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Gas Prices, War Have Little Impact On Early Resort Bookings
By J.D. O'Connor October 31, 2005
There may be more powder on grandma's Bundt cake than on some mountains but that hasn't hurt the ski travel industry, which reports an average 25 percent increase in early bookings at resorts from Aspen to Zermatt over this time last year.
Industry experts say there are a number of reasons for the spike, citing everything from the generous advance packages offered by resorts, the resurgence of ski-specific travel agents, gasoline vouchers, a favorable holiday calendar and the expansion of air carriers offering low cost flights attractive to skiers.
"After 9/11, and with the war in Iraq, U.S. travelers were hesitant to book their winter vacation too long in advance with the frequent result that the air carriers and hotels were already sold out," said Daniela Gugliotta, Marketing Director for SkiEurope/SkiCanada.
"There's no doubt, on the days following Thanksgiving, we will get the heavy load of calls attempting to book Christmas in the Alps. They'll still be disappointed. But this year, it's other Americans, not Europeans, that have beaten them to the punch."
Gugliotta and other travel experts who spoke with Industry Report attributed much of the recent surge in bookings to a change within their industry - an emergence of travel agents as a long-missing sales and distribution channel for winter ski vacations.
"As the agency community has withered, there has been a significant shift to independent and home-based agents who tend toward product specialization and sale ability," she said. "The agency education and accreditation organization, The Travel Institute, has just created a training course and certification for Ski Specialists. We believe in this initiative... and are supporting the program with enhanced commissions and benefits."
With these factors in place, a reverse dynamic is in effect as ski tourists shake off concerns about security and gas prices and take advantage of discounts and travel specialists aimed at getting them to commit their vacation plans early and with a specific resort.
And the rooms are getting snapped up quickly. Winter reservations at Jackson Hole, Wyo., are up 41 percent compared with this time last year, according to Jackson Hole Central Reservations. Industry watchers in the Lake Tahoe Visitor's Authority cautiously predict a 20 percent jump in bookings at Tahoe inns this winter over last. In Utah, the prognosis for a busy winter is equally optimistic.
"Bookings in Park City are on pace with last season, which was a record winter season for us..." said Craig McCarthy, communications manager for the Park City Chamber Bureau. "The Christmas/New Year's holiday season is filling up quickly. Delta Air Lines' expansion at its Salt Lake City hub should also be beneficial for us."
Park City is 36 miles from Salt Lake's airport (normally a 45-minute drive), a fact that has proven appealing to skiers/boarders who know they can fly in during the morning and be on the slopes by afternoon. Ski travelers mindful of the logjams created by security checkpoints at their local airport are picking destinations close to air hubs in order to spend less time in line and more on their mountain of choice, experts say.
In the East, blessed with an unexpected but welcome snow storm last weekend which left up to a foot of snow in some areas, reports were optimistic.
At Bolton Valley, Molly Mahar reported bookings "significantly ahead" of last year. Killington's Tom Horrocks said booking is "strong," but added there was still space available for Christmas and New Years revelers. Okemo's Bonnie MacPherson said the booking pace was "great."
"Compared to the same time last year, Okemo is up 23 percent in units booked... a 28 percent increase in revenue," MacPherson said. Other New England resorts reported similar interest, but with customers asking about special promotions and expressing concern about the high price of gasoline.
This new, "intelligent buying" approach to bookings has apparently caught on with our European and British cousins, too. Industry watchers noted a 33 percent jump in early bookings from the British Isles to resorts near Geneva, Switzerland after UK-based EasyJet expanded air service there - putting Scottish and British skiers within a short train, bus or car ride of Chamonix, Portes du Soleil and Courmayeur.
Travel industry insiders have been busy analyzing the reasons behind the jump in bookings. Many customers appear to have been spurred by an interest to spend Christmas and New Year's Day, both of which fall on a weekend this year, skiing in the mountains. But aside from that, what do the experts know about their customers?
"There is an enormous growth in the affluent upscale market segment," said SkiEurope/SkiCanada's Gugliotta. "These customers seem unaffected by the economy, the dollar, and other factors. We have seen a substantial increase in the average revenue per booking. This year, Alpine Adventures launched a luxury product catalog featuring only deluxe five-star hotels, and it is selling well."
And what of the bargain-conscious folks at the other end of the spectrum?
"A couple of years ago, there was a very strong low end market for Europe attracted by inexpensive prices, driven by a strong dollar, as low as $499 (air from New York to Innsbruck, six nights in a 3-star hotel). The same trip today is $669; even though that's still a great value, the bottom market has evaporated," Gugliotta said.
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