Monday, Jun. 30, 2008
Fuel prices trim tourism
Vacationers give up dreams of long road trips
E-Mail
Print
tool name
closeSurging fuel prices are causing vacationers to change their travel plans, and there is no relief in sight for the fall season, a researcher told the Myrtle Beach business community on Tuesday.
People are planning fewer trips, staying closer to home and spending less on shopping and souvenirs when they travel, according to a recent survey conducted by Equation Research for the Myrtle Beach Area Chamber of Commerce. More than 90 percent of visitors to the Grand Strand drive here.
"It's no surprise that gas prices are wreaking havoc with the tourism industry, but what's alarming is the degree to which the drive market has shrunk," chamber President Brad Dean said. "We'll be challenged to grow in this economic downturn."
Find Myrtle Beach businesses offering gas incentivesThe Strand has suffered this season as people make shorter visits and spend less. In the six weeks ending June 7, hotel occupancy - which Dean describes as the industry's batting average - is down 14.4 percent, according to the Clay Brittain Jr. Center for Resort Tourism at Coastal Carolina University.
In some cases, the higher gas prices are beneficial to Myrtle Beach. Twenty-one percent of people surveyed who live more than 300 miles from the Grand Strand said they were more likely to visit Myrtle Beach because of high fuel prices.
High fuel prices are what drove Wendy Richters of Clayton, N.C., and her sister Jennifer Jordan of San Antonio, Texas, to ditch plans to go to Hawaii and instead celebrate a family graduation in Myrtle Beach. "We found a hotel and then tried to find flights," Jordan said. "With gas prices and everything, you just can't" find an affordable flight.
While here, they also made adjustments to fit their budget. Instead of eating out, they bought groceries and will cook in the kitchenette at Camelot by the Sea. Plus, they got a discount for booking the room online.
Offering incentives - particularly tied to gas promotions - is one way to lure visitors back to the beach, said Mike Travis, chief executive of Equation Research.
A free gas card was the most popular promotion among those surveyed - 76 percent said they would be more likely to consider a vacation if offered a gas card. The next highest was a "stay two nights get one free" promotion, which 58 percent of people surveyed said they would find attractive.
Myrtle Beach hotels are starting to integrate gas giveaways into marketing, a tactic that has proved popular in places such as Virginia, Florida and Massachusetts.
The Marina Inn at Grande Dunes is offering guests a 10 cents per mile discount using the distance calculated by MapQuest for guests making a minimum three-night stay and up to 1,600-mile round trip.
Johnnie Bourque, marketing director at Paradise Resort, said he's seen a good response to his property's gas promotion - $30 off a hotel bill of $700 to $1,400, and $50 off a more than $1,400 bill.
That's just one of the incentives Bourque said the hotel is using.
"We don't let them walk out," he said. "They walk in, they're here to stay. They don't like an incentive, we throw another at them."
Gas prices are also shaping people's behavior when here.
Pegi and Bob McCauley of Douglasville, Ga., who are in Myrtle Beach for the week with their grandkids said they have been eating in for breakfast and lunch and having fast food or pizza for dinner.
For dinner on Monday night, they went on foot in search of a place to eat.
"At $4 a gallon, we can walk," Bob McCauley said.
At least Myrtle Beach's advertising seems to be working, the research showed.
More people are, without prompting, naming Myrtle Beach as a place they want to vacation. In 2006, surveys showed that although Grand Stranders may think everybody knows about Myrtle Beach, the reality was many people in the top feeder states were unfamiliar with the place.
This year, when asked an open-ended question about where they would want to go to on vacation, 34 percent of survey respondents first said Myrtle Beach, and 29 percent said Orlando, Fla. Last year, 39 percent said Orlando and 21 percent said Myrtle Beach.
"That's a testament to getting out in front of the audience, and getting out to them with the right message," Travis said. "Undoubtedly, the ad campaign has had a tremendous impact on Myrtle Beach ratings."
Still, Dean said there is more work to be done. "It's encouraging to see the awareness and the desirability of the destination rising," Dean said. "But frankly there's no line for awareness or desirability at the bottom of the deposit slip."
While people are perhaps booking shorter stays, tourism experts say they will still come. Historically, Americans have taken vacations, even in the worst economic times.
"Gas goes up, gas goes down, nothing you can do about it," said John Parsley, a contractor from Ashland, Ky. "You've got to take a break. If not, it will drive you crazy."
Find more on MyrtleBeachOnline.com
Gas-related discounts for lodging along the Grand Strand
More tourism news in the "Inside the Industry" blog
The full report on gas prices and how they are affecting traveler behavior
Concern about the economy
65 percent | Very concerned
31 percent | Somewhat concerned
3 percent | Not very concerned
1 percent | Not at all concerned
How will gas affect your travel plans?
66 percent | will not consider a trip over 300 miles if gas hits $4 to $5 per gallon
19 percent | have reached their breaking point
How have your vacation plans changed this year?
People within 300 miles of Myrtle Beach
Increased | 9 percent
Same | 36 percent
Decreased | 55 percent
People more than 300 miles from Myrtle Beach
Increased | 5 percent
Same | 44 percent
Decreased | 51 percent
Factors affecting vacation plans (results from last year)
81 percent (46) | fuel prices
52 percent (43) | vacation budget smaller
41 percent (46) | time availability
32 percent (n/a) | lower value of dollar
26 percent (24) | increased non-credit-card debt
With gas prices at an all-time high, how does this affect your likelihood to consider the Myrtle Beach area as a leisure vacation destination?
People more than 300 miles from Myrtle Beach
21 percent | more likely
43 percent | no effect
36 percent | less likely
People within 300 miles of Myrtle Beach
6 percent | more likely
40 percent | no effect
54 percent | less likely
@Nyx.CommentBody@