Letter to the Editor : Russia President Vladimir Putin’s Ukraine invasion has shaken the world economy. How will the war impact the travel industry? 

Dear Editor

“Our hearts go out to everyone affected by the Russia/Ukraine conflict,” says Tim Hentschel, Co-Founder & CEO, HotelPlanner. “Most governments across Europe have already responded strongly by closing its airspace to Russian airlines and flights. And there’s no doubt that civilian travel & tourism in Russia and Ukraine has basically stopped, with the exception of foreign press and international aid organizations needing hotels and food, or people trying to leave the region. Fortunately, we don’t anticipate the Russia/Ukraine conflict to impact the strong travel recovery we’re seeing across the U.S. and greater Europe. About 90% of Americans still plan to travel in the next six months, which is a very strong market indicator that we’ll surpass pre-pandemic travel spending levels in the coming months. However, given record high inflation, ongoing supply chain and labor challenges, and the new geo-political uncertainty overseas, we encourage everyone to book all their 2022 travel plans and accommodations now, rather than waiting. Booking lower rates now acts as a hedge against future inflation and will save consumers money.”Hentschel oversees the world’s largest group travel site. He has worked in the hospitality business for decades, and he’s constantly speaking to his industry leader peers and dissecting proprietary booking data.
He’s available to discuss:

• The possibility of Ukraine immediately impacting travel. Travelers rarely visit Russia or Ukraine (especially in the winter). Additionally, most of the market hasn’t declined since the war began. In the short term, it’s unlikely that the war will directly harm the hospitality sector. 

• The long-term threat to travel. Historically, wars have motivated travelers to stay home. The US entered a recession following the Afghanistan War, then flight and hotel bookings dropped. The Iraq War led to a similar slowdown of travelers hitting the sea and air. According to ABC News, the bombing of Baghdad led to a 20 percent drop off in US air travel bookings. Long story, short: When travelers are anxious about what could happen tomorrow, they stay home.

• The risks of sanctions. If President Joe Biden or European Union leaders issue sanctions, the US could see gas and energy prices rise. Higher costs will lower Americans’ discretionary income that they spend on travel.

Hentschel is available to discuss this and more. Email gabrielle@amwpr.com to speak to Hentschel at your convenience.