Families and Travel - US - February 2006

Table of Contents

• Introduction and Abbreviations
• Other relevant reports
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Domestic travel spend shows steady growth; international spendrebounds sharply in 2003-04
• High travel costs have negative impact; also, 23% receive no paidvacation
• Hotels--budget supply falls, luxury rooms increase
• Falling airfares boost demand, but not likely to last due to tightprofit margin
• Safety concerns have only short-term impact
• Online travel bookings increase, but travel agents lead market
• American Express leads market, but new online entrants compete
• The Consumer: Who travels, why, how, where, and how much they spend;further insights on car rental and hotel brand loyalty
• Suppliers need to develop segmented marketing
• Future
• Market Drivers
• Cost of travel
• Hotel costs
  • Figure 1: Hotel occupancy and averagedaily room rate, 2000-04
  • Figure 2: Breakdown of U.S. hotel rooms,by daily rate, 2000-04
• Rental carsFigure 3: Total U.S. car rental revenues,at current and constant prices, 1999-2004
  • Figure 4: Average weekly car rental ratesin major U.S. markets, July 2004
• AirfaresFigure 5: Total U.S. scheduled airlinepassenger revenue, at current and constant prices, 1999-2004
  • Figure 6: Average yield for U.S. passengerairlines, 1999-2004
• Distribution of incomes
  • Figure 7: Median household income,1994-2004
  • Figure 8: Distribution of U.S. households,by income, 1999 and 2004
• Demographic trends--which households account for the most travel
  • Figure 9: Number of married and singleU.S. households with children, by age, income, and race/ethnicity, 2005
• Minority populations
  • Figure 10: Share of historical andprojected U.S. population growth, by race/ethnicity, 2000-10
• Vacation time
  • Figure 11: Employees with access to paidvacation and paid holidays, 1999-2005
  • Figure 12: Paid vacation days available toprivate sector employees, by average wage and geographical area, March2005
• Reasons for not taking a trip
  • Figure 13: Reasons for not traveling forleisure more often--parents with children in the household, byhousehold income and Hispanic origin, December 2005
• Safety fears
• Market Size
• Domestic travel
  • Figure 14: Domestic travel spending byfamilies, 2001-04
  • Figure 15: Graph: Domestic travel spendingby families, 2001-04
  • Figure 16: Total domestic leisure tripsand domestic leisure trips with children, 1999-2004
  • Figure 17: Total overnight domesticleisure trips, 1999-2004
• International travel
  • Figure 18: Spending on internationalleisure trips by U.S. residents traveling with children, 2001-04
  • Figure 19: Graph: Spending oninternational leisure trips by U.S. residents traveling with children,2001-04
  • Figure 20: International leisure trips byU.S. residents, 1999-2004
  • Figure 21: International leisure trips byU.S. residents with children, 1999-2004
  • Figure 22: Spending on fares andtravel-related expenses by U.S. citizens outside the United States,1999-2004
• Destinations visitedFigure 23: International destinationsvisited for leisure by U.S. residents, 1999-2004
  • Figure 24: Preliminary U.S. citizen airtraffic, January-August 2005
• Nights spent outside the U.S.Figure 25: Average number of nights spentoutside the U.S., 1999-2004
• Supply Structure
• Lack of family focus
• Internet penetration and online travel bookings
• Broadband penetration
  • Figure 26: U.S. broadband householdprojections, 2000-10
  • Figure 27: Internet activities*,May-November 2004
  • Figure 28: Means of booking air travel,U.S. outbound international travel, 1999-2004
  • Figure 29: Online bookings and last-minutetravel, December 2005
  • Figure 30: Online bookings, by householdincome, December 2005
• Companies and brands
  • Figure 31: Major U.S. travel agencies, byworldwide sales, 2001-04
  • Figure 32: Major U.S. travel agencies, byworldwide sales, 2001-04
  • Figure 33: Graph: Major U.S. travelagencies, by worldwide sales, 2001-04
• Company profiles
• American Express
• Carlson Wagonlit Travel
• IAC/InterActiveCorp (Expedia)
• TQ3 Navigant
• Travelocity
• World Travel BTI
• AAA Travel
• Liberty Travel Inc
• Cendant Corporation--Travel Distribution Services Division (ebookersand Orbitz)
• Priceline.com Incorporated
• Advertising and Promotion
• Overview
• American Express
• Expedia (IAC/InterActiveCorp)
• Travelocity
• ebookers (Cendant Corporation)
• Priceline.com
• The Consumer
• Domestic travel
  • Figure 34: Domestic trips taken by parentswith children in the household in the last 12 months, May 2004-May 2005
  • Figure 35: Domestic trips taken by parentswith children in the household in the last 12 months, by age,race/ethnicity and household income, May 2004-May 2005
