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Erik Browning of Millennium Hotels & Resorts argues that people will continue to travel despite new taxes.
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Well consumer confidence is low because the payroll tax cut that's 215.
Billion dollars less in our wallets thanks for the fiscal cliff -- So where -- people and companies cut.
About travel joining us now is Eric brown and his vice president of revenue management and distribution for -- -- hotels.
Which has three really wonderful to hotels right here in Manhattan but I -- -- take issue with the first make your case why do you think your business gonna do well next.
You know our travel industry is critical to the economy and we have found that people want to travel -- like to go to hotels.
-- enjoying.
Are taking vacations with their family.
For as it relates to meetings or or or going in business.
You have to do face to face meetings and there's always going to be need for that.
You have to do face to face -- I'm looking at all of the taxes that have gone up top personal income tax rate.
From 35% to 41%.
When you -- bubonic your taxes in estate tax gone up capital gains tax almost -- dividend tax almost doubled you have the medical device that.
All of these new taxes demand.
Sacrifice on the part of companies that have to pay them.
And if you have to choose between.
Perhaps firing an employee who has been would you for forty years or traveling a little less I think they choose to travel a little less.
It's certainly possible and what we find though is that.
Our future bookings that we see going forward for for -- remain part of 2013.
There op are they bookings are can be canceled.
Some absolutely OK so so that may change it could change by in December.
Our booking pace so we compared the bookings that occurred in December for 2013.
Compare that to the bookings -- -- in December for 2012.
Are also up so how much growth are you prepare -- by percentage point from last year so -- we look at our business we look at it relative to something called rift part which means revenue per avail program that allows us to make -- comparisons from different sides properties.
And right now our projection is somewhere between five -- 6% rev par growth for 2013 -- do you have a fail safe position just in case what I say comes.
Come through fruition that when people have to choose between firing somebody you're travelling -- -- latter.
Every hotel has to find a way to differentiate themselves.
We have to be relevant in the market and provide what consumers want.
Because -- a lot of choices out there there's a lot of supply but I mean for example let me let me push you on this -- argue providing some kind of of back up plan perhaps deep discounts or something like that.
Deep discounts are really tricky and we've made that mistake in our industry a couple different times -- -- takes awhile for us to recover really we find that.
It takes is twice as long to recover on deep discounts from when we discount so we have to do is provide value -- -- to provide some think rate so millennium Broadway we have a promotion rolling out we're -- -- in the local spending.
So you bring in -- receipt up to fifty dollars of its.
Anywhere in the local area restaurant Broadway Show we -- Fifty dollar anger forecast sounds pretty rosy and congratulations it if it is gonna turn out that -- point -- -- -- -- -- as we've seen our paycheck checks shrink this year.
Where are you most concerned right now when you wake up in the morning you're in charge erratically and it concerns.
That.
Unemployment continues to be an issue continues to rise we are closely correlate to GDP and we saw what happened in the fourth quarter.
Although we will see if we look back at the history.
We do maintain for a fairly -- times a lagging indicator so I really think that for 2013 we're good position -- it helps us.
Not much supply growth right now only about a 1% increase in supply in that.
Hopes -- you know why no the millennium -- time I won a lottery.
And they beat the I've won two nights at the millennium big test and talent and yeah why share with -- -- That was my -- thanks very much appreciate it.
Well in Washington.
