Travel Industry Continues to Deal with Government Shutdown, Now Longest Ever

by Jessica Montevago  and  Daniel McCarthy
Travel Industry Continues to Deal with Government Shutdown, Now Longest Ever

Photo: Shutterstock


Wednesday marked the 26th day of a partial government shutdown, the longest in U.S. history, and it has started to have a larger and larger impact on the travel industry.

According to Administrator David P. Pekoske, the Transportation Security Administration is struggling with staff who increasingly are calling out sick because they can no longer afford to work for free. TSA is still managing wait times (on Tuesday, almost all travelers waited less than 30 minutes and 97.3 percent of passengers waited less than 15 minutes) but the absentee rate is increasing (6.1 percent compared to 37 percent one year ago) and a number of airports across the country have been forced to close checkpoints in order to consolidate the staff that are working.

On Tuesday, the Federal Aviation Administration (FAA) recalled 3,600 safety inspectors and engineers who had been furloughed because of the shutdown, “to ensure continuous operational safety of the entire national airspace," the agency said. That group won’t be getting paychecks during the shutdown, but it adds a “layer of safety” that was “missing when our inspectors weren’t working,” according to president of the Professional Aviation Safety Specialists union Mike Perrone.

Unpaid Federal air traffic controllers on Wednesday handed out brochures to the public in a number of cities across the country, trying to stir up support for reopening the government to ensure that training and weekly safety meetings, which have been on hold during the shutdown, resume.

And while National Parks across the country haven’t been strongly impacted by the shutdown, as it’s not high season for most of them, there has been reports of increasing litter and irreversible damage at some, such as downed Joshua trees at its namesake park in California.

Airlines impacted
Outside of airport security, airlines have also been impacted. 

Delta Air Lines CEO Ed Bastian said during the airline’s conference call on Tuesday that it would lose about $25 million in revenue in January because less people, mostly government contractors and employees, are traveling during the partial government shutdown. Delta also said it will likely have to delay the debut of its Airbus A220, which was scheduled for Jan. 31.

Southwest Airlines, which said it was close to launching its much-anticipated service from the West Coast to Hawaii, is still waiting on FAA certification, something that can’t come until the government reopens.

United CEO Oscar Munoz said his airline has not yet seen a “significant” impact on bookings because of the shutdown, but told CNBC this week that “the longer this goes, of course there’s going to be impact, and we do worry about that.”

ASTA issues statement
American Society of Travel Advisors (ASTA) President and CEO Zane Kerby weighed in on the shutdown on Wednesday calling on Congress and the Trump administration to work together to end the government shutdown.

“While the immediate impact to our industry is limited, the longer the shutdown lasts the greater the chance of negative economic consequences. We’re specifically concerned about issues ranging from airport security staffing to National Park and museum closures to air traffic control functions to passport and trusted traveler program enrollments to the macroeconomic consequences of 800,000 Americans going without a paycheck.

“With regard to airport security, we call on Congress and the Transportation Security Administration (TSA) to immediately halt to the diversion of a portion TSA security fees imposed or travelers to the federal government’s general fund, which has been ongoing since 2013. Derived from true ‘user fees,’ this revenue should be used to fund the TSA’s security screening operations rather than paying down the federal deficit, and thus limit the impact on the flying public.”

  0
  0
TMR Recommendations
Top Stories
Protests Shut Down Hong Kong Airport for Second Straight Day

Hundreds of flights at the world’s seventh busiest airport have been canceled and travelers are being told to postpone non-essential travel from Hong Kong.

Rome Bans Tourists from Sitting on Spanish Steps

Officials say the move is designed to help preserve the UNESCO heritage site.

Protests Shut Down Hong Kong Airport

All flights were canceled due to ongoing demonstrations by thousands of anti-government protestors.

New Zealand to Require Electronic Travel Visa Starting October 1

Americans and Canadians will be among those who have to obtain a New Zealand Electronic Travel Authority visa.

British Airways System Outage Causes Flight Cancellations at London Airports

The IT issue has affected the carrier’s flights from Heathrow, Gatwick and London City airports.

Southwest Airlines Opens Booking Access to Business Travel Managers

The new agreement will enable travel managers to book Southwest Airlines travel through their preferred channel.

News Briefs
Tip of the Day

As travel advisors, we have to be curious. Curiosity leads to impactful connections that pave our road to success. - Jenn Lee, VP of Sales and Marketing, Travel Planners International

Daily Top List

Tips for Reaching $1 Million in Sales

1. Be consistent in your marketing.

2. Create systems and follow them.

3. Use your consortium’s marketing services.

4. Listen for personal details and use them.

5. Leverage your CRM.

Source: TMR

TMR Outlooks
Advertiser's Voice
AmaWaterways - Christmas Markets