Memorial Day travel surge to be followed by silence

by Tom Johansmeyer on

So, there are two visions of the near future: one immediate, the other a bit further out. For Memorial Day, expect to see plenty of traffic, thanks to a drop in gas prices, according to AAA. More than 10 percent of the country’s population – north of 32 million people – is expected to ht the road (though some will take planes). This stands in stark contrast to last year, when it cost $4 to put a gallon of gas in your car.

But, the fun will end when the summer starts.

An estimated 20 million fewer trips will be taken this summer compared to last year – which translates to $43 billion less in travel spending. According to a recent poll by AP-GfK, a third of Americans have already canceled at least one trip this year as a result of the ongoing financial calamity. Only 42 percent of us are going to take a leisure trip this year, down from 49 percent in a similar poll conducted in May 2005.

Apparently … brace yourself … income is a factor. Two-thirds of people making more than $100,000 a year are expected to take some kind of recreational trip this summer. If you make $50,000 to $100,000, the chances are around 50-50. Only a third of people making less than $50,000 a year are likely to hit the road (all incomes based on family, rather than individual).

Grim? It gets worse.

Twelve percent of those traveling are staying in their home states, with 67 percent venturing across state lines and only 19 percent leaving the country. Twenty percent are staying close to home for financial reasons, and 23 percent will save a few bucks by staying with friends or family.

March airline plunge softens in April

by Tom Johansmeyer on

Passenger traffic is still falling. That’s not going to change for a while. But, the decline slowed in April, signaling that the prolonged sharp dips may be behind us. Some optimists even believe that the worst is over – though I maintain a healthy skepticism.

Note the metric being used: passenger traffic. There’s a lot of mileage between asses in seats and money in the bank. On a positive note, increased passenger traffic means that more people are spending money on travel. Of course, deep discounts are responsible in large part for the increasing traffic. The value of these passengers in dollar terms, therefore, is quite low.

United Airlines reported a traffic drop of 10.5 percent in April 2009 relative to the same month in 2008. Delta and American sustained smaller declines. Southwest, meanwhile, showed a 4.1 percent increase.

And, fares fell.

The average one-way domestic fare paid in the first quarter of 2008 was $213 – compared to $246 for full-year 2008.

For now, however, the airlines believe it’s better to sell seats at any price, especially if they have to put a plane in the air anyway.

Young people focused on traveling, despite economy

by Tom Johansmeyer on

For once, youth isn’t wasted on the young. Young adults who aren’t burdened by jobs, bills or the other trappings of adult life are realizing that they have a chance that will never arise again. They have the elbow room to go out and see the world … and they’re taking advantage of it.

Because younger travelers visit countries for an average 53 days – compared to 3 ½ for business travelers – the segment once believed to be lazy, broke and drunk is being seen differently. For Australia alone, this group is worth AU$11 billion (US$8.5 billion) this year.

Thanks to global economic developments, the definition of youth traveler has been stretched out a bit from late teens to 29 years old. Hey, people in their 30s are moving back in with their parents, so this is fair.

Fairmont joins EMI in the music business

by Tom Johansmeyer on

There’s more to recession-era promotion than cutting rates. In fact, chopping prices is considered one of the least effective ways to remain competitive in a tough market. As everyone races for the bottom, potential revenue is lost, and it’s incredibly difficult to fight the tide. So, anything a hotel can do in this market to improve its relationship with guests is crucial.

For the folks at Fairmont, this is music to their ears.

The upscale hotel company has partnered with EMI Music on a new branded program called “The Fairmont Music Store.” Guests can order and download music at decent discounts, and if you’re a member of the Fairmont President’s Club, you could save even more. In addition to 15 percent off for club members, there is priority access for special events featuring EMI artists.

It’s a bit unusual, but today’s market calls for unusual.

Hookers and artists try to coexist in Amsterdam

by Tom Johansmeyer on

Amsterdam doesn’t want some businesses to grow. It seems unusual in a recession (and yes, the Netherlands is feeling it, too), but I guess the situation isn’t so dire that they can’t be picky over there. So, the locals are fighting the business of naked people with the business of art – which clearly has no history of portraying the uncovered human form (feel free to chortle).

The city of Amsterdam has teamed up with a housing corporation. Together, they are acquiring rooms formerly used as brothels and renting them out as studios to artists. This ground-level contribution to the arts is inspiring. While it’s nice to see an established artist get a hefty grant to pursue a specific vision, the measure taken in Amsterdam gives emerging artists (and even those less established) a shot at success.

Of course, some people didn’t find out in time.

A few prostitute clients have come up to doors that are now art studios, seeking their former flames.

Some working girls aren’t thrilled about this development, according to the Sydney Morning Herald. Since we’re dealing with Europe, you know there has to be a union involved … and the hookers have one. They say that there’s a history of prostitutes and artists living side-by-side, “like they did in Paris in the 19th century.” Further, ladies of the night have inspired their new neighbors, with the most famous probably being Pablo Picasso‘s “Ladies of Avignon.”

Given the plunge in the global art market, one thing is certain: people will continue to get screwed in these apartments.