Tourism hopes take flight on discount airline news
Those in the business hail Independence Air as breakthrough for luring visitors, meetings BY KYLE STOCK Of The Post and Courier Staff For years, expensive airfares hamstrung those who work to lure tourists and new businesses to the Lowcountry. They've had to rely on the region's warm weather, beaches and hospitality to beat competing cities. But with new discount carrier Independence Air offering $69 seats between Charleston and Washington, D.C., starting in mid-July, those who pitch the Holy City are feeling a whole lot better. "This really does feel like a breakthrough," said Steve Dykes, head of Charleston County economic development. Jeanne Aichele, national sales manager for the Charleston Area Convention and Visitors Bureau, said the cheap air service blows a hole right through the biggest barrier in her business. She thinks Charleston will get an influx of new visitors and, more importantly, a bunch of group meetings that provide bigger profit margins than any other slice of the hospitality business. "They all want to come here, but when airfare is $800 versus $300 somewhere else, what would you pick?" Aichele said. "It's going to knock that objection out and level the playing field." The CVB sends salespeople to about 25 trade shows a year across the country. Traffic is almost always heavy at its booths, but when it comes to booking groups, cities such as New Orleans, Jacksonville, Fla., and Providence, R.I., often win out because of their cheaper air service, Aichele said. It's also not uncommon for Charleston businesses to hold meetings in Savannah and Myrtle Beach to make it easier for attendees flying in from other parts of the country. All of that changed Wednesday when Independence Air, a new unit of Atlantic Coast Airlines Holdings Inc., starting selling $69 to $125 tickets on six flights a day between Charleston and Washington's Dulles airport. Charleston was one of 35 cities picked by Atlantic Coast, many of which also did not have discount air service. The Charleston business community has been trying to lure AirTran Airways, an Orlando, Fla.-based carrier, for almost a year with revenue guarantees. But AirTran froze expansion plans in late 2003 because of competitive pressures. Atlantic Coast, which has flown under contract for United and Delta since the late 1980s, had crafted its plan to go it alone for two years. It will fulfill the last of its contract agreements this summer. Last year, the CVB received some 500 business inquiries at Washington trade shows, which boiled down to 36 bookings that had an estimated $9.6 million economic impact. The organization predicts a healthy increase in meetings this year, thanks to the new inexpensive air service. In the weeks leading up to the announcement, the CVB agreed to commit $45,000 to buy partnership ads with Atlantic Coast in the Washington metro area. The Charleston County Aviation Authority, which manages the local terminal, will give the airline $10,000 for advertising, money that is available to any carrier that rolls out a new nonstop route. "(Independence) is really going to open up the Washington market for us and, because of the connecting routes, the entire Eastern Seaboard," said Perrin Lawson, deputy director of the CVB. "Beyond that, it will also really complement our efforts (to drum up business) in Western Europe." Atlantic Coast spokesman Rick DeLisi pointed out that the airline will be able to serve two-thirds of the U.S. population by flying its fleet of 50-seat regional jets out of Dulles. "We're not geniuses, but we are fortunate enough to be located in the most perfectly magic spot," he said. Atlantic Coast sees in Charleston "economic vitality," a good mix of business and leisure travelers that will help the carrier steadily grow traffic over the long term, DeLisi said. Those ingredients, combined with CVB and aviation authority incentives, sealed the deal. "We've created connections that are logical," DeLisi said, "and we have had a very good relationship with the folks in Charleston. It is very clear that we've partnered with the right people." Wild Dunes, the Destination Hotels & Resorts property on Isle of Palms, is reworking its marketing strategy because of the new service, said resort spokesman Frank Fredericks. The hotel plans to start buying ad space in the Midwest and a number of East Coast cities that will be served by Independence Air, where it has not bothered to advertise in the past. "To me, it's a no-brainer," Fredericks said. "Charleston is an absolutely fantastic destination ... but it's been difficult for Charleston to further establish itself as a nationally recognized destination because of the airfares. This is going to help overcome that." Luring businesses to town is not unlike luring tourists. The quality of life and incentives are key, but relatively cheap airfare is an important fertilizer for cultivating business. The county's Dykes said high airfares have been a major deterrent to economic-development efforts. "Our companies here complain about it, and companies that are eyeing Charleston to move here, once they do their homework, become alarmed," he said. Just last week, Dykes had a recruitment meeting in Washington. He saved taxpayers $500 by flying into Baltimore, but he was still close to an hour from his destination. Bill Youngblood, managing partner of McNair Law Firm PA and chairman of the Charleston Regional Development Alliance, said economic-development professionals regularly struggle with airfare queries during negotiations and that prospects often cite high airfare as one of the reasons for going elsewhere. "With some good luck and work on our part, it should make a major difference because a lot of these decisions are based on very slim margins," he said of Independence Air's arrival. Independence Air's cheap rates will be part of certain alliance pitches from now on, said Karen Kuchenbecker, director of marketing at the alliance. Business travel aside, cheap airfare also helps economic development efforts because it enhances the quality of life, much like good schools do. Ernest Andrade, head of the city's Charleston Digital Corridor technology initiative, said cheaper tickets will help local companies attract and keep talented employees and will make companies less susceptible to being wooed away. "The bottom line is that all of our members unanimously cited the cost of airfare here as being detrimental to their business," he said. They won't have that complaint to make come July.
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