Momentum around meeting cancellations

by Tom Johansmeyer on

Meetings and conventions aren’t just falling … they’re actively being canceled. While it’s easy to write this off as the erosion of a wasteful corporate perk, it translates to genuine financial crisis for the travel industry.

Over the past six months, 402 conventions and meetings have been canceled in Las Vegas alone. According to the Las Vegas Convention & Visitors Authority, this translates into a loss of $166 million for the city … and that doesn’t include lost gambling revenue. It’s no wonder that the city has to be inches from paying guests to visit.

Cancellations at Orlando haven’t been as bad, but the problem is merely one of degree. This year, the city has sustained an economic impact of $26 million from the canceling of 114 meetings scheduled for 2009. Because of all this, 146,000 rooms are expected to be vacant this year … rooms that were supposed to be occupied.

It’s been tough in other cities, too.

All in, this has translated to more than $1 billion of lost revenue in the first two months of the year from meeting cancellations, according to the U.S. Travel Association. The number is even worse when you factor in spending on rental cars, catering and local attractions.

So, for anyone who doubted the potential for more than 200,000 jobs to be lost in the travel industry this year … just do the damned math.

Roll the dice with “job-loss guarantees”

by Tom Johansmeyer on

It makes a lot of sense right now. You have a job, and you’re feeling comfortable in it. You’ve survived the latest round of layoffs, and it looks like the bleeding has stopped for a while. Or, you’re just so stressed out you throw caution to the wind and book a vacation, just so you can recharge a bit.

But, you aren’t reckless.

Because we all live and work in a world at financial risk, you had the presence of mind to take advantage of a “job-loss guarantee.” If you lose your job, you get your money back … maybe. It turns out that guarantees aren’t always guaranteed. Several travel companies – including JetBlue and Norwegian Cruise Line – the rules are being tweaked.

Defining “job” can be the tough part. Several programs require that you be employed for at least a year at your current gig and that it be full-time. But, it varies. Check the terms and conditions before you bank on this benefit.

“Job loss” can be tricky, as well. If you were laid off, you seem to be in the best position to recoup what you’ve paid. But, if you were fired for cause, some programs may not pay. According to JetBlue, for example, “The spirit of the program is to accommodate those who have involuntarily lost their jobs due to the economy.” Resignations and buyout programs, also, may not qualify under some job-loss guarantee programs.

Be prepared to prove that you have lost your job. Chances are you’ll find something in the stack of paper that Human Resources gives you (usually your termination letter).

These programs can be helpful, but read the fine print. If you’re at all worried, spend your day off on your front stoop and hold onto your cash for a more stable time.

AirTran cuts flights to VT, nobody cares

by Tom Johansmeyer on

When AirTran‘s first flight touched down in Burlington almost a year ago, the airline’s director for strategic planning and scheduling, John Kirby, said, “This is going to be a home run.” I guess that didn’t work out.

It didn’t even last a year. AirTran’s nonstop service between Burlington, VT and the Washington, D.C. area is now but a memory “seasonal.” The route will now be serviced for around four months a year. The airline cites the economy as the reason it halted flights in early September. Flights to and from Baltimore are expected to resume in April or May 2010. Last year, 5.5 percent of passengers flying out of Burlington did so on AirTran.

Well, I guess it really isn’t “seasonal” after all. AirTran’s decision to run flights from May to August – with the possibility of April and September – seems to overlook the fact that ski season is the state’s big draw.

All hope is not lost, though. Burlington International’s airport director, Brian Searles, says the airport is in discussions with AirTran in the hopes of returning year-round service to the city. Vermont politicians, including Governor Jim Douglas and Senator Patrick Leahy have been getting in on the action as well. With AirTran’s $273.8 million loss last year, it seems these guys are wasting their breath.

Airline biz to lose $2.5bn, but more flights on time

by Tom Johansmeyer on

MSNBC continues to publish the same story, and I continue to reblog it. Fortunately, author Sholnn Freeman managed to sneak in some interesting stuff at the end.

It’s no secret that airline prices are dropping as fast as they possibly can. Broader economic conditions are responsible for this fact. How do we know? The fine folks at MSNBC have developed the unique skill of telling the same story over and over with different words.

So, here’s the reality: you can find domestic one-way fares for under $100. I’ve seen several international fares (one-way) for under $200, usually to Latin America. According to Rick Seaney, Chief Executive of FareCompare.com, “If you are paying over $300 for an airline ticket right now, you are probably paying way too much.” He continues that these prices do not occur outside a recession.

Nonetheless, passengers remain cautious. You know the drill … the savings may be great, but if you can’t afford to take advantage of it, you save nothing. A lot of people are canceling or scaling back vacation plans.

Thanks, MSNBC; we had no idea …

But, there is good news, and this is stuff MSNBC hasn’t reported before.

Airline on-time rates are at their best levels in years. Since there are fewer flights taking off, congestion has declined. So, all that time waiting on the runway last year is time in the sky this year. Of course, efficiency comes at a cost: the International Air Transport Association expects the global airline industry to lose $2.5 billion this year.

Pink slip relief in Vermont

by Tom Johansmeyer on

The Rabbit Hill Inn in Lower Waterford, VT is willing to share your pain. If you or your spouse has been unemployed for more than six months, send your story to Leslie and Brian Mulcahy – the inn’s proprietors – and you could win a two night getaway, with everything from candlelight dinner to a rabbit’s foot and wishes for a return to gainful employment.

Every month from April through July and November through December, Leslie and Brian will award one of these trips, called “Pink Slip Getaways,” to the most deserving story. The total package doesn’t include liquor or transportation to the inn, but that’s a rounding error compared to two nights lodging (Sunday to Thursday, non-holiday only), a gourmet dinner for two, afternoon tea and pastry and a candlelit breakfast each morning. All gratuities, service charges and taxes are included, too.

In a page or less, lay out your tale of woe, and send it to info [at] rabbithillin.com. You may win some relief!