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Internet Travel Monitor - Events & Legislation
July 30, 2008
A Call to Action on the New Energy Crisis
WASHINGTON, DC – As you all know, fuel prices have been on the rise for many months, and many Americans are feeling the squeeze on their family budgets. However, if any of you tried to make holiday travel plans lately, you know the rising cost of fuel is hitting the airlines hard also.
They've raised ticket prices and added fuel surcharges to cover their costs. Airline fuel expenses usually range from 10-15 percent of their operating costs. But today, that's more than doubled to between 30 and 50 percent of those costs.
Of course, airlines are really strapped. We've already seen small or medium-sized carriers cease operations in the last year. We're hearing the economists say we could see some legacy airlines in bankruptcy again by the end of this year; only they may not come out of bankruptcy this time.
The hospitality industry depends on a very healthy airline system that serves large and small cities alike. There is a huge ripple effect here. Skyrocketing fuel costs for the airlines affect lots of other industries, like hotels, car rental companies, taxicabs and cruise lines. And don't forget amusement parks, restaurants, national parks restaurants, shops and travel agents-and many more. Travel and tourism employ 7.5 million people in the United States alone. A lot of people could lose their jobs.
Already, we're seeing the impact in Hawaii, where two airlines have gone out of business recently. Now Hawaii has 17 percent fewer seats on airplanes arriving. For hotels, that means fewer guests. With more airline capacity cuts expected in the fall-it could even get worse.
The administration and Congress need to find a solution--and they need to do it now. The fuel and energy crisis shouldn't be used as a political bargaining chip. Marriott has signed onto a letter with many of our travel industry partners urging Congress to keep working until they can reach a compromise on energy reform. They shouldn't be going home in August while travelers in America are finding it harder and harder to go anywhere.
I don't think there is any one automatic solution here---any and everything should be on the table and considered before a final decision is made. The White House needs to step up also and press Congress to stay in Washington and work toward a bipartisan compromise. The American people -- and travelers and tourists in the United States -- need our help. Let's all let Congress know that the time to get something done on energy and fuel prices is now.
I'm Bill Marriott, and thanks for helping me keep Marriott on the Move.
Copyright 2008 Marriott International, Inc. All rights
reserved. From http://www.marriott.com. By Bill Marriott.
To view the Internet Travel Monitor Archive, click http://www.tripinfo.com/ITM/index.html.
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