Low demand from overseas means more bargains in cities like New York or San Francisco (Photo: Chris McGinnis)
Bargain-hunting travelers could see some relief from high hotel rates and airfares as demand slows and travel deals proliferate.
While the stock market is experiencing a record setting “Trump bump,” the U.S. travel industry is girding for a big slowdown in visitors from other countries resulting in a “Trump slump.”
That is bad news for the travel industry. But it’s good news for bargain hunting travelers faced with sky high rates in recent years, especially for hotels in cities favored by international visitors such as New York, Washington, Miami, San Francisco and Los Angeles.
It’s also good news for frequent flyers and loyalty program members hoping to cash in points and miles on overseas trips as lower demand translates into more availability.
President Trump has cost the US travel industry $185 million in lost revenue, with significant drop in flight searches and bookings from the U.K. according to The Guardian. The British newspaper pointed to data released by Kayak this week showing that searches for flights to Miami, Tampa and Orlando from the U.K. are down almost 60 percent. San Diego searches are down 43 percent. Las Vegas is down 36 percent and Los Angeles is down 32 percent.
New York City tourism officials expect to see 300,000 fewer international visitors this year according to the New York Times- but it expects more domestic visitors.
Rates in cities like Washington DC could decrease due to lack of interest by foreigners (Photo: Chris McGinnis)
Kayak says that according to its data, “Brits are falling out of love with the USA in a major way. Searches for flights to key U.S. destinations have fallen off a cliff.”
That lack of interest is already translating into lower rates. Kayak reports that average prices for hotel rooms in Las Vegas are down 39 percent on average, in San Francisco they are down 34 percent and even New York has seen hotel prices fall by 32 percent. (Rates could fall even more in SF according to this recent TravelSkills post)
Anecdotally, I’ve noticed a big drop in hotel rates in New York City, especially in the overcrowded mid-range. Last month I stayed in a New York Hilton Garden Inn for just $149 per night, and I’ve seen similar low rates all winter long, some extending into spring.
In the U.K., Kayak’s Suzanne Perry said, “The story of the summer is the fall of interest in the States. We noted that searches to the USA dropped after the new president came to office – but it seems like this is a longer-term trend. The US has historically been one of the most popular countries for Brits, but searches to popular destinations falling by over half in one year is a massive shift.”
The same thing is going on in the air. Searches for flights to the U.S. from international destinations are down 17% according to data analysts at Hopper.
British Airways added San Jose nonstops using a 787 Dreamliner last year- and the deals are great!. (Image: Mineta San Jose Airport)
To us, that lack of demand from overseas is translating into startlingly low fares between to US and Europe this winter and spring. Ultra-low-cost carriers are leading the way with ultra-low fares (as low as $250 round trip + fees). But it’s not just the low-fare airlines that lowering prices– we’ve seen the major airlines jump into the low-fare fray with round trips from the West Coast to Europe in the $400 range. Advance bookings for peak summer season are still in the $700 roundtrip range, which is a remarkably good deal.
With British Airways adding new nonstops to London from San Jose and Oakland this year, in addition to its two dailies at SFO, there is a LOT of new capacity in this market leading to unprecedented low fares. And if Europeans are not all that interested in coming to the US, I expect we’ll see good fares all year long as demand flattens.
So, bargain hunters rejoice while you can! We’ll see how long this party lasts.
Have you noticed that international travel is getting a lot cheaper? What’s the best deal you’ve seen so far? Please leave your comments below.
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Don Nadeau says
March 5, 2017 at 5:12 pmThe hubs that have vigorous low cost competition, which impacts prices of all airlines serving them. Although, less so now that SWA, etc. serve them, hubs like ATL and MSP used to have some of the highest prices other than isolated airports like Elko, NV.
Chris McGinnis says
March 3, 2017 at 8:03 amYes, it’s usually the big hubs that get all the really good deals. However, I thought the Reno to SFO market would be increasingly competitive… I’ll keep an eye on it!
Chris McGinnis says
March 3, 2017 at 8:00 amWe appreciate your comments but please try to focus on what this post is about– great deals for Americans due to decreasing demand from overseas. Have you noticed any? What’s the best deal you’ve snagged this year?
robdubluu says
March 2, 2017 at 9:26 pmThis is the biggest load of fake news I have ever heard of.
But more to the point, President Trump must be responsible for the bed-bug crisis in NYC, and the crime, it’s his fault. What about all the rude, loud, obnoxious, unwelcoming Liberals, people, that must be his fault too. President Trumps fault?
Shame on you Travel Skills, thank god I don’t pay for your newsletter to read this garbage. Haven’t you heard about the €€€€ being at record lows.
What about Brexit, the Pommies have slowed down because the ££££ also at record lows against the US$$$$$.
Other International travelers are realising what a rip-off New York is so are going elsewhere. It’s so damn expensive. Like Europeans, they get more bang for their buck elsewhere. I guess this is President Trumps fault too, is it?
What about the quagmire that is LAG, EWR and JFK. Worst airports in America. That deters people from coming you fools. It’s not President Trumps fault. The taxes on tourists burdened by the city, that De Blasio chap needs to stop bloating the public service. Look at how many bureaucrats he has hired since he took office. I guess this is President Trumps fault too, is it?
Oh boo hoo hoo, my plane was late… President Trumps fault….. my electricity has gone up, President Trumps fault….. murder rate in Chicago out of control, President Trumps fault….. is there nothing you Liberal media won’t blame the President for? Anything?
So piss off with your fake news. It gets me so damn angry. The reporter should get off his/her ass and do some research instead of trolling the net like a lazy sod, and believing the MSM bias and rubbish and do your own research.
Or didn’t they teach you that at school.
jeff says
March 1, 2017 at 6:30 pmI call malarkey! How about Brexit and flat U.K. Economy. The exchange rate probably. We will see how long that lasts.
jeff says
March 1, 2017 at 6:28 pmBINGO
RichLL says
March 1, 2017 at 5:24 pmYeah, I’m struggling to believe that the Brits are that bothered about Trump, at least when it comes to their vacation plans. If you want to hit the Florida beaches, the Big Apple, the slots at Vegas or the West Coast, who cares who the President is?
More likely it is the post-Brexit fall in sterling. These fares may have gone down for us, but they haven’t gone down for them.
as says
March 1, 2017 at 2:35 pm“Trump Slump” LOL….as the stock market goes through the roof!
dan luttrell says
March 1, 2017 at 12:06 pmSeems hard to believe. One of the main reasons UK tourist are down is the falling Pound vs. US Dollar. I’d travel to the UK less if all of a sudden it cost me 30% more.
shrike2112 says
March 1, 2017 at 9:49 amPrices certainly have fallen from the big hubs in California (LAX/SFO), but fares requiring connection through those airports haven’t fallen much. My home airport is RNO. The price difference is worthwhile for me to drive to SFO and park the vehicle instead.