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to Re-think Marketing Plans |
| WASHINGTON, DC -- December
3, 2002 - A survey of the Travel Industry Association of America�s (TIA)
2,300 member organizations shows that changes in consumer travel patterns
have greatly affected how they market their destinations and services.
Three-fourths of TIA members see closer to home travel and more last minute
travel among their customers. Nearly as many report fewer international
visitors, more car travel, and lower travel expenditures. On the plus side,
nearly half of TIA members are enjoying increased use of their web sites
by potential customers. In the past year, most (87%) TIA member organizations
have made changes to marketing and/or promotion programs. The study is
a follow up of TIA�s September, 2001 examination of the immediate impacts
following September 11 and the economic downturn.
Seventy-seven percent have focused their marketing and promotion efforts on closer, drive-to markets in the past 12 months. And 66 percent have offered new discounted rates and packages. But while 68 percent of TIA members are optimistic that their businesses will improve in 2003, 40 percent report reductions in staff, salaries, or bonuses in the previous 12 months. �The current economic situation, combined with a sluggish travel recovery and a decrease in traveler spending has forced the industry to employ a number of strategies, such as focusing on in-state or in-region markets,� remarked Dr. Suzanne Cook, senior vice president of research for the Travel Industry Association of America. �And just as TIA is doing on a national level, about half of our members are involved in more partnerships as a way to leverage scarce resources and make more impact.� One-third of TIA members have increased their marketing and advertising budgets in 2002, and a similar percentage say that they will be increasing them also in 2003. While about one-quarter have cut those budgets in 2002, only 9 percent plan to do so next year. In 2001, 64 percent of TIA members suffered declines in business. However, nearly one-third of respondents actually did better in 2001 than the year before. In 2002, travel industry recovery continues to be a mixed bag, with nearly half of respondents enjoying increases in business over last year. On the other hand, 41 percent continue to suffer declines. The biggest declines in travel volume are reported by organizations that primarily serve international inbound visitors, by travel agencies and tour operators, and by larger businesses with 100 employees or more. However, travel businesses in the Midwest, as well as attractions and domestic marketing organizations operating in more rural areas of the country are doing better than others. While the decline in air travel negatively affected two-thirds of TIA members, it was actually beneficial to about 16 percent. Specifically, places close to major population centers that were able to attract visitors who shifted to closer-to-home travel by car. Not surprisingly, the continuing decline in business travel and business travel spending has negatively affected 68 percent of TIA member businesses. TIA is the national, non-profit organization representing all components of the $537 billion travel industry. TIA's mission is to represent the whole of the U.S. travel industry to promote and facilitate increased travel to and within the United States. |
| Contact:
Cathy Keefe Manager, Media Relations Travel Industry Association of America phone: 202.408.8422 and fax: 202.408.1255 [email protected] www.tia.org |