As the U.S. aims for a record 90 million annual visitors by 2026, any new restrictions could impact the tourism industry. A renewed focus on border control and national security could potentially limit U.S. tourism growth and alter the global travel landscape, affecting airlines, hotels, and businesses reliant on international tourists.
President Biden’s administration implemented regulatory policies that scrutinized mergers, requiring strict consumer protections. Trump’s previous term, however, took a more laissez-faire approach, with fewer restrictions on corporate mergers and partnerships. This could bring new opportunities for airlines and hotel chains to expand through mergers without intense regulatory oversight. The rollback of consumer-focused protections under Trump could also ease the regulatory burden on travel companies, although consumer advocates worry about potential declines in accountability for passenger rights and fair pricing.
Climate policies and sustainable practices
Under the Biden administration, the travel industry benefitted from climate initiatives and incentives for sustainable practices, such as promoting sustainable aviation fuel. Trump's history of climate deregulation suggests he may undo these incentives, which could hinder progress toward greener travel solutions. While companies may enjoy reduced compliance costs, environmental advocates fear that the industry’s momentum toward sustainability may stall, potentially leading to a regression in environmental practices within the travel sector.
Airlines, hotels, and transportation services gained under Biden’s administration from infrastructure spending that modernized airports and reduced congestion on major travel routes. Although Trump has supported infrastructure projects in the past, his approach could shift, adding uncertainty to plans for long-term investments in transportation. Without substantial infrastructure funding, improvements to ease congestion and enhance travel facilities may face delays, impacting service providers and travelers alike.
Economic Policies: taxes, tariffs, and labor market Impacts
Trump’s proposed corporate tax cuts could benefit travel businesses, freeing up capital to invest in growth. However, his stance on tariffs might reignite trade conflicts, with possible repercussions for U.S. aviation companies like Boeing. Rising costs due to tariffs and retaliatory measures from trade partners could disrupt supply chains, affecting global airlines’ ability to meet demand for new aircraft.
Additionally, Trump’s conservative stance on immigration could strain the labor market for seasonal and temporary foreign workers—a vital workforce for hotels, resorts, and restaurants. As the industry faces a post-pandemic labor shortage, employers may turn to automation to fill roles traditionally held by entry-level workers. A tight labor market may drive up wages, challenging employers to balance labor costs while meeting service demand.
The travel industry now enters a period of recalibration as it adjusts to the regulatory and economic changes expected in Trump’s second term. While some companies may benefit from deregulation and lower taxes, potential restrictions on international travel and a rollback of consumer protections raise questions about long-term growth sustainability. With the industry keeping a close eye on policy shifts, this term could reshape U.S. travel dynamics for years to come, balancing growth opportunities with the need for adaptation in a volatile policy environment.
