NEW YORK -- As the U.S. launched its first strikes against Iraq,
the business of selling travel was transformed overnight into a
business of reassurance, adjustment, patience and hope. Because the
war had been preceded by rumors of war, agents and suppliers had
taken many steps to prepare for the impact of hostilities.
Several airlines quickly and quietly reduced service on overseas
routes. Airlines, as well as cruise lines, resorts, hotels and tour
operators, also produced a steady stream of bulletins easing their
cancellation and rebooking policies.
Governments and destination marketing organizations sought to
reassure travelers that their facilities were as welcoming and safe
as ever.
Because the first shots brought no shock or surprise, agents and
suppliers were not stunned into silence, as they were after the
terrorist attacks of 9/11. The travel industry, fragmented as it
is, knew immediately what it had to do: cope with the present and
look to the future, hoping for the end of war, and a new
beginning.
Being prepared
When war became a near-certainty after President Bush's
ultimatum to Saddam Hussein, David Mendal, president of Forest
Travel in North Miami, Fla., knew what to expect, and what to
do.
In the aftermath of 9/11, the $25 million agency created a
number of packages for "local escape, local family holidays, local
adventure," Mendal said.
The idea was to sell the programs in good times and use them as
a backup lure to retain customers in any future crisis.
In addition to Florida attractions, the products include things
like adventure trips to Central America, "a region not affected by
the Middle East."
Sure enough, the president's speech triggered calls from 18
clients who were to travel in the next couple of weeks, all wanting
to cancel or change itineraries. By 11 a.m., Mendal said, the
agency had rebooked all 18 to local spas and resorts.
Europe was the major loser, he said, adding that 14 of those
callers represented lost Europe trips.
After the first bombs fell the night of March 19, Mendal said he
was greeted Thursday morning by 24 more callers -- but unlike the
day before, they all wanted to postpone rather than cancel.
Why the change in customer attitudes? Mendal's best guess is the
airport hassle Agents tend to business as war spooks clients factor
had something to do with it, and that clients just didn't want to
travel during a Code Orange condition.
Places to go
As for the fear of terrorism, Mendal said his philosophy is the
same: Redirecting business is a lot better than losing it. "It's
all about shifting the business because we can't close our doors.
There are always places to go."
The theme applies to corporate travel, as well, he said, noting
that his agency moved one client's meeting from Europe to the
U.S.
In addition to being prepared with the right kind of products,
some agents focused on getting their financial houses in order.
Peter Carideo, president of CRC Travel in Chicago, a $6 million
leisure agency, said "From a financial standpoint, I have been
very, very conservative" about what the agency buys, making sure
the agency has as much insurance as practical and that "the credit
line is there if we need it."
If things are too slow, he said, staff will start taking
vacation days -- or get a little time to learn the newly installed
ClientBase Plus database manager program.
Managing fear
Carideo said he was more panicked after 9/11. Now, he said, "I'm
managing my fear better." He said he also is reassured by the
experience of the 1991 war and even 9/11. "People continued to plan
future travel. ... The business always comes back."
Wendy Goodenow, owner and president HNL Travel, Honolulu, an $11
million agency, has a similar attitude: "We've been waiting for
this."
Her agency "cut back on a few things," laid off one staffer and
merged its two locations, but Goodenow said she wants to keep her
staff together, "to be in place after the war."
Joe Slisinger, owner of Travel Associates, a small leisure
agency in Warren, Mich., said he is eager to see the war "out of
the way," adding there will be nothing to Europe "until this
settles."
But he also believes a significant terrorist event would be
"devastating" to that recovery. "People would cancel in droves -- a
bigger problem than war in Iraq," he said, recalling that "Sept. 11
was 20 times worse than the 1991 war."
Counseling mode
Vacation.com president Dick Knodt, reached while traveling in
Florida, said he is adopting ASTA's advice to its members by urging
agents to focus on "the counseling mode," making clients
comfortable and reminding them "there are safe destinations."
He also observed, "I'm in Orlando, and it's not that crowded
down here."
Also in response to last week's events:
• The State Department issued travel warnings urging Americans
to avoid Turkey and Pakistan. Travel warnings are now in place for
virtually every country in the Middle East.
• ASTA enhanced its Web site, www.astanet.com, with business tips and
security-related data.
• The Travel Industry Association established an information
clearinghouse at www.tia.org and pledged to conduct a survey to assess
the travel plans of consumers.
• The National Tour Association circulated crisis management
information to members and updated its Web site, www.ntaonline.com,
with links to information on national parks, the status of airports
and attractions, etc.
• The International Council of Cruise Lines is working closely
with the Homeland Security Department on new security initiatives
for ports and passenger vessels, such as increased inspections of
baggage, more patrols and ship escorts, and armed marshals on some
vessels entering and departing U.S ports -- possibly including
cruise ships.
• Hawaii tourism officials set up a command center at the Hawaii
Convention Center to enable the state to communicate with the
industry and with visitors.
Officials also are busy working with wholesalers to create
post-war promotions and packages, said Hawaii Tourism Authority
marketing director Frank Haas.
• The American Hotel and Lodging Association added a Homeland
Security section to its Web site, www.ahla.com, including lodging security tips
and guidelines for crisis communications.
Nadine Godwin, Jerry Limone, Michael Milligan, Katherine
Nichols, Jorge Sidron and Rebecca Tobin contributed to this
report.