“The twin effect of the economic downturn and the
increase cost in gas prices just has people more
economically-minded than we have seen since 2001, “ says Rod
Caborn, executive vice president, at
Ypartnership,
a leading consumer research firm.
Another piece of great news...except that this quote is
coming from HotelMarketing.com and is directed at the hotel
chains and particularly the Super 8's and Days Inn type of
properties. Higher end properties seem to be exempt from
these concerns.
Others offer a more upbeat assessment of the US
market. "It's not quite as terrible as Wall Street makes it
out," says Jan Frietag, vice president global development
for Tennessee-based
Smith Travel Research. He suggests the gloom cast by
Wall Street's credit woes has led to a "disconnect between
Wall Street and the Main Street operators."
Most certainly, we in the B&B and Country Inn business
would fall into the latter category...the higher end.
There is some concern out there that we may again see a
round of lodging discounts as we saw post 9/11 in an attempt
to fill rooms. Needless to say, that type of random
discounting didn't work and there is no reason to believe
that it either is necessary or will work now.
From a series of our own phone calls, emails, and other
personal contacts, we're hearing some pretty positive things
about the summer. Rates are in many cases up...advance
bookings are coming in...and the consensus is that Americans
will still be taking vacations, tho' fewer will go to Europe
because of the weak Dollar/Euro exchange. So where will
Americans go and stay? Here at home! For 2008, we have a
traveling American public and projections for more Europeans
and Canadians coming to the US for their vacations. Could
make for a good mix!
It's still not too late to evaluate your rates during the
shoulders and/or even to see if there is any upward mobility
for measured peak season rate increases. The point is that
once again, there is still time to take a look at your
strategies to drive business to your inn. Look again at
your site for relevant content, good pictures, creative
packaging, and to be sure you are offering (your promise!) a
uniquely wonderful experience to your guests.
The business this year may come with some aggravations,
but creative innkeepers will be the ones to garner the
lion's share of the business in 2008. Don't sit on the
sidelines and just let things happen...be one of the movers
and shakers and make things happen!
As always, we love
to hear how you are seeing the market and what you are doing
to be one of the movers and shakers!
Rick
