Business

Overnight Boarding Down? typography
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Overnight Boarding Down? typography
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Here's Why and What to Do About It typography

By Laura Laaman

In previous years, pet care businesses could reliably count on the holiday rush to fill their buildings without much extra effort. But if you’re like most owners, you may be wondering, “Where are all the pet parents and pets this year?”

Well, fewer pet parents are traveling than in previous years—and that’s the problem. Consumer priorities took a sharp turn in the second half of 2025, and our industry is feeling the pinch. Let’s look at the reasons why, what we can do about it and how to turn this decline into a springboard for a brighter future.

Why Has Boarding Demand Decreased?
Simply put—when people travel less, they don’t need to board their pets as often. And after years of post-pandemic recovery, we’re now vying with a travel cooldown to be reckoned with.

For the first time since the tumultuous year of 2021, U.S. travel spending has dipped into negative territory. According to the U.S. Travel Association, summer 2025 spending was down nearly half a percent year over year1—a small yet significant reversal after years of steady growth. Reduced passenger demand has forced nearly all major U.S. airlines to cut huge numbers of flights, while the hotel industry has seen similar upsets.

Many owners may be tempted to buckle down and hope travel makes a quick comeback, but that’s a dangerous waiting game.

Forecasts are not much more comforting, either. Analysts at Tourism Economics recently updated their outlook to indicate zero revenue growth for U.S. hotels for the end of this year.2 Even Airbnb was forced to lower its growth forecast for the second half of 2025.

The reasons for these trends are layered and complex. Continued economic uncertainty, rising costs, reduced discretionary spending and even government policy shifts all play a role. But the big picture is increasingly clear: Consumer spending habits have shifted, and more people are staying home.

What Does This Decrease Mean for Pet Care?
For most pet care businesses, overnight boarding is their bread and butter, and revenue drops put strain on everything. Staffing, scheduling, quality of care and operations can all suffer. Costs like rent/mortgage, taxes, utilities, supplies and countless others get increasingly harder to cover—not to mention diminished profit for the owner to live a well-deserved, comfortable life.

Many owners may be tempted to buckle down and hope travel makes a quick comeback, but that’s a dangerous waiting game. Competition is fiercer than ever, with deep-pocketed corporate rivals and tech-based alternatives striving for market share. Meanwhile, the cost of doing business—everything from cleaning supplies to wages—continues to rise. Waiting it out is rarely a safe bet, and it’s almost never a winning strategy. History shows businesses that adapt are the ones who will stay strong.

The Opportunity in Down Economies
The good news is, downturns don’t just weed out the unprepared—they make space for great companies to truly thrive. Harvard Business Review research shows that while one in seven publicly owned companies failed during the 2009 Great Recession, about one in 10 skyrocketed to new heights.3

In addition, newer post-pandemic data shows that some of the most recognizable brands in the world came out of both recessions stronger than ever thanks to their adaptability.

Starbucks doubled down on innovation and invested in their employees with robust benefits while countless other companies executed mass layoffs. Procter & Gamble introduced game-changing products and invested in marketing and brand-building while competitors withered away. Toyota anticipated market needs, rolling out fuel-efficient vehicles and optimizing operations while managing to avoid a single layoff.

And it’s not just about growth. Per Morgan Stanley, nearly half of Fortune 500 companies were started during recessions or economic crises.4 Companies like Disney, FedEx, Microsoft, General Motors and Costco all started in tough times.

How to Thrive—Not Just Survive
For pet care businesses, this is the time to stop thinking, “How do we survive?” and start thinking, “How do we come out stronger than ever?” Well, chances are good that you already provide exceptional pet care, and that’s half the battle. Here are three proven strategies to win you the other half.

1. Diversify Your Services
Most pet parents need more than just boarding when it comes to their pet’s care. Dog daycare, training and grooming are all important services with strong revenue potential—and unlike boarding, they’re independent of travel patterns.

Dog daycare has grown increasingly popular over the past decade, especially among the millennial and Gen Z pet parents who now make up the largest share of your customers. If you don’t offer daycare, those customers will find someone else who does—and bring their boarding business there, too. You already have the building, yards and staff, so adding or expanding daycare doesn’t mean reinventing the wheel. A robust daycare program attracts more new customers, promotes better customer loyalty, and creates meaningful breathing room during the boarding off-season or during travel slumps.

A top-down studio shot of silver grooming shears with pink-lined finger loops, crossed over a long, silver metal grooming comb. The tools are placed on a white background.
Dog grooming is a necessity for many pet parents, especially with the rise in popularity of “doodle” breeds. From goldendoodles and cavapoos to poochons and schnoodles, these dogs require regular haircuts—about every four to six weeks depending on the dog.
In-house dog training is low-hanging fruit rarely seized by the competition. The truth is, most pet parents don’t need all the bells and whistles—they just need basic obedience and manners training for their pets. They want to walk their dog around the block without being pulled or to trust their dog will come back when they say “come.” Your existing staff may already be willing and able to learn to do this kind of training with some instruction and sales training. If implemented well, in-house dog training meets a natural demand, helps you reach even more pet parents and has the potential to bring in high profits.

