• There will be a different approach to the agency tender process with a greater emphasis on crisis management and disaster recovery plans.
  
  
• Some US-headquartered companies are electing to hold meetings in the US resulting in more inbound travel from Europe instead of outbound from US.
  
  
• Increased insurance premiums relating to terrorism will become a significant cost to organisations based in high profile buildings and certain city centre locations. This could lead to relocations and have an effect on property values.
  
  
• Security of data and risk assessment will have higher priority than ever before and will forever be of high importance to all major corporations.
  
  
• Traveller security and welfare will continue to be of high priority and at least one company intends to implement a capability to identify the whereabouts of all their travellers at any given time.
  
  
• Some employers are giving their employees an option not to travel even if there is a pressing business need to do so.
  
  
• Many corporations are actively promoting videoconferencing but many employees still prefer to travel to face-to-face meetings at a later date.
  
  
• Safety and security of travellers and business continuity will be of prime importance and such regulations as restricting numbers of senior management on any one flight will be reinstated in travel policies.

• Many of the major multiples are having to drastically review their cost bases with at least one of the Top Six implementing redundancies as well as a 10% cut in salary for all personnel.
  
  
• One senior agency member suggested that not all the Top Six agencies would be in business one year from now.
  
  
• Those companies most affected have high reliance upon intra-North American and Transatlantic traffic. There is evidence that European and Asian air traffic is still maintaining healthy load factors.

Cash flow is the main difficulty. It was suggested that IATA/BSP could be lobbied by the Agency Community to ease cash flow difficulties.

No airline representatives were present but several present had airline knowledge and experience.

• A survey of 137 Corporates with regular business travel showed an average expected decrease in travel budget of 50% January 2002 year-on-year.
  
  
• What is the future of national flag carriers? Air New Zealand is now owned by the State; Swissair is being supported by the Swiss Government. It was suggested that there are too many airlines in Europe. That will result in pressure upon alliances but paradoxically there could be a trend towards outright mergers. For example current difficulties could facilitate the proposed merger between BA and AA in a way which would be more beneficial to Customers.
  
  
• Low cost carriers are showing increases in loads through promotional fares and a perceived desire by passengers to fly with low-profile carriers.
  
  
• Many travellers are opting not to fly on American carriers.
  
  
• Continued airline failures will increase availability of airline fuel resulting in a drop in price that will benefit other airlines.
  
  
• Some GDS providers are supporting airlines through refunds for the period immediately after 11th September.
  
  
• IATA, as custodians of airline security and safety regulation, have not featured prominently in the World media or in Travel Trade Press and have therefore not provided any reassurance

Comments from hoteliers and hotel reservation specialists:

• Savoy, London: during the first two weeks after 11th September, they were "hit hard". However occupancy has increased with a hard core of regular travellers and more UK travellers.
  
  
• Accor: With a core market in Mainland Europe, they are not so reliant upon North American travellers and have not suffered significantly.
  
  
• BSI: Many hotels are dropping rates by 'dumping' availability on the Internet as a knee jerk reaction to the current crisis. This is causing instability, particularly in the London market, and could cause a 'freefall' in rates. It also leads travellers to question the viability of their own corporate rates.

This generated an animated response from Corporates

• Drops in price are as a result of normal fluctuation in supply and demand and London hotel rates were too high anyway.
  
  
• "During this time, hoteliers in London and New York will be hammered for good rates. That is the reality".

It was alleged that several hotels in Lower Manhattan had profited from the events of the 11th September by tripling rack rates for the night of 12th and immediately thereafter.

• This is a significant but often overlooked part of the Industry but forms an important part of a total trip.
  
  
• US Limousine companies are 50-90% down on the same time last year. In London operators are now "picking up some slack" but still the downturn in business is likely to lead to business failures or mergers.

• It is important to retain key, trained staff. Some lay offs result from panic or opportunism with many skilled personnel having to be recruited again at a later date at higher cost.
  
  
• Those businesses with a high reliance upon North Atlantic and US domestic travel are being most affected. Business within EMEA and Asia/Pacific continues to maintain buoyancy.
  
  
• Business needs will eventually dictate an upturn in travel activity but timing is difficult to predict during the current period of 'phoney war'. As events unfold post 11th September, the future developments will be easier to predict. It is the element of uncertainty which is causing most commercial damage but all areas of the Industry should use this period as an opportunity to learn, plan and be stronger for the future.