Travel plan idea blog

The Galactic Suite Space Resort and Virgin Galactic have customers lined up but do they have enough?

According to this article, Virgin Galactic has 300 customers lined up. The Galactic Suite Space Resort has 43 reservations.

Considering that The Galactic Suite Space Resort, the first "space hotel" only takes 4 guests at a time I guess 43 reservations is pretty good. Then again, the start-up costs must be pretty significant. I suppose the $4.4 million you pay for a 3 night stay in the space hotel must go a long way to covering those costs though.

Is it worth 4.4 million dollars. Maybe if you have it:

During their stay, guests would see the sun rise 15 times a day and travel around the world every 80 minutes. They would wear Velcro suits so they can crawl around their pod rooms by sticking themselves to the walls like Spiderman.

Plus you get 8 weeks training on a tropical island...

Luxury hotels like Four Seasons San Francisco in serious trouble?

This news (if the link doesn't work, just search Bloomberg news for "hotel" - that's actually what I had to do after following the Google link - not sure what's going on there) is very surprising to me. I knew the economy would hurt the travel industry and I've known it has been hurting the travel industry, but this is a shocker:

A $90 million loan secured by the Four Seasons San Francisco, a 277-room, five-star property, is 90 days delinquent and foreclosure proceedings have begun, according to Realpoint. A notice of default has been filed, according to Bloomberg data.

Apparently the luxury hotels really are hurting because some of them borrowed a lot of money before luxury travel took its big hit.

This article talks about the AIG effect, which they say has had a profound effect that is starting to fade:

"Resort communities have been demonized,'' Loews Hotels CEO Jonathan Tisch complained during a recent interview at the company's 790-room hotel in Miami Beach.

For South Florida's hotel industry, the "AIG effect" distinguishes this recession from past ones, with meeting bookings dropping farther and resisting a rebound, industry watchers said.

"Nobody could have forecast the weakness in group bookings", said Scott Berman, a hotel analyst in Miami and head of PricewaterhouseCoopers' hospitality division. "I use the word unprecedented."

And for good measure, we have some travel deals including spa hotels...

Spas, economic recovery hopes & signs

A few days ago, at the bottom of this blog entry, I linked to an article that talked about how going to a local spa might be a good vacation idea for a troubling economy.

So today when I saw this article the title seemed all wrong: "What will signal consumers are back? Check the spa."

Well, I thought, more spending at the spa might just mean the economy is still in trouble so people are opting for cheap vacations that include local spas.

Now in that article there is a brief reference to resort spas - I think I can agree that when resort spas start seeing more more business than consumers are spending again. That means economic recovery since the US economy is driven on consumer spending.

Some of the other signs they mention:

Diners will order big pancake breakfasts again. Business suits will sell briskly. So will name-brand luggage, gym memberships and pricey jeans. Spas will sell more facials and massages.

Anyway, it's an interesting article, not really about travel, but the economy and the travel industry we like to talk about are certainly related.

Remember the old question, will the economy hurt the travel industry? Well we've seen that it has even though there was some doubt.

A few articles for you on flying comfortably and cruise stocks

This article talks about flying business class cheap on Openskies, an airline I had never heard of. Seems like a good one to be aware of though.

If you don't get to fly business class cheap, this article talks about flying more comfortably in coach. Having flown a number of 14 hour flights in coach, I think I've picked up a few things. Eye covers, good headphones, extra pillows, emergency exit seats if possible, asking at the gate if they can reseat you so you have empty seats around you....

Here's an interesting one if you're looking to invest in stock. I'm no expert but I don't feel that it's an especially good time to get in the market overall. Maybe some cruise stocks are good deals now - I have no idea. But some companies want to sweeten their stock by offering onboard credit for a cruise when you buy some stock.

And this vacation idea - a few months in Rome studying Italian and I'm sure enjoying Italy during study breaks.- is exactly the kind of thing I wish I did more often.

Travel marketing: discounts, business changes, & Leonardo DiCaprio wanted to be a travel agent

This article tells us that it's not too late to get a travel deal this winter. In addition to travel deals (including a bunch of luxury cruises toward the end of the article) they talk about changing business strategies:

Meanwhile, some industry giants are changing the way they do business. Liberty Travel, the travel agency chain based in Ramsey, N.J., recently began promising not just to match but also to outdo competitors’ prices by $10 per adult and $5 per child if a customer finds a less expensive airfare, travel package, cruise or tour quote — a pledge the company is calling its Price Beat Guarantee. And the Globus brands, which include Globus, Cosmos, Monograms and Avalon Waterways, have done away with single supplements, typically $550, on 11 new vacations to Europe to give solo travelers an incentive to book those trips.

