Osama vs Travel: The Post- 9/11 Effect on Travel

OSAMA TRAVEL VS. THE POST-9/11 EFFECT ON TRAVEL TOUGH TIMES FOR THE AIRLINE INDUSTRY The travel industry was the most affected by the events of 9/11-especially airlines-causing both a drop in rev- CLASS: ECONORY enue and actual travel. NET PROFIT IN BILLIONS USD $18 PROFITS 20 $14.7 15 $8.2 $8.5 Profits fell sharply post-9/11 and remained low up 10 $5 $4 $3.7 until 2006, when the -$4.1 -$5.6 -5 recession caused -10 most of the -$7.5 $-9.9 -$11.3 -$13 diminished income -15 to the industry. -20 $-16 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 GAS FUEL COST AS A PERCENTAGE OF AIRLINE EXPENSES The rising gas prices post-9/11 and due to geopolitical uncertainty in the Middle East caused many airlines to pass the additional costs on 13% 13% 14% 17% 22% 26% 28% 33% 26% 26% 30% to their passengers. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 PASSENGER YIELD PASSENGER YIELD PERCENTAGE 12 9.5% 7.8% 6% Passenger yield is the average fare paid per mile, per passenger. This is an important 6 2.4% 2.6% 2.7% 2.7% 3% 3 -3 -1.7% -6 figure to analyze because it represents -4% -9 the fare increases that -12 -15 were necessary due to added security and the -14% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 price of fuel. .... BANKRUPTCY FLASH AIRLINES FILES OHA AIRLINES EILES Bankruptcies amongst airlines became common post-9/11, causing travellers to look MAXJET AIRWAYS FILES towards other means of travel. 2001 2002 2003 2004 2005 2006 2007 SECURITY IS THE NEW SCENERY One of the biggest changes to American travel was the presence of security at every corner. CLASS: ECONORY NUMBER OF NONMIGRATORY VISAS ISSUED (MILLION) VISAS 8 7.5 6.4 6.6 6.4 It became more difficult 5.7 5.8 5.8 6 for international visitors 5.0 5.3 4.8 to visit the U.S. 4 temporarily. The number of Visas issued is still far lower than 3 pre-9/11 numbers. 1 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SCREENINGS 2002 TSA TAKES OVER RESPONSIBILTY FOR AIRPORT SECURITY. PRIOR TO THAT AIRPORT SECURITY HAD LARGELY BEEN PRIVATELY CONTRACTED. Frequent security ECONORY When this occurred there were many new changes screenings have become an inevitable reality for that airport travellers had to contend with, many travelers. TSA PERSONNEL BAGS The TSA hired 38% more Before 9/11 only about 10% of bags were electronically screened. personnel to handle new security procedures. 45% of the new personnel were hired to inspect bags while the other 55% were Since the TSA took over in 2002, almost 90% of bags are electronically PASSENGERS BAGS 2000 2002 screened. hired to inspect passengers. LINES SCREENINGS AIT Probably one of the most vexing additions to airline travel are the long lines. TSA recommends arriving at the airport two hours before departure and to expect delays up to 108 minutes to TWO HOURS 108 In 2010, new screening procedures were introduced that included MINUTES aggressive and extensive pat downs and new AIT (Advanced Imaging Technology) units. pass through security. AIR TRAVEL ALTERNATIVES A surge in alternative travel options lasted from 2001-2003 in what many researchers are calling the CLASS: "9/11 effect." ECONORY TRAVEL POST 9/11 CAR-RELATED FATALITIES CAR PLANE CARS 15% Due to this increase in There were an additional car travel, researchers found that car-related 344 fatalities in that 10% With fears of air three-month span. 5% 3.8% travel escalating many turned to their car and the open fatalities increased 2,170 during the same three-month period. This effect became TOTAL FATALITIES PRE-9/11 POST-9/11 road as a means of -5% transportation and known as the "9/11 effect." -10% travel. 