It?s well reported that reductions in business travel have been directly hurting airlines & hotel chains. What is less known is how much of an impact these reductions are having on other dependent industries. In a story in USA Today (07/09/01), several industries were examined.

Restaurants ? Corporate & group banquet business is off 15% at McCormick & Schmick of Portland, OR, an operator of 35 diner houses. Morton Steakhouse?s parent reported an unexpected loss because of the drop off in business travel.

Rental Cars ? Rentals could be off as much as 10% from a year ago. Some agencies are even considering cut backs in fleet size.

In-Room Movies ? Also hurt by the reduced demand, On Command, a pay-per-view hotel television system operator issued a profit warning.

Luggage sales ? Industry wide sales of top quality luggage are off 7 % to 10% in specialty and department stores when compared to one year ago. ?Business is off ? period,? says Gene Batter, general manager of Edwards Luggage, which has five stores in the San Francisco area.

For small and large businesses a like, the predictions are the same. Many businesses are going to have to take some sort of action (i.e. increase marketing) to increase or even maintain similar sales levels to last year.