According to the Travel Industry Association of America`s (TIA) third quarter 2005 Traveler Sentiment Index, time available and interest in travel are…
According to the Travel Industry Association of America`s (TIA) third quarter 2005 Traveler Sentiment Index, time available and interest in travel are the greatest perceived barriers to consumers taking pleasure trips. Conversely, consumers are feeling more optimistic about their ability to travel based on affordability. The overall index remains virtually unchanged from last quarter`s rating; however, it is down nearly 10 percent from a year ago and is at its lowest point in the history of the index. The survey took place from July 5 – 15, 2005.
Compared to last quarter, declines were posted in three of the five indices measuring travel sentiment. Consumers are substantially more negative about having enough time to take a pleasure trip, with that index falling 5.6 percent, and their interest in taking a pleasure trip dropped 5.1 percent. Perceptions of the quality of service received while on a trip fell 2.4 percent.
On a more positive note, consumers reported more positive perceptions about the affordability of pleasure travel with that index increasing 10.2 percent over second quarter 2005. They were also more positive about having enough money to take a pleasure trip, with that index rising 7.8 percent.
Despite these improvements, American travelers still remain significantly more negative about the affordability of travel and their financial capability to participate than they did in earlier years, reflecting real travel price increases in recent months, noted Dr. Suzanne Cook, TIA`s senior vice president of research. These tendencies may be further exacerbated by additional pressures on pricing created by the recent hurricanes in the Gulf area.
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Due to industry concerns about the threat of terrorism, TIA began to measure consumer perceptions about travel safety starting with the fourth quarter 2001 (October) survey. While travel safety is not a component of the Traveler Sentiment Index, it can be indexed and seasonally adjusted by itself against the baseline of fourth quarter 2001. The travel safety index for this quarter is at 110.3, down 6 percent from second quarter 2005 and down 5.8 percent compared to one year ago.
When the overall Traveler Sentiment Index is examined on a regional basis, the Midwest and the West were the only two regions with gains in their overall indexes. Significant increases were seen in the Midwest in the affordability (+43.8%) and financial (+21.5%) indices from last quarter. The West also showed an increase of 16.3 percent in the affordability index. Despite a decrease in its overall index, the South did show increases in the financial index and the affordability index (+9.9% and +8.1%, respectively). The Northeast posted declines in all five indices.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
