PRESS RELEASE

For Immediate Release

Survey Shows Traveler Confidence Returning; Concerns Over The Economy’s Health Is Primary Reason Consumers Are Avoiding Travel

	Business travel recovering more slowly than leisure, with nearly one in five frequent business travelers making fewer trips
	Overwhelming majority of travelers think airport security is better now

WASHINGTON, D.C. - August 22, 2002 -- Nearly one year after the September 11 terrorist attacks, price-cutting by the travel industry and enhanced security measures at airports have stimulated demand and largely restored the confidence of U.S. travelers. But an industry rebound remains uncertain, with leisure and business travelers both citing the economy as the prime reason they are traveling less, according to a new nationwide survey released today that was commissioned by travel website Orbitz for the Travel Business Roundtable (TBR) in conjunction with NYC & Company and the Washington Convention and Tourism Corporation (WCTC).

The August 14-15 survey results of interviews with 700 respondents follow two surveys administered by TBR in October 2001 that touched on many of the same issues. 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 six months.

The new data shows that while nearly 90 percent of Americans are now traveling more or at about the same level as before September 11, frequent business travelers, who make up the majority of the industry’s revenue because of their tendency to purchase higher-priced airfares or rooms, continue to make fewer trips.

"Though lower prices and increased security measures have helped get Americans traveling again, the ongoing economic uncertainty in the U.S. is a barrier to the industry’s recovery," said Jonathan Tisch, chairman of TBR and chairman and CEO of Loews Hotels. "With consumers seeing their savings significantly decreased or wiped out by the recent performance of the stock market or their 401k retirement plans, they are cutting back on discretionary spending, including travel. Vacations are being shortened or canceled altogether. Likewise, businesses continue to cut back on non-essential travel, keeping their travel costs down as well."

Nearly one-half of all travelers surveyed cited economic factors as the reason they would avoid taking a trip. Thirty-two percent of all travelers surveyed said budget considerations would be the prime reason keeping them from traveling more than 100 miles from home or that traveling had become too expensive, and 12 percent said that they are not traveling due to economic uncertainty.

Not coincidentally, the reluctance of Americans to travel could hinder the speed of an economic recovery in the U.S. As the nation’s second largest employer, employing more than 18 million people, and the third largest retail industry, travel and tourism was a $582 billion industry in 2000, generating nearly $100 billion in federal, state and local tax revenues.

Forty-six percent of business travelers were either much more or somewhat more reluctant to travel in the month following the events of September 11, and today 39 percent of business travelers remain much more or somewhat more reluctant to travel - an improvement of only seven percentage points. On the other hand, 27 percent of leisure travelers today are much more or somewhat more reluctant to travel - an improvement of 18 percentage points from last October.

According to Jeff Katz, Orbitz president and CEO, luring the frequent business traveler back to the air and the road is also critical to the travel and tourism industry’s recovery.

"There are very promising signs that indicate Americans are nearly back to their normal levels of travel," said Katz. "The resiliency that is being demonstrated by leisure travelers since September 11 is especially encouraging. Discounts and great travel deals are still available, and continue to help drive the recovery of the leisure travel market."

Katz continued, "However, there is a clear lag in the resumption of business travel patterns. Among frequent business travelers, 17 percent say that they are traveling less now - five percent more than the population at large. Though a small percentage of the traveling population, these frequent business travelers contribute to nearly half of the industry’s overall revenue."

The Orbitz-sponsored survey for the TBR also found:

	While 89 percent of all travelers think airport security is better now than it was before September 11, 2001, three in ten (30 percent) believe that the current level of security measures imposed so far are "insufficient" and more can be done - an increase of five percentage points from last October.
	Business travelers’ and leisure travelers’ opinions differ on the new security measures. Among frequent business travelers, only 60 percent think that the new measures are sufficient, versus 74 percent of frequent leisure travelers.
	Nearly four out of every five (79 percent) frequent business travelers have received heightened security screening (i.e. a "pat down" or removal of shoes).
	Just over one in five (21 percent) frequent business travelers find security screening procedures very consistent from airport to airport.
	More than one in ten travelers (11 percent) have canceled their flights or fly less frequently because of the hassles of airport security.
	Thirty-one percent of female business travelers who have reduced their level of flying because of the hassles of security have done so because of the personal "intrusion from security," compared to 12 percent overall. By contrast, of male business travelers who have reduced their level of travel, only 4% cited the intrusion of security as the reason.

According to Tisch, while commercial airline travel is perceived to be very safe, the "hassle-factor" associated with heightened airport security, a lack of confidence in the sufficiency of the airport security measures and inconsistencies in the screening process from one airport to another confirm a recent trend by travelers to make trips by car instead of airplane. The percentage of those who view automobiles as the safest place to be has risen from 69 percent last October to 76 percent.

