The recent issue in the travel industry has to do with all of the world’s current events, like the Japanese Tsunami, the war in Iraq, the tension in Egypt, the list can go on and on. The tension created between countries causes travelers to stop traveling. When feuds exist, travelers do not like to take the chance to travel to certain countries.
An article from UPI.com points out that one of the reasons why travelers are waiting to travel is because of the recent increase in fuel prices. The recent increase in fuel prices has reflected on plane tickets, food prices and total transportation.
Two large travel corporations, Delta and Carnival are reporting the numbers. Millions of travelers are hesitant about traveling. The two companies have reported that the recent crises are affecting their business and the travel industry as a whole.
“Delta has cut back on flights to Japan's Tokyo Narita International Airport by 15 percent to 20 percent since the March 11 9-magnitude earthquake, tsunami and nuclear crisis, Ed Bastian, Delta president said Tuesday at the J.P. Morgan Aviation Transportation and Defense Conference in New York. The Tokyo run is a hub for Delta, bringing in more than $2 billion a year, and the service disruption could cost the airline as much as $400 million, Bastian said.”
The political issues in the Middle East and North Africa have caused Carnival Cruise lines to lose business. So much so that $44 million dollars has recently been lost. The cruise line had to remove all of the stops in the Middle East and North Africa.
Current world events really take a toll on every industry, but the travel industry is always affected when severe events occur. People like to keep it safe and stay close to home when they see a disaster.
Between the economy the way it is and the recent crises around the world, it is going to take a while for the travel industry to pick back up. People have to feel secure and they have to have the money to travel.
http://www.upi.com/Top_News/US/2011/03/23/Crises-hit-travel-industry-hard/UPI-99031300928394/
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