• Purpose of most recent trip
  • Figure 36: Purpose of domestic trips takenby parents with children in the household in the last 12 months, May2004-May 2005
  • Figure 37: Purpose of domestic trips takenby parents with children in the household in the last 12 months, by age,race/ethnicity and household income, May 2004-May 2005
• Means of transport
  • Figure 38: Means of transport on mostrecent domestic trip taken for leisure by parents with children in thehousehold in the last 12 months, May 2004-May 2005
  • Figure 39: Means of transport used on lastdomestic trip taken for leisure by parents with children in thehousehold in the last 12 months, by age, race/ethnicity and householdincome, May 2004-May 2005
• Destination state
  • Figure 40: Destination state on mostrecent domestic trip taken for leisure by parents with children in thehousehold in the last 12 months, May 2004-May 2005
  • Figure 41: Destination state on mostrecent domestic trip taken for leisure by parents with children in thehousehold in the last 12 months, by age, race/ethnicity and censusregion, May 2004-May 2005
• Trip spend
  • Figure 42: Amount spent on most recentdomestic trip taken for leisure by parents with children in thehousehold in the last 12 months, May 2004-May 2005
  • Figure 43: Amount spent on most recentdomestic trip taken for leisure by parents with children in thehousehold in the last 12 months, by age, race/ethnicity and householdincome, May 2004-May 2005
• Summary--Domestic travel
• The Consumer
• International travel
  • Figure 44: International travel by parentswith children in the household in the last three years, May 2004-May2005
  • Figure 45: International travel by parentswith children in the household in the last three years, by age,race/ethnicity and household income, May 2004-May 2005
• Purpose of most recent trip
  • Figure 46: Purpose of international tripstaken by parents with children in the household in the last three years,May 2004-May 2005
  • Figure 47: Purpose of international tripstaken by parents with children in the household in the last three years,by age, race/ethnicity and household income, May 2004-May 2005
• Year of most recent trip
  • Figure 48: Year of last international triptaken by parents with children in the household in the last three years,2002-04
• Type of lodging
  • Figure 49: Type of lodging used duringlast international trip taken for leisure by parents with children inthe household in the last three years, May 2004-May 2005
  • Figure 50: Type of lodging used duringlast international trip taken for leisure by parents with children inthe household in the last three years, by age, race/ethnicity andhousehold income, May 2004-May 2005
• Means of transport
  • Figure 51: Means of transport used duringlast international trip taken for leisure by parents with children inthe household in the last three years, May 2004-May 2005
  • Figure 52: Means of transport used duringlast international trip taken for leisure by parents with children inthe household in the last three years, by age, race/ethnicity andhousehold income, May 2004-May 2005
• Trip spend
  • Figure 53: Amount spent on travel duringlast international trip taken for leisure by parents with children inthe household in the last three years, May 2004-May 2005
  • Figure 54: Amount spent on travel duringlast international trip taken for leisure by parents with children inthe household in the last three years, by age, race/ethnicity andhousehold income, May 2004-May 2005
• Cohort information
  • Figure 55: Cohort descriptors for keyfamily travel buyers, May 2004-May 2005
  • Figure 56: Frequency of domestic travel,type of lodging and trip spend, by cohort, May 2004-May 2005
• Summary--International travel
• The Consumer
• All travel behavior--proprietary survey
  • Figure 57: Trips including hotel stay, carrental, plane flight or packaged tour taken--parents with children inthe household, December 2005
  • Figure 58: Trips including hotel stay, carrental, plane flight or packaged tour taken--parents with children inthe household, by age, race/ethnicity and household income, December2005
• LodgingFigure 59: Number of trips taken with paidlodging in the last year--parents with children in the household, byhousehold income, December 2005
• Air travelFigure 60: Number of trips taken withplane travel in the last year--parents with children in the household,by household income and Hispanic origin, December 2005
• Travel planning
  • Figure 61: In charge of travel planningfor their household--parents with children in the household, by genderand age, December 2005
• Travel companions
  • Figure 62: Travel companions on mostrecent trip and trips within last two years taken--parents withchildren in the household, December 2005
