The US Virgin Islands Best Guide

AIR FARE EFFECT ON TOURISM IN STT?

Notifications
Clear all

AIR FARE EFFECT ON TOURISM IN STT?

Please Register / Login to take part in discussions about the Virgin Islands.


53 Posts
21 Users
0 Reactions
9,768 Views
(@oceanman)
Posts: 16
Eminent Member
Topic starter
 

What effect is likely from these skyrocketing prices on tourism, utilities and real estate values in STT? Effects should be kicking in soon. Only the wealthy will be able to fly. Families and middle class folks are doomed. My guess - tourism down by 50% minimun. Real Estate values - down by 40% minimum within 2 years.

 
Posted : June 26, 2008 8:32 pm
(@bigkahuna)
Posts: 39
Eminent Member
 

Just read the WSJ, American has cut flights like crazy. Come September you won't be able to get a direct flight from Boston. These are cold hard facts. STT is directly tied to tourism. Doom and gloom? I think it's more like reality. I'm saying get ready now for potentially a very bad busy season.

American is now charging $230 for a flight to PR (up from $120) last year. $230 for an 18 minute flight....

Choose to believe it or not. I'm just giving my opinion on what I think is coming. I hope I'm wrong!

 
Posted : June 29, 2008 12:25 pm
(@teachk123)
Posts: 12
Eminent Member
 

We are coming to STT next week!
I booked LAX to STT for $498. Most people on the West coast make Hawaii their summer vacation destination, however the air fares to Hawaii are outrageous! $498 may sound like a big increase to what was charged, say 6 months ago, but considering fares to Miami are pretty close to that etc, I thought we got a pretty good deal! My daughter is leaving this week on a missions trip to Rwanda, airfare $2600. She had a lot of garage sales, car washes etc to raise money. My point is, is people want to go, they will find a way to get there, save those quarters, you'll need a lot and it may take awhile but if you really want to go, you will make it work!
We are staying 11 days on STT, I can't wait!!

 
Posted : June 29, 2008 12:37 pm
(@bigkahuna)
Posts: 39
Eminent Member
 

Cool teachk, enjoy your stay! Any questions PM me, I'd be happy to suggest stuff. 😎

 
Posted : June 29, 2008 1:03 pm
(@curly)
Posts: 1
 

I agree with stthomasblog, you people are in for a rough time in paradise. I doubt there are enough wealthy people to support your economy for a year or more.

 
Posted : June 29, 2008 5:05 pm
(@kathyzhere)
Posts: 33
Eminent Member
 

People are STILL going to come and visit the islands!!

It takes a lil' more patience, money and creativity to book flights for sure. I'm paying more than my family next Feb to STT and
they're flying BOS-STT...I'm flying FLL-STT, oh well!!

I'll cut OTHER corners to fund my vacations to the Caribbean or anywhere for that matter. We just left STT a coupla weeks ago and have
another trip planned for FEB to STJ for hubs 50th. There are 5 couples going and renting Vistaero for a week. Yahoo!!

Although after that STJ trip we may opt for more cruises for sure for the value.

So I agree with the statement by teachK 123...if you really want to go you'll make it work.

Enjoy,
Kathy

 
Posted : June 29, 2008 5:27 pm
(@islandrealtor)
Posts: 82
Trusted Member
 

stthomasblog - where do you get your information for real estate sales? I am a realtor and just checked the MLS and there have been five sales between 1/08 - 6/08 of homes over $1,000,000. Last year the same time period saw 15 sales of homes priced over $1,000,000. This is not to say that the real estate market is booming - it isn't. It is very slow as you can see from the above figures. But one sale in the last fourteen months is not correct.

Donna Wheeler

 
Posted : June 30, 2008 10:25 am
(@captain-john)
Posts: 29
Eminent Member
 

As I recall, AA has always stopped their direct flights form New York and Boston during the height of hurricane season. (Aug Sept Oct Nov)

 
Posted : June 30, 2008 11:23 am
(@bigkahuna)
Posts: 39
Eminent Member
 

ST. THOMAS - Members of V.I. Port Authority's governing board said Wednesday that the agency must start scaling back on expenditures because pending airline cutbacks could eliminate about $4 million in revenues in Fiscal Year 2009.

