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Travel industry battered by world crises says CNN
The earthquake and tsunami in Japan, coupled with fears of radiation and a potential nuclear meltdown in power plants there, has significantly reduced demand for travel to that country. It has gotten so bad that Delta Airlines has announced that they are cutting capacity to Tokyo's Narita International Airport by as much as 20% through May, and suspending flights to another regional airport altogether.
Similarly, travel to Northern Africa and the Middle East has also dropped significantly as political upheaval has spread across that region. It hasn't just been the airlines that have felt the pinch however, as disruption in travel to Bahrain, Tunisia, and most importantly Egypt, has put a dent in the cruise industry too. According to Carnival Cruise Lines more than 280 of their cruises have seen a change in their itineraries thanks to issues in the Middle East. They estimate a loss of $44 million so far, and the region hasn't stabilized just yet.
The Middle East unrest has brought another unwelcome side effect to the travel industry as well. Any threat to the distribution of oil means an increase in prices, which is always passed on to the consumer. Soaring oil prices has led to an increase in the cost of airfares, and the dreaded term "fuel surcharge" has reared its ugly head once again too. With the busy summer travel season still ahead, it seems unlikely that oil prices will be coming down again anytime soon.
2011 is certainly off to a turbulent start. If the first few months are any indication, we could be in for one very memorable, but chaotic, year. Has any of the recent global calamities caused you to change your plans? Are you now going elsewhere because of recent events? Worse yet, have you canceled your plans to travel this year altogether?