>> good evening and welcome to a special holiday edition of "nightly business report". this is memorial day, unofficial kick-off to summer.

a time when all of our thoughts turn to warmer weather and barbecues. >> tyler, weather is traveling to that dream destination or buying that vacation home you always wanted. sum certificate a time of spending. with that spending comes economic implications. most importantly on your wallet. we'll break down everything from the summer home economy to what hollywood has in store for you. >> more people will take vacations. depending which survey you reads one in four americans plan to spend more on travel this summer. but regardless of whether you're driving or flying or going far away or staying closer to home there will be a cost. phil lebeau tells us what to expect. >> reporter: the summer vacation is back on the calendar. need proof? stop at this rv shop in elkhart, indiana and ask if he has an rv

for rent this summer. >> we're about 20% ahead of what we were this time last year. people are beginning to feel more at ease of the direction the economy is going and planning their vacations. >> reporter: the online travel firm trip adviser says summer vacations will be up 7% this year. majority of them driving. with the economy improving and gas prices for most of the country still well below $4 a gallon, he says people are taking longer trips. >> i'm getting more trips to where people are going to florida, out west. the they want to see the grand canyon or mount rushmore or yellow stone park or going up to the dells. >> reporter: if you're flying this summer expect packed planes. they expect 209 million people to fly this summer. most since 2008 with a record 27

million flying internationally. >> domestic air fare is down 2%. international is flat year-over-year. that will put you at $384 for an average domestic air fare and $985 for an average international air fare this summer. >> reporter: with air traffic control towers back to full staffing the delays that crippled airlines in late april have gone away. what hasn't changed is add on fees like paying for soft drinks. they made $3.6 billion in baggage fees flyers are getting used to paying to check a suitcase. >> consumers as much as we dislike these fees are becoming more and more accepting of them. we see that in the reasonableness of the fees. 37% of passengers now say that they consider bag fees to be reasonable. >> reporter: with new and more costly fees going into effect, flying this summer is likely to be more expensive but experts

say if you book early, finding the right flight at the right price for that family vacation is still a possibility. phil lebeau, "nightly business report," chicago. >> not many travellers will stay in hotels. others will cruise to exotic ports of call. is there demand for rooms and what if any fallout is there from the recent ship debacle on the seas. we have a look at expectations for hotels and cruise industries. >> reporter: this summer demand for hotel rooms will climb back to records set in 2007 before the last recession according to data being collected from across the nation. >> we're selling 2% more rooms this summer than we did last summer and then that lifts the occupancy up to an average occupancy of around 70%. >> reporter: the big question is whether hotel owners can significantly raise what they charge for rooms without significantly losing bookings.

some hotel investors just paid $250 million for the boston plaza. it's ceo is telling the brands he pays to run its 26 big hotels to get more ambitious in raising nightly room rates. >> we're about 7% off prior peak and we're encouraging our operators to continue to be aggressive on driving prices so we can meet the demand. >> reporter: the recovering property market will allow big names that want to get more asset light to sell hotels this summer that they don't want to the delight of shareholders. >> we're pretty bullish on lodging. we think starwood will return capital. they have $3 billion of assets they will sell. >> reporter: at sea for cruise operators it's all about pricing. carnival's high-profile string of problems at sea resulted in its second profit warning in two months because carnival is slashing prices to persuade people to fill its ships. >> carnival makes me not want to

go. far as far as the others, i haven't heard. >> since things have been confined to that one company i would think people who like to cruise would probably still do it. >> reporter: the stock prices of caribbean's main rivals are doing better because their bookings and prices are better. some analysts that were recommending carnival as a value play are throwing in the towel. >> the perception problems here that carnival has faced are continuing and it's going to take more time to turn around. >> reporter: for "nightly business report" i'm simon hobbs. >> now the president of rosewood hotels and resorts is here to talk to us more about hotels. welcome. good to have you with us. you heard simon's report there. how are your bookings running for this summer compared with

last year and how do your prices compare with a year ago? >> yeah. as simon pointed out our booking pace is 12% higher than last year. what it allows us to do because bookings are coming in advance, you know, recently up through the recession period the booking pattern was so much delayed whereas today it's picked up. so, therefore, it allows us to actually look at the average room rate and tweak the average room rate and get the best out of the daily rate and occupancies. >> how much can you tweak those rates because consumers are still very price conscious and listening to that report there can be sticker shock. >> think what we tried to do is rather than raise the prices it's basically meeting the demands and, of course, the demands are higher and, therefore, you know the turn away of our bookings is higher. what we have to do in order to allow the people, allow the

clients to stay with us, we need to keep the rates in our rear view mirror. we only tweak them or incrementally raise them to get the clients in and offer value. >> it's rare that we get a chance to talk to a top hotelier and i've always wanted to know when a guy like you when you check into a hotel or walk into a hotel room and get your first impressions what is it that has to be right or conversely what can be wrong that would tick you off. what is it that set us off? >> i think it starts, tyler, it starts before you get into the room. tut whole arrival experience. i found that myself included and the clients, if the arrival experience is not perfect then the rest of the stay normally goes on a downward spiral. but when you do get into the room you obviously want to feel clean and the room must have,

