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May 14, 2008

Tipping Point Check: Signs of Weakness in Demand

Filed under: Fuel Surcharges, Passengers — Rick Seaney @ 4:15 pm

Interesting news from Travelport this week — the company that owns international global distribution systems (GDS) which drive corporate travel bookings — and part owner of Orbitz.

According to Travelport executives, they are seeing “softness” in both consumer and corporate travel – this according to first-quarter earnings reports.

Segments booked through the company’s Galileo GDS were down 3 percent globally, “with the Americas region creating the greatest drag in the business, registering a 7 percent slip from the same period in 2007.”

Another sign, it seems, that we’re getting closer and closer to “push back” — the fabled tipping point where increasing fuel surcharges lead American travelers to say, “Enough! Let’s stay home.”
« My ABCNews.com Column: Airline/Oil Disaster - Wow   Air Traffic was Up Earlier This Year, But…for How Long? »

1 Comment »

  1. For us personally, and with the entire travel industry, it is a time of increased buyer discretion. We don’t hestitate to travel, but we look much harder for the deals. The difference in price between the deals and the no deals, has escalated dramatically.

    Here in Hawaii, demand remains very high, and all signs are for that to continue at least until early or mid-August. After that, things could really shake up again, with new deals, changing players, and different offerings.

    Aloha, Jeff
    http://beatofhawaii.com

    Comment by beatofhawaii.com — May 14, 2008 @ 9:40 pm

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