Outbound Travel - US - September 2006

Table of Contents

• Introduction and Abbreviations
• Introduction
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• State of the market
• Economy and demographics drive outbound market
• Ties to family and friends draws Asians and Hispanics to travel
• Lack of paid vacation hinders ability to travel abroad
• Number of person trips and spending abroad grows
• Who is traveling abroad?
• Complexity of booking international airfare means many still rely on travel agents
• Asians and Hispanics travel abroad the most
• Most travel outside the U.S. with spouse
• Income and ethnicity influence willingness to visit new destinations
• Future largely dependent on economy and potential security threats
• Market Drivers
• GDP important macroeconomic factor
  • Figure 1: U.S. gross domestic product, 2000-05
• Household income
  • Figure 2: Distribution of U.S. households, by household income, 1999 and 2004
• Income by age
  • Figure 3: Median household income per household member, by age of householder, 2003
  • Figure 4: Households with discretionary income, 2000
• Number of vacation days
  • Figure 5: Employees with access to paid vacation and paid holidays, 1999-2005
  • Figure 6: Average number of annual vacation days for select countries
• Terrorism, avian flu and other temporary setbacks
• American population by age
  • Figure 7: U.S. population, by age, 2000-10
• Race/ethnicity significantly influences outbound travel
  • Figure 8: U.S. population by race and Hispanic origin, 2000-10
• Exchange rates
  • Figure 9: Selected exchange rates against the U.S. dollar, 2000-05
• Special events and media influence patterns
• Market Size and Trends
• Travel spending
  • Figure 10: Spending on fares and travel-related expenses by U.S. citizens outside the United States, 2000-05
  • Figure 11: Spending on fares and travel-related expenses by U.S. citizens outside the United States, at current and constant prices, 2000-05
  • Figure 12: Graph: Spending on fares and travel-related expenses by U.S. citizens outside the United States, at current and constant prices, 2000-05
  • Figure 13: U.S. international travel and tourism balance of trade, 2000-05
  • Figure 14: U.S. international travel and tourism balance of trade, by region, 2005
  • Figure 15: Average expenditures outside U.S., by U.S. citizens, 2004*
• Number of U.S. residents traveling abroad
  • Figure 16: Number of domestic, inbound and outbound travel person trips, 1999-2006
  • Figure 17: Number of U.S. residents who took international leisure trip, 1999-2004
• Where leisure travelers go
  • Figure 18: International destinations visited for leisure by U.S. residents, 1999-2004
  • Figure 19: U.S. citizen air traffic* to overseas regions, canada and mexico, 2001-05
  • Figure 20: Preliminary U.S. citizen air traffic**, January-May 2006
• Canada and Mexico
• Canada
  • Figure 21: U.S. resident overnight trips to Canada from the U.S., by method of transport used, 2000-04
• Mexico
  • Figure 22: U.S. resident overnight trips to Mexico from the U.S., by method of transport used, 2000-04
• Market Segmentation
• Purpose of trip
  • Figure 23: Main purpose of trip, all international travelers, 2004
  • Figure 24: First international trip, all international travelers, 2004
  • Figure 25: Mean and median number of international trips in past 12 months, all international travelers, 2004
  • Figure 26: Nights outside the U.S., all international travelers, 2004
  • Figure 27: Number of countries visited, all international travelers, 2004
  • Figure 28: Demographic characteristics of outbound travelers, all international travelers, 2004
• Supply Structure
• Introduction and Overview
• Introduction
  • Figure 29: Method of booking international air trip, 2004
  • Figure 30: Method of booking international air trip, all international travelers, 1999-2004
• Booking international trips online grows dramatically
  • Figure 31: Total U.S. travel booking sales made via the Internet, at current and constant prices, 2000-05
  • Figure 32: Top online travel sites*, number of sessions**, January-April 2006
• Hotel companies begin limiting supply to third party agencies
• Major online/offline agency changes hands
• Online and offline agencies
  • Figure 33: Top ten travel agencies, gross sales volume, 2004-05
• Transportation and lodging
• Air travel
  • Figure 34: Number of domestic and international enplanements, 1999-2005
  • Figure 35: Top ten airlines by scheduled passengers carried, international and domestic, 2005
• Leading international airline profiles
• Deutsche Lufthansa A.G.
• British Airways p.l.c.
• Air France-KLM S.A.
• American Airlines, Inc.
• Singapore Airlines Ltd
• Cathay Pacific Airways, Ltd.
• Emirates
• Scandinavian Airlines System (SAS)
• Alitalia-Linee Aeree Italiane S.p.A.
• Cruises
  • Figure 36: Embarkations of north american cruise industry, by region of world, 2003 and 2004
• Major cruise company profiles
• Carnival Corporation & Carnival p.l.c.
• Royal Caribbean Cruises Ltd.
• Star Cruises Limited/NCL Corporation Ltd. (Norwegian Cruise Line)
• Hotels
  • Figure 37: International systemwide revenue for top ten global hoteliers, 2003 and 2005
• Major hotel company profiles
• InterContinental Hotels Group (IHG)
• Marriott International, Inc.
