Busier Than Busy

The travel industry was giving thanks this week as optimism about the economy boosted airline and hotel reservations despite higher prices.

Los Angeles International Airport estimated that departing planes were booked, on average, to 90% of capacity Wednesday and Sunday--traditionally the busiest days of the holiday season. Across the nation, airline travel was up 6.7% over last Thanksgiving weekend.

More of those passengers are staying in hotels instead of doubling up with family and friends. Among the chains reporting increased bookings is Westin Hotels, where reservations in Southern California are running 10% to 14% ahead of 1996.

“Obviously, our business goes hand in hand with the economy,” said Jim Petrus, area managing director for Westin Hotels & Resorts.

“Next year is expected to be a banner year for us with economic confidence up and corporate business travel up,” he added.

With planes filling up quickly, travelers must be flexible about when they fly--leaving earlier and returning later than they might like. Many people are heading out of town today and returning Friday or Saturday.

At the Burbank Airport on Wednesday morning, some holiday travelers said they would be coming home Saturday to take advantage of discounted fares.

Judy Antoon of Woodland Hills said she paid $80 for her round-trip ticket to San Jose, which she purchased after seeing an advertisement for a special rate for Saturday returns.

Some travelers complained about higher fares.

Jeff MacDougal of Glendale said he travels to San Jose frequently. He purchased a round-trip ticket from Southwest Airlines one month ago to visit family on Thanksgiving Day. The $130 ticket was about $30 more than usual, he said.

Jeremy Rothman, a business traveler from Hollywood, said he paid United Airlines $238 for his round-trip ticket to Fresno.

“I think the airlines should maintain the same fares through the holidays,” said Rothman, who was returning home the same day. “The people who get penalized are those who have to work.”

The airlines declined to discuss ticket prices during the holidays. But generally, air fares for leisure travelers have gone up 6% since October 1996, said Bob Harrell, air fare consultant for American Express Travel.

“In the late ‘90s we’re seeing a combination of a robust economy, but fewer [airplane] seats,” Harrell said.

Bookings for TWA on Thanksgiving Day to destinations in California and Florida sold out in mid-November, said Donn Walker, spokesman for the airline.

“Our bookings are up substantially from Thanksgiving Day through Christmas and even through early January,” he said.

That’s good news for the airline, which suffered losses last year in part due to the fatal explosion of Flight 800 over the Atlantic Ocean in July 1996.

“We had a real tough year last year, but we’ve made some huge operational turnarounds,” he said. The airline has added 60% more first-class accommodations and offered discounts to seniors.

United Airlines reported record passenger loads into Phoenix and Seattle, while American Airlines was “slightly ahead this year,” according to spokesman Tim Smith.

Delta Airlines is already offering a special two-day fare for travelers willing to leave on Christmas Eve and return Christmas Day. Such specials are unusually early, said Thom Nulty, president of Associated Travel International.

“Savvy travelers are realizing they have to be flexible,” said Nulty, and learn how to spot deals, use travel agents effectively, and shop around. Nulty said that some airlines offer incentives for passengers to stay over extra days.

These incentives are bolstering hotel bookings and rates, those in the industry say.

“Travel and hotel stays are very closely correlated to what’s happening to airlines,” said Melissa Mills, research consultant for PKF Consulting firm.

Radisson hotels throughout Southern California have seen up to a 9% increase in bookings compared with last year, said Clyde Guinn, regional vice president for Radisson Hotels Worldwide.

“We’re seeing tremendous demands in San Francisco and New York,” especially in the first week of December, said Guinn.

December is one of the weakest months for hotel stays, but Guinn said he has seen an increase in families traveling to major cities for mid-December shopping sprees.

“We’re in an age when there’s more disposable income and we are definitely seeing travel trends improving,” he said.

Hotel rates in Orange County increased 12% over last year, and in Los Angeles County 8%. An average hotel room in Los Angeles County will cost a traveler $96.77, up from $89.68 last year.

“Those are pretty hefty increases,” said Mills of PKF. Higher occupancy rates have made hotels confident they can regain losses over the last five years, she added.

While leisure travelers spent more this Thanksgiving to see relatives and friends, they will still not spend as much as those traveling during Christmas.

“People in general are willing to spend a reasonable amount of money to have that turkey dinner,” said Nulty.