has the travel economy turned the corner?

Has the economy turned the corner? The collapse of the credit markets in the fall of 2008 was devastating. My own sales dropped 38% from the preceding month in October '08. For the six months following the crash, my sales were 15% lower than the six months preceding the crash.

2010 has started with a bang. While my own experience is hardly paradigmatic of the entire economy, January and February, 2010, have been the two busiest months I have ever experienced (and many of my colleagues at Brownell make similar reports). I specialize in luxury travel, so I cannot speak to what is happening with mass market travel, but these are some impressions I can convey about the state of the luxury travel market.

(1) There are long hold times when calling wholesalers who put together packages to Hawaii, Mexico, and the Caribbean.

(2) Third, fourth, and fifth-night free rates continue to be very popular with upscale travelers and have helped fill these properties. Throw in hotel amenity programs that include such as free breakfasts, spa credits, lunches or dinners, and there continue to be some compelling luxury values out there.

(3) Hotels have been willing to extend upgrades at the time of booking in order to make a sale, especially with preferred partners who send them lots of guests.

(4) Now is the time to take advantage of these values. As the economy continues to strengthen, these steep discounts will become harder to find. In the long term, this is good news for the luxury traveler, because it's in everyone's interest for luxury hotels and resorts to return to profitability.

(5) If you normally stay at mid-level hotels (Marriott, Sheraton, Hilton, etc.), take a look at some of the values you can get at Four Seasons and Ritz-Carltons in the destinations you're visiting. With discount programs still in place - and generous hotel amenity programs that will continue even when the discounts are over - you can often enjoy the best for practically the same price as the big mass-market chains charge.


hotel amenity programs (search here on Google)

copyright (c) 2010 by David Ourisman LLC. All rights reserved. If you have comments on this column, or questions about booking travel, email me or visit my website.
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