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U.S. Travel Inefficiencies Cost Economy $71 Billion, Reveals Ipsos Survey

A recent survey by Ipsos, commissioned by the U.S. Travel Association, has highlighted the severe economic implications of inefficiencies in the U.S. travel system.

The record surge in summer travel demand has accentuated these issues, leading to air travelers potentially taking two fewer trips annually. This translates to a staggering $71 billion loss for the U.S. economy.

U.S. Travel Association President and CEO, Geoff Freeman, expressed deep concern, comparing the air travel experience for nearly 60% of travelers to the hassles of visiting the DMV. He emphasized the need for the federal government to streamline the travel process.

The survey indicates that these travel frustrations have resulted in 27 million avoided trips and a loss of $4.5 billion in tax revenue. If the travel experience were more streamlined, half of the air travelers surveyed said they would travel more in the upcoming six months. Business travelers, too, would undertake an average of two additional trips annually, generating an economic impact of $52 billion.

Freeman pointed out several areas where the federal government is lagging, including outdated security screening technology, inconsistent wait times at Customs and airport security, and prolonged delays in processing U.S. visitor visas. He remarked, “The security screening process hasn’t evolved in the 21 years since TSA’s inception. While air travel is safer, the U.S. is falling behind other nations in terms of screening technologies.”

This survey’s findings come on the heels of Congress’s decision to pass a short-term funding solution for the Federal Aviation Administration (FAA), with a long-term reauthorization bill still pending in the Senate.

Freeman identified two immediate opportunities to enhance the U.S. air travel experience. He advocated for the long-term FAA reauthorization bill and the confirmation of Michael G. Whitaker as the FAA administrator. Additionally, he encouraged U.S. officials to adopt best practices from global counterparts, such as Spain and the U.K., who have lifted the liquid ban in carry-on luggage due to advanced security tech.

Interestingly, about two-thirds of recent air travelers are open to sharing their biometric data with the government or private entities. This presents a golden opportunity for the U.S. to leverage biometric technology, as other nations have, to boost efficiency.

Freeman concluded, “A collaborative approach between the government and the travel industry can revolutionize the air travel system, yielding long-term economic benefits.”

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