13.5% increase -15% -13% ОСТ. - DEC. 2001 ОСТ. - DEC. 2001 TRAVEL POST 9/11 BUS, TRAIN, & WATER BUS TRAIN WATER 12% 10% 9% 10% Cars were not the 8% only mode of travel that saw an 6% 4% increase when the 4% airline industry was declining. 2% 0% 2001-2003 Even with the hardships faced by the travel industry post-9/11, there were some unexpected benefits and innovations. ALL BAD NEWS? CLASS: ECONORY THE KIOSK COMPETITION welcome welcome welcome In an effort to LCCS grew their collective streamline the market share from 12% in 2001 to 28% by 2006 largely due to customer's already tumultuous process of checking-in, many willingness to book away from major airlines due to costs. Now price matching and slashing are becoming crucial factors in airplane airlines turned to smart technology post-9/11-such as self-check-in kiosks. travel. Sources: BTS.gov I GEOG.Nau.edu I DHS.gov I "The Impact of Post 9/11 Airport Security Measures on the Demand for Air Travel", Blalock, Kadiyali, Simon Cornell University, 2005. I FAS.org I Forbes.com I IATA.org I TSA.gov I SEPTEMBER 11, 2001 UNITED AIRLINES FIL US AIRWAYS FILES AIR CANADA FILES DELTATAIRLINES FILES OSAMA TRAVEL VS. THE POST-9/11 EFFECT ON TRAVEL TOUGH TIMES FOR THE AIRLINE INDUSTRY The travel industry was the most affected by the events of 9/11-especially airlines-causing both a drop in rev- CLASS: ECONORY enue and actual travel. NET PROFIT IN BILLIONS USD $18 PROFITS 20 $14.7 15 $8.2 $8.5 Profits fell sharply post-9/11 and remained low up 10 $5 $4 $3.7 until 2006, when the -$4.1 -$5.6 -5 recession caused -10 most of the -$7.5 $-9.9 -$11.3 -$13 diminished income -15 to the industry. -20 $-16 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 GAS FUEL COST AS A PERCENTAGE OF AIRLINE EXPENSES The rising gas prices post-9/11 and due to geopolitical uncertainty in the Middle East caused many airlines to pass the additional costs on 13% 13% 14% 17% 22% 26% 28% 33% 26% 26% 30% to their passengers. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 PASSENGER YIELD PASSENGER YIELD PERCENTAGE 12 9.5% 7.8% 6% Passenger yield is the average fare paid per mile, per passenger. This is an important 6 2.4% 2.6% 2.7% 2.7% 3% 3 -3 -1.7% -6 figure to analyze because it represents -4% -9 the fare increases that -12 -15 were necessary due to added security and the -14% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 price of fuel. .... BANKRUPTCY FLASH AIRLINES FILES OHA AIRLINES EILES Bankruptcies amongst airlines became common post-9/11, causing travellers to look MAXJET AIRWAYS FILES towards other means of travel. 2001 2002 2003 2004 2005 2006 2007 SECURITY IS THE NEW SCENERY One of the biggest changes to American travel was the presence of security at every corner. CLASS: ECONORY NUMBER OF NONMIGRATORY VISAS ISSUED (MILLION) VISAS 8 7.5 6.4 6.6 6.4 It became more difficult 5.7 5.8 5.8 6 for international visitors 5.0 5.3 4.8 to visit the U.S. 4 temporarily. The number of Visas issued is still far lower than 3 pre-9/11 numbers. 1 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SCREENINGS 2002 TSA TAKES OVER RESPONSIBILTY FOR AIRPORT SECURITY. PRIOR TO THAT AIRPORT SECURITY HAD LARGELY BEEN PRIVATELY CONTRACTED. Frequent security ECONORY When this occurred there were many new changes screenings have become an inevitable reality for that airport travellers had to contend with, many travelers. TSA PERSONNEL BAGS The TSA hired 38% more Before 9/11 only about 10% of bags were electronically screened. personnel to handle new security procedures. 