Travel

The Cruise Industry: A Troubling Spiral

Recent events in the cruise industry paint a grim picture of an industry seemingly spiraling out of control. Royal Caribbean, a major player in the market, reported a significant 40% drop in net income for the first quarter of this year, citing the Costa Concordia tragedy as a contributing factor. However, CEO Richard Fain downplayed the long-term impact of the incident, stating, “We did not expect the impact of the tragedy to be long term, and we are seeing evidence the effects are waning.”

Despite Fain’s reassurances, subsequent cruise disasters have continued to make headlines. The Costa Allegra experienced a disabling fire just a month after the Concordia incident, floating perilously close to waters frequented by pirates. These incidents understandably create unease among families considering cruise vacations. Even satirical pieces like Andy Borowitz’s “Citing Safety Concerns, **Somali Pirates Refuse to Board Cruise Ships – Fires, Capsizings Top Pirates’ Concerns” resonated with cruise enthusiasts, highlighting the growing skepticism surrounding cruise safety.

The Star Princess scandal added fuel to the fire when the cruise ship passed by a disabled fishing boat, resulting in the tragic deaths of two young men. Princess Cruises, owned by Carnival, faced severe backlash as the public learned of the cruise ship’s apparent indifference to the distressed boat and pleas for assistance from passengers.

The month began with disturbing reports of a Carnival security officer and housekeeping manager allegedly strip-searching a girl on the Carnival Sensation, including making her remove her tampon. These incidents raise serious concerns about the conduct within the industry.

While Fain was quick to point fingers at his competitor (Carnival) for Royal Caribbean’s sinking profits, he omitted mentioning the Azamara Quest’s serious engine fire that disabled the vessel. Despite declining bookings and increased operational costs, Fain still pocketed a substantial $5,900,000.

CBS suggested that the declining profits at Royal Caribbean were due to passengers being “spooked by the high profile cruise problems.” Adding to the industry’s woes, an engine room fire broke out on Royal Caribbean’s Allure of the Seas, marking the 80th cruise fire in the last 22 years. The Miami Herald, typically supportive of the cruise industry, relayed the cruise line’s PR statement that the fire was “small and quickly extinguished,” leaving many unconvinced.

Even more alarming was a story that the Miami Herald chose not to cover: a Cunard cruise line youth counselor admitting to sexually abusing 13 boys on three Cunard Cruise ships over four years. The lack of media coverage on such a shocking revelation raises questions about the industry’s accountability and the safety of passengers, especially children.

With cruise executives earning exorbitant salaries compared to their staff and numerous incidents of accidents, indifference, and even criminal activities, the cruise industry appears to be careening out of control. The focus on profit over passenger safety and the industry’s failure to address and rectify these issues raise serious concerns about its future.

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.

‘Tis the season of bustling roads and holiday cheer, and amid the festive chaos, Gigi Barnett is navigating the rush for Christmas getaways. This year, a noticeable surge in car travel has taken center stage, while plane ticket sales experience a corresponding decline. Regardless of the chosen mode of transportation, the anticipation is palpable, with millions gearing up for holiday escapes.

As the holiday travel season kicks off nationwide on Friday, airports become hubs of activity, witnessing the comings and goings of eager travelers. For some, the convenience of road travel is evident, with its flexibility and ability to avoid the constraints of a fixed schedule. However, others opt for the swiftness and comfort of air travel, despite the challenges it may pose.

The Schoenfeld twins, in deliberating their travel plans, found a road trip less appealing, opting for the ease of air travel. “In a plane, you can just get up and go straight instead of taking all those curvy roads,” expressed one of the twins. The sentiment echoes a growing trend seen this year, where more individuals are breaking away from the tradition of spending the holidays closer to home.

In the early hours of the morning, the Walker family embarked on a multi-modal journey, starting with the Bolt bus in Manhattan and transitioning to the Amtrak in Baltimore. Their destination? The enchanting realms of Disney in Orlando. Yvette Walker, an airplane passenger, shared her excitement about departing from the usual holiday routine. “I’ve never gone away for Christmas. I’ve always stayed home. That’s why I want to do it,” she remarked, capturing the essence of this year’s holiday travel spirit.

This year, the travel landscape reveals a departure from the norm, with more individuals willing to venture beyond local boundaries after spending the last few holidays in close proximity. Notably, despite a rise in gas prices, road travel continues to be the favored mode of transportation, according to AAA. Even as plane travel sees an 11 percent decrease nationally, the allure of scenic road trips holds strong.

Some travelers, like the Schoenfeld twins, acknowledge the potential monotony of road travel, with one noting, “It was boring, and I barfed twice.” Yet, for many, the sacrifice seems worthwhile, especially when it comes to being with loved ones during the holiday season.

However, the joy of holiday travel comes with its set of challenges, with the possibility of being stranded acting as a damper on the festivities. To ensure a smooth journey, experts advise checking flight statuses for timeliness and addressing any car issues before embarking on road trips. With careful planning, these holiday adventurers are set to create lasting memories, whether soaring through the skies or cruising down scenic roads.

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.

Reconsider your plans for a spring weekend in Paris if you’re contemplating a European getaway. The cost of traveling to Europe has surged dramatically, primarily due to escalating surcharges and fees that can tack on an additional $500 or more to round-trip airfare.

Rising oil prices have played a significant role, with travelers to European cities facing an additional $420 fuel surcharge, as reported by BestFares.com. In addition to this, taxes and other fees can contribute another $100 or more to the overall expenses.

