President-elect Trump will return to the White House in January, and his policies will have a major impact on many industries, including travel.
Some people believe that Trump’s second term will be good for the travel industry, while others worry that inflation will hurt demand.
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According to experts, travelers should look at these changes that can affect travel prices.
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Conflict between Ukraine and Russia has been ongoing since 2014, but escalated in 2022. Israel and Palestine have endured constant conflict, including the current conflict, which began in 2023.
Elad Schaffer, co-founder and CEO of Faye Travel Insurance, said that Trump could lower travel costs and end this conflict.
“If Trump succeeds in ending two long wars in Europe (Russia-Ukraine) and the Middle East (Israel-Hamas, Hezbollah and Iran) as he said, this could lead to a decrease in travel costs and an increase in international travel during his second term,” said Schaffer.
Not only would more people travel to other countries, but countries in conflict may see increased demand for travel. Schaffer brings up travel stocks when analyzing how people feel about Trump’s upcoming term and what impact he might bring to the economy.
“Given the reaction of the public market, major travel companies such as Expedia, Booking and United Airlines have seen their stocks rise significantly (~15%) since Election Day, reflecting the positive economic outlook in the market following Trump’s victory,” he said.
“Of course, this is not clear for travel companies as the rest of the market has seen an uptick, but it makes sense that if inflation remains stable and unemployment remains low, we could see travel continue its remarkable rise since the pandemic.”
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While ending the global conflict will bring down travel costs, Trump’s tariffs could end some of the travel reservations.
Nick Burgess, editor-in-chief of Trip Trend Setters, cited tax as a potential concern for domestic and international travel.
“President-elect Trump’s key economic policy is to impose huge tariffs on the United States’ business partners. This is a similar process, although combined, to what he did in his first term, which saw real purchasing power decline among the American middle class,” Burgess explained.