooperation Council (GCC) heavyweights such as the UAE, Saudi Arabia, Qatar, and Bahrain are hardest hit, as their growth‑at‑all‑costs tourism models rely heavily on air connectivity, safety perception, and large‑scale events. Massive airspace closures and flight cancellations around Dubai, Abu Dhabi, Doha, and others have turned hub‑centric itineraries into risky detours, while U.S. and UK “no‑go” advisories push cancellations in luxury hotels, cruise calls, and event‑driven travel. Even countries less dependent on aviation, such as those with strong land‑border arrivals, still face slower growth as regional sentiment darkens and insurance and travel‑warning costs rise.

The shock goes beyond headline numbers: planned expansions in museums, theme parks, and mega‑events now face delayed returns, while airlines and tour operators scramble to reroute traffic through Europe or Asia. The Middle East’s role as a global transit corridor—handling about 14% of world international transit traffic—means the ripple hits long‑haul routes to South Asia, Africa, and beyond. If the conflict eases, the region may recover in fits and starts, but the 2026 season is already being written as a lost year for many operators, with billions of dollars in potential revenue evaporating in a matter of weeks.

Key Points

• Middle East tourism is projected to lose $34–56 billion in spending in 2026 due to the Iran‑linked conflict.
• Arrivals could fall 23–38 million below pre‑war forecasts, with the GCC (UAE, Saudi, Qatar, Bahrain) hit hardest.
• Airspace closures, “no‑go” advisories, and flight disruptions have sharply weakened traveler confidence.

Bottom Line: The 2026 Iran‑war shock is stripping roughly a quarter of the Middle East’s projected tourism revenue, turning a growth‑at‑all‑costs story into a sudden crisis that threatens years of investment in luxury mega‑projects, aviation hubs, and regional connectivity.

America’s iconic destinations—where California’s golden surf crashes rhythmically against Malibu’s dramatic cliffs while Napa Valley’s endless vines heavy with ripe Cabernet Sauvignon stretch toward coastal fog banks, Florida’s Miami neon pulses vibrantly through South Beach’s pastel art deco nights filled with salsa rhythms and Cuban coffee aromas, New York’s Times Square billboards dazzle endlessly amid yellow taxi streams and Broadway marquee glow, Hawaii’s Waikiki waves frame leisurely Diamond Head hikes through plumeria-scented trails, Massachusetts’ Boston Harbor hosts history-rich Freedom Trail walks past clam chowder stands, and Georgia’s Savannah squares bloom lush with flowing Spanish moss beneath ancient live oaks—now risk emptying dramatically as international travelers face invasive digital scrutiny, with consular officers flagging risky keywords, controversial group memberships, decade-old protest posts, and even large.

The policy expansion blankets ESTA Visa Waiver Program applicants alongside intensified H-1B, F, M, J student visas, demanding full public social media access for comprehensive national security vetting—sparking appointment cancellations, chaotic rescheduling wars at US embassies worldwide, spiking 221(g) refusals where even expunged digital footprints, deleted political comments, or massive extended family messaging groups raise endless red flags for tourists dreaming of American beach getaways, city adventures, or family reunions.

Key Points

• Five-year comprehensive social media history required.
• Public profile settings mandatory for all platforms.
• ESTA Visa Waiver Program now heavily scrutinized.
• 221(g) administrative refusals spike dramatically.
• All 44 states face precipitous visitor declines.

Bottom Line: US social media visa vetting casts unprecedented digital scrutiny over sun-drenched beach sunsets, electric city neon skylines, and majestic mountain trails—chilling international tourism flows that threaten to empty iconic resorts, quiet legendary landmarks, and dim America’s global welcome amid escalating security demands that reshape the entire visitor economy.