Summer airfare outlook (The BAT on KCBS!)
If you are planning to take to the skies this summer, prepare to pay up. KCBS called on The BAT editor Chris McGinnis for his outlook on summer flying. Check out the article and listen to the short podcast of his remarks!
http://sanfrancisco.cbslocal.com/2011/02/20/rising-gas-prices-could-mean-higher-summer-travel-costs/
Top 10 predictions for BATs in 2011
It’s that time of year again…when travel pundits and prognosticators do their best to gaze into the future and predict what may or may not happen in the big wide world of travel in the coming year.
Here are my top ten predictions for frequent travelers in 2011:
1-RISING PRICES. Business travel prices will continue to rise, but not enough to dampen renewed demand.
2-AIRFARE. Fares will continue to rise sharply, especially for flights between cities where only one or two legacy carriers operate. From the Bay Area, all you have to do is follow the route maps of Virgin America, Southwest and JetBlue to know where the deals are (or aren’t). Also, prepare for more fuel surcharges if oil hits $100 per barrel– it’s currently about $89 and rising.
3-TRAVEL DEALS. In terms of travel deals, there will be a wider gap between peak season and off-season prices. Those with flexibility to travel outside the peak travel dates will continue to find good deals and more short-term “flash” type sales. Those who must travel during peak periods will face sticker shock.
4-HOTEL RATES. Due to continued overcapacity, hotel rates should remain about the same or slightly up, on average, over the next year. Hotel rates in New York City will rise, but a steady supply of new hotels opening there should keep rate inflation to acceptable levels, especially among mid-tier properties.
5-FREE WI-FI. More upscale hotel chains will join their midscale counterparts to offer free in-room Wi-Fi. We’ll also see hoteliers pay more attention to bandwidth issues on their existing systems. What good is free Wi-Fi if it doesn’t work? In-flight Wi-Fi prices could moderate as Southwest’s $5 flat fee for inflight Wi-Fi expands to more flights.
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6-LONGER STAYS. Hotel chains will offer more loyalty program promotions designed to get travelers to increase the duration of their stays. (Such as “buy two nights, get the third free.”)
7-DRIVING VS. FLYING. Due to recent changes in security screening, the airport hassle factor could return, and more frequent travelers will consider driving instead of flying. The “five hour rule” might change to the “six hour rule.”
8-MOBILE DEVICES. We’ll see more focus on business travelers’ smart phones, which will soon be used to open hotel room doors and will be accepted as payment instead of credit cards. There will be more promotions designed to encourage the use of mobile devices to book and manage travel reservations
9-IN-FLIGHT PHONING. In-flight phone calling, now available on several non-U.S. airlines will become more prevalent and might even be considered by a domestic carrier. High per-call rates and peer pressure should keep abuse in check– remember those pricey GTE Airfones that no one ever used because they were too expensive? I expect the same with in-flight cell phone use.
10-MEETINGS & CONVENTIONS. More of us will attend large annual trade shows and conventions this year as pent up demand is released. Many companies banned non-essential travel over the last two years and business travelers are eager to get out of the office and re-establish face-to-face contact with customers and colleagues. However, I think small and medium-sized meetings will face more competition from virtual alternatives.
Traveling home for a feast? Read this first.
With Halloween and the election behind us, the next big calendar item is Thanksgiving. If you are hitting the roads or the skies later this month, read up. There’s plenty to know about the upcoming peak season:
FARES UP. In addition to the slew of new airline fees, airfares are higher this year. Farecompare.com reports that holiday airfares are up about 17 percent over last year. According to Travelocity, the average Thanksgiving season fare for domestic trips is running about $378 roundtrip this year. While that may seem high, consider this: Travelocity says that the average Christmas/New Years week fare this year is $457.
FORGET WEDNESDAY. The TUESDAY before Thanksgiving has emerged as one of the busiest travel days for of the peak Thanksgiving week– even busier than Wednesday.
FULL WEEK. In recent years, an increasing number of Americans are taking the full Thanksgiving week off. This means that you should expect the Friday and Saturday before Thanksgiving to be very busy.
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SUNDAY-MONDAY. The Sunday and Monday after Thanksgiving will be the busiest travel days of the season. Sunday’s busy because that’s when everyone wants to get back home. Monday is busy because you’ve got business travelers headed back out for work on Monday morning along with the Thanksgiving laggards headed home. IMPORTANT: Expect big security line back ups on Monday morning; arrive early just in case.
