Leisure Travel - US

Published by: Mintel International Group Ltd.

Published: Jun. 1, 2009 - 126 Pages

Table of Contents

SCOPE AND THEMES

What you need to know

Definition

Data sources for sales estimates

Consumer survey data

Abbreviations and terms

EXECUTIVE SUMMARY

Market size and forecast

Market drivers: A macro-perspective

Market drivers: A consumer perspective

Who travels domestically, and what do they do?

Average expenditures for domestic trips

Regions and states visited in domestic vacations

Lodging

Air travel

Car rental

Who travels abroad, and what do they do?

Elements of an enjoyable vacation

MARKET SIZE AND FORECAST

Key points

Sales return to 2005-06 levels in 2008

Figure 1: U.S. leisure travel sales, in current terms, 2003-13

Figure 2: U.S. leisure travel sales, in constant terms, 2003-13

COMPETITIVE CONTEXT

Home entertainment rose as Americans spent less time vacationing away from home

Figure 3: Changes in travel and vacation patterns, by household income, February 2009

SEGMENT PERFORMANCE

Lodging shows largest decline

Figure 4: Comparisons of industry sales trends, by lodging, air travel and car rental, 2003-13

SEGMENT PERFORMANCE—LODGING

Key point

Sales drop sharply in 2008, with the rate of decline expected to decelerate in 2009

Figure 5: U.S. sales of lodging for leisure purposes, in current terms, 2003-13

Figure 6: U.S. sales of lodging for leisure purposes, in constant terms, 2003-13

SEGMENT PERFORMANCE—AIR TRAVEL

Key point

Sales of air travel for leisure declined approximately 4.5% in 2008

Figure 7: Sales of air travel for leisure purposes, in current terms, 2003-13

Figure 8: U.S. sales of air travel for leisure purposes, in constant terms, 2003-13

SEGMENT PERFORMANCE—RENTAL CARS

Market cools in the face of recession

Figure 9: U.S. sales of car rentals for leisure purposes, in current terms, 2003-13

Figure 10: U.S. sales of car rentals for leisure purposes, in constant terms, 2003-13

MARKET DRIVERS: A MACRO PERSPECTIVE

Price of travel rose throughout 2008 and declined in the early months of 2009

Figure 11: Quarterly average domestic airline fares, January 2007-September 2008

Figure 12: U.S. travel price index, March 2009

Number of summer person trips peaked in 2007 and declined slowly in 2008 and 2009

Figure 13: Number of summer (June, July August) leisure travel trips, 2001-09

Sagging consumer confidence discouraged travel in 2008 but is on the rise in Q2 of 2009

Figure 14: Consumer sentiment index, 2001-09

Time for leisure declining in 2009, but most will still vacation

Figure 15: Numbers of hours available per week for leisure activities, 2000-08

Sharp increase in gas prices in 2008 discouraged travel; 2009 decline makes vacationing more

accessible

Figure 16: Trended U.S. retail gas prices, average of all grades and formulations, 2001-09

Figure 17: Domestic scheduled enplanements on U.S. carriers, by month, 2007-08

Growth in affluent segments between 2005 and 2007 drove demand

Figure 18: Income distribution in U.S., 2005-07

Weak dollar discourages foreign travel, compels some to travel domestically rather than abroad

MARKET DRIVERS: A CONSUMER PERSPECTIVE

Recession drives bargain hunting, shorter trips—but the people still travel

Figure 19: How economic downturn has affected travel plans within the U.S. in past 12 months, by age,

February 2009

Figure 20: Reasons for not taking a vacation in past 12 months, by age, February 2009

WHO TRAVELS DOMESTICALLY AND WHAT DO THEY DO?

Key points

About six in 10 Americans took a domestic vacation last year

Figure 21: Vacations taken within the U.S. in past 12 months, by age, February 2009

Figure 22: Vacations taken within the U.S. in past 12 months, by household income, February 2009

Driving

Figure 23: Modes of transportation used for traveling for vacation within the U.S. in past 12 months, by age,

February 2009

Incidence of “friendcations” rose in response to recession

Figure 24: Types of vacations taken within the U.S. in past 12 months, by age, February 2009

AVERAGE EXPENDITURES FOR DOMESTIC TRIPS

Key points

Demand is limited for packages more than $500

Figure 25: Amount spent on last domestic trip, by age, July 2007-September 2008

Figure 26: Amount spent on all transportation for last vacation, by age, February 2009