45% of the new personnel were hired to inspect bags while the other 55% were Since the TSA took over in 2002, almost 90% of bags are electronically PASSENGERS BAGS 2000 2002 screened. hired to inspect passengers. LINES SCREENINGS AIT Probably one of the most vexing additions to airline travel are the long lines. TSA recommends arriving at the airport two hours before departure and to expect delays up to 108 minutes to TWO HOURS 108 In 2010, new screening procedures were introduced that included MINUTES aggressive and extensive pat downs and new AIT (Advanced Imaging Technology) units. pass through security. AIR TRAVEL ALTERNATIVES A surge in alternative travel options lasted from 2001-2003 in what many researchers are calling the CLASS: "9/11 effect." ECONORY TRAVEL POST 9/11 CAR-RELATED FATALITIES CAR PLANE CARS 15% Due to this increase in There were an additional car travel, researchers found that car-related 344 fatalities in that 10% With fears of air three-month span. 5% 3.8% travel escalating many turned to their car and the open fatalities increased 2,170 during the same three-month period. This effect became TOTAL FATALITIES PRE-9/11 POST-9/11 road as a means of -5% transportation and known as the "9/11 effect." -10% travel. 13.5% increase -15% -13% ОСТ. - DEC. 2001 ОСТ. - DEC. 2001 TRAVEL POST 9/11 BUS, TRAIN, & WATER BUS TRAIN WATER 12% 10% 9% 10% Cars were not the 8% only mode of travel that saw an 6% 4% increase when the 4% airline industry was declining. 2% 0% 2001-2003 Even with the hardships faced by the travel industry post-9/11, there were some unexpected benefits and innovations. ALL BAD NEWS? CLASS: ECONORY THE KIOSK COMPETITION welcome welcome welcome In an effort to LCCS grew their collective streamline the market share from 12% in 2001 to 28% by 2006 largely due to customer's already tumultuous process of checking-in, many willingness to book away from major airlines due to costs. Now price matching and slashing are becoming crucial factors in airplane airlines turned to smart technology post-9/11-such as self-check-in kiosks. travel. Sources: BTS.gov I GEOG.Nau.edu I DHS.gov I "The Impact of Post 9/11 Airport Security Measures on the Demand for Air Travel", Blalock, Kadiyali, Simon Cornell University, 2005. I FAS.org I Forbes.com I IATA.org I TSA.gov I SEPTEMBER 11, 2001 UNITED AIRLINES FIL US AIRWAYS FILES AIR CANADA FILES DELTATAIRLINES FILES OSAMA TRAVEL VS. THE POST-9/11 EFFECT ON TRAVEL TOUGH TIMES FOR THE AIRLINE INDUSTRY The travel industry was the most affected by the events of 9/11-especially airlines-causing both a drop in rev- CLASS: ECONORY enue and actual travel. NET PROFIT IN BILLIONS USD $18 PROFITS 20 $14.7 15 $8.2 $8.5 Profits fell sharply post-9/11 and remained low up 10 $5 $4 $3.7 until 2006, when the -$4.1 -$5.6 -5 recession caused -10 most of the -$7.5 $-9.9 -$11.3 -$13 diminished income -15 to the industry. -20 $-16 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 GAS FUEL COST AS A PERCENTAGE OF AIRLINE EXPENSES The rising gas prices post-9/11 and due to geopolitical uncertainty in the Middle East caused many airlines to pass the additional costs on 13% 13% 14% 17% 22% 26% 28% 33% 26% 26% 30% to their passengers. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 PASSENGER YIELD PASSENGER YIELD PERCENTAGE 12 9.5% 7.8% 6% Passenger yield is the average fare paid per mile, per passenger. This is an important 6 2.4% 2.6% 2.7% 2.7% 3% 3 -3 -1.7% -6 figure to analyze because it represents -4% -9 the fare increases that -12 -15 were necessary due to added security and the -14% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 price of fuel. .... BANKRUPTCY FLASH AIRLINES FILES OHA AIRLINES EILES Bankruptcies amongst airlines became common post-9/11, causing travellers to look MAXJET AIRWAYS FILES towards other means of travel. 