PACKED FLIGHTS AND AIRPORTS. The Air Transport Association expects 24 million travelers during the 12-day Thanksgiving travel season. That’s up from 23 million last year. Despite the increased demand, airlines have been slow to un-park their planes (or buy new ones) so you should expect every flight to be full or even oversold.
DRIVING IT HOME. Despite the focus on air travel, the fact remains that 80 to 90 percent of all trips home for the holiday are by car. Good news: Gasoline is only a dime-per-gallon more expensive than this time last year. As always, traffic-averse drivers should try to avoid high-volume times such at Wednesday afternoon before Thanksgiving and Sunday afternoon after.
SWEET SPOT. If you want to breeze through the holiday with little or no hassle, try to travel during the Thanksgiving sweet spot: Thursday, Friday and Saturday are the slowest travel days of the week. Smart drivers leave Thanksgiving morning and get back Saturday night. Three days with the family is plenty, right?
AIRLINE FEE FOR ALL. Despite all the media attention, infrequent travelers might be surprised by new airline fees for checked baggage this year. Here’s what you need to know:
>Only JetBlue and Southwest do not charge for the first checked bag. (JetBlue does charge for the second one; Southwest does not.)
>Only one airline, Spirit Air, charges for carry on bags. ($45 for bags that don’t fit under the seat.) Thankfully, Spirit Air does not fly to San Francisco!
>All other airlines charge $50 to $70 round trip per checked bag.
>Bags that are overweight or oversize are subject to crazy-high fees, so beware.
FAT STAT. The U.S. Bureau of Transportation Statistics says that airlines raked in a whopping $1.6 BILLION in checked baggage fees in just the first six months of this year! (This is a big reason airlines are finally, after years in the red, reporting profits this year.)
BAG FEE REBATE. Holiday Inn, Crowne Plaza and other hotels in the InterContinental Hotels Group will rebate $50 in checked baggage fees to those who spend two weekend nights with them. Kimpton Hotels is doing the same– but only if you are charged for a second bag.
SHIP BAGS. If you can’t fit everything into a carryon, consider shipping your bags. UPS and FEDEX stores are happy to ship your baggage, but you have to ship them 3-5 days ahead of time via ground, in order to beat the cost of airline fees. Also be aware that distance matters when you ship bags. The UPS Store tells me that a 35 lb. bag shipped via ground from San Francisco to Denver costs about $25; if you shipped the same bag all the way to Atlanta, it would cost close to $50.
LUMPY SOFA OR HOTEL?. One bright spot in the overcrowded, overpriced holiday season is that hotel rates can hit yearlong lows during Thanksgiving. This is especially true at hotels located in or near office parks that cater to business travelers. These properties are dead during holidays, so you can scoop up outstanding bargains. To get the most for your money check out the big spacious rooms (many as big as efficiency apartments) at so-called “extended stay” properties such as Staybridge Suites, Candlewood Suites or Homewood Suites.
DEAD WEEKS. If you have the flexibility to postpone Thanksgiving season trips, consider traveling during what are known in the travel industry as “dead weeks.” During the first two weeks of December and the first two weeks of January, crowds vanish and prices plummet. The main exception to this would be New York City– due to the shopping season, the first three weeks of December are the busiest and most expensive of the year.
3 BAT readers get month’s supply of roadie java
The weak, plasticky and unsatisfactory in-room coffee experience
As you may have read in previous issues, The BAT has partnered with Starbucks to get the word out about VIA, its new line of instant coffee, among frequent travelers like YOU!
Starbucks VIA is perfect for those times you find yourself deprived of good coffee on the road. You know what I mean…like when your only option is that weak tea-like brew you find on hotel breakfast bars. Or worse, when you don’t have time (or money!) for room service and the stuff produced by the “coffee” maker in your hotel room is your only option. Ick! Then there are also those times when the coffee urn runs dry at that all-morning meeting…
With Starbucks VIA, just keep a pack in your briefcase or carry-on bag to ensure a really good cup of coffee no matter where you are. All you have to do is add hot or cold water. The taste is amazing—I honestly have a tough time telling the difference between VIA and the real thing. (>>>Click on the ad to the right for more info about VIA>>>)
How would you like to give Starbucks VIA a try for a month, for free?
