When an airline sneezes, does the entire travel business catch a cold? Maybe. Experts say that as airlines raise fares and cut routes, they'll squeeze other businesses who depend on a constant flow of passengers to keep the money rolling in. Tourism is one industry that's bound to be impacted. Fewer flights and higher prices will cause some travelers to forgo the big summer trip and do something closer to home (though if gas prices don't come down they might just sit home in their air conditioning). The chairman of the Caribbean Tourism Association says the airlines' moves are putting thousands of regional jobs and billions of dollars of investment at risk. Caribbean markets are especially susceptible to the cuts, he says, because struggling American Airlines handles a majority of traffic into the region. American recently announced that it's cutting its daily flights at its San Juan hub from 93 to 51 and will no longer serve Santo Domingo, Antigua, St Maarten, Aruba, or Samana from San Juan. And that in turn messes things up for the cruise lines. Ten ships use San Juan as their home port, and if getting to the island becomes too much of a hassle, vacationers may blow off the cruise altogether. Vegas might also take a huge hit. Wachovia Bank thinks the airlines will reduce service into Vegas by 12 percent, resulting in 2.4 million fewer visits each year. This in a year when over 11,000 new hotel rooms will open on the strip. There ...
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When an airline sneezes, does the entire travel business catch a cold? Maybe. Experts say that as airlines raise fares and cut routes, they'll squeeze other businesses who depend on a constant flow of passengers to keep the money rolling in. Tourism is one industry that's bound to be impacted. Fewer flights and higher prices will cause some travelers to forgo the big summer trip and do something closer to home (though if gas prices don't come down they might just sit home in their air conditioning). The chairman of the Caribbean Tourism Association says the airlines' moves are putting thousands of regional jobs and billions of dollars of investment at risk. Caribbean markets are especially susceptible to the cuts, he says, because struggling American Airlines handles a majority of traffic into the region. American recently announced that it's cutting its daily flights at its San Juan hub from 93 to 51 and will no longer serve Santo Domingo, Antigua, St Maarten, Aruba, or Samana from San Juan. And that in turn messes things up for the cruise lines. Ten ships use San Juan as their home port, and if getting to the island becomes too much of a hassle, vacationers may blow off the cruise altogether. Vegas might also take a huge hit. Wachovia Bank thinks the airlines will reduce service into Vegas by 12 percent, resulting in 2.4 million fewer visits each year. This in a year when over 11,000 new hotel rooms will open on the strip. There ...