A gloomy travel market for 2010 will follow an ugly 2009

by Tom Johansmeyer on

Everybody seems to want the travel market to recover next year, but it looks like more time will be spent in yards, instead. According to a new USA Today/Gallup poll, only 16 percent of us are going to hit the skies or crash in hotels more than we did in what will go down in history as a dismal 2009. Close to a third said they are going to spend less time in guestrooms and cramped plane seats. The main reason, of course, continues to be the state of the economy.

Slow improvements to the economy, according to some industry analysts, should push demand for tickets and hotel rooms higher – not to mention services related to the convention and meetings business. But, the baseline is set pretty low, with 2009 having been so weak. American Express, the largest travel agency in the world, doesn’t see a recovery coming anytime soon.

The bar has been reset, and it’s low. It will stay low for a while.

The big beast to be tamed in the travel market, doubtless, is business travel. Until the corporations start to send people on the road more liberally, the airlines, hotels and other businesses involved in travel will continue to feel the squeeze.

What’s going to happen by sector? See below.

Airlines: Industry analysts see hints that the market is turning, with demand for seats up year-over-year (by month) since May. United Airlines sees “a very encouraging trend line,” and US Airways notes a steady improvement. But, the latter continues that a decline of 30 percent to 35 percent in corporate spending has been a drag, and November was the first month in which it was up year-over-year. And, November 2008 wasn’t a tough month to beat.

Analysts believe that “even a modest rise in the USA’s gross domestic product,” says USA Today, will kick the airlines back into profitability. Gary Kelly, CEO of Southwest, isn’t that optimistic, telling the newspaper, “Business travel still lags, and I don’t know that I’m comfortable in reporting that we’ve seen any improvement in that market.” He doesn’t expect business travel to bounce back next year.

Hotels: What can I say that Melanie Nayer hasn’t? Not much, really. The past year has been miserable, with PricewaterhouseCoopers reporting occupancy plunging to 55.2 percent this year, from a 2006 peak of 63.3 percent. Next year, it’s expected to tick up only to 55.8 percent.

Room rates fell precipitously in 2009 relative to 2008, causing an average decline of 16.4 percent in the industry’s average revenue per available room-night. PwC expects 2010 to be worse than 2009, conflicting with the Business Travel Monitor report from American Express. But, there’s room for both views. Leisure travelers will have to spend a bit more, but hotels in business-heavy markets will still win some favorable pricing.

Conventions: Look for a slight increase next year – again, relative to a brutal 2009. For the good news about the conventions, you’ll have to wait until 2011 and 2012, says Roger Dow, president of the U.S. Travel Association. Through the end of 2010, approximately 40 percent of corporate and association meeting planners, reports USA Today, are likely to postpone or sink off-site meetings for the next year.

Southwest & SkyMall Bring Yetis & Slankets to New York City

by Mike Barish on
The Southwest Porch in Bryant park has been around this the summer and has provided locals are tourists strolling through that Midtown greens space a place to relax, have a drink and grab a snack inspired by the cities that the airline services. But for three days this week, Southwest has invited Gadling’s favorite catalog, SkyMall, to join the party. With Slankets featured on the cover of the Southwest edition of the catalog, SkyMall made sure to bring plenty of the blanket/robe hybrids to keep guests warm and give away to some lucky attendees. And, one of the catalog’s most popular character’s, the Garden Yeti, was there in a Slanket all his own.

Not being able to resist anything SkyMall-related, I attended the opening night of the event and spoke with SkyMall’s VP of Airline Marketing, Casey Christ. He said that the partnership with Southwest was “natural and helps us connect with our fans outside of the flying experience.” Throughout the evening, attendees who entered the free raffle won Slankets. And one very lucky winner took home her own Garden Yeti.

And where does one find a Slanket that fits 28″ tall Garden Yeti? Well, Mr. Christ took a full-sized Slanket to his local tailor in Phoenix – along with the Garden Yeti – and asked her to make the proper alterations. I salute that talented woman, who I assume remains quite confused.

