Labor Day caps dismal summer for travel and tourism

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The travel and tourism industry is limping in to the final weekend of summer, with layoffs looming for the fall and desperate hopes a winter vaccine might help recoup what by then will be almost a year's worth of losses.

Labor Day weekend caps off a dismal summer that started with relatively high hopes that Congress would provide more COVID-19 relief and states would fully reopen their economies. Instead, the original end of summer is likely to be no much better than it was over Memorial Day and Independence Day weekends amid coronavirus spikes in new places.

“The state of the industry’s still extremely depressed, and we still quite definitely are advocating generally for the significant dependence on Congress to do something quickly on a meaningful relief package,” said Tori Emerson Barnes, executive vice president of public affairs and policy at the U.S. Travel Association.

Only 16 percent of Americans said they planned to visit over Labor Day, according to an American Hotel & Lodging Association (AHLA) survey conducted by Morning Consult. For upcoming holidays, the outlook is not much better. Only twenty five percent expect to travel for Thanksgiving and 29 percent for Christmas.

Public health officials are reminding people to take the required precautions whilst travelling or socializing, particularly over holiday weekends. 

Anthony Fauci, the nation’s top infectious disease expert, said this week that Midwestern states, where coronavirus cases are rising, should be vigilant through the Labor Day holiday. He urged everyone to check out distancing guidelines, wear masks and steer clear of large crowds. 

Cases rose considerably following Memorial Day and Independence Day after many states quickly reopened their economies without meeting metrics set by health officials to guarantee the virus was coming in order.

Airlines are among the travel companies predicting a rebound in just a matter of years, not months. Airlines for America (A4A), which represents major U.S. carriers, said it doesn’t foresee time for pre-pandemic levels until 2024. Passenger volumes are currently down 70 percent from this time last year.

A4A is calling for more the help of the federal government, and President Trump has indicated he really wants to help the sector beyond the lifeline it received early on in the pandemic.
 
However, a weeks-long stalemate in negotiations over the next coronavirus spending package means no immediate relief is around the corner.

Airlines are prohibited from firing or laying off any employees until Oct. 1 under the conditions of the relief funding they received in March. But once October hits, United Airlines plans to cut 16,370 employees. That announcement on Wednesday follows similar plans from American Airlines, which last month said it expects to ax 19,000 jobs.

The travel downturn isn’t just hitting airlines. Amtrak recently announced it will slash more than 2,000 employees from its payrolls, with expectations that ridership will go back to only 50 percent of pre-pandemic levels in fiscal 2021. Just like the airlines, it’s contacting Congress to supply financial relief, to the tune of $1.5 billion.

Simon Hudson, a professor at the University of South Carolina College of Hospitality, Retail, and Sports Management, said things are going to worsen before they get better.

“I don’t think we’ve seen the worst,” Hudson said. “We’ve had cushioning due to government subsidies. Once that money stops, we’re likely to see a lot of businesses start laying off, closing up restaurants, airlines, because they’re hemorrhaging money at this time.”

Only 14 percent of resort rooms are booked for this Labor Day weekend, compared with 41 percent this past year, the AHLA survey found.

Consumer confidence hasn't returned for traveling and likely won’t until there is a vaccine or expanded rapid testing, Hudson noted. 

“We’ve seen a whole lot of domestic tourism, but a whole lot of this is drive-tourism. People are still apprehensive about getting on an airplane, and I believe they will for time to come,” he said.

In an effort to attract more customers, airlines are going beyond mandating masks and increasing sanitation measures. Delta Air Lines, American Airlines and United Airlines this week all moved to permanently eradicate change service fees for domestic travel. 

Airports are also struggling to create ends meet with low foot traffic because they wait for more rest from Congress. The Department of Transportation announced this week it'll award more than $1.2 billion in airport safety and infrastructure grants to over 400 airports to improve the industry. 

“These grants underscore the necessity for Congress to approve another major relief package to supply meaningful long-term financial support to airports that are running out of money to fund procedures and service debt,” said Annie Russo, senior vice president of government and political affairs at Airports Council International-North America (ACI-NA), an organization that advocates for the airport industry.

The travel and tourism industry is attempting to remain optimistic that persons are ready to start out moving again or at least start purchasing tickets for future trips.

The U.S. Travel Association discovered that 52 percent of U.S. consumers are prepared to plan their next trip but predicted that those travel plans will be by car rather than by plane.

“The beaches, national parks, whatever has that outdoor option definitely is seeing an uptick, and we’re seeing some areas that are doing quite nicely with regard compared to that,” Barnes said. 

The association also found that 63 percent of travelers said that with the right assurances they might take an overnight trip next three months.

“People are extremely sensitive right now. Health is important, but if they don’t perceive it to be safe, regardless if it really is, they’re not likely to travel,” Hudson said. 
Source: https://thehill.com

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