The threat of a potential U.S. government shutdown is casting a long shadow over the upcoming holiday travel season, with industry leaders warning of significant disruptions. The U.S. Travel Association has estimated this scenario could cost the travel industry approximately $1 billion per week.
Geoff Freeman, CEO of the U.S. Travel Association, made it clear: "A prolonged government shutdown threatens holiday travel disruptions, which Americans won’t tolerate." His statement reflects widespread concerns among travelers and businesses alike as the holiday season approaches.
On Thursday, the head of the Transportation Security Administration (TSA) echoed this sentiment, indicating longer wait times at airports could become commonplace if the government does not reach a funding agreement. This prompted over two dozen aviation groups to send letters to congressional leaders, emphasizing the dire impact of such a shutdown on the Federal Aviation Administration (FAA). The letter warned, "The FAA, its dedicated frontline workforce, our aviation community and our economy cannot afford a disruption, regardless of how long it lasts."
With estimates indicating record air travel during these festive weeks, the TSA is bracing for unprecedented passenger numbers, anticipating screening about 40 million travelers. With around 59,000 of its 62,000 employees classified as essentials, the agency would continue operations without pay during the shutdown. Unfortunately, air traffic controllers, also required to work through any potential shutdown, face similar financial strains.
Freeman expressed frustration over the possibility of forcing such workers to labor without pay during one of the busiest travel periods of the year. He noted, "It’s hard to see how anyone in Congress wins if they force TSA workers, air traffic controllers, and other employees to work without pay during one of the busiest travel periods of the year." This perspective resonates with many consumers who may reconsider their travel plans if the government isn't able to stay operational.
A recent survey reflected this apprehension; about 60% of Americans indicated they would contemplate altering their travel plans should the shutdown occur. Many reported they would cancel or avoid flights altogether. The FAA has cautioned it may need to furlough over 17,000 employees if the shutdown ensues, potentially halting training for new air traffic controllers, which could jeopardize air safety and efficiency.
This scenario resembles past government shutdowns where operational chaos ensued, particularly during the 35-day shutdown of 2019 when many TSA officers and controllers missed paychecks, leading to increased absences and extended wait times at airports.
Yet as discussions unravel, there is hope. President Joe Biden recently signed the “American Relief Act, HR 10545” Saturday morning, effectively preventing the shutdown just before Christmas. This legislation ensures government funding through March 14 and prevents disruptions to holiday travel.
"This agreement rejects the accelerated tax cut for billionaires and ensures the government can continue to operate at full capacity. That’s good news for the American people, especially as families gather this holiday season," Biden stated, reflecting his commitment to supporting families during these peak travel times.
While Biden's administration has managed to avert this crisis, industry groups like the American Hotel & Lodging Association (AHLA) continue to advocate for additional measures to protect holiday travel. They expressed gratitude to lawmakers for averting the shutdown but remain disappointed over the exclusion of certain fee transparency provisions they had lobbied for.
Looking forward, AAA has projected around 119.3 million Americans are expected to travel more than 50 miles during the Christmas and New Year holidays, showcasing the importance of stability and support within the travel sector.
Consequently, as the holiday season nears, the impact of this funding agreement cannot be understated. Municipalities and the travel sector both rely on government functionality to maintain operations and serve the millions of Americans eager to celebrate the season with family and friends.
