The devastating impacts of war

We’re all watching in horror as Russia continues to mercilessly attack Ukraine and its civilians. We can only wonder what might happen next, and offer our thoughts and financial support through various charities assisting refugees.

And while summer vacations and business trips may seem irrelevant against the backdrop of the gut-wrenching war, we can't ignore the broad implications that the conflict -- and concerns it could spread -- is having on travel and the global economy in general.

Four ways war is impacting U.S. travel now

• Shutdown of Russian airspace makes some flights longer – and potentially more costly. The war has airlines reimagining flight paths since they can’t take their polar routes over Russia’s airspace, which spans 10 million miles and 11 time zones, Axios reports. This can have an impact on flight availability, flight length and price, given how integral paths are to cost structure. As a result, passengers flying between Europe and Asia can expect flights to take two hours longer. And airfares will likely rise, given that longer flights require more fuel and oil prices are soaring. 

• Americans grow skittish about Europe. Two out of three Americans are now hesitant about planning a trip to Europe due to the war, says a just-out survey from industry research firm MMGY. That’s more than twice the percentage of those who cited Covid-19 as a concern. Half said they were worried about possible delays and cancellations of flights, trains and cruises, as well as potential border closures. And if the war rages on, it's unclear how it may impact the already delicate post-pandemic infrastructure of cities and countries far beyond the war zone. One friend told us he was delaying a planned summer trip to Luxembourg because of concerns of energy shortages and the tragic refugee crisis.

• One again, Americans may stay close to home. The Russia-Ukraine war may prove to be yet another boost for domestic travel. As we reported a few weeks ago, travel agents and tour operators were already seeing booming demand for Alaska and national park visits. The U.S.-based American Queen Voyages says bookings for its North American cruises hit a 2022 single-day booking record on Feb. 25, just a day after Russia invaded Ukraine. And travel advisor inquiries were up over 20% for the second half of February. Still, Clayton Reid, CEO of MMGY Global, said he believes our hesitancy about Europe will be “short-lived” and that bookings will bounce back as we approach summer.

• Gas prices keep soaring.  As expected, higher gas prices are here – and expected to stay most of the summer. The average gas price in the U.S. this week surpassed $4 per gallon – an all-time high, CNBC reports. President Joe Biden announced new steps to curb the hikes, noting that "Russia's aggression is costing us all.” The cost of gas jumped by more than $1 per gallon in 2021, on average, CNBC said.

Is travel insurance worthless?

Our friend bought travel insurance for her kids’ trip to Greece this summer, thinking it could come in handy given the war. But when asked if it would pay out in case war disrupted their travel, she had no idea. That’s why it’s always important to read “Terms & Conditions.” Generally, travel insurance policies exclude coverage for acts of war. “We do not provide coverage for losses that are caused directly or indirectly by that event,” said Daniel Durazo with Allianz Travel Insurance. “Events that were foreseeable at the time the policy was purchased are also excluded from coverage.” Like we said, read the fine print.

There are other options, though. “Cancel-for-any-reason” policies essentially make any war exclusion moot. They’re more expensive, but war or no, all you have to do is say you changed your mind about traveling. 

Still, if you decide to buy a cancel-for-any-reason policy, Mottie Cohen with GoHealthPlan Insurance Solutions, cautions that you generally must buy it within a set number of days after you put down your deposit. Also, these policies usually cover only 70% to 80% of your total costs.

Hawaii reopens. Will the crowds return?

If Hawaii, one of the world’s most popular destinations, is on your mind, get ready to plan your trip. The Aloha State on March 25 will drop its entry restrictions, meaning all U.S. travelers – vaccinated or not – can visit without having to test or quarantine for the first time in two years. 

Local residents are bracing for the onslaught. Flights from the mainland U.S. are already arriving full as Hawaii enters its annual two-week spring break holiday period, a local news report says. Tourism officials are urging visitors to book their hotels and rental cars to avoid turning up empty handed. 

Rental cars have always been in high-demand supply in Hawaii, and pandemic-related supply chain issues have made availability even tighter.  Even before the pandemic, we once paid a stunning $500 per day for a tiny economy car to explore Kauai over a Christmas break in 2018, including hiking through Waimea Canyon (the “Grand Canyon” of the Pacific), finding great homemade poke and swimming in every beach we could find on the way to Princeville. 

Hawaii tourism officials are optimistic about a continued recovery this spring and summer. The big question is, are the islands ready? I explored this issue a year ago, reporting how the pandemic actually brought what many locals felt was a much-needed reprieve from overtourism after the state – which logged a record 10.4 million tourists in 2019 – saw visitor numbers drop to 2.72 million in 2020.

The state’s tourism marketing organization, the Hawaii Tourism Authority, has been working over the last two years to strike a balance between the extremes, recommending a variety of tools such as higher fees and new reservation systems for popular sites.

Balance is not always easy to find. For example, when Maui cracked down on illegal and inexpensive vacation rentals in residential neighborhoods, budget travelers discovered yet another way to discover Hawaii on the cheap: By renting camper vans and parking them wherever they can. Nearly 7 million tourists visited last year, Hawaii Public Radio reports. 

In the air ...

1. United Airlines: Check a bag in under a minute. United recently began rolling out a new, speedier process for dropping off checked bags, reports Business Travel News. The shortcut’s now available in Chicago, Denver, Houston, Los Angeles, Newark, San Francisco and Washington, D.C., with more airports set to come online. To qualify, you must check in on United’s app and follow the instructions; a staffer will check your ID, stick on the bag tag and send your bag on its way.

2. Support Ukraine on your flight. Some U.S. carriers are starting to launch ways of donating money or miles to support Ukrainians. If you’re flying American Airlines in March to Hawaii or international destinations, for instance, expect to see flight attendants solicit donations for UNICEF to support its humanitarian response. United Airlines emailed United MileagePlus members today saying it’s matching $100,000 and 5 million miles in donations for Ukrainian refugee relief. Members can also donate cash or miles to United’s relief partners including American Red Cross and celebrity chef Jose Andres’ World Central Kitchen online at united.com/UkraineSupport.

3. **NEW FEATURE ** We’re debuting our monthly U.S. airline reliability tracker, based on U.S. Department of Transportation data. Airlines continually try to outdo each other when it comes to on-time performance, especially in the old days when corporate travelers dominated ticket sales. In February, American Airlines – with 229 airports – emerged as No. 1, besting Delta Air Lines – with 211 airports. Keep in mind that hub-specific weather events, such as an ice storm in Dallas, can spoil an airline’s reliability in a given month.

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