Spring (break) is sprung, the grass is riz.
I wonder where the tourist is.
According to AAA Newsroom, many spring break travelers are packing up their luggage for cruises and international trips this year.
Spring break is set to take place in the U.S. between March 11 and April 1.
"Cruising is off to a splashy start in 2024 with sold-out ships and inaugural sailings, and that strong demand is evident in spring break bookings," AAA reports.
Orlando, Florida, ranks as a top domestic spring break destination, while Fort Lauderdale and Miami are the top two domestic cruise port destinations.
AAA Travel data shows cruise bookings for March and April are up 28% year over year. The volume of cruises departing from South Florida is up 60% to the previous year.
I think this is pleasant news for hotels that are near the cruise ports and will likely result in a boost in both demand and revenue from families booking stays before disembarkation day and when they return from sea.
Cruise Industry News reports that Carnival Corp. has nearly two-thirds of its occupancy already booked. Norwegian Cruise Lines Holdings ended 2023 with 103% occupancy and expects those high levels to continue into 2024 despite impact of the ongoing conflict in Israel and the Red Sea.
Cruise Industry News also states that more ships are set to arrive in Asia this year as the Chinese market has reopened to more international cruise lines.
And in line with hotel industry consumer trends, cruise-goers are also craving luxury and premium products. The cruise industry is set to launch 14 new cruise ships this year, eight of which are under premium and luxury brands.
My question for the hotel industry, though, is: With a resurgence in cruise tourism, is there concern that cruise lines will recruit hotel staff to work for them, leaving properties to fill gaps?
A November 2023 article written by a professor at EHL Hospitality Business School said that 1.8 million people were employed by the cruise industry pre-pandemic. By 2022, that number had declined by nearly 40%. As cruise tourism picked up quicker than expected over the past few years for the first time since the onset of COVID-19, many roles remained empty.
There were also delays in visa processing, making staffing even more challenging during peak times. Data from Cruise Lines International Association said up to 80 countries of origin are represented within staffing crews on many ships, most often from developing countries in Asia and South America.
Just like the hotel industry, many in the cruise industry are also advocating for higher wages. If wages and benefits are or become more attractive and competitive in the cruise industry than at hotels, will hoteliers be tempted to test the waters?
International Flight Demand Also Up
In addition to the appetite for cruises, demand for international flights is also up this spring break travel season.
Bookings for international flights have risen 20% and bookings for hotel rooms overseas are up 37%, AAA Travel data shows.
In 2022, the U.S, experienced a "mother of all spring breaks." That demand continued during spring break 2023, but again demand was mainly kept domestic.
This year seems to be the first year that tourists are deciding to cross borders and go beyond typical destinations such as Mexico.
European cities in particular are leading the way in AAA's spring break travel data, including London, Paris, Rome, Dublin and Amsterdam.
"More AAA members are also booking tours for their international spring break vacations," AAA reports.
It will be interesting to see in the weekly hotel performance data throughout March and April whether domestic demand dips this spring break compared to 2023.
City's Vote for Restrictions
Spring break wouldn't be spring break unless some rules are put in place, right?
Miami Beach city commissioners voted to implement a midnight curfew, restrict access to beaches at 6 p.m. and significantly increase daily parking rates for tourists up to $100, Axios reports.
City commissioners, however, don't have the power to impose these restrictions. The fate of these measures will fall on city manager Alina Hudak.
She has said, "we are prepared to implement all the items that are being discussed today at some level."
Broward County is following suit and preparing to increase parking fees up to $100 a day at city-owned garages during spring break in Fort Lauderdale.
Whether this strategy will work or not to curb an influx of unruly tourists is a wait-and-see. Either way, I think it's a great revenue-management strategy. We know that people are still willing to pay for experiences. Look at this year's Super Bowl as an example.
Spring breakers often travel in groups, too. If a car of four to six people roll into a $100-per-day parking garage, I'm willing to bet that groups will split the cost and it won't be as big of a deterrent.
I see many pros and cons ahead for this spring break. One thing for sure is that tourists know what they want, how they want it and they'll travel far and wide to achieve it.
How are you prepping for this season? Send me an email or connect with me on LinkedIn.
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