Very good news for solo travelers.

Speaking of changing business tactics, how about this prediction: no more free travel brochures. It's a UK article but other countries would likely follow suit.

And how's this for a tourism marketing slogan: "experience the city the Obamas enjoy." Apparently the Illinois Bureau of Tourism plans to launch a three-day getaway promotion featuring Barack Obama sites...

And this may not be related to anything, but did you know that Leonardo DiCaprio wanted to be a travel agent when he was a kid?

Finally, about a year ago, I wrote about Korean Air and Asiana flight attendants. The most recent comment (left just a few hours ago) cracked me up:

I flew Korean Airlines from Tokyo to LA today and I was smitten by the beautiful Korean Airline Attendants. They ARE SO BEAUTIFUL and SO ATTENTIVE that I thought I was in heaven....

Thanks for the laugh International traveler.

Expedia stock down as travel industry suffers

Well the economy is definitely hurting the travel industry, and Expedia's earnings are down as a result. This article adds a few interesting bits of information:

Future bookings suggest the market will keep contracting (Chief Financial Officer Michael Adler).

It's a difficult environment.... Any predictions about its depth or duration would be foolish (Chief Executive Officer Dara Khosrowshahi).

Expedia expects air fares to increase in 2009, the first time the industry has seen higher ticket prices during a recession (Chief Financial Officer Michael Adler).

Are profits and stock prices more important than offering employees health insurance?

This story made it to Yahoo's front page for a bit. Seems Disney is trying to save money by making more of its employees unable to get health insurance. If you ask me the Disney execs making millions are the ones who should be going to jail but as usual it's the poor people who suffer. Protest because you want health insurance from a huge company that makes tons of money, go to jail.

By the way, here's a stock market guy claiming that Disney is doing such great business that the US can't possibly be in a recession. So Disney is making enough money to pay its employees. The financial data is here if you're used to looking at stock info.

My parents wanted to go to Disney with my wife and I this winter. I really can't see myself going to Disney until this labor dispute is resolved. I wonder if that resolution will end with more foreign workers in Disney hotels and fewer Americans with health insurance.

Have you ever shipped luggage instead of checking it when you fly?

A few business are doing pretty well for themselves by delivering luggage for flyers. Apparently people are willing to pay what seems like fairly big money to me in order to avoid the hassle of flying with their luggage:

Rates vary depending on the weight, distance and speed of the delivery. For example, sending a large bag (65 pounds) from New York City to San Francisco with a pickup date in five days would cost $149 through Luggage Forward.

To expand its services among everyday travelers, Luggage Forward last year introduced a seven-day "economy" option that typically costs less than $100 for a bag one way.

New resort / water park business strategy

I start classes tomorrow and have to make sure syllabuses are ready and everything so let me leave you with a short one for now.

This article is interesting because they talk to the owner of a new water park about business strategy. It's a 100 million dollar plus deal so no direct benefit to most of us, but since some of our readers have or are interested in starting a travel business I thought it was interesting.

It's also a resort / water park I may want to visit...

Punishing article about YTB and other "card mills"

This article levels some heavy duty criticism at YTB and other "card mills" or travel related MLMs.

First they criticize the YTB line encouraging people to sign up and get their little slice of the 7 trillion dollar travel industry. When asked where the $7 trillion number came from, J. Kim Sorensen (president and CEO of YTB Travel Network) said it may have come from Forrester, a Cambridge, Mass-based travel research company. Forrester says they never did.

So is this a case of false advertising? Why doesn't YTB's president know where that number comes from? Did he make it up?

The next critical comment comes in the form of statistics:

In 2006, YTB made 72 percent of its revenue from the sale of online travel stores and monthly fees and 15 percent from travel commissions. Another 11 percent comes from the sale of training programs and marketing materials and the rest (less than 2 percent) comes from franchise fees and "other."

Now the article implies that this means most people who try YTB will lose money by quoting something from the FTC on MLMs in general inevitably collapsing. I've said it before and will say it again: most MLMs don't require a big investment. When my wife started her NuSkin business I think we paid nothing to sign up, and then around $250 + $15/month or something for a website (which was optional). So we weren't really investing our life savings.

