Fuel Prices Spur Changes in Auto Industry
It appears that increasing fuel costs have become a permanent fixture in the U.S. economy. We first saw fuel prices climb in 1974 to an outrageous $.50 per gallon. By 1984 prices had reached $1.25 per gallon. In 1997 people began paying around $1.50 per gallon and the new century saw prices climbing towards the $2.00 mark. Current prices are hovering around $3.50 a gallon, this being about $.81 more per gallon than last year. New hostility and consequent air strikes in Libya have generated increased oil prices in electronic trading. This will inevitably be reflected at the gas pump. Economists anticipate that prices will continue to rise through the summer months then level out and remain constant for awhile. Although it appears that fuel hikes are increasing at exponential speeds, it is comforting to know that Americans pay less than half as much for fuel as our European neighbors do. The current average for a gallon of petrol in the UK is around $9.00. So, be grateful for U.S. fuel subsidies which have helped and will continue to buffer prices at the pump.
It is no surprise that fuel costs have had an impact on the auto industry. Experts in the field are projecting that auto sales for 2011 will be around sixteen percent higher than last year. People are trading in gas guzzlers and seeking new economy vehicles. Top of the list are hybrids like the Toyota Prius, Honda CR-Z, Nissan Leaf and Ford Fusion. Plug-in Hybrids like the Chevy Volt are equally as popular. Retail sales may also be affected by consumer uncertainty around inventory levels. Dealerships are seeing an increase in pre-orders and reservations for new models as car shoppers are trying to secure their choice of vehicle as availability decreases.
The recent disaster in Japan may add fuel to the flame if production of Japanese vehicles is significantly slowed. Damaged battery factories may not be able to produce hybrid batteries for vehicles like the Prius for some time. American dealerships were selling out of Prius models before the destructive tsunami crippled Japan. Now dealers expect even lower than normal supplies in the months to come. Although the Japan crisis will affect North American production as the parts supply is slowed, it is expected to be only a short term delay. Japanese auto manufacturers are working rapidly to reopen production facilities. In less than two weeks after the disaster, Toyota and Lexus production facilities will reopen.
Retail sales of two wheel vehicles have seen significant increases as well. Dealers are selling everything from Harley Davidsons to Vespas to Mopeds like never before. Considering that Vespas and Mopeds can get up to 70 miles per gallon and even the largest Harley can travel about 50 miles on a single gallon of gas, people appear to be reconsidering the need for enclosed, four wheel vehicles. Of course, motor cycles and scooters are not the solution for the masses. Good luck braving a snow storm in Michigan or hauling home a weeks’ worth of groceries on a Harley (or heaven forbid a Moped) but for residents of warm sunny climates, who just need to get around town, these offer a creative solution.
Auto manufacturers are also doing some creative thinking. Many are investing in new fuel efficient engine technologies for combustion engines. Others are experimenting with new ways to reduce the weight of their vehicles. Ford, for example, is testing a technology that injects minute air bubbles into their molded plastic parts. The result is expected to reduce the weight of the parts by up to 10% and overall vehicle weight by between 250 and 750 pounds. Auto parts manufacturers are also working to create parts that will enhance vehicle fuel efficiency. Tire companies, Michelin, Goodyear and Cooper GFE are all offering new, fuel efficient tires designed with less roll resistance. Although the end result may only yield a 1 to 2 percent difference in fuel economy this combined with other automotive technologies could add up to significant savings at the pump.
Auto Industry and Social Networking
It is well known fact that every business needs to market itself and its product to attract the target consumers. The marketing tools should be such that they should be able to reach out to the consumers easily. With the changing times, our methods of marketing our products have also changed and now, in the present time, we see social networking as one of the strongest ways to market our brands. The auto industry in the USA has also started using social networking site in the USA to reach out their clients and develop good business relations with them. It allows them to reach out to them and promote auto accessories and other products through it.
The ecommerce statistics prove that the social networking site helps business groups to reach out to the clients and increase their sale. Initially, it does take time to catch people’s attention and inform them of the group. But once the company manages to get a large group, the same is reflected through the increased sales. The auto industry in USA has experienced the advantage of social networking site and this is why many of them are using it to enhance their sales of auto accessories. The social networking sites are slow but are effective and affordable means to market any business.
When it comes to marketing through social networking site, people find it to be cheap and very effective. As compared to other kinds of marketing tools, this method uses personal appeal which works well on the target consumers. This has encouraged the auto industry also to use it to inform the target consumers about new auto accessories, both interior and exterior accessories and any other new products related to auto field. Since the social network allows people to interact with each other, this kind of marketing enjoys a personal appeal which is certainly more effective than other marketing tools.
Marketing the brand through the social networking site is quite easy as well. In order to market auto industry, the industry owner can simply create a group that is devoted to auto accessories or anything related to his product and service. People interested in those services and products can join the group and learn about the same. Creating the group allows the auto industry to identify the target consumers and they can then market their brand to them.
