VIRUS
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The White House has endorsed a herd immunity approach to managing Covid-19. Known as the Great Barrington Declaration, supporters of the declaration use it to argue against lockdowns and more re openings during the pandemic. The declaration has been signed by 445,902 concerned citizens, 9,510 medical and public health scientists and 25,049 medical practitioners, according to its website. Source: Washington Post
And why is that important [Insights Collective] … World Health Organization Director-General Tedros Adhanom Ghebreyesus called the herd immunity approach “simply unethical.” And, more concerning, experts predict that 85 to 90 percent of the U.S. population has not developed coronavirus antibodies to fight the virus, countering the argument that the U.S. has reached or is close to reaching herd immunity. As with other aspects of the pandemic, visitors to resort destinations may feel one way, while destination leaders feel the other way.
This publication has previously advocated for a visitor education and safety protocol until a vaccine was developed and widely distributed – there is no change in course for that recommendation.
REOPENING
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California’s Governor Newsom is in no hurry to reopen Disneyland and other theme parks. “We are going to be led by a health-first framework and we’re going to be stubborn about it,” Newsom said about theme parks during a news conference. “That’s our commitment — that’s our resolve. We feel there’s no hurry putting out guidelines.” In response, the California Attractions and Parks Association said there is no reason for attractions to remain closed when there is ample evidence they can reopen safely. Officials with Disney were more direct, “We absolutely reject the suggestion that reopening the Disneyland Resort is incompatible with a ‘health-first’ approach.” Source: Orange County Register, USA Today
And why is that important [Insights Collective] … Its been frustrating for businesses that want to reopen, and equally frustrating for residents that want their elected representatives to act responsibility. The development in California shows us something important – a plan without support is no plan at all.
ECONOMY
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The Harris Poll found that more than half of U.S. shoppers say they’ll have less spending money this holiday season. And, nearly 7 in 10 say the election makes them uncertain about the economy. The grim results foreshadow a difficult fourth quarter for a battered U.S. retail sector badly in need of a win after losing billions from months-long shutdowns and changed consumer habits. Source: The Harris Poll
And why is that important [Insights Collective] … The uneven impacts of the pandemic recession are here – holiday shopping is just the latest example. A good size of the population, especially those on salary, have more disposable income as a result of not being able to eat out and travel as much. We can use this data to remind resorts and destinations that leisure travel destinations don’t just compete against other leisure travel destinations, but rather, they compete against all options for discretionary spending.
LODGING
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Red Lion has relaunched its GuestHouse International brand, which it acquired in 2015, as GuestHouse Extended Stay. The new brand will operate in the upper-economy extended-stay segment. The relaunch is an effort to leverage the current trend of extended stay travelers due to the pandemic. All properties also will offer laundry facilities at no charge to guests, as well as either an on-site gym or complimentary passes to a local gym. Source: BTN
And why is that important [Insights Collective] … The competitive advantage enjoyed by vacation rentals is shrinking. Red Lion is the latest to pivot into the extended stay space, and we see the traveling public as responding positively. While the brand was already in the category prior to the pandemic, the crisis amplified the opportunity to convert existing hotels into extended stay properties.
NEW REALITIES
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For those who can work at home, home can be a ski resort in Northern Vermont. Vermont’s Jay Peak ski resort has capitalized on the requirement faced by many to quarantine for 14 days when arriving in Vermont, by offering a two-bedroom cottage, with two adult season passes and two dependent passes, for $15,000. The resort hoped to sell eight of those packages, as of this week, they’ve sold 68! That’s more than $1 million of revenue from a program designed to bring in $120,000. Source: Burlington Free Press
And why is that important [Insights Collective] … The pandemic has led to a resurgence of revenue management tactics. Kudos to Jay Peak and their development of this quarantine package. We encourage more trial and error with pricing, especially in our industry known for its high fixed costs and a perishable inventory.