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this Summer . - a Game of Skill, Art and Most of All Nerves . Carol Verret / May 2004 |
May 2004
Recent studies by several respected research firms indicate both good news and reasons to be cautious about the 2004 summer travel season. Both the TIA and Yesawich, Pepperdine, Brown forecast an increase in leisure travel for 2004. TIA forecasts an increase of 3.2% over 2003, which is an improvement although certainly not stunning given last year's lackluster performance. Yesawhich and partners indicate that 33% of leisure travelers anticipate more trips this year compared to last year while 38% intend to take about the same. Twenty-nine percent expect to take fewer trips. Both of these surveys are good news for hoteliers. Two other surveys, while not conflicting with the above, offer a few cautionary tales for hoteliers. The Myvesta Summer Vacation survey of 1000 adult Americans conducted May 14-16 indicates that the average American is planning to spend 5.3% less this year than last year on summer vacations. With the rising cost of gasoline, guess where they will attempt to trim their spending. In addition, Yeaswhich and partners research on the use of the Internet in travel planning by leisure travelers indicates that 63% use the internet to plan travel and 45%, up from 32% in 2002, will book travel services online. This indicates that the leisure traveler will compare price and product to make their decisions. Many hoteliers, flushed by this surge of good news and an opportunity to recoup some of their profitability from a lackluster 2003, are rushing to push rates. There is an inherent danger of pushing rates too far and too fast, especially on the part of those hoteliers whose market share penetration is languishing at or below 100%. It is imperative to remember that REVPAR is a combination of both occupancy and rate. An ADR index often rises in inverse relation to market share penetration when rate is driven too radically thus leaving the REVPAR needle unmoved. In addition, it is important to retain positioning in the market, especially as it is presented on the electronic distribution channels. If memory serves, we were seeing some of the same trends in the forecasts
for 2003 -- more leisure travel and more price sensitivity. The trend
was derailed by the war in Iraq and a stagnant economy. While the
economy is showing bright spots, the stock market is waffling, the war
continues and the price of gas is escalating.
The Memorial Weekend will give us an indication of what lies in store for the rest of summer season. Enjoy it and may it be the beginning of a positive trend! copyright © Carol Verret, 2002-2003-2004 Carol Verret is President of Carol Verret Consulting and Training, a company offering consulting and training seminars to the hospitality industry in the areas of sales and marketing and customer service. If you missed attending our live webcasts in the Training Byte Series in 2003, you will be glad to know that we are now offering each "Training Byte" in PDF format on our web site. We will not be repeating these webcasts in 2004. To order your copy, please visit http://www.carolverret.com/webcast_training.htm Our Training Bytes Series for 2004 has begun! Skill Sets for Hunters Training Bytes Schedule:
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