North American travelers undeterred by tough travel conditions
You might think airline cancellations, a slowing economy, rising gas prices and a weak dollar would deliver a powerful punch that would deter US travelers. But that’s apparently not the case at all.
Americans appear to be sticking to summer vacation plans. Business travelers are still moving about the country. But the one evident change is a newfound emphasis on cutting costs.
“Leisure travel is kind of like food and rent — it’s considered an essential cost within a relevant range,†said Bjorn Hanson, who follows the hospitality industry for PricewaterhouseCoopers.
The number of people traveling set records in 2007, and those figures are holding steady so far this year.
“Travel agents and industry analysts report robust bookings for domestic, international and business travel. That is even true for trips to Europe, but some people are opting for destinations where the dollar goes further, like Portugal instead of Britain,†says The New York Times.
Mr Hanson says companies have cut back so much since 2000 that there is not much fat left to trim, but businesses are enforcing travel policies more strictly to control costs.
Although the airlines are struggling with skyrocketing fuel prices, aging planes and calls for tighter regulation, one bright spot is that passengers are still filling up seats and booking flights.
“We’re concerned about a recession, but probably more in the second half of the year,†said John Heimlich, chief economist for the Air Transport Association. He added that, so far at least, airlines have not announced widespread fare sales.
Hotels have followed suit in not doing much discounting. Room rates in the United States were up 6% in 2007, to an average of $104 a night, and increased 5% in the first quarter of this year, according to Smith Travel Research.
One factor bolstering this demand is the influx of foreign travelers. In 2007, some 57 million foreigners traveled to the United States, spending $123 billion — a record on both counts, according to the Department of Commerce.
Over all, airlines based in the United States carried 769 million passengers last year, an annual record.
Report by David Wilkening
David
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