Long Vacations - US - November 2007

SUMMARY

Abstract

The long vacation market is a subset of leisure travel, and follows similar trends in its health, present and future. This report discusses industry shifts enabling price increases, focusing on supplier activity and initiatives. Exclusive consumer survey analysis provides demographic and trending highlights, giving special attention to areas of potential.

Airfare, car rentals and hotels have risen in price, but not necessarily due to an increase in the number of vacationers. As a result, long vacations revenue has not grown substantially. The leisure travel market focuses marketing on weekend and last-minute getaways, while travelers are often forced to become self-reliant when booking longer trips.

The market is driven by consumers who combine personal interest with regional exploration, such as in culinary and adventure travel. Wealthy travelers are a major component of the luxury aspect of long vacations, such as resorts or timeshares. But low-wage earners also participate, taking fewer long vacations but spending more on each trip.

For the purposes of this report, a long vacation is defined as a domestic trip of at least five nights with one or more nights of paid accommodation. The analysis focuses on commercial accommodation for hotels, motels, and bed and breakfasts. In addition, self-catering accommodations such as cabins and timeshares will be discussed.

TABLE OF CONTENTS

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Resources used for The Consumer sections
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Leisure travel market healthy
• Long vacations not just for the wealthy
• Seniors and college age travelers key demographics
• Consumers struggle to take long breaks
• Internet best caters to shorter trips
• Luxury encourages longer stays
• Cruising revenues robust
• Hispanics a growing factor
• Continued improvement anticipated for long vacations
• Market Drivers and Future Trends
• Key points
• Consumers lack free time
  • Figure 1: Employees with access to paid vacation and paid holidays, 1999-2005
  • Figure 2: Paid-vacation days available to private sector employees, by average wage and geographical area, March 2005
• High travel costs take a toll
  • Figure 3: Travel Price Index and Consumer Price Index, 2001-07
• Fuel
• Airfare
• Hotel rates
• Rental cars
• Online booking on the rise
• Figure 4: U.S. broadband household ownership, 2000-10
• U.S. economy healthy but faces uncertain future
  • Figure 5: U.S. GDP, 2000-06
  • Higher-income households driving long vacations
  • Figure 6: Median household income, 1995-2006
  • Figure 7: Number of households per income group, 1999 and 2005
• Market Size and Trends
• Key points
• Market size
  • Figure 8: Total U.S. sales of long domestic vacation and leisure travel, at current and constant prices, 2002-07
• Market trends
• Culinary travel
• Gay and lesbian travel
• Eco tourism
• Consumer-driven reviews
• Timeshares
• Market Segmentation
• Key points
• Overview
  • Figure 9: Sales of long vacation travel, by transportation, accommodation and long cruises, 2005 and 2007
• Transportation
  • Figure 10: Sales of transportation* for long vacations, 2002-07
• Accommodation
  • Figure 11: Sales of hotel accommodations for long vacations, 2002-07
• Cruises
  • Figure 12: Sales of cruises of five or more days, 2002-07
• Supply Structure
• Key points
• Overview
• Hotels
  • Figure 13: World ranking--ten largest hotel groups, by number of hotels, 2006 and 2007
  • Figure 14: Forecast of U.S. sales of hotel room rentals, at current and constant prices, 2007-12
• Car Rental
  • Figure 15: Car rental sales, by company, 2004 and 2006
• Airlines
• Figure 16: Operating revenue of U.S. airlines, 2003 and 2006
  • Figure 17: Total operating revenue of U.S. passenger, cargo, charter and other airline, at current and constant prices, 2002-07
• Cruises
  • Figure 18: Operating revenue of top three cruise lines, 2005 and 2006
• Travel Agents
• Online travel suppliers
• Expedia, Inc.
• Travelocity
• Orbitz Worldwide
• Priceline
• Other online travel suppliers
• Traditional travel agencies
• American Express
• Carlson Wagonlit Group
• The Consumer--Who Travels
• Introduction
• Summary
• Number of nights away, amount spent on last trip
  • Figure 19: Domestic trips in the past year and length of stay, trended, 2002-06
• Length of stay on domestic vacations
  • Figure 20: Domestic trips in the past year, by average length of stay, by gender, age, race/ethnicity, household income, education level and presence of children, January-October 2006
• Reasons for long vacations
  • Figure 21: Reason for last long domestic trip, by gender, age, race/ethnicity, household income, education level and presence of children, January-October 2006
• Where long travelers choose to stay when away from home
  • Figure 22: Where stayed on last long domestic trip, by gender, age, race/ethnicity, household income, education level and presence of children, January-October 2006
• How people travel during long vacations
  • Figure 23: How traveled during last long domestic trip, January-October 2006
• The Consumer--Travel Planning and Method of Booking
• Summary
• Travel planning timeline
  • Figure 24: Timeline of travel planning for long vacations, by gender, October 2007
  • Figure 25: Timeline of travel planning for long vacations, by age, October 2007
  • Figure 26: Timeline of travel planning for long vacations, by household income, October 2007
  • Figure 27: Timeline of travel planning for long vacations, by race/ethnicity, October 2007
  • Figure 28: Timeline of travel planning for long vacations, by marital status, October 2007
• Method of booking long vacations
• How flights are booked
  • Figure 29: Method of flight booking, October 2007
• Car rental booking method
  • Figure 30: Method of rental car booking, October 2007
• Hotel booking methods
  • Figure 31: Method of hotel booking, by gender, October 2007
  • Figure 32: Method of hotel booking, by age, October 2007
  • Figure 33: Method of hotel booking, by household income, October 2007
  • Figure 34: Method of hotel booking, by race/ethnicity, October 2007
• The Consumer--Travel Habits and Attitudes
• Summary
• Average spend for trips
• Approximate spend for a trip, four days or longer
  • Figure 35: Average spend for long trip, by gender, October 2007
  • Figure 36: Average spend for long trip, by age, October 2007
  • Figure 37: Average spend for long trip, by household income, October 2007
• Alternate item purchased in lieu of vacation
  • Figure 38: Alternate purchase in place of trip, by gender, October 2007
  • Figure 39: Alternate purchase in place of trip, by age, October 2007
  • Figure 40: Alternate purchase in place of trip, by household income, October 2007
  • Figure 41: Alternate purchase in place of trip, by race/ethnicity, October 2007
• Market Forecast
• Long vacations market
  • Figure 42: Forecast of total U.S. sales of long domestic vacation and leisure travel, at current and constant prices, 2007-12
• Transportation
  • Figure 43: Forecast of U.S. sales of transportation for long vacations, at current and constant prices, 2007-12
• Accommodation
  • Figure 44: Forecast of U.S. sales of hotel accommodations for long vacations, at current and constant prices, 2007-12
• Cruises
  • Figure 45: Forecast of U.S. sales of cruises of five or more days, at current and constant prices, 2007-12
• Forecast factors
• Appendix: Trade Associations