Vol. 5, No. 8, August 2009, Featured Articles
On The Road
Summer destinations offer bargains to recession-weary travelers
The temperature is rising, the kids are out of school and the pool is becoming passe.
In years past, this would be the moment when a family packs its swimsuits and heads to cooler climes.
But times have changed, and booking a vacation is no longer as simple as pulling out a credit card. This summer, families are cognizant of the economy: unemployment, adjustable rate mortgages and climbing credit card debt have impacted the majority of Americans, and these factors must be taken into account when planning a summer trip.
Executives at vacation destinations are aware of the struggles their target markets are facing, and have reacted accordingly with deals and bargains to help families shake off the summer blues and make this season memorable.
The Getaway
Travel experts around the country assumed that the recession would curb summer vacations, and it has, but not as severely as many had anticipated. According to an American Automobile Association survey of July 4 travel, road trips were down 2.6 percent from last year when gas prices were at their peak, but air travel increased by 4.9 percent due to reduced fares. The rate of travel in the west has also been higher than in the rest of the country this season.
“The Fourth of July travel survey showed travel was down nationally but up by 1 percent in the west,” said AAA Nevada spokesman Michael Geeser. “One of the reasons that it’s believed it was up is because the west has been one part of the country that has not been hit as hard with unemployment as the rest of the country; relatively, compared to other regions of the country, it hasn’t been impacted as much. All of that is sort of hard to gauge because the west comprises many states. Regionally speaking, that was the reason.”
Travel may have increased slightly in the west, but according to Geeser, “fewer people are traveling, period. I don’t think many people have scheduled trips and canceled them; I think the decision was made earlier in the year to not travel at all until the economy turns around.”
The effects of declining vacation travel have been felt in Las Vegas, which is usually a popular destination for vacationing tourists during the summer. The Las Vegas Convention and Visitors Authority has tailored its marketing efforts toward bargain-seekers, both from Las Vegas and across the country. One of the LVCVA’s newest campaigns is targeted at travelers who would come to Las Vegas if they had a reason to.
“People will come to Vegas if they have an excuse to come—if they have a concert to see, they’ll feel better about it,” said Cathy Tull, LVCVA’s senior vice president of marketing. “The ‘Excuses’ campaign highlights the retail focus like restaurants and dining. The ‘What happens here’ campaign—people missed it. People need to be reminded that Vegas is what it always has been. We’re reminding them of what they know and love.”
Summer destinations are now finding themselves in competition with each other for the dollars of travelers. Advertising campaigns are now emphasizing vacation affordability in order to draw price-conscious tourists.
“Research is showing that people will still take a vacation,” Tull said. “Instead of coming two or three times a year, they’ll come once or twice. They’ll still take a big vacation with their family, but they’ll also take advantage of some of the deals on the Strip. If they’re going to cut one of their trips anyway, we may as well catch them with some of the deals on the Strip. People are still traveling, it’s just the spend is down.”
Deals and Steals
Hundreds of thousands of tourists will choose Las Vegas for a summer vacation, but for locals who are looking to escape the heat, southern California is always a popular destination. Geeser said he recommends Disneyland to travelers on the hunt for bargains. The amusement park is currently offering five days for the price of three days as a promotion for out-of-town visitors. The resort is also partnering with neighboring hotels to offer promotional room rates.
“In these extremely difficult times, we rely on the strength of our brand and the quality of our product, and that’s what positions us for long-term success,” said Disneyland media relations representative David Gill. “We focus on the long-term rather than the current economic environment. We want to make it it easier for families to experience our parks, so we have a number of special offers going on this summer.”
For Vegas visitors with family located in southern California, Disneyland is also offering a $99 summer fun pass to both the main park and Disney’s California Adventure. Geeser said there are many benefits to having a AAA membership when traveling to summer destinations like Disneyland, and the perks often include discounts.
“If you’re a AAA member, make sure you take your card with you so you can show it at different retail outlets and capitalize on discounts,” Geeser said. “A lot of people know ‘the show your card and save’ program with AAA, but you can also get discounts on car rentals and at places like Disneyland, free iPhone applications if you show your card; there’s so many places you can take out your AAA card to use a discount.”
Though Disneyland is striving to ease the financial burden of summer travel, Gill said the park is focusing on the future in order to be better prepared for uncertain economic times. This includes a $1 billion expansion project currently in the works at Disney’s California Adventure. Construction on the park will be completed in four years.
“We are definitely much better positioned than in the past,” Gill said. “It’s definitely because we’ve focused on the long-term and setting ourselves up for success by investing in our parks, ensuring that we continue to grow and offer new products. We really look at what we can offer, so the special offers are basically what we focus on in terms of giving opportunities to our guests to experience our parks for less. We listen to our guests, what they want and what their needs are.”
Vegas Vacation
Las Vegans who have been hit hard by the faltering economy may not have the cash on hand to splurge on airfare or a luxury resort in California, but with a Nevada ID, they can take advantage of bargains in their own backyard. The LVCVA has partnered with the Las Vegas Chamber of Commerce to promote the ‘Stay and Play Here’ campaign for locals. The media blitz includes a website, www.stayandplayhere.com, that lists deals being offered to Las Vegans from Strip resorts.
“We wanted to appeal to the nearly 2 million people that live here,” Tull said. “Nationally, people are looking to stay closer to home, so we wanted to give residents an option. Living in Las Vegas, sometimes people don’t take advantage of what’s in their backyard, so this campaign highlights all the deals, the shows, the restaurants.”
Deals include two-for-one specials at restaurants, discounted room rates and tickets to some of the Strip’s hottest shows. Tull said the LVCVA’s resort partners have seen an upswing in locals traffic due to ‘Stay and Play Here’ campaign, which launched in April.
“The hotels seem happy with the campaign,” Tull said. “They continue to put deals on the sites, so we’re going to continue with it throughout the year.”
When the campaign first launched, the LVCVA noticed that resorts were already stepping up their locals marketing strategies, and the convention authority decided to provide a portal through which locals could access all of the available bargains simply by searching for them.
“The resorts decided to do a little more marketing for locals, so www.stayandplayhere.com pulls those things in one place,” Tull said. “Some are unique to the ‘Stay and Play Here’ campaign, and some were stuff they were doing anyways.”
So whether Las Vegas residents choose to play at Disneyland or in their own backyard, there are plenty of options for deal-seekers this summer.