Unlike domestic travel, where fuel costs are often included in the base ticket price, international travel bears a heavier burden, partly due to the extended distances involved. “Fuel is killing us,” emphasized John Lampl, a spokesperson for British Airways, attributing the spike in fuel costs to the turmoil in Libya. The situation has compelled airlines to pass on some of the fuel surcharge to avoid substantial losses.

While fuel surcharges are not a new concept, their recent exponential increase is noteworthy. Airlines began incorporating fuel surcharges on international routes five years ago during a spike in oil prices. Even though oil prices have decreased by nearly $40 per barrel from the record high in 2008, fuel surcharges have risen by more than 25%.

The financial strain on many airlines has forced them into a riskier fuel procurement strategy. Unable to afford multi-year “futures” contracts that lock in oil prices, airlines now purchase fuel on the volatile spot market, where daily fluctuations are influenced by changes in global oil futures markets.

Tom Parsons, a travel pricing expert at BestFares.com, highlighted fuel as the major airlines’ primary challenge, noting that it rapidly erodes profits. Despite a 13% increase in industry revenue last month compared to the previous year, it has not kept pace with the more than 30% rise in jet fuel costs. The Air Transport Association of America’s chief economist, John Heimlich, warned of potential losses of up to $1 billion in the first quarter of 2011 due to increased fuel costs.

Consumer impact is inevitable when airlines face financial setbacks, as costs are often transferred to passengers. Despite the surge in extra charges, passenger traffic has remained resilient, rising 1% in March, even as the average price to fly one mile increased by 12%, according to the Air Transport Association. While some marginal customers may be deterred by soaring airfares, carriers continue to retain high-yield business travelers, their primary revenue source.

United states — Since the 1970s, the volume of passenger travel by vehicles and airplanes has experienced significant growth in industrialized countries. The International Energy Agency had previously projected a continuous, albeit slower, expansion in travel until 2030 and beyond. However, a recent study conducted across eight industrialized nations reveals that passenger travel likely reached its zenith in the early 2000s, just before the notable surge in fuel prices. This development suggests a potential saturation point in the demand for travel, challenging previous expectations of escalating carbon dioxide emissions and fuel consumption.

The research, led by Lee Schipper from the University of California, Berkeley, and Adam Millard-Ball, a doctoral candidate at Stanford University, scrutinized travel patterns in the United States, the United Kingdom, Canada, Sweden, France, Germany, Japan, and Australia from 1970 to 2008. Their analysis encompassed various modes of transportation, including cars, pickup trucks, buses, planes, trains, light rail, streetcars, and subways, comparing the distance traveled per capita per year with each country’s gross domestic product per capita.

The study identified a correlation between rising prosperity and passenger travel from 1970 to 2003. After this period, passenger travel ceased its growth trajectory, even as GDP per capita continued to rise. At the peak of travel in the early 2000s, the GDP per capita was $37,000 in the US and ranged between $25,000 and $30,000 in the other seven countries. Subsequently, motorized travel in the US plateaued at around 26,000 km/year per person, 10,000 km/year per person in Japan, and between 13,000 and 17,000 km/year per person in the remaining six countries.

In recent years, the study noted a leveling off or decline in motorized travel demand in most of the countries analyzed, with a decrease in travel via private vehicles. Despite an increase in car ownership, these vehicles are being driven less frequently. The researchers attributed this travel plateau to various factors, including saturation in vehicle ownership, time constraints, high gas prices, and an aging population less inclined to commute.

A significant factor contributing to the observed travel plateau, according to the researchers, is traffic congestion. Lee Schipper emphasized that the limited road space in densely populated cities worldwide impedes further growth in car usage. While acknowledging the importance of fuel efficiency and hybrid vehicles in addressing emissions, Schipper highlighted that even zero-emission cars contribute to traffic problems.

One potential advantage of the apparent peak in travel is that if passenger travel remains stable while vehicles become more fuel-efficient, the challenge of reducing transportation emissions may be less daunting than previously anticipated. Presently, the average American car consumes one-third less fuel per mile than in 1973, despite consumer preferences for larger vehicles.

Despite the study’s findings not being conclusive, the researchers urge caution in assuming that travel demand will inevitably continue to rise. They recommend further research to refine our understanding of these trends and their implications.

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.

The U.S. State Department is telling people to be careful when they go to Mexico. In the latest warning, the department says that although many students, business folks, and tourists cross the border safely every day, there’s more violence in the country now.

The alert says the same things as the one from six months ago. It mentions that drug cartels are fighting each other and the Mexican security forces to control routes for smuggling drugs along the U.S.-Mexico border. The warning points out that most of these fights happen in northern Mexico, including places like Tijuana and Ciudad Juarez.

In the new alert, Tijuana is not listed as one of the cities where crimes like robberies, homicides, and carjackings have gone up. But it still includes northern Baja California, which is where Tijuana is.

The warning used to say, “Although the greatest increase of violence has occurred on the Mexican side of the U.S. border,” but they took that part out. Now, it just tells U.S. citizens to be careful in Mexico. It continues to talk about cities like Ciudad Juarez, Tijuana, and Nogales, where there have been shootouts during the day in shopping centers and other public places. It also warns that criminals target and bother U.S. citizens in their cars in places like Nuevo Laredo, Matamoros, and Tijuana.

Leaders from Baja California, like the Governor and Secretary of Tourism, are asking the U.S. State Department to change their warning about Tijuana. They say that the alerts don’t match what life is really like in Baja California and that it hurts the money they make from tourists. Tijuana’s Mayor also plans to ask for changes to the warning.

The State Department updates this travel alert two times a year. These alerts tell people about short-term safety conditions in a country. Different from this, travel warnings talk about long-term conditions. Mexico is one of five countries the State Department has issued travel alerts for, along with India, Niger, Malaysia, and the Philippines.