The recent announcement of sweeping tariffs has left many business leaders and travel managers wondering how these economic policy shifts might impact their travel programs. With proposed tariffs including a baseline 10% for trading partners, 25% on imported cars, and reciprocal tariffs potentially reaching 50%, organizations are rightfully assessing potential implications for their business travel initiatives.
At Lawal Travel Services, we believe in transforming challenges into strategic opportunities. Here's our perspective on how forward-thinking organizations and business leaders can navigate this evolving landscape while maintaining productive business travel programs.
While tariffs directly affect imported goods rather than travel services themselves, the secondary effects are already becoming visible across the business travel ecosystem:
For hotels, the impact centers on potential increases in construction costs (due to tariffs on materials like steel) and rising expenses for furniture, fixtures, and equipment. These cost pressures could eventually translate into higher room rates, affecting travel budgets for organizations of all sizes.
However, beneath these immediate concerns lie strategic considerations that savvy business leaders are already turning to their advantage.
Organizations managing multiple travelers need to balance policy compliance with strategic flexibility. Consider these approaches:
Many organizations are discovering that a right-sized travel management solution provides the strategic oversight needed during economic policy shifts without creating unnecessary complexity.
Entrepreneurs and independent consultants face different considerations in this evolving landscape. When competitors pull back from in-person client engagement, the relationship value of showing up increases exponentially. Consider:
For independent business owners, this moment calls for precision rather than volume—identifying opportunities where face-to-face meetings will create disproportionate impact on business development and client retention.
Current economic data reveals important patterns for business travel decision-makers. According to Skift Research, the top 9% of households account for 30% of U.S. travel spending, while the top 15% account for 40%. This concentration means that stock market volatility could disproportionately impact premium travel spending.
Recent spending data reflects this concern:
Organizations that can quantify the business impact of their travel investments will be best positioned to make strategic decisions rather than reactive cuts. This environment creates natural pressure to demonstrate clear ROI on travel—a principle we've long advocated as central to strategic travel management.
Economic policy shifts rarely affect all businesses equally. Black-owned businesses and diverse entrepreneurs with strong international connections may need to be especially strategic in maintaining global relationships while navigating changing trade dynamics.
Recent shifts in DEI-related policies and corporate program funding present additional considerations. As some organizations recalibrate their supplier diversity initiatives, diverse business owners may need to reallocate their travel budgets toward building relationships with new potential clients and partners.
At the same time, policies that incentivize domestic sourcing could create new opportunities for diverse suppliers within restructured supply chains, potentially increasing domestic business travel to new client locations. Forward-thinking diverse business owners are already identifying which industry sectors and regions may present growth opportunities.
In times of economic uncertainty and international tension, the value of in-person meetings paradoxically increases. When trade relationships become complex, direct negotiations and personal connections create competitive advantages that digital interactions cannot replicate.
Organizations making strategic travel decisions should consider:
While markets may fluctuate and policies shift, business travel remains a fundamental driver of organizational success. The most successful leaders recognize that travel is not merely a cost center but a strategic investment in relationships, opportunities, and competitive advantage.
As Virgin Atlantic reports slowing U.S. demand and carriers reassess their routes, organizations have an opportunity to be thoughtful about how, when, and where they deploy their travel resources. This may require greater attention to timing, destination selection, and trip consolidation, but the fundamental value proposition of strategic business travel remains strong.
At Lawal Travel Services, we maintain our confidence in the business value of strategic travel. Organizations that view travel through a strategic lens rather than simply as a logistics exercise will continue to create competitive advantages regardless of broader economic shifts.
The business landscape has always required adaptation and forward thinking. By focusing on optimization rather than wholesale reduction, organizations can navigate changing conditions while continuing to build the relationships that drive business success.
Looking to optimize your organization's travel strategy in this changing landscape? Contact us to discuss how our travel management solutions can support your business objectives while navigating economic shifts.
This perspective was informed by reporting from Skift's article "Trump's New Tariffs and the Potential Hit to Travel" (April 2, 2025).