Market conditions are turning for the travel and hospitality industry. More people are leaving home behind for a while, and they are again willing to open their wallets to do so. Especially in the highly coveted business travel sector, seats are filling and rooms are being occupied. So, it would stand to reason that airlines and hotels would move to address the increase in demand. Unfortunately, accommodating growth can be risky in these industries. Every step must be made carefully and deliberately, with a plan for taking existing demand to a higher level.
Think about your local grocery store. If cans of corn start to sell aggressively, the store can examine the trend and order more for the following week. It may have to allocate a bit of extra shelf space, perhaps at the expense of canned peas The risk isn’t that high, though, because demand can be handled in smaller increments.
The core product isn’t as flexible in the travel and hospitality business. As people look to book more rooms or flights, a hotel or airline can’t simply add a bed or a seat. Airlines can add routes (or restore those that have been cut), but that creates a new problem.
Assume that demand for a particular route has grown from the norm to the point that another one third of a plane’s seats would be filled. New revenue is coming in the door, but cash is also going out to cover the cost of operating the flights. To make this growth profitable, the airline may have to fill more of the seats on that new flight. To accommodate demand, essentially, the airline will have to create even more.
This is the reasoning behind United Continental CEO Jeff Smisek’s remark on an earnings call recently, as reported by the Associated Press, “We will not grow for growth’s sake, but only if we can maximize our profitability by doing so.”
For the hospitality industry, the challenge can be even greater. A major chain may see an opportunity to take on more guests by adding another property, but this doesn’t happen overnight. It takes time, effort and capital to get a hotel up and operational, especially in a major city. During the time it takes to plan and execute an expansion, market conditions can change substantially, as the hospitality industry learned with the credit crisis of 2008. Real estate and financial market conditions can have a magnified impact on the hotel business, and the underlying drivers move far more quickly than those supporting increases in rooms capacity.
Projects already in the works in 2008 left the industry with more supply than it needed in 2009 and 2010, and demand for rooms, according to travel industry research firm PhoCusWright, isn’t expected to return to 2007 levels until next year. This means that net growth won’t begin until 2008.
Think about it: plans that may have begun to be executed in 2007 won’t deliver results for at least four years, maybe even five.
Managing supply and demand in the travel industry is, to say the least, a tricky business. Traveler purse strings are starting to ease, making life much rosier for airline and hotel company income statements. Taking advantage of this opportunity, however, is easier in theory than in practice. This year and next, we’ll see how the hotels and air carriers manage the perils of potential.
Suits and ties are no longer in short supply on visits to the United States from overseas. The latest data from the U.S. Department of Commerce shows 11 percent growth year over year for the first six months of 2010 … for total travel. Business travel led the way, with a 19 percent year-over-year gain for the same period. Leisure travel was up 9 percent.
Of course, this follows the staggering losses of 2009, in which business travel to the United States from overseas plunged 40 percent year over year, thanks in large part to the effects of the global financial crisis and the collapse of Lehman Brothers in September 2008. So, this year’s double-digit gains aren’t nearly enough to recover for the business activity that has been lost.
We’re headed in the right direction with business travel exports, but we still have a long way to go. The Department of Commerce notes in a statement, “[T]he double digit gains in business travel that most of the top overseas countries registered in the first half of 2010 are a welcome change.”
For the top 20 countries in travel to the United States, all posted gains for business-related travel, but only six showed leisure travel growth.
The suits are back, and they’re probably bringing some cash with them!
Theme parks around the United States are getting in on the Halloween fun this week, with special events featuring everything from horror-filled haunted houses to magic shows to trick-or-treating for kids. Here’s a look at our top 10 Halloween theme park events:
1. Halloween Horror Nights: Universal Studios Florida, Orlando, Florida
Universal’s Halloween scarefest, which tops lists of horror attractions year-after-year, is celebrating its 20th birthday this year. But rather than make it solely a look back, Halloween Horror Nights XX blends new with the nostalgia. There are eight haunted houses, six streetside “scare zones” and two shows. Be sure to catch a glimpse of Fear, the towering character Universal says is the creator of all the scares of the past 20 years. Tickets are $74.99, with discounts available for Florida residents. Scare level: This event is geared toward adults and older teens. Trust me, it’s not for children.
2. Halloween Haunt: Knott’s “Scary” Farm, Buena Park, California
Now in its 38th year, Knott’s Berry Farm’s Halloween Haunt is the granddaddy of all theme park Halloween event. Unlike many theme park events where rides are open, but don’t differ from the rest of the year, Knott’s re-themes 13 of its rides and turns the ride queues into “walk-through mazes.” There are also seven live shows at Knott’s “Scary” Farm and more than 1,000 monsters, mutants and goblins standing in the shadows waiting to jump out and scare. Tickets are $50 in advance, with several discount packages available. Scare level: This event is for adults and older teens. Knott’s Berry Farm also offers “Snoopy’s Costume Party” during the day for the younger set.