the furniture must not have its knicks if you well, beautifully decorated and styled but style is one thing, service is obviously the most important thing. so, you want everything to happen within minutes when you first arrive because you don't want to be disturbed. so we really, as a hotelier you focus on the service so the client is not disturbed. >> you travel all around the world. you got properties all around the world. where are the best deals whether it's hotels or restaurants or shopping. you know, what's hot right now? >> the hot has been mexico and has been for a considerable length of time. for at least the last 15 months or so. i love to go to mexico. it's nearby. from the west coast it's three or four hours away as it is from the east coast depending on where you go in mexico, of

course. great deals in mexico. the air lift is much better. easier to get to. and, you know, of course we have three hotels in mexico, so obviously, you know, likely to go and visit my properties. but in general i love to go there because as i said it's nearby, the weather is very predictable. pleasantly so. and you can get, still get amazing deals in mexico. >> since you didn't ask i'll tell you what ticks me off when i go to the hotel that's when the key card doesn't work when i check in. that's one thing that better be right. what is the one thing that hotels fall down on and could fix very easily? what is the thing that you see most often that would be an easy fix to make the experience better? >> well, i think in general what you find, and, again, this is where we differentiate ourselves in rosewood is that mostly hotels go through a process.

so they create this standard operating procedure, and service standards. so from the arrival experience through departure experience through to the fact that when you stay in the hotel you are constantly asking for things or requesting things. and often what i found is that the employees tend to kind of walk you through the process or go through the process, despite the fact that you may not be enjoying your stay they still might say, calling room service and they don't have the items you want to order and they go through the process and they say of course we don't have that particular item but is there anything else i can do for you. they go through the process really thinking through all the hints that the client is dropping and i feel that more and more so the employee, the staff needs to be engaged with the client. >> thank you very much. have a great summer. and coming up on the program

the summer home economy how this season is shaping up for vacation homes. if you had your eye on the vacation home but haven't bought it yet you're out of luck for this season you may have to rent. >> reporter: the business of summer has already begun here in st. michael's on maryland's eastern shore for memorial day weekend the big rentals are all booked. an interesting dynamic is playing out for the rest of the summer as the overall home

buying market recovers. >> we're getting the calls again for people looking to buy and buy into the market and start renting again. >> reporter: slower sales over the past several years kept the rental market tight with big rentals like this one in high demand. now not only are buyers returning new renters are coming into this maryland village from the jersey shore where sandy took its toll. >> we hear that conversation we always go somewhere on the jersey shore. we're nervous about that. >> reporter: further down the east coast on hilton head island in south carolina. >> great time to buy, best time to sell. >> reporter: this realtor is glad home prices have stopped falling. they are not rising yet. rentals are strong. but his selling season won't start until mid-june. he is cautiously optimistic. >> so what people do is they come here on vacation, have a great time, most beautiful place they've ever seen. >> reporter: up north buyers are

already picking up places and have been since winter. the hamptons are back if not better than ever. >> the hamptons is unlike any other market. we're very much in a bubble here. >> reporter: rentals for the larger more expense jennifer homes are booked. sales are growing more competitive especially in the hampton sweet spot. >> we've seen bidding wars in four to five million range. >> reporter: the threat of rising mortgage rates is bringing more vacation home buyers back to the market eager to take advantage of those rock bottom rates while they still can. vacation home sales were up 10% last year according to the realtors but with added confidence now this year might beat that. and once you land that vacation home or even if you're saying at your own home you'll likely be grilling at some point. joining us now is our acclaimed chef michael.

he's serving up sizzling dishes at porter house in new york city. welcome to the show. >> thank you. >> i want to ask you, one thing that all of us look forward into the the summer is to have some friends over for a barbecue, throwing steaks on the grill. looking at the price for beef and chicken do you think people won't spend the money, won't splurge? >> i think people will continue to want to have a great time, so i think it's good shopping and good buying that makes it happen. you know there's so many shopping clubs that people take advantage of that and use their freezer to store the sale items for parties and events. one thing i always recommend is that there are great buys to be had in other cuts of beef such as, you know, a good chuck steak which is great on the grill if you don't overcook it or other cuts like a skirt steak or hanger steaks. there are so many different other cuts of beef that aren't,

you know, it's not the rib steak or strip steak but equally as satisfying and delicious. i think that's helping people kind of manage their budget. >> people are grilling all kind of different things, michael, these days. not the family pet, obviously, but they are grilling vegetables and my wife was telling me about grilled watermelon. tell me about the odd things that go well on the grill. >> this is one of the amazing things. the outdoor grill has become the center of home cooking experimentation and creativity. it's fun, it's fast, it's easy and very delicious kind of food that comes off the grill so you can put produce, you can grill greens like romaine lettuce. people are doing that. they are grilling fruit. making grilled desserts. flat breads. they are making pizzas. with so many grills that have -- they are so large you can bring

pots and pans out there and make a paella on the grill. >> gas grill or the old-fashioned car coal? >> i'm a real lover. gas grills are fast and easy. they warm up quickly. i'm a real lover of charcoal. i love the hardwood charcoal. they give you a hot fire which i love for steaks which i'm a steak guy. they give you a hot fire but also have some of that smoke. that's what people want in their foods. you know what? if you have the room have both. >> go to new york and a steak guy go to porter house. wonderful restaurant. what's the critical utensil that i taught have if i fancy myself as a real grilling aficionado.

