Local firms measuring personal, business effects of Sept. 11 tragedies

Many in the Midwest felt insulated from the tragic events that took place on the East Coast Sept. 11. However, local businesses have learned they aren't immune from the effects of those events either personally or professionally.

"It was very difficult for me to work that week," said David Yaktine, who heads up Northwestern Mutual Financial Network in Springfield. "If anything, I think the tragedy gave me a new sense of purpose for what I do. People are just so much more aware now of the need to have things planned out."

Since Sept. 11, Yaktine has fielded numerous phone calls from clients who wanted to know if their life insurance coverage was adequate. Other clients began calling to inquire about their personal investment or retirement portfolios after the stock market in New York City closed Sept. 11 and remained closed until Sept. 17.

Troy Kennedy, senior vice president and chief marketing officer for Springfield Trust Company, also heard from clients concerned about their investments.

"I told my clients that this wasn't the first time a tragedy has happened, although not of this magnitude," Kennedy said. "We reviewed some history about what the stock market did after events like Pearl Harbor and the Cuban missile crisis. None of my clients liquidated their portfolios, and very few altered their positions. I actually think closing the stock market for four days turned out to be a good thing because it prevented any knee-jerk reaction by investors."

Shareen Beal, senior vice president of Commerce Brokerage Services Inc. in Springfield, has been busy since Sept. 11, as well. Like Kennedy, none of her clients have liquidated their portfolios, but she has done "a lot of hand holding and counseling."

"There are so many wonderful opportunities out there right now," Beal said. "In fact, a lot of my clients are buying."

Others in the financial industry, however, found it was a little more difficult to get back to business as usual. According to Russ Marquart, senior vice president of commercial lending at Empire Bank, the events of Sept. 11 led to a disruption in mortgage lending.

"We could originate mortgages, but we didn't lock in interest rates on new mortgage applications until the stock and bond markets reopened on Sept. 17," Marquart said. "Basically, the financial markets came to a standstill for four days."

According to Marquart, the mortgage market now is strong. This is particularly true in the refinance area, which continues to benefit from lower interest rates.

While those in insurance and financial services saw business rebound quickly, those in travel and tourism haven't been so lucky. Donna Cambridge, who co-owns Chesterfield Cruise and Travel with Gail Peters, said she personally issued more than $20,000 worth of airline ticket refunds in one day.

"People just panicked," Cambridge said. "They tried to get refunds on trips that they wouldn't be taking until Thanksgiving, Christmas or into next year, and they got socked with trip cancellation fees, which are imposed by the airlines."

Cambridge, who recently took a cruise, has worked hard to reassure customers who are concerned about their safety, and she's quick to point out the many new security measures that have been implemented recently by both the airlines and the cruise lines. Still, she has not been able to alleviate some customers' concerns.

Marvin McDaniel, who owns Carlson Wagonlit/McDaniel Travel, said he was forced to lay off several employees following a sharp downturn in business after Sept. 11. However, things are beginning to rebound, and McDaniel already has called some employees back to work.

"Corporate travel came back quickly," he said. "Leisure travel has been slower to bounce back, though."

Like Cambridge, McDaniel said he believes traveling has never been safer because of tighter security measures. Still, he acknowledged that it might take some time to rebuild consumer confidence.

"Right now, I don't think the big issue is safety," he said. "It's consumer education. Things have changed. If you're flying, I would suggest arriving at the airport at least 90 minutes ahead of time. Carry-on baggage has been limited to one bag and a purse or briefcase. People aren't aware of all of these changes, which means I'm going to work harder than ever to educate my customers about what they can expect when they travel."

Nowhere are the changes in the travel industry more apparent than at the Springfield-Branson Regional Airport, where a number of new safety regulations have been implemented.

Motor coaches are no longer allowed to pick up or discharge passengers in front of the terminal. The airport's short-term parking lot, which is located directly across from the terminal, also has been closed.

According to Sherry Wallace, spokesperson for the Springfield-Branson Regional Air-port, parking revenues have decreased by approximately $1,000 per day since the short-term parking lot was closed.

"When air-travel service resumed, the flights leaving Springfield were 20 percent full," Wallace said. "Normally, they're about 70 percent full, which is considered high in the airline industry. Right now, the flights leaving here are about 60 percent full."

According to Wallace, Springfield-Branson Regional hasn't lost any routes or airline carriers since Sept. 11. However, five flights have been eliminated due to cutbacks made by the airlines.

National Guard troops also are on duty at the airport. These troops assist the airport's regular security officers with their duties.

Area hotel and motel owners also have weathered some changes. According to Susan Wade, public relations manager for the Springfield Convention & Visi-tors Bureau, hotel and motel room revenue was down 12 percent from Sept. 11 to Sept. 30 compared to the same period last year. However, Wade said that Springfield is faring better than some other cities because most travelers come to the city by car or bus.

Tammy Johnson, general manager of the Radisson Hotel in Branson, saw business drop right after Sept. 11. Since then, however, bookings have stabilized.

"We have some fly-drive customers, who fly into Kansas City, St. Louis or Springfield and then drive here," Johnson said. "We've lost some of that business. Business from motor coach tours, though, has remained strong. In fact, I think room occupancy may increase in the coming months because Branson is such a popular drive destination."

The aftermath of Sept. 11 will continue to affect many local business owners in the months ahead. However, even those who work in the industries hardest hit say they're optimistic.

"I've noticed that business has picked up," Cambridge said. "Clients are asking about airfares and cruises, and it seems likes things really are getting back to normal. We're not as busy as we were before Sept. 11, but we feel like it's a short-term problem. People are ready to get back to their lives."