SF Gate: Empty seats mean more bargains ahead

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This article was sent to you by someone who found it on SF Gate.
The original article can be found on SFGate.com here:
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inancial1122EST0095.DTL
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Tuesday, January 29, 2002 (AP)
Empty seats mean more bargains ahead
KORTNEY STRINGER, And


   (01-29) 08:22 PST (AP) -- MELANIE TROTTMAN The Wall Street Journal
   With many seats still going empty on overseas flights, U.S. travelers can
expect more hot bargains to Europe during the cold winter months.
   International airfares dropped 13.8 percent in December, yet nearly a
quarter of the seats on international flights were empty, according to the
Air Transport Association. Many travelers are still leery about flying,
and there's a preference during the winter months toward warm-weather
destinations closer to home. These factors have led to heavy discounting
and plenty of perks in European travel.
   Dyana Gearhart, a Chicago human-resources consultant, said she originally
planned to take a cruise to the Caribbean in March until she saw the
bargains to Rome, London and Paris. She opted instead for a six-night trip
to Paris for $594, which covered hotel and transfers as well as airfare.
   "Most of the time you can (only) fly there for that price," the
23-year-old said. "I can't afford Europe in the summer, and even if I
could, it's too crowded ... and the prices won't ever be this cheap
again."
   There are always bargains to Europe during the traditionally slow winter
months. But travel agents and industry experts say this year, the deals
are a steal. "These are probably the best deals ever," said Robert Titley,
a spokesman for the British Tourist Authority.
   British Airways, for example, just wrapped up a sale on round-trip fares
to 45 European cities for travel through April 6. A flight from New York
to London was as low as $198 -- excluding taxes, which can add $110 or so
-- and included a free two-night hotel stay valued at $100. British Air
even gave travelers $100 off the plane fare instead of the hotel
accommodation, making the base airfare not much more expensive than
round-trip cab fare between John F. Kennedy International Airport and
Manhattan -- $70, plus tolls and tip.
   British Air spokesman John Lampl said the sale filled some seats, but not
enough. "There are a lot of available seats out there and we want to try
to sell as many as we can," he said. British Air's cheapest New
York-London round trip is still $198, but without the free hotel.
   Last week, online travel agency Orbitz LLC, which is owned by the largest
U.S. carriers, e-mailed customers to tout sales on Web-only fares from AMR
Corp.'s American Airlines and Northwest Airlines for travel to Europe. A
round-trip American flight from St. Louis to Brussels is $334, while a
Northwest flight from Washington, D.C., to Venice is $296. (Airfares are
subject to frequent changes.)
   To lure U.S. travelers, four- and five-star hotels in cities like Paris,
Rome and Milan are slashing rates through March. Some are even throwing in
extras like breakfast, champagne and roses.
   Radisson SAS Hotels & Resorts is discounting rates at its 100 properties
in Europe through March 31. Rooms at the Radisson SAS Palais Hotel in
Vienna -- a five-star accommodation constructed out of two palaces built
in 1872 -- are $134 a night, down from $236. A room at the Radisson SAS
Alcron Hotel in Prague, Czech Republic, is $132, down from $246.
   Travel agents say rooms in London are even cheaper. Robert Diener,
president and co-founder of Dallas-based discount-lodging provider Hotel
Reservations Network Inc., said rates there have dropped an average of 10
percent to 25 percent from a year earlier. "London is the No. 1
destination for Americans and that's where we've seen rates come down most
significantly," said Mr. Diener.
   HRN lists on its site the luxury Howard Swissotel at $219.95 a night in
London, compared with the typical $300 winter rate. At the Blakemore Hotel
near Hyde Park, the site offers rooms -- and breakfast -- for $59.95 a
night for two, compared with $119 last year.
   Kelvin Houchin, executive vice president for Radisson Edwardian Hotels, a
four- and five-star chain in London that has cut rates as much as 60
percent, said occupancy rates are still down about six percentage points,
but the deals are paying off. "We're seeing a comeback in the leisure
market," he said.
   Still, travel agents say U.S. travelers are scarce in many European
cities. Elaine Newnham, president of Time to Travel in Orlando, Fla., said
rates to Europe are 30 percent to 40 percent cheaper this year, but the
number of trips the agency has booked this month is down about 80 percent.
She said she pitches her clients on bargains to Europe, "but no one's
getting them except for business travelers."
   Keith Waldon, a spokesman for the Virtuoso high-end network of travel
agencies, says demand is so low for certain destinations in Western Europe
that Virtuoso travel agents are having to market those cities to United
States travelers -- something they never had to do before because those
places were so popular to begin with.
   In a recent Virtuoso survey of about 6,000 travel agents on the biggest
motivators for travel now, 42 percent said travelers were unwilling to be
intimidated by terrorist attacks, while 27 percent said value and deals
were the reason people are traveling.

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Copyright 2002 AP

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