Terror attacks in California, Paris cost Travel industry $8.2B

After the recent terror attacks in San Bernardino, California, as well as Paris, France, and other parts of the world, the international travel industry has badly felt its adverse effects.

You Gov reported that 10 percent of American travelers cancelled booked trips due to the recent terrorist attacks.This has cost the travel industry a potential $8.2 billion. Meanwhile, 22 percent chose to delay planned trips, and 18 percent changed destination to a safer place.  

Americans give much emphasis on the safety and security of the travel destination on choosing where to spend their time for a vacation or for leisure. Cost of lodging and transportation only comes second to the list.

Tree Angle wrote that the U.S. State Department issued a Worldwide Travel Alert on November 23. It urged its citizens to be extra vigilant when travelling abroad. It encourages U.S. citizens to be extra cautious, especially in public places, in large crowds, and when using public transportation.

The travel alert will last until February 24 next year, and could be extended depending on the agency's re-evaluation of the security situation.

Meanwhile, Brussels is still in lockdown, after the Paris terror attacks according to Travel Weekly. European Tour Operators Association president Tom Jenkins, said, "Having headlines like the ones we have is never comfortable for the travel industry anywhere in the world."

"Safety is not [just] important; it's a prerequisite for tourism's existence. What we have witnessed in Paris and what is now happening in Brussels is obviously both distressing and disruptive," he said.

Travel Leaders Group chief communications officer Steve Loucks said people are still going to travel despite the warnings of the State Department.

"We arm our agents with talking points that have at their heart the facts as we know them. We advise our agents to use them and avoid speculation and feeding into the negative so that clients may make informed decisions," he said.

Despite the cancellations and the travel warnings, airfare and hotel prices still haven't dropped, which means retailers are still confident with the steady demand.