Each year, Maritz Research Hospitality Group sponsors a national telephone poll of Americans to examine their travel behavior during the past year…
Each year, Maritz Research Hospitality Group sponsors a national telephone poll of Americans to examine their travel behavior during the past year. The most recent survey of 1,000 randomly sampled respondents was conducted in mid-October 2004. Results showed that travel patterns were quite similar to those reflected in a poll conducted one year earlier. The survey found that 78% of Americans took at least one trip for business or leisure within the past year. A year earlier, 76% reported taking at least one trip. Frequency of travel (e.g., average number of trips taken) also did not vary significantly from the previous year. Any observed differences are within the survey’s margin of error.
Travel Trends
The data show that, overall, air travel showed a slight increase in 2004. In 2003, 54% of travelers, representing 40% of the total U.S. population, took at least one trip by air. In 2004, 57% of travelers took at least one trip by air, representing 44% of the total population. Once again, frequency of air travel did not vary from year-to-year, with passengers typically averaging about two trips by air for each of the past two years.
An area of travel that experienced a notable increase was hotel use. In 2003, 53% took at least one trip that required an overnight stay in a hotel. In 2004, the percentage rose to 60%. Mid-scale hotels, with an average daily rate of approximately $70, were the most likely hotel of choice, with 45% of Americans spending at least one night in the past year at one of these properties. One-in-three (32%) spent at least one night in an upscale hotel with an average daily rate of approximately $130. Twenty-two percent (22%) stayed in a budget hotel with an average daily rate of approximately $45 per night, and 15% stayed in a luxury hotel with an average daily rate of $200 or higher.
Maritz also examined travel during the holiday season. Holiday travel patterns are usually important economic indicators. Nearly an identical number (25%) indicated an intention to travel for the holidays in 2004 compared to a year earlier. However, there was a significant difference from a year earlier. Travelers indicated an intention to spend 25% more on holiday travel than in 2003. In 2003, the median amount travelers planned to spend on holiday travel was $400. In 2004, the median amount was $500. According to the Travel Industry Association of America (TIA), the October 2004 Travel Price Index (TPI), which measures the seasonally unadjusted inflation rate of the cost of travel (air, lodging, gas) away from home in the United States, is only up 5.4% from the previous year. Therefore, the increased spending is attributable to more than simply inflation or fuel price increases.
Maritz was able to identify several factors that potentially explained the increase in planned holiday travel spending. A greater proportion of travelers planned to fly in 2004, rather than take their own cars. In 2003, 29% of travelers planned to fly for at least one of their holiday trips. The percentage that planned to fly increased to 39% in 2004. Maritz also examined those who opted for a holiday destination other than to stay with friends or family. While the percentage planning alternative holiday vacations did not rise significantly from the previous year (26% to 28% of total travelers), the amount travelers planned to spend on lodging increased from an average of $96 to $126 per night.
In summary, the data suggest that, even though there are not significantly larger numbers traveling in 2004, those who are traveling are more likely to fly, more likely to spend a night in a hotel, and more likely to spend a greater amount of money on the hotel in which they stay.
Security Concerns
The poll indicated that one-in-four travelers (25%) acknowledge the level of terror alerts in making a decision to travel. Female travelers are twice (31%) as likely to be concerned about terror alerts compared to their male counterparts (15%).
Seven percent (7%) bought travel insurance for protection against trip interruption. Older travelers (65+) represent the group most likely to purchase travel insurance.
Service Experiences
As a company, Maritz focuses extensively on customer service experiences. Within the travel poll, Maritz asked travelers to rate their most recent service experiences from poor to excellent on a five-point rating scale. Customers rated their service experiences with all levels of hotels, airlines, and rental car agencies. The results were as follows:
As the data indicate, the perceived service quality provided by airlines is comparable to that provided by budget hotels. It is interesting to note that 10%-16% of customers experience service ‘failures’ when renting cars, flying on airlines, or staying at budget hotels. While mid-market hotels may not consistently ‘delight’ their guests with service, they do have a relatively low service failure rate (6%).
While luxury hotels do a great job of providing service for the majority of their guests, they have a service failure rate at 4%, which is comparable to hotels in lower price categories. While a 4% service failure rate is relatively small, it may be of concern to hoteliers in this category that approximately one-in-25 guests who check into their hotels experience service failure. It is fair to assume, however, that service expectations for these properties are higher as well.
Other Travel Statistics of Interest
Twenty-nine percent (29%) of North Americans visited a gaming casino at some point within the past year. Among those who visited a casino, 16% described their opinion of legalized gambling as either ‘somewhat’ or ‘extremely’ unfavorable.
Eight percent (8%) of the total population used frequent flyer miles for a trip this past year. This represents 17% of all those who took at least one trip by air.
Nine percent (9%) of travelers take a pet with them when they travel.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
