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Research Outline
Prepared for Alex S. | Delivered April 28, 2020
Past Events Affecting the U.S. Travel Industry
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Goals
To provide an overview of events in the last 40 years that had significant negative effects on the travel industry in the U.S., apart from 9/11 and the 2008 economic recession.
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Early Findings
Some events that have had a negative effect on the travel industry in the U.S. include:
The Professional Air Traffic Controllers Organization (PATCO) Strike of August 1981
In early 1981,
PATCO called for "a reduced 32-hour work week, a $10,000 pay increase for all air-traffic controllers and a better benefits package for retirement."
When negotiations with the Federal Aviation Administration stalled,
about 13,000 PATCO members
went on strike technically violating a 1955 law that banned strikes by government unions.
President Regan issued a 48-hour return-to-work order, and fired
more than 11,000 air traffic controllers
who ignored it.
The sweeping
mass firing of federal employees
slowed commercial air travel
for months
, although it did not cripple the system as the strikers had forecast.
Some
7,000 flights
across the country were canceled during the strike at the peak of the summer travel season.
Hurricane Katrina
Katrina
is the name of the hurricane which hit the southern coast of the United States in late August 2005.
80% of
New Orleans
was flooded and the hurricane also brought a lot of damage and victims in the
states of
Alabama, Tennessee, Georgia, and Kentucky.
About 1,200 people
died as a direct result of the storm, and estimates for damages were "in excess of
$200 billion
," making Katrina one of the
most economically costly
natural disasters to strike the U.S."
Immediately after the hurricane struck,
hundreds of flights
into New Orleans and other places were canceled or diverted, while some
cruise ships
were rerouted or didn’t sail.
The hurricane caused major damage due to
restriction in the oil production
, destruction of the infrastructure on the highway along the shore of the Gulf of Mexico. Due to this, in some areas the price of fuel rose to
$6
per gallon, which was much higher than the normal price of
$2.5
per gallon before the hurricane
Coastal communities that
rely on tourism
suffered from both loss of infrastructure and business.
The
tourism industry
in New Orleans was particularly hard hit. Before Katrina, the city was among the
most visited cities in the U.S.
with over
10 million
tourists who spent a total of
$4.9 billion
pre-hurricane. The number of tourists dropped to
3.7 million
who spent
$2.8 billion
in 2006.
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