• 1
• 2
• 3
• 4

Global Economic Meltdown Makes the USA Cheaper for Americans

Speaking of the U.S. Department of Commerce and their role in attracting foreign tourists to the US, this is also the government organization that uses tax dollars to track how many are actually visiting, from which countries, and what they're spending. Travel and tourism represents one of the top services exports for the United States and has produced a travel-trade surplus since 1989.

Over the past year, international travel to the US has plummeted in line with the world economy and, at Commerce, international travel to the US is forecasted to decline by 8% in 2009 after what Commerce calls a "record year" in 2008. Their first quarter 2009 report issued June 5th already shows a 14% decline compared with the first quarter of 2008.

While it's bad news that "inbound" tourism is down, it's good news for American families. The steeply discounted vacations that are currently available are likely to linger through the summer, primarily because there won't be as big an influx of foreigners as last year, when hordes of European families drove prices back up. (You may recall how the Euro : Dollar exchange rate put America "on sale" for many foreign travelers.)

According to Commerce, in 2008, the United States hosted 58 million international visitors. In 2009, 24 of the top 25 arrival markets are estimated to decline; the largest decreases to be from Ireland (-13%), Spain (-12%), and Mexico (-11%) with the United Kingdom, France and Italy each expected to post 10% declines for the year. In the long term, Commerce projects a rebound of 3% growth by the end of 2010, followed by 5% annual increases through 2013.

Bundled Vacation Packages are the New Bargains

Back in the day, frequent travelers used brand websites to find cheap airfares or exclusive hotel discounts, but during this recession, both budget and luxury travelers have their eyes on the bottom line: what’s this vacation going to cost? YParnership's recent study finds that a majority of travelers (34%) now start their vacation research on search engines, including travel search engines like Kayak, then move to specific destination or brand marketing sites (23%), followed by the major online travel agencies such as Expedia, Travelocity, or Orbitz. To woo consumers away from airline and hotel branded websites, the online travel agencies have eliminated booking fees and hidden charges, and pushed their own vacation packages. In fact, travel vendors everywhere are offering big discounts to those who buy all elements of a vacation at the same time.

So this is the summer to buy a vacation package. Airlines are marketing cheap tickets together with the economic development offices of well known destinations to make “air & land” packages. Examples include JetBlue’s popular fare sales to the Bahamas and St. Lucia, whose tourism organizations add hotel and attraction discounts exclusively for the airline’s customers in order to "bundle" a vacation.

Individual boutique properties and large hotels are bundling in free nights, free meals, credits to be spent on site, rental cars, daytime adventures, and other complimentary perks to customers happy to pay the standard rate for rooms -- and get an organized vacation in return.

Vacation shopping tools like FTF's interactive Flee Market map features hundreds of examples. At the high end, resorts like the Four Seasons Resort Bali at Sayan are offering adventures, meals and on-site activities for the price of a discounted room. Once ensconced in luxury in the hills of Bali, Four Seasons guests of all ages can enroll in the “Balinese Farming Experience,” receive a third night free after spending two, and enjoy all sorts of perks.

Farming? According to the company, this day-long outing is a learning experience that illuminates the local method of irrigation, gives guests an opportunity to plant rice seeds, enjoy a typical Balinese breakfast and lunch (of rice of course), and follow it up with a batukali or river bathing ritual to can socialize with local farmers. Room rate? US$460 per night. Experience? Priceless.

At Hyatt Hotels, which operates 340 hotels and resorts in 44 countries, a hotel room has morphed into a “Classic Family Vacation.” For summer 2009, they are offering a hotel room – true – with experiences such as spa treatments or sessions at their inspired kids camps (for ages 5-12), then adding in perks such as an adjoining room for kids at 50% off, free breakfast and discounts on other hotel services. Rates vary by date and location, and to book, families are urged to call 888/414-9288 from the U.S. or Canada or visit www.classicfamilyvacation.com.

“We know that the best values and the highest demand in travel today are in vacation packages,” said Victoria Treyger, chief marketing officer, Travelocity North America. According to the popular online travel agency, travelers save on average $315 when they book the flight, hotel, car rental and activities together versus separately, whether they plan ahead or book last minute. The Travelocity PriceGuardian policy guarantees wary consumers that if they buy a vacation package, and another Travelocity customer later books the same vacation package at a lower price before the trip, Travelocity will automatically refund the difference, up to $500.