Everyone's comparing Brexit to this presidential election. Personally, I think they trumped us...
Donald trump has been elected as the next President of the United States of America in what people are calling America’s Brexit. Despite many controversies, the Republican has won what has thought to be the most unlikely victory in modern US history.
Here’s the final results, image curtesy of the Telegraph.
Here’s what Twitter is saying:
President Trump, a terrifying day for the world and for everyone who values democracy and freedom
Orange is the new black
Ctrl + Alt + Delete
It was told 15 years ago #trumpwins
9/11 and 11/9...the biggest disasters in America's history !! #trumpwins 😧🇺🇸
What does this mean for travel & vacation rentals?
Due to the nature of Trumps anti-establishment campaign, investors are uncertain of the future and when there’s political uncertainty stocks around the world fall - and that’s exactly what’s happening. America was down by 5%, Japan is down by 5% and Europe is predicted to be down by 4%.
Bad for buying: Increased interest rates
The volatility of the market is likely to cause the US Federal Reserve to increase interest rates in December - which is bad news for anyone looking to buy a vacation rental or existing borrowers.
Trumps political agenda might be bad for travel
What’s more important is Trumps political agenda and what this means for the travel industry.
Most people think Trump is bad for travel
Trump runs a successful leisure and hospitality business are the world, which includes 15 hotels, spas, rentals & golf courses - however, many people think he will have a negative effect on the travel industry:
Only 7% of travel industry thinks Trump will be good for business (reference)
Mexico fears reduced visitors
The U.S is a key market for Mexico’s tourism industry, with 59% arriving by plane. Trump's pledging to either revise or scrap the trade deal with Mexico, which could seriously impact traveler numbers - especially if he’s actually serous about this wall!
Muslim anxiety with less US visitors
Some people are also concerned about tourism from Muslims decreasing after Trump vowed to ban Muslims from entering the country. Although this is incredibly unlikely, Trumps hostile attitude may still dramatically affect visitor numbers.
Weakening Dollar & Increased Domestic Travel
Similar to Brexit, the dollar is very likely to weaken - especially considering Trumps proven track record to reduce stocks. This is bad news for international travel (and vacation rentals elsewhere) but good news for domestic travel (US based vacation rentals) as tourists are likely to spend more money direct.
Bad news for Trump’s hotels
A new survey from Travel Weekly showed that 61 percent of travel agents are recommending Trump properties less.
The majority of travel agents are women and travel decisions are made overwhelmingly by women
It’s not all bad
A report from Travelzoo showed that 61 percent of respondents travel habits will stay the same and 16 percent of people say they’ll travel even more. This is great news for vacation rentals in America and around the world.
What do you think?
There will be far reaching implications of Trump’s win over Hilary. What are your thoughts on the future of vacation rentals? How will this affect your business?