• Accor
• Best Western International
• Carlson Hospitality
• Starwood Hotels & Resorts Worldwide, Inc.
• Cendant/Wyndham
• Global Hyatt Corporation
• Hilton Hotels Corporation
• Choice Hotels International, Inc.
• Agency Profiles
• American Express
• Carlson Wagonlit Travel (Carlson Companies)
• Expedia Inc. (formerly IAC/InterActive Corp)
• HRG North America
• BCD Travel
• Travelocity
• TQ3 Navigant (Navigant International)
• AAA Travel
• Travelport
• Priceline.com
• The Consumer
• Introduction
• Summary
• Lack of maturity
• Method of booking
• Spouses/significant others win out as travel companions
• Spice and variety in destinations?
• More money or more vacation time?
• Possession of valid passport
  • Figure 38: Possess valid passport, January-September 2005
  • Figure 39: Possess valid passport, by household income, January-September 2005
  • Figure 40: Possess valid passport, by level of educational attainment, January-September 2005
  • Figure 41: Possess valid passport, by race/ethnicity, January-September 2005
• Incidence of foreign travel in last three years
  • Figure 42: Incidence of foreign travel in last 3 years, January-September 2005
  • Figure 43: Incidence of foreign travel in last three years, by household income, January-September 2005
  • Figure 44: Incidence of foreign travel in last three years, by level of education attained, January-September 2005
  • Figure 45: Incidence of foreign travel in last three years, by race/ethnicity, January-September 2005
• Spending on last foreign trip
  • Figure 46: Spending on last foreign trip, January-September 2005
  • Figure 47: Spending on last foreign trip, by age, January-September 2005
  • Figure 48: Spending on last foreign trip, by household income, January-September 2005
  • Figure 49: Spending on last foreign trip, by race/ethnicity, January-September 2005
• Method of booking on last outbound trip
  • Figure 50: Method of booking last outbound trip, August 2006
  • Figure 51: Method of booking last outbound trip, by age, August 2006
  • Figure 52: Method of booking last outbound trip, by household income, August 2006
  • Figure 53: Method of booking last outbound trip, by race, August 2006
  • Figure 54: Method of booking last outbound trip, by presence of children in household, August 2006
  • Figure 55: Method of booking last outbound trip, by region of residence of respondent, August 2006
• Travel party/companions on last outbound trip
  • Figure 56: Travel party/companions on last outbound trip, August 2006
  • Figure 57: Travel party/companions on last outbound trip, by age, August 2006
  • Figure 58: Travel party/companions on last outbound trip, by household income, August 2006
  • Figure 59: Travel party/companions on last outbound trip, by Hispanic origin, August 2006
• Reasons/activities for outbound trips
  • Figure 60: Reasons/activities for outbound trips, August 2006
  • Figure 61: Reasons/activities for outbound trips, by gender, August 2006
  • Figure 62: Reasons/activities for outbound trips, by age, August 2006
  • Figure 63: Reasons/activities for outbound trips, by hispanic origin, August 2006
• Intention to travel to new destination on next outbound trip
  • Figure 64: Intention to travel to new destination on next outbound trip, August 2006
  • Figure 65: Intention to travel to new destination on next outbound trip, by age, August 2006
  • Figure 66: Intention to travel to new destination on next outbound trip, by household income, August 2006
  • Figure 67: Intention to travel to new destination on next outbound trip, by Hispanic origin, August 2006
  • Figure 68: Intention to travel to new destination on next outbound trip, by region, August 2006
• Opinions/intentions regarding outbound travel
  • Figure 69: Opinions regarding outbound travel, August 2006
  • Figure 70: Opinions regarding outbound travel, by gender, August 2006
  • Figure 71: Opinions regarding outbound travel, by age, August 2006
  • Figure 72: Opinions regarding outbound travel, by household income, August 2006
  • Figure 73: Opinions regarding outbound travel, by race/ethnicity, August 2006
  • Figure 74: Opinions regarding outbound travel, by Hispanic origin, August 2006
  • Figure 75: Opinions regarding outbound travel, by level of educational attainment, August 2006
• Future and Forecast
• Future trends
• Hispanics and Asians will drive outbound travel for VFR
  • Figure 76: Generations, by race and Hispanic origin, 2005
• Electronic passport security concerns worry some
• Economy and terrorism have the potential to affect market most
• Increasing desire and ability to travel abroad keys to increasing market
• Market forecast
• Spending on fares and travel-related expenses by U.S. citizens outside the United States
  • Figure 77: Forecast of total spending on fares and travel-related expenses by U.S. citizens outside the United States, at current and constant prices, 2005-10
  • Figure 78: Graph: Forecast of total spending on fares and travel-related expenses by U.S. citizens outside the United States, at current and constant prices, 2005-10
• Forecast Factors
• Appendix: Trade Associations