Travel agents face fallout from terrorist attacks

"The phones are ringing off the hooks. It's a madhouse," was how one local travel agent described the in immediate impact of terrorist attacks initiated in the national air transit system.

"They're coming in not only from our clients who were stranded in other cities, but from clients who are

Agencies thrust into the daunting task of bringing clients home any way possible found little time to examine the longterm impact on their business.

"Right now, what we've been doing every day since the events is trying to get people back to their homes," said Nathan E. Devore, co-president of Rich Worldwide Travel in Harrison.

Rich Worldwide is one of the larger agencies in the area, with 250 agents in 10 offices, including locations in Danbury, Fairfield and Trumbull, Conn.

Carol A. Warren, president of The Warren Travel Group in Westport, Conn,, said travel agents proved their worth and mettle by working to bring stranded clients home.

Travel agents arranged alternate ways for people to reach their destinations either by car rentals, limousines, trains or buses. They booked alternate flights for clients whenever and wherever possible.

Most of the major airlines were issuing full refunds for tickets scheduled for the week of Sept. 11.

Cruise lines were not so compassionate, as they sent memos to agents informing them that passengers who decide not to travel based on the recent events will be in 100 percent penalty.

Future in question

The questions about future travel still remain.

"Many people are calling asking for advice. We are telling them to take a breath, take a few weeks to consider what is happening and then make a decision," said Devore.

Warren said her agency has concentrated on giving people the information they need to make their own informed choices about future travel.

Agents have been answering traveler questions about new security procedures and refund policies for various types of travel.

"Once the dust settles and commercial aviation returns to some semblance of normality, the system will be safer than it has ever been. But that does not necessarily allay their fears," said Warren.

"People are hesitant to fly, and there's definitely consideration on their part to cancel future trips," said Devore.

The travel and tourism industry pumps approximately $600 billion annually into the national economy, and the events of Sept. 11 threaten to bring an industry already struggling with economic slowdown to its knees.

Midway Airlines, which was teetering on the verge of bankruptcy before the attack, has already ceased operations. Continental Airlines followed with an announcement about 12,000 layoffs.

Canceling travel

Warren said her office has received "numerous" cancellations as people voice concerns about inevitable military action against Afghanistan and other nations suspected of supporting or harboring terrorist groups. She predicted the financial impact on travel agencies would be "severe."

"In all instances, there is no protection for commissions earned as the tour operators, cruise companies, airlines recall commissions previously paid to travel agents for these bookings," said Warren, who added that the agency will have to enforce its cancellation and reissue fees.

The Warren Travel Group has 14 agents and generates approximately $15 million in annual revenue, with 44 percent coming from leisure travel and 56 percent from business travel.

"We believe we can survive in the long term. We will have to weather the short-term effects by cutting expenses and maximizing opportunity," Warren said.

Many businesses are already cutting back their corporate travel expenses and have cancelled any immediate departures.

"Recognize that not only have we had commission cutbacks, we are also in a down economy. This was all happening before the events of Tuesday, so we've been working on plans to counteract those trends for a number of months," explained Devore.

He added that Rich will introduce a teleconferencing solution as an alternative for business travelers who want to have meetings online.