abadani69
07-06-2006, 10:29 PM
NATIONAL REPORT—Gasoline prices might be climbing across the country and consumers might be grumbling, but some hoteliers are not expecting the sharp rise to significantly impact the summer travel season or have a negative impact on occupancy, at least until prices reach $4 per gallon.
"Historically, Disney's theme parks and resorts have not been noticeably impacted by rising oil and gas prices," said Tony Bruno, v.p., Disneyland Resort Hotels. "Research from the Travel Industry Association [of America] finds that gasoline represents a relatively small portion of a vacation's cost."
Bruno oversees 2,224 guest-rooms at three hotels along with the Downtown Disney shopping, dining and entertainment area.
Despite the cost of regular gas averaging around $3 per gallon nationally, which is about 80 cents higher than a year ago, some hotel owners and general managers believe the traveling public will move full steam ahead with their vacation plans this summer.
http://www.hotelmotel.com/hotelmotel/data/articlestandard//hotelmotel/242006/335671/i2.jpg
"Certainly the consumer is becoming better at traveling economically," said Fred Pozin, owner and g.m. of the 152-room Ramada in Jacksonville, Fla. "But we as a society are getting more European and taking our vacations no matter what. If it happens to cost more in fuel, then we will cut somewhere else."
For instance, travelers might forgo a large breakfast and instead get something quicker and less expensive to save money, he said. Or they might not go out to one of the more fancy restaurants while vacationing or might choose a lower-rate hotel instead of the most luxurious, he said.
Regardless, the hotels that will benefit are the ones that are offering more services to ease this burden, Pozin said.
"The hotels that provide added value to their guests will benefit," he said. "If one hotel is the same rate as another and they are providing breakfast, then travelers will go where they get the most value. If all else is equal, it comes down to who has the better deal."
For its part, the Jacksonville Ramada is offering a complete breakfast for every guest as a means to differentiate itself, Pozin said.
http://www.hotelmotel.com/hotelmotel/data/articlestandard//hotelmotel/242006/335671/i3.jpg
An indoor waterpark and a conference center help the Best Western Sterling Inn Banquet & Conference Center in Sterling Heights, Mich., retain occupancy even when gas prices rise.
James Coyle, president of Coyle Hospitality Group, an industry research and consulting company, said leisure travel is a discretionary item and Americans have proven that they don't like cutting their discretionary spending.
"My feeling is travel is a discretionary buy and a rise in gas prices won't affect that discretionary buy," Coyle said. "The increase in gas prices will come out of savings. People will just save less."
He said people will search harder for a good hotel deal but he has seen no indication that the rise in gas prices will affect people's travel plans.
Face Lifts
Victor Martin, co-owner and g.m. of the 246-room Best Western Sterling Inn Banquet & Conference Center in Sterling Heights, Mich., said he still expects people to take their planned vacations, but they might pick a closer destination.
"My thought is the rise in gas prices is going to be on people's minds, but it will not end their travel," he said. "It may shorten the distance they are willing to drive, say instead of driving 800 miles they may only want to drive 200 miles. But they won't forgo their vacation plans.
"I honestly think the American public got use to the price of gas going up and down all the time. I don't see it having a major impact on the tourism industry in general," he said.
The Best Western Sterling Inn has a 32,000-square-foot indoor waterpark and a 15,000-square-foot conference center, and Martin said he is confident his property always will be an attractive destination.
Even so, the hotel is offering a $20 gas card as part of its "Fill up Friday" package as an extra incentive for travelers to stay at the property, primarily because of the depressed economic conditions throughout Michigan.
A package at The Millennium Hotel, Minneapolis includes a $10 gas gift card that can be used at any SuperAmerica station.
"I figure we can make their travel a bit easier," Martin said. "I will pay their gas to get here and back."
Management at The Millennium Hotel, Minneapolis, had the same thought. The 322-room property is offering a "Hot Summer Special" package, which includes a complimentary $10 gas gift card to be used at any SuperAmerica station with an overnight stay between Thursday and Sunday through July 3, according to Rhonda Omedt, director of sales and marketing at the hotel.
Much like Martin, Omedt said she does not expect travel to decrease as a result in the spike in gas prices, but can see some travelers picking closer destinations.
