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Mark ChesnutContributing Writer

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Do Diversity Efforts Actually Lead to Business Success?

Mar 30, 2025
Diversity, Equity, Inclusion  
Do Diversity Efforts Actually Lead to Business Success?
There are many misconceptions about DEI in the workforce, though diversity has been shown to provide business benefits.
Credit: 2025 Jacob Lund/stock.adobe.com

As the concept of diversity, equity and inclusion (DEI) continues to fuel debate across the nation, some travel industry experts are stressing the need to better understand exactly what the terms mean — and what DEI efforts mean for the travel business.

“It’s essential to clarify that diversity, equity and inclusion is often misunderstood and taken out of context,” said Debra Hines Brown, CEO and luxury travel designer at SmartBird World Travel and a member of Northstar Travel Group’s Black Travel Advisory Board (Northstar is the parent company of TravelAge West). “DEI is not about preferential treatment or replacing qualified individuals; it is about building environments where people of all backgrounds feel seen, valued and respected.”

DEI is not about preferential treatment or replacing qualified individuals; it is about building environments where people of all backgrounds feel seen, valued and respected.

Understanding the Recent Backlash on DEI Initiatives

Some businesses and organizations started retreating from DEI initiatives last year. American Airlines, for example, announced plans in December to discontinue its DEI efforts.

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After President Donald Trump issued an executive order on Jan. 20 that ended DEI policies in the federal government, the number of companies abandoning their own plans grew.

At a time when many businesses and organizations are changing DEI-related policies and strategies, it’s even more important to understand the value of these concepts and to fact-check misperceptions, according to Anna Blue, who serves as an advisor to the Women in Hospitality Leadership Alliance. 

One of the most dangerous aspects of this backlash is the false narrative that a person is either qualified or diverse, but not both.

“One of the most dangerous aspects of this backlash is the false narrative that a person is either qualified or diverse, but not both,” Blue said. “This myth, which has taken hold across industries, including hospitality, undermines the credibility and achievements of women and other historically excluded leaders. It suggests that if a woman or person of color rises to a leadership position, it is because of DEI initiatives rather than their talent, experience and qualifications. This narrative is not only harmful — it’s blatantly untrue. The data consistently shows that diverse leadership drives better business outcomes, yet critics of DEI weaponize the concept of meritocracy to maintain the status quo.”

RELATED: These Travel Companies Are Doubling Down on DEI Efforts 

John Tanzella, president and CEO of IGLTA, the International LGBTQ+ Travel Association, praises organizations like Delta Air Lines, the United States Tour Operators Association and Intrepid Travel, all of which have confirmed their continued commitment to diversity, equity and inclusion.

“As DEI challenges intensify and some companies scale back, we’re proud to see the partners and members in our travel and tourism network remain committed,” Tanzella said. “Tourism has often led the way in DEI, and while we’ve heard from some businesses that they may have to rebrand their programs, the work will continue."

How the Travel and Tourism Industry Benefits From DEI 

“DEI isn’t just about doing the right thing,” according to Tanzella. “It’s a smart business strategy. When done right, it enhances brand loyalty, employee retention and drives the overall success of the business. Employees are more motivated when they feel valued, and consumers are more likely to trust a brand that shows it stands for something meaningful.”

Companies that embrace DEI policies gain a clear competitive edge, and gender diversity is a proven driver of success.

Rachel Humphrey, founder of the Women in Hospitality Leadership Alliance, cites multiple reports as proof of DEI’s effectiveness. 

“Companies that embrace DEI policies gain a clear competitive edge, and gender diversity is a proven driver of success,” she said. “Research shows that organizations with high female leadership are 25% more likely to achieve above-average profitability [according to a McKinsey & Co. study] and diverse leadership teams make better decisions 87% of the time [according to a report in the Harvard Business Review].” 

RELATED: Veranda Adkins Advocates for Inclusivity Within the Travel Industry 

Even smaller companies can benefit from an inclusive approach, according to Christopher J. Falvey, partner at Unique NOLA Tours, a tour company in New Orleans.

“Diversity is not a bad word, and in our industry, it is necessary,” Falvey said. “We need guides of all sorts of backgrounds to riff on their own personal stories as they work through our loose script for tours; help us understand where we want to come from when writing tour content; and help us understand what some people may be offended or put off by certain content that we have a blind spot to. Our guests are — and there is no way around this, and no one would want a way around this — diverse.” 

The Risks of Pulling Back DEI Efforts

Some destinations and businesses may suffer negative reactions when discontinuing DEI efforts, according to Tanzella. 

“A 2024 IGLTA Foundation survey revealed that more than 80% of LGBTQ+ travelers from the U.S. view Florida as unwelcoming due to state policies,” Tanzella said. “This shows how political shifts can impact travel decisions, leading to feelings of exclusion.”

Of course, not all travel industry players are rolling DEI efforts back. 

The key is to stay vocal and proactive, emphasizing that diversity isn’t just a moral stance — it’s a driver of long-term success.

“The travel industry has long been shaped by diverse voices, and many businesses remain committed to inclusion,” Tanzella added. “The key is to stay vocal and proactive, emphasizing that diversity isn’t just a moral stance — it’s a driver of long-term success.”

Brown of SmartBird World Travel concurs.

“At its heart, DEI is about fostering workplaces and communities where everyone has the opportunity to thrive,” she said. “When we lead with inclusion, we all rise together. And when we neglect it, we all feel the consequences."

Brown handily sums up the logic of diversity, equity and inclusion this way.

“The world isn’t becoming less diverse,” she said. “If we want to stay competitive and relevant, we must build environments that reflect and celebrate that diversity from within.”

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