• International Insurance Blog

  • Tuesday, August 22, 2017

It is an open secret that tourism industry is experiencing major crisis today just as many other spheres of economy. International travel demand suffered a strong slowdown beginning in June 2008, with growth in international tourism arrivals worldwide falling to 2% during the summer months. The effect of this slowdown is being felt by the airlines and hotel industry strongly. Many of them have adopted measures to sail through these tough times.

Airlines have been shaving spoon sizes and dumping in-flight magazines in a bid to make planes less heavy and save fuel during the credit crunch, reveals the International Air Transport Association. According to Paul Steele, director of the environment at IATA, US’ Northwest Airlines axed spoons from its cutlery pack if the in-flight meal does not need one. Similarly, JAL of Japan reduced a fraction of a centimeter from its entire cutlery to take some weight off the plane. “When you are talking about a jumbo jet with 400 people on board, being served two to three meals, this can save a few kilos,” The Telegraph quoted Steele as saying. “You work out how much fuel that consumes over a year, and you can be talking about a considerable amount of money,” he added.

As far as the hotel industry is concerned, since October 2008, 25 hotels in Norway have gone bankrupt. And the reason as can be expected is the number of foreign visitors to the hotel has fallen by more than 40% so far in 2009; the drop is especially large for American visitors. And the way adopted by the hotel industry to beat the recession blues is by offering free night promos.

Will these strategies adopted by the tourism industry prove to be penny wise, pound foolish, only time will tell.

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