Flight Cancellations from Latest Storm Cost Economy $95 Million
March 5, 2014 8:01am
New Research Tracks Economic Impact of Cancellations, Delays
WASHINGTON (March 5, 2014) - Economists at the U.S. Travel Association have concluded research finding that the cancellation of one U.S. domestic flight for weather-related reasons costs $31,600 in passengers' lost economic activity.
With major media outlets citing data from FlightAware.com that approximately 3,000 flights had been cancelled due to the latest winter weather, that translates to a total economic loss of $94.8 million.
And that number only accounts for passengers on those flights and the spending they would otherwise inject into the economy; because of discrepancies in how each carrier tabulates its costs, there is no industry-wide data available for the airline sector.
"We are now able to quantify what all travelers have long known intuitively: there are real dollar costs associated with flight cancellations and delays caused by the weather," said U.S. Travel President and CEO Roger Dow. "Obviously, Mother Nature cannot be controlled. But there are things we can do to mitigate the cost to the economy-improvements to our infrastructure that would make weather events far less disruptive to our air travel system.
"This data is just the latest indication that, as a country, we need to prioritize our infrastructure to make sure our economy can withstand these shocks to the system. More investments are, quite simply, essential."
Dow said modernizing airports and air traffic control equipment could help reduce flight delays and cancellations during inclement weather. For example, NextGen technology allows pilots and air traffic controllers to land planes using GPS navigation, rather than radar and plain-sight, and can reduce flight delays and cancellations caused by poor visibility. Additional runways, aprons and deicing facilities can increase the number of airplanes that can land and take off in poor weather conditions, including snowstorms.
U.S. Travel's research also determined that every hour a flight is merely delayed, as opposed to cancelled outright, costs the U.S. economy an average of $3,300 in passenger-related economic activity.
All told, the direct economic impact of flight cancellations and delays cost the economy $3.5 billion in 2013.
The direct-impact figure includes the costs of canceled trips, passenger time lost, missed connections and missed travel activities. The estimates are based on a combination of airline traffic and on-time data; air traveler behavior and characteristics data recently collected through U.S. Travel surveys; the monthly TravelsAmerica survey conducted by research firm TNS; and U.S. Travel's proprietary economic models.
In weeks ahead U.S. Travel aims to incorporate the new research into an online calculator to determine the economic impact of delays and cancellations that are reported by the media during weather events and other disruptions.
Tags: u.s. travel association
Contact: Cathy Keefe
(O) 202-408-2183, (C) 703-899-7031
Contact: Jamie Morris
(O) 202-218-3621, (C) 530-545-9274
Visit U.S. Coalition Launches Amid Drop in U.S. Share of Global Travel
U.S. Travel Association President and CEO Roger Dow Says Addressing Falling Inbound Travel Needs to Become a National Priority
Travel Trends Index: Domestic Leisure Travel Withstands Harvey and Irma
Travel Trends Index: Slight Uptick Across All Travel Segments
U.S. Travel Statement on New Travel Restrictions
Portions of Travel Trends Index Revised Sharply Downward on New Data
U.S. Travel Association Presents Florida Governor Rick Scott with Distinguished Leadership Award for Commitment to Travel and Tourism
Louisiana's Kyle Edmiston Wins 2017 State Tourism Director of the Year
Workers Who Start in Travel and Tourism Achieve Higher Peak Salary Than Most Industries
Marriott's Arne Sorenson and STR's Randy Smith to Be Inducted into U.S. Travel Hall of Leaders
Travel Trends Index: Int'l Travel to U.S. Continues Strong Showing Post-Executive Order
U.S. Travel Trends Index: International Travel Post-Executive Order Stronger Than Expected
U.S. Travel Industry Rallies Behind Brand USA
Travel Trends Index: International Inbound Travel Shows Signs of Weakness
Wyndham Hotel Group’s Geoff Ballotti Named U.S. Travel National Chair
Travel Trends Index: International Travel Unexpectedly Strong to Start 2017
U.S. Travel Reacts to Trump's Joint Session Address
International Travel to U.S. Finally Returns to Pre-9/11 Levels
Travel Trends Index: Following a Strong 2016, Outlook Improves for Domestic Biz Travel
U.S. Travel Welcomes Senate Confirmation of Rex Tillerson for Secretary of State
Please login or register to post a comment.