Sara Hinkson, email: [email protected]

The United States hospitality industry received a major boost in 2011, as the country set a new all-time high for international visitor arrivals. According to fresh data from the U.S. Commerce Department, over 62.3 million overseas tourists visited America last year, an increase of 4.2% compared to 2010.

This influx of foreign visitors substantially benefited the U.S. economy. Total spending by international tourists rose 13% to reach $152.4 billion for the year. The lion’s share of this spending ($115.7 billion) went towards food, hotels, retail, transportation, entertainment and other tourism-related goods and services. The remaining $36.7 billion consisted of payments to U.S. airlines for international airfare.

The travel boom was fueled by growth from both traditional and emerging markets. As usual, Canada and Mexico accounted for over half of all international arrivals in America, reflecting the ease of access for our immediate neighbors. But the U.S. also enjoyed rising visitation from overseas travelers, who are especially coveted by the tourism industry. Overseas visitors tend to take longer trips and spend more per day than those from neighboring countries. In 2011, overseas arrivals increased by 5.8% to 27.9 million, representing 44.8% of all foreign visitors to America. This share has been steadily rising over the past decade.

When looking at world regions, Western Europe remained the largest source of overseas tourists by far. Nearly 12 million Western Europeans visited the U.S. in 2011, thanks to America’s historic ties with countries like the United Kingdom, Germany, and France. There are concerns however that Europe’s ongoing economic crisis could hamper future growth from that region.

Therefore, tourism officials were encouraged by the strong performance in 2011 from several fast-growing, long-haul markets. Arrivals from South America, for example, surged 15.6%. Australia and New Zealand sent 13.5% more visitors. Eastern Europe and the Middle East also posted double-digit growth at 11% and 10.2% respectively.

Among individual countries, China registered the biggest jump with arrivals soaring 36%. Brazil and Australia also recorded impressive double-digit increases. Meanwhile, arrivals from Japan declined slightly, resulting in more modest 3.2% growth for Asia overall. But momentum continues to build from China and throughout the Asia-Pacific region.

Within the top 10 source markets, the United Kingdom was a notable laggard. The U.K. has long been America’s largest overseas tourism market. But arrivals remain well below their peak of 4.7 million in 2000. The U.K. sent just 3.8 million visitors to the U.S. in 2011 as the country struggled with economic malaise.

In summary, international tourism hit new heights in the U.S. during 2011 across metrics like visitor volume, market share, spending, and arrivals from high-potential regions. This growing global demand presents a major opportunity for America’s travel and hospitality sectors.

Do Travelers Still Avoid Flying on September 11th?

In the years immediately following the tragic events of September 11, 2001, many air travelers were extremely hesitant to fly on the anniversary date of the attacks. But over time, has this reluctance to fly on 9/11 persisted?

In 2002 and 2003, the two years after the attacks, airlines reported significantly reduced bookings and passenger loads for flights on September 11th specifically. To encourage wary travelers, some carriers dramatically slashed their flight schedules for that date and even offered free tickets to those willing to fly. On the anniversary day itself, airports across the country saw air traffic plunge by as much as 50% compared to normal levels.

However, as the years passed after 9/11, this marked hesitance to fly on the anniversary date steadily declined among American air travelers. Data from the Bureau of Transportation Statistics shows the typical seasonal dip in air travel demand during the month of September was much more pronounced in 2002 and 2003, but had returned to normal pre-9/11 levels by 2005.

There is some evidence indicating ticket prices are slightly lower for September 11th flights, likely due to marginally reduced passenger demand on the anniversary date. The travel website Expedia reports this trend of cheaper 9/11 airfares lasted until approximately 2009 or 2010 before disappearing altogether. This year in particular, Expedia says September 11th is already slated to be the most popular and busy air travel day of the entire month.

Meanwhile, an analysis conducted by the airfare comparison website FareCompare found no tangible difference in ticket prices between flights this coming Sunday on 9/11 and those departing the weekends right before and after. So last-minute deals sparked specifically by 9/11 fears seem very unlikely at this point.

The extreme hesitance to fly on the anniversary of 9/11 in the immediate years after the attacks has widely faded over the last decade. September 11th no longer deters or disrupts air travel patterns across the country like it did in those early years. The emotional trauma of the date has diminished enough that most Americans once again feel comfortable flying on 9/11.

