Sugar Tours

I just returned from the North Carolina Motorcoach Annual Meeting, which consists of over 30 motorcoach tour companies and over 200 suppliers from all facets of the travel industry.

The pulse of the industry in North Carolina is strong but very optimistic.  While bookings look strong for the spring due to student travel, bookings for the summer and fall look weak. 

In speaking with many of the owner/operators the trend of the industry seems to be shorter trips of one to three nights and days trips.  Most companies are looking for inexpensive and value added packages to destinations that are reachable within a days drive from their location.  

Many issues were discussed during the meeting and on top of the agenda as always was deposit, comp and cancellation policies.  The numbers of people traveling via coach are smaller and group sizes have shrunk.  The other trend that has hit the market is later bookings on departures.  Many operators are seeing tours fill up later usually less than 60 days prior to departure. With this in mind hotels and attractions have to rethink their policies.  Most operators are looking for deposits to be due 30 to 60 days prior to arrival and for them to be a minimal deposit and to have balances due 7 to 14 days prior to arrival.  Hotels also most consider lowering their comp policies to a comp for 10 to 15 rooms occupied as this will help the operator in keeping their cost lower which will give them the opportunity to operate the tour. 

The issue of non-refundable deposits was still a major concern.  With the state of the economy it has become impossible for tour companies to send out non-refundable deposits.  These deposits would mean that companies would have to send out tens of thousands of dollars on tours that might not operate which would leave them with a deficit. 

Just remember that in the last four months we have seen five diamond resorts lay off 50% of their staff, resort developments stop in Florida and Tennessee and many other travel related businesses close their doors and layoff entire staffs without notice.

It is time for the travel industry to unite and work together in this down economy.  If we can not work together we will see failure in the industry as a whole.