Wednesday, January 10, 2007

Dot-com days are back, not so much

Hotel rates are back at dot-com peaks and set to zoom much higher in 2007, according to PKF Consulting's numbers, touched on previously. I talked to hotel managers about this for a Business Times story (link free starting Jan. 15) , and they pointed out two things:

1. PKF is too optimistic about 2007 because conventions are off; Jon Handlery at Handlery Union Square is budgeting about half the $15 per room per night gain PKF sees (in percentage terms);

2. Costs are up since the dot-com days thanks to rising health care costs and wages, plus you have to factor in inflation, plus occupancy is not back to dot-com peaks, so things aren't really as good as they were back then.

Which might explain these quotes from Convention and Visitors bureau chief Joe D'Alessandro, who wants more money from the city to promote San Francisco to tourists and convention planners:

"I'm embarrassed the city of Portland spends more than San Francisco" on tourism marketing, D'Alessandro said. "It's embarrassing to go to a trade show and (the booth for) San Francisco is hiding behind the 'S' in the San Diego booth."

"Stepping on people on the sidewalk in the garbage is embarrassing ... we have to develop a different culture."

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