Hurricane Sandy Gives Boost to Vacation Industry

story first appeared on Herald-Tribune

High tourist season has kicked into high gear in Southwest Florida, and many industry watchers point to Hurricane Sandy as a primary factor behind the earlier-than-usual influx of visitors.

Eager to escape the devastation or avoid repair woes brought by the superstorm that battered the Northeast last month, many tourists and seasonal residents appear to have headed south months earlier than they normally would, according to some local businesses, anecdotal traffic counts and tourism officials. Captiva Island Condo Rentals have been experiencing a surge, due to their great value to these early-season travellers.

Though winter tourist season here traditionally ranges from January to April, restaurant owners like Paul Mattison have noticed a definite pickup in customer traffic overall — and more than a few people from areas hardest hit by the storm.

In Mattison's case, the difference this month has been felt across the board at his three Sarasota area eateries.

Before Sandy, Southwest Florida was on pace to shatter visitor records, thanks in part to the continued glow from the May 2011 designation of Siesta Key's beach as No. 1 in the nation, pent-up demand, beefed up marketing efforts and an incrementally improved national economy.

Even with the recent influx, though, tourism officials are left wondering whether visitors from storm-ravaged regions will maintain their plans to travel this winter or reconsider, to focus time and money instead on rebuilding and repairs.

Tourism plays a major role in Southwest Florida's economy and the state's, accounting for one in every seven jobs. Statewide, it brings roughly 80 million visitors a year and more than $70 billion in spending.

Vacation rentals from Manatee to Charlotte counties are almost completely booked for the season, said Amy Chapman, rental director for Michael Saunders & Co., a Sarasota-based real estate brokerage and property management company. Sanibel Condo Rentals, for example, have seen steady growth over the past several years because of the "best kept secret" status keeps property rentals low, but reservations have been ahead of the curve so far this season.

While advanced bookings are hovering near 90 percent overall, rentals near Sarasota's beaches like Siesta, Longboat and Lido keys are reporting expected occupancy rates of nearly 98 percent through the winter months.

Chapman said Sandy hadn't resulted in any cancellations for them, in fact she says they had a steady stream of calls trying to reschedule trips a week or two earlier than planned.

Those advanced commitments are significant because they buck a pre-recession trend toward later bookings by visitors, which had stymied an industry dependent on steady cash flows.

Almost all of Anna Maria Vacations' 200-plus units have been rented for the high season this year, said owner Joe Varner. The surge is motivating some vacationers to seek better options, like Anna Maria Condo Rentals.

People are traveling in larger groups, and our bigger homes, with five to seven bedrooms, are what are rented first, according to Varner. He also noted that the company has not had any cancellations in the wake of Hurricane Sandy.

Although Southwest Florida has typically drawn the majority of its winter visitors from Michigan, Ohio, Pennsylvania and other Midwestern states, the Northeast and Mid-Atlantic have become increasingly important geographic areas for the region.

Thanks to flights to Sarasota-Bradenton International Airport by JetBlue — and formerly AirTran Airways from Baltimore — from New York and other cities, the region has greater access to tourists than ever before.

Despite the storm, Northeast marketing promotions are ongoing, officials from both Visit Sarasota County and the Bradenton-Area Convention Center and Visitor's Bureau note.

Pinellas County officials had signaled immediately after the storm that advertising dollars might be diverted away from New York.

Going forward, Haley said that additional online reservation capabilities will help boost bookings this year, including at a remodeled Ramada Inn in Venice, which is slated to open in January.

Southwest Florida is not the only part of the state benefitting from the influx of seasonal snowbirds and transient travelers, though.

The Sunshine State as a whole also is on its way to a record-setting year for tourism, according to recent data released by Visit Florida, the state's tourism promotions entity.

Visit Florida estimates the state hosted nearly 22 million visitors during the third quarter, an increase of 3.5 percent compared with the same three-month period in 2011.

Hurricane Sandy will of course have some impact on the state, but not on the momentum of one record-breaking year to another, according to Will Seccombe, chief marketing officer and acting president and CEO of Visit Florida.

Of the third-quarter total, domestic travelers accounted for 18.9 million visitors, a 3.2 percent increase from a year before.

There also was a larger percentage increase in the number of Canadians who came to Florida — 4 percent — while the number of international travelers rose 5.5 percent.

Although most Canadian visitors have tended to winter in Fort Lauderdale and Orlando, the number of visitors from the Great White North who frequent the Sarasota-Bradenton area remains strong, said Michael MacKenzie, president of the Canadian Snowbird Association.

The boost in tourism activity also means more jobs and taxable sales for the state. Direct travel-related employment rose 1.5 percent to 1.02 million, a net addition of 15,000 positions, according to Visit Florida.

