Report: Leisure Travel - US

Scope and Themes
What you need to know
Definition
Data sources for sales estimates
Consumer survey data
Abbreviations and terms
Executive Summary
Market drivers: A macro-perspective
Market drivers: A consumer perspective
Who travels domestically, and what do they do?
Average expenditures for domestic trips
Regions and states visited in domestic vacations
Lodging
Car rental
Who travels abroad, and what do they do?
Elements of an enjoyable vacation
Inspire Insights
I Travel, Therefore I Am
What' s it all about?
What we' ve seen
Specifics
Fresh Travel
What' s it all about?
What we' ve seen
Key points
Sales return to 2005-06 levels in 2008
- Figure 1: U.S. leisure travel sales, in current terms, 2003-13
- Figure 2: U.S. leisure travel sales, in constant terms, 2003-13
Competitive Context
Home entertainment rose as Americans spent less time vacationing away from home
- Figure 3: Changes in travel and vacation patterns, by household income, February 2009
Segment Performance
Lodging shows largest decline
- Figure 4: Comparisons of industry sales trends, by lodging, air travel and car rental, 2003-13
Segment Performance--Lodging
Key point
Sales drop sharply in 2008, with the rate of decline expected to decelerate in 2009
- Figure 5: U.S. sales of lodging for leisure purposes, in current terms, 2003-13
- Figure 6: U.S. sales of lodging for leisure purposes, in constant terms, 2003-13
Segment Performance--Air Travel
Key point
Sales of air travel for leisure declined approximately 4.5% in 2008
- Figure 7: Sales of air travel for leisure purposes, in current terms, 2003-13
- Figure 8: U.S. sales of air travel for leisure purposes, in constant terms, 2003-13
Segment Performance--Rental Cars
Market cools in the face of recession
- Figure 9: U.S. sales of car rentals for leisure purposes, in current terms, 2003-13
- Figure 10: U.S. sales of car rentals for leisure purposes, in constant terms, 2003-13
Market Drivers: A Macro Perspective
Price of travel rose throughout 2008 and declined in the early months of 2009
- Figure 11: Quarterly average domestic airline fares, January 2007-September 2008
- Figure 12: U.S. travel price index, March 2009
Number of summer person trips peaked in 2007 and declined slowly in 2008 and 2009
- Figure 13: Number of summer (June, July August) leisure travel trips, 2001-09
Sagging consumer confidence discouraged travel in 2008 but is on the rise in Q2 of 2009
- Figure 14: Consumer sentiment index, 2001-09
Time for leisure declining in 2009, but most will still vacation
- Figure 15: Numbers of hours available per week for leisure activities, 2000-08
Sharp increase in gas prices in 2008 discouraged travel; 2009 decline makes vacationing more accessible
- Figure 16: Trended U.S. retail gas prices, average of all grades and formulations, 2001-09
- Figure 17: Domestic scheduled enplanements on U.S. carriers, by month, 2007-08
Growth in affluent segments between 2005 and 2007 drove demand
- Figure 18: Income distribution in U.S., 2005-07
Weak dollar discourages foreign travel, compels some to travel domestically rather than abroad
Market Drivers: A Consumer Perspective
Recession drives bargain hunting, shorter trips--but the people still travel
- Figure 19: How economic downturn has affected travel plans within the U.S. in past 12 months, by age, February 2009
- Figure 20: Reasons for not taking a vacation in past 12 months, by age, February 2009
Who Travels Domestically and What do They Do?
