Short Breaks - US - April 2004

SUMMARY

The short breaks market reached $102 million in 2003, nearly matching the previous high sales of 2000. After two years of turmoil, the travel industry is slowly working toward stabilization and recovery, and the short breaks market is well positioned to see the first growth. Even though the economy is not yet fully recovered, Americans continue to spend on leisure trips, many involving hotel stays and air travel. The Baby Boomer generation is aging into retirement, a time when they might take longer trips, but many consumer respondents to Mintel's research indicated a willingness to take short trips regardless of age or income. The children of the Baby Boomers are reaching adulthood as well, and they have grown up with short breaks, making this type of travel familiar and comfortable to them.

The challenges facing the market include the impact of low-cost carriers on the major airlines, two of which have launched their own in response (United's Ted and Delta's Song). These low-cost airlines are highly attractive to short break travelers, who can travel at a reduced cost from the major airlines. But there is a still a segment of the traveling public that tends to drive. They frequently pay for a hotel at the destination, which assists the recovery of the hotel industry, but the self-drivers need to be enticed back onto flights in order for the airline industry to make more progress towards recovery.

Mintel's exclusive consumer research shows that short breaks are popular throughout most demographic groups for a variety of reasons. While some respondents stated a concern about being away from work too long or spending too much money, there is also a group that takes both short and long trips, indicating a willingness to take short trips for fun, not just out of economic necessity.

As the economy improves and Americans begin to spend more on travel in general, Mintel expects the short breaks market to benefit as consumers continue to take short vacations, and will possibly spend more money in doing so, either by choosing more expensive options or by traveling more often.

A short vacation is defined as a domestic trip of one to four nights away from home with at least one night of accommodation (i.e. staying in a hotel or bed and breakfast). The analysis focuses mainly on commercial accommodation for hotels, motels and bed and breakfasts. In addition, where applicable, self-catering accommodations will be discussed (cabins, camping).

This report does not include inclusive tour packages or visits to friends and relatives that involve staying in the homes of friends or relatives, although this travel is discussed throughout the consumer section. In addition, this report does not cover day trips.

TABLE OF CONTENTS

INTRODUCTION AND ABBREVIATIONS

• Introduction
• Other Relevant Reports
• Definition
• Abbreviations & Terms
• Abbreviations
• Terms

EXECUTIVE SUMMARY

• Tentative recovery
• Accommodations recover more quickly
• Price and convenience dictate choice of suppliers
• The consumer: willing and ready
• Cautiously optimistic

MARKET DRIVERS

• Economic Influences
• Figure 1: Travel expenditures in the U.S., at current and constant prices, 1998-2003
• Shorter Leisure Trips
• Person Trips
• Figure 2: Number of domestic, inbound and outbound travel person trips, 1998-2003
• Discretionary Income
• Figure 3: Per capita PDI, in current dollars, 1998-2003
• Amount spent on domestic travel
• Figure 4: Amount spent in total, last domestic trip, 2001-2003
• Demographics
• Overview
• Figure 5: U.S. population projections, by age, 2000-2010
• Figure 6: American generations, 2000-2010
• Baby Boomers and Travel
• Travel Planning Online: Convenience and Cost Savings
• Figure 7: Total U.S. retail sales of Internet travel, at current and constant prices, 1998-2003
• Changing Modes of Transport For Vacations
• Figure: 8 Mode of travel, last domestic trip, 2001-2003
• Not Enough Time

MARKET SIZE & TRENDS

• Figure 9: Total U.S. retail sales of short breaks, at current and constant prices, 1998-2003
• Graph 1: Total U.S. retail sales of short breaks, at current and constant prices, 1998-2003
• Overview
• Figure 10: Sales of short breaks, segmented by transportation and accommodations, 2001 & 2003
• Transportation
• Figure 11: Sales of transportation*, at current and constant prices, 1998-2003
• Accommodation
• Figure 12: Sales of accommodation, at current and constant prices, 1998-2003

