Hotel Online Special Report
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AAA  Predicts Travel Market Changes - 
Travelers With Less Time and More Money Will Change Travel Market
 
ORLANDO, Fla - Oct. 28, 1998--A baby-boom generation with more money and less time to travel will dominate and shape the leisure travel market for years to come, AAA reported today at the Travel Industry Association of America's Marketing Outlook Forum in Reno, Nev.

According to Graeme Clarke, senior vice president, AAA Travel Related Services, "Baby-boomers are the key driving force behind current and future leisure travel trends. The travel industry will respond to their needs by offering travel options that offer more thrills in less time."

According to research conducted for AAA by D.K. Shiflet and Associates, more than 40 percent of all leisure person trips are taken by people who are in the 34 to 54 age group. Despite rising costs and a struggling global economy, the purchasing power of the baby-boom generation will mean more growth in the leisure travel industry.

"The group is shifting away from the purchase of material things and moving toward more time off for activities like cruises, golf lessons and educational travel," reported Clarke.

Travel by single individuals and minorities will also grow in the next several years. The single population accounts for 9 percent of leisure travel, a figure expected to jump by 26 percent in the next decade. The African American, Hispanic American and Asian American population will increase 10 percent by 2020, with corresponding growth in travel.

The report indicated that the biggest overall increase in type of travel will be in the cruise industry. AAA estimated the number of cruise passengers will jump by 27 percent to about 7 million in 1999.

"Three factors seem to be driving this growth," said Clarke. "First, the traditional cruise market -- adults age 40 and above -- will increase in the next decade; second, the industry is successfully targeting younger, family-oriented travelers; and third, there is a popularity growth in all-inclusive travel options." Despite the projected increase in overall leisure travel, auto travel will decline from the forecasted growth of 4 percent for 1998 to a 1.6 percent growth in 1999. This growth rate of under 2 percent will continue for several years.

"Lodging costs will be up by 5 percent and meal costs will be up 3 percent in 1999," reported Clarke. "These two factors, combined with a slower overall growth of the U.S. economy, will be the primary cause for the auto travel decrease."

AAA is a not-for-profit federation of 95 clubs with 1,100 offices providing more than 41 million members in the United States and Canada with travel, insurance, financial and auto-related services.

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Contact:
AAA, Orlando
Jerry Cheske
Mitch Fuqua
407/444-8000
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Also See:
Auto Travel to Climb Nearly 3% in '98, AAA Says / Oct 1997 
1997 Vacation Costs / AAA 

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