  • Figure 63: Travel companions on mostrecent trip taken--parents with children in the household, by gender,age and marital status, December 2005
  • Figure 64: Travel companions on leisuretrips within last two years taken--parents with children in thehousehold, by Hispanic origin and household income, December 2005
  • Figure 65: 'Would enjoy dedicatedflights/hotel areas for those traveling without children'--parentswith children in the household, September 2005
• Types of travel destinations and tendency to visit new/previousdestinations
  • Figure 66: Types of travel included inmost recent trip and trips within last two years taken--parents withchildren in the household, December 2005
• Purpose of trip--activities
  • Figure 67: Primary purpose of most recenttrip and trips within last two years taken--parents with children inthe household, December 2005
  • Figure 68: Primary purpose of most recenttrip taken--parents with children in the household, by householdincome, December 2005
  • Figure 69: Range of leisure activities inmost recent trip and trips within last two years taken--parents withchildren in the household, December 2005
  • Figure 70: Range of leisure activities onmost recent trip taken--parents with children in the household, byHispanic origin and household income, December 2005
• Attitudes towards hotels
  • Figure 71: Agree 'hotel is just a placeto sleep'--parents with children in the household who have taken atleast one qualifying trip, by age and household income, December 2005
  • Figure 72: 'Prefer to stay at boutiquehotels rather than chains'--parents with children in the householdwho have taken at least one qualifying trip, by age and householdincome, December 2005
  • Figure 73: 'Loyal to a hotel chain evenif it is not the cheapest'--parents with children in the householdwho have taken at least one qualifying trip, by gender, age andhousehold income, December 2005
• Car rental
  • Figure 74: Number of trips taken with owncar in the last year--parents with children in the household, by genderand household income, December 2005
  • Figure 75: Number of overnight leisuretrips taken with car rental in last year--parents with children in thehousehold, by household income, December 2005
  • Figure 76: Longest time willing to drivebefore preferring to take a flight--parents with children in thehousehold, December 2005
  • Figure 77: Longest time willing to drivebefore preferring to take a flight--parents with children in thehousehold, by household income, December 2005
  • Figure 78: Purpose of most recent carrental--parents with children in the household, December 2005
  • Figure 79: Purpose of most recent carrental--parents with children in the household, by gender, age andhousehold income, December 2005
  • Figure 80: Method of booking most recentcar rental--parents with children in the household, December 2005
  • Figure 81: Method of booking most recentcar rental--parents with children in the household, by age andhousehold income, December 2005
  • Figure 82: 'Wish there was more varietyto rental cars available'--parents with children in the household, bygender, December 2005
• Influence of travel magazines
  • Figure 83: 'Base choice of destinationon travel magazines'--parents with children in the household, bygender, Hispanic origin and household income, December 2005
• Summary--All travel behavior
• The Future
• Future trends
• Grandparent power
• Changing shape of families
• Gap in the market for tailored, trusted advice
• Need for tailored marketing
• Market forecast
• Domestic travel spending by families
  • Figure 84: Forecast of total U.S. domestictravel spending by families, at current and constant prices, 2004-07
  • Figure 85: Graph: Forecast of total U.S.domestic travel spending by families, at current and constant prices,2004-07
• International travel spending by families
  • Figure 86: Forecast of total U.S.international travel spending by families, at current and constantprices, 2004-07
  • Figure 87: Graph: Forecast of total U.S.international travel spending by families, at current and constantprices, 2004-07
• Forecast factors
• Trade Associations
• Appendix: Simmons Cohorts
  • Figure 88: Cohort descriptors, all groups
• Appendix: Research Methodology
• Consumer Research
• Datascension, Inc. and Harris Interactive Service Bureau
• Greenfield Online
• ICR Surveys EXCEL
• Simmons National Consumer Surveys
• Technometrica TechnoExpresssm
• Trade Research
• Informal trade research
• Formal trade research
• Desk & Internet Research
• Sources
• Definitions
• Forecasts
• Appendix: What is Mintel?
• Mintel Group
• Mintel Reports
• Mintel Premier
• Mintel GNPD
• Mintel Menu Insights
• Mintel Comperemedia
• Mintel Custom Solutions