BP Oil Spill Hurting Meetings Business In Gulf States

The Gulf of Mexico oil spill already is affecting group business travel along coastal areas, including causing some cancellations and halting future bookings, according to survey data released today by hospitality technology supplier The Knowland Group.

A survey of 50 coastal hotels in Louisiana, Mississippi and Alabama, where the pungent odor from the spill already is penetrating, showed that 35 percent have already seen cancellations as a result of the oil spill. Additionally, 42 percent said the spill has hurt future event bookings, according to the survey. At the same time, some hotels have seen an uptick in business, as cleanup workers are using them for their travel needs.

For groups that have booked events in the region, 62 percent of the properties surveyed said they are waiving attrition clauses for group bookings affected by the spill, in some cases giving a credit toward future bookings, the survey indicated.

The spill could have a continuing and growing impact on group events. As of today, oil from the spill already was reaching barrier islands off Louisiana, and ocean currents could potentially spread the slick as far away as Florida and the U.S. East Coast, according to The Associated Press.