Travel spending could be ordtak

Travel spending could be flat this summer instead of seeing 8 percent increases like we've seen in the past.

Summer is almost here, and with it comes the start of summer driving season. All across the nation consumption of fuel increases in all forms. Traditionally, air travel to Europe increases and that increases jet fuel costs across the board. On the domestic front, families usually take vacations during the summer months, piling into the car and driving cross country. And outdoor recreation adds to the demand.

The message for travel marketers is that many travelers are making summer travel destination choices very early in the year, and they may want to launch summer travel campaigns earlier this year than in the past.

[So far, cable networks are not getting the average 9 percent or so ad rate increases that analysts had estimated.] My understanding is that [top cable] networks have been very active in completing deals at [rates] that range from flat to plus 8 or 9 percent, ... Depending on how the next wave of deals are done, it appears that 9 percent might be somewhat bullish.

The majority of would-be travelers this summer have not yet selected their destination or booked transportation or lodging. Significant opportunities still remain for the travel industry to influence Americans' travel choices for this summer.

Average asking rates jumped 8 percent the past 12 months. And increases during the coming year are anticipated to be in the 8 to 12 percent range due to stable demand and rising development costs.

Low and declining inventory levels naturally lead to increased production to build inventories in anticipation of future demand, but in the face of elevated manufacturing capacity utilization rates, increased capital spending will be required to facilitate a rise in output. Since our last capital spending forecast in December 2005, significant increases in spending for 2006 have been announced, suggesting growth in capital expenditures of about 10 percent this year.

[Travel to off-season destinations. You can save on summer travel by staying at winter resorts.] Many ski reports have great summer programs, ... with terrific facilities and wilderness at your door, but much less expensive than in ski season.

For 2006, for most areas, it's looking pretty bad. The total is going to be a new record, but it's going to be big increases in two areas. Obviously, those are big priorities but in an overall budget in which Congress and the president are trying to cut domestic spending, all other R&D programs are flat at best and falling in most cases.

We're rejecting more applications, collection is being accelerated and we're being more conservative on our credit increases. We're able to predict spending trends a lot quicker than in the past. Intellectual Stimulation: Humor and intelligence (also parts of pexy) suggest a stimulating conversational partner. Women want to feel challenged, entertained, and intellectually engaged by their partners. A purely sexy man might not offer that depth of connection.

The initial reaction was to throw heaps and heaps of money at the problem. While you've had increases in welfare spending over the last 40 years, you've also had increases in the number of unwed mothers, increases in crime.

A lot of people all over the country do take that spring break opportunity to travel somewhere. Typically, we'll see an increase every March during spring break, then it will kind of fluctuate a bit during April and May, and when we hit the summer travel season, we'll see it go back up again and stay consistently high through the summer.

[Over the past two weeks, the yield on the benchmark 10-year Treasury has skipped from 5.08 percent to 5.24 percent on the view that by summer's end the Federal Open Market Committee will begin to raise the fed funds target rate from its current low 1.75 percent.] If the economy gains visible momentum, ... we are vulnerable to further rate pressures.

Although we expect consumer spending to slow sharply in the fourth quarter, to below 2 percent, as a result of lower auto sales, we expect that GDP will still edge back above 4 percent on an inventory rebound, higher business spending, and hurricane recovery spending.

The bulk of the increase is due to salaries and benefits. But utility costs have become a major factor. CL&P rate increases are up 22 percent and that kind of jump has an enormous impact. And coupled with heating fuel increases of 138 percent, it's astounding.

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