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Worth Saving
Opinion · July 11, 2002
Like that $69 plane
ticket you just booked? The dirt-cheap rental car you picked up at the
airport? The free travel agent's advice that came with it?
Kiss it all good-bye.
Big changes are coming to the travel industry, and when the dust settles
you could pay more for your next trip. A lot more.
Two airlines are teetering on the verge of bankruptcy. One car rental
company is already operating under Chapter 11 protection. Travel agents
are suffering after losing their airline commissions this spring. If these
travel companies fail then the marketplace will become less competitive.
Prices will go up.
Neither the government nor the executives running these companies seems
capable of rescuing them. But you are.
Think of it as buying war bonds, only this time it's a war is to save
your inalienable right to travel on the cheap. Here's how:
1. Buy a ticket on United Airlines or US Airways. Both airlines
are struggling to recover after last year's downturn in business travel
and from the repercussions of the terrorist attacks. Both have had recent
management shake-ups and are appealing to the government for assistance.
Both will die without your help. Try hard to forget how awful these airlines
were even before they got themselves into trouble; that's beside the point.
Focus, instead, on what will happen if they perish. Fares could go through
the roof.
2. Rent a car from Alamo Rent A Car and National Car Rental. Its
parent company, ANC Rental Corporation, is running under bankruptcy protection,
and its stock was delisted from the NASDAQ exchange late last year. The
car rental industry doesn't cut the same high profile as the airline business,
but it is no less deserving of your help. Rental rates remain low, but
if these two car rental companies end up in the junkyard then the resulting
price increases could wreck your next vacation or business trip.
3. Use a travel agent. Travel retailers have been robbed of their
airline commissions and beaten down by a slump in travel demand. Yet many
of them continue to offer their advice at reduced rates (admittedly, they
earn a bonus from the sale of certain products such as vacation packages
or cruises). But since March, when Delta Air Lines announced it would
no longer pay base commissions for tickets issued by travel agents in
the United States, it's been a slow, sad decline for many of these professionals
- especially small so-called "Mom and Pop" agencies who relied on commissions.
The surviving agencies are imposing service fees to cover their losses
which can add $30 or more to the expense of your ticket.
The timing of your patronage is just as important. Don't just do it during
the summer when everyone else is. Plan a vacation during the fall, when
car rental lots are full of unused vehicles and planes are flying half-full.
Take a trip during the first week of January, which is called "dead week"
because everyone stays home. Go when no one else does.
And remember why you're doing this. It isn't your patriotic duty, as President
George W. Bush suggested in last year's advertising campaign sponsored
by the Travel Industry Association of America. It isn't even because these
businesses deserve to be saved. Many of them don't.
It's because their demise will inevitably make you pay more for travel.
And that's something that only the competitors of these beleaguered travel
companies want.
Christopher
Elliott is a travel commentator based in Key Largo, Fla. All e-mailed
questions may be edited, condensed or republished at the site's discretion.
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