Young Adults and Travel - US - June 2004

SUMMARY

Although much attention has been focused on the Baby Boomer generation in terms of the impact it has on the economy, the 15 to 34 age group is nearly as large as the Baby Boomers. While part of this group is still in school, the oldest edge is settling into its primary career years and family life. Many of those aged 15 to 34 are children of Baby Boomers, and as such, they have grown up in relatively comfortable financial circumstances, including travel with their parents. Their interest and willingness to travel is high, and the primary obstacles for them are time and money. As they start new jobs, they have limited vacation time, and while their incomes are on the lower end, they may have relatively higher disposable income than Boomers still with children in the home.

This group, which has also grown up with computers and the Internet, is savvy enough to seek out deals and specials, and before they settle down to have children, they have flexibility to travel last-minute for long weekends, maximizing their limited travel budgets and time. As they grow older and their incomes increase, they may become more constrained by family commitments. However, their interest in travel continues to grow, making this group a potentially lucrative one in the future.

In order to capitalize on this important demographic, marketers must have a detailed understanding of the its prevalent travel habits and attitudes. This report examines the travel habits and attitudes of people aged 15 to 34, a group currently made up of Generation X and the oldest members of the Echo Boom/Millennial generation. Why do young adults travel, and what makes them choose one method of transportation over another? How do they feel about long-distance driving, traveling with children, and last-minute trips? In addition, this report examines key market factors such as shifting demographics, leisure time, discretionary income and online travel booking.

TABLE OF CONTENTS

INTRODUCTION AND ABBREVIATIONS

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

EXECUTIVE SUMMARY

• Trend Towards Shorter Trips
• A Large and Growing Group
• Shifting Demographics
• Limited Means
• Computer-savvy
• Flexible and Willing
• Family Flights, The Convenience Compromise

TRAVEL MARKET - BACKGROUND

• Figure 1: Travel expenditures in the U.S., at current andconstant prices, 1998-2003
• Graph 1: Travel expenditures in the U.S., at current and constantprices, 1998-2003

DEMOGRAPHICS OF YOUNG ADULTS

• Generations
• Figure 2: U.S. population, by generations, 2003
• Graph 2: U.S. population, % share by generations, 2003
• Age and Gender
• Figure 3: U.S. population, total and by age and gender, 2003
• Race/Ethnicity
• Figure 4: U.S. population, by age, race and Hispanic origin, 2003
• Figure 5: U.S. population, percentage share by age, race andHispanic origin, 2003
• Education
• Figure 6: Educational attainment, by age, 2002
• Marital Status
• Figure 7: Age and marital status, 2002
• Figure 8: Age and marital status, percentage of total, 2002

MARKET FACTORS

• Shifting demographics
• Growth of population by age group
• Figure 9: U.S. population projections, by age, 2000-10
• Postponed, fewer marriages
• Figure 10: Estimated median age at first marriage, by gender,1968-2002
• Figure 11: Profile of engaged couples, 2002
• Postponed childbearing, fewer children
• Figure 12: Share of women who are childless, by age, 1976 and2002
• Graph 3 :Share of women who are childless, by age, 1976 and 2002
• Young adults living at home longer
• Figure 13: Young adults living at home, by age and gender,2000-02
• Shifting racial/ethnic composition of young adults
• Figure 14: American population projections, by race/ethnicity,1990-2010
• Figure 15: U.S. population, by Hispanic origin, 1990 and 2002
• Figure 16: Population by age and Hispanic origin, 2002
• Graph 4: Population by age and Hispanic origin, 2002
• Internal migration and mobility
• Figure 17: Total number of people moving principal residence, byage, 2002/03
• Leisure time
• Disposable income
• Figure 18: Households with disposable income, by age, 2000
• Presence of children
• Figure 19: Households with children, by age of householder, 2003
• Figure 20: Domestic travel of 18-34-year-olds, by presence ofchildren, January-September 2003
• Figure 21: Vacation destinations of 18-34-year-olds, by presenceof children, January-September 2003
• Convenience of online travel booking
• Figure 22: Total U.S. retail sales of Internet travel, at currentand constant prices, 1998-2003
• Graph 5: Total U.S. retail sales of Internet travel, at currentand constant prices, 1998-2003
• Figure 23: Travel booking on the Internet, by age, August 2003

TRAVEL HABITS AND ATTITUDES

• Introduction

INCIDENCE OF AND REASONS FOR TRAVEL

• Incidence of domestic and foreign travel
• Figure 24: Domestic and foreign travel, January-September 2003
• Figure 25: Domestic and foreign travel, by age, January-September2003
• Figure 26: Domestic and foreign travel by 18-34-year-olds, byhousehold income, January-September 2003
• Figure 27: Domestic and foreign travel by 18-34-year-olds, byrace/ethnicity, January-September 2003
• Figure 28: Domestic and foreign travel by 18-34-year-olds, byeducational attainment, January-September 2003
• Figure 29: Domestic and foreign travel by 18-34-year-olds, bymarital status, January-September 2003
• Reasons for short domestic trips in previous year
• Figure 30: Reasons for travel for trips of one to five nightsaway from home, January-September 2003
• Figure 31: Reasons for travel for trips of one to five nightsaway from home, by age, January-September 2003

