European Travelers Shun US as Long-Haul Destinations Gain Popularity
Demand for trips to the US from European travelers is dwindling, with Tui, Europe's largest travel operator, reporting a significant decline in bookings. The shift comes as Europeans increasingly turn their attention to destinations like Emirates and Asia.
Tui's CEO, Sebastian Ebel, attributes the decline to concerns surrounding Donald Trump's immigration policies and the current climate at US borders. "We see significantly lower demand for travel into the US," he stated. Instead, European travelers are opting for long-haul journeys to more welcoming regions.
The trend is evident in a report by the European Travel Commission, which found that 42% of long-haul travelers were considering trips to Europe this year, down from 45% last year. Meanwhile, interest in traveling to the US decreased, with only 34% planning to visit Europe.
Travel advisories issued by several countries have also contributed to the decline. Detention and questioning of tourists at US borders, as well as reports of people being wrongly deported, have created a hostile environment for visitors.
In contrast, destinations like Emirates and Asia are experiencing a surge in demand. Tui is capitalizing on this trend, with Ebel stating that European travelers are showing renewed interest in the Caribbean due to capacity constraints.
Tui's financial performance has seen a significant improvement, with revenue rising 1% to โฌ4.9 billion (ยฃ4.3 billion) and operating profit increasing by 7.5%. The company's cruise business was instrumental in this success, with profits more than doubling.
Analysts attribute the company's turnaround to its ability to adapt to changing consumer preferences. "Consumers continue to prioritize travel, which has seen Tui's occupancy rates rise despite its fleet expansion," said Aarin Chiekrie of Hargreaves Lansdown.
While Tui's shares rose 0.4% in early trading, the stock has still seen a significant gain over the past year, up around 10%. The company's focus on long-haul destinations and its ability to navigate the complexities of global travel are likely key factors behind this success.
Demand for trips to the US from European travelers is dwindling, with Tui, Europe's largest travel operator, reporting a significant decline in bookings. The shift comes as Europeans increasingly turn their attention to destinations like Emirates and Asia.
Tui's CEO, Sebastian Ebel, attributes the decline to concerns surrounding Donald Trump's immigration policies and the current climate at US borders. "We see significantly lower demand for travel into the US," he stated. Instead, European travelers are opting for long-haul journeys to more welcoming regions.
The trend is evident in a report by the European Travel Commission, which found that 42% of long-haul travelers were considering trips to Europe this year, down from 45% last year. Meanwhile, interest in traveling to the US decreased, with only 34% planning to visit Europe.
Travel advisories issued by several countries have also contributed to the decline. Detention and questioning of tourists at US borders, as well as reports of people being wrongly deported, have created a hostile environment for visitors.
In contrast, destinations like Emirates and Asia are experiencing a surge in demand. Tui is capitalizing on this trend, with Ebel stating that European travelers are showing renewed interest in the Caribbean due to capacity constraints.
Tui's financial performance has seen a significant improvement, with revenue rising 1% to โฌ4.9 billion (ยฃ4.3 billion) and operating profit increasing by 7.5%. The company's cruise business was instrumental in this success, with profits more than doubling.
Analysts attribute the company's turnaround to its ability to adapt to changing consumer preferences. "Consumers continue to prioritize travel, which has seen Tui's occupancy rates rise despite its fleet expansion," said Aarin Chiekrie of Hargreaves Lansdown.
While Tui's shares rose 0.4% in early trading, the stock has still seen a significant gain over the past year, up around 10%. The company's focus on long-haul destinations and its ability to navigate the complexities of global travel are likely key factors behind this success.