As you all know, fuel prices have been on the rise for many months, and many Americans are feeling the squeeze on their family budgets. However, if any of you tried to make holiday travel plans lately, you know the rising cost of fuel is hitting the airlines hard also.
They've raised ticket prices and added fuel surcharges to cover their costs. Airline fuel expenses usually range from 10-15 percent of their operating costs. But today, that's more than doubled to between 30 and 50 percent of those costs.
Of course, airlines are really strapped. We've already seen small or medium-sized carriers cease operations in the last year. We're hearing the economists say we could see some legacy airlines in bankruptcy again by the end of this year; only they may not come out of bankruptcy this time.
The hospitality industry depends on a very healthy airline system that serves large and small cities alike. There is a huge ripple effect here. Skyrocketing fuel costs for the airlines affect lots of other industries, like hotels, car rental companies, taxicabs and cruise lines. And don't forget amusement parks, restaurants, national parks restaurants, shops and travel agents-and many more. Travel and tourism employ 7.5 million people in the United States alone. A lot of people could lose their jobs.
Already, we're seeing the impact in Hawaii, where two airlines have gone out of business recently. Now Hawaii has 17 percent fewer seats on airplanes arriving. For hotels, that means fewer guests. With more airline capacity cuts expected in the fall-it could even get worse.
The administration and Congress need to find a solution--and they need to do it now. The fuel and energy crisis shouldn't be used as a political bargaining chip. Marriott has signed onto a letter with many of our travel industry partners urging Congress to keep working until they can reach a compromise on energy reform. They shouldn't be going home in August while travelers in America are finding it harder and harder to go anywhere.
I don't think there is any one automatic solution here---any and everything should be on the table and considered before a final decision is made. The White House needs to step up also and press Congress to stay in Washington and work toward a bipartisan compromise. The American people -- and travelers and tourists in the United States -- need our help. Let's all let Congress know that the time to get something done on energy and fuel prices is now.
I'm Bill Marriott, and thanks for helping me keep Marriott on the move.
A Call to Action on the New Energy Crisis





Mr Marriott, you are right to raise this issue. Fuel from natural resources, of which aviation fuel is derived, has been the greatest catalyst for our economy. But the scenario is changing. We and our businesses must change too. We need to push for new technologies which can replace the type of aviation fuel used today. Bio-fuels are already being trialled. Otherwise, aviation will simply become too expensive, and our nation's travel patterns will be forced to reduce.
Posted by: Travel Insurance Insider | 08/10/2008 at 04:32 AM
Good morning Mr. Marriott,
I want to send a big thank you to you and the travel industry leaders for your letter to Congress. Alas, when many of Congress left Friday, ordering the lights turned off, Microphones turned off and the press out, it just reinforced many American's views that Congress has lost touch with teh American people. It appears that the democrats in Congress have contempt for buinesses in general and teh American people as a whole when they refuse to even allow to teh floor discussion of oil drilling in US waters or other areas inside the US. At least some stayed behind in Congress to continue discussion on teh floor even after the lights were turned out.
Everything must start somewhere and with teh few memebers of Congress, the travel industry people and Mr. Marriott are people to look up too. They get the big picture and they are willing to stand up and be heard.
Again, Thank you all for your voice.
Chip
Posted by: Chip Henson | 08/02/2008 at 08:41 PM
Thanks..
