The economy has resulted in many people choosing not to take vacations - which has effected Walt Disney Co. profits for the second quarter dramatically , a whopping 46% drop in net income.  In an effort to reassure investors, Disney management dropped hints that the declining economy seems to be easing up.

Disney’s net income fell to 33 cents a share for the quarter ending March 28, which was worth 58 cents a year earlier.  The brunt of the recession appears to be hitting Disney’s parks.

According to Robert A. Iger, Disney Chief Executive, action was taken to keep visitors coming to Disney’s domestic parks, which had a predictable impact on margins.  Discounted hotel rates resulted in increased attendance during the quarter when Walt Disney attendance decreased 1%, and Disneyland at Anaheim had a 2% gain.  This helped increase occupancy, but also resulted in a 17% drop in spending per room.

Disney’s broadcasting business continued to be weak due to decreases in local ad sales, resulting in decreased revenue at Disney’s television stations.  Higher international sales of “Criminal Minds”, “Ugly Betty” and “Desperate Housewives” helped balance program expenditures.

In recent years, ABC has been unsuccessful in launching a new hit show.  Ratings have slid 3%, which could mean a rough ride in coming months.  The advance sale of commercial time will soon begin, and it is believed ABC will have a hard time maintaining its share of revenues due to advertisers having to pay increased rates for a smaller viewing audience.

Revenue also slipped for Disney’s interactive media group, which fell 17% to $129 million.  This loss was caused by a reduction of sales in Disney’s video games.

Marc Resorts executive vice president Paul Tomonari ceased hotel management operations on two islands last week, due to the weak state of the economy.

Due to the difficult challenges the company was facing, nearly 40 employees were notified that the doors were closing.  According to Tomonari, the company is involved with other management companies in an effort to make the transition as smooth as possible.

The Hotel Molokai, whose sales, marketing and reservation services are handled by Tomonari’s company, is unaffected by Marc Resorts’ closure, and is self-managed.  Michael Drew, general manager of Hotel Molokai, confirmed that this location is unaffected by the change.

Marc Resorts has been a part of Hawaii’s hospitality industry for a long time.  Tomonari stated that these events are sad, but that constituents have to be protected from further losses.

Tomonari said that people who have previously made reservations for Marc Resorts for the coming days have been contacted directly, and that deposits have or will be refunded.  Travel partners Orbitz, Expedia, Pleasant Holidays and All About Hawaii will advise and relocate guests who had previous reservations.

Big hotel chains that were once deemed wasteful are now battling it out to see who can outsmart the other when it comes to going green.  In a recent survey of U.S. hotels, 68% said they now have energy-efficient lights, and many are now re-using towels and linens.

Properties are trying to become LEED certified (Leadership in Energy and Environmental Design), and this label may be earned by more than 500 hotels soon. As recently as four years ago, only 1 hotel had earned this label.

Some of the measures that hotels are taking in their efforts to save energy include:

Replacing light bulbs with energy efficient bulbs

Placing sensors in rooms that cause the thermostat to readjust when a guest leaves

Conserving water by repairing all drips and leaks in hotel bathrooms

Replacing toilets, showerheads and faucets with water-saving fixtures.  This has already been implemented in the Hilton brands facilities in Europe.  This change is being made in several hotel chains, including the Hyatt, Marriott and Starwood.  Starwood also proposes to have water-efficient landscaping.

Recycling is also a big trend with major hotels.  Some are using recycled wood for laminate flooring, while others claim that no can, bottle or plastic key card will go to waste.  Marriott has eliminated styrofoam and plastic utensils from all locations.

Indeed, the lodging world is looking very green!

‘Get Water Smart’ is the title of an initiative being taken by the Black Mountain Golf and Country Club in suburban Vegas.  This ingenious plan will reduce water usage without interfering with your golf game.  While the smooth surface does nothing to combat the heat, it is wonderful for those implementing ‘greener’ ways to do things.

Drought resistant foliage has been placed among the sandy gravel.  While there is no deep, lush grass along the sides of the fairway, golfers aren’t complaining.  This sometimes allows golf balls to bounce or roll back on to the fairway, instead of getting stuck in the deep grass most golf courses have.

