According to Incentive Research Foundation, the effects of a downturn in the economy produce different travel incentive programs that can be either negative or positive depending on the traveler. Often, travel incentive programs become more geared toward domestic rather then international travel. This can be a benefit to those wanting to travel within their country while negatively affecting those who need to travel outside of their country. Benefits for round trip travelers are often presented as well as an increase in debit or gift card incentives.
Areas in which tourism drives a large part of the economic growth are often negatively impacted during times of economic meltdown. People can be laid off work or even lose their jobs if the economy takes a turn for the worse. However, in times if economic growth, jobs in the travel industry are often created which promotes a healthy economy in tourism-driven areas.
When the economy fails, so do businesses. Travel organizations that are ill-equipped have a harder time surviving a recession then those that have prepared for survival. Airlines can go under, hotels shut down and small travel agencies have been known to close their doors permanently as a result of a low economy.
Changes in travel marketing occurs as the economy changes. Cost-effective solutions are often implemented when the economy is down. Marketers often find themselves having to be more persistent in reaching out to travelers as well as being more grateful to them. During slow economic times you will often find that travel specials have a longer shelf life whereas specials often expire in about a week during a positive economic effect. Thank you letters are also often sent to travelers who continue travel during a recession.
