Special New Packages Designed To Offset High Gas Prices, Drive Business To Hotels

NATIONAL REPORT— Soaring gasoline prices have the potential to adversely affect the hotel industry if consumers scale back travel plans, with drive-to destinations especially vulnerable. However, it appears that so far the hotel industry’s business has not been seriously impacted. To ensure that guests keep coming despite the escalating gas prices, hoteliers around the country have devised a number of different programs. Some are offering gas gift cards, others are giving credits on accommodations and still others have rolled out packages with discounts on meals, activities and public transportation. Gaylord Hotels is offering a $25 per day room credit to offset the high cost of a fill-up from now until Sept. 10. A two-night minimum stay is required; there is no limit to the amount of credits a guest can obtain. “The offer is for the transient customer, not the groups which account for 70% of our business,” said John Caparella, chief operating officer of Gaylord Hotels. “We’re targeting the transient leisure customer— about 75% of that business is drive in,” he said. Despite the steep prices for gas this spring, Gaylord has not seen a dip in business, according to Caparella. “There has been no fall off. At all three of our hotels, first-quarter numbers exceeded budget and forecast and there was strong transient demand. There is a very robust economy out there,” he said. The company’s hotels include the Gaylord Opryland Resort & Convention Center in Nashville; the Gaylord Palms Resort & Convention Center in Kissimmee, FL; and the Gaylord Texan Resort & Convention Center in Grapevine, TX. Another large resort in Texas has also not seen business decrease with the higher gas prices. “We haven’t seen a drop off in business and I think that’s because Texans are known for driving to their destinations,” said Melody Campbell-Goeken, spokesperson for the Hyatt Regency Hill Country Resort and Spa in San Antonio. “Some of our guests have been driving here for 14 years [since the resort opened]. It’s become a family tradition,” she said. About 90% of the clientele at the Hyatt Regency Hill Country Resort is leisure, according to Campbell-Goeken. “They drive from Dallas Fort Worth, which is five hours away; from Houston, which is three hours; and Austin, which is about one hour,” she said, adding that they drive big vehicles including a variety of SUVs. Even though business is not down, “gas prices are a huge deal for us,” Campbell-Goeken said. To ensure business remains healthy, the resort is offering a Family Vacation Package for the summer, she noted. It includes a $35 daily breakfast credit; valet parking; 50% off green fees and 15% off spa and golf retail purchases; and a $25 activity credit. The package is priced at $249 per night. Campbell-Goeken is upbeat about the outlook for business this summer. “Last summer occupancy was 97% and this summer it should be even higher,” she said. Business at the Millennium Maxwell House-Nashville has been impacted to some degree by the rising cost of gasoline, according to Theresa Elder-Smith, director of sales and marketing. She noted that occupancy in April was 70% versus 72% in April ‘05. “When we saw this happening we started transitioning for higher occupancy with group business and we’re also developing packages like the Family Fuel Package,” she said. That package includes overnight accommodations; up to a $20 gas credit; complimentary breakfast; and a special rate for a second room. Rates for the package, which is available through Dec. 30, 2006, begin at $129. “Only a small percentage of our guests drive, but those that do will drive five to six hours to get here,” Elder-Smith said. “With this package we’re saying, ‘we would like you to visit Nashville,’ and we felt this would get the message out.” The Millennium Hotel Minneapolis is also offering a special package for the summer. Called the Hot Summer Special, the package consists of overnight accommodations and a $10