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Than it Was this Time Last Year |
by Pamela Lanier March 2002
Travel in 2002 is a far different activity than it was this time last year. The Index of Leading Economic Indicators reported that activities are up for the fourth straight month. The good news is many of the changes that have occurred are going to result, according to our research, in a domestic travel boom, which will greatly benefit bed & breakfasts, country inns, small lodges and boutique hotels. And though it would be easy to succumb to dire predictions by the media, travelers are saying something entirely different. People do not want to give up travel, one of the brightest features of the North American lifestyle. North Americans are resilient, USA Today surveyed more than 2,600 active travelers in the USA and Canada and 62% said they were more likely this year to travel within North America. And while it is true that some travel habits have changed, it is up to the travel industry to accommodate these changes. By sector: Leisure Travel On the leisure travel front, the changes have been even more profound. Inn members of BBIG International report an increasingly last minute aspect to bookings in this new environment. Price Waterhouse Cooper's research indicates that the factors affecting holiday occupancy had more to do with the economy and air travel inconveniences than it did with safety. It seems people are delaying leisure travel until the stress driven urge for a break becomes too great to deny. The Conde Nast poll found that 84% of respondents travel to get away and relieve stress. Most people are simply working too hard to forgo occasional short trips, which according to the Travel Industry Association of America (TIA) is the preferred trip type. They then are opting for a drive-to trip on a last minute basis. "Road trips are in," (AAA Travel Barometer). The preferred mode of transportation continues to be the automobile (Leisure Travel Tracking Poll). John and Joan, a working couple, e-mail each other: "Gee, honey it's been a long time since we had a break......"
And so it goes. The statistics speak for themselves:
Cruise Travel According to a Boston Globe article: In the weeks after Sept. 11, cruise lines faced the same phenomenon, as did the rest of the tourism business: sweeping cancellations by nervous customers. But the cruise industry's ambitious plans - to launch 15 new ships with thousands of berths over the coming year - made things even worse. In response, the cruise lines did what they do best: They slashed prices. "People stopped being scared at about $399," joked Mike Driscoll, editor of Cruise Week, an independent newsletter that tracks ships big and small. In the months following the attacks, that $399 could purchase a weeklong Caribbean cruise. Folks looking for a shorter getaway could sail for three nights for as little as $149. The $399 and $149, called "leaders" in the sales business, bought an inside cabin with bunk beds. A bigger room, with a balcony or view of the sea, might be a couple hundred dollars more, per person. Still, the fall prices were as low as they had been in decades. The strategy worked, and the big ships are again sailing at nearly full capacity. As customers head back to the sea in droves, setting aside any nagging worries about traveling in a floating American city, prices have climbed back up. In some cases, they are at pre-September levels. Family Travel Summer promises to bring an onslaught of family vacations because of the number of families who have children in the prime family travel years of 4 -16. Maura White, president of Gobabies.com, a web site for parents who travel with small children, says, "We see a continued high interest in families wanting to take fun, quick getaways." The TIA found that 35% of Americans say they've taken their children with them during weekend travel. A survey released by Hilton Hotels Corporation and Yankelovich Partners earlier this year found that 72 percent of the general public want to invest more time in personal relationships. The study also revealed that eight out of 10 people (81 percent) view vacations as one of the best ways to rekindle a romance, while more than two-thirds (69 percent) believe vacations are a prime source of quality time for families. Already National Parks are preparing for record crowds as Americans load the kids up in the car for an old-fashioned road trip. In addition, the National Park Service along with the National Register of Historic Places is introducing families to America's cultural heritage. The Register has created themed Travel Itineraries with maps and visitor information for 20 different heritage tours. As patriotism increases, national monuments, battlefields and historic sites are rebounding faster than other destinations. (Wall Street Journal 10/19/01) There have been no major changes in travel plans over the next six months for households nationwide. Six in ten households still intend to take a leisure or vacation trip in the next six months. (Leisure Travel Tracking Poll - Marketing Workshop, Norcross GA) This will benefit many lodging and tourism businesses, especially family lodges and camps, cabins by the river, kid friendly inns and small resorts in most every area. Small Lodging The winners during these precarious times appear to be small lodgings as people search out the regional and personal to enrich their vacations. The primary market orientation of bed and breakfasts/country inns is leisure travelers according to Research Information Services. The Wall Street Journal article found that "Podunkville" is suddenly looking good. More travelers are seeking seclusion over big-city hot spots. Fortunately, 80% of bed and breakfasts/country inns are located in villages or rural areas. Most are located within a few hours' drive of a major metropolitan area. Therefore, these inns are already accustomed to accommodating short, regional trips taken from major urban areas. Spas, especially those within a 3-hour drive of major cities, are also booming, as travelers seek more R&R. (Wall Street Journal 10/19/01) Robert Mandelbaum, Director of Research Information Services for the Hospitality Research Group conducted a study of the Bed & Breakfast / Country Inns industry. He found that the biggest declines in travel during 2001 have occurred in the commercial and group demand segments � and this represents only a small portion (20 percent) of all guests staying at inns. This compares to 54.1% for the average US hotel. Travel Now So the nation and the travel industry is on the road to recovery. And things are looking up for the first time in a while. A new Bear Stearns report from January 28, 2002 states "More than four months after the terrorist attacks of September 11, the U.S. lodging industry has begun to show slow signs of stabilizing and, even, significant recovery." The biggest change that is noted throughout the industry is travelers wanting discounts. Travelocity and Orbitz are expected to have double digit growth this year, mostly because of packages offering special rates. Jennifer Rubell of Rubell Hotels said her luxury boutique hotel collection is finding that "People are having a great time in Miami and with so many global cultural events happening here, we are having a great season." But she continued, "value is very, very important to travelers now." David Whitaker from the Greater Miami Convention and Visitors Bureau said in a USA Today article that travelers are more likely to expect discounts because they know they're available. "To survive in an increasingly competitive world, even warm-weather havens need to sell more than sun." The travel industry is continually changing. The segments of the industry that remain strong are those that have adapted to the times and the weak segments are those that stay in the past. As a whole, the travel industry is moving and growing and will meet this challenge as it has many others throughout history. The one thing that won't change is that people will continue to travel, as attested too in the Conde Nast poll. 78% of respondents said that travel is their ultimate passion, and nothing will stop them from traveling; 73% said that they will not put off their ultimate dream vacation; and 70% stated that travel is as important or more important to them than prior to September 11th. All of these people will need a place to sleep, to eat and to rejuvenate. And the properties that know how to market themselves to meet the needs of the traveling public, will be the ones that thrive. From the author:
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Sally Carpenter Senior Editor Lanier Publishing International www.travelguides.com |