3. Mickey’s Not-So-Scary Halloween Party: Walt Disney World’s Magic Kingdom, Orlando, Florida
Mickey, Minnie and all their friends don Halloween costumes for this special event at the Magic Kingdom on select nights each year. Families are allowed to come in costume and there are trick-or-treating stations set up throughout the park. Highlights of Disney’s Halloween party include Mickey’s “Boo-To-You” Parade that features a pre-parade appearance by Sleepy Hollow’s Headless Horseman, and the Hallowishes fireworks show. There’s also a live show at Cinderella Castle featuring many of the Disney villains, including (new this year) Dr. Facilier from “The Princess and the Frog.” Tickets are $59.95, with discounts available for passholders. Scare level: This one’s for just about everyone, though children who fear Disney villains or the Haunted mansion ride could be in for a few mild frights.4. Fright Dome: Circus Circus, Las Vegas, Nevada
Every year, the haunted houses at Las Vegas’s Circus Circus offer some serious scares, and this year, there are three all-new houses including My Bloody Valentine, Flesh Feast and a house that pays homage to the “Saw” horror movies. Fright Dome is also known for its live shows featuring cutting-edge magicians, and for its celebrity visitors – Paris Hilton, Holly Madison, David Copperfield and other frequent Vegas visitors tend to visit Fright Dome each year. Tickets are $34.95. Scare level: Definitely not for kids or the faint of heart – this is one of the scariest events around.
5. Howl-O-Scream: Busch Gardens Tampa Bay, Tampa, Florida
SeaWorld Parks & Entertainment holds Howl-O-Scream events in Williamsburg, Virginia, San Antonio, Texas, and Tampa, Florida, but we choose the Florida event for this list. The Tampa event typically adopts a back story that adds some edgy fun. This year, the protagonist is Sylvie, the lead singer of a rock band known as My X. Sylvie is out to get revenge on, well, her ex, and just about anyone else that stands in front of her. Besides the eight haunted houses and five scare zones at Howl-O-Scream, you can also see a concert featuring Sylvie and her band. It’s that follow-through with the back story that puts Howl-O-Scream on our list. Tickets are $74.95, with discounts for Florida residents. Scare level: Teens and adults only for this one.
6. Hersheypark in the Dark: Hersheypark, Hershey, Pennsylvania
Where better to get a sweet Halloween treat than in America’s favorite chocolate town? Hersheypark opens its “rollerghosters” and other rides at night for a Halloween celebration each year. Kids 12 and under can trick-or-treat at eight stops in the park, and there are three family-friendly shows, including one by Halloween band “Bunsen and the Burners.” Hersheypark’s eateries even update their menus for the fall, offering soup in bread bowls, turkey legs and autumn-inspired desserts. Tickets are $38.95, with several discount packages available. Scare level: This one’s truly for all ages.
7. Halloweekends: Cedar Point, Sandusky, Ohio
Cedar Point tries to balance fun and scary during their Halloweekends. While there are plenty of scares in four haunted houses and five scare zones, but much of the rest of the park is filled with pumpkins, sweet treats and family-friendly Halloween fun. All the scary sections are marked so that those not wanting quite the fright can stay away. Cedar Point puts a heavy emphasis on shows – with nine Halloween shows during the event. And for the kids, there are Peanuts shows, a costume contest and the Monster Midway Invasion Celebration Parade. Tickets are $45.99, with discount packages available. Scare level: There are plenty of frights for horror fans, but just as much fun for small frys.
8. Brick or Treat: Legoland, San Diego, California
Legoland offers Halloween fun for little ones at Brick or Treat, with a costume contest, dance party and fall-themed Lego building activities. New this year at Brick or Treat is a live stage show where kids can find the secret to turning scary monsters sweet, and a new light show, “The Spirits of Halloween.” There’s also plenty of trick-or-treating action at Brick or Treat, with seven-themed trick-or-treating stations along a trail. Tickets are $30. Scare level: This one is all treats for little ones, with no tricks in sight.
9. Fright Fest: Six Flags Great America, Gurnee, Illinois
Six Flags puts an emphasis on shows and music at this year’s edition of Fright Fest, with a new “Full Moon Rocksplosion” show and parade, as well as a new “zombie dance party.” There’s also “scary-oke” (which is what they should call it every time I take the stage), and the classic “Love at First Fright” show is back for a 20th year. Fright Fest also offers four haunted houses, as well as kids activities including trick-or-treating and a Halloween-themed “The Wiggles” show. Tickets are $36.99 online in advance. Scare level: There’s something at Fright Fest for everyone.
