Perhaps delegates were drawing inspiration from the setting of the recent
Perhaps delegates were drawing inspiration from the setting of the recent
But the delegates were clearly seeing optimistic signs about a rebound in the incentive travel industry. The multi-day educational event drew an audience from more than three-dozen countries as they explored recovery strategies for an industry hard hit by the events of September 11 and the global economic fallout.
Using interactive technology, SITE was able to poll the global audience to gauge the economic impact, both short and long term, on the incentive business. The body blow the travel and tourism industry suffered in the weeks immediately following September 11 is the result of two separate, yet almost simultaneous events. One-third of the SITE audience (33.7 percent) cited fear of flying as the primary reason for the fourth quarter business losses they encountered. An equal number (30.1%) cited economic reasons as the rationale given for program cancellations or postponements. US delegates reported higher number of flying concerns (39 percent) than their global colleagues (30 percent) when it came to why business was lost.
Eighty percent of the audience reported fourth quarter business losses.
Nearly forty percent (38.8) of the delegates suffered losses between 15-49 percent. One third (31.2) reported shortfalls in business of less than 15 percent. Fourteen percent of delegates suffered losses of more than half their fourth quarter business. A lucky few (16.2 percent) reported that business was actually up in the fourth quarter.
What dollar value was lost? One quarter of the audience (27.6 percent) reported losses of up to US$100,000, while another quarter reported losses of up to US$250,000. Just over 10 percent of the delegates watched losses of US$1 million move from their fourth quarter revenue columns.
Will lost business come back? Nearly six in 10 delegates report that business is already being re-booked for 2002/3. Of those seeing business come back, nearly one-third of delegates (28.9 percent) report that most of the business has been rebooked, while 30.3 percent that some of it has been rescheduled in 2002/3. Delegates report that just over one-third of customers (34.2 percent) are still weighing the rebooking decision. US business is being re-booked in higher numbers – 48 percent of US delegates have seen most of their lost business re-booked versus 22 percent from other countries.
When will the industry return to pre-September 11 levels? One third of the audience anticipates a return by the second quarter of 2002, while another thirty percent anticipates a full return by the third quarter. One-quarter of the audience believes it will be 2003 before the see pre-September business levels.
US delegates led the way in predicting a second quarter return. The light at the end of the tunnel view is confirmed by staffing decisions. Nearly three-quarters of delegates report that staffing will stay the same or increase in 2002. US delegates were twice as likely to be hiring in 2002 as their international counterparts.
Travel will continue to be a high motivator of corporate employees – this group is sure of that. And, they are equally confident of the long-term future of their business. Good news indeed.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
