Jamie Biesiada
The shake-up in the federal government ushered in by the Trump administration is starting to affect the travel industry. While many advisors haven't been affected at this point, there's no telling what the future holds. It's a good time to take stock of your client base and diversify.
That's the advice of Jay Ellenby, president of Safe Harbors Business Travel in Belcamp, Md.
Safe Harbors serves a number of nongovernmental organizations (NGOs) that were funded by the U.S. Agency for International Development. That part of the agency's business is essentially on hold, Ellenby said.
NGO business doesn't make up a majority of Safe Harbors' sales. It will still impact the bottom line, but Safe Harbors has a diversified client base, Ellenby said.
"Otherwise, I'd be crying the blues," he said.
While Safe Harbors is corporate-focused, the argument of diversification can be made for any agency. If you focus on one kind of travel, or one kind of client, you risk trouble if something happens to interrupt that segment.
"We have a very diverse clientele," said Ellenby. "Luckily, we're not married to one particular segment. So that's the advice: Make sure to diversify, that you work with a wide range."
That advice is perhaps more relevant now than ever with so many uncertainties.
The Department of Government Efficiency (DOGE) continues its campaign to streamline the federal government, drawing multiple lawsuits.
The stock market has been fluctuating amid uncertainties regarding tariffs on some of the U.S.'s biggest trading partners.
Consumer confidence levels have also taken a hit.
The Conference Board's Consumer Confidence Index fell 7 points in February. The Conference Board is also seeing indications that a recession could be ahead, as its Expectations Index dropped 9.3 points to 72.9. According to the organization, 80 is the threshold that usually points to a coming recession. February marked the largest monthly decline in consumer confidence since August 2021.
Now is the time to safeguard your business from potential economic headwinds.