Now YTB charges $500 + $50/month so that's expensive for an MLM. And the criticism is valid. With NuSkin, you can make more money by recruiting people into the business but you can make a living just selling the products. I really wish I knew what percentage of NuSkin's profit came from product sales because YTB's 15% from travel sales seems extremely low.

The third criticism refers to travel perks. YTB advertises that their agents are eligible for them though in truth most don't deserve any. One person who quit YTB said that in his experience people laughed at him when he showed his YTB card and asked for a travel agent rate. That's probably because of my own criticism that anyone can join so you get a lot of bad people.

The fourth criticism explains why most YTB agents don't deserve discounted travel: the average YTB agent makes $82/year in travel commissions. Now when you're paying $500 + $600/year, that $82 is pretty crappy.

The fifth criticism is that 97% of YTB agents last less than one year. Ouch. 97% of them wasted their $500 sign up fee. I don't remember exactly, but I think with Nuskin the number is about 85%. Of course with no $500 sign up fee it hurts a bit less...

The sixth criticism is that it takes YTB forever to issue a refund. The article doesn't explain what kind of refund the person who quit was eligible for. My guess is that the $500 sign up fee was lost but that if you pay the $50/month fees in advance you should be able to get them back. You just might have to wait a year and file a BBB complain to get the refund...

All in all it's a pretty damning article.

Has anyone flown WestJet?

Calgary-based WestJet has seen its business expand and its stock go up nicely. Apparently while they expand into new routes they are still able to keep plance relatively full. Does anyone know if that's due to service, price, or both?

Qantas in the news

Qantas is in trouble for price fixing just like British Airways and Korean Air Lines had been in August. Qantas cooperated and received a much lesser fine.

Qantas is also in trouble for threatening travel agents.

But at least they have a big new plane to show off.

Investing in a Chinese travel company: Ctrip

I'm not investing in Ctrip, but the author of this article probably is. He mentions outstanding customer service and a strong presence leading to brand awareness and loyalty. I don't have too much to say about investing in Chinese stocks but somehow I ended up with this business category so I figured I'd fill it up a bit. Now I'll go find some more travel articles...

Travel agents booking most cruises and tours

Did you know that "travel agents book 87 percent of all cruises and 81 percent of all tours and packages"? I thought that was an interesting stat from this article on travel agents and the return of some of their business.

Speaking of booking cruises here's a list of things might make you want to book way in advance or wait until the last minute.

Curacao Caribbean holiday for those with kidney disease requiring dialysis treatments

I thought this article was very interesting. We were speaking about travel business concepts not too long ago. Here's another pefect example of an underserved niche market:

Those who live with kidney disease often require dialysis treatments that last as long as three hours, three times a week. It's a gruelling schedule that tethers patients to their clinics, making travel virtually impossible.

That's all changed – at least in Curacao – thanks to Jacob Gelt Dekker. An entrepreneur who has not only developed two of the finest hotels on the island, as well as the Museum Kura Hulanda, a world-renowned display of black history, Dekker saw a need and filled it.

Building the centre beside his luxury resort made it possible for travellers with kidney disease to enjoy all the amenities of a five-star hotel without missing a treatment.

Marriott International Inc.stock and business outlook

I don't usually write about stocks here, but I thought this article on Marriott International Inc. was worth a mention.

It might be a case of good for shareholders but bad for customers though:

While Marriott used to rely on third-party sites such as Expedia.com to sell rooms online, the lodging company discovered that by pitching the rooms itself, it could save money, raise prices and increase earnings.

Earnings will climb to $1.93 per share this year and $2.32 in 2008, Donnelly estimates.

To attract guests, Marriott created incentives to book through its Web site, awarding points that can be redeemed for free rooms. The points can't be earned on third-party sites like Hotels.com and Orbitz Worldwide Inc.'s Orbitz.com.

Now if Marriott prefers selling on its own website because it gets to raise prices, what's in it for consumers? Nothing more than rewards points?

Anyway, if you're an investor the article is bullish:

The shares will climb an average of 27 percent over the next year, according to analysts surveyed by Bloomberg. Profit this year is predicted to surge 29 percent, the biggest increase in four years, to a record $781 million.

I guess someone has to benefit from Marriott raising their prices when they sell rooms via their own website...