Rates plunge, but motels sit half-empty
By Lisa Glass | Sentinel Staff Writer
July 22, 2002
KISSIMMEE (Orlando Sentinel) -- The Parkway Motel was Kenneth Ho's piece of the American pie. Ho bought the quaint 18-room inn on U.S. Highway 192 before moving to Orlando from Taiwan in 1989.
The little motel with purple doors was full of busy tourists -- families from England and Japan, couples from Germany and every corner of the United States.
But this year, despite the theme parks' rebound after the Sept. 11 terrorist attacks, the tourists haven't returned to Ho's place or other mom-and-pop motels that pepper Osceola County's tourist corridor.
"It's an American bad dream," Ho said. "It's a worse and worse dream."
Trying desperately to put bodies in beds, struggling independent hotels along U.S. 192 are offering rooms at the staggeringly low rate of $20 a night. Some have sunk to $18. Still, bright-red "vacancy" signs abound during the height of the summer tourist season.
The culprit: competition.
Minutes from Disney, U.S. 192 has long been a haven for budget-savvy travelers, who are the backbone of Osceola's tourist-dependent economy. Colorful motels, discount T-shirt shops and kitschy tourist attractions woo theme-park vacationers with eyes for good deals.
But bargain hunters are searching elsewhere this year, with big-name hotels charging less than usual, and Internet specials offering rooms on Disney property for less than $70.
Mike Horner, president of the Kissimmee/Osceola County Chamber of Commerce, calls it "a trickle-down effect."
"As Disney cuts their rates, the larger hotels cut their rates, and the cuts move right down the food chain," Horner said. "It's tough when you're going for the budget traveler and some of the larger hotels are offering budget rates."
Disney spokeswoman Diane Ledder said Disney resorts adjust their prices within the constraints of current business conditions.
"We feel that we do have a very positive effect on the tourist industry in Osceola County," she said. "Really, we're all in this together. The ups and downs of the economy are felt by all businesses in central Florida. We face challenges, too."
Rates along U.S. 192 have been slashed so far that even the youth hostel on the highway can't compete. Shallow-pocketed backpackers from all over the world got a steal paying $16 to $19 a night at the hostel. But manager Beth Barrett said it doesn't make sense to have a hostel that charges $19 when there are motels down the street charging less. So the hostel is looking to sell.
"The competitive-rate environment here makes the hostel less successful," Barrett said. "Our mission is to make it possible for anyone to travel. It's not so necessary to have a hostel here."
Occupancy rates along the corridor are the lowest they've been in five years. Three out of four rooms were occupied along West U.S. 192 in May 2000, according to the Orlando/Orange County Convention & Visitors Bureau. The following May, rooms along that stretch were 60 percent full. But this past May, barely half the beds had to be made in the morning.
Only 14 of 38 rooms at the Palm Motel were booked one night last week, manager Chris Duchaine said.
"Business is lousy," he said. "Two years ago, our low rate was $30, and we were packed. Now we're lucky to get 40 percent occupancy, and our low rate is closer to $20."
Down the street at the Paradise Inn, Joe Sohan is letting rooms go for $20 a night. But few tourists are taking advantage of the deal. The vacationers who are there -- such as Edwin Alvarez and William Vazquez, both of Puerto Rico -- are thrilled.
"There's not a lot of frills here, but the price is good, it's clean and we have whatever we need," Alvarez said as he splashed in the motel's pool.
Vazquez said he usually pays $40 a night, but he paid $28 for two people last week.
"Usually around July 4th, the prices go way up," he said. "This year, they stayed the same. And the prices are way lower than two or even one year ago."The hard times are running many of the independents into the ground. Ho said he once brought in about $20,000 a month during the summer high season. This year, he collected about $2,000 in June, and he expects about the same this month and next.
"It's not enough to pay the bills," he said. "You can't make both ends meet."
Many of the hotels have had to cut staff because of sluggish business. At the Paradise, owner Sohan and his 15-year-old son, Phillip, run the front desk now because they can't afford to hire anyone for the job.
Mom-and-pop hotels such as the Paradise have had a more difficult time returning to normal after Sept. 11.
"The budget-conscious market is slower to return than other parts of the market," said Tim Hemphill, executive director of the Kissimmee-St. Cloud Convention & Visitors Bureau. "The return to normal is very gradual."
To make matters worse, hoteliers along U.S. 192 were banking on a new Osceola County convention center to boost business. But county commissioners didn't choose the hoteliers' preferred site at U.S. 192 and State Road 535.
Instead, they chose a spot across from the Gaylord Palms resort, just south of the Orange County line, which hoteliers said would benefit International Drive more than their properties.
"Slowly, together, everyone is going bankrupt," the Palm Motel's Duchaine said. "I mean, look at the rates along here. This is July. The motels should be packed. Where are the cars? Where are the people?"
