Travel Industry Will Hold To The Skies For 2009

Travel associations in the United States have predicted that the travel industry will continue to face a steady worldwide decline because of global recession as the year 2009 ushers itself in. The slide, according to these travel associations, will be more noticeable in the business travel sector. On the other hand, leisure travel will show some decline but will be more stable.

In its annual global business travel forecast released late in 2008, the American Express predicted that the cost of flying domestic for business purposes within North America is bound to increase by 1.2% at approximately $1,002. The cost of international flights for business trips will likewise go up by 3.5% at around $3,452.

The reasons given by the American Express mostly involve the current credit crisis felt across the United States, which has triggered an economic slump across the world. In order to survive the crunch, companies in all sectors are reining in business travel expenses to cut on costs.

Companies surveyed by the American Express have also conveyed concern over the add-on fees for checking in bags and other service being implemented by airlines. These add-on fees are meant to help airlines cope with operational losses from high fuel costs.

Instead of sending employees on business trips, more and more companies are relying on communications technology such as VoIP and video conferencing to bridge the gap with their clients and partners across the world. Meetings that require business travel are also being scaled down.

In as much as the viability of business travel will be a challenge for the travel industry in 2009, the Travel Industry Association has predicted that leisure travel will continue to sail steadily throughout the year. The decline in the leisure travel sector will not be as marked as it will be for the business travel sector.

The Travel Industry Association has revealed in its annual travel forecast that while the individuals they have surveyed are not exactly willing to give up their leisure travel spending, they have become more conscientious about it.

In the survey made by the association, 76% of their respondents are going to book travel packages that include not just airline tickets but also hotel accommodations and car rentals. The same survey indicated that 58% of the respondents will do comparison shopping among airline carriers, hotels and other services geared for leisure travel. Another 67% stated that they will cut back on the spending that they usually incur while they are on a holiday. The end goal is to generate savings without sacrificing enjoyment from traveling on vacation.

It is not expected, however, for the woes of the travel industry to continue throughout the year. The cost of jet fuel, which has greatly affected the operations of various airlines all over the world, is anticipated to go down within the year.

Also, the election of Barack Obama as the new president of the United States is seen with optimism among observers in the travel industry. Obama has already spoken out on the need to regulate outsourcing maintenance work on aircraft in the United States. There are also talks of streamlining the Department of Homeland Security to improve services and security in airports.

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