Thursday, May 22, 1997

Bigger crowds of summer travelers pushing up costs

By MARA DER HOVANESIAN / Knight-Ridder Newspapers

You've worked hard the past few years, racking up vacation time you can't afford to take. Now that business is booming and your job is more secure, it's time for a break.

Expect to be in the same boat, airplane and train with thousands of other Americans.

The summer travel season, which kicks off Memorial Day weekend, is typically the busiest time of the year. Pent-up demand from work-weary consumers is expected to make airports, island resorts and other getaways more crowded and slightly more expensive in 1997.

"Traffic is extremely strong - the percentage of occupied seats is going to be higher, giving the airlines some pricing power," said George Melas, associate analyst with Bankers Trust in New York.

Business travelers, who typically book trips with less than seven days advance notice, will pay up to 15 percent more in airfare this summer, said Melas. Fares for price-sensitive leisure travelers will rise only slightly, but consumers should be prepared to contend with heavy restrictions, "black-out" dates and the need to book early.

Major airlines led by United Airlines already boosted some domestic airfares 3 percent this month, but people don't appear to be shying away from the more expensive destinations, such as Hawaii and New York. The Travel Industry Association of America said it's a sign that the strong economy is making people more willing to spend.

"Americans are really traveling this year," said Ann Caputo with Love to Travel in Clayton, Calif. "They've waited so long to take a trip that they are saying 'I'm definitely going to go this year.' "

In a survey released last week, the TIA reported that a record number of people - 30.8 million travelers - are expected to travel this Memorial Day weekend, described by the industry as running from Thursday to Tuesday.

For the summer season, the association said, travelers expect to pay an average of $1,112 on their longest trip, up from $1,076 last year. Florida, California and Hawaii are still favorite destinations. Also, one-fourth of those surveyed said they plan to travel more this year than last.

Air travel nationwide will grow 3 percent this summer to 33.9 million trips of 100 miles or more, the survey also said. Travel by car, truck or recreational vehicle will rise 1 percent to 188.6 million trips.

Bob Mitchell, president of Contra Costa (Calif.) Travel Service Inc., said he's noted an increase in demand and prices for European trips and Alaskan cruises. The strength of the U.S. dollar abroad is a contributing factor.

"Especially in Italy and Spain, where we thought they were deals," he said. "They are going out of sight pricewise."

Travel agents say there are vacation deals to be found, if consumers are willing to reserve far in advance, or wait for last-minute fire sales. Some say the Internet is a good place to start.

Still, Sergio Terramoccia of Pleasant Hill (Calif.) Travel Center said most people have forgotten that vacations cost money.

"Looks like everyone is caught up into the Southwest (Airlines) mentality," he said of discount airlines.

For some, such as Rosemary Stafford, money and crowds aren't the issue. Stafford, who takes two extensive trips each year, leaves for the Balkans and Sweden in June. She's willing to deal with the hassle of summer travel to satisfy her wanderlust.

"When I started traveling 12 years ago, I used to figure $100 a day; now you have to figure at least $200 to $300," said the 68-year-old Pleasant Hill resident. "If you want to go, you have to pay the price."