Conspiracy theory?

Okaloosa Island Beach

I received a comment recently from a visitor who was asking if there was a ‘coalition of local Hotel/Motels that controlled prices during the summer season’.  The gentleman thought that as rates were as low as $120 in the winter season and as high as $600 in the summer it must be a plot to rip off tourists.  His suggestion was that such summer prices were beyond the resources of less affluent travelers and that such rates would discourage visitors from out of state.

Naturally I told him that such collusion was illegal and was very much discouraged within the industry. The Florida Restaurant & Lodging Association actually read out an anti-collusion statement before each meeting just to make sure that everyone is aware.

Not only that but to actively jointly raise prices would take away the element of competition that drives the tourism industry.   I’m not saying such practices haven’t happened, but it doesn’t seem logical.

In fact I think there is a case here in Northwest Florida, and in other very seasonal destinations, where the low rates of winter are actually subsidized by the higher summer rates.  Accommodation providers suffer from a difficulty in employing enough staff for the summer peaks. They don’t want to loose good year round employees by laying them off during the winter so in many cases use the profits generated in the summer to keep everything running during the winter.   I think that applies to many restaurants too.

Basic economics would indicate that the law of supply and demand is working well.  Winter rates are low to encourage whatever business can be attracted.  Summer rates are high because there is a finite amount of stock and a limited amount of time when the majority of tourists can be here – essentially Memorial Day to Labor Day, although with schools breaking later and returning earlier that window is getting shorter.

Ideally our tourist season would be spread out allowing for a greater spread of rates. That would also encourage year round employment and less of a scramble for high season staffing.

All of us in the industry know this.  If there is any collusion it’s to try and encourage tourists during the periods outside of the peak summer months. Various attempts have been made to rename this as ‘the best season’. That’s fine as a customer facing branding exercise but within the industry we must call the seasons what they are: low, shoulder, peak and (July 4th week) Super Peak.

Of course by attracting tourists in April, May, September and October we’re in danger of alienating our locals who consider these periods of perfect weather and low traffic as ‘their own’ and reward for putting up with gridlock traffic and no restaurant space in June, July and August. Not to mention Spring Break – so I won’t mention it.

A similar situation exists in Europe where school holidays (vacations) govern package holiday and flight prices.  Another case of supply and demand.  Airlines and tour companies have been accused of artificially raising prices during the vacations making travel for families beyond affordable.  Some parents in the UK have been taking their kids out of school in term time to get lower prices.  They are fined by the schools, but just factor the cost of the fines into their vacation costs.

The solution?   Many little things I fear, each of which would have a small result but the culmination would be sizable.

  1. Encourage the school systems to stagger their break periods.  Some do this, but not enough.
  2. Work with school systems to stop shortening summer breaks. 
  3. Go after markets that have different school vacation periods – Canada and Europe for example.  UK Schools don’t break until July and don’t go back until September. They also have longer ‘half-term’ breaks in October and November and around Easter.  Our weather in those times is perfect for the Northern Europeans.
  4. Expand our marketing to those sectors that aren’t governed by school timetables.  Millennials, younger boomers, empty nesters, the list is almost endless.
  5. Actively promote lower rates outside summer. Many do this already.
  6. Strengthen weekend break and short break marketing, out of high season, to places like Atlanta, Birmingham, Tallahassee and new markets thrown up by the likes of Allegiant Air and Southwest.

We also need to have some regional agreement on marketing.  Continuing to market as just South Alabama, Escambia, Santa Rosa, Okaloosa, Walton, Bay, etc., etc., and ignoring the fact that for some marketing a regional approach is more effective can be counter productive.  Some work is being done in this direction and should be applauded and encouraged.

Of course we also have to get the message out to our visitors, like the gentleman who contacted me, that the reason the prices are high in the summer is exactly because we attract so many tourists at those times. Far from being put off they come anyway, and that lets us put up prices, subsidizing the less busy seasons.

As I say, basic economics.   …..or perhaps there is a conspiracy that I haven’t been told about!

The BEST season is just around the corner. Time to shout about it.

Can you believe that next Tuesday is August 1st? Labor Day is just a month away, and schools go back around August 10. Traditionally the summer tourist season here on the northern Gulf Coast runs from Memorial Day to Labor Day, what was called the 100 days of summer. These days, with schools breaking later and returning earlier, it’s almost the 60 days of summer. From the industry’s point of view, there’s a big weekend for Memorial Day, then a pause until the schools have been out for a week. Independence Day is huge, although the real success depends on which day the 4th actually falls. Then the season continues until the schools return when there’s a breather until the big Labor Day weekend.