2001 2002 2003 2004 2005 2006 2007 SECURITY IS THE NEW SCENERY One of the biggest changes to American travel was the presence of security at every corner. CLASS: ECONORY NUMBER OF NONMIGRATORY VISAS ISSUED (MILLION) VISAS 8 7.5 6.4 6.6 6.4 It became more difficult 5.7 5.8 5.8 6 for international visitors 5.0 5.3 4.8 to visit the U.S. 4 temporarily. The number of Visas issued is still far lower than 3 pre-9/11 numbers. 1 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SCREENINGS 2002 TSA TAKES OVER RESPONSIBILTY FOR AIRPORT SECURITY. PRIOR TO THAT AIRPORT SECURITY HAD LARGELY BEEN PRIVATELY CONTRACTED. Frequent security ECONORY When this occurred there were many new changes screenings have become an inevitable reality for that airport travellers had to contend with, many travelers. TSA PERSONNEL BAGS The TSA hired 38% more Before 9/11 only about 10% of bags were electronically screened. personnel to handle new security procedures. 45% of the new personnel were hired to inspect bags while the other 55% were Since the TSA took over in 2002, almost 90% of bags are electronically PASSENGERS BAGS 2000 2002 screened. hired to inspect passengers. LINES SCREENINGS AIT Probably one of the most vexing additions to airline travel are the long lines. TSA recommends arriving at the airport two hours before departure and to expect delays up to 108 minutes to TWO HOURS 108 In 2010, new screening procedures were introduced that included MINUTES aggressive and extensive pat downs and new AIT (Advanced Imaging Technology) units. pass through security. AIR TRAVEL ALTERNATIVES A surge in alternative travel options lasted from 2001-2003 in what many researchers are calling the CLASS: "9/11 effect." ECONORY TRAVEL POST 9/11 CAR-RELATED FATALITIES CAR PLANE CARS 15% Due to this increase in There were an additional car travel, researchers found that car-related 344 fatalities in that 10% With fears of air three-month span. 5% 3.8% travel escalating many turned to their car and the open fatalities increased 2,170 during the same three-month period. This effect became TOTAL FATALITIES PRE-9/11 POST-9/11 road as a means of -5% transportation and known as the "9/11 effect." -10% travel. 13.5% increase -15% -13% ОСТ. - DEC. 2001 ОСТ. - DEC. 2001 TRAVEL POST 9/11 BUS, TRAIN, & WATER BUS TRAIN WATER 12% 10% 9% 10% Cars were not the 8% only mode of travel that saw an 6% 4% increase when the 4% airline industry was declining. 2% 0% 2001-2003 Even with the hardships faced by the travel industry post-9/11, there were some unexpected benefits and innovations. ALL BAD NEWS? CLASS: ECONORY THE KIOSK COMPETITION welcome welcome welcome In an effort to LCCS grew their collective streamline the market share from 12% in 2001 to 28% by 2006 largely due to customer's already tumultuous process of checking-in, many willingness to book away from major airlines due to costs. Now price matching and slashing are becoming crucial factors in airplane airlines turned to smart technology post-9/11-such as self-check-in kiosks. travel. Sources: BTS.gov I GEOG.Nau.edu I DHS.gov I "The Impact of Post 9/11 Airport Security Measures on the Demand for Air Travel", Blalock, Kadiyali, Simon Cornell University, 2005. I FAS.org I Forbes.com I IATA.org I TSA.gov I SEPTEMBER 11, 2001 UNITED AIRLINES FIL US AIRWAYS FILES AIR CANADA