WEBVTT - Post-Pandemic Travel Taking Off

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<v Speaker 1>This is Bloomberg Business Week with Carol Messer and Tim

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<v Speaker 1>Stenebek on Bloomberg Radio.

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<v Speaker 2>It's been a big week.

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<v Speaker 3>Where are I guess maybe a couple of weeks where

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<v Speaker 3>we've talked a lot about travel and hospitality. We had

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<v Speaker 3>Booking Holdings and Expedia. They reported earnings last week, posting

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<v Speaker 3>double digit increases in gross bookings in the first quarter

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<v Speaker 3>or so, Matt, showing that there's strong demand for travel

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<v Speaker 3>despite high rates of inflation in a cloudy economic outlook.

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<v Speaker 2>So people are traveling.

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<v Speaker 4>Yeah, absolutely, especially good you had the last year you

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<v Speaker 4>had the revenge travel. Correct, But it seems that there's

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<v Speaker 4>really short supply still in terms of planes out there,

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<v Speaker 4>hotel room they'll.

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<v Speaker 2>Fully booked it off an overbook exactly.

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<v Speaker 4>So I think everybody is eager to get at it

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<v Speaker 4>and it's but it's more expensive ye then you would

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<v Speaker 4>expect after this long And it's also difficult to get spots,

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<v Speaker 4>like you said, in the plane, in a hotel room,

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<v Speaker 4>you know, wherever you're going. Well, I guess some places

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<v Speaker 4>are easy, but wherever I'm going, it's not so easy

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<v Speaker 4>to get USA space.

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<v Speaker 3>Well, it's even our guest has to say about that

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<v Speaker 3>because Perilo Tours, their family owned travel company. They've specialized

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<v Speaker 3>in travel to Italy for about eighty years or almost

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<v Speaker 3>eighty years. Steve Perulo is a third generation owner president

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<v Speaker 3>of Perilo Tours and he joins us on Zoom from

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<v Speaker 3>Woodcliffe Lake.

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<v Speaker 2>New Jersey. Steve, it is nice to have you here

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<v Speaker 2>Bloomberg Business Week.

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<v Speaker 3>What are you seeing when it comes to travel demand?

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<v Speaker 3>Talk to us a little bit about it, Hi, Carol.

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<v Speaker 1>Everyone in the travel business this year feels like they're

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<v Speaker 1>a marketing genius and we're sold it out. We've never

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<v Speaker 1>been sold out by May fifteenth before. We're not marketing geniuses.

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<v Speaker 1>We have three years of pent up demand happening in

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<v Speaker 1>one year. And if I had known, I would have

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<v Speaker 1>because we priced and arranged these tours a year before,

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<v Speaker 1>so we did this last year. I would have increased

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<v Speaker 1>the prices and said I kept the prices to the

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<v Speaker 1>same as last year. And so we sold out instantly,

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<v Speaker 1>Greece instantly, Spain gone, Oh, why there's still some room.

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<v Speaker 1>We still have some tour space. And for some towns,

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<v Speaker 1>especially in Italy, the only way you'll get into a

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<v Speaker 1>hotel is by using hotel rooms that were reserved by

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<v Speaker 1>tour operators. They have tours and packages, so you could

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<v Speaker 1>go independently as well, But if you want to get

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<v Speaker 1>into a Malfie or downtown Florence or Tuscany, it's gonna

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<v Speaker 1>be tough on your own if you don't go through

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<v Speaker 1>a travel agent or a tour operator.

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<v Speaker 4>So what's the problem. Is it just that there's so

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<v Speaker 4>much demand or is there also less supply. We've had

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<v Speaker 4>a lot of businesses that shut down during the pandemic

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<v Speaker 4>and not all of them have opened back up. Is

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<v Speaker 4>that true as well? In Italy and Greece and Spain.

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<v Speaker 1>A little more last year, Matt This year, they got

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<v Speaker 1>their act together and the workers came back. What they're doing,

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<v Speaker 1>as any hotel owners should do, is they're raising their rates,

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<v Speaker 1>they're cutting out the middleman and they're they're they're getting

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<v Speaker 1>the money they needed from the last two years that

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<v Speaker 1>they lost, and they should do everything they can. And

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<v Speaker 1>that's hurting us, it's hurting everyone really, But you know

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<v Speaker 1>what's happening. There's going to be a recession probably later

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<v Speaker 1>this year, and things going to calm down and life

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<v Speaker 1>will get back to normal.