While you won’t find much lush dense foliage at Black Mountain, you will find areas of groomed desert scrub.  The ‘Get Water Smart’ idea is to reduce irrigation and eliminate unnecessary grass, which helps return the environment to a desert landscape that is sustainable without the use of excess water.

Although there are new problems to contend with such as weed infestation from the old root system, eventually the project will reduce costs and waste.  Less grass to mow and reduced upkeep, along with lower water usage mean a greener environment.

For the golfer, the changes do take a little getting used to, but overall the ‘Get Water Smart’ initiative has been well received.

A recent poll conducted by Harris Interactive (R) shows that the financial situations of 48% of U.S. adults are worse than one year ago.  What does this mean for the travel industry?  Fewer people are taking vacations at all, and the ones who do are spending far less money.

When it comes to vacations, many people are bargain hunting.  Instead of flying, they are taking cars.  The travel behaviors for 2009 also indicate that fewer people will be traveling for business purposes.

Nearly half of the people surveyed say they intend to travel just as much as before, and 37% of consumers are less likely to travel due to the economic climate.  About one-fourth of respondents intend to cut their trips short, and 40% will have a tighter budget for leisure trips.

How do vacationers intend to cut costs and still enjoy their leisure time?  Three-fifths will choose less expensive accommodations, cheaper meals and less expensive activities.

Almost half claim that they will cut travel costs by vacationing closer to home or staying with friends/family at their vacation destination.  Some will drive instead of flying.

A little over a third of people plan to vacation close to home or share costs by traveling with friends and other families.

Companies are changing their travel plans as well.  Travel policies are being changed, and business trips are being reduced.  Nonessential travel is being reduced or totally cut by some companies in order to reduce travel related expenses.

How long will these trends last?  Harris Interactive will release research findings this fall to provide the travel industry with insight into the next twelve months.

Due to the recent economic climate, the travel industry has suffered greatly.  Now there is even more to add to the mix - swine flu.  Roger Dow, president and CEO of the U.S. Travel Association, states that this has the potential to paralyze travel.  He adds that it could even be catastrophic.

It is feared that this situation will quickly get out of hand, so precautions are being taken.  Americans are being urged not to travel to Mexico, and are also being checked at airports for signs of fever.  This is a huge blow to the travel industry.

Add to this the fact that Androulla Vassiliou, the European Union’s health commissioner suggested that people should not travel in to Mexico or the United States if it isn’t necessary, and the results are devastating.  She did later state that it was only an advisory and not a ban, but the damage may already be done.

On Monday April 27th, airline stocks slid and hotel business wasn’t much better.  Marriott (MAR) fell 5/1% to $21.17.

Although the government hasn’t instructed precautionary measures be taken by the airports, some are implementing safety precautions of their own.  Many are looking at passengers for potential signs of swine flu, while in Singapore, Sofia, Tokyo and Bulgaria more active measures are being taken - the use of devices to take passengers temperature.

Many companies have restricted travel to Mexico for their employees.  Among these are Daimler, Sony, Nokia and Royal Philips Electronics.  Workers in Mexico have been instructed not to shake hands or hug visitors that do come in.

Although it could be a dangerous situation, many are wearing gloves and masks on their faces to avoid possible spread of swine flu.  It seems that word and panic have spread much faster than the swine flu has.  Maybe this “pandemic” isn’t quite the monster it was first thought to be.  As for the travel industry, time will tell.

In a tough economy, taking a luxury vacation might seem impossible. But some of the nation’s nicest hotels are taking steps — including lower rates and vacation specials — to lure new visitors.

Take Gaylord Hotels. The luxury multi-property operation with resorts in Nashville, Dallas, Washington, D.C. and Orlando offers guests majestic views, high-end shopping and dining experiences, full business accommodations and world-class entertainment. Even better, the hotels offer packages for special events.

Starting at just $199, guests can discover the rich history of the Nation’s Capital and enjoy a one-of-a-kind experience at the Washington region’s newest waterfront resort destination. The package includes round-trip tickets on the resort’s exclusive shuttle to downtown Washington, D.C., which makes stops at Union Station and the Old Post Office. Afterwards, guests can take advantage of the resort’s offerings, which include four restaurants, Pose Ultra Lounge, Relache Spa, nightly entertainment and an all-season pool. This package is available now through August 31, 2009, but other great packages can also be found.