FILES DELTATAIRLINES FILES OSAMA TRAVEL VS. THE POST-9/11 EFFECT ON TRAVEL TOUGH TIMES FOR THE AIRLINE INDUSTRY The travel industry was the most affected by the events of 9/11-especially airlines-causing both a drop in rev- CLASS: ECONORY enue and actual travel. NET PROFIT IN BILLIONS USD $18 PROFITS 20 $14.7 15 $8.2 $8.5 Profits fell sharply post-9/11 and remained low up 10 $5 $4 $3.7 until 2006, when the -$4.1 -$5.6 -5 recession caused -10 most of the -$7.5 $-9.9 -$11.3 -$13 diminished income -15 to the industry. -20 $-16 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 GAS FUEL COST AS A PERCENTAGE OF AIRLINE EXPENSES The rising gas prices post-9/11 and due to geopolitical uncertainty in the Middle East caused many airlines to pass the additional costs on 13% 13% 14% 17% 22% 26% 28% 33% 26% 26% 30% to their passengers. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 PASSENGER YIELD PASSENGER YIELD PERCENTAGE 12 9.5% 7.8% 6% Passenger yield is the average fare paid per mile, per passenger. This is an important 6 2.4% 2.6% 2.7% 2.7% 3% 3 -3 -1.7% -6 figure to analyze because it represents -4% -9 the fare increases that -12 -15 were necessary due to added security and the -14% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 price of fuel. .... BANKRUPTCY FLASH AIRLINES FILES OHA AIRLINES EILES Bankruptcies amongst airlines became common post-9/11, causing travellers to look MAXJET AIRWAYS FILES towards other means of travel. 2001 2002 2003 2004 2005 2006 2007 SECURITY IS THE NEW SCENERY One of the biggest changes to American travel was the presence of security at every corner. CLASS: ECONORY NUMBER OF NONMIGRATORY VISAS ISSUED (MILLION) VISAS 8 7.5 6.4 6.6 6.4 It became more difficult 5.7 5.8 5.8 6 for international visitors 5.0 5.3 4.8 to visit the U.S. 4 temporarily. The number of Visas issued is still far lower than 3 pre-9/11 numbers. 1 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SCREENINGS 2002 TSA TAKES OVER RESPONSIBILTY FOR AIRPORT SECURITY. PRIOR TO THAT AIRPORT SECURITY HAD LARGELY BEEN PRIVATELY CONTRACTED. Frequent security ECONORY When this occurred there were many new changes screenings have become an inevitable reality for that airport travellers had to contend with, many travelers. TSA PERSONNEL BAGS The TSA hired 38% more Before 9/11 only about 10% of bags were electronically screened. personnel to handle new security procedures. 45% of the new personnel were hired to inspect bags while the other 55% were Since the TSA took over in 2002, almost 90% of bags are electronically PASSENGERS BAGS 2000 2002 screened. hired to inspect passengers. LINES SCREENINGS AIT Probably one of the most vexing additions to airline travel are the long lines. TSA recommends arriving at the airport two hours before departure and to expect delays up to 108 minutes to TWO HOURS 108 In 2010, new screening procedures were introduced that included MINUTES aggressive and extensive pat downs and new AIT (Advanced Imaging Technology) units. pass through security. AIR TRAVEL ALTERNATIVES A surge in alternative travel options lasted from 2001-2003 in what many researchers are calling the CLASS: "9/11 effect." ECONORY TRAVEL POST 9/11 CAR-RELATED FATALITIES CAR PLANE CARS 15% Due to this increase in There were an additional car travel, researchers found that car-related 344 fatalities in that 10% With fears of air three-month span. 5% 3.8% travel escalating many turned to their car and the open fatalities increased 2,170 during the same three-month period. This effect became TOTAL FATALITIES PRE-9/11 POST-9/11 road as a means of -5% transportation and known as the "9/11 effect." -10% travel. 