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<v Speaker 2>So wait, so you're you're booked up, correct.

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<v Speaker 3>For the most part.

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<v Speaker 1>Yeah, it's crazy.

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<v Speaker 2>So last year this time, Steve, were you booked up?

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<v Speaker 1>No, last year we nineteen was the year to be,

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<v Speaker 1>twenty was zero, twenty one was zero, and twenty two

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<v Speaker 1>was about seventy five of a normal year, and this

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<v Speaker 1>year one hundred and twenty five percent of a normal year.

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<v Speaker 4>Steve, let me ask you about Venice specifically.

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<v Speaker 3>We were just shown some footage and it was some

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<v Speaker 3>of the flooding that we have certainly seen in Venice

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<v Speaker 3>over the last few years.

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<v Speaker 4>I'm just I'm just no, no, I mean, Venice is

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<v Speaker 4>just it's often flooded. I know, I was. I've probably

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<v Speaker 4>been there five or six times in the last three years,

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<v Speaker 4>and at least half the time it's flooded. It's fine

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<v Speaker 4>you walk up on these risers. But the coolest thing

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<v Speaker 4>to me about going to Venice post pandemic is that

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<v Speaker 4>they stopped the giant cruise ships coming in and it

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<v Speaker 4>really made the whole experience more pleasant for me because

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<v Speaker 4>there are far fewer tourists there are the cruise ships

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<v Speaker 4>back or is Venice still you know again, a really

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<v Speaker 4>pleasant place to go and it really kind of it

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<v Speaker 4>feels out of the way when there's no giant cruise

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<v Speaker 4>ships there, and you can find a little hole in

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<v Speaker 4>the wall restaurant and you feel like you're kind of

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<v Speaker 4>on your own. You've discovered it by yourself.

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<v Speaker 1>Yeah, Matt, the cruise ships are still coming. They're not

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<v Speaker 1>allowed to dock. They came into the Grand Canal. Imagine

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<v Speaker 1>these giants, six thousand passenger cruise ships coming down the

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<v Speaker 1>Grand Canal like splashing water all over the place. So

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<v Speaker 1>they moved them to a whole different area by the

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<v Speaker 1>Leado to park there and move the people. So the

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<v Speaker 1>people on the cruise ships are still they're they're coming

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<v Speaker 1>back with a venge of these But you know, Venice

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<v Speaker 1>is trying to figure out a way to like charge

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<v Speaker 1>admission to the town, which they might have to do eventually. Right.

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<v Speaker 4>I'm glad I saw it for those brief few months.

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<v Speaker 3>Pricing here in New York City. It's coming, so you

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<v Speaker 3>do it, congestion pricing in Venice, Steve, what is it

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<v Speaker 3>that travelers are looking for right now?

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<v Speaker 1>They're looking forward to get back out there.

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<v Speaker 2>But I mean when they go on a trip, what

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<v Speaker 2>do they want? What are they looking at? Do they

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<v Speaker 2>not care? Because they've just they just want to be

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<v Speaker 2>out there or what specifically.

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<v Speaker 1>It depends on the market. You know, we have a

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<v Speaker 1>tour market as an older market. It's a it's a

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<v Speaker 1>baby boomer and a gen X market, and they and

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<v Speaker 1>that that market has evolved over the last twenty years

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<v Speaker 1>into a much more sophisticated market that hasn't changed. So

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<v Speaker 1>they want to see, you know, the greatest hits of

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<v Speaker 1>the world, as I do.

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<v Speaker 4>The Paleo in Siena, the big horse race. There are

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<v Speaker 4>you sold out for that? You still got a spot

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<v Speaker 4>for Steve? What's that? July and June?

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<v Speaker 1>I can get you two bleacher seats if you want them.

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<v Speaker 1>I can get you two seats.

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<v Speaker 4>What are the hottest events? You know, you've got stuff

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<v Speaker 4>like that, very old school, and then you've got you know,

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<v Speaker 4>Formula one kind of the newer modern stuff that's also

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<v Speaker 4>amazing to see at Manza in Italy? What are the

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<v Speaker 4>hottest events for you guys?