Here’s all you have to do:
Leave a comment below or send me an email describing a travel situation where you WISHED you had a pack of Starbucks VIA to get your day off to a good start with a REAL cup of coffee. THAT’S IT!
Just two or three lines are all I’m looking for. But if you are feeling especially creative, send it along as a poem…or haiku*…or a photo. If you are already a fan of VIA, tell us why.
I’ll pick what I feel are the top three entries, and those folks will get a one-month supply of Starbucks VIA and a nice new mug sent to them. Easy!
I look forward to hearing from you!
*HAIKU: a 3 line, one stanza poem with a syllable count of 5, 7, 5.
17 Things Travelers Need To Know This Month
It’s been a while since I’ve done one of my Bay Area travel news round ups. Here are 17 things frequent travelers need to know this month:
(Photo: Ed Yourdon / Flickr)
>SIGH OF RELIEF. Ah, fall! If the madding crowds of tourists have knocked you around this summer, relief is on the way. Over the next few weeks, packed planes, sold out hotels, lines at the breakfast bar and shrieks and squeals in the hotel pool area should subside. Airlines and hotels are already rolling out the fall deals and discounts, which is a signal to me that they’re a little skittish about declining demand. That means lower prices, more deals and some welcome breathing room for travelers.
>FREE WI-FI AT SFO. San Francisco International has finally joined Oakland and San Jose airports offering FREE Wi-Fi throughout the airport. Log on and look for the “sfo free wifi” network. I’ve not used it yet. If you have, please let us know how it works below in comments.
>IHG HOTELS PAY BAG FEES. Here’s a deal that should be music to the ears of non-elite air travelers forced to pay those dastardly new fees for checked bags. IHG Hotels (which include Holiday Inn, Crowne Plaza, Staybridge Suites, Indigo among others) is offering to rebate $50 to travelers who book two or more weekend nights now through Dec 30. Must use Visa card to pay for your stay. Details.
>A NICE PAIRING. Two very popular brands among Bay Area frequent travelers have hooked up their loyalty programs: Southwest Rapid Rewards & Starwood Preferred Guest. Details.
>JETBLUE PASS SOLD OUT. It only took about three days for JetBlue to sell out of its unique one-month all-you-can-fly pass. The pass is a great idea for someone with a lot of time and flexibility on their hands. . .like the retired or unemployed. Not really something that a frequent traveler would be able to use…but still a fun concept! (Not to mention great PR for the airline.)
Delta’s soon-to-be-demolished Worldport at JFK (photo: Mokolabs)
>DELTA TO DEMOLISH JFK WORLDPORT. I love Delta’s Business Elite service between SFO and JFK. But I hate using Delta’s dilapidated, ex-Pan Am Worldport facility there. Good news: it will soon be demolished and Delta will move international flights to an updated Terminal 4. Not so good news: Delta’s holding on to its mediocre Terminal 2 for domestic flights.
>VIRGIN AMERICA EXPANDS. Earlier this summer, SFO-based Virgin America bought a bunch of new planes. . . Now they’ve got to find more places to fly them. In coming months, Virgin will add flights from SFO to: Orlando, Dallas, Cabo San Lucas, and Cancun. I’m still hoping that they’ll get into Chicago O’Hare one day soon, but I suspect entrenched legacy carriers American and United are successfully blocking that for now. We’ll see.
>NEW NERD BIRD. Southwest jumps into the Bay Area to Austin, TX fray with new Nerd Bird nonstops from San Jose starting Nov 7. (Looks like Southwest is trying to beat Virgin to the punch…it’s recently been hinting about its own SFO-Austin flights.)
>BUY ELITE SEATS. No longer an elite level on American Airlines? Now you can buy many elite privileges per flight with it’s new “Express Seats” plan. Example: Pay $39 extra when you check in for SFO-JFK and you’ll get a coach seat near the front and early boarding. Details. Worth it?
>AMERICAN SLIMMING DOWN AT SFO. American Airlines is eliminating its non-stop flights to Boston later this year, which seems strange given its big investment and pending move into Terminal 2 at SFO. Did you know that it’s putting in a 10,000 square foot Admirals club, complete with a real FIREPLACE? I learned that little tidbit last week while attending the NBTA convention in Houston.
