U.S. Election Could Dramatically Shift Global Travel and Hotel Performance

According to a blog post by STR, the results of US elections can have significant implications on global travel and hotel performance. This is mainly due to the economic policies implemented by the elected administration, which can affect international relations, trade agreements, and visa regulations, among other things. These factors, in turn, influence travelers’ decisions about whether or not to visit the United States.

Historical data suggests a correlation between the US election cycle and fluctuations in global hotel demand and performance. For instance, during President Obama’s second term (2013-2016), there was a significant increase in international inbound travel to the United States. This was likely due to favorable economic conditions and liberal visa regulations encouraging foreign tourists to visit America.

However, during President Trump’s term (2017-2020), there was a decline in international inbound travel. This is believed to result from restrictive immigration policies and strained diplomatic relations with certain countries. These factors discouraged foreign tourists from visiting America, negatively affecting the hotel industry.

Regarding regional impact, Asia Pacific saw increased American outbound travel during Obama’s second and Trump’s terms. Europe also saw an increase in American outbound travel during Obama’s second term but experienced a decline during Trump’s term.

The current COVID-19 pandemic has further complicated matters as it has severely impacted global travel trends. However, it is essential to note that these trends are not solely determined by political events such as elections but are also influenced by various other factors, including economic conditions, technological advancements, social trends, etc.

While it is difficult to predict precisely how the outcome of future US elections will impact global travel and hotel performance, they can have a significant influence. As such, industry stakeholders should closely monitor political developments in the United States to understand and respond to potential changes in global travel trends.