Skift Take
Politics is never far from travel, and this episode of the Skift Travel Podcast touches on how major political issues are impacting the industry.
The winner of the rapidly approaching U.S. presidential election is bound to have an outsized impact on the travel industry, a topic Skift has examined in recent weeks. But that’s not the only important politics-related matter on the minds of travel executives.
Editor-in-Chief Sarah Kopit discussed how the result of the upcoming election could shape the travel industry and other issues pertaining to politics and travel, including conflicts in Ukraine and the Middle East, with Managing Editor Lex Haris.
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Key Points
Government Actions and Travel: The upcoming U.S. presidential election will significantly impact the travel industry. Broader economic policies such as taxes, inflation control, and stimulus could affect both domestic and international travel demand, especially in terms of consumer spending.
Taxes and Premium Travel: There’s a divide in tax policies between Trump and Harris. Trump’s policies focus on continued tax cuts, while Harris proposes higher taxes for wealthier individuals. This could affect the travel industry’s focus on attracting premium travelers, who may be impacted by tax changes.
Visa Policies and Workforce: U.S. immigration and visa policies play a crucial role in both leisure and business travel. Changes under a future administration could either increase or limit visa issuance, affecting international inbound travel and workforce supply, both vital for the travel sector.
Global Conflicts and Travel Strategy: Ongoing international conflicts, such as those in Ukraine and the Middle East, have localized impacts on travel (e.g., flight rerouting and cruise changes). However, there’s concern about potential escalation, which could disrupt global travel markets more broadly.
Regulatory Environment: The regulatory landscape (e.g., environmental policies, labor laws, junk fees) may shift based on the outcome of the election. Trump has historically favored deregulation, while a Harris administration may continue the stricter regulatory approach seen under Biden. Both scenarios have implications for sectors like aviation and hospitality.
Episode Summary
The podcast delves into the political factors that could shape the travel industry, starting with the potential business impacts of the upcoming US presidential election. Managing Editor Lex Haris highlights how government policies, like taxes and visa restrictions, can influence markets as much as business trends. The conversation touches on how a Trump administration would likely push for tax cuts and deregulation, while a Harris administration might focus on targeted taxes on wealthier individuals and businesses. Immigration policy is also a key topic, with visa issuance and workforce supply being major concerns for the travel sector.
Haris emphasizes that while the election could bring significant changes, a divided government may prevent extreme policies from being implemented fully. The discussion also touches on global conflicts, particularly in Ukraine and the Middle East, which have created localized impacts on travel routes and operations but haven’t yet escalated to disrupt the global travel market.
Finally, they explore trade policies, with tariffs under a potential Trump administration and regulatory measures under Harris being points of contention.