Na Pali Coast, Kauai (Photo: Jeff Kubina / Flickr)
>KEEP AN EYE ON HAWAII FARES. Mahalo very much! Periodically over the last month, SFO-HNL fares to Honolulu have fallen to just $257 round trip on Delta. If you are interested in getting out from under all this fog, set up a fare alert on routes to Hawaii and then jump when you see a fare of less than $300. Here’s evidence of just how low those fares can go.
>MORE AIRPORT PERKS FOR AMEX PLATS. If you fork over $450 per year for your American Express Platinum card, your benefits just got better– cardholders now get access to US Airways airport clubs, as well as those from American, Delta and Continental airlines.
>SF-BASED PARTNERSHIP. Virgin America Elevate members can now earn one point per dollar spent at participating Joie de Vivre Hotels. To qualify, you must also be enrolled in Joie de Vivre’s loyalty program, Joy of Life Club. In addition to your Elevate points, you’ll also earn Joy of Life Club points for each stay through Dec 31, 2010.
>iPHONE TO THE RESCUE. There’s a very helpful new iPhone application from the TSA that allows users to check airport security wait times and flight delays in real time.
>FREAKISH FEES? The smart folks over at TripAdvisor have fashioned a very helpful “fees estimator” to its search engine– allowing users to enter the number of bags they plan to check as well as their frequent flyer program affiliation and status. Then the site calculates the TOTAL fee you’d pay and presents it for comparison on a matrix. Nice! See www.tripadvisor.com/flights and try it yourself.
Lie-flat business class seat on SAA A340
>EASIER SEAT SEARCHES. I’m a big fan of Seatguru.com when trying to pick the perfect seat for a long international or transcon flight. In the past it was tough because there are so many different airplane configurations flying around out there. Seatguru’s solved that by letting you enter your actual airline flight NUMBER first, which means you’ll always see the exact layout of your plane. (I just used it to check out the nice business class seat I’ll have on my South African Airways flight to Cape Town next week. Stay tuned for more on that trip.)
>WATCH THOSE VALUABLES. A 47-year-old Air France flight attendant is facing 10 years in jail after pleading guilty to stealing from business class passengers sleeping on long haul flights. She said that she targeted passengers who would fall asleep after a big meal with lots of alcohol.
$257 roundtrip SFO-HNL late Aug/Sept (UPDATE)
Screenshot from Expedia website, Friday July 30 @ 3 pm
It’s rare that you see fares between SFO and Hawaii dip below $300. But check out what we just found on Expedia! Who knows how long it will last.
From what we can see on various sites, these fares are good for travel from late August through the end of Sept.
Thanks to BAT reader BKL for the heads up!
UPDATE: Monday, Aug 2…Alas all good things must come to an end. Those $257 are gone and now the least expensive fare is $352. But keep an eye out. I bet they’ll dangle those cheapies again soon as the weak fall travel season approaches.
Psychedelic new planes and summer surcharges
A special San Francisco edition of a SWISS A340. Groovy!
(Stay tuned for more about those new SWISS flights that begin on June 2. I just wanted to get that psychedelic San Francisco themed plane up on my blog for all to see! Can you believe they painted a plane just for us? For now, let’s take a look at summer travel.)
I’ve spent most of this week doing radio and TV interviews about summer travel trends. (Check ‘em out! Good Morning America. KCBS. Bloomberg/BusinessWeek.)
As usual, the stations want me to peel off a list of all the great travel deals out there.
But the reality is that nearly all the good airfare deals are gone. That’s right. If you want to travel during peak summer travel season, those dirt-cheap deals you might be hoping for are, well, dust in the wind.
Here are a few sound bites I’ve been tossing around:
>Over the course of this week, most major airlines raised fares $20 to $60 dollars round trip during the peak summer travel season, which runs from mid-June to mid-August. These are some of the most aggressive fare increases for peak summer travel season that I’ve ever seen.
>When airlines are aggressive like they’ve been this week, it means that it’s very clear to them that people are willing to pay higher fares. They would not raise fares if they were not confident we’d buy them.