Among the survey’s other results:

	Of those who say they are traveling more now than a year ago, 45 percent say they are more inclined to book their travel online, either through the airline directly or via an independent travel site such as Orbitz (versus 20 percent who say they are less inclined).
	Of those who purchase travel online, 21 percent use an independent website versus 17 percent who book directly via the airline website.
	Twenty-nine percent of travelers are less inclined to take an international trip since the events of September 11. Almost one in ten (nine percent) have delayed, postponed or canceled an international trip. The number is even higher among male business travelers, of whom 16 percent have canceled an international trip.
	Nearly one in four (23 percent) travelers who are less inclined to take an international trip say they would rather travel in the U.S. and support the domestic economy.
	Travelers are more inclined to visit Washington, D.C. or New York City now than they were a year ago. Seventy-six percent of travelers surveyed said they would not avoid a trip to Washington, D.C. and 75 percent said they would not avoid a trip to New York City, an improvement over last year of seven percentage points and four percentage points respectively.
	Fifty-eight percent of travelers are closely watching the debate over the future World Trade Center Memorial and 75 percent plan to visit it.
	A majority (68 percent) of frequent business travelers say the travel industry response to the events of September 11 was "better than expected," while nearly one in four say the industry response was "worse than expected." Comparatively, 74 percent of all travelers said the industry responded "better than expected."

"One year later, the tragic events of September 11 continue to impact the travel and tourism industry," said Tisch. "The industry has responded, and we are seeing promising signs that reaffirm the progress being made. Clearly, more needs to be done, and the industry and government should continue to work collaboratively to find solutions that will get more Americans traveling, and spur more international travelers to visit the U.S."

The survey was commissioned by Orbitz and conducted on behalf of the Travel Business Roundtable in conjunction with NYC & Company and the Washington Convention and Tourism Corporation by Penn, Schoen, Berland and Associates on August 14 and 15. The survey had a sample size of 700 respondents (margin of error +/- 3.8 percent). The sample was broken in equivalent groups of business and leisure travelers. This is the third wave of the survey that seeks to track changing traveler attitudes in the aftermath of the September 11 terrorist attacks. The first and second waves were conducted in October 2001.

About TBR:

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.

About Orbitz:

Orbitz is a leading online travel company offering consumers the largest selection of low airfares, as well as deals on lodging, car rentals, cruises, vacation packages and other travel. Orbitz' state-of the-art flight search engine searches more than 455 airlines - up to 2 billion flight and fare options - offering an unbiased and comprehensive list of airfares and schedules. Founded by the world's leading airlines - American (AMR), Continental (CAL), Delta (DAL), Northwest (NWAC) and United (UAL) airlines - Orbitz also offers consumers a large collection of discounted web-only air fares. For more information, visit www.orbitz.com.

About WCTC:

The Washington, D.C. Convention and Tourism Corporation serves as the lead organization to successfully manage and market Washington, DC as a premier global convention, tourism and special events destination. Through successful development and execution of centralized and cohesive sales and marketing strategies, the WCTC generates economic benefits to the citizens of the District of Columbia, the convention and tourism industry, stakeholders and the Washington Convention Center Authority, with a special emphasis on the arts, cultural and historical communities.

The private, non-profit corporation has a membership of nearly 1,000 businesses and organizations that support the travel and tourism industry in our nation’s capital. The city’s tourism industry generates more than $10 billion in direct spending each year and sustains 260,000 jobs.

The Washington, DC Convention and Tourism Corporation was established by business and community leaders in April 2001 by merging the Washington, DC Convention and Visitors Association and the DC Committee to Promote Washington.

About NYC & Company:

NYC & Company, the city's official tourism marketing agency, is a private, non-profit membership organization dedicated to building New York City's economy and positive image through tourism and convention development, major events and the marketing of the city on a worldwide basis.

Check out NYC & Company’s new web site at www.nycvisit.com.

###

Editors notes:

	Complete survey data can be found on TBR’s website (www.tbr.org) or on www.orbitz.com/presentation.
	A recording of the media teleconference that announced the survey’s results will be available at approximately 2:00PM EDT and can be accessed until August 24. To listen to the recording, callers should dial 1-800-677-6200 (international callers dial 1-913-385-6780) and when prompted enter PIN #2376.

Media Contacts:

Matt Triaca / Jeffrey Stewart / Debra Kelman
202-530-4690 / 212-521-2816 / 212-794-DKPR (3577)

back to top

ABOUT TBR | CHAIRMAN'S CORNER | LEGISLATIVE ACTION CENTER |
NEWSROOM | MEMBERS