Travel from the rest of the world to the U.S. falls … again

by Tom Johansmeyer on

Travel fell again in 2009, according to U.S. Department of Commerce data, as a weak economy put pressure on both personal and corporate travel budgets.

Only 3.6 million people arrived from other countries, marking a decline of 11 percent from June 2008 to June 2009. For the six months of the year, international arrivals were off 10 percent year-over-year. The spending situation was even worse. Guests to the United States fell 22 percent from June 2008 to June 2009, the eight month in a row in which this measure dropped. For the first half of the year, foreign visitors spent $60 billion – a 15 percent decline.

Travel from Canada took a hit in June, down 13 percent in June. Land arrivals fell 15 percent, with 11 percent fewer coming by air. For the first half of the year, Canadian visits were off 9 percent. The situation with Mexico was more favorable. Land arrivals jumped 5 percent, with air travel down 15 percent. Overall, travel from Mexico to the United States showed a modest decline of 1 percent for the month of June. For the year, however, visits from Mexico plunged 13 percent year-over-year.

Excluding Canada and Mexico, foreign visits fell for 16 of the top 20 countries in June – nine at double-digit rates. For the first two quarters of 2009, the results for the top 20 are the same, though only eight countries posted double-digit drops. Travel from Europe fell 11 percent for the first half of the year, with the United Kingdom posting a worse-than-average rate of 17 percent. This country accounts for 36 percent of all Western European arrivals, and Western Europe is responsible for close to half of all overseas visitors to the United States. Visits from Eastern Europe were up 3 percent from June 2008 to June 2009 and 1 percent for the first half of the year.

Asia, however, sustained the greatest drops. From June 2008 to June 2009, visitation from Asia fell 28 percent – driving the first-half results down 17 percent. Visits from Japan plunged 39 percent from June to June and 18 percent for the first half of the year. Japan sent 51 percent of Asian visitors to the United States in the first half of the year. Travel from South Korea and India fell 17 percent and 14 percent, respectively, with China down 4 percent for the first half of the year.

Airlines can breathe again – bottom of their recession may be in sight

by Scott Carmichael on

There is no doubt that 2009 is a year that most airlines will want to put behind them as fast as they can.

In essence, it was the perfect storm combining everything that airlines hate.

A report published back in May told the doom and gloom story about airline profits – and that not a single airline in the world would earn anything this year.

As the first very small signs of economic recovery begin to show, airlines are starting to be a tad more optimistic, and are even projecting a growth in passenger traffic for 2010. In 2009, traffic was down 2%, but 2010 could bring a 4.9% rise, which is obviously just what the airlines need to stay alive.

Total losses between all the world’s airlines is $9 billion, which really doesn’t seem like that much in this new economy. Still, it’ll be at least 6 months till the airlines will know whether the worst really is over, especially as the busy summer travel months come to an end and passenger numbers drop. The real indicators will be business travel and freight – neither of which have recovered yet.

Once everything returns back to normal, we’ll emerge battered and bruised with lower airfares, higher (and newer) fees, a couple less airlines and some airlines that have removed premium seats. None of the major carriers vanished, but most of them did cut their workforce substantially.

Tourism helping Iceland weather their perfect storm

by Scott Carmichael on

If you think the recession in the US has been dreadful, I recommend reading up on how Iceland has been coping.

This nation of just 320,000 people let its banks pull the country into a total financial disaster.

Their three national banks had debt equaling over three times the countries gross domestic product.

Their government collapsed, their currency lost a third of its value, they had to take out emergency loans with the IMF, and some of their European neighbors don’t want to let them into the EU until they repay their debt. Sucks to be Iceland.

But despite all this, the country still has its biggest asset – itself. The nation is gorgeous, and they are heading back to their roots to take full advantage of this.

Tourism is up 20% this year, and they are on target to welcome 600,000 people, almost twice their own population. Part of the driving force behind this increase is a substantial drop in the cost of visiting Iceland. The country was always well known for its insanely high prices – it was quite normal to be charged $16 for a glass of wine, or $150 for a short excursion.

Many of these prices have dropped by at least 30%, which still puts them on the high side of what you’d want to pay, but makes it affordable enough to pull in more tourists. The lower exchange rate has also lowered prices of air travel to Iceland, flights from many European countries are available for under $200, and even round trip tickets from the US to Reykjavik are available for under $550 (all in) on Icelandair.

I highly recommend visiting the site of their tourism board to see how much the nation has to offer. Your tourism krónur may not be able to pay off their debt, but you’ll certainly help them in the right direction.

Vermont cab driver offers “pay what you want” fares

by Katie Hammel on

Websites like eBay and Priceline let consumers pay what they want for everything from designer gowns to airline tickets. Now, if you live in Essex, Vermont, you can exercise that same financial control when it comes to taxi fares. Eric Hagen, a part-time cab driver has been offering “pay what you want” rides in his Recession Ride Taxi since June.

Hagen not only offers passengers the right to pay whatever they feel is fair for the ride, he also applies his unique pricing model to cold drinks available in the cab, and offers a “frequent rider” punch card. After 7 paid rides, your next trip is free.

The local Days Inn now uses Hagen to transport guests to the airport whenever possible, and Hagen says he has been so successful that he’s thinking about expanding and hiring more drivers. He says no one has undercut him, though he has been paid with items like a $10 grocery card and a music CD.

Unfortunately, I doubt this business model could become widely popular, as taxi companies are strictly regulated and drivers are required to turn on their meters for every fare. But perhaps a few intrepid private cab operators will follow Hagen’s lead and bring “pay what you want” fares to more locations around the country.

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[via CNBC]

Beating the recession on the Appalachian Trail

by Kraig Becker on

Yesterday we introduced you to one of the world’s classic treks in the from of The Appalachian Trail. Turns out you might not have needed in introduction at all, as according to NPR, many Americans are heading to the AT to beat the recession.

According to the story, a number of hikers who have lost their jobs, have decided to take advantage of their time off, and spend some extended time on the AT. The more adventurous are even electing to thru-hike the entire 2175 mile length, which generally takes anywhere from five to seven months to complete.

Some of the hikers that NPR spoke to saw the loss of their jobs as an opportunity to do something that they might not have the chance to do later on in life. Most are young, still in their 20’s, and don’t quite have the responsibilities that will come as they get older, such as families, a mortgage, or well established careers. They’re focusing on the long distance hike with the hope that when they are finished, and they return to civilization, the economy will be showing signs of recovery.

The Appalachian Trail Conservancy website estimates that it will cost somewhere between $3000-$5000 to hike the entire length of the trail, which runs from Maine to Georgia, crossing a total of 14 states in the process. Most of that is spent when hikers leave the trail behind and return to town, where they tend to splurge on hotels and restaurants. While that is a large chunk of change to spend on a single trip in the middle of an economic downturn, overall that’s a fairly inexpensive trip considering the length.

So, if you’ve found that you have a little extra time on your hands, and some severance pay burning a hole in your pocket, maybe you should consider taking on the AT or some other extended adventure. After all, the economy is going to turn around at some point, and when it does, we’re going to be expected to go back to work!