Key points
About six in 10 Americans took a domestic vacation last year
- Figure 21: Vacations taken within the U.S. in past 12 months, by age, February 2009
- Figure 22: Vacations taken within the U.S. in past 12 months, by household income, February 2009
Driving
- Figure 23: Modes of transportation used for traveling for vacation within the U.S. in past 12 months, by age, February 2009
Incidence of "friendcations" rose in response to recession
- Figure 24: Types of vacations taken within the U.S. in past 12 months, by age, February 2009
Average Expenditures for Domestic Trips
Key points
Demand is limited for packages more than $500
- Figure 25: Amount spent on last domestic trip, by age, July 2007-September 2008
- Figure 26: Amount spent on all transportation for last vacation, by age, February 2009
- Figure 27: Amount spent on all transportation for last vacation, by household income, February 2009
Regions and States Visited in Domestic Vacations
Key points
Sunny beaches, mountains and the city are the most popular destinations
- Figure 28: Region visited, last vacation, past 12 months, by age, July 2007-September 2008
Florida, California, Nevada and New York top travel destinations
- Figure 29: Vacations taken within the U.S. in past 12 months, by age, July 2007-September 2008
Lodging
Key points
Demand for hotel rooms drops along with new construction projects
About half of vacationers pay for accommodations
- Figure 30: Type of lodging, for last vacation, in past 12 months, by age, July 2007-September 2008
- Figure 31: Type of lodging for last vacation, by household income, July 2007-September 2008
45-64-year-old affluents tend to stay longest
- Figure 32: Number of nights stays, hotel/motel in past 12 months, by age, July 2007-September 2008
- Figure 33: Number of nights stays, hotel/motel in past 12 months, by household income, July 2007-September 2008
Internet access, room service, mini kitchens and health facilities among top amenities
- Figure 34: Hotel amenities used within the U.S. in past 12 months, by household income, July 2007-September 2008
Somewhat more likely to use internet and room service when traveling abroad
- Figure 35: Hotel amenities used, for trip outside the U.S., by household income, February 2009
Most not enrolled in a lodging loyalty program
- Figure 36: Hotel/motel frequent guest enrollment, past 12 months, by age, February 2009
- Figure 37: Hotel/motel frequent guest enrollment, past 12 months, by household income, July 2007-September 2008
Vacation rentals an attractive option for some, but industry reporting steep declines in sales
Key points
Single affluents without children are a key segment
- Figure 38: Frequency of domestic air travel for vacation in the U.S., July 2007-September 2008
Many appreciate services that allow them to avoid waiting in line
- Figure 39: Airport services used in past 12 months, by age, February 2009
- Figure 40: Airport services used in past 12 months, by gender, February 2009
Enplanements down in major tourist destinations such as Chicago, Las Vegas, and Orlando
- Figure 41: Top 10 U.S. airports, by January 2009 domestic scheduled enplanements, January 2009
Southwest and American still market leaders, but American may be losing dominance
- Figure 42: Airline used, last vacation, past 12 months, by household income, July 2007-September 2008
U.S. based airlines are still favored by most for foreign travel
- Figure 43: Airline used for last foreign travel in past three years, by household income, July 2007-September 2008
Car Rental
Key point
Affluents and 35-64 year-olds are high-demand segments
- Figure 44: Vehicle rental, past 12 months, by household income, July 2007-September 2008
- Figure 45: Domestic trip by plane, for vacation, in past 12 months, by age, July 2007-September 2008
Who Travels Abroad and What Do They Do?
Key points
About four in 10 vacationed outside the U.S. in the previous three years; affluents and Asian respondents reported more international travel
- Figure 46: Incidence of foreign travel in past three years, by demographic group, February 2009
- Figure 47: Number of foreign travel trips by plane in past three years, by household income, February 2009
Average foreign vacation expenditure among respondents is about $2,500
- Figure 48: Amount spent on last foreign trip for vacation, in past three years, by household income, February 2009
Many seek warmer weather and visits with loved ones when traveling abroad
- Figure 49: Vacation type, outside the U.S., by household income, February 2009
Inexpensive air travel the most common way of visiting a foreign country
- Figure 50: Mode of transportation used, for trip outside the U.S., by household income, February 2009
Countries and Regions Visited on Last Overseas Vacation
Key point
Mexico, Europe, the Caribbean and Canada most popular vacation destinations outside the U.S.
