25 November 2008

Fewer travellers expected this holiday season

The holiday season will be the busiest time of the year but the travel industry is expecting a decline of holiday travellers. The current financial problem has taken its toll on some travellers that they opted to cancel travelling this season. The travel industry is expected at least 1% reduction in tourists this year. A small number which translates into millions of lost earnings for the travel industry. This reduction is just on average as there are states that experience significant reduction of tourists. For example, 5% of the regular holiday travellers by air opted to stay close to home for Southern California.
Rental companies are also reporting reduction of travellers for the holiday season. Auto companies are experiencing at least 2% reduction of rentals this year.

Because of the projected reduction of travellers this season, those who opted to travel are in for some good news. To attract customers, airlines, car rental companies and other modes of transportation are significantly reducing their fares. Hotels and resorts around the country are also reducing their rates to attract travellers from different parts of the country. Aside from lowered rates and fees, the price of gasoline is expected to reach only within the $2 per gallon range. This price is at its lowest since the price of gasoline started to increase in 2004.

Although there is a clear reduction of the number of travelers in US for the holiday season, the opportunity for savings and reduced cost for those who are traveling is clearly there. Because of the tough economic times, the travel industry is tightening its belt to attract more travelers.

1 comment:

Anonymous said...

We are seeing the same phonomenon here in Bolivia. A combination of the global economic crisis and perceived internal unrest. A very sad state of affairs for the struggling fledgling tourism industry in Bolivia.