Amid tariff burdens and more international travelers revolting against U.S. visits this summer, rental car operators will need to closely track market data and signals to gauge fleet usage and pricing, a newly released report shows.

“Summer 2025 is on track to be an electrifying — yet volatile — season for inbound U.S. travel, and car-rental operators can’t rely on gut feel alone,” states the report Inbound Travel Trends for the U.S. Summer 2025, compiled by RateGain.

The study forecasts trends for June 1 to Aug. 31 in what looks like an uncertain summer as some travelers may either pull back on spending and/or avoid travel to the U.S. RateGain Travel Technologies Limited is a global provider of AI-powered SaaS solutions for travel and hospitality businesses that works with 3,200+ customers and 700+ partners in 100+ countries.

“As the travel landscape continues to evolve, clear signals matter more than ever,” said Sid Kotari, CEO of Rev-AI by RateGain, in the report. “This report offers a snapshot of where inbound demand in the US is heading — and why it’s arriving earlier, faster, and more broadly than we’ve seen before. Our intent in sharing this is simple: to help the [rental car] industry make smarter, more timely decisions, grounded in real data.” 

Despite macroeconomic pressures, booking volume can still vary widely among domestic cities and regions.

Among key findings:

• Although the number of visitors from Canada has declined, it remains the top source market for the U.S., with 36% of all hotel bookings for summer 2025. The U.K. is a distant second at 6%, while other source markets, France, Italy, Spain, Australia, and Japan, are each at 4% share.

• Toronto leads as the origin city for hotel bookings in the U.S., followed by Vancouver, Montreal, London, Calgary, Milan, Paris, Winnipeg, Madrid, and Sydney.

• Austin leads the top 20 U.S. destinations with the highest surge in searches (428%) from international origins, from prospective business or leisure visitors. The next five high-ranking destinations for search surges are: Alpena, Michigan; Victoria, Texas; Minot-Bismarck-Dickinson, North Dakota; Odessa-Midland, Texas; and Anchorage, Alaska. 

• The share of hotel bookings is increasing for business travelers, whereas the shares of bookings by leisure non-family and leisure-family travelers are decreasing.

• New York and Las Vegas continue to rank as the most popular hot spots in the U.S., while Honolulu is seeing a surge in arrivals. Other popular destinations include: Orlando, Miami, Los Angeles, Chicago, Seattle, San Francisco, and Boston.

• 37% of the inbound hotel bookings in the U.S. are for 1-2 days, followed by 29% for 3-4 days. Only 33% of the hotel bookings are for more than four days.

• 41% of the inbound hotel bookings in the U.S. are made for rooms with an average daily rate (ADR) between $100 and $200. 26% of the bookings are for rooms with an ADR of between $200 and $300. 15% of the rooms are booked for an ADR of $300-$500.

• Travelers’ search and booking windows are expanding for U.S.-related travel. International travelers prefer planning trips well ahead of their check-in dates. In 2024, the average search window was 138 days, and the average booking window, 130 days. This year, the search window is 141 days ahead of check-in dates, while travelers book an average of 136 days in advance.

• Las Vegas, one of the top markets for rental cars, will offer a wide range of car rental options this summer. Mini cars remain the most affordable vehicles, running as low as $36.21 per day, ideal for cost-conscious travelers. In contrast, luxury elite electric vehicles will reach up to $118.61, indicating growing demand for premium, eco-friendly rentals. 

• Pricing remains relatively stable for most vehicle types from June to August, but premium car types show sharp increases, especially in August. This suggests that higher-end vehicles are gaining traction, likely driven by a mix of summer demand and evolving traveler preferences.

• Another active market, New York, will take a different pricing route this summer. While full-size vans will lead at $801.43 revenue per transaction day (RPD, luxury vehicles will start as low as $97.98 RPD — a surprising shift from the usual pricing norm. Compact cars will still hover around $213 (RPD), reflecting a deliberate strategy by rentals in New York to keep luxury options competitively priced while capitalizing on group travel demand with higher van rates.