Tariffs, Travel Bans and Economic Uncertainty Drive Travel Advisors to Pivot Business Strategies

The American Society of Travel Advisors (ASTA) recently released findings from its June 2025 follow-up survey of U.S. travel advisors, highlighting a noticeable shift in sentiment and business strategies compared to similar data gathered in March 2025. The surveys explored the impact of recent federal executive actions, travel bans and tariffs on the travel industry.

"Our members expressed their views plainly in our most recent national survey," said Zane Kerby, ASTA President and CEO. "They are seeing hesitation in their clients, cancellations in their bookings and fear in their conversations. They are shouldering the burden of misinformation and working overtime to educate and protect the travelers who count on them most. For some, business is still thriving. For others, survival demands a pivot toward new markets, safer regions, more flexible pricing and above all, clear-eyed strategy."

The full results of the survey are proprietary and an ASTA Premium Member benefit, along with an accompanying white paper compiled by ASTA staff. The efforts, ASTA says, are intended to help guide industry leaders during this time of uncertainty.

"In the travel industry, uncertainty is poison," Kerby said. "We know that when consumers feel unsure about the state of the economy, about global conflict, about whether they'll be welcome at their destination—they pause. They wait. Sometimes, they cancel their travel plans altogether. In that moment, our members who are the backbone of the travel economy pay the price."

• Survey results show a moderate but clear downward shift in consumer demand between March and June. While the proportion of agencies reporting a significant drop in demand held steady, those noting a slight decrease rose from 32.5% to 38.8%. This reflects a broadening impact across consumer segments.

• The perception of policy-driven disruption also intensified. In June, more advisors pointed to both tariffs (27.9%) and travel bans (12.4%) as key factors affecting their business, up from 23.1% and 8.3%, respectively, in March.

• Postponements of international travel climbed to nearly 59% in June, up from 49% in March. While outright cancellations saw a slight decrease, this shift suggests that while travelers haven't given up on international trips entirely, they're increasingly opting to wait and see.

• International leisure travel remains the hardest hit segment of advisor business, with 69.2% of advisors citing it as the most affected category—up a striking 9.2 percentage points from March.

Respondents across both surveys voiced concerns over economic instability, misinformation and fears related to international safety and immigration policy. However, tone and urgency shifted notably from March to June. Many advisors are "anxiously reactive," noting the mounting sense of burnout, client frustration and realignment of business models.

Themes in commentary included concerns about international perception of U.S. travelers, client hesitations rooted in political rhetoric and economic headwinds impacting discretionary spending.

"Looking ahead to the rest of 2025, travel interest is still high, but so are the potential risks and roadblocks," said Michael Schottey, ASTA Vice President of Membership, Marketing and Communications. "Understanding what's changing and how agencies are responding is key. ASTA is here to support that process and ensure the travel advisor community stays informed, prepared and connected."

Learn more by visiting ASTA.

Courtesy of Groups Today.

The Beyond Borders Tourism Coalition, a unified alliance of U.S. and Canadian tourism, trade, and association stakeholders, is calling for urgent policy clarity and coordinated action in the face of escalating tariffs and the recent funding cuts of critical NGOs and infrastructure support, while historic uncertainty grips cross-border travel.

The combined effects of tariffs, funding cuts, new fees to enter the U.S., and uncertainty at border crossings are undermining recovery, deterring new investment, and reducing opportunities for cultural and economic exchange.

"Rising tariffs and economic headwinds are cutting into consumer purchasing power, reducing demand for U.S. vacations, and forcing our members to reconsider future investment and hiring. The economic impact has been immediate and measurable—USTOA members are already reporting millions of dollars in lost bookings and revenue, with some projecting a decline of up to 11% in international visitor spending for 2025 alone," said Terry Dale, President, United States Tour Operators Association. "These losses translate to cutbacks in operations, workforce reductions, and missed opportunities for communities nationwide. The ripple effects across our sector are deeply concerning, underscoring the urgent need for clear, stable policies that support a thriving U.S. travel economy."

The Beyond Borders Tourism Coalition identified earlier this year that proactive, collaborative approaches are needed to reverse these trends and restore confidence in an industry that in the past contributed approximately $2.5 trillion USD to North America's GDP, making up 9% of total economic output. In the U.S., tourism supports close to 20 million jobs while in Canada 1.9 million jobs are attributed to the visitor economy.

