Changing Attitudes to Travel - US - October 2003

SUMMARY

In the past three years, Americans attitudes towards travel have changeddramatically. Tightened airport security, growing Internet booking options andexpanding loyalty programs are among the factors transforming the marketplaceand altering consumer behavior. This special report on the travel consumerclosely examines every important aspect of the travel marketplace today,focusing on airlines, hotels and car rental.

This report answers questions such as:

• Which consumers shop around for the best deal?
• Who would rather drive than fly?
• How do consumers feel about bringing children on trips?
• Which consumers would pay more for better airline services?
• Whos traveling the most?

Mintel uses unique and original consumer research, specifically aimed at helpingyou understand the recent changes in the travel consumer

TABLE OF CONTENTS

INTRODUCTION & ABBREVIATIONS

INTRODUCTION

OTHER RELEVANT REPORTS

DATA FOR REPORT

ABBREVIATIONS & TERMS

Abbreviations

Terms

EXECUTIVE SUMMARY

ECONOMIC CONCERNS

CHANGES IN TRAVEL PATTERNS

BUSINESS TRAVEL IN DECLINE

CHANGES IN AIR TRAVEL VIEWS

INTERNET CONTINUES TO ATTRACT TRAVELERS

AWARE AND CONCERNED, BUT READY TO TRAVEL

MARKET FACTORS

ECONOMIC INFLUENCES ON TRAVEL PLANS

• Figure 1 Travel expenditures in the U.S., at current and constant prices,1998-2003

Discretionary income

Person trips

• Figure 2 Number of domestic, inbound and outbound travel person trips, 1998-2003

TRAVEL TRENDS

Spur of the moment, closer to home

Shorter vacations

Airfare costs

Going the safe route

LIFE STAGES

• Figure 3 American population projections, by age, 1998-2008

Baby Boomers and Older Adults

INTERNET PENETRATION & ONLINE TENURE

• Figure 4 U.S. residential Internet connections, 1998-2005

Graph 1 U.S. residential Internet connections, dial-up and high-speed, 1998-2005

• Figure 5 U.S. Internet households with broadband connections, 1997-2005

THE TRAVELER

INTRODUCTION

FREQUENCY OF TRAVEL BOOKINGS

• Figure 6 Incidence of taking domestic and international flights, all respondentsvs Internet
• users, January-May 2003
• Figure 7 Travel arrangement booking frequency, August 2003
• Figure 8 Travel arrangement booking frequency, by gender, August 2003
• Figure 9 Travel arrangement booking frequency, by age, August 2003
• Figure 10 Travel arrangement booking frequency, by household income, August 2003
• Figure 11 Travel arrangement booking frequency, by employment status, August2003
• Figure 12 Travel arrangement booking frequency, by household size, August 2003

THE ONLINE TRAVELER

• Figure 13 Online travel arrangement booking frequency, August 2003

Graph 2 Percentage of travel items booked online, August 2003

Attitudes toward Internet booking

• Figure 14 Attitudes towards online travel booking, any travel booked online(net), 2001 and 2003

SUMMARY

FOREIGN & DOMESTIC TRAVEL, 2001-2003

INTRODUCTION

CHANGES IN DOMESTIC TRAVEL

Domestic air travel

• Figure 15 Frequency of vacation/personal/business domestic flights, 2001-2003

Reason for travel

• Figure 16 Reason for domestic travel, 2001-2003

Mode of transportation

• Figure 17 Mode of travel, last domestic trip, 2001-2003

Amount spent on domestic travel

• Figure 18 Amount spent in total, last domestic trip, 2001-2003

FOREIGN TRAVEL

Introduction

• Figure 19 Number of foreign plane trips in last three years*, June 2002-May 2003
• Figure 20 Foreign trips, year last taken, June 2002-May 2003

