US tourism in free fall: Trump's customs policy is putting airlines in trouble!

US tourism in free fall: Trump's customs policy is putting airlines in trouble!

In recent months, the impact of President Donald Trump's tariff policies has had a significant impact on the US tourism industry. According to a recent study by Allianz Trade, this could lead to dramatic declines in revenue for US airlines that compete directly with international providers. The forecasts show that the profit margins of US airlines remain at a low level despite lower jet fuel prices. Of particular concern is the forecast for North American airline revenue growth in 2025, which is just 1.0 percent. This represents the weakest growth among global competitors, as oe24 reports.

A main reason for this inadequate development is the reduced domestic demand. The average load factor for domestic American flights fell 6 points to 78 percent. This has a direct impact on international tourists' travel habits and willingness to visit the United States. Surprisingly, 52 percent of the 72 million international tourists come from Canada and Mexico, where tariffs appear to be having a chilling effect. Passenger numbers from Europe, especially German and Spanish tourists, also fell in the first three months of the year.

Impact on the tourism sector

While US airlines face significant challenges, European airlines offer a more optimistic forecast. They expect sales growth of 10 percent in the same period, which is due to lower fuel prices and high ticket prices. At the same time, manufacturing problems and a global order backlog of 17,000 aircraft have severely limited the availability of new jets. Analysts point out that aircraft prices have increased by 16 percent in the last five years and a further increase of 20 percent is expected by 2030.

The travel market in the USA, whose turnover is expected to reach 203.774 billion euros in 2025, contrasts with the difficulties of airlines. According to Statista, the hotel market will be the largest sub-sector in travel and tourism with a volume of 104.545 billion euros. With a projected user base of 185.292 million in 2029, the segment shows steady growth, while parallel trends also point to domestic travel and alternative accommodation types.

Careful monitoring of the market shows that despite the difficulties faced by US airlines, demand for travel and tourism services is growing steadily. The effects of economic stability and the consumer climate have a major influence on the further development of the US tourism market. Travel and booking habits are changing, with the favorite providers including online travel agencies.