The social networking sites encourage people to participate in discussion also and help the auto industry to get their feedback. For every industry, feedback is considered to be important as it helps them to understand the consumer’s demand. Most of the auto industries also spend a lot of money to conduct surveys and get the consumer feedback. The social networking sites help them to get the feedback online itself and help them to cut down on that expense.
Many of the US auto company prefer to interact with their target consumes online. They use the social networking site to tell the consumers about the new products and services and also take up their queries related to it. This kind of one on one interaction is preferred by the consumers also as it gives them better satisfaction and encourages them to buy the particular product or service.
There are different social networking sites like Facebook, Twitter, LinkedIN, YouTube and many other popular sites. The different auto company uses these sites to advertise their auto accessories like seat covers, ventvisors, bug deflectors to name a few and other kinds of products via photographs, videos and text. They initiate discussion and also share videos that demonstrate how people can use a particular product or service. This certainly attracts the target consumers as it helps them get a good demonstration and this further helps the company to increase its sale.
In a social networking site, like minded people get to be together and express their views on a particular product or service. This helps in initiating discussions and thus the prospective consumers also get a chance to get answers to their queries. Thus the social networking sites are very useful for auto industry. They can use it as a platform to advertise the new products and also to launch new services.
New York City Tourism Industry Boosts Newark Hotel Market
The Newark, N.J., hotel industry is thriving heading into 2012. While the continued evolution of the city’s entertainment, cultural and corporate draws can be credited in part for the strong performance, the real catalyst can be found in New York City’s burgeoning tourism industry.
According to a January 2011 press release from the office of New York City Mayor Michael Bloomberg, in 2010:
-48.7 million people visited New York City, up 6.8 percent from 2009.
-39 million of these visitors were from the U.S. and 9.7 million from abroad-both records.
-The hospitality industry added 6,600 jobs across all industry sub-sectors; the industry employs the most people in summer, and July 2010 set an all-time record for total jobs with 323,200.
-25.7 million room nights were sold, a new record, exceeding the previous high by 2 million room nights.
-Average daily room rates rose to $330 in December 2010, an 8.9 percent increase over 2009.
The mayor recently announced that the city’s hotel inventory will reach 90,000 rooms by the end of 2011. This record number represents a 24 percent increase over the past five years. More than 7,000 additional rooms are in the pipeline.
These numbers all translate to an overall upward trend for New York City’s $31 billion tourism industry, according to a recent press release from Mayor Bloomberg’s office. It reads: “The City is on track to reach a record number of visitors this year…occupancy remained at close to 85 percent, the highest in the nation.” In short, the city is on pace to meet its goal of attracting 50 million annual visitors by 2012.
What does this have to do with Newark? Simply put, New Jersey’s largest city is an outstanding cost alternative to Manhattan. Guests staying at four- and five-star hotels in Newark pay about half of what they would to stay in New York City. Yet they can still get there quickly and easily via an outstanding public transportation network. Newark Penn Station offers 15 minute transit to Manhattan with trains running 24/7. Newark’s strong transit infrastructure also includes a Light Rail line and bus service, as well as Newark Liberty International Airport.
Over the past few years, we have seen an influx of New York City visitors-especially international travelers-staying at our Best Western Robert Treat Hotel (located at 50 Park Place in Newark). While they may initially have been motivated by a recession-based drive toward savings, the trend has continued to gain momentum as the recovery takes hold.
As a result, the Robert Treat Hotel has seen a significant jump in occupancy. Through the end of October, our average occupancy rate was 87.9 percent for 2011-as compared to 81.4 and 86.1 percent year-to-date in 2009 and 2010, respectively. The hotel reached 100 percent occupancy during June, July and August 2011, representing record bookings for our property. Additionally, Smith Travel Research reports that, among hotels considered competitors to the Robert Treat in Newark, average occupancies increased from 78.3 percent, to 81.4 percent to 82.9 percent, year to date in 2009, 2010 and 2011, respectively.
Further illustrating the strength of the Newark hotel market, Courtyard by Marriott broke ground in April for a 150-room hotel-the first new hotel in downtown Newark in 39 years-right outside the Prudential Center Arena. Additionally, Indigo Hotel has proposed a boutique 100-room property just two blocks away.
Obviously, some travelers want to stay in New York, and they will continue to do so. However, others are motivated by economics. Newark clearly is a great choice for that population, and smart hotel operators are working to accommodate its needs. We have intensified our concierge service to offer transportation to the train station. We have New York City maps and brochures available, and we even help guests get tickets to shows and events.
Many of New York tourists staying in Newark also are discovering that there is a lot to do right here. We have world-class venues like Prudential Center, which serves as home to the NJ Devils hockey and Nets basketball teams, and as a venue for countless concerts and productions. The New Jersey Performing Arts Center, the Newark Museum, parks, universities and fine dining are among many additional highlights.
More and more, Newark is becoming a destination. As the Bloomberg Administration continues to invest in the New York City tourism industry and initiate new programs to attract visitors, the hotel industry here will continue to reap the benefits.