Travel Roundup: Marriott's Low Demand, Disney World Free Trade, Hotels Post Declines and More
Marriott CFO says room demand to stay low -- Room revenue at Marriott International Inc. is 17 percent down from last year and Chief Financial Officer Arne Sorenson says he doesn't expect improvement. Sorenson said the company doesn't feel confident about the future or the present economy, also mentioning that fewer group bookings in late 2008 and early 2009 contributed to the drop in revenue. Marriott will still sell between $250 million and $350 million in notes mainly related to its flailing time-shares. [Source: Reuters UK]
Walt Disney World could be part of new foreign-trade zone -- Walt Disney World could partake in a newly designated foreign-trade zone for Disney Cruise Line's warehouse which could expand to house all the theme park's merchandise in east Orange County, Florida. While the cruise line is using the warehouse to forgo tariffs on goods for its Bahamian cruises, the warehouse could also defer import duties on foreign merchandise at its theme park. [Source: Orlando Sentinel]
Hotels post declines in occupancy and daily rates -- The U.S. hotel industry's occupancy rate dropped 11.6 percent to a total of 54.1 percent from Feb. 15-21, according to Smith Travel Research. Average daily rates fell 7.2 percent to $100 a night and revenue per available room (RevPAR) sank 17.9 percent to $54.14. Chicago, San Francisco and Miami-Hialeah had the steepest declines in the Top 25 markets, with only New Orleans seeing growth because of a Mardi Gras bump. [Source: HotelNewsNow]