U.S. Transportation Security Administration passenger data popped this July Fourth holiday period while U.S. hotel industry performance fizzled out compared to last year's results.
Between Tuesday, July 1, through Monday, July 7, 18.6 million passengers traveled by air, TSA data shows. This is a 1.2% increase over the same time frame last year.
The busiest day was Sunday, July 6, with more than 3 million air travelers. This matches the same high as 2024, when the Sunday after the holiday also garnered more than 3 million travelers.
Despite the high volume of air travelers, hotel performance saw a decline from Thursday, July 3, through Saturday, July 5. Colin Sherman, director of hospitality market analytics in Texas and the U.S. South for CoStar Group, said occupancy was down 4.3%, revenue per available room was down 5.5% and demand was down 3.5% compared to last year.
"Over the 2025 July Fourth weekend, U.S. hotel performance averaged across Thursday, Friday, and Saturday showed year-over-year declines in key metrics," Sherman said. "These results contrast with TSA’s record-setting passenger volumes during the same period, indicating that elevated travel activity did not directly translate into increased hotel stays."
ADR was more of a mixed bag than the three-day average of down 1.4% indicates, Sherman said. ADR was down 8% on July 3 but up 3.2% on July 4 and up 0.7% on July 5.
"This suggests that hotels were able to capture stronger rates on peak nights, particularly Friday, but faced challenges earlier in the weekend. The data potentially reflects a holiday period shaped by compressed booking windows, rate sensitivity and evolving accommodation preferences," Sherman said.