US Tourism: Why Are We Falling Behind?

Glenn Fogel, the CEO of Booking Holdings, is raising a red flag about international tourism to the United States. He’s saying we need to make it easier for folks from other countries to visit. Why? Because we’re just not seeing the numbers we used to, not like before the whole pandemic thing. This isn’t just about fewer vacation photos; it’s a big deal for our economy and for sharing cultures.

The Big Bucks of International Travel

Let’s face it, travel and tourism are huge for the U.S. economy. Before COVID-19 hit, this industry was bringing in a whopping $1.9 trillion and supporting about 9.5 million jobs. That’s like one out of every twenty jobs in the country! Think about hotels, restaurants, shops, theme parks, airlines – they all depend on travelers. International tourism is actually our biggest export of services, so when fewer people visit, it really hurts our trade balance and our wallets.

What’s Keeping Tourists Away?

Even though travel is bouncing back globally, the U.S. is still lagging behind where we were in 2019. Fogel is worried about this, especially for the hotel industry and its workers. So, what’s the deal? Well, it’s not just one thing. While a strong dollar usually makes traveling here more expensive, the dollar’s actually been a bit weaker lately, which should make it cheaper. This means there are probably more complex reasons, maybe even political stuff or how people *feel* about traveling here. For example, Canadians, who used to flock here, are increasingly choosing Mexico. And Europeans? They’re leaning more towards Asia or staying within Europe instead of coming to the States.

Entry Hassles Are a Major Turn-Off

One of the biggest headaches Fogel points out is the whole passport control and immigration process. Long waits at airports like JFK can really sour the experience, and travelers talk. This kind of hassle can seriously discourage people from even considering a trip here.

U.S. Travelers Are Changing Too

It’s not just about international visitors. Fogel also sees a growing split in how Americans are traveling. Folks with lower incomes are being more careful with their money, cutting trips short and booking closer to their travel dates. This shows they’re really feeling the pinch of economic uncertainty.

Who’s Feeling the Squeeze?

This economic caution is showing up in different parts of the travel industry. Fogel mentions that two- and three-star hotels are having a tougher time than the fancy five-star places. It’s similar with airlines; the cheap seats in the back might be harder to fill than the comfy seats up front. It seems like travel spending is becoming more of an either/or situation.

Booking.com’s Role in This Shifting Scene

Online travel platforms like Booking.com are super important, especially for smaller, independent hotels. Before the pandemic, nearly half of the stays booked through these sites were at independent places. In the U.S. alone, Booking.com helps out 185,000 small and medium-sized hospitality businesses. These platforms give them a much-needed boost in visibility and access to customers, particularly in places that aren’t major tourist hotspots.

Reaching Rural and Lesser-Known Spots

These online platforms are also helping to bring tourism to areas outside the big cities. Between 2012 and 2021, the number of bookings in rural areas through online platforms jumped from under 10% to 16%. This means more travel dollars are spreading out across the country.

Betting Big on AI

Booking Holdings is investing heavily in artificial intelligence, especially generative AI. They’re using it to make booking easier and to help people plan “connected trips” – that’s like booking your flight and hotel all together. Because they’re such a big company, they can really explore different AI approaches and work with tech giants like OpenAI and Microsoft.

Tackling Overtourism and Promoting Greener Travel

Besides making it easier to get here, Booking.com is also thinking about overtourism. Fogel has suggested ideas like charging more or using lotteries to manage crowds in super popular spots. It’s a response to residents in cities like Venice and Barcelona who feel like there are just too many tourists.

Lotteries: A Fairer Way to Visit?

Lottery systems aren’t a totally new idea. Places like U.S. National Parks and even some big music festivals use them. The thinking is that it might attract people who are genuinely interested in a place and help spread out the visitor flow. But, there’s a worry that this could make travel too expensive for some.

Travelers Are Waking Up to Their Impact

Good news: people are becoming more aware of how their travel affects local communities and the environment. For the first time, over half of travelers surveyed said they’re conscious of these impacts. Most of them still want to travel more sustainably. They’re also asking for better local infrastructure, like public transport and waste management, and more efforts to protect nature.

The U.S. Travel Market: A Slow Lane?

Even with all its global success, the U.S. is actually Booking.com’s slowest-growing market. While things are looking up a bit and they’re gaining market share here, the overall performance just isn’t matching other parts of the world. This really highlights the need to fix the issues holding back international visitors.

Time for Policy Changes

What Booking.com’s CEO is saying is pretty clear: we need policy changes to make the U.S. a more attractive and accessible place for international travelers. If we can simplify entry, improve the overall experience, and maybe fix any policies that seem to put people off, we could see a big jump in inbound tourism. This would be great for the travel industry and for the broader economy, creating jobs and boosting our GDP.

Making the U.S. a More Welcoming Destination

The message from Booking.com’s top executive is a loud and clear signal that the U.S. tourism sector has some serious work to do to attract international visitors. By focusing on making things simpler, tackling logistical problems, and rethinking policies that might be deterring travelers, the U.S. can get back to being a top global destination. The economic benefits are obvious, and we need to act now to make sure the United States takes full advantage of its amazing tourism potential.