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30 May 2025 - 02:59 pm

The American ‘revenge travel’ surge is over. Fear and uncertainty are big factors
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Francisco Ayala and his wife have canceled the cruise they planned to take to see the Northern Lights this year. The reasons are complicated.

Ayala is a natural-born US citizen, and his wife is a naturalized citizen. But given reports of people — even with legal status — being detained and questioned at US borders, Ayala said taking a trip out of the country for fun doesn’t seem worth the potential risk.

Ayala also sees another problem: the economy. “The writing is on the wall … The moment I saw the market volatility, I’m like, ‘Yep, this is not going to be good.’”

Travel advisers are seeing the impact of that uncertainty. More than 80% of the 460 advisers surveyed recently by TravelAge West were “very” or “somewhat” concerned about the impact of a possible economic downturn on their business, and more than half were “very” concerned about the impact of government policies.

Their clients’ top concern was economic uncertainty, followed by worries about the treatment of Americans abroad, safety and security, fears of cost increases due to tariffs, immigration and border policies, and travel restrictions.

“You can’t just take one angle and say, ‘Oh, the economy is having an issue. So let’s find something less expensive,’” said Beci Mahnken, CEO of MEI-Travel. Other clients say, “‘I don’t want to travel to the United States,’ or ‘I don’t want to travel outside the United States.’ … It’s like a rock tunnel, going and going.”

One shaft of light at the end of that tunnel could be savings on last-minute summer trips as travelers increasingly take a wait-and-see stance with their plans.

Hitting a ‘brick wall’
Mahnken first saw signs of trouble in early April, when US stocks plunged over fears of a chaotic trade war.

Mahnken and her travel agency staff started getting phone calls from clients, calling to cancel vacations they had booked or seeking refundable trips. She said they were fearful because their 401(k)s and other investments had taken a dive. That uncertainty, she says, made them pause on discretionary spending like a summer trip.
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Until that moment, Mahnken said, the frenzy of heightened “revenge travel” activity that started after pandemic restrictions lifted had not slowed over the course of four years.

“We were still on this incredible high,” Mahnken said. “And then … it almost hit a brick wall.”
Flight analytics firm Cirium pulled flight booking data from online travel agencies from the end of January through early May, when people typically book summer trips. That data, which Cirium shared with CNN, indicates that bookings for travel in June, July and August are down nearly 10% when looking at flights from major US airports to favorite European destinations, compared to the same period last year.

Flights booked in the opposite direction from Europe to the US are down 12% in the same period. That substantial drop is unusual, according to Jeremy Bowen, CEO of Cirium.

“We don’t often see it as wholesale as this and over such a short period of time. Really, that Q1 booking is really quite substantially lower since the beginning of the year,” said Bowen.

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30 May 2025 - 04:52 am

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29 May 2025 - 10:02 pm

President Donald Trump speaks to reporters at the White House in Washington, DC, on January 30. Chip Somodevilla/Getty Images
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Just about everyone thought it was a bluff. Top analysts from the biggest banks on Wall Street said it was highly unlikely. Stocks were trading like it wouldn’t happen. Some companies built contingency plans, but they weren’t exactly rushing to make changes.
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But the tariffs are coming — in full force. President Donald Trump announced Saturday that a massive 25% tariff on all goods from Mexico and most imports from Canada will go into effect Tuesday. An additional 10% tariff on Chinese goods will be enacted the same day.

Trump in a message posted on Truth Social Sunday said, “We don’t need anything they have. We have unlimited Energy, should make our own Cars, and have more Lumber than we can ever use.” But America’s supply chains are reliant on its trading partners, and even for goods that could be grown or produced exclusively in the United States, the complex web of interconnected global trade cannot easily be unwound.
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So the additional costs on foreign-made goods will be paid by American importers, who typically pass those costs onto retailers, who pass them onto inflation-weary consumers. That means prices will rise — although, for most items, not immediately. Businesses’ profits will be squeezed as they bear the cost burden of the tariffs or pay to adjust their carefully constructed and at times inflexible supply chains.

That’s why stocks on Monday were set to tumble. Dow futures were more than 600 points, or 1.3% lower. S&P 500 futures sank 1.5%. and Nasdaq futures were 1.7% lower.

Globally, stocks fell, too. Major European indexes were down across the board, and Asian markets closed sharply lower. Bitcoin and other cryptos tumbled, brought down by growing fears of a recession. The US dollar rose sharply.

Energy costs surged: US crude oil rose 2.3% and natural gas spiked 7%. Despite a lower 10% tariff on Canadian electricity, natural gas and oil exports to the United States, the energy industry said it will not be able to quickly or easily find alternate sources. Diesel and jet fuel costs in particular will rise, according to Angie Gildea, the US energy sector lead at accounting firm KPMG, adding costs to all shipped goods and air travel.
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“Any infrastructure upgrades would not happen overnight,” Gildea told CNN. “Tariffs on Canadian oil would increase costs for US refiners, leading to price hikes for consumers.”

Auto industry stock futures were particularly hard-hit, because virtually all American-made cars are manufactured at least in some part in Mexico or Canada — what was a free-trade zone. GM (GM) fell more than 6%, Jeep and Chrysler maker Stellantis (STLA) was down 5% and Ford (F) fell more than 3%.

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29 May 2025 - 04:42 pm

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U.S. charges sibling leaders of ruthless Mexico cartel, offers $8 million reward for information leading to their capture
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Johnny Hurtado Olascoaga and Jose Alfredo Hurtado Olascoaga, are accused of participating in a conspiracy to manufacture cocaine, heroin, methamphetamine and fentanyl and importing and distributing the drugs in the United States, authorities said during a news conference in Atlanta. The newly unsealed three-count indictment was returned by a grand jury in September.
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The two brothers are the leaders of La Nueva Familia Michoacana, a Mexican cartel that was formally designated by the U.S. government in February as a "foreign terrorist organization," authorities said.

"If you contribute to the death of Americans by peddling poison into our communities, we will work relentlessly to find you and bring you to justice," Attorney General Pam Bondi said in a statement.

The State Department is offering up to $5 million for information leading to the arrest and/or conviction of Johnny Hurtado Olascoaga and up to $3 million for information about Jose Alfredo Hurtado Olascoaga, who also goes by the name "The Strawberry." Both men are believed to be in Mexico, officials said.

Separately the U.S. Treasury announced new sanctions Wednesday against the two men and well as two other alleged leaders of the cartel, which the U.S. designates as a "foreign terrorist organization."

In addition to drug trafficking, the Familia Michoacana cartel has also engaged in extortions, kidnappings and murders, according to U.S. prosecutors.
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