Brand USA's Challenges, Hotel Immigration Crackdown and Air India's Schedule Changes

On today’s pod we talk to Brand USA’s CEO, look at the immigration crackdown’s effect on hotels, and hear about Air India’s cutbacks.

Good morning from Skift. It’s Thursday, June 19. Here’s what you need to know about the business of travel today.

Brand USA is grappling with a potential federal funding cut and a fragile inbound travel recovery weighed down by global political tensions. CEO Fred Dixon discussed how the organization is preparing for both challenges as it launches a new marketing campaign in an interview with Skift Meetings Executive Editor Andrea Doyle.

Brand USA could see an 80% cut in federal funding as part of the “big, beautiful” tax bill that’s being negotiated in the Senate. However, Dixon expressed cautious optimism, noting President Trump’s budget proposal included full funding for Brand USA.

Brand USA has also unveiled a campaign called “America the Beautiful,” which Dixon says aims to re-center attention on U.S. travel. The campaign comes as inbound tourism has fallen in recent months.

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Next, U.S. hotels are working to comply with the Trump administration as it increases its crackdown on immigration, which threatens to make the sector’s labor shortage worse, writes Senior Hospitality Editor Sean O’Neill.

Trade groups in the hotel industry said they're mobilizing to help members navigate compliance requirements. Those efforts come as ICE has ramped up workplace raids targeting industries that rely on immigrant workers, with officials stating they would continue to make arrests at worksites.

Hotels are already struggling with staffing shortages, particularly resort properties that depend on seasonal workers — especially in areas without large local workforces. O’Neill writes the hotel industry finds itself caught between competing pressures: the need for workers to fill essential but often low-paying jobs and the risk of legal consequences for employing people without proper documentation.

Finally, in the wake of last week’s fatal crash, Air India said Wednesday it would reduce international flying on widebody aircraft until mid-July, writes Airlines Reporter Meghna Maharishi.

Air India said it’s cutting international widebody service by 15% for several reasons, including enhanced safety inspections and airspace closures in parts of Europe and Asia. In addition, Maharishi notes the escalating Israel-Iran conflict has driven Air India to divert several routes.