More Rooms — and
Surcharges
Conventional wisdom: Hotels will be a steal. At
least that's what Bobby Bowers, a vice president at lodging analysts Smith
Travel Research, believes. The consultant is looking for overall occupancy rates
to stay “flat to slightly down” from 1999. He says the real bargains are going
to be found among midscale chains such as Hampton Inn, Comfort Inn and Holiday
Inn Express. “There have been a lot of new rooms added during the last year to
18 months, and there's an abundance of supply,” he adds.
My prediction: Hotels will be a steal
— as in hotels will steal your money. Even though there'll be bargains in the
boondocks, the rates you'll get socked with in places like New York and San
Francisco will be as high as the skyscrapers. I think hotels are also getting
smarter about the way they extract your cash — with additional phone connection
charges, laundry fees, discreet room service surcharges — and I don't see that
trend abating any time soon.
Still Driving Up
Prices
Conventional wisdom: Rental cars will be reasonably
priced. Rates will edge up about 3 percent, says Dean Gianoukos, an analyst at
J.P. Morgan. “It's nothing,” he says. “I don't think the consumer is going to
get taken to the dry cleaners this year.” Drivers will continue to pay an
average daily rate of about $42 a day — an amount, Gianoukos points out, “for
which you can't even rent a tuxedo.”
My
prediction: Yeah, the cars will be priced reasonably, but that doesn't mean
your bill is going to reflect that. Car rental companies are growing revenues by
making their computer systems more efficient and by passing various fees and
taxes along to travelers. The very same fees they used to cover themselves as a
cost of doing business. I wouldn't be shocked if car rental firms came up with
still more creative surcharges in 2000. Hey, what are a few percentage points
among friends?
Cheaper
Cruises?
Conventional wisdom: This is the year to cruise.
“There are more berths available than ever before,” says Paul Motter, publisher
of the Internet cruise magazine Cruisemates.com. “The cruise lines are on
a big campaign to build new ships. The shipyards are backed up by four to five
years.” Put differently, there's lots of new space on ships, which will
translate into lower prices. On average, Motter expects rates to fall 10 to 20
percent from 1999 for people who know where to look. “It may take a while, but
prices will come back up,” he adds.
My
prediction: Don't be fooled. Even though there will be lots of bargains out
there, the cost of a cruise doesn't include extras like air, excursions,
amenities and drinks. The cruise industry sure looks generous, practically
giving away their floating vacations, but you can bet it will make up for
it on the other end. The bottom line is, a cruise remains a big-ticket purchase
that enriches an industry with a penchant for polluting the oceans, exploiting
workers and dodging taxes.
Friendly
Skies?
Conventional wisdom: Airlines have reformed. Humbled
by the beginning of a downturn in earnings, they're putting passengers “first”
and keeping fare increases to a minimum. As load factors taper off and earnings
slump, prices are expected to hold steady — maybe rise just a little — in 2000.
“Fares will be up 3 percent,” predicts Rolfe Shellenberger, an analyst with
Runzheimer International. “As a whole, I think the year is going to be a buyer's
market.”
My prediction: Expecting the
incumbent airlines to change their ways is utter folly. The deregulated
carriers' modus operandi is “profits first.” Whatever fare increases they can
get away with, they will. Whatever cutbacks they can get away with, they will.
You thought 28 inches of seat room was uncomfortable? Wait until the airlines
figure out a way to add standing room to their planes.
So will 2000 be a good year for the traveler or not?
Wrong question. It's more an issue of which industry segment will torment
customers the most. If you ask me, I think the competition has never been
closer.
Christopher Elliott, a k a The Crabby Traveler, is a writer based
in Annapolis, Md. His column appears on
Tuesdays.