CNNMoney.com
Companies Economy International Corrections Pre-market Trading After-hours Trading Winners/Losers/Actives Bonds Currencies Commodities World Markets Money Magazine Real Estate Taxes Jobs Ask the Expert Money 101 Autos Mutual Funds The Help Desk Loan Center Best Places to Live Ask the Expert Ultimate Guide to Retirement Retirement Calculators Best Funds Best Places to Retire Fortune Brainstorm Tech Apple 2.0 Blog Big Tech Blog Sectors and Stocks Tech Talk Resource Guide Small Business Makeovers Questions & Answers Small Business Video 100 Best Places to Launch FSB 100 Fortune Small Business Fortune 500 Brainstorm Tech Investing Management C-Suite Rankings Main Create Portfolio Edit Portfolio Create Alerts Edit Alerts

Air travel hassles cost the economy $26B - survey

Travel Industry Association says headaches at the airport caused 41 million trips to be avoided over the last 12 months.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Ben Rooney, CNNMoney.com, staff writer

Do you believe oil price manipulation is partly to blame for high gas prices?
  • Yes
  • No
  • Unsure

NEW YORK (CNNMoney.com) -- The dysfunctional air travel system is causing many Americans to avoid air travel and the economy is suffering as a result, according to a survey released Friday.

The survey, conducted by the Travel Industry Association (TIA), a non-profit trade organization, found that frustrated travelers avoided roughly 41 million trips over the last 12 months, which cost the economy more than $26 billion.

"Many travelers believe their time is not respected and it is leading them to avoid a significant number of trips," said Allan Rivlin, a partner at Peter D. Hart Research Associates, which interviewed 1,003 air travelers for the survey.

The avoided trips are having an impact on the broader economy. Over the last 12 months, there was $9.4 billion in revenue lost by airlines, $5.6 billion lost by hotels, $3.1 billion lost by restaurants and $4.2 billion lost in federal, state and local taxes, according to TIA.

"The air travel crisis has hit a tipping point, " said Roger Dow, president and CEO of TIA. "More than 100,000 travelers each day are voting with their wallets by choosing to avoid trips."

A majority of travelers said air travel safety and security has improved. But inefficient security screening, flight cancellations and delays were the top frustration among air travelers surveyed.

Overall, more than 60% of respondents think the air travel system is deteriorating. But travelers are most irritated with the air travel process, not the airlines.

TIA says the federal government can address some of travelers' top frustrations, including delays, cancellations and inefficient security screening.

"With rising fuel prices already weighing heavily on American pocketbooks, we need to find ways to encourage Americans to continue their business and leisure travel." Dow said.

To that end, TIA announced plans to hold an "emergency summit" of travel leaders in Washington on June 17, and called on each of the presidential candidates to address the issue.

The debate over how to improve the system, which has traditionally been dominated by the government and the aviation industry, is "stale and stagnant," said Geoff Freeman, a TIA senior vice president.

Freeman said the the air travel system has problems "that the government and aviation industry cannot fix, " and that the industry is suffering from a "failure of leadership."

In a statement responding to the survey, D.J. Gribbin, general counsel of the U.S. Department of Transportation, said the Bush administration has undertaken a number of steps to help ease air service problems, including congestion-relief initiatives in the New York area and increased compensation for passengers who get bumped from flights.

"The Transportation Industry Association survey helps quantify the frustrations facing today's air travelers, who bear a high cost in terms of delays and congestion," Gribbin said. To top of page

Features
  • 091020_nuclear_0154.04.jpg
    Minimum wage to $20 an hour. That's what Sally Delk hopes for with a job at the nuclear power plant.  More
  • charlotte_then_now.gi.04.jpg
    Charlotte Street was the epicenter of urban blight. No longer. Now Bimmers and boats fill driveways. More
  • excon-pic-2.04.jpg
    Ex-convicts like Gregory Headley are 'at the back of the line' in the struggle to find work.  More
  • package.gi.04.jpg
    Steve Jobs revived Apple, defying the worst economic conditions since the Great Depression. More
  • droid.04.jpg
    Consumers looking to buy electronics for holiday gifts won't have to break the bank this season. More
  • airport_luggage.ju.04.jpg
    Search firm says it will pay the bill for wireless Internet during the holidays. More
  • twitter_screenshot.04.jpg
    Twitter and LinkedIn hook up, signing agreement to let users share information across both platforms. More
Markets Last Change
Dow Jones 10,270.47 73.00 / 0.72%
Nasdaq 2,167.88 18.86 / 0.88%
S&P 500 1,093.48 6.24 / 0.57%
10-year Bond 99 19/32 Yield: 3.42%
U.S.Dollar 1 euro = $1.492 0.008
November 13, 2009 12:00 AM ET
CompanyPrice% Change
YRC Worldwide Inc 1.12 22.53%
Blockbuster Inc 0.76 -8.46%
Dollar General Corp 22.64 7.81%
JC Penney Co Inc 31.34 6.63%
Nov 13 3:53pm ET †
6 double dip warning signs The recovery from the Great Recession has likely started. But many economists are worried about falling into another downturn. Here's what has them concerned. More
9 cool tech options for your car Cars that park themselves. Driver-passenger split screen computers. Night vision. Just a few of the innovations that make driving easier, safer and more fun. More

Sponsors

© 2009 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy
Copyright © 2009 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Intraday data is at least 20-minutes delayed. All times are ET.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Morningstar, Inc..
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.