Hitting the Road, Seeing the Sights

By Barbara Rudolph

Along with 9% mortgages, roadside diners and the Everly Brothers, the all- American vacation is making a comeback. As millions of tourists enter the last items in their summer itineraries, they are setting out to explore what John Steinbeck called "this monster of a land." Travelers will be driving down country roads, hiking in the mountains, jogging on the beach. Their expeditions will spark a business boom for hotel owners and cruise operators, car-rental companies and motor-home manufacturers. In all, some 92 million Americans and 24 million foreigners are expected to vacation in the U.S. this year. As a result, revenues for the U.S. tourist industry may reach a record $280 billion, up some 10% from last year.

Several forces have converged to generate the surge in domestic travel. The recent outbreaks of international terrorism have made many people uneasy about taking European vacations. In addition, the sharp decline in the value of the dollar, which has dropped 18% during the past year against an average of major currencies, makes journeys to other countries more expensive and less attractive to many Americans. At the same time, the dollar's dip makes U.S. tourist spots a bargain for foreigners. If all that were not enough, the falling price of gasoline (83 cents per gal. for regular unleaded, vs. $1.17 in September) has made it especially appealing for Americans to hit the road. In short, the forecast for the U.S. travel industry is sunny and clear all the way.

At some destinations, vacant rooms are already in short supply. The 4,600- unit Aston hotel chain in Maui, Hawaii, is completely booked for much of the summer season. Sales are also brisk at less renowned vacation spots: Rock City Gardens, a scenic 14-acre spot atop Lookout Mountain near Chattanooga, Tenn., is attracting 20% more visitors than last year. At Best Western Hotels, the world's largest lodging chain, reservations are up 36% at its 1,892 U.S. hotels.

The crush is growing increasingly intense as Americans drop plans to go to Europe. At the Fontainebleau Hilton Resort in Miami Beach last week, Kenji Seki, a Los Angeles restaurant manager, was enjoying the sun and surf. Three weeks ago, he canceled a trip to Monte Carlo because he was wary of traveling abroad. When a group of women from Pasadena, Calif., arrived at the Santa Fe Opera Theater last week, a member of the group explained that "we're supposed to be in Madrid, but we came here instead."

Many of the American travelers are heading south. For ten years running, Florida has remained the most popular state for tourists. One reason: the Disney World amusement park in Orlando, the single most popular destination in the U.S. This year Disney may surpass its record of attracting 22 million visitors. The number of campsites in the area has increased 50% in the past eight months, to a total of 12,000. Disney World has also boosted the number of its hotel rooms 10% in the past year.

The West Coast, a perennial favorite for vacationers, should attract more than the usual mob this season. Many families who are planning their vacations around Expo 86, the world's fair in Vancouver, B.C., will head down to the Pacific Northwest and California coasts. As a result, Seattle expects record crowds this summer. The city's Gray Line Tours reports that bookings on some of its trips are already up sixfold.

As many as 5 million visitors may trek through Hawaii this year. At Captain Zodiac Raft Expeditions, which provides marine tours of the Hawaii coast, bookings are up 30% over a year ago. To bring in the crowds, U.S. airlines are adding new flights to the Aloha State. On June 1, for example, TWA will be starting the only nonstop service between St. Louis and Honolulu.

Alaska also anticipates a banner 1986. American Express Travel services reports that reservations on its package tours to the northernmost state are running 50% ahead of last year. Says Allison Cryor, a representative of the American Society of Travel Agents: "Cruises to Alaska are nearly booked solid. There's barely a berth to be found."

The national park service is preparing for a torrent of tourists. Indeed, the rush is already starting in some of the 337 parks. For the first three months of the year, the number of visitors to the Grand Canyon jumped 42%, to 125,000. Reservations at Yellowstone are about 13% ahead of last year's level. At Yosemite, officials expect a 6% increase in visitors. As a result, for the first time ever, officials will limit the number of cars that will be allowed through the east entrance of the park.