Dog grooming is a necessity for many pet parents, especially with the rise in popularity of “doodle” breeds. From goldendoodles and cavapoos to poochons and schnoodles, these dogs require regular haircuts—about every four to six weeks depending on the dog. And as any doodle owner can tell you, that adds up quickly! If you can’t swing full-service grooming, even simple dog bathing and nail trims can add another stream of revenue to keep clients coming back, whether they’re traveling or not.

2. Invest in Phone Training
A lot has changed in our culture, including the way we communicate. The phone may feel like a relic of the past—maybe even a nuisance you feel tempted to ignore. But here’s what else has changed culturally: Pet parents are humanizing their pets at unprecedented levels. A 2024 Harris Poll showed that 82% of American pet owners feel their pet is like their own child.5

That means pet parents are still picking up the phone to give you a call. They want to hear a human voice and be reassured their pet is in safe, trusted hands—whether it’s for boarding, daycare, training or grooming. So whoever is answering the phone at your facility needs to be primed to make the most out of every call that comes in. They don’t get a second chance to convert that first contact.

This is a huge ask for an untrained and unprepared employee who may or may not even have the right skillset. That’s why one of the most meaningful (yet underutilized) ways to stand apart from your competition is to invest in phone training. With the right preparation, messaging and toolkit, an effective phone team can literally make or break a pet care business.

3. Price Appropriately
If you’re not priced appropriately, it doesn’t matter how much everything else is working, you won’t be profitable. Pricing is one of the more complicated, volatile and consequential aspects of business ownership—especially in rapidly changing economic conditions. For this reason, many top pet care facilities turn to third-party business consultants for pricing. But, there are few quick diagnostics you can use to determine if it’s time for a strategy change.

First you must examine your price model. The most common price model in this industry is the all-inclusive model—which means playtime is bundled into overnight care. This is, unfortunately, also the most disadvantageous approach. The relatively large flat rate can be alienating to some customers while undercapitalizing on others. A tiered activity, package-based model allows you to charge a lower base rate while offering the customer their choice of activity packages. Having a choice is shown to motivate customer purchasing habits, and a more customized experience is better for the pets, too.

Next, ask yourself how often you reassess and adjust your rates. If you’re like most, probably not often enough. Smaller, more frequent price adjustments help your business keep pace with increasing costs while preventing the sticker shock of larger price jumps. Once you’ve identified your ideal prices, best practice is to go forward with minor adjustments at a regular schedule—at least once per year, but ideally two or more times yearly. This ensures you can bring in enough revenue to pay your expenses and staff while growing sustainably even through the travel downslide.

To effectively charge the premium rates you deserve, though, everything else has to match those rates. This means making a great impression where it matters most: professional and enthusiastic staff (both on the phone and at the front desk), an attractive and navigable website, and even the state of your building and lobby (any chipping paint, unpleasant smells or excessive dirt?). This all affects your perceived value and whether the experience at your facility is worth the price in the customer’s mind.

Yes, boarding demand is down. But history shows us something important: The most enduring companies aren’t built in times of comfort—they’re solidified in times of challenge. Those that embrace adaptability, invest in their business and lean into innovation can look back on today as the turning point when their success stories truly began.
References:
  1. The U.S. Travel Insights Dashboard. (2025, June). U.S. Travel Association. https://www.ustravel.org/research/travel-recovery-insights-dashboard
  2. Forecasters now expect zero revenue growth for U.S. hotels this year. (2025, August). Travel Weekly. https://www.travelweekly.com/Travel-News/Hotel-News/Forecasters-expect-zero-revenue-growth-US-hotels-2025
  3. Roaring Out of Recession. (2010, March.). Harvard Business Review. https://hbr.org/2010/03/roaring-out-of-recession
  4. Nearly half the Fortune 500 was created during times of economic stress. (2022, September). Market Watch. https://www.marketwatch.com/story/heres-the-good-news-if-theres-a-recession-nearly-half-the-fortune-500-was-created-during-times-of-economic-stress-morgan-stanley-says-11663156317
  5. The State of Pets: Unpacking America’s Pet Preferences. (2024, October). The Harris Poll. https://theharrispoll.com/wp-content/uploads/2024/10/State-of-Pets-October-2024.pdf

Laura Laaman is president of Outstanding Pet Care. If you’re interested in the strategies discussed in this article and want to grow your revenue with our proven, guaranteed services, schedule a consultation by calling 1-888-836-8740 or visiting www.outstandingpetcare.com/contact

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