US airlines and hotels are slashing their prices to combat the so-called ‘Trump slump’ in incoming American tourism since the president was elected, says the boss of Expedia.
Chief executive Dara Khosrowshahi said the moves were in response to President Trump’s travel ban, as well as the strong US dollar.
He told the Financial Times: “I think that because of some of the perceived positions coming out of the current administration, the US as a destination is potentially looking less attractive as a product.
“One of two things is going to happen. Either the US has to go on sale in order to keep volumes up, or volumes are going to come down. When we look at our business, the leading indicator is pricing. Pricing has come down.”
Khosrowshahi said the full picture will be revealed in Expedia’s upcoming quarterly results next month.
Iranian-born Khosrowshahi also told the FT that Trump’s travel ban – over which the president’s administration is currently appealing court rulings against it – caused him “personal confusion” when it was first announced.
“After the order was announced, there was panic in my family and it affected a bunch of folks in my family,” he said. “There was a lot of confusion. But that’s personal. I don’t want to let the personal come into [running] the company.”