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U.S. Hotel Industry Reports Decline for Week Ending 26 July

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  • U.S. Hotel Industry Reports Decline for Week Ending 26 July – Image Credit Unsplash+   

  • St. Louis leads in occupancy growth, while Houston struggles post-hurricane.
  • Nationwide hotel performance shows minor year-over-year declines.

The U.S. hotel industry experienced slight declines in key performance metrics for the week ending July 26, 2025, according to CoStar’s latest data. 

CoStar, a prominent provider of real estate analytics, reported that occupancy rates fell to 71.5%, a 0.7% decrease compared to the same week in 2024. The average daily rate (ADR) saw a marginal drop of 0.1%, settling at $164.88, while revenue per available room (RevPAR) decreased by 0.8% to $117.88.

Among major markets, St. Louis stood out with a 5.7% increase in occupancy, reaching 70.9%. Conversely, Houston faced significant declines due to the aftermath of Hurricane Beryl in 2024, with occupancy dropping by 19.7%, ADR by 7.7%, and RevPAR by 25.9%.



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Travel Market Insights

Delta Says It Will Not Use AI to Target Customers

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Key Points

  • Delta Air Lines clarified it does not use AI to set individualized airfares based on personal data, following criticism from lawmakers.
  • The airline uses AI, via a partnership with Fetcherr, to assist in dynamic pricing for a growing portion of its domestic flights, but claims all fares are determined by market dynamics and are publicly available.
  • Lawmakers and officials have expressed concerns about potential predatory or ‘surveillance’ pricing, prompting Delta to stress its commitment to fair, competitive pricing and data privacy.

Summary

Delta Air Lines has publicly stated that it does not use AI to set individualized prices based on personal customer data, responding to recent criticism and inquiries from U.S. lawmakers. The airline acknowledged using AI technology, through a partnership with Fetcherr, to assist analysts in setting fares for a portion of its domestic flights, with plans to expand this use. However, Delta emphasized that fares are determined by market competition, not personal data, and all prices are transparently published, aiming to dispel concerns about privacy and potential predatory pricing.



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U.S. Dollar Slide Hurts Accor, Minor, and Meliá

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Some of the world’s largest hotel companies saw their earnings dented by currency swings in the first half of 2025, as euro and baht-reporting groups absorbed losses while U.S.-based chains appeared largely insulated from the volatility.

Accor, Meliá Hotels, and Minor International all reported currency-related losses that offset solid operational performance. Meanwhile, U.S.-based Hilton and Wyndham, which report in dollars, did not mention foreign exchange impacts in their earnings calls and appeared shielded from the same pressures.

The U.S. dollar index dropped 10.8% in the first half of 2025 following the Trump administration’s April tariffs and public clashes with the Federal Reserve. The resulting investor pullback caused the dollar to weaken sharply against the euro, baht, and other currencies.

Accor: Currency Among Its Biggest Headwinds

Paris-based Accor repo



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Winners, Losers, and Lots of Premium Seats: Europe’s Airline Scorecard

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Skift Take: Premium cabins still drive profits, but it's the low-cost threat that keeps Europe's legacy carriers up at night.

Read the Complete Story On Skift



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