Short Breaks - US - May 2006

Table of Contents

• Introduction and Abbreviations
• Introduction
• Other relevant reports
• Definition
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Sales show strong recovery--up 6.9% in 2005
• Limited vacation time drives sales
• Cost of travel impacts sales--room rates static, airfares fall
• Supply of upscale hotel rooms increases, budget rooms fall
• Income distribution--high-income households up 31.2%
• Increase in Hispanic population good news for airlines
• Safety concerns positive for short breaks
• Online bookings still strong, but hotels take control
• Sub-brands drive growth, but differentiation is a challenge
• Reasons for taking short breaks determined by income
• Visits to family driving short breaks, beach and casino most popularactivities
• Strong future growth but rising gas prices could dampen forecasts
• Market Drivers
• Limited vacation time for U.S. employees
  • Figure 1: Employees with access to paidvacation and paid holidays, 1999-2005
  • Figure 2: Paid vacation days available toprivate sector employees, by average wage and geographical area, March2005
• Cost of travel
• Hotel costs
  • Figure 3: Hotel occupancy and revenue,2000-04
  • Figure 4: U.S. hotel rooms, distributionby daily rate, 2000-04
• Air travelFigure 5: Total U.S. scheduled airlinepassenger revenue, at current and constant prices, 1999-2004
  • Figure 6: Average yield for U.S. passengerairlines, 1999-2006
• Online travel bookings
• Overview
• Broadband penetration
  • Figure 7: U.S. broadband householdprojections, 2000-10
  • Figure 8: Internet travel-relatedactivities*, May-November 2004
  • Figure 9: Primary means of booking airtravel, U.S. residents, 2004
• Income distribution
  • Figure 10: U.S. per capita disposablepersonal income, 1999-2005
  • Figure 11: Households with discretionaryincome, by age of householder, 2000
• Minority populations
  • Figure 12: Population trends byracial/ethnic group, 2000-10
• Safety fears
• Market Size
  • Figure 13: Total U.S. retail sales ofshort breaks, at current and constant prices, 1999-2005
  • Figure 14: Graph: Total U.S. retail salesof short breaks, at current and constant prices, 1999-2005
  • Figure 15: Total domestic leisure trips,1999-2004
• Supply Structure
• Introduction
• Hotels and motels
• Overview
  • Figure 16: Major hotel operators in theU.S. by number of properties and rooms, 2003 and 2005
  • Figure 17: Graph: Major hotel operators inthe U.S. by number of properties, 2005
• InterContinental Hotel Group
• Cendant Corporation--Hospitality Division
• Marriott International
• Choice Hotels International
• Hilton Hotels Corporation
• Airlines
  • Figure 18: U.S. airlines by share ofrevenue passenger miles, 1998 and 2005
  • Figure 19: U.S. airlines by share ofrevenue passenger miles, March 2005
• American Airlines
• United Airlines
• Delta Airlines
• Northwest Airlines
• Advertising and Promotion
• Overview
• InterContinental Hotel Group
• Cendant Corporation--Hospitality Division
• Marriott Hotels
• Choice Hotels International
• Hilton Hotel Corporation
• The Consumer
• Summary
• Four in ten have not taken a short trip
• Overlap of long and short trips markets
• Spouse or significant other most popular travel companion
• Your own vehicle is most popular means of transportation
• Spending time with loved ones top driver
• Weekends most popular time for short breaks
• 55-64 year old age group most likely to take short breaks
• $75K-99.9K age group more likely to visit family and friends
• Married couples are more likely to have taken a short break
• Black respondents more likely to travel alone
• Frequency of travel
  • Figure 20: Trips of four nights or lessthat involved a hotel stay, March 2006
  • Figure 21: Trips of four nights or lessthat involved a hotel stay, by age, household income and marital status,March 2006
• Reasons for taking short breaks
  • Figure 22: Reasons for taking shortvacations, March 2006
  • Figure 23: Reasons for taking shortvacations, by age, March 2006
  • Figure 24: Reasons for taking shortvacations, by race/ethnicity, March 2006
  • Figure 25: Reasons for taking shortvacations, by marital status, March 2006
• Travel companions
  • Figure 26: Travel companions on last trip,March 2006
  • Figure 27: Travel companions on last trip,by age and household income, March 2006
  • Figure 28: Travel companions on last trip,by race, Hispanic origin and marital status, March 2006
• Means of transport
  • Figure 29: Number of short breaks takenusing own car in the last year, by age, March 2006
  • Figure 30: Number of short breaks takenusing a rented car in the last year, by age, March 2006
  • Figure 31: Number of short breaks takenusing a plane in the last year, by income, March 2006
  • Figure 32: Number of short breaks takenusing a plane in the last year, by race/ethnicity, March 2006
  • Figure 33: Number of short breaks takenusing a train or bus in the last year, March 2006
• Purpose of trip
  • Figure 34: Purpose of short break, by age,March 2006
  • Figure 35: Purpose of short break, byhousehold income, March 2006
  • Figure 36: Purpose of short break, byrace/ethnicity, March 2006
• Visiting new destinations
  • Figure 37: Last visit to a new destinationon a trip of four nights or less that involved a hotel stay, by age,race and Hispanic origin, March 2006
• Nights included in stay
  • Figure 38: Nights included in stay on lasttrip of four nights or less that involved a hotel stay, by age,household income, race and Hispanic origin, March 2006
• The Future
• Future trends
• Short breaks set to increase
• Airlines consolidate and strengthen--fares rise
• Increased supply, decreased room rates
• Hotel chains take back the Internet
• Market based on Generation X and Baby Boomers
• Using sub-brands to differentiate
• Amenity creep continues
• Fitness as standard
• Lodging loyalty schemes stick around
• Forecast
• Market forecast
• Short breaks
  • Figure 39: Forecast of total U.S. sales ofshort breaks, at current and constant prices, 2005-10
  • Figure 40: Graph: Forecast of total U.S.sales of short breaks, at current and constant prices, 2005-10
• Forecast factors
• Appendix: Trade Associations