The Trend Newsletter
The Trend is a compilation of consumer trends and industry statistics delivered to subsribers monthly. For $120 per year (just $10 per month), you can keep your company apprised of the latest consumer and product travel trends. To subscribe, contact Paula Stephenson.
The Trend Sample Issue
This sample issue includes the top 13 stories from 2010 (based on member click-throughs.) A typical Trend newsletter will have 6-8 stories.
In this Issue:
- American Travel Trends (Sept. 2010)
- Mail vs. E-mail-What's More Effective (Oct. 2010)
- Americans Will Spend More for Excellent Service (July 2010)
- Key Trends in the LGBT Traveler (Oct. 2010)
- Americans Least Adventurous Vacation Travelers (Nov. 2010)
- Adventure Travel on the Rise (Aug. 2010)
- 65-Plus Population Growing Rapidly in the U.S. (June 2010)
- Leisure Travel Market Trends for 2011 and Beyond (Oct. 2010)
- Top Cities for Inbound Travel in 2009 (May 2010)
- Where Travelers Go for Advice (July 2010)
- U.S. Traveler Trends for 2010 (May 2010)
- Who Will Drive the Economic Recovery? (April 2010)
- Social Media Spans All Ages (May 2010)
American Travel Trends
U.S. travelers are using their smart phones for navigation, GPS functionality and to compare or even book travel, according to a new Ypartnership/Harrison Group 2010 Portrait of American Travelers. The survey finds that nearly two in 10 travelers have downloaded a travel-related application to their smart phone. Among those travelers, 47 percent have navigated a destination using the built-in GPS, 46 percent have searched for the latest information on flight schedules and delays, 29 percent have compared airfares or hotel rates and 28 percent have shared information or photos about their travel experience.
Some additional highlights from the 2010 Portrait of American Travelers include:
- 44 percent of all U.S. leisure travelers took at least one "family vacation" last year, with the incidence of family travel significantly higher than the incidence of households with children (roughly one-third)
- Approximately three in ten U.S. leisure travelers took a "last minute" vacation last year which, on average, were planned approximately six days in advance of departure
- Four in ten leisure travelers cite Canada as a destination of interest when thinking about traveling outside the U.S. for medical treatment.
- Only one in twenty leisure travelers who maintain a profile on any social networking site (46%) has made a travel decision based primarily on research or feedback received from a social networking Web site such as Facebook, MySpace, YouTube or Twitter.
Source: Travel Advance and YPartnership/Harrison Group
Mail Vs. E-mail-What's More Effective
A slight majority of adults (53%) say they are more likely to pay close attention to information they receive via postal mail than e-mail, according to Epsilon. Why do consumers prefer mail to e-mail? Here are some of the top reasons discovered in the survey:
- Ability to read information when it's convenient (79%)
- Ability to refer back to info when needed (66%)
- Can easily take mail to different places to read (46%)
There are also trust issues in why mail is preferred with:
- 36 percent of respondents saying information is more private when sent via mail
- 25 percent think a lot of online info can't be trusted
- 20 percent simply are more trusting of information sent by mail than e-mail
However, the type of information the consumer is receiving can affect their preference in how it is received. If information is personal or sensitive, such as health information, 43 percent prefer mail to just 9 percent who want e-mail. For travel information, 28 percent chose mail and 13 percent chose e-mail.
Source: Research Alert, September 17, 2010, Vol. XXVIII, No. 18.
Americans Will Spend More for Excellent Service
A majority of Americans report that quality customer service is more important to them in today's economic environment (61 percent) and will spend an average of 9 percent more when they believe a company provides excellent service. However, many business may be missing out on this opportunity according to the findings which were released in the American Express Global Customer Service Barometer, a survey conducted in the U.S. and 11 other countries.
While little more than a third of Americans (37 percent) believe that companies have increased their focus on providing quality service, 27 percent feel businesses have not changed their attitude toward customer service and 28 percent say that companies are now paying less attention to good service. Almost everyone agreed that service is important, but one in five feel they're taken for granted. Additionally, 91 percent consider the level of customer service important when deciding to do business with a company but only 24 percent believe companies value their business and would go that extra mile to keep it.
Key Trends in the LGBT Traveler
The Community Marketing, Inc. 4th Annual LGBT Community Survey received a record 40,000 participants this year from more than 100 countries. Below are some of the key findings from this survey:
- While more than half of respondents check Facebook daily, the difference between young and old was significant with 81% of younger gay men (age 18-29) checking Facebook daily compared to only 37% of older gay men (age 45-59).
- When asked, the major purchase gay men and lesbians put off due to the economy but intend to make in the upcoming year was a major vacation (33%).
