honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Tuesday, July 6, 2004

Domestic travel expected to reach record numbers

By Julie Schmit
USA Today

A summer travel season projected to top the record-breaker of 2000 is bringing welcome relief to parts of the tourism industry.

The strength is reflected in vacation rentals in Hawai'i, helicopter rides over the Grand Canyon, and visitors to Las Vegas, among other indicators. "All of the signs are excellent," says Dexter Koehl, spokesman for the Travel Industry Association of America.

The association predicts the biggest summer ever for domestic travel in terms of numbers of people, up 3.2 percent from last year. Domestic air travel is expected to be its busiest in four years; auto travel, up 3 percent despite high gas prices.

Driving the surge: a stronger economy, consumer confidence at a two-year high and pent-up demand after a travel downturn.

"It's never been so busy," says Talia Abubo, real-estate associate for Coldwell Banker in Hanalei, Kaua'i.

Vacation-home bookings are up 15 percent over last year, she says. The Fourth of July weekend was booked — as are most properties for the rest of the summer, she says.

The situation is similar for summertime cruises to Europe and Alaska, says June Holliday, marketing manager for Cruise Brothers, which has a network of 200 travel agencies. "Both of those markets have almost sold out," she says.

Vacations in Europe are strong, too. Interhome, one of Europe's biggest rental agencies for summer homes, has seen a 20 percent increase in bookings from U.S. residents over last summer, says Ron Davidson, product manager in Interhome's Miami office.

Nigel Turner, president of Las Vegas-based Heli USA Airways and of Grand Canyon West Ranch, views this year as the end "of a long climb back up."

After the terrorist attacks, business dropped so far that Turner grounded four of his 12 helicopters and laid off one-third of his 150 employees.

This year, Las Vegas, one of the top leisure travel destinations, expects more than 36 million visitors — besting the record of 2000. Turner is flying all 12 helicopters again, has rebuilt his staff to old levels and continues to hire. "We're slammed," he says.

Universal Studios Theme Parks in Orlando, Fla., and Hollywood, too, see summer attendance up 15 percent over last year.

Low airfares have helped keep travel costs in line. The Travel Industry Association expects travelers to spend an average of $1,101 on their longest pleasure trip this summer, up 4.4 percent from last summer. But Holliday notes cruise prices are "creeping up." Interhome says discounts aren't as deep or common.

Meanwhile, owners of vacation homes in Hawai'i — a location popular with tourists who want an exotic destination but don't want to go outside the United States because of terrorism fears — are raising rates 10 percent to 15 percent for next year, Abubo says.