"Thousands of jobs are on the line as these damaging tariffs disrupt the flow of tourists, drive up costs, and threaten our members' livelihoods. The economic toll is immediate: Canadian tour operators are facing millions of dollars in lost bookings and mounting operational costs, with some businesses reporting declines of over 70% in cross-border travel activity for 2025," said Jean Hébert, Executive Director, Canadian Association of Tour Operators (CATO). "If decisive action isn't taken, our communities will feel an economic impact that could take years to reverse as tourism-dependent businesses struggle to survive and local economies miss out on vital revenue."

The negative impacts on the visitor economy on both sides of the border continue through what is traditionally tourism's busiest season across North America.

• Plummeting Travel Bookings: Foreign tourist spending in the U.S. is forecasted to drop by 11% in 2025, an $18 billion loss. Advanced air bookings between Canada and the U.S. have fallen by over 70% year-over-year.
• Hospitality Warning Signs: Major hotel chains and urban tourism boards are bracing for sharp declines (as much as 6-7% in some cities) in international visitation owing to economic and policy headwinds, with companies adjusting revenue forecasts downward (that according to Bloomberg and Hospitality Insights).
• Consumer Impacts: Tariffs are driving the cost of goods higher on both sides of the border, eroding discretionary travel budgets and undermining consumer and business confidence in travel planning.
• Regional & Indigenous Impact: Community initiatives and Indigenous-led tourism are being threatened by reduced travel, job cuts, and cultural setbacks.

"The ATTA's recent global survey makes it clear: political instability and uncertain government policies are being sharply felt across the adventure travel sector. Our research shows that 93% of U.S. operators and 89% of their international counterparts anticipate negative impacts for at least the next year," said the Adventure Travel Trade Association's CEO Shannon Stowell. "While our industry is holding steady for now, the greatest challenge is uncertainty—especially around finances, safety, and the potential for sudden policy changes that disrupt travel plans and business confidence. As an industry, we must continue to adapt, but lasting resilience will require stronger support, greater policy clarity, and a renewed commitment to cross-border collaboration."

All members of the Beyond Borders Tourism Coalition urge policymakers in the U.S. and Canada to prioritize negotiation, transparency, and cross-border cooperation over protectionist measures. Divisive trade and fiscal policies need to be reassessed in favor of approaches that restore confidence and support the livelihoods of millions:

"Both the U.S. and Canadian tourism economies have lost millions in revenue due to drastically reduced cross-border travel. The economic impact ripples across communities—from tour companies of all sizes to main street hotels and restaurants, iconic attractions, big cities, and rural destinations—many of which depend heavily on cross-border tourism to stay afloat," said Catherine Prather, President of the National Tour Association. "Beyond advocating for stability, proper funding, and common-sense policy, we urgently need to restore global confidence that the U.S. remains a safe, welcoming, and inclusive destination. Without that commitment, the long-term viability of our industry and the communities we support is at serious risk."

"Motorcoach tourism is the backbone of North American travel, generating $90 billion annually in group travel and connecting millions to vibrant cities, historic towns, and natural wonders," said Fred Ferguson, President and CEO of the American Bus Association. "Our industry supports 500,000 jobs and countless small businesses, providing accessible and sustainable travel options for all. As a vital economic driver, motorcoach tourism fuels local economies and enriches communities. It's essential that policies continue to promote both vibrant international and domestic travel—ensuring long-term growth and opportunity for our industry and the travelers we serve."

"Student and youth travel is a cornerstone of North America's visitor economy, generating billions in economic activity, supporting thousands of jobs, and providing life-changing educational and cultural experiences for young people each year. These journeys foster global understanding and inspire future leaders," said Carylann Assante, CAE, CEO of the Student and Youth Travel Association (SYTA). "Sadly, new tariffs and ongoing economic instability are making travel unaffordable for many schools and families. Rising costs, canceled programs, and greater uncertainty are cutting off opportunities just when our youth need them most. Protecting student and youth travel isn't just about economics—it's about safeguarding access to learning, exchange, and hope for the next generation."

"Indigenous tourism is a vital bridge connecting communities, cultures, and economies across Canada and the United States. This sector creates opportunities for Indigenous entrepreneurs, fosters cultural revitalization, and delivers unique experiences that attract millions of travelers every year," said Keith Henry, President and CEO of the Indigenous Tourism Association of Canada (ITAC). "But the recent wave of tariffs and mounting political instability threatens all we have built. Rising costs and uncertainty hurt Indigenous-owned businesses disproportionately, putting jobs, livelihoods, and intergenerational knowledge at risk. To protect the promise of Indigenous tourism—for our communities and for future generations—our leaders must restore stable, open, and collaborative cross-border policies that allow Indigenous tourism to thrive."

