Peter Yesawich - 2007 Conference

National Travel Monitor™
Yesawich, Pepperdine, Brown & Russell
Copyright,
Copyright, 2007.
2007.
Incidence Of Travel
% U.S. Adults Who Took At Least One
Trip >75 Miles From Home Requiring
Overnight Accommodations
70%
66%
60%
50%
58%
52%
50%
49%
2002
2003
2004
40%
30%
20%
10%
0%
2005
2006
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Converging Forces
The Revolution
Changing social values
New consumerism
Demography
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Unique Visitors
(Top Ten Travel Sites, 2002-2004)
Source: NetRatings, 2004.
May-04
Apr-04
Mar-04
Feb-04
Jan-04
Dec-03
Nov-03
Oct-03
Sep-03
Aug-03
Jul-03
Jun-03
May-03
Apr-03
Mar-03
Feb-03
Jan-03
Nov-02
Oct-02
Sep-02
Aug-02
Jul-02
Jun-02
May-02
Apr-02
Mar-02
Feb-02
80000
70000
60000
50000
40000
30000
20000
10000
0
Dec-02
(In 000s)
Jan-02
# Unique Visitors
Monthly Trend Top 10 Travel Sites
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Sources Of Information Used
When Planning Travel
(Active Travelers Who Use Airlines/Hotels, 2006)
Travel agent
only
Internet only
Travel agent
and Internet
8% 8%
28%
56%
Neither travel
agent nor
Internet
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Trend Watch
The incidence of utilization of the
Internet to plan travel is not growing
The incidence of utilization to book
travel continues to grow
– At a much slower pace than observed
between 2002 through 2004
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Meta Search:
The Next Generation Of Search
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Online Shopping For Travel
CHECKED
PRICE
ONLINE
BEFORE
BOOKING
OFFLINE
40%
51%
45%
45%
Airfare
50%
55%
Hotel
2006
2006 National
National Travel
Travel MONITOR
MONITOR
As Prices Become
More Transparent,
Brand Clarity Becomes
More Important
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Travel: The New Way To Reconnect
Multi-household leisure travel
With family, extended family and friends
Practiced by 80% of leisure travelers
2006
2006 National
National Travel
Travel MONITOR
MONITOR
“Togethering”
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Emerging Travel Preferences
Been There, Done That
ON MY NEXT VACATION, I WOULD LIKE TO VISIT
SOMEPLACE I HAVE NEVER BEEN BEFORE
AGREE
76%
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Travel Intentions
PLANNING TO TAKE FEWER
LEISURE TRIPS THIS YEAR
YES
29%
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Time Poverty
Agree: I feel like I don
’t
don’t
have enough time.
%
41
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Share Of Clock
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Length Of Vacations
(2006)
Extended (5+)
23% _
Weekday (<4)
24%
Weekends (<4, Saturday stay)
53%
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Financial Challenges
Between 2000 and 2003
– Household debt grew at twice the rate
of household income
– Mortgage debt grew by 50%
– Credit card debt grew by 33%
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Value Is King
(Buying It Cheaper…Is Chicer)
A New
Attitude
Toward
Business
Preferred Carrier
PREFER LOW FARE TO LEGACY AIR CARRIER
WHEN BOTH ARE AVAILABLE
AGREE
58%
Vacation Deprivation
Agree: I feel like I don
’t have
don’t
enough vacation time.
47%
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Number of Vacation
Days Per Year
Italy
France
Germany
Great Britain
Canada
Japan
USA
42
37
35
28
26
25
13
Source:
Source: WTO,
WTO, 2005
2005
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Trend Watch
There are now twice as many adults interested
in visiting a spa on vacation as there are adults
interested in playing golf.
2006
2006 National
National Travel
Travel MONITOR
MONITOR
Meet The
New Consumer
2006
2006 National
National Travel
Travel MONITOR
MONITOR
79MM Boomers Start
Turning 60 This Year
“Millennials”
• Born between 1977/1998
• 75,000,0000 strong
• Second only to Boomers
Better Educated
28% of U.S. adults now have a bachelors
degree or more (compared to 20% in 1990)
58% of the class of 2008 will be female
More Affluent
Affluent Household As %
Of Total U.S. Households
25.90%
14.00%
11.30%
4.60%
HHI
HHI >$100K
>$100K
HHI
HHI >$150K
>$150K
2000
2010
More Diverse
Racial Group 2006
White
Hispanic
Black
Asian
Other
57%
21%
15%
4%
3%
2050
50%
24%
15%
8%
3%
Source:
Source: U.S.
U.S. Census
Census Bureau,
Bureau, 2006.
2006.
YESAWICH, PEPPERDINE BROWN & RUSSELL
www.ypbr.com