Americans are traveling with one eye on their destination and the other on their pocketbooks, according to a recently released study from TNS Travel & Transport…
Americans are traveling with one eye on their destination and the other on their pocketbooks, according to a recently released study from TNS Travel & Transport, part of TNS, one of the world`s largest market information groups. However, while travelers are being frugal, they are still on the go as often–and in some cases, more often than ever.
Business travelers are taking to the roadways, railways, and skyways as often as in previous years, but they are spending less per trip due to savvy shopping, stricter corporate rules, or both. Overall, business travelers have decreased their spending by nearly 30% since 2004. A year ago, business travelers spent an average of $995 per trip; now they spend $725 per trip. They have not downgraded their choice of hotels, but instead have found cost savings in less expensive air travel. Business flyers, accounting for 60% of business travelers, have reduced their travel costs from an average of $1,312 per trip in 2004 to $935, thanks to discount airlines fares, the downward pressure they then apply to the larger carriers, and the ease of gathering competitive travel information online.
In a business environment flooded with e-meetings, business travel is regaining importance, and oddly enough, the Internet is facilitating it. The Web is becoming a more-often turned to resource then corporate travel departments and travel agents. Half of business travelers check schedules, availability, rates, and other information on the Web (52%). And in fact, those who fly are more likely to book flights via the Web (36%) than through their corporate travel departments (25%).
It`s not that business travelers are dissatisfied with their corporate travel departments, explained Ruth Sharp, Vice President, of TNS Travel & Transport Group. Many say they use them to help with more complex or expensive trips.
Leisure travelers are also growing more reliant on the Web as a source of information. More than half (58%) gather information about their trip via the Internet. For those who fly, the majority book online (66%). Not only is the Internet playing a role in savings on planned leisure trips, but also stimulating new low-cost travel in general. Travel Web sites feature special promotional packages on their sites and also e-mail promotional packages to consumers, enticing them to take trips they might not have considered.
And it`s working. Leisure travel has increased to a new high, with nearly three-quarters of adults taking a trip in the past 12 months. Visiting friends or family and short getaways (trips less than four days) are the primary purposes. Overall, the number of trips per person has also risen slightly in the past year, up eight percent from 2.5 trips per year to 2.7. Despite the extra travel, the annual leisure travel budget per person has only risen two percent during the same time period, from $2,846 to $2,913.
Seemingly a contradiction given the headlines about airline bankruptcies, the number of leisure flyers is up, surpassing pre-9/11 levels. Although the airlines are struggling financially, actual enplanements rose seven percent in 2004.
Smaller airlines have grabbed the majority of the extra travel, said Sharp. Cheaper fares and tighter availability of award tickets from frequent flyer programs are pushing passengers toward the low-fare carriers for planned trips.
In fact, for the first time, membership in frequent flyer programs among leisure travelers is down, most dramatically among people who fly three or more leisure trips a year (65% from 73% in 2004). Sharp concluded, While difficulty redeeming mileage is a problem, low-fare carriers also have less robust frequent flyer programs, so it`s possible that fewer passengers bother to enroll.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