"International inbound travel is one of America's strongest economic exports and a powerful tool for global connection—yet it's being undermined by shortsighted policies, increased entry costs, and damaging rhetoric," said Lisa Simon, CEO of the International Inbound Travel Association (IITA). "Our members are seeing lower bookings for the fall and into 2026 due to avoidable barriers like visa delays, excessive fees, and policy unpredictability. This is not just bad for business—it's bad for America's global image. We call on U.S. leaders to treat inbound travel as the essential economic and diplomatic asset it is and to act urgently to restore competitiveness, clarity, and confidence in traveling to the United States."

"For Destination Original Indigenous Tourism, we've seen firsthand how recent regulations are jeopardizing opportunities on the world stage—including Indigenous inclusion in major cultural showcases. With global eyes turning to North America for events like the upcoming FIFA World Cup, this is our chance to welcome guests to our lands and lift up Indigenous musicians, artists, and creators from Canada, the U.S., and Mexico. Now, those voices risk being silenced," said Sebastien Desnoyers-Picard, President and CEO of Destination Original Indigenous Tourism (DO-IT). "This is more than a cultural loss—it's a missed economic opportunity in marketing, sales, and global reach for communities already facing barriers. The impact could be profound and far-reaching."

Courtesy of Groups Today.

Expedia Group's 2025 Traveler Value Index signals a shift in consumer priorities.

New research is shedding light on how travel consumer's preferences and priorities have been evolving this year. Included in these findings are significant shifts in how travelers plan and book travel compared to previous years, including a surge in social media influence and the impact of trust.

According to Expedia Group's 2025 Traveler Value Index, travel remains a top priority, with 88% of global consumers planning a leisure trip in the next year, and 68% aiming to book international travel—up 19% since 2022.

"In today's climate of economic and geopolitical uncertainty, understanding how travelers' plans, preferences, and values are shifting has never been more important. What's clear from this year's data is that, despite these changes, the desire to travel remains a fundamental part of everyone's lives," Expedia Group Chief Commercial Officer Greg Schulze said in a press release. "At Expedia Group, we provide partners with the insights and tools they need to meet these changing expectations and create exceptional experiences. Together, we can withstand any storm and help travelers turn their journeys into lasting memories."

Below are some key insights from the research.

TRAVEL IMPORTANCE REMAINS HIGH:

• With 50% of consumers saying it's more vital now than five years ago—highlighting travel's essential role in personal fulfillment.

• Despite ongoing uncertainties, 88% plan to take a leisure trip in the next 12 months, and two-thirds (68%) are likely to book international travel—a 19% increase since 2022.

• Additionally, travelers are increasingly embracing flexcations and bleisure trips, blending work and leisure to meet their evolving needs.

PRICE IS CRITICAL, BUT TRUST IS ESSENTIAL TOO:

• Price remains a key factor, with 58% of consumers expecting to be more price-conscious in the next 12 months.

• However, trust is just as vital—three-quarters of travelers are willing to pay more for lodging with better reviews, underscoring the importance of confidence and reliability in their choices.

TRAVELERS ARE INCREASINGLY TURNING TO SOCIAL MEDIA FOR TRIP INSPIRATION:

• Over half (61%) now find trip ideas on platforms, up from 35% in 2022.

• Additionally, 73% say influencer recommendations have influenced their decision to book a trip or travel component, emphasizing the growing importance of trustworthy, peer-driven insights.

THE DESIRE TO BOOK TRAVEL THROUGH LOYALTY PROGRAMS CONTINUES TO GROW:

• 83% of travelers consider travel their top category for redeeming loyalty points, while 82% are interested in booking travel through loyalty programs outside of the travel industry, such as credit cards or retailers, highlighting the expanding influence of non-travel loyalty rewards.

NOTABLE REGIONAL AND GENERATIONAL DIFFERENCES EMERGE FROM THE RESEARCH:

• Consumers in China (87%), the UK (77%), and Germany (72%) are more likely to plan international trips within the next 12 months. Meanwhile, those under 40 show a stronger preference for blending work and leisure, often opting for bleisure and flexcation trips.

• For hotels, vacation rentals, activities, and cruises, positive reviews are a key decision factor—particularly for younger travelers, with 80% willing to pay more for lodging with better reviews.

