logo

 
Home » Articles » News » Transportation » Destination: anywhere
. . . . . .
May 27th, 2011 - Dean Anderson

Destination: anywhere


Experts explain current travel trends, with leisure trips comprising bulk of $704 billion industry


 

In the travel industry for 27 years now, Express Travel consultant Ann West says she’s always been one to try different marketing techniques to attract clients.

In the travel industry for 27 years now, Express Travel consultant Ann West says she’s always been one to try different marketing techniques to attract clients. She’s done mailers, website ads and referral programs. But recently she admitted the approach that’s been the most successful is one she has absolutely no control over: a healthier economy.

West says people who have held onto their travel dollars over the last two years are finally ready to put down money on bigger, better vacations.

The American Society of Travel Agents concurs. London, Rome, Paris and Cancun are America’s top four choices, according to a study released by the association earlier this year.

Western European destinations overall are the most popular, with six cities making the survey’s top 10 list. For Americans traveling abroad, Italy was the No. 1 destination, with the United Kingdom coming in second, and Mexico third.

In the first quarter, unemployment numbers had begun to trend downward, coming in nearly 0.5% lower than a year ago. Six of 10 leading economic indicators had risen by the end of April.

Analysts say by looking at those numbers, the U.S. economy is getting stronger. West, and fellow Oklahoma City travel agents, say the same thing based on their bookings.

Trisha Clark, a consultant at the family-owned Travel Agents Incorporated in Oklahoma City, specializes largely in leisure travel, and says her consultants are fielding more overseas inquiries, primarily in Europe.

Sept. 11 all but dried up American travel to Europe, once a popular perennial destination. A higher valued Euro compared to the U.S. dollar also helped keep Americans away, Clark says.

The last six to eight months have seen an increase in interest in Italy, Paris and London, she says. Three years ago, she says, junket trips were all the rage. Last-minute hot deals to Vegas or cheap stays in Cancun worked well in bringing in travelers.

When the economy tanked, they put their credit cards back in their wallets.

In response to travelers holding onto more of their money, resort destinations have had to incentivize travel more than before. Clark says destinations are offering package deals with rooms, golf and tours to give travelers more bang for their buck.

“You’re seeing a lot more people trying to find bargains because of the economy, but people are still traveling — whether it be small vacations or people planning in advance,” she says. “We’ve seen a lot more planning further out than we have in the past … sometimes a year in advance.”

According to the U.S. Travel Association, the travel industry accounts for $703 billion in spending and generates $113 billion in taxes. While business travel accounts for $214 million in spending, leisure travel comprises the bulk of the spending, coming in at $489 billion.

“I would say within the next year or so, you’ll see more people spending more money on quality, good vacations, versus trying to seek out as cheap as they can go,” Clark says. “When people do go cheap, they realize they’re getting cheap. The next time they go, they’re going to save up, plan more in advance and get a better quality vacation.”

Business travel accounts for $214 million in spending, leisure travel comprises the bulk of the spending, coming in at $489 billion.

Bonnie Hedges, owner of Bentley Hedges Travel, says Oklahoma has been a great place to run a travel agency over the years – good economy or bad.

“People have been making money, and they still spend it to some degree,” she says. “They’re not as apprehensive as people on the East and West coasts.”

West says nearly 50% of Express Travel’s clients are corporate entities.

“I think in the last few years, if you’re a good agent, you’re letting your clients know about the different credit cards and the different programs the airlines offer to get them benefits,” she says. “I think that’s important if you’re going to deal with corporate clients: to let them know what benefits are out there and available to them.”

 
  • Currently 3.5/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
 
 
Close
Close
Close