Archive for Sunday, August 31, 2008
Travel trends spark worries
Visitor numbers, spending down
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Steamboat Springs Tourism industry officials are keeping an eye on travel to Las Vegas and Florida as they puzzle about what to expect this season.
"They've been in a very, very bad place in terms of bookings to date," Andy Wirth said. "And talking to a few folks who are very involved in Vegas, for instance, the numbers in Vegas are quite distressing in that segment."
Wirth is chief marketing officer for Intrawest, Steamboat Ski and Resort Corp.'s parent company. He said that domestic travel was down, partly because of the economy, and that tourists are staying for shorter amounts of time and spending less money per day.
The figures Wirth looked at represent the past 90 days or so, he said last week. The trends, if they appear in Steamboat, could affect restaurants and retailers, as well as the Steamboat Ski Area.
"I think it's something to be aware of for local vendors," Wirth said. "While there are (data) that suggest we're starting to see an uptick in the economy : I think we'll still be experiencing this drop in spend per day."
He said he expected Steamboat Springs to feel the effects of a down year in tourism.
"I think we'll see the ripple effect of that," Wirth said. "It shows up in tax collections of the city."
Wirth said it was too early to tell whether bookings would be down for the ski season, which starts Nov. 26 in Steamboat.
"We have in between 8 and 11 percent of the season 'on the books,'" Wirth said. "If you equate it to voting day, it's really only 9 a.m. in the morning, and we only have 10 percent of precincts reporting. It's too early to call a winner or a loser."
Steamboat Central Reservations typically rolls out deals in an attempt to increase the length of visitors' stays. Those programs, often implemented in January or March, allow people to buy four or six nights and get the fifth or seventh free.
None of those is deployed yet, Wirth said.
He also expressed concern about a possible slowdown in the international market. The U.S. dollar is strengthening, and the United Kingdom is experiencing an economic downturn, Wirth said.
But not all the news is dismal. Crude oil, which had edged toward $150 a barrel earlier this summer, was trading at $115 a barrel Friday. That's cutting airlines a break, Wirth said.
"Carriers are getting a reprieve, and carriers like Frontier Airlines are getting a reprieve," he said. The company saw a smaller loss in July than it had in previous months, the Rocky Mountain News reported Thursday.
The airline is in Chapter 11 bankruptcy. It posted losses of $22 million in May, $8.8 million in June and $3.2 million in July, the newspaper reported. The company also announced this month, however, that it was changing the mileage structure and adding fees to its EarlyReturns program.
Still, Wirth said, the airline's outlook is improving.
"I think some of the views we've had in the past about their longevity are basically fading to the back," he said. "I'll go on record saying I think with this reprieve they're getting another shot. : We might see something pop up in the future for Steamboat."
Wirth was referring to rumors that Denver-based Frontier might add a Steamboat flight. He said Ski Corp. officials had been in only "very initial discussions" with Frontier management.
Analysts have divergent views on whether the price of oil will hold steady, fall or rise again, Wirth noted. Overall, he said, a drop in oil prices would help local tourism.
"With crude and with fuel being what it is, this actually really alleviates some of the pressure on airline pricing in the marketplace and really, in essence, allows airlines to be a lot more responsive when it comes to demand and price," Wirth said. "That benefits us as a resort and a region."
- To reach Blythe Terrell, call 871-4234 or e-mail bterrell@steamboatpilot.com

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