- Figure 51: Location of last foreign vacation, by household income, July 2007-September 2008
Importance of Culture and Environmental Issues Associated with Foreign Travel
Key point
Learning about and gaining respect for local culture is important to most respondents
- Figure 52: Summary of agreement on environmental issues on trips outside the U.S., by household income, February 2009
Use of and Attitudes Towards Recreational Vehicles
Key point
Campers/RVs enticing option for some young families and affluents
- Figure 53: Owns a camper/recreational vehicle, by age, February 2009
- Figure 54: Owns a camper/recreational vehicle, by household income, February 2009
Men have greater affinity for RVs
- Figure 55: Attitudes towards campers/recreational vehicles, by gender, February 2009
Leading Companies
InterContinental, Wyndham, Hilton, and Marriott maintain position as top players during recession
- Figure 56: Top 25 U.S. Hotels based on number of rooms, March 2009
American and Southwest continue to lead in the air travel segment
- Figure 57: Top 10 U.S. airlines, by January 2009 domestic scheduled enplanements, January 2009
- Figure 58: Share of U.S. domestic air travel market based on passenger revenue miles, March 2008-February 2009
Enterprise and Hertz continue to dominate the industry
- Figure 59: 2008 US car rental market, March 2008-February 2009
Innovation and Innovators
Hotels going green
Kitchens and the luxuries of home, on vacation
Appealing to Affluent Wellness-Oriented Consumers
Characteristics of Frequent Air Travelers: A Psychographic Perspective
Avid air travelers are often effective social networkers
- Figure 60: Characteristics of travelers, by traveler type, July 2007-September 2008
Avid travelers often adventurous and more comfortable than most at stepping off the "beaten path"
- Figure 61: Characteristics of travelers, by traveler type, July 2007-September 2008
Elements of an Enjoyable Vacation
Key points
Relaxation, weather, sightseeing and cuisine all top priorities
- Figure 62: Essential elements of an enjoyable vacation, by household income, February 2009
Advertising and Promotion
Overview
Media expenditures by leading lodging companies
- Figure 63: Ranking of lodging companies by sales, with media expenditures and agencies used, 2008
Airline media expenditures
- Figure 64: Ranking of airline companies by sales, with media expenditures and agencies used, 2008
Rental car media expenditures
- Figure 65: Media expenditures and agencies used by top car rental agencies, 2009
Websites and television ads for online travel companies
Orbitz.com
- Figure 66: Orbitz price promotion ad, 2009
- Figure 67: Orbitz Travel well ad, 2008
Expedia.com
- Figure 68: Expedia vacation deprivation ad, 2008
- Figure 69: Expedia suitcases ad, 2008
Race and Ethnicity
Whites and Asians over-index on domestic leisure travel
- Figure 70: Domestic travel in past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 71: Number of nights away from home on vacation, in past 12 months, by race/ethnicity, July 2007-September 2008
On average, Asians and Hispanics spend the most per trip on domestic travel
- Figure 72: Amount spent on last domestic trip, by race/ethnicity, July 2007-September 2008
Asians much more likely to travel abroad
- Figure 73: Incidence of foreign travel in last three years, by race/ethnicity, July 2007-September 2008
Whites and Asians use hotels with greater frequency
- Figure 74: Number of nights at hotel/motel for personal/vacation in past 12 months, by race/ethnicity, July 2007-September 2008
Appendix: Additional Income Comparisons
- Figure 89: Reasons respondents have not taken a domestic trip in past 12 months, by household income, February 2009
- Figure 90: How economic downturn has affected travel plans within the U.S. in past 12 months, by household income, February 2009
- Figure 91: Types of vacations taken within the U.S. in past 12 months, by household income, February 2009
- Figure 92: Modes of transportation used for traveling for vacation within the U.S. in past 12 months, by household income, February 2009
- Figure 93: Mode of transportation used, last vacation, past 12 months, by household income, July 2007-September 2008
- Figure 94: State visited, last vacation, by household income, July 2007-September 2008
- Figure 95: Region visited, last vacation, past 12 months, by household income, July 2007-September 2008
