| The travel industry is influenced by the crisis in the | | | | that there will be losses for high-end-tourism for the |
| economy worldwide. The soaring price of crude oil led | | | | first time, but that the downturn and eventual |
| to increased cost for airlines, trains, cruise lines, and | | | | recovery will be slow. |
| bus lines. The travel industry had no option but to | | | | The value of the U.S. dollar abroad has an impact on |
| pass on their increased costs to consumers in the | | | | travel. It is argued that this is the main issue to |
| form of higher ticket prices. This was at the same | | | | determine the future of the travel industry. For |
| time that consumers had less discretionary income | | | | Americans, a rising dollar will allow them to travel |
| for travel. Even though the price of oil has dropped | | | | abroad more, and spend more money while they are |
| tremendously, the airlines still predict multi-million dollar | | | | gone. The sagging U.S. dollar will boost inbound |
| losses in 2009 due to the expected three percent | | | | tourism to the United States from overseas. Tourism |
| drop in passengers. | | | | officials are hopeful that when the new Obama |
| Because of the banking crisis, carriers who were | | | | administration takes office in January 2009, it will |
| having financial difficulties have been unable to get | | | | take action to bolster the value of the dollar and |
| the credit necessary to weather the economic storm. | | | | initiate policies favorable to the industry. |
| The British travel industry began to feel the impact | | | | It is expected that Amtrak will have continued |
| when tour operator Travelscope and carrier MAXjet | | | | support from the Obama Administration. The |
| Airways collapsed at the end of the year in 2007. | | | | Passenger Rail and Innovation Act of 2007 was |
| This illustrates one consideration that travelers have | | | | co-sponsored by Obama and provides for long term |
| when making reservations: is the carrier going to be | | | | funding for Amtrak. The new Vice President, Joe |
| in business still when it's time to travel? Many | | | | Biden, has been using Amtrak to commute to from |
| travelers are postponing making arrangements until | | | | Washington D.C. to his home in Delaware for over 35 |
| the last minute, hoping that they will get a deal on | | | | years now. All of this should bode well for the |
| last-minute fares, and ensuring that the carrier will be | | | | passenger train industry. |
| in business. | | | | So what steps can the travel industry take to make |
| It is expected that the winter ski resort reservations | | | | the impact of the recent world crisis less? New |
| will be down 9% for this year's season. Economists | | | | marketing plans should be designed to help travelers, |
| point out that the traditional deterrent to taking | | | | whether individuals or businesses save money. |
| vacations "can't get away from work" has turned | | | | Resorts and hotels can offer all-inclusive plans to |
| into "economic conditions". Previously many | | | | entice business meetings and corporate retreats. |
| Americans used the equity in their homes to finance | | | | Another option is to give the meeting room free with |
| vacations, among other things. Now in the reality of | | | | a block of rooms rented for the meeting. |
| tighter credit availability, people will be taking fewer, | | | | In Argentina the government has gotten involved to |
| shorter vacations close to home. Tourists also expect | | | | boost tourism in the South American country. They |
| to spend less on souvenirs and shopping, meals and | | | | have announced a plan of offering interest free loans |
| entertainment, and on hotels. | | | | for individuals and families who will be traveling in the |
| These trends mean that travel destinations will need | | | | upcoming months and year. Payment plans allow the |
| to market their properties to potential customers in | | | | loans to be paid back in either three or six months. |
| their own backyard. People are looking for a vacation | | | | Small businesses in the travel industry find that they |
| that includes the activities close. The changing | | | | can avail themselves of interest-free loans with the |
| demographics of the United States will also dictate | | | | same payment terms. |
| that tourism changes the target population and | | | | Cruise lines can offer deep discounts or ship credits |
| adjust the services provided accordingly. | | | | to fill cabins. Due to their fixed costs of operating |
| Another factor is the rise of tourism from emerging | | | | (fuel, staff, fees), they are in a position to entice |
| countries. Although it is not expected that this sector | | | | tourists to book cruises at bargain prices. |
| will lead the way in increased travel, it will help. | | | | The current world crisis will definitely leave its imprint |
| International tourism expands on the same path that | | | | on the travel industry. Successful businesses will |
| other economic indicators such as the GDP. One | | | | adjust their plans to be the most efficient models |
| international arena that has had a boom in tourism | | | | possible, and be able to lure stressed out and |
| over the last 15 years is India, due in part to the | | | | skeptical consumers into traveling. |
| loosening of restrictions on the airlines. It is expected | | | | |