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.

Recession impact evident in January, foreign visits to U.S. down

by Tom Johansmeyer on

Foreign visits to the United States are down 9 percent year-over-year for January 2009, according to an announcement by the U.S. Department of Commerce. Spending by this group of visitors reached $10.6 billion – down 7 percent from January 2008. So, it looks like the people who spend less aren’t coming, since cash isn’t falling as fast as visitation. Slightly more than 3 million people visited the United States from abroad this year.

This confirms the worldwide effect of what was once called a “subprime mortgage crisis.” The global recession has led to a decline in consume rspending that includes travel.

Half the traffic came from our neighbors. Canada sent 1.1 million visitors to the United States, but this is down more than 12 percent year-over-year. Land arrivals fell 16 percent, with air arrivals dropping by only 8 percent. Mexico had 405,000 visitors to the United States in January. This is a decline of 4 percent. Air arrivals fell 16 percent, with land arrivals actually up 2 percent.

Excluding Canada and Mexico, U.S. arrivals totaled 1.5 million, a fall of 8 percent. Four of the top 20 countries (by number of travelers sent to the United States) showed increases, and two of them had double-digit year-over-year growth.

Brazil: up 5 percent (and showing 32 months of consecutive increases)

China: up 37 percent (and showing 35 months of consecutive increases)

Italy: up 6 percent (showing 25 months of consecutive increases)

Argentina: up 19 percent (and showing 30 months of consecutive increases)

U.S. visitation from the 27 countries in the European Union fell 11 percent overall for January 2009 (relative to January 2008), and travel from Western Europe was down 12 percent. Western Europe accounts for 37 percent of all overseas arrivals to the United States. Travel from Eastern Europe to the United States was up 5 percent. Travel from Asia to the United States, on the other hand, fell 9 percent year-over-year but nonetheless accounted for 31 percent of overseas arrivals to the United States. Travel from Japan fell 13 percent, with South Korea down 17 percent. Visits from India plunged 12 percent year-over-year.

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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.

U.N. Predicts Substantial Drop in International Tourism for 2009

by Kraig Becker on

The United Nations has released a report indicating that they expect global tourism to decline in 2009 thanks to deteriorating economic conditions according to this story at MSNBC.

Overall, the international tourism market is expected drop as much as two to five percent, with Europe taking the biggest hit of all. But the highly diversified economies there are likely to weather the storm far better than smaller countries that are more dependent on tourism to fuel their own economy.

In 2008, international travel actually rose by two percent, but the second half the year saw a steep decline as the global economic crisis spread. That growth is in sharp contrast to the previous four year when growth averaged more than seven percent.

Still, Talib Rifai, the Secretary General for the U.N.’s World Tourism Organization, says that this is not a crisis for the tourism industry per se, but instead reflects the general economic trends from around the world. He says that the interest in travel is still very strong, but those who would generally be taking an international vacation are electing to save their money or take trips closer to home.

For those still intending to travel abroad however, this means travel deals should be abundent throughout the year, and likely into 2010 as well. A competitive travel market is a boon for travelers, so take advantage of the deals while you can.

Gadling Take FIVE–Week of Feb. 21-Feb. 27

by Jamie Rhein on

First, Tynan and Todd are off on their Pan Panama Road Trip with a new video update to prove it. Also, throughout the week, there have been more installations on Gadling’s Budget Travel Series: Mexico; Seattle; Boston; and Ft. Lauderdale.