Current global uncertainty has caused a “temporary paralysis” in travel marketing and advertising spend, the Atas Summit has heard.
Speaking on a panel debate, companies said the fast-changing climate since the election of Donald Trump’s election to US president had impacted company behaviour in the travel industry.
Caroline Moultrie, president of travel marketing agency MMGY, welcomed news the Association of Touring and Adventure Suppliers (Atas) had seen sales bounce back since May as “encouraging” as well as the continued prioritisation of travel in consumer household spend.
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But she warned: “There is a sense globally of paralysed thoughts and people worrying about what is going on in the world. Everyone is looking to America to see what happens next.
“A lot of our clients are in the US and want to encourage people from the UK to travel to the US. A lot of US destinations are struggling for funding and are having to jump through hoops with the new administration.
“We are seeing a slowdown in terms of that marketing landscape. Brands are taking their foot off the pedal a little bit in terms of where they put their money.”
She cited news reporting as having an impact on behaviour, with negative reports such as Trump’s public spat with Ukrainian president Volodymyr Zelenskyy leading to a dip in spend which tends to recover around six weeks later.
Charlie Gordon, director, Kantar Media, said Trump’s decision to increase tariffs globally earlier this year was one of the major reasons for a “real moment where people did pause” earlier this year.
“Since April and May we are seeing people still being a bit more cautious but the intent is still there [to travel],” he said.
Sam Conway, head of travel sales, Travelzoo, said “a lot” of companies cancelled or “pivoted” their spend on promoting the US on the deals website because of the “backlash on social media” due to Trump’s rhetoric and actions.
He added: “The US has always been our top long-haul destination but for the first time it dropped mainly led by suppliers not giving us the product [for the US].”
