Americans of the GenX generation (born 1965-1980) plan to travel more this fall than their older and younger generational counterparts according to a national survey by D.K. Shifflet & Associates. Almost one in six GenXers plan to travel for business at least once this fall compared to about one in ten for both Millennials (born after 1980) and Boomers (born 1946-1964). Boomer fall travel is down compared to last year while both GenX and Millennial travel is increasing.
“Boomer business travel is slowing as older business travelers appear to be handing over their business travel duties to their younger counterparts,” according to Chris Klauda, Vice President at D.K. Shifflet & Associates. “It is the GenX generation not the Millennials who are at the peak age for business travel. Increased revenue will come to travel marketers who can attract GenX business travelers to their destinations, hotels and attractions with the best offering.”
In 2012 D. K. Shifflet & Associates began producing quarterly travel intention reports to help marketers anticipate and plan for fluctuations in travel demand and spending. Winter 2014 intentions will be available in November.
Results based on a representative sample of the U.S. population (n=7612) interviewed in July 2013 by D.K. Shifflet & Associates Ltd. DKSA is located in McLean, VA and has, for the last 27 years, provided the Industry’s most complete consumer based travel data on U.S. residents and their travel worldwide.
Another area of concern for hoteliers is the European Union’s proposed carbon tax. Under this proposal, all miles covered by international flights entering and exiting European airports would be taxed, including those originating and arriving in the Caribbean. Since Europeans account for 18 percent of inbound travel to the Caribbean, this potential increase in airfares could negatively impact overall visitation. Fortunately, the International Civil Aviation Organization meets this autumn, at which point the E.U. and other countries hopefully will come to an agreement that works for all parties.
The overall outlook in the Caribbean is a positive one, with occupancy, ADR and profits all increasing. While growth is welcome news, hotels in the region still lag pre-recession levels of performance. There also are issues, such as airlift, rising expenses and increased competition from newly constructed properties. “The challenges that Caribbean hoteliers will face in the future are multi-faceted. If handled poorly, the recovery could be extended. However, if handled properly, all participants in the region should enjoy continued healthy increases in performance,” concluded Smith.
To purchase a copy of the 2013 Caribbean Trends® in the Hotel Industry report in PDF format, please visit the firm’s online store at www.pkfc.com/store, or call (855) 223-1200. The report contains several data tables that allow Caribbean hotel owners and operators to benchmark the financial performance of their property based on room-count and ADR groupings.
About PKF Consulting Usa, Llc
Headquartered in San Francisco, PKF Consulting USA, LLC (www.pkfc.com) is an advisory and real estate firm specializing in the hospitality industry. PKF Consulting USA is owned by FirstService Corporation (FSRV) and is a subsidiary of Colliers International. The firm operates two companies: PKF Consulting USA and PKF Hospitality Research. The firm has offices in New York, Boston, Indianapolis, Chicago, Philadelphia, Washington DC, Atlanta, Jacksonville, Tampa/Orlando, Houston/Dallas, Los Angeles, Bozeman, and San Francisco.