Federal government cuts and layoffs are generating significant apprehension among travel advisors, a Travel Weekly survey found, with widespread concern about potentially negative impacts on travel agencies and the broader travel industry.
Asked which factors they feel will most impact travel, economic uncertainty due to government policies was the top concern, cited by 65.9% of respondents. That was followed by domestic or international travel bans (51.7%) and workforce reductions and shutdowns of government facilities/services that impact tourism, each cited by 50% of respondents.
When asked how concerned they were about the long-term impact of federal government changes on their travel business, 51.7% of respondents said they were very concerned, 19.7% said they were moderately concerned and 8.4% said they were slightly concerned. Just over one-fifth, 20.2%, said they were not concerned.
Responses were similar when advisors were asked how concerned they were about the long-term impact of federal government changes on the travel industry as a whole: 54.9% said they were very concerned, 17.3% were moderately concerned, 9.5% were slightly concerned and 18.2% were not concerned.
Advisors were also given the option to write in other concerns they have about potential impacts from federal changes.
Some advisors shared positive views of changes at the federal level, citing potential benefits like reduced government spending and a better economy down the road after some negative short-term effects in the next six to 12 months. Others had a more negative outlook, citing the Trump administration's newly instated tariffs.
Travel Weekly's survey sought to understand the impact of the Trump administration's campaign to streamline the federal government and reduce spending via the Department of Government Efficiency (DOGE). It was fielded online from March 11 to 20 and garnered more than 400 travel advisor responses. Most respondents reported either no noticeable change or only slight decreases in bookings or inquiries this year.
The most impact cited was from 18.5% of leisure-focused advisors who have fielded cancellations from clients who identified themselves as current or former federal employees or government contractors.
"Having worked in Washington, D.C., and now a suburb of the city, 70% of my client list consists of government employees," one respondent wrote. "When they are affected, my business is directly affected."
Another advisor reported cancellations for international leisure and group travel totaling $500,000 as of this month.
"That will surely affect my bottom line in 2025," the advisor wrote. "I've heard from colleagues that they have also had cancellations and are worried about what's to come."
One said they are "just seeing a slight decline over the same period last year, which I feel is primarily a generalized feeling of uneasiness/uncertainty," while another noted a sales decrease since the beginning of the year with fewer requests for travel, saying, "We predominantly sell international travel, and people are definitely concerned."
That is being fueled by concerns about anti-American sentiment abroad, which 59.4% of respondents said is a concern of their clients. And 21.7% reported cancellations because of it.
Still, others reported that business has been booming.
"Our business has dramatically increased this year due to confidence that the country is back on the right track," one advisor said.
Survey comments indicated that many advisors felt strongly about the changes, whether they were very positive or very negative.
"My concerns run the gamut from decrease/cessation of government travel to the Trump government failing to pay for previously approved and provided services," said one respondent. "Regrettably, I strongly believe we are only now at the beginning of what I would best describe as a national nightmare."
One advisor reported bookings were down 50% compared to the same period last year, while another has seen a "huge slowdown in bookings since the election and even more so after the new administration took office." Several mentioned clients were hesitant to book for financial reasons or on the advice of financial planners.
At least one respondent felt impact from both ends of the spectrum: Some federal employees or contractors canceled trips, while others want to travel anywhere "just to escape." It is, the advisor wrote, "A whole lot of work with a whole lot of uncertainty."
On the positive side, some advisors were adamant that they had seen no negative business impacts as a result of changes at the federal level, citing zero cancellations and an increase in business.
"Our government workforce is 3% of the total projected workforce in the USA," one advisor wrote. "Things will shake out and everyone needs to stop panicking."
Another advisor said they are a former federal employee with a number of federal employee clients, and none have canceled or intend to.
"Streamlining the federal government bloat is long overdue," an advisor wrote. "We haven't seen a drop-off in business, but if we do we are prepared. Sadly it's needed to help build a healthier economy long term."