How have recent policy changes by new administration affected the upcoming busy travel season?

We are almost one month into the new term, and many industries across the nation are feeling the pains of adjustment to new direction. We at Paper Plane Printing are feeling the "growing pains" from multiple perspectives, as many of our business partners are adjusting as well. The cost of goods and services we provide for our Hospitality Partners has gone up beyond what we have planned for at the end of 2024. We have also had a few clients (in busy travel destinations) place their busy travel season marketing campaigns on hold. They have had to tighten their belts due to tourists and business travelers cancelling their reservations for key events in their city, and have let us know that the projects are pending review. Many of our key leading hospitality chains are adjusting their experience promotions for the Spring/Summer 2025 season.

The numbers for the travel metrics are still being tallied at the time of this writing, but we know the numbers from the Department of Commerce will flex and change with the breakneck speed that new policies roll out from the leadership of our nation. The projections that were valid last week do not take into account factors that will affect who will travel, and where they may go, and how long they may stay.

We have also spoken with our own distinguished competitors to attempt to partner-up and mitigate the impact, and we are hearing the same

The current U.S. federal administration has implemented several policies that have negatively impacted hotel tourism:

• Restrictive Immigration and Travel Policies: The administration's consideration of reinstating travel bans, similar to those from 2017 targeting several Muslim-majority nations, has created uncertainty and deterred international tourists. Such policies can lead to longer processing times for visas and passports, making travel to the U.S. less appealing. Additionally, stricter immigration enforcement and potential travel bans may discourage visitors from affected regions, reducing hotel bookings and revenue. The travel bans and new restrictions have already started to affect the number of visitors attending major Spring and Summer events, such as international film festivals, major concert festivals, big ticket sporting events with international superstars, to name a few. Even some of the food tours that have become popular on social media as travelers from far away come to taste legendary local cuisine have been affected.
• Perception of Unwelcoming Environment: The combination of restrictive travel policies and heightened immigration enforcement has contributed to a perception of the U.S. as less welcoming to foreign visitors. This sentiment can deter international tourists, leading to decreased hotel bookings and a potential decline in the overall tourism sector. We at Paper Plane Printing have personally seen that special regional events that celebrate many of the various ethnic groups that make up our beautiful mosaic of peoples are being reevaluated. Hotels and restaurants that normally partner with us for Holi (Festival of Colors), Easter, Ascension (an Interfaith celebration of spring) and Cinco de Mayo have paused perennial marketing projects with us in many cities in both Red and Blue states.
• Trade Policies and Tariffs: As mentioned before, the prices of goods have gone up since 2024, despite attempts to have inflation efforts bring them down. Economic tensions have suppliers raising prices and time tables for items coming into the United States. Proposed tariffs on imports from key tourism markets, such as Canada and China, have lead to increased costs for goods and services within the hospitality industry. These tariffs will result in higher prices for consumers, potentially deterring international visitors and affecting hotel occupancy rates. Hotels who have established, locked-in contract prices right now may not feel the pinch, but by May that story will change. Moreover, targeted countries might implement retaliatory measures, further reducing inbound tourism.
• Funding Withdrawals for Migrant Housing: The administration's decision to revoke $80 million in federal funding previously allocated for housing migrants in New York City has led to financial strain on local governments and service providers. This action has forced cities to reallocate resources, potentially affecting services that support tourism infrastructure, including hotel accommodations. This is affecting the new talent the Hospitality Industry may bring in for the busy travel season, and how these new team members (normally new arrivals to the U.S.) will spend their time and well-earned income in the local community.

These policies collectively pose challenges to the hotel tourism industry by reducing international visitor numbers, increasing operational costs, and straining local resources essential for supporting tourism infrastructure.

So, what adjustments can hotels, restaurants, convention centers and other Hospitality Industry organizations implemented to weather the changes?

Hotels can counteract the decline in foreign or long-distance travelers by focusing on local and regional markets. There are solutions. Some that you may already have in place, others that may appeal to you as a resources to supplement stressed revenue.

Here are some effective strategies:

1. Attract Local Staycationers

Special Packages – Offer discounted weekend or weekday staycation packages for locals.

Themed Experiences – Create experiences like "spa retreats," "romantic getaways," or "family adventure weekends" to appeal to nearby residents.

Re-evaulate Loyalty Programs – Introduce or enhance local resident discounts and perks to encourage repeat visits. Make sure that you coordinate with corporate to ensure all perks fall under corporate guidelines.

2. Strengthen Community Engagement

Host Local Events – A classic that never fails. Offer event space for community gatherings, corporate meetings, or social celebrations. For example: Graduations will be coming up, and your marketing should already be addressing these milestones in your communities.

Partner with Local Businesses – Collaborate with nearby restaurants, breweries, wineries, or entertainment venues to create bundled experiences.

Pop-Up Markets & Art Shows – Invite local artists and vendors to showcase their work in your hotel lobby or event spaces.

3. Enhance Food & Beverage Offerings

Restaurant Promotions – Market the hotel restaurant as a local dining destination, with specials for residents.

Local Menu Integration – Highlight regional ingredients and flavors to attract foodies.

Weekend Brunch & Happy Hours – Draw in community members with enticing food and drink specials.

4. Offer Remote Work & Membership Options

Work-From-Hotel Packages – Provide day-use rooms or co-working spaces with high-speed internet, coffee, and business services.

Membership Programs – Offer gym, spa, or pool memberships to locals who want luxury amenities without an overnight stay.

5. Expand Experiences & Attractions

Wellness & Fitness Programs – Introduce yoga classes, meditation retreats, or guided nature hikes. Coordinate with local fitness influencers who can help bring in people to your events.

Seasonal & Holiday Events – Organize Christmas markets, Halloween parties, or summer poolside movie nights to draw in local crowds.

Adventure & Outdoor Packages – Partner with local tour companies for activities like hiking, kayaking, or historical tours. As mentioned before, coordinate with local influencers.

Host Post Fitness Event celebration - Many people will look for a place to take pictures, re-energize (eat) and keep that communal experience of a great work out (hike, boating experience, horse back) with the people that joined them for the event before they go home. This small celebration may entice them to come back and stay longer at your facility at another date.

6. Focus on Digital Marketing & Local Ads

Geo-Targeted Advertising – Run social media and Google ads targeting nearby residents and businesses.

Local Influencer Collaborations – Cannot stress this enough, as influencers do make shifts in local economies just by attending your event. Coordinating with influences came off as a tough sell of an idea 5-6 years ago, but now this is a proven tactic that works. Work with regional influencers to promote staycations and events. Split the costs of special event cross-marketing to keep their audience coming back to both of you.

Email & SMS Campaigns – Engage locals with exclusive offers and event invitations.

By tapping into the local community, hotels can create new revenue streams and build long-term customer loyalty despite the drop in international travelers.