In the midst of the holiday season, a rare white Christmas turned into a logistical challenge for many travelers across the Southern United States as airlines grappled with the need to cancel hundreds of flights due to unexpected snowfall. The situation unfolded against the backdrop of an unusual weather forecast, predicting snow in regions that don’t typically experience such wintry conditions.

The National Weather Service issued alerts for the Washington, D.C. region, anticipating a significant snowstorm with projections ranging from 6 to 10 inches beginning on Sunday. This wintry weather extended its reach to New York and Boston, where overnight temperatures were expected to drop into the 20s, accompanied by brisk wind gusts of up to 30 mph.

Airlines, such as Continental Airlines, were quick to respond to the impending weather challenges, preemptively canceling 250 flights departing from Newark Liberty International Airport near New York City. In a joint release, Continental and United Airlines acknowledged the likelihood of weather-related delays and cancellations, particularly at United’s hub at Washington Dulles International Airport and other northeastern airports. Both carriers demonstrated flexibility by waiving fees for one-time changes in affected areas, encouraging passengers to utilize online channels for making necessary adjustments.

While the South rarely experiences a white Christmas, the Carolinas saw a picturesque holiday landscape with snowfall in Asheville, N.C., extending to Raleigh and eventually reaching the coast. Winter storm warnings were issued, projecting up to six inches of snow in central North Carolina, more in the mountainous regions, and a lesser amount on the coast. South Carolina, too, braced for a transition from rain to snow after nightfall. This marked a historic event, being the first Christmas snowfall for the Carolinas since 1989 and a notable occurrence for Columbia, the first significant Christmas snow since weather records began in 1887.

Asheville faced particularly challenging conditions with heavy snowfall at a rate of about an inch per hour. Mountain roads became impassable for all but four-wheel drive vehicles, and the National Weather Service warned of the potential for up to 10 inches of snow by Sunday morning, surpassing the previous Christmas Day record set in 1969.

North Carolina’s Lieutenant Governor, Walter Dalton, declared a state of emergency as the state’s Highway Patrol reported numerous calls, primarily accidents, due to snow and icy conditions. In the South Carolina Upstate, a mix of rain and light snow in the late afternoon did not immediately pose road problems, according to Highway Patrol Lance Cpl. Bill Rhyne.

In Nashville, where travelers were anticipating smooth Christmas journeys, some were met with unexpected challenges. Flights, including those through Atlanta, were canceled, leaving passengers like Heather Bansmer and Shawn Breeding to spend much of Christmas Day in separate airports.

The impact of the rare white Christmas extended further up the Eastern Seaboard, with Delaware preparing for a substantial foot of snow. Winter storm warnings were issued in various parts of the state, with forecasts indicating accumulations of eight to twelve inches. Eastern Pennsylvania, including Philadelphia and its suburbs, braced for similar conditions, with predictions of 8 to 12 inches of snow, accompanied by strong winds of 20 to 30 mph and gusts exceeding 40 mph. Authorities strongly advised against unnecessary travel, emphasizing safety precautions.

Emergency management officials in Washington, D.C., urged residents to prepare for the approaching snowfall. The D.C. transportation department initiated pre-treatment of roads, and the Metro system placed crews on standby to handle potential snow removal from rail station entrances and platforms.

As the snowstorm traveled south from the Midwest, motorists faced challenges on Christmas Eve. Winter weather advisories were in effect from western Tennessee to the Carolinas and from West Virginia to Alabama. Delta Air Lines, a major carrier, announced plans to cancel 500 weather-related flights nationwide, with a significant impact on the Atlanta hub. Passengers were notified in advance, resulting in relatively empty terminals as many chose not to risk travel.

Despite some skepticism and chuckles from passengers in Atlanta, where snowfall began Saturday afternoon, airlines like Delta and AirTran extended flexibility by waiving ticket-change fees for affected flights. The unpredictable weather also impacted cities like Pensacola, Florida, where Jena Passut faced uncertainties about her return trip amid the snow.