>Airlines are calling these fare increases “surcharges” for technical reasons. However, when you are fare shopping online, those surcharges are already added into the fares you see and compare. Don’t get tripped up by semantics. Surcharges = fare increases.
>If you’ve been waiting around hoping you might luck into a great fare, I’m afraid your luck has run out. If you find a summer peak season fare that seems somewhat reasonable, book it now, because I’m afraid it’s only going to go up from here.
>People who last week may have found a pretty good fare but thought they would wait a week were greeted with surcharges this week. A fare that was $400 last week is $460 this week.
>Travelers have had a lot of cabin fever now because they’ve shunned vacations due to recent financial worries. If they did go out, they took shorter trips or they maybe stayed at less expensive hotels or they stayed with friends. But now the summer is here. They haven’t taken a vacation in a while and they’re ready to go. And they seem ready to pay more.
>Some lower prices: While airfares are up, hotel rates are on par with last summer (which means historic lows.) Also, after a year of sharp increases, rental car rates could be down as much as 15 percent compared to last summer. In addition, travelers headed to Europe will find that a stronger dollar will lead to lower prices.
>There are two windows of opportunity for good deals this summer. The first two weeks of June and the last two weeks of August. If you have the flexibility to travel during these windows, you’ll pay less than during the peak (roughly June 15-August 15).
>Other strategies for lower fares (but higher potential for hassles): Take a one-stop flight instead of a nonstop. Take an overnight flight or a very early or very late night flight or fly on an off-peak day. Monday and Tuesday are going to be the slowest days this summer– that’s when you are going to find those surcharges the smallest.
Summer fares soar out of SFO
I’ve been predicting a busy, expensive summer when it comes to air travel for a few months now. That’s because airline capacity is down, but demand is increasing as the economy continues to strengthen. When you combine those two factors, the result is higher prices. Which is exactly where the airlines want us to be.
So now that it’s time for me to start booking my summer trips, it looks like those predictions of high prices are coming home to roost.
Here’s a sampling of what I’m looking at…and what you’ll find, too. Ouch!
$500 to New York City. I need to be in New York in early June to meet with a large international airline. I need to take a morning departure from here to arrive in New York in the evening. The cheapest midweek nonstop fare I can find is $513 on American. There are a few one-stops or red-eyes in the $400 range, but I’m not willing to do that for $100 in savings.
$520 to Boston. I’m taking a work/vacation trip to Massachusetts straddling the July 4 holiday weekend, which means peak prices, so there’s no getting around high fares– in this case $520 round trip on United. Again, I can get a slightly cheaper fare for a one-stop or red eye, but I’m not willing to take that much time out of my holiday to save less than $100.
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$380 to Atlanta. I own a rental house in Atlanta that I like to go check on each summer. The cheapest nonstop coach fare on AirTran in June is running $377. Delta wants $409. Not horrible, but I’ve paid as little as $220 on this route in recent years.
$450 to Houston. In August, the National Business Travel Association is having its annual convention in Houston. I try to hit this one up each year because it’s so important to my business. But that $450 fare is making me think twice. This might be a case where I’d be willing to take a one-stop flight on Frontier or Southwest where the lowest fare is running about $340.
$1500 to Europe. Since I’m going to Massachusetts for my summer vacation, I won’t be hitting Greece in August. But I still like to THINK about going to Greece in August (despite the recent unrest). But not this year. With airlines reducing frequencies across the Atlantic, and demand increasing, fares are soaring. The least expensive one-stop flight from SFO to Athens in mid-August is now $1520. It’s like that all over Europe this summer. London nonstops are already about $1200 round trip. Frankfurt nonstops are $1500 in August. If you find anything under $1000, book it now!
(Note: I did a quick scan of fares on Kayak.com on Tues. May 11. Fares will undoubtedly change…but I doubt they will decrease much!)
Where are YOU going this summer? Have you checked fares yet? Please leave a comment below and let us know what sort of fares you’re looking at.
Big discounts on transpacific biz class (video)
Korean Air is offering super low business class fares (about $3600 roundtrip midweek) between SFO and Seoul– but you must act fast. The booking window for this deal closes on April 30.
This represents a great value since the lowest round trip transpac business class fares are normally in the $6000-$7000 range. It’s a great deal if you are going to Seoul or beyond, since KAL operates an outstanding hub at Seoul-Incheon with easy connections to cities across China and throughout Asia. Here are full details of the offer.