• Air travel priorities vary: while affordability is most important across many regions, travelers in China seek contactless experiences, and those in Germany value full refunds the most. Canadians, Australians, French, and Italians also rank price as the leading consideration.

• Price remains the dominant factor for car rentals worldwide—especially in the U.S., Canada, and Australia—but for those under 40, positive reviews are nearly as influential in decision-making.

• Finally, younger travelers, particularly under 40, are more heavily swayed by social media; 84% report that influencer recommendations have impacted their booking choices.

Learn more and download the full report at Expedia Group.

Courtesy of Groups Today.

Want articles like this one sent directly to your inbox? Subscribe to our weekly eNews here. 

Passengers can now keep their shoes on at TSA security checkpoints.

Have you heard? The days of removing your shoes to go through airport security for all travelers is officially over. The Department of Homeland Security recently announced a new policy which allows passengers traveling through domestic airports to keep their shoes on while passing through security screening at TSA checkpoints.

The DHS says the policy, which went into effect immediately, will increase hospitality for travelers and streamline the TSA security checkpoint process, leading to lower wait times.

"Ending the 'Shoes-Off' policy is the latest effort DHS is implementing to modernize and enhance traveler experience across our nation's airports," said Homeland Security Secretary Kristi Noem. "We expect this change will drastically decrease passenger wait times at our TSA checkpoints, leading to a more pleasant and efficient passenger experience."

Noem continued to explain that security remains a top priority, and that thanks to cutting-edge technological advancements and multi-layered security approach, DHS is confident they can implement this change while maintaining the highest security standards.

Other aspects of TSA's layered security approach will still apply during the TSA checkpoint process. For example, passengers subject must still clear identity verification, Secure Flight vetting, and other processes.

Ending the "Shoes-Off" policy is the latest in a series of changes DHS has implemented since the Trump administration entered office. On July 2nd, TSA announced its "Serve with Honor, Travel with Ease" program which provides special benefits to uniformed service members and their families, including a TSA PreCheck enrollment discount and expedited access lanes at select airports. In May, TSA began implementation of REAL ID at airport checkpoints, which has seen a 94% compliance rate and has led to what DHS says is a more efficient security process.

Courtesy of Groups Today.

Want articles like this one sent directly to your inbox? Subscribe to our weekly eNews here. 

Global Travel Alliance, a leader in educational and group travel experiences, has announced the appointment of Steve Maehl as its new President.

With over two decades of dedication to the student travel industry and more than 20 years of service at Global Travel Alliance, Maehl brings exceptional leadership, experience, and passion for transformative travel.

"Steve has been part of Global Travel Alliance since our earliest days, helping build our mission of inspiring and educating through travel. His appointment as President is a testament to his unwavering commitment to our partners, travelers, and team," said Ethan Screnock, Partner at Global Travel Alliance.

Maehl joined Global Travel Alliance in July 2004 as one of its founding team members. Over the years, he's held multiple leadership roles, including most recently, Executive Vice President, where he oversaw all aspects of trip planning, customer service, and partner relations. His tenure has been marked by a focus on safety, quality, and memorable educational experiences for thousands of students and travelers.

In addition to his work with Global Travel Alliance, Maehl is widely respected throughout the student travel community, having served as President of the Student & Youth Travel Association (SYTA), as well as, serving on both the SYTA Board of Directors and Board of Trustees for the SYTA Youth Foundation. His industry involvement has advanced best practices and raised the bar for student travel safety and quality. Maehl was instrumental in the development of an international program of standards for tour operators, the Certified Student Travel Organization (CSTO) and led Global Travel Alliance to be the first CSTO company in the world.

Maehl holds a strong belief in travel as education and is known for fostering relationships built on trust and integrity. His vision for Global Travel Alliance emphasizes innovation, partnership, and delivering exceptional value to educators, group leaders, and travelers alike.

"I'm honored to serve as President of Global Travel Alliance," Maehl said. "Travel has the power to build bridges and change lives, and I look forward to working with our incredible team and partners to continue delivering safe, enriching, and unforgettable journeys."

Global Travel Alliance remains committed to its mission of opening minds and hearts through transformative travel, and Maehl's leadership promises to usher in an exciting new chapter of growth and service.

For more information about Global Travel Alliance, visit Global Travel Alliance.

Courtesy of Groups Today.

Photo courtesy of Global Travel Alliance.

Want articles like this one sent directly to your inbox? Subscribe to our weekly eNews here.