Posted by: mırc | 08/02/2008 at 08:15 PM
Dear Mr. Marriott,
It is so nice to see that you have the desire to connect with the people on all issues not just those related to Marriott. I live in Ohio an own 4 Marriott Vacation timeshares all on Hilton Head Island SC. From Ohio the drive is 12 1/2 hours and we make it at least 3 times a year. The staff at Grande Ocean is outstanding and Surfwatch as well. What I would like to add about the fuel issue is this why do we have to have so many grades of fuel? It would seem supply could be met if we would have only two grades as it stands now if the pump runs out of low test you are forced to pay for the next grade and your cost goes up. I live in a rural area so gas stations are limited. I would like to see the rail system be upgraded and used. It is such a shame that in the US we have let that go, in Europe it is very much in demand it seems. We took a family trip from Ohio on Amtrack and traveled to Washington DC did not use or need a car at all. We came into Central station took the subway to the Marriott out by the zoo and for the rest of the week that is all we used it was good for all of us and a very nice way to tour the city. Maybe someone like yourself could push to put the rail system as a form of transportation to some of the cities where Marriott has properties and knows that it could be a very unique cost saving experience for everyone. The staff at those Marriotts know and use the system they would be your first point of how to make it work for the consumer. We were on our own and it would have been nice to have someone help with the process.
I think for trips to places like DC and NYC and other big cities Marriott could offer a discount to the guest for using the rail systems instead of buying gas to get around. There are so many talented people in your network this could/should be a kick- off fpr Marriott what a way to approach the Holiday season. I was in NYC when the transportation strike hit and I saw first hand how hard it was on everyone. People did not visit because they did not know how to get there and then get around after they were there.
It has been such a pleasure to be an owner and I hope to own and explore so many more of your Marriott's.
Thank you for all that you have done to make travel away from home feel like home.
Peace be with you Debbie
PS Stan Lewis is an outstanding person
Posted by: Deborah Ahrns | 08/01/2008 at 10:32 PM
I'm rather tired of hearing people talk about a winfall profits tax. It's like people think that Corporations are beings that will just pay the taxes and none of it will pass along to the consumer. Time to wake up and smell the coffee...the free market is working, look at the prices starting to drop? if we will get off our high horse and allow drilling or *GASP* nuclear energy the prices would drop even more. Environmentalists have gotten us into this mess, and unless we stop catering to them it will only get worse!
Posted by: Andrew | 07/30/2008 at 05:48 PM
Mr. Marriott--when have we ever known Congress not to take into consideration politics while planning actions or the budget. They do not even sign the Dept of Defense budget that is staffed within several months in advance. Yes, I agree with the need for congress to get involved....but the travel and hospitality industry is not the only ones impacted by the lack of action of Congress.
Posted by: Calleen | 07/29/2008 at 01:54 PM
Why not make it easy for us to UPS or FEDEX our clothing to our resort. I would rather ship and make sure it is there when I arrive than to pay the airline to loose it.
Posted by: Ted Trueblood | 07/29/2008 at 11:24 AM
nice to see my comment was posted. i honestly didnt think it would. but after reading my own comment i think i was too vague. so hopefully this comment will be posted too: the reasonable solution in stark terms is 1) price regulation or windfall taxes on corporate profits (the revenue generated by such taxes could be beneficial in overhauling how we consume energy); 2) using alternative forms of energy; and 3) something we talk little about: conservation of consumption. We waste too much and we ought to be responsible with individual and collective consumption. The Earth is not a free lunch. As for my comment on small-d democracy, I said the general public could be doing something too. Like what? We could be forming workers and consumer councils - democratically - so that we can have a reasonable say in policy formations, or participating in relevant organizations pushing the government for reform. the point is is that democracy cannot be confined to voting or some kind of spectator sport. We need to be involved and participate through cooperative efforts; we being citizens, consumers, workers, political and business leaders like yourself. Thats all i got to say, thanks for listening.
Posted by: truthaddict | 07/29/2008 at 10:47 AM
well considering the EXCESSIVE profits of the oil companies (ie Exxon/Mobil's $40 billion in 2007) and the existing possibilities of alternative forms of energy (ie wind, solar, hydro, so on) and the glaringly obvious elephant in the room: conservation of consumption, a reasonable solution is well at hand. Mr. Marriott, it is fine and dandy to be concerned about the economic effects of high costs or corporate profitability and I realize sustainable developement and respect of biodiversity have also been mentioned, but what I feel lacks in your Move community is small-d democracy. Okay, so Congress and the White House could be doing something. Well, so could we. Democracy is not just voting for politicians. Democracy is active particiaption of the people in the cooperative managing of our affairs. That is the biggest and wisest solution of all. Thanks!
