|Travel Industry Travails|
|Key Words||Industry, Economy, Recession, Prices, Cost, Rates, Recovery|
The events of September 11 have caused turmoil in the travel industry. What is in store for 2002 is uncertain, particularly because of the economy, but a dozen travel industry gurus have made their predictions for flying, cruising and lodging.
Air travel is predicted by some to decrease because of the recession and scares about security. Business people may take charters, or use email. Prices may also rise due to the cost of new security measures and the cutbacks in flights by the airlines. Alternatively, prices may remain low if business travel does not bounce back.
Cruises prices are significantly lower than a year earlier. Some people fear that they would be floating targets for terrorists. Others are afraid to fly to the ports of departure. The addition of 16 ships in 2001 and a further 13 in 2002 is likely to exacerbate the problem. In response, the cruise lines are moving more ships from Europe to the U.S. so that consumers can drive to their ports of departure. They are also likely to improve the cruise experience by offering flexible dining times, linked cabins for families, more sophisticated entertainment for aging baby-boomers, and magnificent spas. In addition, they hope for a cold winter in the U.S.!
Lodging predictions vary. Some see the recession and fears of flying resulting in lower hotel rates, especially in upscale hotels and large cities. Others see a minor recovery after the winter.
(Updated January 15, 2002)
|Source||Jane Engle, "Travel experts foresee some rare deals in 2002," The Miami Herald, January 7, 2002.|
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