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PRESS RELEASE

For Immediate Release

TBR SURVEY SHOWS TRAVELER CONFIDENCE STILL SHAKY; TRAVEL INDUSTRY REBOUND NOT LIKELY TO OCCUR SOON

Follow-up poll finds that one in five travelers still uncertain about their holiday plans

WASHINGTON, D.C. - October 31, 2001 -- More than a month of steep price-cutting by the travel industry and the efforts of public officials to encourage travel and tourism have begun making inroads with the public, but a core group of travelers still remains reluctant and does not see their business or leisure travel patterns resuming to previous levels for six months or more, according to a new nationwide survey by the Travel Business Roundtable (TBR).

The October 24-25 survey results released today are in follow-up to a previous TBR nationwide poll conducted the first week of October. The opinion research was done with a random sample of Americans identified as travelers who had taken at least one airline trip or spent one night in a hotel during the previous 6 months. While the new data shows some positive signs that Americans are trying to resume their previous travel and entertainment patterns, there is evidence that suggests that the travel downturn will remain.

Seventeen percent of all travelers say they are traveling less than before September 11, and that number is unchanged from the earlier TBR survey. Not coincidently, most airlines have reduced capacity by 15-20 percent and hotel occupancy rates are still about 20 percent below normal, suggesting that the survey’s findings are bearing out in the marketplace. According to a recent report by the World Travel and Tourism Council, a 10 percent drop in demand for travel in the U.S. results in the elimination of 1.1 million travel and tourism jobs.

The TBR survey’s findings also include:

15 percent of travelers say their travel patterns are either “well below normal” or “just beginning to get back to normal.”
One in five (19 percent) of travelers still have not decided about travel plans for Thanksgiving or Christmas.
More than one in 10 (12 percent) of respondents say they will discourage friends or family from traveling during the upcoming holidays.
13 percent of leisure travelers have either cancelled, put on hold or are still uncertain about whether they will take an upcoming scheduled trip.
33 percent say that their entertainment, restaurant and shopping activity is not back to normal.
30 percent of all travelers still say that new aviation security measures are insufficient.

“Despite the best efforts by the travel and tourism industry and government officials to get people traveling again, it is clear that it will be some time before business and leisure travelers resume their normal habits,” said Jonathan Tisch, chairman of TBR and chairman and CEO of Loews Hotels. “We view the economic stimulus package now under consideration by the Senate as an opportunity to supplement the ongoing efforts of private industry and help millions of Americans whose jobs have been impacted by September 11.”

TBR is urging the U.S. Senate to adopt a package of tax relief and other initiatives designed to stimulate economic growth, help workers, and give businesses and individuals more incentives to travel. Along those lines, 67 percent of leisure travelers support tax credits or deductions to encourage travel and tourism and 61 percent of all travelers support such legislation. A recent economic stimulus package passed by the U.S. House of Representatives does little to encourage travel.

“The devastation that our economy has experienced since September 11 has been felt across the country, but the travel and tourism industry was most immediately and directly impacted by these horrible events, cascading from large corporations down to small businesses, including motel operators, shop and restaurant owners, travel agents and taxi drivers,” said Tisch. “The travel industry has responded to the downturn with across-the-board discounts on air, train and bus fares, hotel rooms, cruise packages, and restaurant prices. While discounting has helped spur spending, bargain prices and decreased travel will result in traveler expenditures falling by more than $76.7 billion over the next 16 months, and direct tax receipts generated by the industry to local and state governments will fall by billions too.”

Among the TBR survey’s other results:

More business and leisure trips are being taken, with a 50 percent increase from the previous survey in the number of travelers who said they had taken an overnight trip over the past two weeks.
Only one out of 20 trips is being cancelled now, versus the earlier poll that found that one of out every 10 trips was being cancelled.
25 percent more business trips involve air travel than the October 2-3 poll results.
Travel purchase patterns may be changing dramatically. Traditionally, travel agents have booked 80 percent of travel, but the survey found that only 29 percent of travelers say they most often book through a travel agent, while, 28 percent say they book via the telephone directly with the airline, train or hotel, 21 percent use the travel companies’ internet websites, and 18 percent use online travel agencies.
The communications task for government and industry remains: More than four-in-ten (43%) would like “to hear a lot more” from the travel industry about the steps it is taking to enhance travel safety and nearly five in ten (49%) would like “to hear a lot more from government about those issues. On the flip side, only 44% have heard enough from the travel industry and 39% have heard enough from government to deem that travel is safe.
News media coverage of aviation security issues contributes to traveler anxiety; almost half of all respondents (47 percent) strongly agreed with the statement “news media coverage of safety lapses only highlights the deficiencies and gives terrorists a roadmap to bypass the security system,” while only 22 percent strongly agreed that media scrutiny “helps to make the aviation system safer.”

The TBR survey was conducted by Penn, Schoen, Berland and Associates and Burson-Marsteller on October 24 and 25. The survey had a sample size of 415 respondents (margin-of-error +/- 4.9 percent). The sample was broken in equivalent groups of business and leisure travelers. This is the second wave of the survey that seeks to track changing traveler attitudes in the aftermath of the terrorist attacks. The first wave, conducted three weeks ago on October 2 and 3, had a sample size of 800 respondents. The Travel Business Roundtable is a CEO-based organization representing all sectors of the travel and tourism industry, including major airlines, hotels and lodging, restaurants, retail outlets, travel management companies, car rental companies, financial services institutions and others. The roster of members reflects the interdependence of all sectors of the travel and tourism industry and demonstrates the need to work collaboratively, especially during these challenging times.

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Editor’s Note: Additional survey data can be found on TBR’s website at www.tbr.org

Media Contacts:
Matt Triaca - 202/530-4690 Jeffery Stewart - 212/521-2816
Debra Kelman - 212-794-DKPR (3577)

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