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RSI - Executive Search Firm News | Company Newsletter, July 2011

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The RSI Executive Search Firm News Center Area is designed as a resource for Employers and Candidates for the Executive Search Recruiting Industry. The RSI Executive Search Firm News Center contains Company Newsletters, Article Series Career Corner, Management Matters & Indutry Related Articles covering RSI's 18 Verticle Search Markets and RSI Client Case Studies.

 
 
 
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RSI Executive Search Firm Company Newsletter, July 2011

Issue: #31
Date: July 2011


Newsletter: What to Expect for Summer Travel 2011 PDF Version
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This Month in the RSI Newsletter
» What to Expect for Summer Travel 2011

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What to Expect for Summer Travel 2011

As the summer months are approaching, many people are taking a week or two off from work and enjoying a period of relaxation under the warm summer sun. Whether going on a cruise to the Bahamas or Alaska, taking a cross-country trip through the United States, or venturing across the Atlantic for a European adventure, taking a vacation is healthy. Getting out of the office for a couple of days and spending time with people close to you can relieve a lot of workplace stress you may be holding onto. With this being said, there are many different types of vacation destinations throughout the world and with the economy still not at it’s best, many people are still hesitant to leave the area because of high traveling costs. Because of the rise in fuel, people are still traveling slightly less than they were five or ten years ago.

For instance, Southwest Airlines has always been known as “the king of low fares.” Although this is the case, as The Wall Street Journal reports, “Southwest’s average ticket price has jumped 39% in the past five years, while the average ticket price for domestic trips for the industry was up 10%, according to the Department of Transportation.” This rise in ticket costs, of course, directly relates to the high price of fuel currently facing the country.


 

 


Continued...

Adding to the already numerous issues with the airline industry, Air Canada’s call-center and airport check-in and gate agents went on strike in mid-June. This did hurt the beginning of the summer travel season, especially for people who were planning on using Air Canada’s services. As The Wall Street Journal reported, “The main stumbling block centers on the airline’s proposal to switch to a defined-contribution plan for new employees, from the current defined-benefit plan, which provides retirees with a guaranteed payout. The company also wants to reduce pensions to new retirees by an average of 40%...”

Disruptions Abroad

Not only has the down economy affected many people’s summer travel plans over the past couple of years, but so have the various crises that surfaced across the world (even since the beginning of this year). Like The Wall Street Journal stated on traveling this summer, “Prepare yourself, and plan on packing more than your cargo shorts and money belt. Civil uprisings, earthquakes, ash clouds, terrorism warnings and violence have all disrupted travel in the past year.” In addition to these issues, Mexico’s problems with drug cartels, which are also now leaking down to Guatemala as well, are depleting these South American countries of their typically high income from tourism.

 


Continued...

The Wall Street Journal also found that owners of leading tour operators in Mexico “have seen sharp declines in American visitors since the first of the year. Starwood Hotels and Resorts Worldwide Inc. recently told analysts the drug wars had ‘decimated leisure travel’ at its Mexican resorts. Three top cruise lines say they’ve canceled service to Mazatlan, a resort hub that’s also become the site of a cartel turf war.” This is not only unfortunate for those who once planned on traveling to Mexico’s most popular vacation destinations, but it also devastates the Mexican economy, putting the country in a much worse-off condition. With threats like these on the rise, more security measures have been put into place, which can also lead to slower security at the airports or anywhere that draws a high concentration of tourism.

 

 

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