In addition to finding great packages, Gaylord offers these tips for travelers hoping to enjoy a little luxury without breaking the bank:

- Plan meals carefully. Choose package deals that provide breakfast at no extra cost. If you have children, choose family-friendly restaurants that allow children to eat for free. If your hotel room has a refrigerator, consider purchasing lunch staples so that you can prepare you own mid-day meal.

- Save your money for nice dinners. Before making a dinner reservation, look for coupons or ask the front desk about area restaurants that give discounts to guests.

- Travel with friends or family members. Some hotels and entertainment destinations, like museums or theme parks, offer discounts to guests traveling as a large group.

- Pack wisely. Don’t bring things that the hotel will provide, like soaps or shampoos. Bring refillable water bottles so that you don’t have to purchase new ones at every destination. If you have a young child, bring a light stroller to save on rentals.

Bardessono is Napa Valley wine country’s brand new hotel, spa and restaurant.  This is believed to be the greenest hotel currently in America, flanked by many geothermal wells and constructed of walnut, cypress and redwood salvaged from wine tanks and orchards.

At Bardessono, every day is Earth Day.  Before opening, contractors recycled 93% of all construction waste.  This charming hotel located in the tiny town of Yountville fills 50% of its electricity need from a 200-kilowatt photovoltaic solar system concealed on the flat roofs of the hotel.

Siding, ceiling beams, furniture and even flooring have been constructed from salvaged wood from local sources.  Monterey Cypress, Walnut, Eucalyptus, Redwood and California Bay Laurel trees were used for this purpose, with Tuffa stone salvaged from the Bardessono’s family home adorning dining and reception areas, as well as the hotel’s entry way.

The creation of the Bardessono proves that deep green living is a very pleasurable experience indeed.  Rooftop swimming, indoor natural light and private courtyards make this a relaxing, enjoyable experience for anyone, especially those who are dedicated to green living.  Even the towels, bed linens and robes are green, made of locally sourced organic cotton.  Bardessono is a destination everyone should have on the calendar!

Those in the travel industry have coined the term “new normal” as what is happening in their business.  Hotels, airlines, conference centers and car rental companies have experienced deep plunges to lower levels than seen in years in their revenue, and expect it will continue for years to come.  They believe this will be typical.

Huge bargains can be seen in air fares and hotel costs as travel companies struggle against the plunging economy.  This is ironic, as drastic reductions have also led to a reduced number or business meetings companies are holding, which is why many business people traveled in the first place.

The new term was buzzing around at the annual education conference of the Association of Corporate Travel Executives in Washington.  In the last 20 years, some who attended said they couldn’t remember a time that buyers as well as suppliers were more concerned about that is being done to curtail travel.  Business travelers now realize that it is necessary to get the utmost out of every business trip.

While some cities provide cheaper hotel costs and airfare, they are seldom chosen as sites for business meetings because of other aspects of the cities.  Cities like Las Vegas have lower hotel rates, but offer too many other attractions, so executives are likely to avoid these cities.

The pace of the economy will of course decide whether this really is the “new normal” level of business travel, but the immediate concern is how long it will take to climb out of this deep recession.  The need to reduce global warming and create renewable-energy sources is likely to lead to a whole new era of business travelers.

A recent survey conducted by Ernst & Young LLP shows that hotel owners and management companies are increasing efforts to strengthen cash positions in order to survive the economic downturn.  The purpose of these efforts is to efficiently position their businesses for mid and long-term growth.

Key findings in the survey, conducted in global hotel enterprises that range in size from under $150 million to over $600 million in revenues, resulted in the following:

Cost Management - The hospitality sector is likely to be affected with hiring freezes, reductions in working hours and layoffs being implemented.

Capital Strategies - Of the respondents in the survey, 33% state that they plan to raise new capital in 2009, with 38% stating they will seek capital in 2010-2012.

More than two thirds of respondents plan to enter into joint ventures with other capital enterprises to make their business stronger.

Business Challenges - The second biggest challenge to the hotel business is decreasing average room rate, according to 56% of respondents.  This is right behind the biggest challenge, which is considered decreasing demand by 82%.  Other challenges that respondents considered are lack of financing, steadily climbing labor costs and competition increases.

Green Initiatives - Up to 88% of respondents currently use recycling programs and energy saving measures in their hotels.  Those that do not intend to implement these measures next year.