Brand USA chief commits to 'priority' UK market despite budget cuts

The UK trade will see no decline in focus from Brand USA despite the organisation’s need to “recalibrate” resources in response to swingeing budget cuts, its chief executive has pledged.

The destination marketing organisation was forced to make significant savings, including laying off 15% of its workforce, after its budget was slashed from $100 million to $20 million under President Donald Trump’s ’Big Beautiful Bill’.

Despite the cuts, chief executive Fred Dixon insisted the UK market would see no decline in commitment and focus, with savings instead coming from the “sunsetting” of platforms including the GoUSA TV streaming channel and a retraction from smaller source markets.

The UK is one of nine “priority” markets targeted for the new ‘America the Beautiful’ marketing campaign, which launched this week at Brand USA’s Travel Week in London.

It is also currently bucking an overall decline in travel volume to the US, with official data from the US Department of Commerce showing air arrivals were up 2.1% year on year at the end of August at 2,644,598.

The US Travel Association is leading industry lobbying efforts for Brand USA’s funding to be fully restored, with Dixon telling Travel Weekly: “We are very grateful for the industry’s support. We have been forced to tighten our belt but there is positive dialogue and we are hopeful there will be a resolution on the table.”

Addressing delegates at the event, he added: “It’s no secret that it has been quite a year for us [but] as an organisation our finances have stabilised for the moment and we have put together a robust business plan.”

The main focus of the organisation’s strategy is the America the Beautiful campaign, which will run across connected TV, streaming, out-of-home placements, digital and social media and will include four video adverts highlighting the great outdoors, family travel and luxury travel.

The creative content will be supported by an AI-powered hub at AmericaTheBeautiful.com which will offer personalised recommendations, interactive maps and itinerary-building tools.

Dixon said the adoption of AI was central to Brand USA’s forward plans, but insisted the hub was designed to enhance rather than replace trade partnerships.

“We are looking to meet potential travellers wherever they are but we remain committed to working with the trade to amplify that content and are encouraging our wholesalers and receptives (operators] to package it,” he said.

“There is no call to booking and the trade has the reach and relationships so we are looking to evolve alongside them.”

Dixon pointed to continued growth in transatlantic air capacity and a slight improvement in exchange rates as he voiced optimism that the UK market would continue to grow in line with projections from Tourism Economics.

He also reiterated Brand USA’s commitment to the travel agent community, with its next UK & Ireland Megafam due to take place next year alongside a refreshed webinar series and plans to recruit 20 to 30 UK agents to join 250 travel advisor ‘ambassadors’ for America’s 250th anniversary celebrations.

The Travel Week event took place as the US federal shutdown entered its fourth week, with no signs of an imminent resolution. However, Dixon said the impact to-date on transport infrastucture including air traffic control and customs had been minimal.

If there is no end to the shutdown by November 1, the start of registration for health insurance under the Affordable Care Act, it is possible it could go on until the week of Thanksgiving on November 27.

A dispute over Affordable Care Act funding sparked the shutdown and a failure to reach a deal by Thanksgiving would threaten significant disruption to travel.