Posted by: truthaddict | 07/29/2008 at 06:00 AM
In 1996 the excuse was that it would take 10 years for ANWR oil or shelf oil to reach refineries. We need to drill now and build refineries now. Or wait until 2018 and use the same excuse. Then 2028, 2038 etc. There's oil still to be extracted and you need it for a lot of things besides fuel. Even electric cars need lubrication. Plastics, asphalt, and on and on. Besides, think of all the jobs this will create.
Posted by: Linn Shaffer | 07/29/2008 at 05:59 AM
It's nice to hear someone for once who doesn't try to lay all the blame in the laps of the Democrats or the Republicans, but the Congress and the Administration as they should be--a mutually reponsible pair. More people need to recognize that all the petty sniping and blame-games between parties are simply counterproductive and do nothing for the American people as a whole.
Posted by: Stephan | 07/29/2008 at 04:14 AM
Mr. Marriott, this is an important issue and thank you for raising it. As you note, several airlines have closed down and others are in bankruptcy. We also have mergers taking place. With the escalation of fuel prices and other costs, we could see additional carriers close down. Fuel is a major problem. Congress needs to address all issues impacting the price of fuel including speculation. Several Senators have introduced legislation to address speculation. If we can cut back on some speculation, fuel costs would fall by at least 20%.
Posted by: Edward Faberman | 07/29/2008 at 03:08 AM
I belive that President Bush needs tomake a choice his stocks or the American People. He could lower the gas prices by releaseing the SPR (Stategic Petroleum Reserve) that we have in this country. I need to ask this question if someone can give me the answer. Why is not every drop of Iraq Oil not coming to the United States to pay for the War and to reduce the price of Home Heating Fuel, Gas and Aviation Fuel?
Posted by: Daniel DiSisto | 07/29/2008 at 01:07 AM
I think I'm as astute as the next person when it comes to trying to understand the fuel crunch, but it still makes me wonder why your hotels have doubled their prices! I refer to the Airport Marriott in St . Louis. On June 12th I stayed there for $79 (senior rate). Now that I'm returning on Aug. 3rd that same room is $161. I like staying with Marriott and have stayed at the Airport Marriott in St. Louis off and on for 35 years, but I can't do it at this price.
Posted by: Lisette Fimian | 07/28/2008 at 12:57 PM
I completely agree with your thoughts on this. May I add two comments: First, too many, the pundits, media, Congress, experts, lobbyists, etc., take the view that because a particluar solution is not comprehensive, we should do nothing. Even partial solutions, like the Pickens and Gore plans, are steps in the right directon - and once started, will pick up momentum. We need leadership. Second, the status quo in our leadership must change. May I suggest you start support more Democrats instead of Republicans (who seem to adore the oil companies)? Thanks for your comments.
Posted by: R. R. Clark | 07/28/2008 at 12:00 PM
You said it, Bill! J.W. for President!
Posted by: Karen Stanko | 07/28/2008 at 11:46 AM
I agree. I hope for once congress does not tie up energy legislation in a partisan way but instead acts in the best interests of our Nation. Not in a fashion that is purely political and the blames are put on the other party.
Posted by: Sid Scheinberg | 07/28/2008 at 11:13 AM
I have an idea for Marriott on the Move... How about utilizing solar energy for a hotel in say Seagrove Beach, Florida !!! We have an existing location there that may be of interest. If interested...
Posted by: R R Stark | 07/28/2008 at 07:41 AM
It's good to know that Marriott as a corporate is doing something about it sending a letter to the Congress and all.
Posted by: Mariana Denis | 07/28/2008 at 05:17 AM