Travel Industry Woes - Is This the New Norm?
Those in the travel industry have coined the term “new normal” as what is happening in their business. Hotels, airlines, conference centers and car rental companies have experienced deep plunges to lower levels than seen in years in their revenue, and expect it will continue for years to come. They believe this will be typical.
Huge bargains can be seen in air fares and hotel costs as travel companies struggle against the plunging economy. This is ironic, as drastic reductions have also led to a reduced number or business meetings companies are holding, which is why many business people traveled in the first place.
The new term was buzzing around at the annual education conference of the Association of Corporate Travel Executives in Washington. In the last 20 years, some who attended said they couldn’t remember a time that buyers as well as suppliers were more concerned about that is being done to curtail travel. Business travelers now realize that it is necessary to get the utmost out of every business trip.
While some cities provide cheaper hotel costs and airfare, they are seldom chosen as sites for business meetings because of other aspects of the cities. Cities like Las Vegas have lower hotel rates, but offer too many other attractions, so executives are likely to avoid these cities.
The pace of the economy will of course decide whether this really is the “new normal” level of business travel, but the immediate concern is how long it will take to climb out of this deep recession. The need to reduce global warming and create renewable-energy sources is likely to lead to a whole new era of business travelers.
