Press Release: Travel Business Roundtable
WASHINGTON, Aug. 22 /PRNewswire/ -- Nearly one year after the September 11 terrorist attacks, price-cutting by
the travel industry and enhanced security measures at airports have stimulated demand and largely restored the
confidence of U.S. travelers. But an industry rebound remains uncertain, with leisure and business travelers both
citing the economy as the prime reason they are traveling less, according to a new nationwide survey released today
that was commissioned by travel website Orbitz for the Travel Business Roundtable (TBR) in conjunction with NYC
& Company and the Washington Convention and Tourism Corporation (WCTC).
The August 14-15 survey results of interviews with 700 respondents follow two surveys administered by TBR in October
2001 that touched on many of the same issues. The opinion research was done with a random sample of Americans identified
as travelers who had taken at least one airline trip or spent one night in a hotel during the previous six months.
The new data shows that while nearly 90 percent of Americans are now traveling more or at about the same level
as before September 11, frequent business travelers, who make up the majority of the industry's revenue because
of their tendency to purchase higher-priced airfares or rooms, continue to make fewer trips.
"Though lower prices and increased security measures have helped get Americans traveling again, the ongoing
economic uncertainty in the U.S. is a barrier to the industry's recovery," said Jonathan Tisch, chairman of
TBR and chairman and CEO of Loews Hotels. "With consumers seeing their savings significantly decreased or
wiped out by the recent performance of the stock market or their 401k retirement plans, they are cutting back on
discretionary spending, including travel. Vacations are being shortened or canceled altogether. Likewise, businesses
continue to cut back on non-essential travel, keeping their travel costs down as well."
Nearly one-half of all travelers surveyed cited economic factors as the reason they would avoid taking a trip.
Thirty-two percent of all travelers surveyed said budget considerations would be the prime reason keeping them
from traveling more than 100 miles from home or that traveling had become too expensive, and 12 percent said that
they are not traveling due to economic uncertainty.
Not coincidentally, the reluctance of Americans to travel could hinder the speed of an economic recovery in the
U.S. As the nation's second largest employer, employing more than 18 million people, and the third largest retail
industry, travel and tourism was a $582 billion industry in 2000, generating nearly $100 billion in federal, state
and local tax revenues.
Forty-six percent of business travelers were either much more or somewhat more reluctant to travel in the month
following the events of September 11, and today 39 percent of business travelers remain much more or somewhat more
reluctant to travel -- an improvement of only seven percentage points. On the other hand, 27 percent of leisure
travelers today are much more or somewhat more reluctant to travel -- an improvement of 18 percentage points from
last October.
According to Jeff Katz, Orbitz president and CEO, luring the frequent business traveler back to the air and the
road is also critical to the travel and tourism industry's recovery.
"There are very promising signs that indicate Americans are nearly back to their normal levels of travel,"
said Katz. "The resiliency that is being demonstrated by leisure travelers since September 11 is especially
encouraging. Discounts and great travel deals are still available, and continue to help drive the recovery of the
leisure travel market."
Katz continued, "However, there is a clear lag in the resumption of business travel patterns. Among frequent
business travelers, 17 percent say that they are traveling less now -- five percent more than the population at
large. Though a small percentage of the traveling population, these frequent business travelers contribute to nearly
half of the industry's overall revenue."
The Orbitz-sponsored survey for the TBR also found:
* While 89 percent of all travelers think airport security is better
now than it was before September 11, 2001, three in ten (30 percent)
believe that the current level of security measures imposed so far
are "insufficient" and more can be done -- an increase of five
percentage points from last October.
* Business travelers' and leisure travelers' opinions differ on the
new security measures. Among frequent business travelers, only 60
percent think that the new measures are sufficient, versus 74
percent of frequent leisure travelers.
* Nearly four out of every five (79 percent) frequent business
travelers have received heightened security screening (i.e. a "pat
down" or removal of shoes).
* Just over one in five (21 percent) frequent business travelers find
security screening procedures very consistent from airport to
airport.
* More than one in ten travelers (11 percent) have canceled their
flights or fly less frequently because of the hassles of airport
security.
* Thirty-one percent of female business travelers who have reduced
their level of flying because of the hassles of security have done
so because of the personal "intrusion from security," compared to 12
percent overall. By contrast, of male business travelers who have
reduced their level of travel, only 4% cited the intrusion of
security as the reason.
According to Tisch, while commercial airline travel is perceived to be very safe, the "hassle-factor"
associated with heightened airport security, a lack of confidence in the sufficiency of the airport security measures
and inconsistencies in the screening process from one airport to another confirm a recent trend by travelers to
make trips by car instead of airplane. The percentage of those who view automobiles as the safest place to be has
risen from 69 percent last October to 76 percent.
