Greetings!
A strong forecast for the summer of 2011! STR predicts summer - occupancy will increase 1.7 percent over summer 2010 to 66.7 percent,
- average daily rate (ADR) will increase 4.1 percent to US$103.01, and
- revenue per available room (RevPAR) will jump up 5.9 percent at US$68.68.
And the good news is that the STR forecast for 2010 of 63.1% was handsomely surpassed - as was demand, currently is expected grow by 2.5% vs 8.6% in 2010 (demand was projected to grow by 4.4% over summer 2010 at the same time last year). Are we likely to see the same repeat performance of stronger than expected growth again? Either way, the projected pace is lower than last year: while the net cost of gas price increases is not significant in the scope of the total cost of a vacation (though that may not be the perception), higher air fare costs may well play into the picture, perhaps encouraging more road trips. What does this mean for you? I suggested some ideas for packages last year - I would submit that this is still a very powerful approach to value-adding at low cost to you. You may want to leverage the outrage at gas costs by bundling gas cards into your packages, something you may recall from the days of 2008 & 2009. My comments from last summer: Drumroll!! It's going to be a summer to look forward to!! Isn't that wonderful? Good news around the corner. ! Happiness and SmilesJ: ü Value offerings for families - include o Receptions (partner with restaurants to offer some sample foods and coupons, you provide the drinks) o certainly breakfast for families o WiFi if not already in your offering o attraction related coupons or deals o area retailer coupons and sale information o Car wash or interior car vacuum (you know how messy cars get when you have kids in tow!). Include service (or at least provide for access to hose and vacuum cleaners). ü Packages, Packages, Packages o family movie with pop & popcorn - package o attraction entry passes, where possible o F&B related deals with neighboring restaurants or your own outlets ü Note the sweet spot of $300-$400 over the two - three night stay o Package full deals so families can budget for meals and known costs § You have at least $150+ per day, total for, say 4 people. § Room, breakfast, WiFi - typically included in limited service hotels § Lunch: fast food coupons @ average $20 per family (they can use these coupons anytime) § Dinner: in house restaurant values can be strong. In absence of that option, include a certificate, preferably from a chain they can recognize the value with. o Depending on your market, and the demand over the weekend, you can price your rooms with a more comprehensive package that covers the basics - that makes you more attractive than others. ü Provide a reason for travelers to be at your location: o Use your websites: 80%+ of the traveling public starts their search on line. o Tell them why they should be at your hotel and your location: remember, people can easily drive around 2-3 hours in a radius from their home. You want to offer excitement that makes your location stand out. o Consider Pay Per Click to get higher exposure - feature your attractions in metatags and in paid search key phrases. o Newsletters - if you have a database, now's the time to send out offers, if you haven't already. If you want some more ideas on packages, feel free to call.
Take care and good luck in your planning.
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