Travelers to the U.S. must pay a new "visa integrity fee" to visit, but questions remain as to how and when it will be implemented. Here's what we know so far.
Business travel elasticity has traditionally been around 0.4, meaning business travellers will tolerate higher fees with only a small drop in demand. But there would still be a drop.
What no one has mentioned here so far is that the $250 additional visa fee is refundable. But it’s not automatically refunded. You have apply for it after meeting some basic conditions. So for businesses, it’s really a much smaller administrative cost.
So far the process for applying for the refund hasn’t been established. So it’s all a bit of a hot mess still.
Fun part is that if the fee is refundable, but requires a process, then some company travel policies might stick such a fee with the employee if they fail to correctly do the process to get the refund. In such a company it might be one more thing for an employee to think about declining travel because they might personally get stuck with the bill.
Business travel elasticity has traditionally been around 0.4, meaning business travellers will tolerate higher fees with only a small drop in demand. But there would still be a drop.
What no one has mentioned here so far is that the $250 additional visa fee is refundable. But it’s not automatically refunded. You have apply for it after meeting some basic conditions. So for businesses, it’s really a much smaller administrative cost.
So far the process for applying for the refund hasn’t been established. So it’s all a bit of a hot mess still.
Fun part is that if the fee is refundable, but requires a process, then some company travel policies might stick such a fee with the employee if they fail to correctly do the process to get the refund. In such a company it might be one more thing for an employee to think about declining travel because they might personally get stuck with the bill.