Renewed enthusiasm for travel among consumers and no major obstacles on the horizon mean the U.S. travel industry will enjoy a good summer travel season in 2007, with leisure travel increasing 1.4% over…
Renewed enthusiasm for travel among consumers and no major obstacles on the horizon mean the U.S. travel industry will enjoy a good summer travel season in 2007, with leisure travel increasing 1.4% over last summer, according to the latest forecast from the Travel Industry Association (TIA).
Americans will take nearly 330 million person-trips in June, July and August 2007, a record high number. A person-trip is one person traveling 50+ miles, one-way, away from home. Business and convention travel will remain strong as well, increasing about 3 percent this summer.
“Underlying our optimism are relatively good economic fundamentals,” said Dr. Suzanne Cook, Senior Vice President of Research for the Travel Industry Association. “Higher gasoline prices are having somewhat of an effect on consumer spending power but continued positive spending patterns mean that the summer travel season will be typical of what we have seen in the past. However, we do expect some consumers to adapt to the economic realities by modifying their travel behavior in response to higher prices in many travel services.”
A number of studies – including TIA’s latest TravelHorizons survey conducted in partnership with YPB&R, and another study by AAA – show that the majority of consumers expect to continue to see high gas prices this summer, but they seem to be taking it much more in stride than in the past. Most notably, high gas prices have not yet dented driving habits.
However, higher prices – both for gas and other components of travel – mean that some Americans will modify their summer travel plans. Gas at around $3.00 a gallon will encourage a small number of Americans (11%) to make modest changes in their normal summer travel patterns. The real tipping point seems to be $3.50 a gallon gas, with nearly one-third saying they would cancel their trip if the national average reached that point.
“We remain a long way from $3.50 a gallon gasoline and we don’t expect to see this,” said Dr. Cook. “What we might see are modest attempts to economize on accommodations, food and activities but not much more.”
SUMMER 2007 HIGHLIGHTS
- Air travel is expected to be stronger than auto travel this summer, rising about 3% during the June – August season. Auto travel, however, will continue to account for about 8 in 10 summer leisure trips.
- 80% of those planning leisure trips will be visiting friends and relatives. Nearly as many are looking to engage in sightseeing.
- Other top activities include going to the beach, visiting a national park, visiting a mountain area, visiting a state park, visiting a city, going to all-inclusive resorts, taking a cruise or visiting a theme park.
- About 40% express interest in historic/heritage-focused activities or in fine dining/culinary or wine-related activities.
- Nearly as many want to take trips focused on arts/cultural activities, spas or gambling.
- 14% plan on taking golf trips.
According to RVIA, RVers remain positive about this summer with recreational vehicle owners planning to use their RVs more this spring and summer than they did last year and 48% say high gas prices won’t affect their plans.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
