shueman
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Alta Loma CA
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Posted: May 10 2006,6:40 am |
Post # 1 |
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From Havasu Herald on-line:
Visitors coming, but spending less, owners say
By DAVID BELL
Tuesday, May 9, 2006 11:46 PM MDT
High gas prices this summer are not expected to stop visitors from coming to Lake Havasu City this summer. But those gas prices could play a factor in how much they spend once they're here.
Robert Tucker, vice president of operations with Sandpoint Marina and RV Park, said price hikes in gasoline prices last year had a noticeable impact on the bottom line. “Our occupancy is running close to historical levels but the spending levels are way down.â€
Meanwhile local restaurants should fare better as long as the value is high. That's according to Mike Bradley, owner of Juicy's River Café, Juicy's Noodles.
“They're going to spend the money on gas and on food. They may not spend as much at high-end restaurants, they may eat more thriftily, but they're not stopping. Places that provide a truly good value should not be affected,†Bradley said.
Jarrod Lyman with the Lake Havasu City Convention and Visitors Bureau told Today's News-Herald that hikes in gas prices are not expected to slow down the number of visitors making the way to the lake and the city this summer. “Our visitors have a lot of disposable income. When you look at our demographics, gas prices don't discourage them that much. They have a lot of money to spend.â€
The Travel Industry Association of America is estimating an additional $30 for gas for an 800-mile roundtrip by car. For larger vehicles or those towing a trailer, the estimate is an addition $50 for the same 800-mile roundtrip. The TIA reports that higher gas prices will typically cause a vacationer to modify travel plans but not cancel.
Tucker said those travel plan modifications result in drop-offs in watercraft rentals, groceries and even gasoline purchases. He said that boaters that would spend $150-$200 for a fill-up in premium fuel in 2004 were limiting themselves to $40-$50 in 2005 and that trend is expected to continue.
“I go to buyers shows for business and I've established relationships with others in the industry over the years so we talk. These are people in the industry from San Diego, Newport Beach, California, Nevada and Arizona. I told one how much our net is down and he said his net is down 85 percent,†said Tucker.
The solution, according to both business operators, is to modify the business plan. Tucker said Sandpoint is using a winter idea in the summer.
“We usually limit our number of summer monthly camp/RV space rentals, because we make more money on a daily or weekly rental. But we've talked with customers who say it costs too much to pull an RV back and forth every weekend. So we offered inner-park monthly rentals and it's 100 percent sold out for the summer,†he said. “Hopefully saving the gas money back and forth will allow them to spend more while they're here.â€
Bradley said creating value and keeping prices low has not only resulted in keeping his restaurant busy, it's allowed him to expand to a third operation, Café and Bridge City Bistro which opens next week.
“It changes my thought process, when I fill my vehicle, seeing that it costs me $10 more. But the summer people, their mindset is different. I think they do what they do and are prepared to move forward and not change their plans. I don't think they're not going to not come and they won't not spend,†he said. “The most pleasurable thing we do most often is eat. Are they going to quit eating? No.â€
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Higher costs mean less trips for the Shueman Crew.... 
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12-24-2025 Three Word Post.....The Next Generation.... (Rep.#20,034) from: GoFastRacer
