Trump’s Tariffs, Delta's Premium Issues and Strawberry's New Brands
Skift Take
Key Points
- The potential trade war between the U.S. and Canada threatens to impact tourism, with possible economic consequences if Canadian travel to the U.S. decreases.
- Delta Air Lines is performing well in the U.S. premium traveler market but needs to improve its global premium service to compete with international airlines.
- Strawberry, a major Nordic hotel operator, is launching two new brands targeting business travelers and sustainable roadside accommodations.
Summary
The article discusses the potential impact of a U.S.-Canada trade war on tourism, highlighting the economic risks of reduced Canadian travel to the U.S. It also examines Delta Air Lines' efforts to capture the U.S. premium traveler market while needing to enhance its global premium service. Additionally, the Nordic hotel operator Strawberry is introducing two new brands aimed at business travelers and sustainable lodging, following a revised agreement with Choice Hotels.
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The potential trade war between the U.S. and Canada is on hold, but the threat of tariffs remains, and Senior Hospitality Editor Sean O’Neill examines how it could impact tourism between the two countries.
A trade war could affect Canadians’ travel plans to the U.S. Some economists believe a lengthy trade war could weaken the value of the Canadian dollar, making travel to the U.S. more expensive for Canadians.
Canada was the top source of international visitors to the U.S. in 2024.
The U.S. Travel Association said Monday that a 10% decrease in Canadian travel to the U.S. could result in $2.1 billion in lost spending.
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Next, Columnist Colin Nagy believes Delta Air Lines is doing a good job winning over premium travelers in the U.S. However, he argues the company needs to do more to compete with premium airlines around the world.
Nagy notes that premium tickets are growing faster than economy and are poised to overtake regular cabin revenue by 2027. However, he writes that Delta is behind global rivals in the service it offers premium travelers.
Nagy adds that Delta has a real shot at competing with major overseas carriers, but only if it corrects inconsistencies in the premium long-haul experience.
Finally, Strawberry, the Nordic region’s largest private hotel operator, is launching two brands, its first new ones in three decades, reports Senior Hospitality Editor Sean O’Neill.
Strawberry, which runs around 200 hotels in the Nordic nations, rebranded over 50 hotels on Monday under its new Home brand. Home will target business travelers spending multiple nights a week on the road. Strawberry also said it’s developing a sustainable roadside motel chain called Stopover, which it expects to open by September.
The announcement of the new brands followed Strawberry’s renegotiation of its franchise agreement with Choice Hotels.
Photo Credit: View of Niagara Falls in a sunny day. The location is the site of significant cross-border traffic between the U.S. and Canada. Adobe Stock / Javen
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