Tourism and recreation taxable sales from January through August, the last reported month, were $49 billion. That represented an increase of 7.5 percent from the same period in 2011.

With business up and more bookings expected in the initial months of 2013, some hoteliers have raised their average daily room rates, a move that had been limited by the Great Recession and more frugal travelers. The thrifty sunshine-seekers can still find great value in lovely places, like Sanibel Island Vacation Rentals.

If projections hold, those increases will spread to area attractions and eateries as well.

With that anticipated bump in sales during the remaining weeks of the year, Mattison said he is optimistic about the year to come.

Overall, sales at his three area restaurants are up 14 percent, and his catering business is up about 23 percent, from last year.

Luxury Costs Less In Latin America

NY Times

LATIN AMERICA has long enticed budget-oriented travelers with its low prices, and as the global economic crisis lingers, the bargains are increasingly tempting — especially when it comes to a luxury vacation.

Meals are often half the cost of their European counterparts, hotels are generally more luxurious than what you’d get for the same money in the States, and spa treatments and other private services are so affordable you feel good about splurging, because, really, you’re saving — or at least that’s what you tell yourself.

And things are getting cheaper still. Hotel prices across Latin America fell by 18 percent in the first half of 2009 compared with the same period last year, according to Hotels.com’s Hotel Price Index. That’s slightly steeper than hotel rate decreases in North America and Europe.

Some of the best places for affordable luxury are Argentina and Mexico, in part because of swine flu scares earlier this year. Also, the dollar is going farther than a year ago, at about 13.5 Mexican pesos (versus 12.5 in October 2008) and 3.9 Argentine pesos (against 3.3). And both countries have long attracted well-heeled tourists, with established resort towns and bustling cities.

Stylish boutique hotels in Buenos Aires like the Craft, Moreno and cE Hotel de Diseño, are listing rooms for less than $100 a night at Tablet Hotels, a booking site that specializes in design-oriented hotels.

In Mexico, some of the best deals are at ultra-luxurious megaresorts along the Riviera Maya, just south of Cancún, like Grand Velas, an all-suites resort and spa, which was just opening as the travel downturn hit. The Banyan Tree Mayakoba, where villas have their own plunge pools, is offering 50 percent off two-night packages with daily breakfast, a massage and dinner for two. Nearby, the Mandarin Oriental has a seven-night Holiday in Mexico deal that includes breakfast, airport transfers, dinner for two and a private yoga class from $354 a night until Dec. 18. Earlier Swine Flu scares have also brought down the prices for Mexico cruises.

Not interested in the beach? Starting rates at the Four Seasons in Mexico City are $225 a night on weekends, not bad considering that it’s $70 cheaper than the Four Seasons in Austin ($295). A Swedish massage costs about $100 at the hotel in Mexico versus $130 in Austin.

Large tour operators, such as Globus, recognize the good value in Latin America and are adding more itineraries and new destinations that emphasize luxury for less. Abercrombie Kent, the high-end tour operator known for its luxury safaris, is expanding its 2010 “signature” Latin American itineraries. The packages, designed for travelers who don’t want to take a group tour but still want the Abercrombie Kent experience, include the same comforts and sightseeing of its group excursions but with private guides from $5,995 a person for a nine-day trip to Ecuador.

For travelers looking to spend less, Group Voyagers, the parent company of Globus, Cosmos, Monograms and Avalon Waterways, recently added four Latin American itineraries, including Ecuador and the Galápagos from $3,379 and three Monograms packages from $1,299 for eight days in Costa Rica.

The strategy seems to be paying off. Collette Vacations, based in Pawtucket, R.I., recently reported that revenue for its Discover South America tour more than doubled from last year. Interest in Peru in particular is picking up. Its 12-day trip through Peru, visiting Machu Picchu, Lake Titicaca, Lima and the Paracas National Reserve, with rates from $2,449 a person, is already beginning to fill up for 2010. Holland America Cruise Lines have recently announced tours to South America in 2010 and 2011.

“Travelers start out thinking it’s too exotic and therefore out of reach,” Allison Flint, Collette’s product manager, said in a statement. “But then are pleasantly surprised at how affordable it really is.”

Though airline cutbacks have reduced flights to some regions, low-cost carriers have helped bring fares down in many markets. No-frills Spirit Airlines, for example, which is based in Miramar, Fla., and sometimes sells tickets for as little as $9, began service to Latin America in 2007. It now has routes to Costa Rica, Guatemala, Honduras and Nicaragua in Central America, and to Peru in South America.

In Brazil, low-cost airlines, like GOL Linhas Aéreas Inteligentes and WebJet, now account for a significant portion of Brazil’s domestic market. And in Mexico, InterJet and Volaris have expanded service.