- The study also showed that 58 percent of gay men and 66 percent of lesbians report living in a community that would not be classified as a large city
These findings can come in handy for anyone marketing to this niche. NTA members can click here for a copy of this report at no charge.
Americans Least Adventurous Vacation Travelers
Who are the most adventurous travelers on their vacations? According to some recent studies, it's not Americans. UK-based Opinion Matters, commissioned by Intrepid Travel, set out to see what nationality of traveler is the most adventurous. They polled 1,000 travelers in each of the following countries: U.S., Australia, Canada, New Zealand and the UK. Respondents were asked to reveal how likely they were to try a variety of holiday experiences including eating deep fried tarantula, sleeping in a hilltop village hut, going on safari, etc.
Here are a few of the findings:
- The least adventurous are U.S. travelers with the New Zealander being the most adventurous
- In the U.S., Californians were the most adventurous overall
- Who is most likely to eat the deep fried tarantula? New Englanders are twice as likely than the national average to indulge.
- When it comes to sleeping under the stars in a desert camp, people from Washington, D.C. were the least likely (26.5%) while San Diegans were the most likely (68.4%)
- New Englanders are most likely to haggle at local markets (60.5%) as compared to the more genteel Southerner (37.9%).
Adventure Travel On The Rise
TravelMole reports that many travelers still think of the adventure market as small potatoes but a new study from George Washington University, the Adventure Tourism Market Report, shows it's a US$89 billion business excluding airfare and gear/clothing purchases. The report also estimates that almost a quarter of those traveling from the three regions studied (North America, Latin America and Europe) took holidays involving adventure activities.
This report would refute any belief that adventure tourism is a small, niche market. Instead it is a thriving market ripe with growth potential for travel professionals who take advantage of the traveler's desire to include some adventure in their trip. So, what did the report consider "adventure"? They define it as travel featuring physical activity, nature-based and cultural experiences and they subdivided it into hard adventure, soft adventure and "other travel".
Looking to capture some new travelers-maybe adding a bit of adventure to the mix can help generate new dollars and a new set of travelers for your company.
65-Plus Population Growing Rapidly in the U.S.
Between 2010 and 2050, the U.S. population age 65 and older will change significantly, having a substantial effect on the country according to the U.S. Census Bureau. By 2030 all of the Baby Boomer generation will be senior citizens (65+) a time when most Americans quit work and begin to enjoy retirement.
In addition to increasing the overall size of the senior market, the older population is also changing in composition. In 2010, 90 percent of those over 65 are White. That number will drop to 81 percent in 2050. The proportion of Blacks aged 65 and over will rise 10 percent, up from 7 percent today. This Hispanic senior population will nearly triple, growing 20 percent from 7 percent currently, and the Asian population will triple from 2 percent today to 6 percent by 2050. The shifts in the 65-plus market will have savvy travel marketers reexamining their strategies to reach these new seniors with the products they're looking to buy.
Source: Research Alert, Vol. XXVII, No. 12. June 18, 2010.
Leisure Travel Market Trends for 2011 and Beyond
There is some new data on three very interesting leisure travel markets. First, a new Adventure Tourism Market Report prepared by the Adventure Travel Trade Association along with George Washington University and Xola Consulting, estimates that adventure travelers from North America, Europe and Latin America will take about 150 million trips in 2011. The value of the global adventure travel market is estimated to be $89 billion. Additionally, the study shows that these travelers are unique in that they want to travel and find adventurous experiences with little regard to financial circumstances, creating a resilient travel niche and a great market for emerging destinations.
Next on the list is the ever-increasing interest in U.S. travelers in medial tourism. The 2010 Portrait of American Travelers published by Ypartnership and the Harrison Group showed that 50 percent of leisure travelers are familiar with medial tourism, defined as travel to another country to receive medical, surgical or dental care, and one in six (17%) would consider it.
Looking a little farther into the future, billionaire Richard Branson's Virgin Galactic may be offering space tourism sooner than many thought. Virgin Galactic reports already collecting $45 million in deposits from more than 330 people who wish to reserve a seat on the six-person space craft.
Source: U.S. Travel Outlook, October, 2010.
Top Cities for Inbound Travel in 2009
The Office of Travel & Tourism Industries in the Department of Commerce released the states, cities and territories that benefited most from overseas travel to the United States in 2009. New York State was the most visited state for the seventh consecutive year even though visitation declined 5 percent, slightly less than the national average. Florida moved into second place for the first time since 2004 with a 1 percent increase in visitation. California moved to third position with Nevada, Hawaii, Massachusetts and Illinois following.