SUPPLY STRUCTURE

• Introduction
• Hotels and Motels
• Figure 13: Hotel rankings in the U.S., 2003
• Cendant Corporation
• InterContinental Hotels
• Choice Hotels International
• Best Western International
• Marriott International
• Hilton Hotels
• Independents/B&Bs
• Campgrounds
• Airlines
• Figure 14: Airline sales of short vacations in the U.S., 2001-2003
• Graph 2: Airline sales of short vacations in the U.S., 2003
• American Airlines
• Delta Airlines
• United Airlines
• Northwest Airlines
• Southwest Airlines
• Low-cost Carriers

ADVERTISING & PROMOTION

• Marketing Returns to the Travel Industry
• Hotels
• Cendant Corporation
• InterContinental
• Choice International
• Best Western
• Marriott
• Hilton
• The Top Airlines
• American Airlines
• Delta Airlines
• United Airlines
• Southwest

THE CONSUMER

• Introduction
• Frequency of short breaks
• Figure 15: Number of short breaks taken in previous year, February 2004
• Figure 16: Frequency of short breaks, by gender, February 2004
• Figure 17: Frequency of short breaks, by age, February 2004
• Graph 3: Frequency of short breaks, by age, February 2004
• Figure 18: Frequency of short breaks, by household income, February 2004
• Figure 19: Frequency of short breaks, by region, February 2004
• Figure 20: Frequency of short breaks, by marital status, February 2004
• Reasons for Travel
• Figure 21: Reasons for travel, January-September 2003
• Figure 22: Reasons for travel, by age, January-September 2003
• Figure 23: Reasons for travel, by household income, January-September 2003
• Figure 24: Reasons for travel, by race/ethnicity, January-September 2003
• Figure 25: Reasons for travel, by educational attainment, January-September 2003
• Flights used for short breaks
• Figure 26: Flights used for short breaks, January-September 2003
• Figure 27: Flights used for short breaks, by race/ethnicity, January-September 2003
• Accommodations for short breaks
• Figure 28: Accommodations for short breaks, January-September 2003
• Figure 29: Accommodations for short breaks, by gender, January-September 2003
• Figure 30: Accommodations for short breaks, by age, January-September 2003
• Figure 31: Accommodations for short breaks, by household income, January-September 2003
• Figure 32: Accommodations for short breaks, by race/ethnicity, January-September 2003
• Figure 33: Accommodations for short breaks, by marital status, January-September 2003
• Attitudes Towards Short Breaks
• Figure 34: Attitudes about short breaks, February 2004
• Figure 35: Attitudes about short breaks, by gender, February 2004
• Figure 36: Attitudes about short breaks, by age, February 2004
• Figure 37: Attitudes about short breaks, by household income, February 2004
• Figure 38: Attitudes about short breaks, by presence of children in household, February 2004
• Figure 39: Attitudes about short breaks, by marital status, February 2004
• Figure 40: Attitudes about short breaks, by region, February 2004
• Figure 41: Attitudes about short breaks, by urban/rural location, February 2004
• Reason for Short Trip
• Figure 42: Reason for short trip, February 2004
• Figure 43: Reason for short trip, by gender, February 2004
• Figure 44: Reason for short trip, by age, February 2004
• Figure 45: Reason for short trip, by household income, February 2004
• Figure 46: Reason for short trip, by presence of children under 18, February 2004
• Figure 47: Reason for short trip, by presence of children under 18, February 2004
• Figure 48: Reason for short trip, by regional location, February 2004
• Figure 49: Reason for short trip, by urban status, February 2004
• Conclusion

FUTURE & FORECAST

FUTURE TRENDS

• Economic Revival
• Increase in Travel Sentiment Index
• The Internet Continues to Attract Travelers
• Figure 50: Forecast of U.S. retail sales of Internet travel bookings, at current and constant prices, 2003-2008
• Shifting Generational Changes
• A Shift in the Airline Market
• The High Price of Gas

MARKET FORECAST

• Short Breaks
• Figure 51: Forecast of U.S. retail sales of short breaks, at current and constant prices, 2003-2008
• Graph 4: Forecast of U.S. retail sales of short breaks, at current and constant prices, 2003-2008
• Transportation
• Figure 52: Forecast of U.S. retail sales of transportation, at current and constant prices, 2003-2008
• Accommodation
• Figure 53: Forecast of U.S. retail sales of accommodation, at current and constant prices, 2003-2008
• Forecast Factors

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
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