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<v Speaker 1>And well, we don't yell in hot events because that's

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<v Speaker 1>no way to make money. There's the hotels are gouging,

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<v Speaker 1>everyone's you know, clutched it around the event. There's a

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<v Speaker 1>big golf tournament in Rome and September there's a La

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<v Speaker 1>Manza and there's a bunch of things happening.

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<v Speaker 4>But Montepulciano we go there for a wine festival.

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<v Speaker 1>That's the that's the center of Kiyanti region. Me Monte,

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<v Speaker 1>it's really really good. We also go to San Jiminiano,

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<v Speaker 1>which is another If you can get to Tuscany in

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<v Speaker 1>your lifetime, you have died and gone to heaven and

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<v Speaker 1>there's some space. We can still get you space. You

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<v Speaker 1>got to go through somebody who has the space now

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<v Speaker 1>because you can't get it on the open market.

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<v Speaker 3>Hey, you talk about you know, your tours tend to

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<v Speaker 3>be you know, skew older. I mean, what do you

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<v Speaker 3>do to though ultimately attract a younger generation.

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<v Speaker 1>You would alter the product the product. But in the

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<v Speaker 1>travel business, if you want to make money, as my

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<v Speaker 1>father taught me, you deal in groups, and older people

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<v Speaker 1>like to travel in groups. Groups are fun, they become

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<v Speaker 1>a family. It's not for young people necessarily.

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<v Speaker 2>And so you do have active adventure tours though.

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<v Speaker 1>Oh we have customized Italy, completely customized, so you can

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<v Speaker 1>do anything you want. We can send you on bicycle

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<v Speaker 1>tours or kayaki tours, all that stuff. This is what

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<v Speaker 1>we do for individuals. But as far as money making,

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<v Speaker 1>you know, in the in the travel business, you want

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<v Speaker 1>to get groups together, you want to get cruise ships together,

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<v Speaker 1>you want to get individual traveler ring and says, no way.

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<v Speaker 1>People do that for the love of travel and the

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<v Speaker 1>making travel rangers. But to make money, you know, a

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<v Speaker 1>la carte like that. It's it's it's not a it's

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<v Speaker 1>no way to to get rich. That's what my father

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<v Speaker 1>taught me.

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<v Speaker 4>What do you like in Spain? Steve? The Alhambra is

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<v Speaker 4>one thing that I was lucky enough to go to

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<v Speaker 4>a couple of times and it blew my mind. I

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<v Speaker 4>love Andalusia, but obviously people like to go to the

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<v Speaker 4>running of the bowls up north in Pamplona. What do

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<v Speaker 4>you like in Spain?

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<v Speaker 1>I love the horses, the Andalusian horses and being around

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<v Speaker 1>them and riding them. I love the olive oil in Spain,

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<v Speaker 1>that's the number one, you know. Gris gets their olive

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<v Speaker 1>oil from Spain and Italy gets from Spain and then

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<v Speaker 1>they process it. It's unbelievable. And the food and the

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<v Speaker 1>paye and the flamenco, and this is what we offer

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<v Speaker 1>on our trips as well.

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<v Speaker 4>The flamenco. You got to see in Sevilla.

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<v Speaker 3>Hey, just got thirty seconds left. I mean you guys though,

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<v Speaker 3>do things all around the world.

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<v Speaker 2>Is it still Italy where everybody is that the bulk

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<v Speaker 2>of your business still? And just got about twenty five seconds.

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<v Speaker 1>I got lucky with my family business going to Italy.

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<v Speaker 1>It's the number one destination for Americans. It's been like

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<v Speaker 1>that for years, it is currently this year. It's almost

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<v Speaker 1>too much. It's almost too much.

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<v Speaker 2>Where do you go?

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<v Speaker 4>Hey?

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<v Speaker 2>Where ten seconds? Where do you go when you want

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<v Speaker 2>to break?

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<v Speaker 1>Uh? Stay home? No, everyone likes Positano a Malfi, that

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<v Speaker 1>area having on earth if you want to have a yeah,

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<v Speaker 1>Lee Moncello and Mozadella. Oh my god, perfect fude.

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<v Speaker 4>Steve is hungry too. We're all hungry.

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<v Speaker 2>We all got to just go there, Steve, thank you

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<v Speaker 2>so much.

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<v Speaker 4>A great summer.

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<v Speaker 3>Steve Perulo, President of Perulo Tours with us on Zoom

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<v Speaker 3>in New Jersey.