Among the survey's other results:
* Of those who say they are traveling more now than a year ago, 45
percent say they are more inclined to book their travel online,
either through the airline directly or via an independent travel
site such as Orbitz (versus 20 percent who say they are less
inclined).
* Of those who purchase travel online, 21 percent use an independent
website versus 17 percent who book directly via the airline website.
* Twenty-nine percent of travelers are less inclined to take an
international trip since the events of September 11. Almost one in
ten (nine percent) have delayed, postponed or canceled an
international trip. The number is even higher among male business
travelers, of whom 16 percent have canceled an international trip.
* Nearly one in four (23 percent) travelers who are less inclined to
take an international trip say they would rather travel in the U.S.
and support the domestic economy.
* Travelers are more inclined to visit Washington, D.C. or New York
City now than they were a year ago. Seventy-six percent of
travelers surveyed said they would not avoid a trip to Washington,
D.C. and 75 percent said they would not avoid a trip to New York
City, an improvement over last year of seven percentage points and
four percentage points respectively.
* Fifty-eight percent of travelers are closely watching the debate
over the future World Trade Center Memorial and 75 percent plan to
visit it.
* A majority (68 percent) of frequent business travelers say the
travel industry response to the events of September 11 was "better
than expected," while nearly one in four say the industry response
was "worse than expected." Comparatively, 74 percent of all
travelers said the industry responded "better than expected."
"One year later, the tragic events of September 11 continue to impact the travel and tourism industry,"
said Tisch. "The industry has responded, and we are seeing promising signs that reaffirm the progress being
made. Clearly, more needs to be done, and the industry and government should continue to work collaboratively to
find solutions that will get more Americans traveling, and spur more international travelers to visit the U.S."
The survey was commissioned by Orbitz and conducted on behalf of the Travel Business Roundtable in conjunction
with NYC & Company and the Washington Convention and Tourism Corporation by Penn, Schoen, Berland and Associates
on August 14 and 15. The survey had a sample size of 700 respondents (margin of error +/- 3.8 percent). The sample
was broken in equivalent groups of business and leisure travelers. This is the third wave of the survey that seeks
to track changing traveler attitudes in the aftermath of the September 11 terrorist attacks. The first and second
waves were conducted in October 2001.
About TBR:
The Travel Business Roundtable is a CEO-based organization representing all sectors of the travel and tourism industry,
including major airlines, hotels and lodging, restaurants, retail outlets, travel management companies, car rental
companies, financial services institutions and others. The roster of members reflects the interdependence of all
sectors of the travel and tourism industry and demonstrates the need to work collaboratively, especially during
these challenging times.
About Orbitz:
Orbitz is a leading online travel company offering consumers the largest selection of low airfares, as well as
deals on lodging, car rentals, cruises, vacation packages and other travel. Orbitz' state-of the-art flight search
engine searches more than 455 airlines -- up to 2 billion flight and fare options -- offering an unbiased and comprehensive
list of airfares and schedules. Founded by the world's leading airlines -- American (AMR), Continental (CAL), Delta
(DAL), Northwest (NWAC) and United (UAL) airlines -- Orbitz also offers consumers a large collection of discounted
web-only air fares. For more information, visit http://www.orbitz.com.
About WCTC:
The Washington, D.C. Convention and Tourism Corporation serves as the lead organization to successfully manage
and market Washington, DC as a premier global convention, tourism and special events destination. Through successful
development and execution of centralized and cohesive sales and marketing strategies, the WCTC generates economic
benefits to the citizens of the District of Columbia, the convention and tourism industry, stakeholders and the
Washington Convention Center Authority, with a special emphasis on the arts, cultural and historical communities.
The private, non-profit corporation has a membership of nearly 1,000 businesses and organizations that support
the travel and tourism industry in our nation's capital. The city's tourism industry generates more than $10 billion
in direct spending each year and sustains 260,000 jobs.
The Washington, DC Convention and Tourism Corporation was established by business and community leaders in April
2001 by merging the Washington, DC Convention and Visitors Association and the DC Committee to Promote Washington.
About NYC & Company:
NYC & Company, the city's official tourism marketing agency, is a private, non-profit membership organization
dedicated to building New York City's economy and positive image through tourism and convention development, major
events and the marketing of the city on a worldwide basis.
Check out NYC & Company's new web site at http://www.nycvisit.com.
SOURCE: Travel Business Roundtable