Travelers Emphasize Value, Deals in Their Getaways

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Nov. 27 (Bloomberg) -- Shirley Tafoya, president at Travelzoo, talks with Erik Schatzker about the health of the travel industry and how deals drive the business of airlines and hotels as more travelers seek value to make their money go farther. She speaks on Bloomberg Television’s “Market Makers.”

Of travelzoo.

But speaking with the help of the travel industry.

How does it feel?

It feels good.

H c rise -- hotels are seeing rising occupancies.

Things are healthy.

People are looking to travel.

They are looking to travel, but what they want more than anything else, and you can see it at the travelzoo website, a is deals.

-- website, is deals.

Yes.

You see that.

The vast majority of americans, and for that matter foreigners, want to travel for as little as they possibly can.

It is not about the best route, or the nonstop flight.

It just needs to be cheap.

It is not so much about cheap deals.

It is about total value.

Here looking for the four star, five-star experience at the price discount.

Value.

Absolutely.

Total value.

It is not just about cheap prices.

That is why travelzoo is about, communicating the value -- what travelzoo is about, communicating the value and we launched a gift guide to help users.

Users, 65% of them, said they would rather get the gift of and experience in a physical gift because 30% say they return their gift anyway during the holidays.

I want you to tell me about the mood of the consumer.

We see economic data about consumer confidence.

Yesterday, they were week.

Today, they were good.

It raises questions on how much people will spend for christmas and to travel.

How are they behaving?

Pretty well.

Sales are increasing.

That could be because of the vastness of the deals.

The major hotels chains tend to go lower in occupancies because businesses close around the holidays, so the deals abound in major markets like new york, san francisco.

People are looking for the experience, getaway during the holidays.

Most are, because gas prices are lower, looking to jump in the car and travel rather than fight the crowds at the airport.

Also, if you want to get away from the hustle and bustle of the holiday season, cruising is an incredible deal.

You can cruise for less than $75 per person, per night.

Why i they such a bargain?

-- why are they such a bargain?

Some of the major cruise lines have put in more ships and more inventory leads to more availability.

In order to fill the availability and get passengers, especially when you are looking to fill these 4000, 6000 capacity ships, you have to put out some deals.

That people are traveling, at what point do the providers, -- if people are traveling, at will point to the providers, hotels, airlines, recover the pricing power they surrendered?

We see a lot of bundle packages.

They are heading in three-course meals, credit to the hotels.

It is not just a deal on room rates.

It helps them raise the rate in terms of the overall deal, and it keeps consumers on property, so they are spending more in restaurants and spas.

They are doing creative things.

Maybe the room rate is cheaper, but they are making it up on the on-site spend.

Tommy, what are some of the most -- tell me, what are some of the most creative companies when it comes to responding to the changing demand and tastes of the consumer?

We see it across the board.

The major hotels are doing very well.

Four seasons is getting very creative with pricing and packaging.

We see exceptional deals and packaging from bed-and- breakfasts.

If you're looking for a quick getaway to a small bed-and- breakfast, to a major change, they are all kind of -- in the case of four seasons, some would say it is the most luxurious hotel change -- chain in the world, but even they have to respond to the demand for value from the consumer.

It is not in rarefied air where demand is good no matter the state of the economy.

Exactly.

The internet has driven that.

There is so much transparency.

Anything consumers are purchasing, they are going online to find a deal.

How do you sell the product, keep the value up, and get consumers in the door -- that is what is -- it is all about, and that is what travelzoo helps suppliers do.

Shirley tafoya, interesting stuff.

Thank you for joining us.

Have a happy thanks giving.

This text has been automatically generated. It may not be 100% accurate.

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