The unexpected white Christmas, with its logistical challenges and travel disruptions, unfolded against the backdrop of an overall increase in holiday travel. The Air Transport Association anticipated 44.3 million people on U.S. flights between December 16 and January 5, reflecting a 3 percent increase from the previous year. However, this remained below pre-recession travel volumes. The AAA predicted a 3 percent rise in overall holiday travel, with more than 92 million people planning trips of more than 50 miles by January 2, with the majority opting for driving.

In the complex landscape of travel planning, a new report from Forrester Research suggests that the worst part of a trip may not be the journey itself but rather the booking process on the web. The study, set to be released by Forrester Research, reveals a growing dissatisfaction among consumers with the complexity of planning and booking travel online.

Henry H. Harteveldt, a Forrester travel analyst, underscores this frustration, noting that while other websites, such as retail, banking, and media, have become more user-friendly, the travel sector is lagging behind in improving the planning and booking experience.

Consumers find themselves grappling with additional fees, deciphering fine print, and navigating industry jargon, adding to the already challenging task of educating themselves about destinations, flights, and hotels. According to Mr. Harteveldt, travel companies often expect consumers to act as travel agents, raising questions about the user-friendliness of their websites.

Interestingly, the report suggests a growing inclination among consumers to explore offline travel agencies as an alternative. Mr. Harteveldt notes that more people are considering the use of good offline travel agents, signifying a shift in sentiment towards the online booking process.

Further underscoring travel-related frustrations, J. D. Power & Associates released an annual airline survey indicating a decline in customer satisfaction for the third consecutive year. Despite recent fare cuts, customer satisfaction with costs and fees has diminished, with fees for checked bags and phone booking erasing potential savings on ticket prices.

While airfares have experienced a notable drop from their peak, the impact on passenger satisfaction remains questionable. Dale Haines, senior director for the travel practice at J. D. Power, emphasizes that the reduction in fares may not resonate with passengers if accompanied by increased dissatisfaction with costs and fees.

On the hotel front, the latest J. D. Power hotel survey rates the industry more favorably, scoring 756 out of 1,000. This suggests a more consistent performance in comparison to the airline industry, which faces challenges in meeting customer expectations.

The American Customer Satisfaction Index also provides insights into the overall dissatisfaction within the travel industry, with airlines scoring 64 out of 100 and hotels receiving a slightly better score of 75.

Amidst these challenges, the U.S. Travel Association recognizes the financial impact of what they term the “frustration factor.” A survey conducted in May 2008 revealed that more than a quarter of travelers had avoided at least one trip due to frustrations with the air travel system.

Geoff Freeman, senior vice president for public affairs at the U.S. Travel Association, emphasizes the root cause of the problem as outdated air traffic infrastructure and urges Congress to finance projects to update air traffic control technology. These initiatives aim to reduce delays, but their development may take years.

As the travel industry contends with a potential prolonged passenger decline, addressing consumer frustrations becomes imperative. Analysts argue that companies are under increasing pressure to tackle these concerns, emphasizing the need to enhance the overall travel experience.

Henry H. Harteveldt raises a crucial question for the industry: “Do you really want to run a business where you’re annoying one out of three of your customers?” The concern is that this frustration could escalate, underscoring the urgency for the industry to reevaluate and improve its current practices.

In an evolving market, the industry’s main trade group, the U.S. Travel Association, has recognized the financial impact of what could be called the “frustration factor.” Its survey in May 2008 found that more than a quarter of travelers had avoided at least one trip in the previous year because of the air travel system.

“Before the recession hit, you couldn’t turn on the nightly news without more discussion about flight delays and other air travel hassles people were having,” said Geoff Freeman, senior vice president for public affairs at the association.

The trade group says the root of the problem is an outdated air traffic infrastructure, and has been pushing Congress to finance projects to update air traffic control technology to reduce delays. Some of these initiatives, which could take years to develop, are included in Federal Aviation Administration reauthorization bills under consideration.

In the meantime, despite some improvements in airline performance because of a decline in the number of people traveling, Mr. Freeman acknowledged that frustrations remain — especially among the customers the industry counts on for its survival.

“Those who travel the most frequently are those who are most frustrated with the inefficiencies in the process,” he said. “As a society, we need to be thinking, what is the cost when someone says it’s not worth it to travel?”