Earlier this month, Korean Air invited me to give its business (“Prestige”) class a try between SFO and Seoul. I made a short two-minute “Flight Check” video of my experience. Please take a look! http://www.youtube.com/watch?v=bLWJN0-_Vuk
Higher airfares, but lower hotel rates on the way
Good news for the travel industry is not always good news for bargain hunting frequent travelers.
Growing demand on the part of both leisure and business travelers means . . . you guessed it . . . higher prices. Those dirt-cheap deals the travel industry has used to keep us on the road and in the skies over the last couple years will get tougher to find in coming months.
Here’s why:
>FARES: In February, the average price to fly one mile in the U.S. increased 5 percent says the Air Transport Association. Fares are rising because airlines have been able to reduce their supply of seats by parking planes in the desert. Now that competition among travelers for the remaining seats is heating up, fares will rise accordingly.
>FEES: In addition to higher fares, airlines will continue to tack on extra fees to help firm up their mushy bottom lines. In January alone, airlines pulled in half a billion dollars in “ancillary revenue,” a term used to describe just about any airline charge other than fare [such as fees for baggage, ticket changes, upgrades, food, etc.],” said Kevin Chrissey, an airline analyst with UBS who was speaking at the Strategic Travel Symposium, a recent conference to which I was invited by the National Business Travel Association.
>AIRLINE GROWTH: Delta Air Lines, now the largest airline in the world, had to adjust its profit forecast for this quarter based on a 30+ percent jump in corporate travel volume and revenue in February. Also, Delta just announced that it’s jumping back into the hyper-competitive California Corridor with four daily round trips between SFO and LAX using both B737 and regional jets. Last week, Virgin America announced new flights from SFO to Toronto and Orlando starting later this year (but it’s dumping service to Orange County).
>SUMMER: It’s going to be a busy summer. Remember last summer nearly every flight was full and/or oversold? UBS’s Chrissey warned it could happen again this summer now that demand is rising along with the economic outlook. If you’ve got plans to fly on peak days (Memorial Day, July 4, most of August and Labor Day) you should start looking at fares now and go ahead and book.
>HOTEL GLUT: For hotels, it’s a bit of a different story. There’s been a huge boom in hotel construction over the last five years. For example, United’s Hemispheres magazine this month includes a colorful article about a handful of the snazziest of the 59 (yes, 59!) new hotels that have opened in NYC in the last 18 months. So, with a lot of extra supply out there, and only a slow return in demand, hotel rates should remain relatively flat over the next year.
>BOOKINGS UP: With all the great hotel deals out there, demand is starting to pop. For example, advance bookings at the Best Western chain were up 16.4 percent during the second week in March compared to the same time last year. (They were up over 6 percent for the month of February.) That’s significant considering Best Western’s the largest hotel chain in the world. Disclosure: I write a blog for Best Western.
>BUYER’S MARKET: The buyer’s market for hotel rooms should continue over the next year, said hotel analyst Bjorn Hanson at the symposium in New York. “For many years, I’ve advised consumers to call the hotel directly and ask for a lower rate, and they’d get one about 20 percent of the time. These days, they are getting a lower rate 50 percent of the time,” he said.
>RATES: To further illustrate his point, Hanson said that rates at luxury hotels in New York City were down a whopping 40 percent in 2009 compared to a high in 2006. And he referred to three different forecasts showing nationwide rate declines of 2-3 percent for 2010.
So folks, I’m eager to hear about your observations and plans for travel this year. Have you noticed that prices are increasing? Are you planning to travel more this year than last year? When do you plan to firm up your summer travel plans?
Summer Hotel News (and a review: Palomar Atlanta)
RATES CRASHING. Hotel rates are WAY down, too. That’s because hotels can’t just go park excess hotel rooms in the desert like airlines can park planes. This means there are a LOT of unsold hotel rooms going at bargain basement prices—- and we are talking some of the most popular destinations in the country like Las Vegas, New York, San Francisco and Hawaii. European rates have tanked, too!