Figure 27: Amount spent on all transportation for last vacation, by household income, February 2009

REGIONS AND STATES VISITED IN DOMESTIC VACATIONS

Key points

Sunny beaches, mountains and the city are the most popular destinations

Figure 28: Region visited, last vacation, past 12 months, by age, July 2007-September 2008

Florida, California, Nevada and New York top travel destinations

Figure 29: Vacations taken within the U.S. in past 12 months, by age, July 2007-September 2008

LODGING

Key points

Demand for hotel rooms drops along with new construction projects

About half of vacationers pay for accommodations

Figure 30: Type of lodging, for last vacation, in past 12 months, by age, July 2007-September 2008

Figure 31: Type of lodging for last vacation, by household income, July 2007-September 2008

45-64-year-old affluents tend to stay longest

Figure 32: Number of nights stays, hotel/motel in past 12 months, by age, July 2007-September 2008

Figure 33: Number of nights stays, hotel/motel in past 12 months, by household income, July 2007-September

2008

Internet access, room service, mini kitchens and health facilities among top amenities

Figure 34: Hotel amenities used within the U.S. in past 12 months, by household income, July 2007-September

2008

Somewhat more likely to use internet and room service when traveling abroad

Figure 35: Hotel amenities used, for trip outside the U.S., by household income, February 2009

Most not enrolled in a lodging loyalty program

Figure 36: Hotel/motel frequent guest enrollment, past 12 months, by age, February 2009

Figure 37: Hotel/motel frequent guest enrollment, past 12 months, by household income, July 2007-September

2008

Vacation rentals an attractive option for some, but industry reporting steep declines in sales

AIR TRAVEL

Key points

Single affluents without children are a key segment

Figure 38: Frequency of domestic air travel for vacation in the U.S., July 2007-September 2008

Many appreciate services that allow them to avoid waiting in line

Figure 39: Airport services used in past 12 months, by age, February 2009

Figure 40: Airport services used in past 12 months, by gender, February 2009

Enplanements down in major tourist destinations such as Chicago, Las Vegas, and Orlando

Figure 41: Top 10 U.S. airports, by January 2009 domestic scheduled enplanements, January 2009

Southwest and American still market leaders, but American may be losing dominance

Figure 42: Airline used, last vacation, past 12 months, by household income, July 2007-September 2008

U.S. based airlines are still favored by most for foreign travel

Figure 43: Airline used for last foreign travel in past three years, by household income, July 2007-September

2008

CAR RENTAL

Key point

Affluents and 35-64 year-olds are high-demand segments

Figure 44: Vehicle rental, past 12 months, by household income, July 2007-September 2008

Figure 45: Domestic trip by plane, for vacation, in past 12 months, by age, July 2007-September 2008

WHO TRAVELS ABROAD AND WHAT DO THEY DO?

Key points

About four in 10 vacationed outside the U.S. in the previous three years; affluents and Asian

respondents reported more international travel

Figure 46: Incidence of foreign travel in past three years, by demographic group, February 2009

Figure 47: Number of foreign travel trips by plane in past three years, by household income, February 2009

Average foreign vacation expenditure among respondents is about $2,500

Figure 48: Amount spent on last foreign trip for vacation, in past three years, by household income, February

2009

Many seek warmer weather and visits with loved ones when traveling abroad

Figure 49: Vacation type, outside the U.S., by household income, February 2009

Inexpensive air travel the most common way of visiting a foreign country

Figure 50: Mode of transportation used, for trip outside the U.S., by household income, February 2009

COUNTRIES AND REGIONS VISITED ON LAST OVERSEAS VACATION

Key point

Mexico, Europe, the Caribbean and Canada most popular vacation destinations outside the U.S

Figure 51: Location of last foreign vacation, by household income, July 2007-September 2008

IMPORTANCE OF CULTURE AND ENVIRONMENTAL ISSUES ASSOCIATED WITH FOREIGN

TRAVEL

Key point

Learning about and gaining respect for local culture is important to most respondents

Figure 52: Summary of agreement on environmental issues on trips outside the U.S., by household income,

February 2009

USE OF AND ATTITUDES TOWARDS RECREATIONAL VEHICLES

Key point

Campers/RVs enticing option for some young families and affluents

Figure 53: Owns a camper/recreational vehicle, by age, February 2009

Figure 54: Owns a camper/recreational vehicle, by household income, February 2009

