#79433 - 03/10/09 01:40 PM
Re: Is the current crisis affecting Moorea ?
[Re: vaitape]
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BarbiJKM
Supreme Advisor
Registered: 02/14/07
Posts: 6042
Loc: Mesa, AZ
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Well, ATN reduced airfares to $859 for March and April (about 1/2 their normal price), and STILL people are not filling the flights. They are barely surviving, with big infusions of cash from the government too. Hopefully things will rally a bit for "high season"!
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#79434 - 03/10/09 02:06 PM
Re: Is the current crisis affecting Moorea ?
[Re: BarbiJKM]
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Patti.
Expert Advisor
Registered: 03/28/04
Posts: 2376
Loc: Las Vegas, NV
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Like I said, reducing the hotel prices and or the flights will not really help that much. It will help some, but not enough. Many people are just not traveling now...because of the uncertainty of the economy. Even many of those who do have the money, and who are pretty sure their jobs are not in danger, are sitting this travel year out. Travel deals aren't going to help that. All you have to do is look at the number of great travel deals to Hawaii, Mexico, cruises, Las Vegas, etc. No one is biting on them. All travel destinations are hurting big time right now. Here in Vegas, there are hotel deals being offered on weekend nights at prices we haven't seen in 5 or 10 years...and the rooms are still going empty. People have quite simply cut travel out of the equation right now. Even great deals aren't going to lure enough people to make it profitable for the hotels.
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#79435 - 03/10/09 02:20 PM
Re: Is the current crisis affecting Moorea ?
[Re: Patti.]
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snowboarder
Member
Registered: 10/30/05
Posts: 128
Loc: LAX
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If the big resorts run some kind of crazy deal, like 50% off
plus an upgrade and a free breakfast, I'd even go for
a short 5 day break. If they choose to close down instead,
it's their choice. For people from the West coast, a good deal
would work somehow, probably not great, but would bring some people.
It's too far for New Yorkers to come for a few days though...
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#79436 - 03/10/09 02:43 PM
Re: Is the current crisis affecting Moorea ?
[Re: Patti.]
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islandboyatheart
Expert Advisor
Registered: 07/19/05
Posts: 1368
Loc: Florida
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You base this on what?
Lower airfares alone don't work in an expensive destination simply because it is only part of the equation. If you have to go and then spend a lot of money for hotels, food, activities, etc...it adds up to a major expense. In any downturn in the economy, people will become a lot tighter with their money but people who are travelers at heart will still remain travelers at heart. They will make travel a priority. The destination may change but the motivation to travel will not assuming they have a way to fund the trip. I was at Sea World a few weeks ago and it was busier than ever. Why - because the hotels, flights and food are cheap. The only expense is the parks. People who like to travel will travel if the deals present themselves but it has to be a DEAL. Discounting a 1200 ticket by 400 bucks and then facing expensive hotels, inter-island airfare and expensive food and activities is not a deal. Expensive locations get killed because all of the pieces need to fall into place. Other locations can survive for a period of time by bringing people in on deals even if they take a short term financial hit. If the tourism industry would sit down and offer cheaper fares, cheaper hotels, cheaper inter-island fares people would go - not the same numbers as before but enough to keep them afloat for a period of time.
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#79437 - 03/10/09 02:56 PM
Re: Is the current crisis affecting Moorea ?
[Re: islandboyatheart]
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Patti.
Expert Advisor
Registered: 03/28/04
Posts: 2376
Loc: Las Vegas, NV
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Basing it on nothing more than my opinion.
It's easy to say the tourism industry has to offer cheaper fares, cheaper rates...but in this economy it is very difficult for them to do so. They still have bills to pay, and investment money has all but dried up. They can't just cut airfares and still pay be able to pay for the fuel, and staff, and other creditors....many have no cash reserves. Same with the hotels. Banks are not extending credit. Many companies are struggling even to restructure their current debt. It's a complete Catch 22 situation.
