The U.S. vacation and leisure travel market reached $115.3 billion in 2004, the highest rate for
the reporting period of 1999-2004. Economic woes and the terrorist attacks of 2001 caused declines
in the market in 2001 and 2002, but with the economy stabilizing and the threat of terrorism
diminishing consumers are returning to travel. Baby Boomers are recognized as the biggest target
demographic, and as they age into retirement so increases the time available for them to take longer
trips.
The main challenge the industry faces is getting consumers to take trips longer than 5 days, with
many of the promotions currently available being geared toward the last minute, short break
traveler. The Internet presents the ideal opportunity for this, with an increasing number of U.S.
households connected. Continual advancements in technology will enable a greater level of ease for
researching and booking travel online. Competition among online providers will keep pricing down, a
plus for the budget conscious traveler.
Another challenge is the perceived image of the airline industry. While price wars keep costs
down, with that comes the risk of flight disruptions due to factors such as labor disputes. Low-cost
carriers continue to be a threat to major airlines, and consumers have indicated that they are
willing to pass on perks in order to save money on flights.
Mintels report includes a thorough analysis of the leisure traveler. This includes an evaluation
of top concerns and priorities when choosing airlines, a breakdown of preferences and behavior by
demographic characteristics, and statistics of purchasing frequency. A five-year market forecast
estimates the future of the market, with a statistical forecast of market performance until 2009 and
an outline of demographic and travel trends.
For the purpose of this report, vacation or leisure travel is defined as a domestic trip of five
or more nights away from home with at least one night of paid accommodation (i.e. staying in a hotel
or bed and breakfast or cruise ship). The analysis focuses mainly on commercial accommodation for
hotels, motels and bed and breakfasts. In addition, where applicable, self-catering accommodations
will be discussed (cabins, camping).
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