Men have greater affinity for RVs

Figure 55: Attitudes towards campers/recreational vehicles, by gender, February 2009

LEADING COMPANIES

InterContinental, Wyndham, Hilton, and Marriott maintain position as top players during

recession

Figure 56: Top 25 U.S. Hotels based on number of rooms, March 2009

American and Southwest continue to lead in the air travel segment

Figure 57: Top 10 U.S. airlines, by January 2009 domestic scheduled enplanements, January 2009

Figure 58: Share of U.S. domestic air travel market based on passenger revenue miles, March 2008-February

2009

Enterprise and Hertz continue to dominate the industry

Figure 59: 2008 US car rental market, March 2008-February 2009

INNOVATION AND INNOVATORS

Hotels going green

Kitchens and the luxuries of home, on vacation

Appealing to Affluent Wellness-Oriented Consumers

CHARACTERISTICS OF FREQUENT AIR TRAVELERS: A PSYCHOGRAPHIC PERSPECTIVE

Avid air travelers are often effective social networkers

Figure 60: Characteristics of travelers, by traveler type, July 2007-September 2008

Avid travelers often adventurous and more comfortable than most at stepping off the

“beaten path”

Figure 61: Characteristics of travelers, by traveler type, July 2007-September 2008

ELEMENTS OF AN ENJOYABLE VACATION

Key points

Relaxation, weather, sightseeing and cuisine all top priorities

Figure 62: Essential elements of an enjoyable vacation, by household income, February 2009

ADVERTISING AND PROMOTION

Overview

Media expenditures by leading lodging companies

Figure 63: Ranking of lodging companies by sales, with media expenditures and agencies used, 2008

Airline media expenditures

Figure 64: Ranking of airline companies by sales, with media expenditures and agencies used, 2008

Rental car media expenditures

Figure 65: Media expenditures and agencies used by top car rental agencies, 2009

Websites and television ads for online travel companies

Orbitz.com

Figure 66: Orbitz price promotion ad, 2009

Figure 67: Orbitz Travel well ad, 2008

Expedia.com

Figure 68: Expedia vacation deprivation ad, 2008

Figure 69: Expedia suitcases ad, 2008

RACE AND ETHNICITY

Whites and Asians over-index on domestic leisure travel

Figure 70: Domestic travel in past 12 months, by race/ethnicity, July 2007-September 2008

Figure 71: Number of nights away from home on vacation, in past 12 months, by race/ethnicity, July 2007-

September 2008

On average, Asians and Hispanics spend the most per trip on domestic travel

Figure 72: Amount spent on last domestic trip, by race/ethnicity, July 2007-September 2008

Asians much more likely to travel abroad

Figure 73: Incidence of foreign travel in last three years, by race/ethnicity, July 2007-September 2008

Whites and Asians use hotels with greater frequency

Figure 74: Number of nights at hotel/motel for personal/vacation in past 12 months, by race/ethnicity, July 2007-

September 2008

APPENDIX: ADDITIONAL INCOME COMPARISONS

Figure 75: Reasons respondents have not taken a domestic trip in past 12 months, by household income,

February 2009

Figure 76: How economic downturn has affected travel plans within the U.S. in past 12 months, by household

income, February 2009

Figure 77: Types of vacations taken within the U.S. in past 12 months, by household income, February 2009

Figure 78: Modes of transportation used for traveling for vacation within the U.S. in past 12 months, by

household income, February 2009

Figure 79: Mode of transportation used, last vacation, past 12 months, by household income, July 2007-

September 2008

Figure 80: State visited, last vacation, by household income, July 2007-September 2008

Figure 81: Region visited, last vacation, past 12 months, by household income, July 2007-September 2008

Figure 82: Amount spent on last domestic trip, by household income, July 2007-September 2008

Figure 83: Airport services used in past 12 months, by household income, February 2009

Figure 84: Last year of foreign travel in past three years, by household income, February 2009

Figure 85: Type of accommodations used during foreign travel, by household income, February 2009

Figure 86: Mode of transportation used for foreign travel in past three years, BY HOUSEHOLD income,

February 2009

Figure 87: Last country, foreign travel in past three years, by household income, July 2007-September 2008