And it is very likely that Sea World, along with many other local destinations will be busier than normal...because people who would normally travel further and to more expensive destinations are staying closer to home. It's all they can afford, or are willing to take a chance on.
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#79439 - 03/10/09 02:59 PM
Re: Is the current crisis affecting Moorea ?
[Re: Patti.]
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snowboarder
Member
Registered: 10/30/05
Posts: 128
Loc: LAX
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I just checked the St Regis website. They offer 50% off
every 2nd night, not great, but something. Trying to book it
for late March/April - nothing available! What a joke,
the cheapest room - 90.000 XPF any date I check.
So it's really better to have no guests???
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#79441 - 03/10/09 03:11 PM
Re: Is the current crisis affecting Moorea ?
[Re: snowboarder]
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Patti.
Expert Advisor
Registered: 03/28/04
Posts: 2376
Loc: Las Vegas, NV
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You may have try contacting the hotel directly. Not just through their website.
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#79444 - 03/10/09 06:54 PM
Re: Is the current crisis affecting Moorea ?
[Re: Patti.]
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islandboyatheart
Expert Advisor
Registered: 07/19/05
Posts: 1368
Loc: Florida
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You're actually arguing my point. The statement I disagree with is the remark that people who have money and have a secure job are sitting out from travel this year. People who have money and have secure jobs will still continue to travel. They may become more careful with their expenses and choose less expensive destinations but either way, for these people it comes down more to watching their travel expense rather than avoiding travel. These are the people who are looking for the deals and will take advantage of them if the opportunity presents itself. They know that the economy is not good and businesses are hurting and they are savvy enough to want to wait for what they feel is a good deal. Snowboarder and those tourists at Disney are the perfect example. The distance is not a factor in any other way besides the fact that it costs less to fly shorter distances. Tourism is way down for sure - noone can argue that. Many people have lost investment income, jobs, fixed income revenue sources, future retirement sources and that cumulatively leads to less available discretionary income. I also agree that businesses are indeed caught in a very difficult situation and there is no simple solution. I own a business and when you have a bad economy everyone suffers. As a business owner, you establish a profit margin that you hope to maintain. Sometimes you meet it, sometimes you don't. Some weeks and months you work in the red others very much in the black. In bad economic times, business owners have 3 choices 1) close your doors and go out of business; 2) stay open, continue business as usual and hope that the bad times end fast; or 3) do what you can to grab as many customers as possible and hope to ride out the storm until it ends or you just can't stay afloat anymore. If you are open and have zero customers you lose more than if you have 20% occupancy at a discounted rate. You yourself said you would go on a 5-day trip if there was a good enough deal. These are the types of people the hotels and businesses should be attempting to grab by offering the deals. I agree with Snowboarder that it doesn't make sense to have 0 people. I would rather lose $400/ night on a room than $800/ night. If you lose $800/ night, your food, labor, fuel, rent, lease expense are not being met at all. If you lose less, some expenses get paid. True there are more costs to keeping the business open and running but the only other way out is to close down or be forced into closure rapidly. I believe that there are people on the sidelines with some money and secure jobs who like to travel but are being more cautious with that money. I don't believe that those people with money are not traveling. If some deals are offered, I believe that people would take advantage of them. Would the companies make money, - probably not. Would they lose less - very likely. Would it help them ultimately survive - maybe, maybe not. But I would go down fighting rather than slowly slip away into oblivion.
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#79445 - 03/10/09 10:37 PM
Re: Is the current crisis affecting Moorea ?
[Re: islandboyatheart]
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holte
Expert Advisor
Registered: 11/19/04
Posts: 2365
Loc: Duluth, Minnesota
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It is very interesting that even the high end hotels aren't getting clients. That is very thought provoking to me.
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#79446 - 03/11/09 06:48 AM
Re: Is the current crisis affecting Moorea ?
[Re: holte]
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Pago
Member
Registered: 12/10/05
Posts: 187
Loc: Ohio
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Man, I wish you people would learn about using paragaphs! Talk about eye strain!!
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