Industry News ~ Snapshot

Leisure Travel Leads The Way
Leisure travel continues to lead the recovery of the travel and tourism industry, as evidenced by a nearly 2 percent increase in leisure travel volume for the first six months of 2002 over the same period last year, according to new data from the Travel Industry Association of America (TIA). With the economy recovering slower than expected, business travel is faring far worse, dropping nearly 9 percent for January-June 2002, continuing a three-year decline in business travel volume. > Top

90% Of Meeting Professionals Predict Industry Growth
A recent poll confirmed that 90% of the 820 respondents believe that meeting industry business is moving forward. Seventy-eight percent said the industry will continue to grow at a slow pace back to normal (pre-9/11 levels), while another 12% took an even more positive outlook, saying the growth will be faster than what is currently predicted. > Top

NBTA Reports Corporate Travel Off Because Of Economy
A year after the terrorist attacks on America, corporate travel is still below normal, according to a new survey by the National Business Travel Association (NBTA). Yet, the economy, not security, is still the main reason for the current low levels of travel, according to survey respondents. In a survey of 200 corporate travel managers conducted August 29 - September 5, 70% responded that travel in their companies is down from this time last year by up to 20%.

NBTA Survey Also Shows Travel Below Year 2000 Levels
A total of 72% of the NBTA respondents said their travel was below 2000 levels, which is the last time travel was considered normal. I fact, 31% of respondents said their travel was down by 20% or more from 2000. In comparison, fewer respondents (65%) said their spending was below 2000 levels in a March 2002 NBTA survey. In addition, most travel managers see business travel recovery coming slower than previously expected. Seventy-three percent said their spending in the next six months would stay the same or increase. The majority of respondents (62%) think that recovery will take more than 12 months, while the majority of respondents (60%) in the March survey expected travel to be back to normal in 6 to 12 months. > Top

Hotels Face Hurdle As Travel Managers Seek Internet Bids
Companies posting their travel needs and soliciting bids on the Web are putting additional pressure on big hotel chains such as Hilton Hotels and Starwood. The worst drop in demand in 34 years left more than a third of U.S. hotel rooms vacant as of June. UBS Warburg lodging analyst Keith Mills said of the auctions: "The hotels are in a very difficult demand environment, and they're fearful they may lose business" if they don't participate. Jo Ann Gallardo, at Austin, Texas-based Dell Computer Corp., said Internet auctions helped her cut about 13% off room rates paid by 50,000 of the company's guests and employees at such Austin-area hotels as the Four Seasons and Marriott Residence Inn in Round Rock. "The hoteliers are online and everyone can see the rates that flash up," Gallardo said. "It gives them more incentive to lower their rate." Reverse auctions of hotel rooms and other goods and services are among the Internet applications that have survived the shakeout that claimed 862 Web ventures since 1999, according to Webmergers.com. > Top

World Tourism Organization Sees Industry Changes
The basic characteristics of international tourism in the first half of 2002 have been changing according to the World Tourism Organization including: 1. There has been a contraction in international tourism caused by a decline in long-haul flows. 2. This contraction seems to be easing gradually as the months pass. 3. Prices are playing a key role in purchase decisions. 4. Behavior has changed, particularly in relationship to delays in bookings and last-minute purchases. Some of the latest marker trends include: 1. A clear tendency toward shorter stays when going on holidays. 2. Higher demand for customized holidays. 3. Increase in the number of senior tourists. 4. The advent of emerging destinations which are prompting other destinations to rethink the design of their products. > Top

National Events & News

HSMAI Travel Awards Night Dinner > Read More...
January 28, 2003 ~ New York

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