When examining U.S. lodging demand, it can be simplified into three broad categories: leisure, corporate, and group. Each of these segments has its own dynamics, with different economic, social, and technological factors influencing the propensity to travel. Further complicating the landscape are advances in technology, which are reshaping not only how people work and meet but also the expectations of travelers, particularly within the corporate and group segments.
Over the past 15 years, the U.S. lodging industry’s demand mix has undergone a fundamental shift. What was once a market dominated by corporate and group travel is now led by leisure. Prior to 2015, corporate and group demand accounted for well over half of all room nights, and Wednesday was consistently the strongest occupancy night of the week, far ahead of Saturday. Today, that pattern has flipped. Friday and Saturday now lead occupancy, while Wednesday has slipped into third place, reflecting the rise of leisure travel and the decline of traditional business travel habits.
In the last three years, transient leisure travelers have represented roughly 55 percent of U.S. hotel demand, with corporate and group travel now secondary. As shown in the top chart on the facing page, demand trends for both corporate and group segments are currently running below the same period in 2024. Adding to this weakness are sharp declines in government-related travel, which has historically supported corporate demand. For hotel operators, this shift means that the base of dependable weekday demand has eroded, requiring new strategies to fill midweek gaps.
The pandemic greatly accelerated this transition. Virtual meeting technology had been available for years, but adoption surged in 2020 when in-person interactions became impossible. Once businesses realized they could replace costly travel with efficient remote platforms, many institutionalized the practice. The cultural shift has been profound: corporations, already cautious in rebuilding travel budgets after downturns, now have a structural reason to keep them constrained. This dynamic is unlikely to reverse in the near term, particularly as hybrid work models persist and technology continues to improve.
Since the post-pandemic recovery, corporate demand has plateaued at about 90 percent of pre-2020 levels, with little indication of further growth. As the chart below illustrates, corporate room nights have actually fallen another 3 percent so far in 2025 (through Sept. 13) compared with the same period in 2024. Looking ahead, reservations on the books through mid-October suggest corporate demand will remain flat year-over-year. For hotel revenue managers, this requires sharper focus on cultivating alternative segments, such as project-based business, small meetings, and blended bleisure travel.
Group travel followed a different trajectory. After a steep pandemic decline, meetings and events rebounded strongly, and by 2024 demand had returned to 2019 levels. Yet in 2025, momentum has stalled. Beginning in the second quarter, group demand began to decline year-over-year, and through mid-September, it is down about 4 percent. The forward outlook is also weaker than in 2024. Still, groups remain more reliable than corporate or leisure segments, as large meetings are rarely canceled outright. For operators, group demand offers an anchor in the demand mix, even if it no longer provides the same growth lift as in prior years.
Taken together, these shifts highlight an industry in transition. Leisure travel continues to be the dominant driver of occupancy, but it is highly seasonal and price sensitive. Corporate travel is stabilizing at a permanently lower level, while groups are plateauing after a temporary post-pandemic rebound. For hoteliers, this means success will depend on more sophisticated segmentation, creative midweek programming, and stronger partnerships with meeting planners and corporate travel buyers. The winners in this environment will be those who adapt to a demand mix that looks fundamentally different than it did just a decade ago.
