Travel Adversely Affected by Economic Downturn
A recent poll conducted by Harris Interactive (R) shows that the financial situations of 48% of U.S. adults are worse than one year ago. What does this mean for the travel industry? Fewer people are taking vacations at all, and the ones who do are spending far less money.
When it comes to vacations, many people are bargain hunting. Instead of flying, they are taking cars. The travel behaviors for 2009 also indicate that fewer people will be traveling for business purposes.
Nearly half of the people surveyed say they intend to travel just as much as before, and 37% of consumers are less likely to travel due to the economic climate. About one-fourth of respondents intend to cut their trips short, and 40% will have a tighter budget for leisure trips.
How do vacationers intend to cut costs and still enjoy their leisure time? Three-fifths will choose less expensive accommodations, cheaper meals and less expensive activities.
Almost half claim that they will cut travel costs by vacationing closer to home or staying with friends/family at their vacation destination. Some will drive instead of flying.
A little over a third of people plan to vacation close to home or share costs by traveling with friends and other families.
Companies are changing their travel plans as well. Travel policies are being changed, and business trips are being reduced. Nonessential travel is being reduced or totally cut by some companies in order to reduce travel related expenses.
How long will these trends last? Harris Interactive will release research findings this fall to provide the travel industry with insight into the next twelve months.
