The Travel Industry Association of America`s (TIA) Market Share Indicator report on MSI Online shows that the U.S. market share of international travel…
The Travel Industry Association of America`s (TIA) Market Share Indicator report on MSI Online shows that the U.S. market share of international travel declined in 2002 from nearly every top tourism generating market.
Although there is a worldwide trend for travelers to choose less expensive short-haul travel over long-haul travel, that doesn`t explain the loss of market share for the U.S. In fact, in 2002 long-haul travel from the top tourism markets declined only five percent, while overseas arrivals to the U.S. declined 12 percent over 2001. The United State`s loss of market share has been going on for ten years. Since 1992, U.S. market share of all world travel is down 42 percent.
The sluggish world economy and international turmoil pushed U.S. market share down markedly in the past two years, but that only accelerated a decade-long trend, remarked William S. Norman, president and CEO of the Travel Industry Association of America. This loss in market share underscores the importance of developing a sustained, multi-year campaign to promote the U.S. internationally as a travel destination.
European travelers have been choosing destinations such as Thailand, Tunisia, and Egypt over the U.S. Travelers from Asia and South America have been going to Europe instead of the U.S. The market share of Canadian outbound travel to Latin America increased, while the U.S. share of the Canadian market went down.
The forecast for 2003 is still bleak for Asian travel to the U.S., due to SARS; however, it looks somewhat brighter for European visitors, due to the appreciation of the Euro.
Highlights from TIA`s Market Share Indicator report:
United Kingdom
The U.S. market share of long-haul travel from the UK declined by a modest 0.8 percent in 2002 over 2001. This was the second smallest decline (after Mexico, -0.3%) among the 25 top markets. The U.S. still earns 26.8 percent of the British long-haul market, but this is the lowest market share in the past decade.
Japan
The U.S. market share for Japan declined by 7 percent in 2002 over 2001. The U.S. still earns more than one third of the Japanese long-haul market with an MSI of 34.1 percent, but this is the lowest market share in the past decade.
Brazil
The U.S. market share of Brazilian long-haul travel declined by 13.8 percent in 2002 over 2001. The U.S. still earns 37.9 percent of the Brazilian long-haul market, but this is the lowest MSI in the past decade. In fact, in 1997, the U.S. market share was nearly one half (49.6%) of the Brazilian long-haul market.
Germany
The U.S. market share for Germany declined by nearly 8 percent in 2002 over 2001. The U.S. now earns only 15.1 percent of the important German long-haul market after having earned more than one-quarter of German long-haul travel (25.8%) a decade ago.
South Korea
South Korea was the only top tourism generating country for which U.S. market share increased in 2002 over 2001. The U.S. market share grew 3.1 percent in 2002 to record a market share of 49.5 percent. This is not the highest MSI for Korea this decade though. In 1997, the U.S. earned an MSI of 57.1 percent of Korean long-haul travel.
TIA`s Market Share Indicator report (MSI) shows the United States market share of long-haul travel from 25 of the top tourism generating countries to the U.S.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
