Key Challenges that the Tourism Industry Faces Today 

As a result of the worldwide event which affected everyone in 2020, many travelers are still finding that it is hard to execute a successful trip. Airlines are still in a state of chaos. Accommodation prices are at historic highs in certain locations throughout the world. Industries are all trying to adapt the best way they can following the changing habits of consumers.

Due to the rise of poker online, it’s easier for some gamblers to stay at home than go to Las Vegas. These are big challenges that the tourism industry does not necessarily have a ready solution for. In this article, we take a look at what is happening, and what can be done about it. Read on to learn more about key challenges that the tourism industry faces today.

Key Challenges that the Tourism Industry Faces Today 


International travel and importation rates have recently been negatively impacted by what the European Union calls a “tourism tax.” While this tax isn’t incredibly high—usually just a few euros added onto your bill at the end of a stay—it can discourage people from making an already expensive overseas trip.

This is particularly true when it’s considered in the broader spectrum of travel-related issues, like….

Dicey Air Travel

The last few years have been truly wild for the air travel industry. In 2020, airlines couldn’t fill planes to save their lives. It didn’t matter how low they made the rates.

But as people slowly came around to the idea of air travel, the industry struggled to meet the increased demand. There were personal shortages. Flight delays. Booking issues. More delays. Price gouging. Did we mention lots and lots (and lots) of delays?

All of these issues add up. Between delays and high prices, many travelers would prefer to drive.

Changing Business Policy

While this article is primarily about tourism it is important to understand that changing business policies are also continuing to impact the hospitality industry. Many companies have decided to take their meetings online.

Not only did this save a fortune in travel expenses but now many companies decided it was better to keep their reduced travel budget. The result? Hotels, airlines, and car rental agencies are left without a substantial segment of their typical customer base.


It’s important to understand that even though the tourism industry is experiencing challenges, most segments of this sector are experiencing a post-COVID rise. In fact, that is part of the problem.  When the pandemic hit, airlines, hotels, and car rental companies went into emergency mode.

Many car rental businesses sold up to 30% of their fleet just to stay open. Businesses had to lay off thousands of workers.

At the same time, the general attitude toward service work began to shift. During the height of the pandemic, it was very difficult to staff people in minimum wage jobs that would expose them to risk of infection.

Even as the risk subsided, however, many people opted not to return to their old jobs. Today, it’s an ongoing challenge for businesses to staff hourly workers. And if you are a car rental service that liquidated 30-50% of your assets just three years ago, you aren’t going to bounce back right away.

Some experts believe that the spring and summer of 2020 set the hospitality industry back a decade. So yes, it will be hard to recover. But no, it’s not impossible.

In fact, the summer of 2023 was the first to demonstrate pre-pandemic norms in terms of hospitality industry growth. Not only did people travel more, but they spread themselves out wider. Trips to Europe and Asia were significantly more prominent than they had been in the last few years.

And with Covid no longer being so focal in many people’s minds, cities were back on the menu as well. Despite challenges, Vegas had a commendable travel season. Their airport remains one of the busiest on the planet.

Same goes for New York. Chicago. London. Tokyo. Paris. We could go on, but you get the picture. It’s easy to assume that since most people have moved on from the pandemic, the economy has as well. Unfortunately, that’s not the case. Pandemic-related complications are still very much something that many industries—including the hospitality sector—are forced to deal with.

But these complications are being dealt with. Slowly, but surely, tourism is bouncing back.

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