Survival Strategies in the Wake of the Terrorist Attacks: Impact on Travel and Hospitality

-By Max Starkov
By Max Starkov - EyeForTravel
September 19, 2001
Though it is too early to assess the extent of the impact of the terrorist attacks on the travel industry and to foresee the ripple effects across various travel markets, there are some indications of what lies ahead. After a four-day trading pause, the markets hammered airline and travel-related stocks. It is impossible to predict what will be the long-term implications, but one thing is for sure: during such trying times the travel industry is especially vulnerable. Travel experts are in agreement that the recent terrorist act will have at least a short-term (4-6 months) negative impact on the travel industry. This short-term impact may be exacerbated by psychological factors (lingering shock effects, fear of flying, uncertainty, etc), how the "war on terrorism" proceeds and how the economy performs over the next several quarters. The travel industry may recover or sink in a long-term down cycle.

Here are some of the effects of the terrorist attacks on travel and hospitality, which travel suppliers and hoteliers should take into consideration when assessing the situation:

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