Foreign destinations, 2000-2002

• Figure 21 Foreign destinations visited, 2000-2002

Graph 3 Foreign destinations visited, 2000-2002

Type of lodging

• Figure 22 Type of lodging, most recent foreign trip, 2000-2002

Mode of transportation

• Figure 23 Mode of travel, last foreign trip, 2000-2002

Amount spent

• Figure 24 Amount spent, last foreign trip, 2000-2002

SUMMARY

ATTITUDES TO AIR TRAVEL

SECURITY AND SAFETY

• Figure 25 Passenger enplanements, U.S. carriers, June 2001-August 2003

Heightened security, increased delays

Low-cost carriers increasingly attractive

AIR TRAVEL PREFERENCES AND CONCERNS

• Figure 26 Air travel attitudes, August 2003
• Figure 27 Air travel attitudes, by gender, August 2003
• Figure 28 Air travel attitudes, by age, August 2003
• Figure 29 Air travel attitudes, by region, August 2003
• Figure 30 Air travel attitudes, by household size, August 2003
• Figure 31 Air travel attitudes, by number of flights booked, August 2003

Paying for additional services

• Figure 32 Those willing to pay more for extra services vs. the total sample,August 2003

FAMILY TRAVEL

• Figure 33 Family travel habits & concerns, August 2003
• Figure 34 Family travel habits & concerns, by gender, August 2003
• Figure 35 Family travel habits & concerns, by age, August 2003
• Figure 36 Family travel habits & concerns, by income, August 2003
• Figure 37 Family travel habits & concerns, by region, August 2003
• Figure 38 Family travel habits & concerns, by household size, August 2003
• Figure 39 Family travel habits & concerns, by number of flights booked,August 2003

Intergenerational travel

• Figure 40 Intergenerational travelers vs. the total sample, August 2003

SUMMARY

Air travel

Family travel

ATTITUDES TO BUSINESS TRAVEL

BUSINESS TRAVEL DOWNTURN

The disappearing business fare

Impact of changing business travel

• Figure 41 Business travel preferences & concerns, August 2003
• Figure 42 Business travel preferences & concerns, by age, August 2003
• Figure 43 Business travel preferences & concerns, by income, August 2003
• Figure 44 Business travel preferences & concerns, by household size, August2003

SUMMARY

ATTITUDES TO VACATION & TRAVEL PLANNING

Vacation habits

• Figure 45 Vacation habits, now compared to three years ago, August 2003
• Figure 46 Vacation habits, now compared to three years ago, by gender, August2003
• Figure 47 Vacation habits, now compared to three years ago, by age, August 2003
• Figure 48 Vacation habits, now compared to three years ago, by household income,August 2003
• Figure 49 Vacation habits, now compared to three years ago, by employmentstatus, August 2003
• Figure 50 Vacation habits, now compared to three years ago, by household size,August 2003
• Figure 51 Vacation habits, now compared to three years ago, by number of flightsbooked in the past year, August 2003

Attitudes to travel planning

• Figure 52 Attitudes to travel planning, August 2003
• Figure 53 Attitudes to travel planning, by gender, August 2003
• Figure 54 Attitudes to travel planning, by age, August 2003
• Figure 55 Attitudes to travel planning, by income, August 2003
• Figure 56 Attitudes to travel planning, by household size, August 2003
• Figure 57 Attitudes to travel planning, by employment status, August 2003
• Figure 58 Attitudes to travel planning, by number of flights booked in pastyear, August 2003

SUMMARY

Vacation travel

Travel planning

CONCLUSIONS

INTRODUCTION

THE ECONOMY AND TERRORISM

CHANGES IN APPROACH TO TRAVEL

GROWTH AND MARKET TURBULENCE

APPENDIX: TRADE ASSOCIATIONS

APPENDIX: RESEARCH METHODOLOGY

CONSUMER RESEARCH

Sampling & Weighting

Presentation & Definition

Further Analysis

TRADE RESEARCH

Informal trade research

Formal trade research

DESK & INTERNET RESEARCH

SOURCES

DEFINITIONS

FORECASTS

APPENDIX: WHAT IS MINTEL?

MINTEL PUBLICATIONS

MINTEL SERVICeS

Product retrieval

Retail audits

Tailored research

Global New Products Database

RESEARCH SUPPORT/CONSULTANCY/MIC

The Mintel Information Centre (MiC)

PR Research