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Travel Weekly
12 hours ago
- Business
- Travel Weekly
High travel costs overshadow political concerns for overseas visitors, says U.S. Travel's CEO
CHICAGO -- On U.S. destinations' list of concerns, high prices rank higher than presidential politics, said U.S. Travel Association CEO Geoff Freeman. "As I walk on the floor here and talk to people, the biggest concern I hear from buyers is not about administration policy. The number one concern I hear is the cost of travel," Freeman said on June 16 at U.S. Travel's annual IPW conference this week. "I was talking with someone earlier today who just said they went and got a latte and it was $8. That's just a really expensive latte. And it's fair to say that could be a shock for many travelers and it's something we've got to pay attention to." Freeman also said that while there is some weakness in inbound travel, the numbers are "fine," except for Canada. However, "fine" is a missed opportunity. "We should be driving an increase year-over-year in inbound travel to the United States," he said. "It should be a priority for the country. I appreciate that major events are a priority for the administration -- the World Cup, the Olympics, America's 250th birthday -- and they're driving a lot of focus. I hope we can earn the same focus on driving travel to the United States every day of the week. And we're making inroads with the administration to be able to have those conversations." The National Travel & Tourism Office's most recent overseas visitation numbers showed an 8% year-over-year increase in April, followed by a 2.8% dip in May. Year-to-date international visitation to the U.S. is down 0.8%, mainly due to a weak March, when travel fell 11.6%. The NTTO's numbers do not include Canada, the top source market for U.S. visitors, or land crossings from Mexico. Freeman said there has been a "handwringing, sky is falling" narrative about inbound travel in the media. "That's not what the numbers say," he said. "The numbers say that we have some weakness and softening. A lot of that is fueled by Canada. Canada is a market where the decline cannot be debated, and it also can't be argued why they're doing it. They're rallying around their flag, and we've got work to do to earn their business in the future." Freeman said he's disappointed with mainstream media coverage of international travel to the U.S., saying that the media wants to "use our industry to embarrass the administration. They want to make travel the victim and push this angle that the sky is falling. It's very disappointing." He pointed to efforts from the administration to send a welcoming message to travelers, including the presence of Trump and Vice President J.D. Vance for the rollout of the World Cup Task Force, where Trump and Vance said "very clearly in front of the journalists, 'We want you to come to America.' I think that was the first time they had made that comment in this administration. So we very much appreciate that. "That's not to say there aren't areas I think we can do better," he added. "I think we have to acknowledge that a perception has formed that the U.S. is not as welcoming as it was. That at a customs checkpoint you might get detained or your device might be searched. There's more we need to do to assure the world that we do want them to come, that they are a priority for us. And that's a combination of the White House, the Department of Homeland Security, Brand USA, all working together to address this."
The Independent
10-06-2025
- Business
- The Independent
Why isn't there much buzz for the Club World Cup?
The United States is preparing to host the FIFA Club World Cup, but concerns about international travel, fan safety, and economic uncertainty are threatening enthusiasm for the tournament. The Club World Cup will bring 32 professional club teams to 11 U.S. cities with a $1 billion prize pool, but is facing a lack of buzz and slow ticket sales. The U.S. Travel Association has urged the Trump administration to improve visa processing and customs wait times ahead of the Club World Cup, Ryder Cup, next summer's World Cup, and the 2028 Los Angeles Olympics. Secretary of State Marco Rubio has suggested longer shifts for consular staff and the use of artificial intelligence to process visas. A ban on travelers from multiple countries has raised concerns, despite an exemption for athletes and their immediate relatives, spurring worries over safety.
The Independent
10-06-2025
- Sport
- The Independent
Is the FIFA Club World Cup being affected by what's happening in the US right now?