ASPECTS OF LAST DOMESTIC TRIP

• Figure 32: Summary of domestic travel of 18-34-year-olds,January-September 2003
• Type of transportation
• Figure 33: Mode of transportation for last domestic trip,January-September 2003
• Figure 34: Mode of transportation for last domestic trip, by age,January-September 2003
• Figure 35: Mode of transportation for last domestic trip by18-34-year-olds, by race/ethnicity, January-September 2003
• Figure 36: Mode of transportation for last domestic trip by18-34-year-olds, by household income, January-September 2003
• Figure 37: Mode of transportation for last domestic trip by18-34-year-olds, by educational attainment, January-September 2003
• Type of accommodation for last domestic trip
• Figure 38: Type of accommodation on last domestic trip,January-September 2003
• Figure 39: Type of accommodation on last domestic trip, by age,January-September 2003
• Figure 40: Type of accommodation on last domestic trip by18-34-year-olds, by race/ethnicity, January-September 2003
• Figure 41: Type of accommodation on last domestic trip by18-34-year-olds, by household income, January-September 2003
• Number of nights away for last domestic trip
• Figure 42: Nights away on last domestic trip, January-September2003
• Figure 43: Nights away on last domestic trip, by age,January-September 2003
• Figure 44: Nights away on last domestic trip by 18-34-year-olds,by household income, January-September 2003
• Figure 45: Nights away on last domestic trip by 18-34-year-olds,by race/ethnicity, January-September 2003
• States visited
• Figure 46: Most visited states, all vs 18-34-year-olds,January-September 2003

DRIVING

• Distance willing to drive
• Figure 47: Acceptable time to drive for leisure trips, May 2004
• Figure 48: Acceptable time to drive for leisure trips, by age,May 2004
• Figure 49: Acceptable time to drive for leisure trips, all vs18-34-year-olds, by household income, May 2004
• Figure 50: Acceptable time to drive for leisure trips, all vs18-34-year-olds, by educational attainment, May 2004
• Figure 51: Acceptable time to drive for leisure trips, all vs18-34-year-olds, by presence of children, May 2004
• Why people drive
• Figure 52: Reasons for driving for leisure trip, May 2004
• Figure 53: Reasons for driving for leisure trip, by age, May 2004

TRAVELING WITH CHILDREN

• Preferred mode of transport when traveling long distances with children
• Figure 54: Preferred mode of transport when traveling longdistances with children, May 2004
• Figure 55: Preferred mode of transport when traveling longdistances with children, by age, May 2004
• Leisure travel and children
• Figure 56: Leisure travel and children, May 2004
• Figure 57: Leisure travel and children, by household income*, May2004

LAST-MINUTE TRAVEL

• Willingness for last-minute travel
• Figure 58: Last-minute travel, May 2004
• Figure 59: Last-minute travel, by age, May 2004
• Figure 60: Last-minute travel, all vs 18-34-year-olds, by gender,May 2004
• Figure 61: Last-minute travel, all vs 18-34-year-olds, byhousehold income, May 2004
• Figure 62: Last-minute travel, all vs 18-34-year-olds, bypresence of children, May 2004
• Incidence of and reasons for last-minute travel
• Figure 63: Reasons for last-minute travel, May 2004
• Figure 64: Reasons for last-minute travel, by age, May 2004
• Figure 65: Factors in last-minute travel, all vs 18-34-year-olds,by household income, May 2004
• Figure 66: Factors in last-minute travel, all vs 18-34-year-olds,by marital status, May 2004
• Figure 67: Factors in last-minute travel, all vs 18-34-year-olds,by presence of children, May 2004

OTHER ASPECTS OF TRAVEL

• Traveling companions
• Figure 68: Traveling companions, May 2004
• Figure 69: Traveling companions, by age, May 2004
• Figure 70: Traveling companions, all vs 18-34-year-olds, bygender, May 2004
• Figure 71: Traveling companions, all vs 18-34-year-olds, byhousehold income, May 2004
• Two key attitudes towards travel
• Figure 72: Attitudes towards travel, May 2004
• Figure 73: Attitudes towards travel, by age, May 2004
• Figure 74: Attitudes towards travel, all vs 18-34-year-olds, bygender, May 2004
• Figure 75: Attitudes towards travel, all vs 18-34-year-olds, byhousehold income, May 2004
• Figure 76: Attitudes towards travel, all vs 18-34-year-olds, byeducational attainment, May 2004
• Figure 77: Attitudes towards travel, all vs 18-34-year-olds, bypresence of children under 18, May 2004

SUMMARY

• Incidence of domestic and foreign travel
• Mode of transport and accommodation for domestic travel
• Last-minute travel
• Travel companions
• Family-oriented flights, low-fare 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
• Mintel Services
• Product retrieval
• Retail audits
• Tailored research
• Global New Products Database
• Research Support/Consultancy/MIC
• The Mintel Information Centre (MiC)
• PR Research