The global travel and events industry is facing a new wave of external pressures, many of which stem from mounting geopolitical uncertainty. According to recent projections from Skift Research, travel industry growth is now expected to be just 2–5% in 2025, down significantly from earlier estimates of 6–9% growth.
This adjustment reflects a shifting landscape in which policy changes, public sentiment and economic volatility are increasingly dictating the pace and shape of business travel and events.
At the center of this shift lies a widening pattern: political decisions are creating deeper ripple effects across the corporate meetings and events (MICE) sector, influencing everything from budgets and attendance to planning timelines and location strategies.
The Policies Behind the Pressure
Several key factors are having an outsized impact on MICE budgets and travel-related decision-making:
- Cuts to Federal Funding: Government-organized meetings are among the first to be canceled when budgets tighten, but what’s less visible is the secondary effect. Federal employees, once active attendees at industry events, are no longer traveling due to job losses or budget constraints. Their absence has prompted some event organizers to cancel entire programs, especially when federal attendees once made up a critical mass.
- DEI Rollbacks: The growing movement to dismantle DEI-focused (Diversity, Equity & Inclusion) initiatives at the federal level is also affecting event programming. Government agencies (and even private companies with federal contracts) are canceling training sessions and meetings centered on DEI practices, reducing opportunities for shared learning and cultural advancement.
- Passport and Visa Anxiety: Heightened scrutiny by U.S. Customs & Border Protection has introduced new fears among non-citizen residents. Concerns about whether they will be allowed to re-enter the country have led to hesitation around international travel, particularly for U.S.-based employees who hold visas. Concurrently, inbound international business travel to the U.S. is down by 10%, as countries like Canada, France and the UK issue advisories against U.S. travel.
- Shifting Sentiment: Increasingly, members of the global business community are expressing a reluctance to support the U.S. economy by attending conferences or vacations in the U.S. If international organizations begin moving their events abroad and find those locations more favorable, the long-term implications for U.S.-based meetings could be significant.
- Tariff Uncertainty: The cost of hosting a meeting or event has soared, up an average of 38% since 2019, with food and beverage costs seeing the steepest increase at 50%. Perhaps more destabilizing than the costs themselves is the uncertainty surrounding tariffs. A temporary 90-day pause on tariffs has prolonged indecision, as planners wait for more clarity before finalizing their events.
Together, these challenges underscore the need for agile strategies and strong partnerships within the business events sector.
How Atlas Travel’s MICE Team Is Responding
At Atlas Travel, we recognize the critical need to adapt in the face of these evolving dynamics. While budget pressures and logistical challenges are reshaping how events are planned, the importance of bringing people together remains unchanged.
Even as some organizations scale back, we continue to see that in-person meetings often serve as key inflection points for collaboration, alignment and momentum. These face-to-face experiences provide clarity and connection in ways that virtual formats often cannot.
In response, Atlas Travel’s Meetings & Incentives team is embracing today’s geopolitical challenges as an opportunity to strengthen event strategies, ensuring our clients’ meetings continue to foster collaboration and success. Here’s how we’re supporting our partners:
- Encouraging Early Planning: We’re urging clients to begin the planning process earlier, especially for international meetings. This not only helps mitigate visa-related delays, but also provides greater flexibility with sourcing and managing hotel inventory, which can lead to cost savings.
- Strategic Procurement Conversations: We're partnering with procurement teams who are confronting unanticipated cost increases and working collaboratively to realign expectations, adjust program formats and identify areas for efficiency.
- Enhanced Pre-Trip Communications: Acknowledging travel concerns, we’re placing a stronger emphasis on traveler communications and pre-event preparation, equipping attendees with the information and reassurance they need to travel confidently.
- Championing Inclusion: While some public-sector entities may be distancing themselves from DEI commitments, Atlas Travel is reaffirming our stance. We’re working closely with our partners to foster welcoming, inclusive experiences that reflect our shared values, regardless of shifting political winds.
While today’s landscape presents clear obstacles, it also highlights the enduring value of bringing people together. Thoughtful planning, resilient strategies and trusted partnerships will continue to drive organizations forward, even in times of uncertainty.
If your organization is looking to better understand or navigate the impact of geopolitical trends on your meetings and events strategy, our experienced team is here to help.
Let’s talk. Contact Jennifer Murphy, Vice President of Meetings, Incentives, Conferences & Events at jennifer.murphy@atlastravel.com to discuss strategy for your next event.
