Travel in 2009: It’s Not All Bad
The recession has certainly affected travel. But just what kind of influence are we talking about? Every day media reports that airlines continue to reduce routes and lay off employees, hotels clamber with dropping occupancy rates, and cruises continue to slash cabin prices to fill their ships. It’s easy to assume, given these facts, that people aren’t traveling anymore. But after taking a closer look, we’ve found that people just aren’t traveling THE SAME WAY anymore.
Let me explain.
Google and Compete just came out with a study that had some interesting findings for travel in 2009. They surveyed a sample of Compete consumers who had completed leisure travel in the past 6 months or planned to do so within the next 6 months.
One of the questions in the survey asked how much they planned on traveling for leisure in 2009. Surprisingly (to some), only 15% of the travelers surveyed said they were planning on cutting back on travel, and a much greater portion (85%) said they were planning on traveling the same or more this year.
So maybe it’s not a case of people not traveling period, but rather a behavioral shift that comes with a poor economy.
According to a recent report by the Associated Press, people are seeking out smaller, less expensive cities for destination travel and going back to the basics. So for instance, instead of taking a two week vacation to Europe or a 10 day ski trip to Aspen, families are seeking out National Parks and other more affordable, closer-to-home vacation spots.
Second tier cities like Tucson, AZ, Fort Myers, FL, and Charleston, SC are experiencing major growth as travelers take advantage of affordable domestic airfare and schedule shorter weekend trips. Many amusement parks are offering affordable family package deals that include accommodations, admission into park, and a free night’s stay.
In fact, travelers today are much more receptive to add ons, extras, or the use of awards/points/miles for travel. Value-adds will do a much better job of converting lookers into buyers when money is tight and travelers are looking for deals. In the Google survey, freebies, add-ons, and other non-rate incentives had wide appeal across the board.
In closing, it is clear that people will continue to travel - even in a bad economy. However, travel businesses that can adapt to their changing travel patterns in 2009 will emerge as leaders. There is still plenty of travel business to be had, it’s just becoming more important to understand your consumer and deliver deals that are in line with their new-found priorities and interests.
