The three main travel sites–Expedia, Priceline and Travelocity–have each reported deep drops in bookings.
Bellevue, WA-based Expedia Inc. said that on Sept. 12 (the day following the hijackings) through Sept. 16, travelers booked new reservations at 35% to 40% of the rate they had for the same days the prior week. Recovery has been slow. By the 17th, bookings had edged up only 5% closer to typical levels.
Worse, these figures do not include cancellations, “which have been significant,” Expedia said in a statement.
Priceline.com likewise reported bookings on Monday at 40% below the levels that were reported the Monday before the attack. The Norwalk, CT, said recovery was led by its hotel service, followed by its rental car service.
Travelocity, with nearly identical numbers, said, “We have already seen bookings rise to more than 50% of prior levels compared to [the days immediately following the event].”
All three sites expect improved growth in travel spending in 2002. But their struggle to recover is particularly difficult because the majority of their customers are leisure travelers. Unlike business travelers, they can cancel a trip if they are afraid to fly.
Stock prices reflected this obstacle. By Monday, these companies’ stocks had each fallen more than 30%.
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