Examples of average hotel rate declines this summer
In US:
• Las Vegas: -25%
• New York: -25%
• San Francisco: -23%
• Honolulu: -18%
In Europe:
• Barcelona: -35%
• London: -25%
• Rome: -23%
(Source: Expedia.com)
TOUGH TIMES. The first half of 2009 was brutal for the hotel industry. According to Smith Travel Research, occupancy fell 11% in the first six months of 2009. The average daily rate dipped below the bellwether $100 mark to $98.66. Revenue per available room slipped 19%. Ouch. However, the outlook for hotels is improving as the economy seems to be warming up.
CANDLEWOOD SUITES HITS NYC. We always love a NEW hotel in NYC and here’s the latest from InterContinental: “Candlewood Suites is bringing a full-scale apartment experience at a midscale hotel price to business and leisure travelers at a prime location just one block from Times Square. Guestrooms are all-studio suites with wide rooms, including a full kitchen with full-size refrigerator, stove top, dishwasher and microwave, and stocked with pots, pans, plates, glassware and utensils; comfortable recliner; large workspace with desk chair; and deluxe bedding. Unlike most New York City midscale hotels, the Candlewood Suites offers amenities typically found in apartment buildings, including a complimentary 24-hour fitness center, complete with cardio and weight machines, and complimentary onsite laundry for guests. Location: 339 West 39th Street between 8th and 9th Avenues—over near the Port Authority. Rates in August start at about $220 per night. When we checked rates for Sept and Oct, the hotel was already sold out most nights! www.candlewoodsuites.com
AN ALTERNATIVE TO TRIPADVISOR. Check out this very helpful new hotel review site where hotel guests post their own VIDEOS of hotel stays. Very revealing!
MORE FREE INTERNET. So here’s a positive trend that we are hearing about more frequently: Many full-service hotel brands are FINALLY getting the message that guests are tired of paying for wi-fi when they can get it free at most limited service brands. For example, Hyatt now offers free wi-fi in all hotels to platinum and diamond members of its Gold Passport program. InterContinental Ambassors get it free, too. We are hearing that many west coast luxury properties, such as Ritz-Carltons are also offering it for free. Let’s hope the trend continues!
DISINTEREST IN LOYALTY PROGRAMS? Membership in hotel, airline and car rental loyalty programs has declined 31.2 percent since 2007, according to a new study from the loyalty research company Colloquy. The results, based on interviews with 2,152 U.S. consumers, indicate there still is interest in loyalty programs, but travelers are picking fewer carriers and hoteliers with which to invest their time and money.
Between our business trips, press trips and personal travel, we stay at a LOT of hotels. We’d like to share our experiences with BAT readers here in the Hotel Category. 
HOTEL PALOMAR-ATLANTA. A few months ago, the new Hotel Palomar in Midtown Atlanta hosted us for one night. The 21-story, 304 room hotel is just off I-75/85 which runs north/south through the center of downtown. It’s a brand new-from-the-ground-up hotel at 12th and West Peachtree. Rates generally run in the $150 range, but we’ve seen specials as low as $99 per night.
We stayed there on a Saturday night in late May. Having had many positive experiences at other Kimpton Group hotels scattered around the country, we had high expectations, and we are pleased to report those expectations were met this time around.
For a hotel that had only been open a few short months, we did not detect the slightest bit of just-opened jitters. All the staff, from the bellhops who greeted us on the street, the front desk staff, housekeepers…everyone was completely on their game. We are used to giving a wide berth to the staff at brand new hotels as they work through opening kinks, but that was definitely not necessary at the Palomar.
We really liked the modern, yet comfortable design of our room. Lots of ambers, browns, grays and tans in both wood and stone with a splash of red and orange here and there. Nice desk with an Aeron-like chair. Wi-fi is free for members of Kimpton’s In-Touch loyalty program. Flat screen TV. A nice bright and modern bathroom with a big tub-less shower.
Overall, it had the mod feel of a W Hotel without the disco-y dark corridors throbbing to a deep beat which always strain us when traveling on business. We had an outstanding meal in the hotel restaurant called Pacci and then spent several hours on the rooftop deck, complete with its own screened in porch (nice southern touch amidst all the steel and glass towers of Midtown).
The only downside was the enforced valet parking @$30 per night (plus tip). There’s no self-park option, which is too bad considering that the hotel parking lot is located right next to the hotel…and about 100 feet from the valet stand. Next time we’ll ditch the car and take MARTA!