In late May, American Airlines announced plans to reduce flights between 11 and 12 percent to help the carrier save money on fuel costs.

In the Caribbean, those cuts will dramatically reduce American Airlines flights out of San Juan, Puerto Rico's Munoz International Airport - American's major hub in the Caribbean and to the Virgin Islands.

http://www.virginislandsdailynews.com/index.pl/article_home?id=17625724

In a message to employees, Bowler said that “the crisis in the airline business is real, and the steps American is taking to reduce its schedule are necessary.” (Source: Travel Weekly)

http://www.virginislandsdailynews.com/index.pl/article?id=17625151

 
Posted : June 30, 2008 3:02 pm
(@margy-z)
Posts: 313
Reputable Member
 

As Catain John said, the airlines always scale back the fall flight schedule to the USCI. Not to say that flights won't be cut but from the postings I have read on this and other forums, folks are taking this fall change as if those flights won't be back. Our favorite schedule to STX is gone for the fall but back for the spring so we have booked it - getting four tickets with miles and purchasing one ticket at about 15% more than we paid this spring. We're tracking that one ticket with yapta to see if it ever goes down enough to request a voucher - but, at 15% more we will take it. There may be further cuts and route changes but, hopefully, we are set. As the economy worsens we will make changes to other personal spending in order to be able to travel. My alternative would be therapy and that would be so much more expensive...:D

 
Posted : June 30, 2008 3:14 pm
(@bigkahuna)
Posts: 39
Eminent Member
 

Hey Donna, I know a few real estate people on the island as well as one of the appraisers. I'm hearing that St. Thomas is now in a declining market. It's been many years since St. Thomas was in a declining market.

Whether you choose to believe that we're in a recession or not all I'm trying to say is take measures for the winter. That's all.

 
Posted : June 30, 2008 3:33 pm
(@lc101)
Posts: 11
Active Member
 

I am coming from Memphis to STT the end of July via Delta. I booked my flight in March and paid $717. I could not find a ticket for $400-500 back then. Found one for less but I would have had to go through 3 airports to get there. Decided to pay a little more and just go through Atlanta then non stop to STT.
I am not a wealthy person but am glad to be coming to spend a week in the beauty of STT.

 
Posted : June 30, 2008 4:25 pm
(@oceanman)
Posts: 16
Eminent Member
Topic starter
 

It will take a while to "sink in' but then the proof will be in the pudding, so to speak. Sure, those that can afford to buy million dollar homes will always be able to do so, and could care less about fluctuations in value. However, the "rest of the world" will feel the bite of increased fuel prices in food costs, utilities and "getting to the Island."

The airlines will either fail or be subsidized by the Government. They cannot make a profit at this point. Raise prices to the point they should be and people don't fly.

STT is unique in that many home owners have no mortgage. Nonetheless, once WAPA gets its way and the tourism drops to a trickle, even the toughest of the tough will feel the pain. A $500k condo now will be worth $350 18 months from now, if there are any buyers. That is, why would anyone other than the wealthy buy in STT, except to relocate? I mean can the average family afford a condo in STT as a "second home?" I think not. I have 4 kids, am middle class, and typically take a winter vacation with the family. Rest assured, that won't be happening in the foresable future, and I am certainly not alone.

The cost of air fare alone makes same prohibitive. It is very unfortunate that things have gotten to where they are, with no end in sight. Blame the Gov't, probably a good start, and they don't seem to care either way, because there is no quick fix.

 
Posted : June 30, 2008 8:15 pm
(@bigkahuna)
Posts: 39
Eminent Member
 

Yup, it will seriuosly start to effect the boating industry here as well. Soon gas will be just too expensive. Tour operators will be forced to raise their prices (if they already haven't). So a day trip that would normally cost say $600 now may be $750 and that will prohibit people from booking tours.

