FYI Miami: June 15, 2017
Below are some of the FYIs in this week’s edition. The entire content of this week’s FYIs and Insider sections is available by subscription only. To subscribe click here.
ROCKY RATE ROAD: Revenue per available hotel room in the Miami market is forecast as flat to down a half-percent next year in the annual tourism forecast that STR and Tourism Economics released last week at New York University’s International Hospitality Industry Investment Conference in New York. Miami and Boston are the only markets among the nation’s top 25 with that lowered expectation. The other 23 were forecast to be flat to up a half percentage point in 2018. Overall for the nation next year, the forecast was a two-tenths percentage point decrease in hotel occupancy to 65.1% but an increase in average daily room rate of 2.7% and an increase in revenue per available room of 2.5%. The luxury market nationally is projected at the largest increase in daily room rate, a rise of 2.9%.
THE METER’S RUNNING: Miami-Dade County commissioners last week approved a maximum taxicab meter rate for for-hire vehicles and eliminated a cash discount. This revises the cab flat rate to and from Miami International Airport and PortMiami, and allows taxis to have flexibility in their rates. The recommended maximum meter rate is $2.95 for the first one-sixth of a mile and 85 cents for each one-sixth of a mile thereafter until it reaches one mile. Thereafter, it would be 40 cents for each additional one-sixth of a mile. Recommended waiting time rate is 40 cents a minute.
IRISH SISTER: Miami-Dade will be reaching out to County Cork, Ireland, to become family of sorts now that both communities have expressed desire to establish a Sister Cities relationship. County commissioners passed the legislation sponsored by Jose “Pepe” Diaz last week. According to the resolution, trade and tourism are a significant portion of both communities’ economy, and Miami-Dade and County Cork want to cooperate to further trade, tourism, cultural and educational opportunities. Miami-Dade’s Sister Cities program, founded in 1981, has established relationships with 26 cities in South America, the Caribbean, Europe, Africa and Asia.
POOR PURCHASING RATIOS: A study involving a University of Miami business professor found that consumers often make poor purchasing decisions when they need to work with ratios to assess a product’s value. “This study points to the significant need for something like a ratio calculator built on to relevant shopping websites or perhaps in-store,” said Michael Tsiros, professor of marketing at the university. “Maybe it’s an easy mobile app.” The study, published in the May “Journal of Marketing Behavior” and completed with a Texas A&M professor, found that when they need to work with ratios to find the best buys only 25% to 30% of shoppers find the right answer.