Crisis Survey Results Tabulated
Immediately following the Sept. 11 tragedy, the National Tour Association surveyed its members about how their businesses were being impacted. Tour operators, tour suppliers and DMOs were each sent separate fax-back surveys and the results are as follows.
Tour Operators
Of the 192 tour operator members who responded to the crisis survey, 90 percent reported that they experienced cancellations after the attacks, 76 percent reported slowed bookings and 41 percent reported tour disruptions. Thirty-eight percent forfeited deposits, and 58 percent refunded deposits.
The average financial loss per tour operator was estimated at $122,761.
When asked reasons for trip cancellations, 93 percent of tour operators said their clients were canceling due to a fear of traveling, primarily air travel. Thirty-nine percent of trips were cancelled due to closure of airports and 36 percent of trips didn't happen due to specific destinations. Twenty-one percent of clients could not reach their point-of-trip origin.
Of the survey respondents, 23 percent have annual sales less than $1 million, 39 percent have sales from $1 million to $3 million, 18 percent have sales from $3 million to $5 million, 9 percent have sales from $5 million to $7 million and 11 percent have sales in excess of $7 million.
DMOs
Of the 208 DMO members who responded, 71 percent experienced a decrease in the number of leisure travelers to their areas as a result of the attacks. Seventy percent had a decrease in the number of business travelers.
Fifty-four percent of the responding DMOs had cancellations of conventions scheduled from Sept. 11 through Dec. 31, 2001. Only five percent saw cancellations of conventions scheduled in 2002.
Forty-one percent of the DMOs noticed a decrease in the number of visitor inquiries to their areas.
As a result of the Sept. 11 events, 56 percent of DMOs experienced a decrease in overall operating budgets, 40 percent saw decreases in their marketing budgets, 34 percent reported decreases in their tourism budgets and 17 percent face potential layoffs.
Of the DMOs responding to the survey, 45 percent were city, 32 percent were county, 14 percent were regional and 10 percent were state/province.
Tour Suppliers
Of the 221 tour suppliers who responded to the survey, 95 percent experienced cancellations as a result of the terrorist attacks, 62 percent had slowed bookings and 44 percent refunded deposits.
The average financial loss per supplier was estimated at $116,032.
The forms in which the financial impact occurred were:
- 96 percent client cancellations (immediate)
- 78 percent client cancellations (future)
- 30 percent forfeited deposits/payments
- 61 percent waived cancellation penalties
- 18 percent increased operating costs
- 24 percent rebookings
- 52 percent refunds
- 38 percent booking modifications
As a result of the tragedy and its financial impact, 79 percent of respondents said they had experienced a decrease in their overall operating budgets, 56 percent face potential layoffs, 60 percent have had to decrease their marketing budget and 38 percent have had to cut their tourism budget.
When asked reasons for cancellations, 83 percent said clients feared travel, 76 percent said trips were cancelled due to air transportation systems and 20 percent of trips were cancelled due to destinations.