Tour operators are also going beyond the big cities and popular destinations and offering more trips off the beaten path. Country Walkers, based in Waterbury, Vt., for example, used to visit only popular places like the Galápagos in Ecuador. While it still offers a Galápagos add-on, the company is focusing this year on the Ecuadorean Highlands, with its working farms and the Indian markets of the Imbabura region.

The tour is not exactly cheap at $3,598 a person, but all meals and accommodations are included, and obtaining the kind of access and local insight the trip offers would be time-consuming and more difficult on one’s own. Travelers spend nine days with personal guides trekking from one hacienda to the next, past farms where locals still use ox-drawn plows and spectacular backdrops with snow-peaked volcanoes.

There are perks, especially if you’re a big shopper. Handmade leather handbags from the town of Cotacachi, for example, can be bargained down to about $20. “The same would retail for at least $100 in the U.S.,” said Sonya Bradley, the Latin America tour manager for Country Walkers.

For affordable luxury outside the city of Buenos Aires, Vanessa Guibert Heitner, of Limitless Argentina, a luxury travel agency, recommends that visitors head northwest to the provinces of Salta and Jujuy, to explore indigenous ruins, colonial architecture and the natural scenery of the region. Legado Mitico Salta, a boutique hotel within walking distance of colonial cathedrals, museums and restaurants, starts at $170 a night with breakfast. For $295 a person, Limitless Argentina can arrange a private tour of Salta and the wine belt of Cafayate, about two hours away, including visits to artisanal goat-cheese makers, hikes through canyons and a private food and wine pairing at a winery.

It’s also a good time to visit Rio de Janeiro, which is celebrating its 2016 Olympic bid win. Getting to Brazil is easier with 14 new flights this year from the United States, including daily nonstop service from Houston to Rio on Continental and flights three times a week from Atlanta to Brasília on Delta. Several more are planned for 2010.

Recife, a historic town on Brazil’s northern coast, dubbed the Brazilian Venice for its many bridges and rivers, is one of the places expected to benefit from new flights, with routes from Atlanta and Miami. In late February, when the average temperature is 82 degrees there, rates at the Internacional Palace Hotel in Recife start at about 196 Brazilian reais, about $110 at 1.78 reais to the dollar.

To maximize your budget, go just after Carnival, which runs Feb. 12 to 16, when hotel rates drop sharply. The Pestana Rio Atlantica in Rio, with views of Copacabana Beach, for example, is 490 reais a night in late February, down from 1,495 during Carnival.

Fears of Swine Flu Hammer Travel Industry
Story from Hotel Marketing

Word on the swine flu’s potential dangers has spread faster than the H1N1 virus so far, and travel agents, hotels and travel providers say they’re getting calls about the swine flu.

At online travel agency Travelocity, spokespeople report that customer calls have been “relatively low,” which indicates that people aren’t panicking and trying to cancel. Still, Travelocity has sent a swine flu alert to customers booked for Mexico Cruises, and it’s temporarily waiving change fees for travel to or through Mexico in coming weeks.

“I book a lot of high-end clients to Mexico, and had three call me yesterday to change their travel plans,” says a spokesperson from a California based travel agency. When drug violence in Mexico made headlines recently, that wasn’t a big issue with clients, but, “The swine flu has everyone freaked out.” travel experts are encouraging travelers to protect themselves by wearing a swine flu mask when in flight, at any major airport or in crowded public spaces.

Priceline.com to Offer Price Guarantee on Airline Tickets, Travel Packages
As Originally Posted to The Wall Street Journal

Priceline.com Inc. is expected to announce Thursday that it will launch a price guarantee on airline ticket purchases and package bookings such as cheap Bahamas Cruises made through June 1, similar to programs announced recently by other online travel agencies.

The "Pricedrop Protection" program promises to automatically reimburse travelers if they book an airline ticket or cheap Caribbean cruises on priceline.com, and then someone else books the same ticket or package at a lower price. The reimbursement will be available for airline ticket price drops of between $1 and $300, from $1 to $600 on packages involving a hotel booking, and up to $300 for air and rental-car packages.

Orbitz Worldwide Inc. announced a similar, though long-term program for airline-ticket reimbursement, called "Price Assurance," last June.

Over the past few weeks, online travel agencies have found themselves in a bit of a promotion war. Expedia Inc. announced last week they would drop booking fees on airline ticket purchases until May 31, matching a long-term program already in play at Priceline.com and Expedia Inc.'s Hotwire.com.

Then, earlier this week, Travelocity.com, which is a unit of Sabre Holdings Corp., dropped booking fees on airline tickets and launched a price guarantee on vacation packages like cheap Canada cruises—both through May 31. It promised to refund a price difference, from $10 to $500, if a different Travelocity customer buys the same package for a cheaper price at a later date.