Most people in the hospitality industry say they expect to see business travel decline in San Diego. There's just no way around it. When you're in a robust economy, you can barely find a seat on an airplane. The fact is today you can not only find a seat, but you can find a lot of seats. Eight of the nation's 10 largest airlines are expected to post losses for the first quarter this year because of soaring labor costs, dramatic increases in the price of jet fuel and a decline in business travel.
Business travel is a highly lucrative part of airline business.
Major airlines upped the rates for business travelers six times last year. In February, the 10 largest airlines reported a 1.3 percent decline in business travel and projected a continued slide as consumer confidence sinks. It may now seem smart to take the lower-cost carriers. One San Diego distributor of semiconductor products, Insight Electronics, has been experimenting for the past two years with computer-based training programs that take the place of some travel, said marketing director Lew Boore. And, because of what's happened in the economy, we have looked closely at our expenses this year.