What: Wealthy Americans are postponing their trips to Paris due to the conflict in the Middle East, affecting tourism demand.

Why it is important: France has raised its terror alert to the highest level, causing the US embassy to advise citizens to be cautious while traveling and to avoid areas of demonstrations. France, being the most visited country, saw cancellations not only in Paris but also in other European capitals.

Premium class airfare sales between New York and Paris surged by 44% in the three weeks leading up to October 7, 2019, compared to the same period in 2019, but dropped to 4% in the three weeks after the attacks. Luxury hotels like the Plaza Athénée, Le Meurice, and Le Bristol experienced cancellations from US customers following the attacks.

Concerns over anti-Semitism, fear of being caught in a war zone, discomfort with chaos, and anti-American sentiment were cited as reasons for cancellations. The war in the Middle East also led to cancellations in Italy's hospitality industry and raised concerns among industry professionals.

Rich Americans cancel trips to Paris following rising conflict in the Middle East