Despite the weak dollar, advance bookings of tours and vacation packages to countries on the Euro are strong…
Despite the weak dollar, advance bookings of tours and vacation packages to countries on the Euro are strong, according to a recent informal poll of USTOA (United States Tour Operators) members. Sixty-five percent said bookings were stronger, while 25% said bookings were the same. Only 10% reported weaker bookings.
The poll indicated that, to date, USTOA respondents have not added significant surcharges to their prices, and some who set prices in 2004 or have negotiated more favorable rates with hotels, are holding their prices. However, this could change if the dollar drops dramatically.
Since many tour operators will guarantee their prices when booked in advance, travelers who reserve and pay for their vacations early may be at a distinct advantage, especially if the dollar drops further, remarks USTOA president Bob Whitley. USTOA Chairman Brian Stack, President of CIE Tours International, echoes this, saying that the dollar should pose no problem if the trip is paid in advance.
The weak dollar can have a silver lining, according to USTOA member Juan Tamarit, president, Travel Bound, a company specializing in independent travel. The company maintains that business has increased, since there is better supply of higher category hotels that must now compete with the lower-priced hotels. This is good for the consumer, who is buying into a better quality product, says Tamarit.
Companies such as the Rail Europe Group said that their prices, which were set in mid-2004, will remain the same for Europe rail tickets purchased in the U.S. Other companies, such as Trafalgar Tours, are finding that consumers are dropping their level of luxury to more affordable levels, staying at lower-end hotels.
USTOA member General Tours points out that fuel increases, rather than the Euro, are impacting international airline prices, while Abercrombie & Kent reports strong growth in independent travel.
Other Areas Remain Strong
Nearly 95% of USTOA respondents said that bookings to other areas of the world as well were up over last year. A slight majority (56%) said that this increase was not due to the strong Euro, while 44% attributed the increase to the weak dollar. Areas cited as strong are: China, India, Central and South America, Australia, and US; and to a lesser extent Mexico, Eastern Europe, South Africa, and Canada.
The poll was based on a sampling of 20 companies, representing more than 40 of the top brands in travel to Europe and Euro countries.
USTOA members are responsible for the vacations of more than 10 million people yearly, and have met the travel industry`s strictest standards, including participating in the USTOA Travelers Assistance Program, which, among other things, requires each member company to post $1 Million security to protect consumer payments in case the company goes out of business.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
