Karen Fawcett

In these volatile economic days, there are more than a few variables impacting travel. People are considering alternatives and business travel may be placed on hold. Forget the idea of flying in the front of the plane.

This economic climate forces most people to reevaluate their spending. Looking at your retirement plan takes on an entirely different meaning. People who once thought they had substantial equity in their houses may suffer from a new reality shock as they contemplate their futures.

The Federal Reserve is doing its best to instill confidence. Central banks are infusing funds into the monetary system with the intent of creating liquidity in the financial markets. During the past week, investors were whipsawed watching the dramatic swings of Wall Street and financial markets world-wide.

Travel is certainly faced with an uncertain state of mind.

For most travelers — business or leisure — trips to that Caribbean resort or upscale city hotel might be postponed. However, where there’s a will, there’s a way. Different options such as shorter, all-inclusive trips, off-the-beaten-track explorations and alternative lodging solutions still exist. Travelers simply need to explore them and decide whether or not travel is a priority in their lives.

Independent consultant for Acclivus PDP Toby Marie Walker says, “As a consumer, we may all NEED vacations.” Short jaunts of 3-5 days that open up a new world can do the trick. A low-priced all-inclusive trip fills that bill.

Liz (Elizabeth) Morris, a railroad and car hire professional based in the Denver area, agrees with Toby. “With all of the stress of the economy and everything in general, we’ll all need a vacation! My main frustration with airfares is that deals are harder to unearth. When you do, the airlines ding you with extra charges for checked baggage, etc.”

Liz opts for all-inclusive trips, especially when headed overseas. But she also likes unusual, lesser-visited destinations. They often offer a lot of culture and variety. As a result, many of Liz’s trips have been self-planned and she travels without advance hotel reservations. “I tour the countryside and stop at local places that offer real atmosphere.”

Some travelers relish the serendipity. Others find it unnerving. You have to gage your comfort level and factor in the time of year plus the destination. You may find yourself sleeping at a youth hostel. But there’s nothing wrong with that.

Ral Purina, Manager at Offsite Onsite Group based in the Houston, Texas area suggests travel agencies be realistic about the global financial crisis. He says, “Business and leisure travel have been dramatically reduced and further constriction is inevitable. Trillions of dollars in stock market and home valuation losses have occurred worldwide. This is impacting virtually everyone. Countless companies and individuals are struggling to avoid default and bankruptcy. Travel budgets are now drastically reduced, or for many, nonexistent.”

Travel agencies, like all businesses, need to quickly adjust to this changing environment. Cut your expenses now, so you can survive until the economy rebounds.

As far as promoting travel, fewer and less expensive trips are the clear theme for 2009. For leisure travel, think 3-day Disney packages, 1-day round-trips to the beach and Indian Reservation casinos. For business, think video conferencing and more email.

Purina notes when speaking with travel agents, “… this isn’t what you want to hear. But it is the same for everyone, regardless of what business they are in. Cut expenses now and live to fight another day.”

Not all travel professionals are singing the same doom and gloom song. Many swear it’s a question of being more creative and looking for alternative solutions. You’ll hear from them. Any and all suggestions from readers are welcome. Please post away.

In the meantime, I’m hoping for miracles in the global markets. May they become less volatile and act less like roller coasters.

Karen Fawcett is president of BonjourParis

How are business travelers coping with sky-high fares and air travel hassles? They aren’t.

Many are opting for alternatives rather than face-to-face meetings.

Michael Roth, owner and consultant at Horizons Aloft, says he travels during the beginning of a project and for sales meetings. During the non-critical phases, he uses conference calls and video-conferencing. Roth believes this is more efficient in increasing productivity and reducing costs.

Isobel Warren, a writer and professional speaker, admits she’s definitely feeling the pinch. “As an independent business person, I count every penny and these days and I’m counting them twice,” she says. “Because of rising costs and diminished service, I am traveling less and conducting more research by phone or via the Internet.”

Warren feels there’s no substitute for face-to-face encounters. As a result, she feels that decreased travel may diminish her effectiveness.

Other executives rely on conferencing services such as Go to Meeting as much as possible.

Still, many feel the lack of personal contact will have a negative impact on business. People like to shake hands before doling out contracts.

Marc Casto, owner of Casto Travel, says that as a member of the travel community, he can vouch that many companies are significantly reducing non-essential travel. With the faltering economy and higher travel costs, plus reduced frequency of flights, this comes as no surprise.

Casto says many of his clients are looking for ways to trim 25 percent or more off of their business travel costs since it’s a means of boosting profit. “When you take into consideration that airfares are expected to increase by another 10 to 15 percent by the end of the year — on top of at least that much of an increase year over year — the only way to achieve that type of cost savings is through a significant reduction in the number of flights booked.”

One barometer is the announcements within the hotel industry. Over the last few years there has been a surge of new rooms added into the US market with the expectation that the travel boom of the last two years would continue. Now, a number of the properties are revising their forecasts and are looking increasingly downwards.

How are you compensating and what accommodations are you or is your company making? Clearly in this economic environment, people are going to need to be increasingly creative.

Karen Fawcett is president of Bonjour Paris