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Personal Finance > Smart Spending > Travel
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Taking SARS in stride?
Air travelers don't appear too concerned with new disease, at least when traveling domestically.
April 7, 2003: 5:00 PM EDT

NEW YORK (CNN/Money) - Sixty-three percent of Americans say they're not worried that they or a member of their family will be exposed to Severe Acute Respiratory Syndrome (SARS), according to a CNN/USA Today/Gallup poll conducted on April 5-6.

Only 10 percent of those polled said they are very worried. And 27 percent say they are somewhat worried.

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The disease has been linked to travel to mainland China, Hong Kong, Singapore and Hanoi in Vietnam. The Centers for Disease Control and the World Health Organization have warned travelers not to go to those areas unless they really have to.

Not surprisingly, air travel to Asia has dropped off significantly. On Monday Continental even announced it is suspending nonstop flights between Newark and Hong Kong for nearly two months because of plunging demand attributed to SARS health fears.

There is some indication travel to Canada may be hurt. (After Asia, the most significant number of probable SARs cases and deaths from the disease up until today were reported in Canada.)

David Stempler, president of the Air Travelers Association, has heard from his members of "a lot of" cancellations to Canadian destinations, especially Toronto. Tom Parsons, founder of BestFares.com said bookings to Canada have been down for months, but he does not tie that fact directly to the outbreak of SARS, which began to get serious public attention in mid-March.

Regarding domestic travel within the United States, however, it still appears to be business as usual. Airlines and booking agents say they have no indication that travelers are canceling flights for domestic travel or are not making reservations because of concerns over contracting SARS.

There was a general decline in air travel during March, but the airlines and some booking agents have attributed that decline mostly to concerns over the war in Iraq. But those concerns appear to have subsided somewhat, according to Parsons.

"Domestically, I'm not sure travel has been affected" by SARS, he said. "We've actually seen a major pick-up" in the last week or so.

What, me worry?

He attributed the pick-up to reduced anxiety about war-related risks. Prior to the war, those anxieties were heightened when the federal government raised the national terror alert and airlines announced more flexible ticket-changing policies in anticipation of military action. "Everyone was putting out negative deterrents," he said.

Now, given that fuel costs haven't skyrocketed as predicted, another terrorist attack has not occurred, and the U.S. military appears to be making progress in Baghdad, "everyone's feeling better," Parsons said.

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What's more, among the SARS cases reported in the United States -- at last count there were 141, according to WHO -- no deaths have been reported. Moreover the CDC notes on its Web site that "there is no indication of community spread at this time" in the United States.

In terms of airline fares, there are still sales, Parsons said, but they're not "wild sales." In fact, he's begun to see some upward creep in domestic fares, particularly among low-cost niche airlines such as AirTrans, Southwest and American TransAir.

That's in large part because, over the past several months, airlines have reduced the number of their flights, thereby reducing the number of seats they have to sell. The higher the demand for those seats, the more they can dictate price, Parsons said.

That trend is likely to continue as peak vacation season (June through August) approaches. His advice for travelers who are planning a summer holiday: book early.

(For a look at how SARS concerns may affect the U.S. economy, click here.)  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.