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It’s not easy to stay positive in today’s economic climate. Financial institutions are failing. The U.S. government’s proposed bailout failed. The stock market took a dive.
The big question for group travel planners is how this will affect their business.
“We just don’t know what is going to happen until the financial rescue plan is approved by the U.S. Congress and then on how quickly we see improvements in the credit markets and other areas,” said National Tour Association President Lisa Simon, CTP. “It truly is a mixed bag, as so much of it depends on the types of markets you work with and the destinations you serve.”
“One of two things will happen,” said Peter Pantuso, president and CEO of the American Bus Association. “People will pull back on travel or will look at more affordable options, looking at domestic options instead of international, which can work in our favor.”
Fortunately, group travel planners report having a good year so far, and fall numbers look decent as well. So, in the immediate future, the group travel market will hold up during the financial turmoil and make adjustments to plans in the future.
“There is no specific pattern that I’ve seen so far. We’ll have a better sense in a month or so,” said Pantuso. “Everybody will be tight a bit. They won’t want to make rash decisions.”
Simon added, “We know that traditionally bank travelers are more conservative and so if that is the only market you work with, you may be hurting right now. But luxury and high-end travelers are still traveling. The gay and lesbian market is resilient as well. That is why NTA is pushing its members to diversify their tour product. You just can’t put all your eggs in one basket in these tough economic times.”