10. Count’s Spooktacular: Sesame Place, Langhorne, Pennsylvania The preschool set can have a frightfully fun time with Sesame Street characters with one very famous vampire (and no, his name isn’t Edward). The Count von Count hosts a Howl-o-Ween radio show, as well as an “un-haunted” maze at Sesame Place theme park. There are two additional Halloween shows starring Sesame Street favorites such as Elmo and Big Bird, as well as hayrides and trick-or-treating. Tickets are $33 online in advance. Scare level: Only for the little pumpkins.
The New York hotel scene is heating up, again. More hotels continue to open their doors to guests of the Big Apple, which means more options for every price range and personality.
Next up on the New York hotel scene: Wyndham’s newest hotel, the Tryp by Wyndham.
The 173-room Tryp New York City – Times Square South is currently under construction at 345 West 35th Street between Eighth and Ninth Avenues, and is scheduled to be completed by the second quarter of 2011. The Wyndham Hotel Group acquired the Tryp hotel brand from Sol Melia in June this year, bringing over 90 “select-service, mid-priced” hotels to cities including Madrid, Barcelona, Paris, Lisbon, Frankfurt, Buenos Aires, Sao Paulo, Montevideo and now, New York.
The Tryp New York City will offer fitness guest rooms, allowing guests to work out in privacy, as well as function space, a business center and a community fitness centre.
While we wait for New York to open, Tryp by Wyndham is already planning the opening of hotels in Berlin, Medellin (Columbia), and Madrid by the end of the year.
Several nights into our journey, as we were speeding along dark roads en route to our guest house on the island of Lifou in New Caledonia, I felt a bolt of irrepressible excitement of the sort familiar, no doubt, to most travel enthusiasts. We’d just spent several nights in big, bold Sydney, a bona fide world city, well-organized and self-evident. Sydney was exciting, but, truth be told, not unlike many places I knew well. The quiet island of Lifou, with its hybrid French-Melanesian culture, provided a novel contrast. There were few people around, and few streetlights. The air smelled sweet. Occasionally a car overtook us during our 40-minute journey, and headlights once or twice revealed women in bright clothing walking along the side of the road.
We had made it to an unknown place. I felt myself caught up with that familiar emotion known to all who love travel: teeming excitement, tied to a lack of knowledge of what was to come.
Taking stock of a five-week trip after the fact is perhaps unavoidable, but it’s also fraught. You don’t want to put too much energy into second-guessing what you did on your journey, perhaps in particular because a specific round-the-world itinerary is unlikely to be repeated. Simultaneously, you also want to learn from the experience.
Here’s what we planned well and what we might have executed differently if we had the trip to do over.Good planning.
• Hotels. Our hotels were well chosen, all in the $95-$175 range. In terms of value, we did especially well by scoring a room through Hotwire at the Hilton London Docklands for just under $100 per night. Most of the hotels we chose are well-located, or close enough to secondary attractions to feel central.
• Open-ended approach. Our general lack of planning as far as activities are concerned was also beneficial. This approach gave us time to relax into each destination and pick up inspiration on the spot. Our approach perfectly fit my neighborhood-based strategy of urban exploration. More tourist sight-oriented travelers might find this approach to be less satisfying.
• Variety of destinations. Another plus was the variety of our itinerary’s destinations. By including big vibrant cities and out-of-the-way insular idylls on our itinerary, we were able to enjoy a range of experiences in a relatively short period.
So-so planning.
• Johannesburg. As I detailed in an earlier post, our brief Johannesburg stay suffered from poor planning. In retrospect, it turns out that I’d simply consulted the wrong sources. Several friends and acquaintances popped out of the woodwork following the publication of this blog post with tips. I’ll be better prepared for my next visit to Johannesburg. Lesson: always get feedback from your trusted contacts and carefully contextualize reports of a city’s security situation.
• Tanna Island. I’m a big fan of picking a base and then fanning out to other places. I wish we’d taken greater advantage of this approach to spend a few nights on Vanuatu’s Tanna island. I read about Tanna, an ecological wonder of nature, in Lonely Planet’s Vanuatu & New Caledonia guidebook. It is fairly easy to visit Vanuatu from New Caledonia.
• Rodrigues Island. Nine nights on Mauritius was perhaps two too many. A jaunt to the country’s far flung Rodrigues Island, 350 miles to the east, would have provided a fascinating cultural and physical contrast with the main island.
This is the final Capricorn Route series installment. Check out other stories in the Capricorn Route series here.