Online travel agency Expedia says the election of Donald Trump has forced airlines and hotels in the US to cut their prices. CEO Dara Khosrowshahi told reporters the US travel industry slumped as soon as the new president took office in January.
He said this was in part due to stricter immigration policies and the president’s attempts to ban citizens from some Muslim countries. Travel industry analysts say the current high value of the dollar has not helped either.
Statistics show that when the president first tried to introduce the ban in January, inbound tourism for the following week was 6.5 per cent lower than for the same week in 2016. Flight reservations for travel to the US plummeted too. The figures show a 38 per cent drop in bookings from the Middle East and more than 10 per cent from Europe.
Mr Khosrowshahi spoke to the Financial Times and said US prices had dropped this year and this was a sign that the US would have to do something. He carried on by saying that if the US wanted to encourage tourists to keep coming it was going to have to keep prices low.
Another leading light in the travel trade, Frommer’s, claims the Trump effect could lead to a 6.8 per cent fall in the number of international tourists visiting the US in 2017. The analysts say the US’s doom and gloom will be a boon to British holidaymakers as hotel room rates in the likes of Hawaii and Florida will drop even more.