SkyMall will be joining Southwest at the Southwest Porch today and tomorrow to give away more Slankets and Garden Yetis. If you’d like to join them, be sure to RSVP in advance. The Southwest Porch will be open for snacks, drinks and lounging by their fire pit into January, when they will shut down until New York warms up again.

%Gallery-80425%

Southwest and FedEx planes bump wings

by Katie Hammel on

A Southwest Airlines jet bound for Albuquerque clipped wings with a Fed Ex cargo jet Sunday at the Salt Lake City Airport. A spokesperson for Southwest said the jet was about to pull back from the gate when it was bumped by the cargo plane. The pilots had not yet started the engine when they felt the “jolt” of the impact, which sliced off a 6-foot section of the plane’s wingtip.

No one was injured, though there was some initial confusion as to what caused what one passenger said felt like “a mini-earthquake”. The passengers were able to move to another plane for take off; the affected jet was repaired and put back in service.

While on the ground collisions between planes are rare, they do happen. A different Southwest plane clipped another passenger jet with its wing back in March.
%Gallery-76818%


Southwest and Virgin celebrate Thanksgiving with sales

by Katie Hammel on

Here are two more things to be thankful for this Thanksgiving – Southwest Airlines and Virgin America. Both carriers have announced Thanksgiving sales to celebrate the holiday.

Sample one-way fares in Southwest’s seven-day sale include: Austin to Houston for $59, Baltimore to Chicago for $97, Chicago to Las Vegas for $148, Denver to Milwaukee for $96, Fort Lauderdale to Long Island for $103, LA to Oakland for $59, Orlando to Nashville for $94, and Portland to Spokane for $58.

Fares start at $47 (and go up to about $159) each way plus tax. The tickets must be purchased by November 30 and are good for travel through February 9. A 14-day advance purchase is required, travel is valid every day except Fridays and Sundays, and there are a few blackout dates.

Tickets for Virgin’s sale must be purchased by December 2 and are valid for travel December 3 to 17. One-way fares range from $59 to $249 and include LA to Seattle for $79, LA to New York for $169, and Las Vegas to New York for $249.

The Western will never die at Old Tucson Studios

by Sean McLachlan on

The Old West was a place where there were gunfights on every street, the bank got robbed every day, and every saloon was filled with girls dancing the can-can.

Well, actually it wasn’t, but that’s the way it seems from the movies, and a lot of those movies were filmed at Old Tucson Studios.

Located a short drive west of Tucson, Old Tucson Studios is the perfect place to film a Western. There’s an entire recreated Western town there surrounded by Arizona desert, with the Tucson and Catalina Mountains providing a scenic backdrop. Oh, and the sunsets are more beautiful than anything you’ll ever see on the screen.

The main attraction at the studios is the town itself, which has provided a backdrop for seventy years of films. Movie buffs will be in a constant state of deja-vu. Wasn’t that saloon in The Outlaw Josie Wales? Isn’t that the ranch from Bonanza? In case you’re having trouble playing Spot-The-Set, there’s a seventieth anniversary exhibit on right now showing never-before-seen production stills from some of the many films that used Old Tucson Studios. A preview video can be seen here. Some of the employees are really knowledgeable, so you might want to go on one of the historical tours.

There’s plenty going on too. Costumed performers rob the bank, there are gunfights full of stunts, and even magic shows and train rides. It’s all a bit hokey, but that’s part of the fun. Kids love it.

Unfortunately there was a bad fire in 1995 that destroyed many of the buildings and irreplaceable movie history, but there’s still plenty left to give you a good dose of movie nostalgia. So saddle up and ride down to Tucson, and while you’re there you might want to see some more of the Old West attractions southern Arizona has to offer, such as the ghost towns, the Saguaro National Monument, and the Old Spanish Trail. Tune in next time when I’ll be talking about Tombstone, a real Wild West town.
.