13.5% increase -15% -13% ОСТ. - DEC. 2001 ОСТ. - DEC. 2001 TRAVEL POST 9/11 BUS, TRAIN, & WATER BUS TRAIN WATER 12% 10% 9% 10% Cars were not the 8% only mode of travel that saw an 6% 4% increase when the 4% airline industry was declining. 2% 0% 2001-2003 Even with the hardships faced by the travel industry post-9/11, there were some unexpected benefits and innovations. ALL BAD NEWS? CLASS: ECONORY THE KIOSK COMPETITION welcome welcome welcome In an effort to LCCS grew their collective streamline the market share from 12% in 2001 to 28% by 2006 largely due to customer's already tumultuous process of checking-in, many willingness to book away from major airlines due to costs. Now price matching and slashing are becoming crucial factors in airplane airlines turned to smart technology post-9/11-such as self-check-in kiosks. travel. Sources: BTS.gov I GEOG.Nau.edu I DHS.gov I "The Impact of Post 9/11 Airport Security Measures on the Demand for Air Travel", Blalock, Kadiyali, Simon Cornell University, 2005. I FAS.org I Forbes.com I IATA.org I TSA.gov I SEPTEMBER 11, 2001 UNITED AIRLINES FIL US AIRWAYS FILES AIR CANADA FILES DELTATAIRLINES FILES OSAMA TRAVEL VS. THE POST-9/11 EFFECT ON TRAVEL TOUGH TIMES FOR THE AIRLINE INDUSTRY The travel industry was the most affected by the events of 9/11-especially airlines-causing both a drop in rev- CLASS: ECONORY enue and actual travel. NET PROFIT IN BILLIONS USD $18 PROFITS 20 $14.7 15 $8.2 $8.5 Profits fell sharply post-9/11 and remained low up 10 $5 $4 $3.7 until 2006, when the -$4.1 -$5.6 -5 recession caused -10 most of the -$7.5 $-9.9 -$11.3 -$13 diminished income -15 to the industry. -20 $-16 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 GAS FUEL COST AS A PERCENTAGE OF AIRLINE EXPENSES The rising gas prices post-9/11 and due to geopolitical uncertainty in the Middle East caused many airlines to pass the additional costs on 13% 13% 14% 17% 22% 26% 28% 33% 26% 26% 30% to their passengers. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 PASSENGER YIELD PASSENGER YIELD PERCENTAGE 12 9.5% 7.8% 6% Passenger yield is the average fare paid per mile, per passenger. This is an important 6 2.4% 2.6% 2.7% 2.7% 3% 3 -3 -1.7% -6 figure to analyze because it represents -4% -9 the fare increases that -12 -15 were necessary due to added security and the -14% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 price of fuel. .... BANKRUPTCY FLASH AIRLINES FILES OHA AIRLINES EILES Bankruptcies amongst airlines became common post-9/11, causing travellers to look MAXJET AIRWAYS FILES towards other means of travel. 2001 2002 2003 2004 2005 2006 2007 SECURITY IS THE NEW SCENERY One of the biggest changes to American travel was the presence of security at every corner. CLASS: ECONORY NUMBER OF NONMIGRATORY VISAS ISSUED (MILLION) VISAS 8 7.5 6.4 6.6 6.4 It became more difficult 5.7 5.8 5.8 6 for international visitors 5.0 5.3 4.8 to visit the U.S. 4 temporarily. The number of Visas issued is still far lower than 3 pre-9/11 numbers. 1 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SCREENINGS 2002 TSA TAKES OVER RESPONSIBILTY FOR AIRPORT SECURITY. PRIOR TO THAT AIRPORT SECURITY HAD LARGELY BEEN PRIVATELY CONTRACTED. Frequent security ECONORY When this occurred there were many new changes screenings have become an inevitable reality for that airport travellers had to contend with, many travelers. TSA PERSONNEL BAGS The TSA hired 38% more Before 9/11 only about 10% of bags were electronically screened. personnel to handle new security procedures. 