- Figure 96: Amount spent on last domestic trip, by household income, July 2007-September 2008
- Figure 97: Airport services used in past 12 months, by household income, February 2009
- Figure 98: Last year of foreign travel in past three years, by household income, February 2009
- Figure 99: Type of accommodations used during foreign travel, by household income, February 2009
- Figure 100: Mode of transportation used for foreign travel in past three years, BY HOUSEHOLD income, February 2009
- Figure 101: Last country, foreign travel in past three years, by household income, July 2007-September 2008
- Figure 102: Domestic travel in past 12 months, by household income, July 2007-September 2008
Appendix: Additional Age Comparisons
- Figure 103: Mode of transportation used during last domestic vacation in past 12 months, by age, July 2007-September 2008
- Figure 104: State visited, last vacation, in past 12 months, by age, July 2007-September 2008
- Figure 105: Hotel amenities used within the U.S. in past 12 months, by age, July 2007-September 2008
- Figure 106: Airline used, last vacation, past 12 months, by age, July 2007-September 2008
- Figure 107: Essential elements of an enjoyable vacation, by age, February 2009
- Figure 108: Vehicle rental, past 12 months, by age, July 2007-September 2008
Appendix: Additional Race/Ethnicity Comparisons
- Figure 109: Vacations taken within the U.S. in past 12 months, by race/ethnicity, February 2009
- Figure 110: Airport services used in past 12 months, by race/ethnicity, February 2009
- Figure 111: Hotel/motel frequent guest enrollment, past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 112: Hotel/motel stay, past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 113: Type of lodging, for last vacation, in past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 114: Owns a camper/recreation vehicle, by race/ethnicity, February 2009
- Figure 115: How economic downturn has affected travel plans within the U.S. in past 12 months, by race/ethnicity, February 2009
- Figure 116: Vacations taken within the U.S. in past 12 months, by race/ethnicity, February 2009
- Figure 117: Types of vacations taken within the U.S. in past 12 months, by race/ethnicity, February 2009
- Figure 118: Region visited, last vacation, past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 119: State visited, last vacation, in past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 120: Airline used, last vacation, past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 121: Type of lodging, for last vacation, in past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 122: Essential elements of an enjoyable vacation, by race/ethnicity, February 2009
- Figure 123: Modes of transportation used for traveling for vacation within the U.S. in past 12 months, by race/ethnicity, February 2009
- Figure 124: Number of domestic roundtrip(s) by plane for vacation/personal in past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 125: Reasons for not taking a vacation in past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 126: Hotel amenities used within the U.S. in past 12 months, by race/ethnicity, February 2009
- Figure 127: Vehicle rental, past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 128: Domestic travel, for vacation, in past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 129: Vacations taken within the U.S. in past 12 months, by gender, February 2009
- Figure 130: Vacations taken within the U.S. in past 12 months, by gender, February 2009
- Figure 131: Modes of transportation used for traveling for vacation within the U.S. in past 12 months, by gender, February 2009
- Figure 132: How economic downturn has affected travel plans within the U.S. in past 12 months, by gender, February 2009
- Figure 133: Reasons respondents have not taken a domestic trip in past 12 months, by gender, February 2009
- Figure 134: Types of vacations taken within the U.S. in past 12 months, by gender, February 2009
- Figure 135: Amount spent on all transportation for last vacation, by gender, February 2009
- Figure 136: Hotel amenities used within the U.S. in past 12 months, by gender, February 2009
- Figure 137: Essential elements of an enjoyable vacation, by gender, February 2009
Appendix: Trade Associations

Leisure Travel - US - June 2009

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