Online Travel Agencies Going Through Post-Hurricane Tribulations

Online travel agencies are facing a tough situation due to devastation caused by recent hurricane Katrina, says a report in The New York Times.

"As the Gulf Coast reels from Hurricane Katrina´s devastation, online businesses are struggling to gauge the impact of the possible loss of half a million prospective customers for weeks or months," says the report. "Online travel agencies like Expedia, Travelocity and Orbitz are no doubt feeling the pinch more than most online retailers. Not only must they cope with a deluge of calls from customers who had booked trips to the Gulf Coast and now want their money back, they must also face up to the possibility of a slump in sales as some vacationers and business executives deterred from flying to New Orleans drop their travel plans altogether."

The report added, "With Mardi Gras just six months away and recovery estimates for the city still cloudy, agencies cannot even be sure that one of the prime travel events of February will occur. Even if the city is in a position to stage Mardi Gras events, travel companies cannot say how many travelers New Orleans will be able to accommodate. None of the top online travel agencies would discuss the economic impact of the storm in detail."

Joel Frey, a Travelocity spokesman reportedly said, "Our main concern is just dealing with the group of travelers who´ve made plans to travel to the area. But there will be long-term implications that every travel agency will have to address." Frey also told the publication that Travelocity has sent e-mail messages to 14,000 customers who had booked flights, hotel rooms and car rentals in the afflicted areas.

The company has also waived the cancellation and rescheduling fees it typically charges customers, as have most airlines and other travel companies, said the report.