Hotel & Motel Management - September 18, 2007 - (Page 12)

12 Travel Trends IN THE details Effects of price increases All-time high in 1981 Travel plans could change Americans won’t cancel trips By Peter C. Yesawich H&MM Columnist H&MM September 18, 2007 | HotelMotel.com www.HotelMotel.com/digital_edition Gasoline prices cause concern, not alarm he price of gas at the pump continues to make big headlines in the consumer and travel press. And for good reason: More Americans (81 percent) will drive their personal vehicle to a vacation destination at least once this year than use any other form of transportation. So it comes as no surprise T that many industry analysts keep a watchful eye trained on ﬂuctuations in the price of oil, and we have observed some fairly signiﬁcant variations in the wholesale price per barrel over the past six months. It is interesting to note, however, that these gyrations have been caused less by a reduction in the actual amount of oil pumped by the major exporters and more by constraints in reﬁning what comes out of the ground. The result has been a rather dramatic run-up in the price of gas at the pump, resulting in press reports declaring “the price of gas has reached an ‘all-time’ high.” This, in fact, is incorrect because the inﬂation-adjusted price of gas reached an all-time high in ©2007 Hilton Hospitality, Inc. 36USC220506. Minnesota UFOC Registration No. F-1059. Family value. Without the family drama. We all have issues. But with the Hilton Family’s network of support, the only drama will be on daytime television. When you invest in the Hilton Family of Hotels, you’re investing in more than a property. You’re investing in a philosophy, a promise to be hospitable. ® When you invest in one of our eight distinct brands, you’re backed by more than a powerful network of support, you’re backed by a family. So no matter which brand you choose to develop, the Hilton Family will be there for you. For franchise opportunities, visit hiltonfranchise.com or call 1-800-286-0645. In addition to franchising, we also offer Hilton Management Services, providing strength in numbers and a family tied to performance. For inquiries, please visit hiltonmanagementservices.com. TM America in March of 1981. The price per barrel of oil would have to be $90 today to surpass that criterion, and the price per gallon of gas at the pump would have to be $3.38. As of this writing, oil was trading at $73 per barrel and gas at the pump averaged $2.77 per gallon. Nevertheless, there has been speculation about what would happen to demand for travel services (including lodging) if the price of gas keeps rising. Will Americans continue to take driving vacations? Would a signiﬁcant percentage just stay home? And what price per gallon represents the dreaded “tipping point?” These are just a few of the questions we posed in a national survey we recently conducted in conjunction with the Travel Industry Association of America called “travelhorizons.” As revealed in the results of this national survey of 1,546 active leisure travelers: Nine out of 10 travelers (87 percent) expect gas prices to rise this year. The price per gallon at which the slight majority of American travelers said they would change their vacation plans is $3.50. Six out of 10 (61 percent) travelers said they would change their vacation plans if the price at the pump reached $3.75 per gallon. When asked how their plans would change, the most frequently mentioned responses were “take fewer trips” (35 percent) and “cancel my trip” (31 percent). One out of four (26 percent) travelers said “drive a shorter distance” or “postpone my trip until the price of gas comes down.” Interpretation? Americans clearly are concerned about the price of gas. But their desire to travel remains robust. So should we fear the tipping point? Clearly, we have to be concerned, but there is little evidence to suggest the outcome will be as dramatic as the media would lead us to believe. hmm@questex.com Peter Yesawich is president and c.e.o. of Ypartnership. He can be reached at peter.yesawich@ypartnership.com. CIRCLE NO. 133 http://HotelMotel.com http://www.HotelMotel.com/digital_edition http://hiltonfranchise.com http://hiltonmanagementservices.com http://hiltonmanagementservices.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - September 18, 2007

Hotel & Motel Management - September 18, 2007 Contents Vista Inns Redefines Business Model Conley Applies Satisfaction Theory to Boutique Hotels Questex Acquires Oxford Publishing Perspective At Your Risk Consultant’s Corner Sales Clinic Travel Trends On Finance Franchise Law Cornell Insights HotelWorld Update Training Trends Satisfaction Trends Management Trends Speakers Named, Registration Open for IH/M&RS Going Green Saves Green Trends & Stats Vacuums Go the Extra Mile Transactions Offsetting Emissions is Newest Sustainability Initiative Minibar Advancements Supplier News People on The Move ADA Compliance Can Be Easier With Programs Business Travelers Interested in Remote Check-In/Out Awards Markets Dictate Renovations vs. New Builds More Development Opportunities Available Top Hotel Companies Survey The Lodging Conference Previews Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - September 18, 2007

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