>> a couple of basic things. most importantly keep your grill clean. you do need a brush. i'm a lover of tongs. i never turn anything with a fork. good heavy tongs. you have to kind of look for those the kind we use in restaurant, very simple but they are heavy and good size tong. that's great for turning all kinds of food it's really about manage the grill, you know, moving food around is the best way to cook food. not moving it too often. you have to let it cook but tongs. one other thing a thermometer. >> good advice. >> put a thermometer under your tong. >> so much fun talking with you. thank you so much. who knew about tongs. i love that. coming up the entertainment industry is vying for your dollar this summer.

>> one industry that puts utes stamp on summer like no other is hollywood. they are off to a strong start. some experts believe the summer box office record of nearly $4.5 billion set just two years ago is well within reach. julie boorstin takes a look at the names. >> reporter: marvel ironman 3 sets the movie season off to a great start. i want grossed $1.1 billion,

more than two-thirds coming from overseas. "star trek into darkness" opened last weekend. this summer more than ever the global box office is a game changer. >> what you're seeing from ironman, the great gatsby and "star trek" is the international markets is what's driving the bigger successes. >> despite the fact the movie industry faces so much competition from everything from television to video games as these big budget speck at thatcles that can draw movie fans to come out every weekend. >> "star trek" obviously. >> lone ranger. >> we go every week. >> if they are good films i'll go see them. >> so many big budget films opening in a short period of time raises questions whether they ill cannibalize each other.

a slew of summer sequels continues with the hangover part 3 and "fast and furious" 6. well-known brands should dominate throughout the summer. warner brothers superman reboot man of steel hits theaters in june and the lone ranger in july. so who is cashing in from the upward trend? disney is well positioned following ironman's big open. plus planes and lone raerng. warner brothers has a total of six films debuting between now and labor day. and crowds will buy tickets and popcorn. i'm julie boorstin in los angeles. and finally if the movies aren't enough for you and you want even more excitement, theme parks just might be up your alley. with an economy slowly on the

mend theme parks have had a resurgence. but the companies that own the parks aren't taking that for granted. >> reporter: nothing says summer like a roller coaster. and theme park companies want to get you and your family on that roller coaster as often as possible. how are they doing it? with more and spectacular attractions. universal studios in florida is adding the transform's 3-d ride. it's a hit in parks in california and singapore. six flags are adding three record breaking thrill rides and combining its safari attraction at great adventure in jackson, new jersey. hershey park in pennsylvania added more attractions in its waterpark. meantime seaworld in orlando is hoping a completely new penguin exhibit will bring the crowds in. theme parks are not just about

getting people in the door but getting them to spend on games, food and souvenirs. at six flags park the average extra spend is $20. >> if you get spending to increase on a per capita basis and total nicely and we've seen those increases come across every aspect in parks. so our spending is not exactly but close to 50% on tickets and 50% in parks and that in park spending has been growing. >> reporter: the theme park business has utes risks. the economy, weather and disease outbreaks impact whether people will flock to the parks. with gas prices on the rise ahead of the summer driving season analysts say consumers tightening spending could be an issue. many parks try to mitigate risk by selling season passes by offering unlimited access sometimes for a slightly higher price than day prices. >> great to get in for one day.

>> reporter: one advantage that regional parks have. aclocal destination for consumers makes them more attractive while some of the destination parks like universal, disney, seaworld they require air travel and hotel for northwest visit. still analysts feel each park has a unique flare that draws people in. >> so, six flags is going to be in the larger market and really attract the regional customer. disney is much more of a destination, they've had a very good opportunity to really expand their brand so they have their characters at the parks and then seaworld just became public but they have live animals so it's a different type of market. i view them as going head-to-head per se like two prize fighters. more they segmented the market in doing more, you know, dividing and conquering. >> in some case location doesn't

matter. school groups making touring trips with multiple stops take a break for fun at six flags. >> middle school trip eighth grade. they went to d.c. and saw the monuments today let loose. >> no matter how you slice it theme parks are big business. analysts expecting 315 million people to visit theme parks this year generating more than $11.5 billion in revenue. before we go it is great of course to celebrate memorial day but also great to remember why we have a memorial day and that's because of all the men and women in our service who gave their lives for our country. that will end our special edition of "nightly business report". the business of summer. i'm tyler mathison. thanks for catching. >> i'm susie gharib. have a great evening everyone. we'll be back here tomorrow.

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