Figure 88: Domestic travel in past 12 months, by household income, July 2007-September 2008

APPENDIX: ADDITIONAL AGE COMPARISONS

Figure 89: Mode of transportation used during last domestic vacation in past 12 months, by age, July 2007-

September 2008

Figure 90: State visited, last vacation, in past 12 months, by age, July 2007-September 2008

Figure 91: Hotel amenities used within the U.S. in past 12 months, by age, July 2007-September 2008

Figure 92: Airline used, last vacation, past 12 months, by age, July 2007-September 2008

Figure 93: Essential elements of an enjoyable vacation, by age, February 2009

Figure 94: Vehicle rental, past 12 months, by age, July 2007-September 2008

APPENDIX: ADDITIONAL RACE/ETHNICITY COMPARISONS

Figure 95: Vacations taken within the U.S. in past 12 months, by race/ethnicity, February 2009

Figure 96: Airport services used in past 12 months, by race/ethnicity, February 2009

Figure 97: Hotel/motel frequent guest enrollment, past 12 months, by race/ethnicity, July 2007-

September 2008

Figure 98: Hotel/motel stay, past 12 months, by race/ethnicity, July 2007-September 2008

Figure 99: Type of lodging, for last vacation, in past 12 months, by race/ethnicity, July 2007-September 2008

Figure 100: Owns a camper/recreation vehicle, by race/ethnicity, February 2009

Figure 101: How economic downturn has affected travel plans within the U.S. in past 12 months, by

race/ethnicity, February 2009

Figure 102: Vacations taken within the U.S. in past 12 months, by race/ethnicity, February 2009

Figure 103: Types of vacations taken within the U.S. in past 12 months, by race/ethnicity, February 2009

Figure 104: Region visited, last vacation, past 12 months, by race/ethnicity, July 2007-September 2008

Figure 105: State visited, last vacation, in past 12 months, by race/ethnicity, July 2007-September 2008

Figure 106: Airline used, last vacation, past 12 months, by race/ethnicity, July 2007-September 2008

Figure 107: Type of lodging, for last vacation, in past 12 months, by race/ethnicity, July 2007-

September 2008

Figure 108: Essential elements of an enjoyable vacation, by race/ethnicity, February 2009

Figure 109: Modes of transportation used for traveling for vacation within the U.S. in past 12 months, by

race/ethnicity, February 2009

Figure 110: Number of domestic roundtrip(s) by plane for vacation/personal in past 12 months,

by race/ethnicity, July 2007-September 2008

Figure 111: Reasons for not taking a vacation in past 12 months, by race/ethnicity, July 2007-September 2008. 102

Figure 112: Hotel amenities used within the U.S. in past 12 months, by race/ethnicity, February 2009

Figure 113: Vehicle rental, past 12 months, by race/ethnicity, July 2007-September 2008

Figure 114: Domestic travel, for vacation, in past 12 months, by race/ethnicity, July 2007-September 2008

APPENDIX: ADDITIONAL GENDER COMPARISONS

Figure 115: Vacations taken within the U.S. in past 12 months, by gender, February 2009

Figure 116: Vacations taken within the U.S. in past 12 months, by gender, February 2009

Figure 117: Modes of transportation used for traveling for vacation within the U.S. in past 12 months,

by gender, February 2009

Figure 118: How economic downturn has affected travel plans within the U.S. in past 12 months, by gender,

February 2009

Figure 119: Reasons respondents have not taken a domestic trip in past 12 months, by gender,

February 2009

Figure 120: Types of vacations taken within the U.S. in past 12 months, by gender, February 2009

Figure 121: Amount spent on all transportation for last vacation, by gender, February 2009

Figure 122: Hotel amenities used within the U.S. in past 12 months, by gender, February 2009

Figure 123: Essential elements of an enjoyable vacation, by gender, February 2009

APPENDIX: TRADE ASSOCIATIONS

Abstract

A key driver of leisure travel is travel planning. Every year, millions of Americans use the internet and social networks of family, friends and colleagues to plan holidays designed to invite relaxation and pleasure, strengthen relationships and uncover new insights about the many lands and cultures that fascinate us.

Configurator tools such as those used by customers of the computer giant, Dell, to create an experience that fits their unique needs may provide a means by which to get more Americans involved in the travel planning process. It seems reasonable to conclude that increased planning will drive increased travel spending.

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