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It looks as if consumers are starting to get the upper hand. A jittering economy is putting the pinch on the bottom lines of businesses and the home bank account, but the right to travel is embedded in the modern-day American ethos. However, instead of paying top dollar for the annual getaway, emboldened consumers are looking for travel deals.
In some cases it’s come down to a waiting game to see which side will flinch first, while in others it means shorter trips closer to home. Either way, people are traveling this summer, with a new savvy born from the opacity of the Internet.
For many travel trend watchers, this is turning out to be an unusual and unpredictable summer. And it’s only just begun. And what will happen between now and Labor Day seems to be anyone’s guess. How much will gas truly affect people’s habits? Or will consumer confidence make mom and dad severely cut back their plans?
Recently, Best Western International hosted its 4th Annual Leisure Travel Summit. It’s a yearly opportunity to check out the worlds of airline, automobiles and hotels all in one meeting. And this year’s edition focused on figuring out just what state the state of travel is in.
“We have never seen more activity in site than in last four months,” Carl Schwartz, Chief Travel Officer, Cheapflights.com, a travel search engine that helps locate the best deals on the Internet. The company works with all airlines and major travel suppliers except Southwest. “Doom and gloom news is pushing people to research more. People think if they look around they can find a better deal.”
And once these people are finding deals, they are going away. “From the numbers we’ve seen Americans want to go on vacation. They may have to adjust their plans because of economy and gas prices, but they will still go,” said Betsy Sell, Managing Director of Travel Products AAA, whose company’s members spend $30 billion a year on hotels.
She posited that many may take fewer, shorter trips, but travel is still a priority. Sell said that cruises in the Mediterranean seem to be picking up because major companies are subsidizing rising airfare prices.
Travel is slowing, although just a blip. Memorial Day travel was down one percent from a year ago, according to AAA. “It’s the first time in a long time it’s been down. We suspect gas will continue to go higher and don’t know when the pushback will come,” said Sell.
As of today the average price of gas in the United States is $4.069 per gallon. That’s more than a $1 per gallon jump since June 2007. Last year at this time the national average was $2.978.
Amy Graff, Best Western’s Family Travel Expert, agrees that families are taking shorter road trip instead of a single trip to multiple destinations. “One-tank-trip is the new buzzword. People are exploring their own backyards,” said Graff.
Overall, Best Western’s Dorothy Dowling, SVP Marketing and Sales, said that rate is continuing to hold although occupancy is down. To woo consumers, she said the company has amped up its marketing budget 25 percent.
“These days it is about people taking shorter trips rather than not traveling. It’s something we haven't seen before in recessions,” said Dowling, who has said international visitors staying at U.S.-based Best Western Hotels is up 40 percent. “We think we will continue to offer great value. There is no sticker shock at a Best Western. We are very strongly positioned with the family market.”
Cheapflights.com’s Schwartz said people are looking at more sites than ever these days to hunt down deals. On average he said they are searching out four or five sites, much higher than before this economic downturn. And they’re also not being loyal to specific travel dates. That opens them up to the ability of finding even better bargains.
“In the U.S. market even six months ago people were very tied to leaving and coming back on specific dates. People are now starting to base decisions based on cost rather than time frame. People will adjust a schedule for a deal,” said Schwartz.
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