By Lisa Glass | Sentinel Staff Writer
July 22, 2002
KISSIMMEE (Orlando Sentinel) -- The Parkway Motel was Kenneth Ho's piece of the American pie. Ho bought the quaint 18-room inn on U.S. Highway 192 before moving to Orlando from Taiwan in 1989.
The little motel with purple doors was full of busy tourists -- families from England and Japan, couples from Germany and every corner of the United States.
But this year, despite the theme parks' rebound after the Sept. 11 terrorist attacks, the tourists haven't returned to Ho's place or other mom-and-pop motels that pepper Osceola County's tourist corridor.
"It's an American bad dream," Ho said. "It's a worse and worse dream."
Trying desperately to put bodies in beds, struggling independent hotels along U.S. 192 are offering rooms at the staggeringly low rate of $20 a night. Some have sunk to $18. Still, bright-red "vacancy" signs abound during the height of the summer tourist season.
The culprit: competition.
Minutes from Disney, U.S. 192 has long been a haven for budget-savvy travelers, who are the backbone of Osceola's tourist-dependent economy. Colorful motels, discount T-shirt shops and kitschy tourist attractions woo theme-park vacationers with eyes for good deals.
But bargain hunters are searching elsewhere this year, with big-name hotels charging less than usual, and Internet specials offering rooms on Disney property for less than $70.
Mike Horner, president of the Kissimmee/Osceola County Chamber of Commerce, calls it "a trickle-down effect."
"As Disney cuts their rates, the larger hotels cut their rates, and the cuts move right down the food chain," Horner said. "It's tough when you're going for the budget traveler and some of the larger hotels are offering budget rates."
Disney spokeswoman Diane Ledder said Disney resorts adjust their prices within the constraints of current business conditions.
"We feel that we do have a very positive effect on the tourist industry in Osceola County," she said. "Really, we're all in this together. The ups and downs of the economy are felt by all businesses in central Florida. We face challenges, too."
Rates along U.S. 192 have been slashed so far that even the youth hostel on the highway can't compete. Shallow-pocketed backpackers from all over the world got a steal paying $16 to $19 a night at the hostel. But manager Beth Barrett said it doesn't make sense to have a hostel that charges $19 when there are motels down the street charging less. So the hostel is looking to sell.
"The competitive-rate environment here makes the hostel less successful," Barrett said. "Our mission is to make it possible for anyone to travel. It's not so necessary to have a hostel here."
Occupancy rates along the corridor are the lowest they've been in five years. Three out of four rooms were occupied along West U.S. 192 in May 2000, according to the Orlando/Orange County Convention & Visitors Bureau. The following May, rooms along that stretch were 60 percent full. But this past May, barely half the beds had to be made in the morning.
Only 14 of 38 rooms at the Palm Motel were booked one night last week, manager Chris Duchaine said.
"Business is lousy," he said. "Two years ago, our low rate was $30, and we were packed. Now we're lucky to get 40 percent occupancy, and our low rate is closer to $20."
Down the street at the Paradise Inn, Joe Sohan is letting rooms go for $20 a night. But few tourists are taking advantage of the deal. The vacationers who are there -- such as Edwin Alvarez and William Vazquez, both of Puerto Rico -- are thrilled.
"There's not a lot of frills here, but the price is good, it's clean and we have whatever we need," Alvarez said as he splashed in the motel's pool.
Vazquez said he usually pays $40 a night, but he paid $28 for two people last week.
"Usually around July 4th, the prices go way up," he said. "This year, they stayed the same. And the prices are way lower than two or even one year ago."The hard times are running many of the independents into the ground. Ho said he once brought in about $20,000 a month during the summer high season. This year, he collected about $2,000 in June, and he expects about the same this month and next.
"It's not enough to pay the bills," he said. "You can't make both ends meet."
Many of the hotels have had to cut staff because of sluggish business. At the Paradise, owner Sohan and his 15-year-old son, Phillip, run the front desk now because they can't afford to hire anyone for the job.
Mom-and-pop hotels such as the Paradise have had a more difficult time returning to normal after Sept. 11.
"The budget-conscious market is slower to return than other parts of the market," said Tim Hemphill, executive director of the Kissimmee-St. Cloud Convention & Visitors Bureau. "The return to normal is very gradual."
To make matters worse, hoteliers along U.S. 192 were banking on a new Osceola County convention center to boost business. But county commissioners didn't choose the hoteliers' preferred site at U.S. 192 and State Road 535.
Instead, they chose a spot across from the Gaylord Palms resort, just south of the Orange County line, which hoteliers said would benefit International Drive more than their properties.
"Slowly, together, everyone is going bankrupt," the Palm Motel's Duchaine said. "I mean, look at the rates along here. This is July. The motels should be packed. Where are the cars? Where are the people?"
