Canceled flights, quarantined cruises and $30B losses: How coronavirus has upended the travel industry

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The novel coronavirus outbreak has already upended an entire industry, resulting in canceled flights, resorts on lockdown, and a deadly cruise ship quarantine. The outbreak is expected to cost the airline industry alone nearly $30 billion. 'The main reason for that is that the markets affected

The novel coronavirus outbreak has already upended an entire industry, resulting in canceled flights, resorts on lockdown, and a deadly cruise ship quarantine. With the world bracing for a pandemic, experts say the travel sector should prepare for even more uncertainty ahead.Moreover, the decline in Chinese and other Asian tourists coming to the U.S."will translate into a loss of $7.

"Airlines are making difficult decisions to cut capacity and in some cases routes," he said in a statement."This will be a very tough year for airlines." The IATA calculated the nearly $30 billion figure based on how the industry was hit after the SARS epidemic, which was characterized by a sharp decline in travel demand for six months followed by an equally quick recovery -- though it's still unclear if this outbreak will follow a similar path.Hayley Berg, an economist at the flight and hotel booking service Hopper, told ABC News that demand for travel to China is about 40% lower than it was at the beginning of January.

"The areas that we know the most recent demand hits because of coronavirus are definitely concentrated in Asia and Southeast Asia," she said."We've seen a definite uptick in demand for domestic flights at the same time that international demand has fallen," she said."I would expect that is something we will see continue."

 

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