UK-US market dips in July but remains up this year

The latest US arrival statistics show a small drop in the number of UK visitors, but tour operators have downplayed the risk of a further dent in demand linked to the rising Esta cost.

 

Figures from the International Visitor Arrivals Program reveal a 0.4% reduction in the number of arrivals from the UK in July compared with the same month last year, though arrivals for the  year up to that point remain 1.6% up compared with 2024.

 

The cost of an Esta will rise from $21 to $40 on September 30 in a move that has previously been criticised by the US Travel Association.

 

Kuoni revealed outbound demand for the US had grown year on year, largely driven by its Florida programme, with the Esta hike not being viewed as an upcoming barrier.

 

Tom Waite, regional product manager for North America and Australasia at Kuoni, said: “While the increase to the Esta fees will add to the price of the overall trip, it’s a relatively small part of the total holiday cost so I don’t anticipate it having a huge effect on overall demand for the US as a destination.

 

“We’ve seen entry fees and visa requirements change for other destinations over the years without impacting sales.

 

“The cost doesn’t generally put people off travelling, so long as the process to apply is quick and straightforward to complete.”

 

He added: “We’re seeing strong growth year on year for the US, largely driven by the relaunch of our Florida programme in autumn 2024, as well as increased demand for both Hawaii and the Deep South, which we’re supporting by developing our range of holidays offered to these areas.” 

 

America As You Like It reported US bookings remained down year on year “largely due to the political climate”, but managing director Maggi Smit said it was unlikely the rising Esta cost would further dampen demand.

 

“We do not see the changing Esta fees having too much of an impact on bookings. The cost is still relatively low in comparison to the overall holiday cost,” she said.

On the bookings downturn this year, she added: “We believe customers are waiting to see if things will settle before committing to booking.”

 

Advantage Travel Partnership chief executive Julia Lo Bue-Said this week encouraged travellers to secure their Esta before September 29 to avoid the increased cost.

 

“We know travel continues to be consumers’ top discretionary spending priority, with value for money and cost savings a key consideration within this, so avoiding unnecessary additional costs such as higher visa fees can make a real difference,” she said.

 

She added: “The price of an Esta nearly doubling under the Trump administration is a blow to British travellers and is likely to impact US visitor numbers over the coming months.”

 

The number of UK arrivals in July stood at 380,233, with the total for the year to that point totalling 2.2 million.

 

Apart from Canada and Mexico, the UK is the US’ largest source market.