As the United States prepares to host the FIFA Club World Cup, concerns over international travel, fan safety, and economic uncertainty are threatening to dampen enthusiasm for the tournament. The tournament will bring 32 professional club teams from around the globe to 11 U.S. cities, with a $1 billion prize pool. Seen as a rehearsal for the 2026 World Cup, which will be hosted by the United States, Canada, and Mexico, the Club World Cup is facing a distinct lack of buzz both at home and abroad. The expansion of the field from seven to 32 teams has diminished the event's exclusivity, and ticket sales appear to be slow. Adding to the concerns are reports of foreign tourists being detained and visa processing delays. The U.S. Travel Association has urged the Trump administration to improve visa processing and customs wait times ahead of the Club World Cup, Ryder Cup, next summer's World Cup, and the 2028 Los Angeles Olympics. Association President Geoff Freeman noted that the wait in Colombia for a visa interview is upwards of 18 months, potentially impacting attendance at the 2026 World Cup. "They (the task force) recognize how important this event is: success is the only option. So we're eager to work with them to do whatever it is we need to do to ensure that we can welcome the millions of incremental visitors that we think are possible," Freeman said. "But these underlying issues of visa and customs, we've got to address." Secretary of State Marco Rubio has suggested longer shifts for consular staff and the use of artificial intelligence to process visas. "We want it to be a success. It's a priority for the president," said Rubio. Adding to the unease, a ban on travelers from multiple countries has raised concerns, despite an exemption for athletes and their immediate relatives. This has spurred worries over safety, with one Latin American supporters group in Nashville staying away from a recent Major League Soccer game due to ICE activity in the city. Danny Navarro, who offers travel advice to followers on his social media, highlighted anxieties among international travelers and the multicultural U.S. fan base. "They must know that there is an anxiety among international travelers wanting to come in. They must know there's an anxiety among the U.S. fan base that is multicultural and wanting to go to all these places. Are they going to? Are they going to be harassed by ICE?" Navarro said. With slow ticket sales and a lack of visible promotion in some host cities, it remains to be seen how these factors will impact the Club World Cup. FIFA President Gianni Infantino has promised "the world will be welcomed," but some observers believe the U.S. isn't rolling out the red carpet in the current climate.
Business Times
09-06-2025
- Business Times
A luxury travel bubble is swelling
WHEN you go on vacation, do you ever treat yourself to an upgraded airline seat? Or book the (admittedly cheapest) room at a five-star hotel? Maybe splurge on a spa day or celebratory Michelin-starred meal? If any of this sounds familiar, you may be what the travel industry calls an 'aspirational' luxury traveller. And much to the industry's potential dismay, you're also inflating an economic bubble that may be about to burst. According to McKinsey, the aspirational set, defined as those with between US$100,000 and US$1 million in net worth, now accounts for 35 per cent of the global luxury travel market. In 2023, they spent US$84 billion on high-end vacations, a figure expected to grow to US$107 billion by 2028. That purchasing power has helped turn luxury travel from a glamorous niche into a major profit centre, sparking a race among airlines, hotels, cruise lines, tour companies and the rest to cater to and capture this market segment. But what happens when economic uncertainty suddenly brings aspirations back down to earth? Consider the reasons why so many people with money – but not true US$10,000-a-night-suite money – started spending so much on fancy getaways. One is the boom that kicked off with post-Covid 'revenge travel' and was going strong until recently. Even as prices climbed, Americans have increased their travel spending every year since the 2020 bust, according to the US Travel Association. There's also a demographic element: Millennials, the generation that popularised the idea of investing on experiences over things, are entering their peak spending years. A NEWSLETTER FOR YOU Friday, 2 pm Lifestyle Our picks of the latest dining, travel and leisure options to treat yourself. Sign Up Sign Up Perhaps less considered is a cultural shift that's normalised the idea that all travel should be luxurious. You see it in pop culture (who wouldn't check into the White Lotus, body count or no?), but nowhere is the luxury obsession more pronounced than on social media. The travel industry has discovered the marketing power of influencers, gifting them private jet outings and luxe villas that they then flaunt all over our timelines, sending an unmissable message that anyone bunking at a 'meh' chain hotel or stuck in the back half of the plane is a loser. It's gotten to the point that there was even a movement on TikTok to 'normalise' flying coach. As the luxury category has swelled to encompass both the uber-rich and aspirational splurgers, travel companies have been quick to invest. Post-pandemic, the pipeline of new luxury and upscale lodging has been expanding at a faster rate than that of more affordable hotels. At the very top of that range, the number of hotels charging an average daily rate of US$1,000 or more has more than trebled since 2019. Even Airbnb is looking to go upscale – in May it debuted a new service that lets users book a personal trainer, masseuse or chef