For Americans who want to take it easy and stay in one spot, renting a summer resort house is an especially popular choice this year. On Martha's Vineyard, off the coast of Massachusetts, bookings are up more than 50% over last year, leaving virtually no houses or cottages available during much of July and August. Summer-home rentals in Laguna Beach, Calif., were completely snapped up weeks ago.

Many foreign accents will be heard at American havens from Williamsburg, Va., to Mackinac Island, Mich. Bookings to the U.S. are already up 50% at Jetsave Travel, Britain's leading tour operator to the U.S. John Pheby, a London warehouse manager, and his wife Eileen, a switchboard operator, have traveled in the U.S. before, and they will spend 16 days in California this month. Says Eileen Pheby: "We'll go to America again because there's so much we want to see." More than 30% of all foreign tourists will visit three or more states. Masaki Sawa, 24, a recent graduate of the Wako University in Tokyo, has been studying Amtrak schedules and Greyhound timetables to map out an expedition that will meander from San Francisco to Denver, Chicago, Memphis, New Orleans, San Antonio, El Paso and finally back out through Los Angeles--all in 30 days.

To capture the biggest possible share of tourist dollars, states are brashly trumpeting their particular charms in expensive promotional campaigns. Tennessee, for example, has budgeted some $2.5 million to stir up enthusiasm for Homecoming '86, a yearlong celebration of state history and culture. New Jersey has spent nearly $6 million for its ads, including television ; commercials that feature Bill Cosby and Brooke Shields. State officials predict that income from tourism will reach $14 billion this year, up more than 20% over last year. New York State will spend $18 million, twice last year's total. Some of that money will be used to publicize the state's premier event: a four-day bash that will celebrate the Fourth of July and the 100th anniversary of the Statue of Liberty.

Whatever their destinations, many Americans are heading down the highways in rented cars. Though the industry has fought fierce price wars in years past, this season the cost of car rentals is expected to rise about 15% in many locations. Says John O'Neil, marketing vice president of Avis: "There will be no bargains this season. This is going to be a long, hot summer." To make the most of it, Avis plans to increase its fleet of cars 12%, to 330,000.

Thanks largely to the fall in the price of gasoline, more and more travelers are moving along in motor homes. At Let's Go Motor Home Rentals in Salt Lake City, houses on wheels are almost completely booked for the summer. In Southern California, rentals are "going crazy," according to David Altman, president of the region's dealers association.

Tourists also have good reason to take to the skies. Because of fare wars launched by People Express and other cut-rate carriers, the average cost of a domestic flight fell about 9% during the first quarter of this year. Travelers can fly from Denver to New York City for as little as $69, and a coast-to- coast fare is only $129. Though these bargains are badly eroding airline profits, no major price hikes seem likely for now. Indeed, industry experts expect that discounting will continue throughout the summer, possibly pushing prices down an additional 20%.

Curiously, despite the flurry of business for many popular summer destinations, the lodging industry is still suffering from an overall glut after years of overbuilding. Though Boston has too few rooms, such cities as Houston and Atlanta have too many. This year alone, more than 700,000 new hotel rooms will open, which will bring the industry total to 2.8 million. Experts predict that even with increased travel, total hotel occupancy rates will actually drop slightly this year, to a little less than 64%. Says Saul Leonard, a partner at Laventhol & Horwath, an accounting firm that specializes in the lodging industry: "The tourist boom won't rescue the hotel business, but it will make life less painful."

* Nor can travel agencies be totally delighted. Most have lost substantial overseas business. And though they are selling more tickets for domestic airline flights, their total income is down more than 1% for the year. Reason: as airfares have fallen, agency commissions have been cut back as well.

Travel agents will not be the only ones grumbling this season. As the summer heats up, there are sure to be plenty of ornery travelers who will be coping with crowded campsites or fighting the traffic headed to the beaches. So it always goes. For now, though, families are planning only to sing the praises and enjoy the pleasures of America's open roads.

With reporting by William Hackman/Los Angeles and Thomas McCarroll/New York