Travel On The Rebound?

(Dive Travel Business News - May 27, 2010) --According to a new study by PhoCusWright, Travel recovery has begun although most travel companies are not feeling the relief. The report, entitled "Cutting Losses, Rebuilding Confidence: Key U.S. Traveler Insights,”cites  trends that are shaping lodging, air travel and other travel components. 

According to the study, travel has taken a one-two punch: Not only did fewer people travel (-11 percent) , but those who did travel spent less (-15 percent). The report indicates recovery will be restrained. While fewer consumers plan to pull back on their travel in 2010, the percentage of those who plan to travel more has not increased. Other Trends Include:

---Quality, not quantity
Even though travelers took fewer trips in 2009 compared to 2008, the trips they took were longer; trips of four nights or longer accounted for 59 percent of all trips in 2009.

---Economy busts the boomers
Older consumers (45+) pulled back on travel earlier than younger travelers, and were less likely to travel in general.

---Reality bites
Younger travelers (under age 35) showed larger year-over-year declines in travel spend than older travelers, and their optimism about travel intentions has sobered. However, they still had a significantly higher incidence of travel than older travelers.

---Planning is more focused
The number of sites used across the destination selection, shopping and booking phases has decreased slightly from 2008.

---OTAs gain on hotel sites
Online travel agencies (OTAs) gained share among hotel bookers, but not so much with air.

---Upscale travelers want it all
Bigger-spend travelers are more likely to patronize upscale and luxury hotels than lower-spend travelers, but they are also almost as likely to stay in mid-scale hotels.
 

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