45% of the new personnel were hired to inspect bags while the other 55% were Since the TSA took over in 2002, almost 90% of bags are electronically PASSENGERS BAGS 2000 2002 screened. hired to inspect passengers. LINES SCREENINGS AIT Probably one of the most vexing additions to airline travel are the long lines. TSA recommends arriving at the airport two hours before departure and to expect delays up to 108 minutes to TWO HOURS 108 In 2010, new screening procedures were introduced that included MINUTES aggressive and extensive pat downs and new AIT (Advanced Imaging Technology) units. pass through security. AIR TRAVEL ALTERNATIVES A surge in alternative travel options lasted from 2001-2003 in what many researchers are calling the CLASS: "9/11 effect." ECONORY TRAVEL POST 9/11 CAR-RELATED FATALITIES CAR PLANE CARS 15% Due to this increase in There were an additional car travel, researchers found that car-related 344 fatalities in that 10% With fears of air three-month span. 5% 3.8% travel escalating many turned to their car and the open fatalities increased 2,170 during the same three-month period. This effect became TOTAL FATALITIES PRE-9/11 POST-9/11 road as a means of -5% transportation and known as the "9/11 effect." -10% travel. 13.5% increase -15% -13% ОСТ. - DEC. 2001 ОСТ. - DEC. 2001 TRAVEL POST 9/11 BUS, TRAIN, & WATER BUS TRAIN WATER 12% 10% 9% 10% Cars were not the 8% only mode of travel that saw an 6% 4% increase when the 4% airline industry was declining. 2% 0% 2001-2003 Even with the hardships faced by the travel industry post-9/11, there were some unexpected benefits and innovations. ALL BAD NEWS? CLASS: ECONORY THE KIOSK COMPETITION welcome welcome welcome In an effort to LCCS grew their collective streamline the market share from 12% in 2001 to 28% by 2006 largely due to customer's already tumultuous process of checking-in, many willingness to book away from major airlines due to costs. Now price matching and slashing are becoming crucial factors in airplane airlines turned to smart technology post-9/11-such as self-check-in kiosks. travel. Sources: BTS.gov I GEOG.Nau.edu I DHS.gov I "The Impact of Post 9/11 Airport Security Measures on the Demand for Air Travel", Blalock, Kadiyali, Simon Cornell University, 2005. I FAS.org I Forbes.com I IATA.org I TSA.gov I SEPTEMBER 11, 2001 UNITED AIRLINES FIL US AIRWAYS FILES AIR CANADA FILES DELTATAIRLINES FILES OSAMA TRAVEL VS. THE POST-9/11 EFFECT ON TRAVEL TOUGH TIMES FOR THE AIRLINE INDUSTRY The travel industry was the most affected by the events of 9/11-especially airlines-causing both a drop in rev- CLASS: ECONORY enue and actual travel. NET PROFIT IN BILLIONS USD $18 PROFITS 20 $14.7 15 $8.2 $8.5 Profits fell sharply post-9/11 and remained low up 10 $5 $4 $3.7 until 2006, when the -$4.1 -$5.6 -5 recession caused -10 most of the -$7.5 $-9.9 -$11.3 -$13 diminished income -15 to the industry. -20 $-16 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 GAS FUEL COST AS A PERCENTAGE OF AIRLINE EXPENSES The rising gas prices post-9/11 and due to geopolitical uncertainty in the Middle East caused many airlines to pass the additional costs on 13% 13% 14% 17% 22% 26% 28% 33% 26% 26% 30% to their passengers. 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 PASSENGER YIELD PASSENGER YIELD PERCENTAGE 12 9.5% 7.8% 6% Passenger yield is the average fare paid per mile, per passenger. This is an important 6 2.4% 2.6% 2.7% 2.7% 3% 3 -3 -1.7% -6 figure to analyze because it represents -4% -9 the fare increases that -12 -15 were necessary due to added security and the -14% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 price of fuel. .... BANKRUPTCY FLASH AIRLINES FILES OHA AIRLINES EILES Bankruptcies amongst airlines became common post-9/11, causing travellers to look MAXJET AIRWAYS FILES towards other means of travel. 