The most visited cities by overseas travelers in 2009 included New York City, Miami, Los Angeles, Orlando, San Francisco, Las Vegas, D.C., Honolulu, Boston and Chicago. Of the 20 cities reporting, 14 posted declines of which 10 were double-digit. The six cities with increased visitation, Atlanta and Tampa/St. Petersburg, posted the highest growth at 7 and 6 percent respectively.
Where Travelers Go for Advice
When booking travel, consumers are naturally most trusting of recommendations from those closest to them, friends and family (81 percent), according to Ypartnership. Where else to travelers turn for trusted advice?
The following is a list of the top information sources for travelers in 2010 and the percent of travelers who put "a great deal" of trust in these sources:
| Family/Friend Recommendations | 81% |
| Travel Guidebooks | 57% |
| Online Travel Agents | 54% |
| Online Advisory Sites | 53% |
| Company/Destination Site | 46% |
| Travel Agent | 46% |
| Media Coverage | 43% |
| Brochure | 39% |
| Blog | 33% |
| Travel Advertising | 27% |
| Facebook/Twitter | 19% |
| YouTube | 14% |
Source: Research Alert, July 16, 2010, Vol. XXVIII, No. 14.
U.S. Traveler Trends for 2010
PhoCusWright's most recent survey illustrates some of the top U.S. consumer traveler trends, taking a special look at traveler behavior and the trends shaping the various components of travel. While PhoCusWright's information does show recovery has begun, and should continue through 2010, these consumer behaviors will help travel companies in looking ahead to the second half of the year and beyond and discover ways to speed up recovery by addressing these trends.
The top trends from the study include:
- Recovery will be restrained. While fewer consumers plan to pull back on their travel in 2010, the percentage of those who plan to travel more did not increase significantly. Plus, those who are traveling are tending to spend less than they did in the past, making recovery a slower process for travel entities.
- It's quality, not quantity. Even though travelers took fewer trips in 2009 as compared to 2008, the trips they did take were longer. In fact, trips of four nights or longer accounted for 59 percent of all trips in 2009. This could be a trend that will continue into 2010.
- Planning is more focused. The number of sites used across the shopping and booking phase of planning for a trip has declined from 2008. Online travel agencies, however, did gain share among hotel bookers, but not with airline bookings.
- Upscale travelers want it all. Big-spender travelers, as you would imagine, are more likely than others to book luxury hotels, tours, etc. However, they are almost as likely to stay in midscale hotels too.
- Older travelers were hit harder and are slower to recover. Consumers 45 years of age and older pulled back on travel earlier than their younger counterparts and are less likely to travel in general. For younger travelers (under 35), their travel slowed more dramatically from 2008 to 2009 but they still had a higher incidence of travel than older travelers and are expected to recover faster as their incomes were not as adversely affected.
PhoCusWright's Consumer Travel Report, Second Edition
Who Will Drive the Economic Recovery?
According to a new report from PricewaterhouseCooper and Retail Forward, The New Consumer Behavior Paradigm: Permanent or Fleeting?, for the first time in the last three recessions, it will not be Baby Boomers at the heart of the economic recovery. The recession has taken a bite out of their savings and retirement accounts. This time it's the Gen Xers and Millennials who will be driving the recovery.
The report notes shoppers will be more deliberate and purposeful in their spending, as conspicuous consumption will give way to more conscious or practical consumerism. Rampant deal-seeking will be replaced by more purchase selectivity and the use of shopping techniques and tools discovered during the recession. Additionally, the affluent segment of Generation X and the young Generation Y will lead spending in the recovery.
When it comes to retirement and savings, Boomers have lost the most, which means they now have very different spending habits. Now it's the Gen X and Gen Y demos that have disposable income and they spend very differently. Among Gen Y consumers (those between age 18 and 27 for this report) just 25 percent say the economy has significantly changed their spending behavior, while 36 percent of Gen Xers say it has and 37 percent of Boomers say their shopping habits are significantly changed.
Social Media Spans All Ages
Nearly half of Americans aged 12 and older (48%) have a profile on a social network, doubling the proportion in 2008 (24%), according to Edison Research. The audience at every age level increased substantially during that period, with those aged 25 and older more than doubling.
Although Facebook established itself as the dominant social media outlet in 2009, Twitter was the most talked about. And, while the buzz has died down a bit, Americans' awareness of the site grew to 87 percent, putting it on par with Facebook which 88 percent of Americans are aware. The big difference-only 7 percent of Americans use Twitter where 41 percent use Facebook daily.
Here's a look at how the number of social networking profiles have grown from 2008 to 2009 by age: 
Source: Research Alert, May 21, 2010, Vol. XXVIII, No. 10.