"I think what it might do is minimize the distance people are willing to travel," she said. "But I do not expect to see a decrease in overall travel."
"Historically, Disney's theme parks and resorts have not been noticeably impacted by rising oil and gas prices," said Tony Bruno, v.p., Disneyland Resort Hotels. "Research from the Travel Industry Association [of America] finds that gasoline represents a relatively small portion of a vacation's cost."
Bruno oversees 2,224 guest-rooms at three hotels along with the Downtown Disney shopping, dining and entertainment area.
Despite the cost of regular gas averaging around $3 per gallon nationally, which is about 80 cents higher than a year ago, some hotel owners and general managers believe the traveling public will move full steam ahead with their vacation plans this summer.
http://www.hotelmotel.com/hotelmotel/data/articlestandard//hotelmotel/242006/335671/i2.jpg
"Certainly the consumer is becoming better at traveling economically," said Fred Pozin, owner and g.m. of the 152-room Ramada in Jacksonville, Fla. "But we as a society are getting more European and taking our vacations no matter what. If it happens to cost more in fuel, then we will cut somewhere else."
For instance, travelers might forgo a large breakfast and instead get something quicker and less expensive to save money, he said. Or they might not go out to one of the more fancy restaurants while vacationing or might choose a lower-rate hotel instead of the most luxurious, he said.
Regardless, the hotels that will benefit are the ones that are offering more services to ease this burden, Pozin said.
"The hotels that provide added value to their guests will benefit," he said. "If one hotel is the same rate as another and they are providing breakfast, then travelers will go where they get the most value. If all else is equal, it comes down to who has the better deal."
For its part, the Jacksonville Ramada is offering a complete breakfast for every guest as a means to differentiate itself, Pozin said.
http://www.hotelmotel.com/hotelmotel/data/articlestandard//hotelmotel/242006/335671/i3.jpg
An indoor waterpark and a conference center help the Best Western Sterling Inn Banquet & Conference Center in Sterling Heights, Mich., retain occupancy even when gas prices rise.
James Coyle, president of Coyle Hospitality Group, an industry research and consulting company, said leisure travel is a discretionary item and Americans have proven that they don't like cutting their discretionary spending.
"My feeling is travel is a discretionary buy and a rise in gas prices won't affect that discretionary buy," Coyle said. "The increase in gas prices will come out of savings. People will just save less."
He said people will search harder for a good hotel deal but he has seen no indication that the rise in gas prices will affect people's travel plans.
Face Lifts
Victor Martin, co-owner and g.m. of the 246-room Best Western Sterling Inn Banquet & Conference Center in Sterling Heights, Mich., said he still expects people to take their planned vacations, but they might pick a closer destination.
"My thought is the rise in gas prices is going to be on people's minds, but it will not end their travel," he said. "It may shorten the distance they are willing to drive, say instead of driving 800 miles they may only want to drive 200 miles. But they won't forgo their vacation plans.
"I honestly think the American public got use to the price of gas going up and down all the time. I don't see it having a major impact on the tourism industry in general," he said.
The Best Western Sterling Inn has a 32,000-square-foot indoor waterpark and a 15,000-square-foot conference center, and Martin said he is confident his property always will be an attractive destination.
Even so, the hotel is offering a $20 gas card as part of its "Fill up Friday" package as an extra incentive for travelers to stay at the property, primarily because of the depressed economic conditions throughout Michigan.
A package at The Millennium Hotel, Minneapolis includes a $10 gas gift card that can be used at any SuperAmerica station.
"I figure we can make their travel a bit easier," Martin said. "I will pay their gas to get here and back."
Management at The Millennium Hotel, Minneapolis, had the same thought. The 322-room property is offering a "Hot Summer Special" package, which includes a complimentary $10 gas gift card to be used at any SuperAmerica station with an overnight stay between Thursday and Sunday through July 3, according to Rhonda Omedt, director of sales and marketing at the hotel.
Much like Martin, Omedt said she does not expect travel to decrease as a result in the spike in gas prices, but can see some travelers picking closer destinations.
"I think what it might do is minimize the distance people are willing to travel," she said. "But I do not expect to see a decrease in overall travel."