June 2025 proved to be a month of shifting fortunes for the global travel and hospitality industry, as new data from both sides of the Atlantic painted a nuanced portrait of recovery, resilience, and persistent headwinds. For hoteliers in Europe, the picture was as varied as the continent itself, while the United States grappled with a surprising downturn in international visitor arrivals—even as American travelers continued to venture abroad in record numbers.
According to HSMAI Europe and MKG, the European hotel sector saw overall revenue per available room (RevPAR) inch up by 1.4% compared to the previous year. This modest growth was buoyed by a 0.5 percentage point uptick in occupancy rates, though it was tempered by a slight 0.8% dip in the average daily rate (ADR). It’s a classic case of one step forward, one step back: while more rooms were filled, hoteliers had to offer slightly lower prices to attract guests. Eurostat, meanwhile, pegged the eurozone’s inflation rate at 2% for June, providing a stable backdrop but little relief for operators hoping for a consumer spending boost.
The story was far from uniform across Europe. Germany, typically a powerhouse in the region’s hotel market, experienced a sharp 20.3% drop in RevPAR compared to June 2024. The culprit? The absence of the Euro 2024 football tournament, which had packed hotels and sent rates soaring the previous year. Even when measured against June 2023, Germany’s RevPAR was down 7%, with ADR falling by 2.7% and occupancy rates slipping by 3.3 percentage points. The year-to-date numbers told a similar tale, with RevPAR down 1.2% compared to the first half of 2024.
Things weren’t much better in the United Kingdom. From January to June 2024, RevPAR declined by 0.8%, and for June specifically, ADR dropped by 3.4% compared to the previous year, despite occupancy rates holding steady. The result? A 3.3% fall in RevPAR—a sign that sluggish demand is making it tough for hoteliers to raise prices, leaving them caught between a rock and a hard place.
Southern Europe’s sun-drenched destinations—long the darlings of post-pandemic travel—also saw momentum slow. Spain, for instance, managed a slim 0.8% RevPAR increase, but this masked a 0.8 percentage point dip in occupancy (down to 81.3%) and an ADR that barely budged, up just 1.7%. Portugal’s story was similar: a slight occupancy decline to 78.6% led to a 0.3% drop in RevPAR, even though ADR ticked up by 0.7%. In Greece, the news was gloomier still, with both occupancy and ADR falling, resulting in a 4.1% decline in RevPAR.
Italy, however, stood out as a bright spot. The jubilee year of 2025 brought a wave of pilgrims and tourists, pushing the country’s occupancy rate to 80.8%—a 2.1 percentage point jump from the previous year. With ADR up 2%, Italy enjoyed a 4.7% boost in RevPAR, offering a rare example of double-barreled growth in both occupancy and pricing.
France, and Paris in particular, emerged as the region’s star performer. Occupancy rates climbed by 3.5 percentage points, and surging demand from international visitors allowed hoteliers to hike ADR by a robust 8.7%. The upshot? A remarkable 13.8% increase in RevPAR—the highest growth recorded anywhere in Europe for June, according to the latest data.
Eastern Europe also delivered strong results. Poland and the Czech Republic posted RevPAR gains of 8.9% and 12.6%, respectively, thanks to healthy occupancy increases. Latvia managed a 4.9% RevPAR rise, driven entirely by ADR growth—a testament to the region’s ability to attract travelers willing to pay a bit more for their stays.
Yet, despite these bright spots, the European hotel industry as a whole continues to wrestle with weak corporate demand. Many operators are now exploring new offerings and experiences in hopes of boosting average customer spending—a strategy that could help offset the drag from business travel’s sluggish recovery.
Across the Atlantic, the United States faced its own set of challenges. The International Trade Administration (ITA) reported that international visitor arrivals to the U.S. fell by 6.2% year-on-year in June 2025, landing at 5,278,944 people. That figure represents just 83.4% of the pre-pandemic visitor volume recorded in June 2019—a sobering reminder that the U.S. inbound travel market has yet to fully recover from COVID-19’s seismic shock.
The top five source markets for international arrivals to the U.S. in June 2025 were Mexico (1,375,762), Canada (1,100,227), the United Kingdom (283,628), India (214,345), and Brazil (163,416). Together, these countries accounted for nearly 60% of all arrivals. On the business front, the United Kingdom again led the pack, sending 44,638 business travelers, followed by India, Japan, Germany, and South Korea. For student arrivals, China topped the list with 10,031, trailed by India, South Korea, Brazil, and Taiwan.
Meanwhile, outbound travel by U.S. citizens surged. In June 2025, 11,473,103 Americans traveled internationally—a 2.5% increase from the previous year and a figure that actually surpasses pre-pandemic levels, representing 109.9% of the departures recorded in June 2019. North America (Canada and Mexico) remained the top destination, with a year-to-date market share of 48.7%. Mexico alone attracted 3,630,548 U.S. visitors, making up 31.6% of all departures. Europe was the second most popular region, drawing 3,046,697 Americans (26.6% of all June departures), with a 1.4% uptick compared to June 2024. Notably, outbound travel to Canada dropped by 7.2% year-on-year, suggesting shifting preferences or perhaps the impact of border policies and airfares.
These trends highlight a fascinating divergence: while Americans are eager to explore the world again, international travelers remain more cautious about visiting the U.S. Industry analysts point to a mix of factors, including lingering visa processing delays, shifting currency values, and competition from other global destinations. The fact that outbound U.S. travel is now well above pre-pandemic levels, while inbound recovery lags, raises important questions for policymakers and the travel sector alike.
Back in Europe, the industry’s mixed results reflect the complex interplay of local events, economic conditions, and shifting traveler tastes. The absence of major events like Euro 2024 hit markets like Germany hard, while special occasions such as Italy’s jubilee year delivered a welcome boost. In France, the enduring appeal of Paris continues to draw international crowds, even as other regions struggle to regain their footing. Eastern Europe’s gains, driven by competitive pricing and a growing reputation for quality, suggest that new travel hotspots are emerging.
As the summer travel season continues, both the U.S. and Europe face the challenge of sustaining momentum in the face of economic uncertainty, changing consumer preferences, and the ever-present specter of global events. For now, the numbers tell a story of recovery that is anything but straightforward—one marked by sharp contrasts, unexpected winners, and a travel landscape that remains in flux.
For travelers and industry insiders alike, June 2025 stands as a reminder that while the road to full recovery may be winding, the journey is far from over.
