Goodbye 2008!

Anyone sad to say goodbye to 2008? Today, the 31st of December is the last chance to talk about the best of 2008 and what to do in 2009, so articles are everywhere.

For travel, the predictions seem to be that 2009 will be a tough year. Airlines will continue to struggle (as if that mattered to anyone's travel plans anyway!); and credit will be tight. However, when I talk to people, especially people in the know like CPA's and other business and tax advisors, the overarching thing seems to be fear. There are problems out there, but there seems to be money on the sidelines and a pent up demand for services and goods that is not breaking free for now due to fear.

Travel consulting firm Xola believes that 'pent up' demand will continue to rise in 2009 and then explode in 2010 when the overal 'global climate' improves. What most are predicting is a slow 2009 and then late in the year things will start to change. Demand will take off in 2010 and so then will all associated services. What will make this change? Perception mostly, but that will be rooted in the general 'feeling' of businesses and consumers. Banks that feel ok to lend again will help business get rolling which will then reinvest and spend and when the media starts talking about these good things the consumer will start to feel like its safe to go out again. That is when the money will start to flow again.

So, that's the perception issue. How can you get a deal in 2009 if you want to go? I can only address what I think is applicable for Europe since that is what we study and sell. Will I go to Europe in 2009? You betcha. I plan to be at the Tour de France and ok, its business, but I will take the family too. So, I'm putting my money where my mouth is. I'm also lining up my air tickets now. Space and routing is the factor; and I'm going to know exactly what that is going to cost me now and then work on the rest over the next 6 months and find ways to save.

What can people do? The euro is back up again from previous lows; so be aware of what the valuations are and watch for a time to lock in some services. Just 3 weeks ago services could have been had, and prepaid, at 10% less than today. So, know what is a good rate. For 2009, I would say anything below 1.33 dollars US to Euros is good. Canadians, Aussies - you have to know your market likewise.

Deals will abound this year. Suppliers are cutting margins just to cover costs and 'stay alive'. Another idea, suggested by me - a tour operator/supplier: book the pre-packaged tour! The more customization requested, the more costs have to be increased to adapt and pass on. We offer self guided trips that can go any date; if you book a package as we offer it, you will get our best price which is posted. We spread certain costs of support and route development out and once its created, we have lower costs to reproduce it. If we have to create something new, then costs are higher. Now, perhaps it sounds less 'unique' to book the package off the shelf, but speaking of our product which is mostly self-guided, that couldn't be less true. Its not like 5000 people per week are doing this, like some stomp up the Eiffel Tower. You will most likely encounter very few others doing it on the same dates and so it will feel like your own personal program. Et voila, yet another reason Self Guided is superior. Don't forget that the cost is WAY less than a guided trip.

Bring on 2009! Happy New Year!

L

New Carcassonne Tour

New - a completely different itinerary that still includes Carcassonne! The old tour was a nice tour and very much off the beaten path, but it was perhaps a little too 'off-beat' ? One problem we finally had this year was that one night of this tour cost us 350 euros! Ok, that does include a dinner in a 2 star Michelin restaurant, but we didn't think that was necessary anymore. So, ta-da...

A new Tour! The highlight is still of course the UNESCO World Heritage site of Carcassonne's Cite Medieval; but we have added the super charming village of St Guilhem le Desert and Moureze; both in the interior country of Languedoc/Herault; but filled with charm. From Wikipedia:

Saint-Guilhem-le-Désert is one of the Plus Beaux Villages de France ("The most beautiful villages of France").

The village has maintained its historic state. Because of its isolation, in 806 Saint Guilhem established here the monastery of Gellone.

Situated in the narrow valley of the Gellone river where it meets the steep sided gorge of the Hérault River, Saint-Guilhem-le-Désert is essentially a mediaeval village located on the Chemin de St Jacques (St James' Way) pilgrim route to Santiago de Compostella.

So, the new price for this gem: 995 euros/person in double occupancy! 7 nights and 8 days and all that is included!

L

More Options, Better Values for 2009

Our cycling and hiking tours are now available at prices even lower than last year. We have completed a transition in our new offices in France that allows us to cut certain operating costs and we have studied every single tour we offer to find a way to make them less expensive but still of the same high quality! Sounds like some marketing pitch for a new mobile phone!

We have actually 'engineered' our tours in detail this winter and found ways to save for all our travelers:

1. cut down on taxi transfers

2. find alternate hotels that don't impose both breakfast and dinner

3. negotiate better taxi costs for transfers

4. group transfers more efficiently

5. offer telephone orientations in some outlying regions where local guides charge exhorbitant rates

6. work with different shipping companies for better rates on bike delivery

7. offer MORE hotel choices!

This last one is a big one as we now price 2 star hotel versions for many trips. In recent years we have seen a lot of hotels renovate but resist the upgrade to a new category because of certain silly demands that don't seem logical to hotel owners. For example, moving from 3 star to 4 star may require an elevator; or a larger reception area. Moving from 2 star to 3 star may mean having staff on the front desk 24 hours a day. None of these criteria have anything to do with quality of the lodging that many travelers care about: room size, amenities, bed quality, cleanliness, charming/welcoming staff, food quality, general ambiance.

We continue to push QUALITY and VALUE. Now when times are hard it seems people are coming back to these marks in their products or services. How many times do I now hear Home Depot saying "quality, value, best price" in their ads??? Its not a fashion statement for us, we've been on these themes for ever. The good news is that we offer a price point of high quality in 2 stars, 3 stars, and even in 4 star lodging.

Sample: Provence Classic 5 Night Cycling Tour - one of our most popular:


695 euros/person in double occupancy using 2 star hotels
895 euros/person in double occupancy using 3 star hotels
1075 euros for upgraded and 4 star deluxe hotels

If you are 3 persons, the triple rate per person is less in each case. The tour includes all the same things: lodging, buffet breakfast daily, 2 dinners, all luggage transfers, orientation on arrival day with bike delivery and set up, bike return, route book with maps and cue sheets and tourist information and restaurant suggestions, on call emergency support from our local office.

After 15 years of doing this, at these rates we are almost back to where we were 5 or 6 years ago in price! The Euro is high against most currencies, but way down now from where it was just 4 months ago dropping almost 20% in 4 months!

So, with a little planning on the airfare side of it; a nice European vacation can be had for a surprising good rate still!

L