Wait until the gas gets to $6-$7/gallon. In England they are paying $10. If you are tied to the tourist industry now would be the time to invest in online advertising for sure. Because the slice of the pie everyone is competing for will be much smaller next winter.

I would recommend doing Google Adwords and or search engine optimization. You need to get your business at the top of Google so that when people search you come up at the top.

 
Posted : July 1, 2008 7:49 am
(@sherri)
Posts: 1218
Noble Member
 

I don't know guys, I have been at the airport for the last 3 days and planes are coming in FULL and the terminal luggage area FULL! Talked to one of the car rental agencies and she is booming! Buying new cars for 2009!
I do feel we will feel some of the wrath, but I also think people will still certainly travel! I know a lady who is on this forum and she is GOING to come next year even tho she lost her home! She is giving up her football game tickets to come here!
If there is a will, there is a way!
Margyz, you are right! A trip or therapy! The trip wins! lol!

 
Posted : July 1, 2008 8:49 am
(@islandrealtor)
Posts: 82
Trusted Member
 

I do believe we are in a recession and I did say real estate is slow-slow-slow. We are in the down cycle for sure. And from what I hear it is much worse in the states. We will still have people coming to visit but it will go down. I think the planes are coming in full now because those people booked about 6 months ago before prices shot up and there are finally seats available for those frequent flyer miles.

 
Posted : July 1, 2008 10:10 am
(@promoguy)
Posts: 630
Honorable Member
 

I'm guessing when you say she lost her home, you mean to foreclosure? Or for some other financial reason?

And she had the nerve to tell you this and talk about vacation in the same breath?

 
Posted : July 1, 2008 10:51 am
(@bigkahuna)
Posts: 39
Eminent Member
 

The decline in flights doesn't start until September 3rd. Island Realtor is 100% correct.

 
Posted : July 1, 2008 2:17 pm
(@jim72)
Posts: 1
 

I take it none of you were here after hurricane Marilyn. We went through some very rough times for years after.

We made it through that. we will make it through this.

Think positive

 
Posted : July 1, 2008 4:01 pm
(@chris-at-work)
Posts: 1138
Noble Member
 

I am sure the the VI will feel the downturn like everywhere else. Maybe not as bad as some, maybe worse than others. Rather than doom & gloom it puts the brakes on speculative growth and that's a good thing for anywhere. especially the VI. Yes, gas prices are going to cause a quantum shift in what we do (look at the recent auto industry sales) but quite frankly that has been the bogey man in the corner no one wanted to confront and now he is out. It was a long time coming but it is here to stay and we will all have to learn how to live with it.

Whenever economic downturns occur, the travel industry takes a hit but when it involves the weaker dollar it really impacts US travelers going abroad. The VI deals in dollars and that is a plus for US travelers. Their money goes a lot further than it will in Europe. The economy, fuel rates, etc. will mean the frequent visitors might cut back a little and those who might have thought about that 'one time trip' won't but bottom line the VI offers a wonderland to US vacationers at constant (albeit slightly higher) dollar prices.

It is selfish on my part as I am just a visitor, but I personally look forward to less growth on STJ.

 
Posted : July 2, 2008 7:40 am
(@captain-john)
Posts: 29
Eminent Member
 

I take it none of you were here after hurricane Marilyn. We went through some very rough times for years after.

We made it through that. we will make it through this.

Think positive

I'm with jim72 on this.

"Positive is how I live"

 
Posted : July 2, 2008 8:43 am
Page 2 / 3

St. Thomas Activities

Set sail on top-rated charters, explore underwater wonders with scuba diving, encounter exotic animals, and venture into the wild with kayaking and ecotours. Feel the adrenaline with parasailing, aerial tours, and water sports for a memorable vacation.
Book Your St. Thomas Adventure Now
Virgin Islands Books & Maps