for in-rental pampering. Meanwhile, US airlines, including United and Delta, have been increasing the share of planes given over to 'premium' seating. Some have also introduced a class of service that falls between business and economy plus (that is, extra-legroom coach seats). The cheapie airlines, too, have had their heads turned by the appeal of luxury options: Southwest has adopted extra legroom seats, while JetBlue and Frontier are planning to add first class. But wider seats, posher rooms and even the odd hot-stone massage may not be enough to woo travellers spooked by a potential downturn and America's increasing hostility to the rest of the world. To hear the industry tell it, the fall-off in the sector's latest earnings is little to worry about. In March, Delta cut its profit and revenue forecast but later reported that 'we are not yet seeing any cracks in premium'. For its part, United said it would trim domestic routes due to weak demand – even as it noted that new premium cabin bookings were up over last year. It's not crazy to think the ultra-rich may keep booking even if, as many are expecting, the economy slows, inflation returns and the stock market falls into a funk. (Though the recent cratering of luxury retail suggests that's not a sure thing.) Unlike the multimillionaire crowd, though, aspirational luxury travellers aren't in a position to ignore the status of their bank and 401(k) accounts. Many of them might understandably choose to trade down to (for shame!) economy-class seats or the kind of hotel that offers a free breakfast buffet. The industry has never been particularly good about thinking beyond the moment. When Covid hit, the airlines hacked schedules to the bone – only to be caught off guard when demand came roaring back, and then to find themselves cutting prices last year when they couldn't fill all the new flights. Meanwhile, the development process for hotels can take years; by the time a new property opens its doors, the environment that inspired its construction is long gone (the glut of supply that came online during the 2008 recession is probably the most painful such example). This would be a smart time for travel companies to take a look back at that chequered history and reconsider just how big they want to bet on luxury carrying them through what could be a bumpy couple of years. For vacationers, a slowing economy could be a reminder that, while creature comforts are wonderful, at its heart, travel is more about people and places than perks. And the companies that find ways to deliver value and keep those experiences accessible are likely to be the ones that come out ahead. BLOOMBERG
Travel Weekly
09-06-2025
- Business
- Travel Weekly
Senate proposal to slash Brand USA's budget sparks industry concerns
The Senate Committee on Commerce, Science and Transportation proposed cutting Brand USA's budget from $100 million to $20 million as part of an effort to reduce deficits by more than $40 billion over a decade and "rescind more than $1.4 billion in wasteful spending." Sen. Ted Cruz (R-Texas), chairman of the committee, unveiled the legislative directives as part of the budget reconciliation bill process. Cruz said the revised budget's "provisions fulfill the mandate given to President Trump and congressional Republicans by the voters: to unleash America's full economic potential and keep her safe from enemies." The U.S. Travel Association said it is "deeply concerned" about the proposal, saying it would "significantly impact every sector of our industry." "U.S. Travel continues to advocate strongly to both the White House and Congress," the association said. "As the reconciliation process moves forward, Congress must align with the President's budget and fully fund Brand USA. With $2.9 trillion in economic output and over 15 million American jobs at stake, the travel industry cannot afford to be overlooked." The Travel Tech Association also issued a statement about the proposed cut, saying, "Congress must fully fund the Travel Promotion Fund and maintain strong support for Brand USA." "With the U.S. set to host the 2026 World Cup, America250 and the 2028 Olympics, the global spotlight is firmly on the U.S. travel industry," said Laura Chadwick, CEO of the Travel Technology Association. "The Senate's proposal to cut funding to the Travel Promotion Fund risks weakening America's tourism industry at this critical moment. Our members play a critical role in connecting travelers to local communities. We understand how tourism -- and Brand USA's work -- drives billions in spending in the U.S., supporting local jobs and businesses, and fueling economic growth in every state. We should not be pulling back, but leaning in. Congress must act to keep tourism strong for Americans and our national economy." Brand USA is funded by a portion of the Electronic System Travel Authorization fees that are collected from international travelers. The proposed cuts come a time when the U.S. is on track to welcome 5.1% fewer inbound international travelers this year, according to Tourism Economics, down from an initial projection of 8.8% growth. The World Travel & Tourism Council estimates the U.S. will lose $12.5 billion in international visitor spending in 2025. Adam Burke, CEO of Los Angeles Tourism, said that in the face of these concerning statistics, the industry needs to "really lean in to support Brand USA." "In advance of the World Cup and Olympics, this is an economic imperative," he said. "We've lost $100 million in terms of our service exports because of the downturn in tourism since the pandemic. And we desperately need to reclaim that share." "People need to understand what a significant driver" Brand USA has been, Burke said.
