Fairbanks, Alaska (AK) – Explore Fairbanks is reporting a mixed snapshot of visitor trends for the first half of 2025, with some areas of decline as well as encouraging gains.

“After a relatively soft winter season, there was a lot of uncertainty about how summer was going to be,” said Scott McCrea, President and CEO of Explore Fairbanks. “Based on what we are hearing from our partners and other indicators, across the board we expect that when all is said and done, this summer is going to be down from last summer, though there are some positive signs here and there.”

McCrea noted that the year started off with a very strong January, with increases shown in every reporting statistic. “Once we got to February, we started seeing a downward trend in most of the numbers,” said McCrea.

“It’s challenging to pinpoint a single reason for the declines we’re seeing, especially given the variety of complex factors at the national/federal level at play,” said McCrea. “Whether it be international strife or economic uncertainty, those influences can have downstream impacts on visitation—many of which are beyond our control. Despite these headwinds, it’s encouraging to see some positive indicators across certain sectors.”

  • Hotel/Motel: Hotel/motel occupancy rate is at 63%, down from 68% in 2024. January was the only month to record an increase, with 56% compared to 52%. April had the biggest decline with 51% compared to 67%; McCrea noted that the largest contributing factor was there being no Red Flag military exercise at Eielson Air Force Base that typically fills a lot of hotel rooms. The month of June had only a slight decrease at 80% vs 83%. For average daily rates (ADR), there is a slight increase year to date of 2% with $182 compared to $178. The month of June had the highest ADR at $267, a 5% increase over June 2024. “While we may not break the occupancy records seen in recent years, the demand remains encouraging,” said Elizabeth Griswold, General Manager of Pike’s Waterfront Lodge. “The cruise season is solid and projections for the coming years point to continued growth.”
  • Short Term Rentals: Based upon data collected from AirBnB and Vacation Rental by Owner (VRBO), short term rentals saw a decline in occupancy rates, going from 37% in 2024 to 33% in 2025. Similar to hotels, June was only slightly down at 41% compared to 43%. ADRs increased by 13% at $187 compared to $167, also marking the first time that short-term rental ADRs have been higher than hotel/motel. Most notable was the dramatic increase in listings at 20%, with 6,850 total listings compared to 5,830. “We’re seeing lots of signs in the short-term rental market that we have hit a phase where the supply is surpassing the demand,” said McCrea.
  • Fairbanks International Airport Arrivals/Departures: The Fairbanks International Airport (FAI) reported a total of 522,721 combined arrivals and departures, a 1% increase over 516,761. March (-6%) and May (-10%) were the only months with decreases, while January had the highest increase at 12%. June reported a 7% increase, with 115,051 compared to 107,861. McCrea noted that this summer has more passenger capacity than 2024, with new daily flights from Portland on Alaska Airlines and Salt Lake City on Delta, as well as United expanding last summer’s flight to Denver, which operated four times a week, to daily service.
  • Alaska Railroad: The Alaska Railroad reported a 5% increase in passenger arrivals and departures at the Fairbanks depot, with 17,669 compared to 16,820. While March through May had declines, June had a very notable increase of 18% with 7,491 compared to 6,135.
  • Morris Thompson Cultural and Visitors Center: The Morris Thompson Cultural and Visitors Center saw a 2% increase of 59,967 compared to 59,008. January had the biggest increase of 30% with 5,004 compared to 3,844. February (-12%) and March (-10%) were the only two months to report a decrease, while the summer months of May (8%) and June (5%) both saw increases.

McCrea said that many partners have been seeing a trend of people making last minute bookings, which is unusual given that Fairbanks and Alaska are destinations that people plan trips for well in advance. “If economic uncertainty is a factor, those last-minute bookings could be the result of people who are monitoring their financial situation and/or shopping for travel deals before making the commitment to come here,” he said, noting that last minute bookings is occurring on a national level as well.

McCrea said many of the businesses who operate during the aurora/winter season are anticipating it being a strong one for both independent travelers as well as tour groups. “We’re seeing that from our visitor engagement specialists who are already taking inquiries from visitors who are looking to come this winter and are reaching out to us for planning assistance,” he said.

That optimistic sentiment over the coming winter was echoed by Kory Eberhardt, owner of A Taste of Alaska Lodge and Aurora Pointe, an aurora viewing lodge.

“Bookings for the upcoming aurora season are looking very strong for both the lodge and Aurora Pointe. Seemingly the interest in the aurora is still retaining popularity despite us having a slower summer season,” said Eberhardt. “Guests are still continuing to book longer stays at our lodge for the chance to see the northern lights. At Aurora Pointe, we are still seeing a lot of independent travelers booking, but we are noticing a larger group tour presence booking in compared to last year.”

Explore Fairbanks also monitors national trends to make comparisons to what might be happening on the local level, said McCrea. Some of the more pertinent recent findings from the U.S. Travel Association include:

  • National Park visitation continues to lag. June visits were down nearly 5 million compared to last year. For the first half of 2025, visits declined by 9.8 million visits year over year. 
  • Total international visits to the U.S. declined 3.4% in the first half of 2025 compared to 2024, including a 5% drop in June alone. Overseas visits (all markets except Canada and Mexico) decreased by 1.2% year-over-year during the first half of the year.
  • Inbound travel from Canada remains challenged with June visits down 26.3% overall—including declines of 34% by land and 24% by air. This marks six consecutive months of decreased Canadian visits. Year-to-date, Canadian arrivals are down 18.9%, translating to 1.9 million fewer visits and a loss of $1.9 billion in travel spending compared to the first half of 2024.
  • Regional analysis of overseas visits shows few notable outliers with most major regions outside North America tracking within a few percentage points of last year’s volumes. 
  • Domestic travel sentiment remains positive. According to data from Longwoods International, a large share of Americans continue to report having near-term travel plans, and surveys from Future Partners show an uptick in willingness to spend on travel and prioritize travel budgets.

To try and combat downturns in the industry, McCrea said that Explore Fairbanks continues to have a regular presence in strategic markets domestically and internationally, keeping the destination in the minds of visitors as well as travel trade (tour operators and travel agents), travel media, and meeting and convention planners. Examples cited by McCrea include the regular advertising efforts being done domestically in the direct flight markets such as Denver, Chicago, Salt Lake City and Portland. The organization has also ramped up its in-state marketing in the Anchorage area to inspire residents there to come to Fairbanks, as well as an “Explore Local” campaign to encourage locals to enjoy the bevy of attractions our community offers.

On the international front, the Explore Fairbanks tourism department along with a handful of industry partners recently attended U.S. Travel Association’s IPW, the premier international inbound travel trade show in the U.S., where they met with more than 160 travel buyers and travel media from a variety of core international markets with very positive interactions.

“As we navigate the evolving travel landscape, we remain steadfast in our mission to promote Fairbanks as a world-class, year-round destination,” said McCrea. “While we recognize the challenges facing the industry, we are confident in the resiliency and the long-term strength and sustainability of the visitor industry in Interior Alaska.”