As we locals know, the passing of Labor Day brings one of the two best parts of the year (the other being between spring break and Memorial Day) when the humidity disappears, the heat backs off just a tad, and the large numbers of tourists (those with their young families) are absent. It’s the time we all love, the ideal time to live here.

It’s also the time to attract those tourists that we really love. The higher spending, lower party size, Boomers and Millennials who come for the festivals, life style, food and culture. Not that we don’t love the families who fill the beaches in the summer of course.

Successful tourism maximizes income during the Summer Season, so that the fewer numbers of higher spending visitors during spring and fall provide the icing on the cake. A small increase in these guests provide a thankfully disproportionate increase in income. How to attract this small increase?

Obviously we need to keep our attractions, restaurants and experiences open. We need to plan our concerts and cultural events for this time of year. We need to heavily promote what we feel is the best season of the year.

Many of my fellow industry professionals want to ban the term ‘shoulder season’ when referring to Fall. The move is to call it the Best Season. I understand where they’re coming from. To those in the industry, between ourselves, it will always be a case of high, shoulder and low seasons. That’s inescapable. But to the tourists renaming Fall ‘The Best Season’ maybe simplistic. Best for what?

This is where really clever marketing will come in. Tailoring our message to individuals or personalizing, is where tourism marketing is succeeding now. If you love fishing then the Fishing Rodeo is YOUR season. Music, seafood, arts all appeal to small but high spending individuals with the opportunity to travel. I will say that if you Google ‘Fall Festivals Florida’ you’ll be hard pressed to find many in our area. That’s something that can be solved with creative search engine optimization of course. The Alabama coast has cracked that.

The Best Season, Your Season, Festival Season whatever. Let’s get the word out that Fall is the absolutely greatest time to be here.

Harbor Walk Village, Destin

How the iPhone transformed the tourism biz.

Sitting in tourism planning meetings you hear people say “let’s do what we did 10 years ago. It worked then.” Yes, it would be nice to do the same things. There’s something comforting in that, but a recent anniversary made me think that we just can’t roll back time.

The iPhone is 10 years old. It’s not the only smartphone, and wasn’t the first. But it has, like it or not, become the standard bearer for that kind of device. Not everyone has a smartphone, but enough tourists do that it has brought massive changes.

Just looking at the travel, tourism and hospitality businesses, what has the smartphone changed?

People still use printed airline boarding passes but a huge number use electronic passes. Flying into the US you can use a free app called ‘Mobile Passport’ authorized by Customs and Boarder Protection that allows you to pre-file your information and breeze through immigration and customs. I use it. It’s superb.

Where to stay, eat or what to do? TripAdvisor and similar sites offer peer reviews that people tend to trust over ads by hotels, restaurants or attractions. All in your hand, on your smartphone, now.

Book your accommodation? No problem. On your phone at the last minute to get the best deal. I’ve seen people sit outside hotels using their phone to negotiate and book. Same applies to tours and activities. These are usually booked within 48 hours of arrival and online sites like TripShock make booking easy, and the tickets are on your phone – no paper. All you have to do is guess that the weather will be OK. No guessing, DarkSky or a dozen other apps will give you accurate, hour by hour forecasts.

 

How do you get to where you’re going? Built in GPS with turn-by-turn directions, no matter if you’re driving, walking or on public transport. Traffic reports too – yeh, 98 is still blocked.

Don’t bother to carry a camera. Your phone has a camera that makes yesterday’s versions obsolete. Postcards too. You now share your travels to social media friends the world over and you can post your review of the restaurant you just experienced. In places like Jackaccuda’s you can scan a little flag in your meal and see where and when your fish was caught, and who by!

Don’t want to drive? Book an Uber, from your phone of course.

No transistor radios on the beach anymore. You carry your music library with you, and stream what you don’t own. Oh, movies and TV too.

That’s only scratching the surface. Virtual tours of museums and historic sites; payment from your phone; on line shopping; news, books. Oh, and it’s a phone too!

If those are the changes for tourists, think of the changes for hotels, rentals, airlines, car rentals, attractions, restaurants even, in our area, Charter Boat Captains.

Our tourism experience has changed massively in 10 years. But wait, coming soon, virtual and enhanced reality. I’m excited. How about you?