2001 2002 2003 2004 2005 2006 2007 SECURITY IS THE NEW SCENERY One of the biggest changes to American travel was the presence of security at every corner. CLASS: ECONORY NUMBER OF NONMIGRATORY VISAS ISSUED (MILLION) VISAS 8 7.5 6.4 6.6 6.4 It became more difficult 5.7 5.8 5.8 6 for international visitors 5.0 5.3 4.8 to visit the U.S. 4 temporarily. The number of Visas issued is still far lower than 3 pre-9/11 numbers. 1 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SCREENINGS 2002 TSA TAKES OVER RESPONSIBILTY FOR AIRPORT SECURITY. PRIOR TO THAT AIRPORT SECURITY HAD LARGELY BEEN PRIVATELY CONTRACTED. Frequent security ECONORY When this occurred there were many new changes screenings have become an inevitable reality for that airport travellers had to contend with, many travelers. TSA PERSONNEL BAGS The TSA hired 38% more Before 9/11 only about 10% of bags were electronically screened. personnel to handle new security procedures. 45% of the new personnel were hired to inspect bags while the other 55% were Since the TSA took over in 2002, almost 90% of bags are electronically PASSENGERS BAGS 2000 2002 screened. hired to inspect passengers. LINES SCREENINGS AIT Probably one of the most vexing additions to airline travel are the long lines. TSA recommends arriving at the airport two hours before departure and to expect delays up to 108 minutes to TWO HOURS 108 In 2010, new screening procedures were introduced that included MINUTES aggressive and extensive pat downs and new AIT (Advanced Imaging Technology) units. pass through security. AIR TRAVEL ALTERNATIVES A surge in alternative travel options lasted from 2001-2003 in what many researchers are calling the CLASS: "9/11 effect." ECONORY TRAVEL POST 9/11 CAR-RELATED FATALITIES CAR PLANE CARS 15% Due to this increase in There were an additional car travel, researchers found that car-related 344 fatalities in that 10% With fears of air three-month span. 5% 3.8% travel escalating many turned to their car and the open fatalities increased 2,170 during the same three-month period. This effect became TOTAL FATALITIES PRE-9/11 POST-9/11 road as a means of -5% transportation and known as the "9/11 effect." -10% travel. 13.5% increase -15% -13% ОСТ. - DEC. 2001 ОСТ. - DEC. 2001 TRAVEL POST 9/11 BUS, TRAIN, & WATER BUS TRAIN WATER 12% 10% 9% 10% Cars were not the 8% only mode of travel that saw an 6% 4% increase when the 4% airline industry was declining. 2% 0% 2001-2003 Even with the hardships faced by the travel industry post-9/11, there were some unexpected benefits and innovations. ALL BAD NEWS? CLASS: ECONORY THE KIOSK COMPETITION welcome welcome welcome In an effort to LCCS grew their collective streamline the market share from 12% in 2001 to 28% by 2006 largely due to customer's already tumultuous process of checking-in, many willingness to book away from major airlines due to costs. Now price matching and slashing are becoming crucial factors in airplane airlines turned to smart technology post-9/11-such as self-check-in kiosks. travel. Sources: BTS.gov I GEOG.Nau.edu I DHS.gov I "The Impact of Post 9/11 Airport Security Measures on the Demand for Air Travel", Blalock, Kadiyali, Simon Cornell University, 2005. I FAS.org I Forbes.com I IATA.org I TSA.gov I SEPTEMBER 11, 2001 UNITED AIRLINES FIL US AIRWAYS FILES AIR CANADA FILES DELTATAIRLINES FILES