Has the Current Economic Climate Changed the Face Of Holiday Travel?

By Jack Etzel


To find out more about how the condition of the economy is affecting this year’s travel plans, we sought out a Wexford resident who has been with AAA for more than 30 years. Jim Lehman, AAA senior vice president, oversees the Automotive Services, Branch Operations, Human Resources, Information Technology, Retail Services and Travel Services departments.

North Hills Monthly Magazine: Jim, we know that December is traditionally one of the top travel months of the year. Considering the economy, how is 2008 going to finish?

Jim Lehman: We anticipate that holiday and vacation travel will be down because of the economy. What we’re seeing is what we call a ‘shorter booking window.’ Typically, the holiday traveling period is one of those times that people know they need to book well in advance in order to get the best fares and best booking opportunities. But with the economic cloud that hit us in late summer continuing, we see a lot of people who seem to be deferring this year and making their decisions about traveling at the last minute.

NHMM: The price of gasoline must figure into that downturn, right?

Lehman: That’s a big consideration. But if gasoline continues to be reasonably priced, and I can’t believe we’re saying that $2-plus is reasonably priced, there will likely be an uptick in the number of people driving locally and regionally. Some will be replacing that cruise with a getaway weekend at Nemacolin or something of that nature, or traveling what we call VFR—visiting friends and relatives. We’re going to see more people doing that, or having their own house guests coming to visit this year for the holiday season, than you would typically find.

NHMM: But if those friends or relatives live in another part of the country and would normally fly, that could still put a crimp in many a traditional visit.

Lehman: Right. Putting car travel aside, the other interesting thing we’re going to see this month compared to other years is this: people who are traveling by air, whether they’re visiting relatives or going on a cruise, going to a resort or traveling to another destination, are going to find that there are significantly fewer seats available to buy. That’s because the high crude oil prices for the first half of this year caused all of the major airlines to reduce their capacities and cut back on the number of flights that they operate. What we’re going to find this holiday season is that there will be about 3,000 fewer flights a day than there were last year. So even though the economy is soft, we’re going to find on the other side of that, airline seats could be scarce, simply because there will be so many less of them.

NHMM: If and when you get to where you’re flying, what about rental car fees?

Lehman: Rental car charges are up a little bit. In fact, both rental cars and hotel fees are up when compared to a year ago. But they are not up significantly, so I don’t think anyone would make a decision to travel or not to travel based on the price change in rental cars or hotel increases from last year to this year.

NHMM: Why aren’t more people traveling by Amtrak?

Lehman: Actually, they are. Amtrak ridership is up dramatically this year on the whole. The situation we have locally is that we have very limited Amtrak service out of Pittsburgh. You can go to Philadelphia and New York, but that’s about it. Going beyond those points you get into layovers and the timing of trains, and unfortunately they don’t always match up. From a nationwide standpoint Amtrak is alive and well, but not so much here. If you’re flying to another part of the country, you can mix it with Amtrak. For example, say you’re flying to Los Angeles, but you also want to visit San Francisco. Instead of flying, take Amtrak, save money, enjoy the view from the train, then fly back from San Francisco for the same round-trip price.

NHMM: Is there anything that comes to mind that is actually positive news, or is that asking too much?

Lehman: Yes, there’s a possibility that there may be some specials out there, and that’s especially true the closer we get to the holidays. Because travel will be a little slower than usual, you might find that a company like Hertz, for example, that operates a lot of community offices and not just airport offices, might run specials to grab hold of folks like you and me. From an economy standpoint, some folks might not want to drive their own cars, depending on where gas prices end up. Or maybe they’ve put off buying a new car this year because of what’s been going on in the financial market. They might rather rent a nice, new car from a rental agency and drive it for a few days on vacation or to visit family somewhere over the holidays, and that could be a nice way to do it.

This holiday season, however you choose to travel over the river and through the woods,
North Hills Monthly wishes you a safe and enjoyable journey!