Travel Industry Hit Hard by Economic Crisis : Kathika Travel Website

As expected, the economic crisis is taking a large toll on the travel industry. For September, both major airlines and hotels are reporting steep declines in business. According to the New York Times, the seven major airlines carried 9.2% fewer passengers, domestically and internationally, in September 2008 compared to the same month in 2007, while many fares are 15-25% higher than last year.

According to Smith Travel Research, domestic hotel occupancy was down 5% over the previous September as well. As the holiday season isn’t far off, things may get worse for the travel industry before it gets better. Traditionally, the holidays are extremely busy. But with many people choosing to stay home rather than travel over the Thanksgiving and Christmas holidays, the travel slump many continue into next year.

Many four- and five-star hotels, which usually aren’t effected much by economic downturns, are also reporting a decline in business. Third-quarter profits dropped 28% for Marriott International, one of the global giants in the hotel industry. With the Presidential election a month away, the banking crisis and the recession, airlines, hotels and other travel companies are in a scramble to lure the dwindling number of business and vacation travelers.

photo credit: richard winchell