Q: We are entering a serious inflationary depression over the next few years as the economy is on the verge of collapsing. This means the price of food is going to be going up. The price of oil is going is also going up and this means everything goes up in price! Are you eating out less often? Are you traveling less often and saving money on not using airlines, hotel rooms, car rentals? What are your predictions on the future of this industry?
A: I think Starbucks closing so many stores, Bennigans going out of business, hotels offering gas cards and free night's stays with a 3 night visit and other incentives being offered by the travel industry is a barometer of the health of travel industry and the vacationing consumer. The mayor of our city, San Diego, came out last week encouraging residents to "stay-cation" and spend money on area attractions rather than leaving the county to go elsewhere. Our local attractions are financially suffering and offering substantial discounts to bring in attendees. Most people I know are not going far away from home for get aways, eating in more often and entertaining friends and relatives at home rather than going out. I only eat out if there is a coupon being offered for a free meal or substantial discount. I think people are struggling to pay for increased gas, electricity, water, and food prices so there is little left for discretionary items. Do I think it will get worse for the travel industry, yes I do. I just don't think we have hit bottom yet, particularly in my market and SoCal is a travel destination.