By Lewis Loflin
In 2001, Travelocity.com arrived in Clintwood, Virginia, a struggling coal town in Southwest Virginia (SWVA), with promises of 500 “technology jobs,” backed by $10 million in public funds. Hailed by Congressman Rick Boucher (D-VA 9th) as a telecom success, the venture quickly unraveled, offshoring to India by May 2005 and leaving only 250 jobs at its peak—half the promised number. This failure, part of a broader pattern of call center instability in SWVA, mirrors the region’s economic challenges, exacerbated by corporate welfare and unfulfilled promises. This retrospective examines Travelocity’s flop, its impact on Clintwood, and the long-term consequences, updated with 2025 insights.
Congressman Rick Boucher championed Travelocity’s 2001 arrival in Clintwood as a telecom victory, securing $10 million in public funds, primarily for infrastructure, to revitalize the region. Boucher, a proponent of tech-driven economic development, claimed the call center would create 500 “technology jobs,” positioning Clintwood as a hub for innovation. However, by May 2005, Travelocity offshored its operations to India, leaving only 250 jobs at its peak—costing taxpayers approximately $34,000 per job, as reported by the Bristol Herald Courier (BHC, May 2005). Local press criticized Boucher for failing to anticipate the offshoring trend, a blind spot also evident in his support for the Bristol Virginia Utilities (BVU) OptiNet venture, which faced similar scrutiny for mismanagement (see BVU Socialism). Boucher’s vision earned him credit for a call center debacle that epitomized SWVA’s economic struggles.
Boucher’s framing of Travelocity’s jobs as “technology” roles was misleading. A 2005 LENOWISCO study highlighted the reality: “The region has been replacing manufacturing jobs with call center jobs, which provide limited advancement...easily moved to other regions and/or countries.” Clintwood’s socio-economic challenges—50% adult illiteracy and only 10% college-educated, as reported by the Coalfield Progress (May 22, 2002)—clashed with such hype. Educational infrastructure was in disrepair, with schools needing $30 million for upgrades, yet $10 million was diverted to prop up a call center that offered fleeting $8/hour jobs (approximately $12/hour in 2025 dollars). The disconnect between Boucher’s promises and the region’s readiness underscored a broader failure to address structural barriers.
The Dickenson County Tech Park’s history reveals a cycle of unfulfilled promises:
VCEDA’s Ron Flanary admitted in April 2005 that they do not track actual job creation, only requiring wages at 1.5x the minimum wage—$7–$8/hour then, equivalent to $11–$12/hour in 2025. This lack of accountability allowed inflated job claims to persist, despite clear evidence of underperformance.
In a 2004 Bristol Herald Courier letter, I warned of the waste: “Travelocity never produced the jobs promised...$10 million?...$40,000 per job...Sykes is dumping rural America” (BHC, February 20, 2004). The $8.8–$10 million invested could have funded seven years of community college for 250 workers at $3,000/year, offering sustainable skills development instead of a $1.6 million daycare for $8/hour jobs. Travelocity’s exit mirrored Sykes’ closures in Pikeville (324 jobs, 2004) and Hazard, Kentucky (393 jobs, 2003), reflecting a regional trend of call center instability driven by offshoring to lower-cost regions like India, where wages ranged from $1–$5/hour.
Former employee Annie Owens captured the impact in 2004: “Clintwood call center was to be shut down...moving to India...300 agents will lose their jobs...a big impact” (February 18, 2004). An unconfirmed 2004 email from a “Concerned Employee” alleged Travelocity rejected a $2 million offer to stay two years, reducing incentives from $1,000 to $200, hinting at deeper operational issues. These accounts underscore the personal toll on workers, many of whom faced limited local job prospects in a region with significant educational and economic barriers.
By 2025, Clintwood’s call center cycle—Nexus, Travelocity, SI International (now Salient CRGT)—remains a cautionary tale. VCEDA claims 1100+ jobs since 1988, yet employment never exceeded 250 at its peak, with Salient CRGT employing ~130 at $12–$15/hour today. Over $10 million in public funds failed to create sustainable growth, mirroring broader economic decline: over 60,000 Tri-Cities jobs lost since 2009, a 45% drop in the information sector from 2010 to 2020 (versus a 2% national increase), and population declines of 3–5% in counties like Dickenson since 2010. Boucher’s telecom dream, including his BVU-OptiNet advocacy, has fizzled, leaving SWVA with few call centers beyond EarthLink in Norton and Scott County. For more, see Lewis Loflin Before the VA Tobacco Commission.
A LENOWISCO study foresaw non-unionized call centers’ collapse, warning of offshoring risks (Asia’s $1–$5/hour wages), low-skill reliance (~30% no high school diploma, 2003), and firms exploiting subsidies, like VCEDA’s $5.6 million for Sykes. Non-unionized sites lost ~2 million U.S. jobs by 2015, unlike AT&T’s protected workforce. Education gaps—~50% no diploma in Dickenson County (2008)—worsened vulnerabilities. LENOWISCO Study, sullivan-county.com
| Sector | SWVA (% Decline) | USA (% Change) |
|---|---|---|
| Arts, Ent., & Rec. | -20% | 6% |
| Wholesale | -25% | 3% |
| Construction | -35% | 24% |
| Information | -45% | 2% |
| Mining | -50% | -11% |
Notes: Excluding mining, SWVA experienced the greatest declines in sectors that grew nationally. The region’s mining sector decline exceeded the national average. A total of 10,451 jobs were eliminated across these five sectors, with 16,774 jobs lost when including national mining sector declines between 2010-2020. The 45% decline in the information sector persists despite an estimated $200 million in public investment, likely exceeding $300–$400 million, with significant data withheld.
Ref: Zach Jackson, Virginia Tech
Travelocity’s Clintwood call center, a centerpiece of Rick Boucher’s telecom vision, failed to deliver on its promise of 500 technology jobs, offshoring to India by 2005 and leaving only 250 low-wage positions at its peak. The $10 million in public funds, costing $34,000 per job, could have been better invested in education, as the region’s structural challenges—illiteracy, undereducation, and offshoring vulnerabilities—persisted. The LENOWISCO study’s warnings about call center instability remain relevant, as SWVA struggles with economic decline and outmigration. Sustainable development requires transparency, workforce investment, and a shift away from corporate welfare. Compiled April 16, 2025.
Acknowledgment: I’d like to thank Grok, an AI by xAI, for assisting in drafting and refining this article. The final perspective and edits are my own.
