Occupancy is pacing below 2024 for August 2025 in every state, with occupancy nationally 10% lower than at the same time last year. September isn’t faring much better, with occupancy pacing down 12% nationwide vs. 2024.
This follows a 12% year-over-year drop in July, when only four states posted occupancy growth: Illinois (+1.7%), Arkansas (+1.1%), Missouri (+0.9%), and West Virginia (+0.1%). However, the market is still seeing some pricing power. Average daily rates (ADRs) grew 2.9% in July and are pacing around 3% higher than last year for August and September.
Bright spots: Labor Day
However, property managers and hosts can still see success by targeting popular holidays like Labor Day. For Labor Day weekend, 18 out of 24 key destinations are seeing more nights booked than at the same time last year, suggesting guests are still booking—but often at the last minute and driven by holidays or local events.
Standout markets include Branson, MO, where demand has surged 39% year-over-year, followed by Atlanta, GA (+37%), Ocean City, MD (+34%), South Lake Tahoe, CA (+32%), and Destin, FL (+32%).
While occupancy growth was uneven – up in half the markets, down in the rest – some cities are still commanding strong numbers. Bend, OR leads with 60% occupancy, followed by Chicago (58%), Seattle (53%), Atlanta (50%), and Asheville, NC (50%).
By contrast, some markets are struggling significantly. The chance of extreme weather is making some travelers hesitant to book. Florida markets in hurricane season will naturally see slower bookings, for example, Naples, seeing just 7% occupancy for Labor Day weekend. Las Vegas (23%) and Washington, DC (27%) are also trailing national averages.
Average daily rates (ADRs) tell a similar story. They are up from last year in some areas, flat or falling in others. The Northeast region is seeing the most pricing strength, even as demand softens elsewhere. In many locations, the preference for last-minute bookings may mean that property managers are forced to discount rates.
Richie Khandelwal, President and Co-Founder of PriceLabs, commented: “While economic uncertainty is making some travelers wait longer to decide whether to book, the question remains whether those with a lower budget will travel at all. Travelers who are looking for a last-minute deal should think outside the box and look to destinations where demand is lower, or consider traveling mid-week or out of high season to get a better rate. However, in more popular destinations, guests should be careful not to leave it too late, as the properties they like might get booked up.”
Tags: Richie Khandelwal, PriceLabs