The war in Iraq had little impact on traveler sentiment, with the Travel Industry Association of America`s (TIA) Traveler Sentiment Index down only…
The war in Iraq had little impact on traveler sentiment, with the Travel Industry Association of America`s (TIA) Traveler Sentiment Index down only slightly in second quarter 2003. The overall index now stands at 95.7, down from 97.1 in first quarter 2003. Consumers feel that travel is very affordable right now; however, they continue to be concerned about having enough money to take a trip, most likely an indication of their uneasiness over the state of the economy. Consumers also are very concerned about having the time available to travel, which may explain the slight drop in interest in taking a pleasure trip. The uncertainty created by these factors is probably contributing to the current late booking patterns seen throughout the travel industry. The survey took place April 3 – 13.
General consumer interest in taking pleasure trips declined slightly from 97.8 last quarter to 94.6 this quarter. However, this is still significantly above the all-time low seen in the fourth quarter of 2001 (80.3). Consumer perceptions of the affordability of pleasure travel is up 4.8 percent from last quarter to 117.6. This index is still holding strong, likely due to continued industry discounting during the months leading up to and including the war in Iraq.
With the economic uncertainty of today, travelers` perceptions of the ability to take pleasure trips based on their personal finances have not recovered since reaching a high of 108.2 in the second quarter of 2000. Still, this component of the TSI index-at 81.9-is up marginally over last quarter, and continues an upswing from fourth quarter 2002. The index for consumer perceptions of service quality received while traveling now stands at 103.9, up 3.3 percent from last quarter and slightly above average for this index.
Due to industry concerns about the effects of September 11, 2001, a question on travel safety was added to the TIA Travel Survey starting in the fourth quarter of 2001. This quarter, the Travel Safety Index-at 128.3-is at an all time high and up 28 percent from fourth quarter 2001.
The overall Traveler Sentiment Index for Baby Boomers (age 35 to 54) declined notably (5%), due to significant concerns among this segment about not having the time or money to travel. As a result, Boomers continue to feel less confident about the affordability of travel. Generation X and Y (age 18 to 34) travelers currently feel that travel is very affordable; however, their index measuring the ability to travel based on time available is at its lowest point-to-date.
When the overall Traveler Sentiment Index is examined on a regional basis, the Northeast shows the strongest gain over first quarter 2003, followed by the Midwest. The overall index for the South shows a substantial decline, while the West remains stable.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
