President-Elect Trump will return to the White House this January, and his policies will have a significant impact on many industries, including travel.
Some people believe Trump’s second term will be a boon for the travel industry, while others are worried about rising costs hurting demand.
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According to the experts, travelers should monitor these potential changes that can impact traveling costs.
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The conflict between Ukraine and Russia has been ongoing since 2014, but it escalated in 2022. Israel and Palestine have endured regular conflicts with each other, including the current conflict, which started in 2023.
Elad Schaffer, co-founder and CEO of Faye Travel Insurance, suggested that Trump can reduce travel costs by bringing these conflicts to an end.
“If Trump is successful in ending the two long wars in Europe (Russia-Ukraine) and the Middle East (Israel-Hamas, Hezbollah and Iran) as his statements suggest, this could lead to lower travel costs and an increase in overall international travel during his second term,” Schaffer said.
Not only would more people travel internationally, but the countries currently in conflict can see heightened travel demand. Schaffer brings up travel stocks when assessing how people feel about Trump’s upcoming term and what type of impacts it could bring to the economy.
“Judging based on public market response, key travel companies such as Expedia, Booking and United Airlines have seen their stock rise significantly (~15%) since Election Day, reflecting the positive economic outlook in the market following Trump’s victory,” he said.
“Indeed, this isn’t specific to travel companies as the entire market has seen a noticeable uptick, but it stands to reason that if inflation continues to stabilize and unemployment remains low, we could see travel continue its incredible rise since the pandemic.”
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While ending global conflicts would bring travel prices down, Trump’s tariffs can undo some of those savings for travelers.
Nick Burgess, the editor-in-chief for Trip Trend Setters, cited tariffs as a notable concern that can impact domestic and international travel.
“President-elect Trump’s key economic policy is to levy major tariffs against key trade partners of the United States. This is a similar, albeit beefed-up, approach to what he did in his first term, which saw real purchasing power shrink among the American middle class,” Burgess explained.
“However, the travel industry was hit particularly hard by rising costs due to tariffs from 2017 to 2019, including the costs of furnishing the rooms, which affected even basic domestic travel. Tariffs from Chinese-made products, like refrigerators, mattresses, TVs and microwaves, skyrocketed hotel costs, which were then passed onto the consumer.”
Joe Cronin is the president of International Citizens Insurance, which helps people research, compare, and purchase insurance plans for their relocation abroad or international trips. Cronin cited Trump’s visa policies as a concern that could affect U.S. tourism.
“Tighter visa policies during Trump’s presidency might dramatically increase travel costs and reduce ease of access for foreign visitors, potentially slowing down U.S. tourism,” Cronin said.
“We saw President Trump implement a significant change in visa requirements, which complicated international travel and increased fees and wait times; this could persist in his second term as president.”
Cronin also mentioned how currency exchange rates became more volatile under Trump’s first term.
“There are also instances in the past when Trump’s economic policies resulted in volatility in exchange rates impacting the cost of international travel,” he explained. “If these policies are replicated, travelers will have to encounter increased costs when moving around the world.”
Trump’s policies tend to strengthen the U.S. dollar. A stronger dollar makes it easier for U.S. citizens to travel internationally. However, it can hamper U.S. tourism due to unfavorable exchange rates.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: Trump Won the Election: 4 Changes That Could Be Coming to the Cost of Travel in the Next 4 Years
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