Top Ten Travel and Tourism Trends 2003: Judy L. Randall Dr. Larry D. Gustke

Top Ten Travel and Tourism Trends
2003
Judy L. Randall
Dr. Larry D. Gustke
Summary
2003 will be a year of reinventing the travel and tourism economy. It is now clear the
steady annual increases in travel revenues leading up to the year 2000 can not be
expected again in the near future. All segments of the travel industry (airlines, lodging,
attractions, etc.) have come to understand they must monitor and manage their
business differently in order to survive and thrive in the current economic climate and in
the foreseeable future as well. Bottom line overall revenues in 2003 are expected to be
flat compared to 2002 according to current research.
The Consumer Confidence Index continues to be weak, dropping from 97.8 in January
2002 to 78.8 in January 2003 (Source: Consumer Confidence Survey). And what’s more,
the traditional mainstay of the travel industry, business travel, continues to decline.
Meetings/conventions are now a challenge for travel marketers. Group travel shifts are
becoming somewhat clearer. And while leisure travel continues to grow in volume the
industry is experiencing a decrease in per-visitor spending. International travel is volatile
at the very best with fears of war, terrorism and disease making headlines in 2003.
Consumers report they have changed their travel behavior, generally traveling to less
exotic places closer to home and spending less on all trips. The good news is people
are definitely continuing to pursue leisure travel. The bad news is that they are making
different choices and plan to continue to spend less.
The travel industry is rising to the challenge by reinventing its marketing efforts,
avoiding wasteful “shotgun” approaches, focusing on core customer segments, and
adapting travel products, while recreating leadership.
The expected changes in the 2003 tourism economy will include new marketing uses of
technology, intense consumer research, and scientific economic tracking to ensure
maximum economic impact from each possible market segment. It’s becoming clearer
that the economics of tourism and travel can’t be dangerously left to chance.
Consumers in all segments report they seek safety, fewer hassles, more personal
comfort, and more nurturing travel experiences. Consumers are actively comparing
options, investigating and choosing wisely while putting a strong emphasis on value.
Randall Travel Marketing, Inc.

116 Malibu Road • Mooresville, North Carolina 28117
Phone 704-799-6512 • Fax 704-799-6514 • Email info@rtmnet.com • www.rtmnet.com
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The Top Ten Travel Trends For 2003__________________________________
The Top Ten Trends in Brief

1. Flat growth in overall travel and tourism revenues
2. Safety, personal comfort and value are primary travel concerns
3. Continued decline in business travel (which affects conventions/meetings
markets as well)
4. Sporadic increases in leisure travel – but changes in trip planning and choices
5. Increase in last minute travel (shorter travel planning periods)
6. Increased demand in technology for travel planning and buying
7. Increase in family travel
8. Reinvention of travel marketing organizations (airlines, lodging, attractions,
DMOs, etc.) – with a net result of more intense research of all travel
segments to help continue driving growth
9. Time poverty continues to drive travel and tourism behavior….time
becomes one of the most precious commodities for consumers
10. Leisure travelers looking for more intimate experiences….wanting to
escape and totally immerse themselves in a culture, destination, or
experience…..this becomes the next step in packaging…creating the “total
experience”
The Trends
Trend #1: Flat growth in overall travel and tourism revenues

U.S. Travel Revenues (international & domestic)
2000: $570.5 Billion
2001: $537.2 Billion (- 5.8%)
2002: $529.0 Billion (- 1.5%)
(Source: TIA)
U.S. Business/Convention Travel Volume (domestic)

1999: 139.2 Million Person Trips
2000: 136.9 Million Person Trips (-1.7%)
(Source: TIA)
U.S. Hotel/Lodging (domestic)

2000: occupancy rates = 63.7%
2003: occupancy rates = 59.0% (projection)
(Source: Smith Travel Research)
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• PriceWaterhouseCoopers reports that the current “breakeven” occupancy
point point for lodging is 47.8% (Source: PriceWaterhouseCoopers)
• Ernst & Young predicts that the hotel/lodging industry will rise to 60%
occupancy in 2003.
• American Express forecasts average booked rates at U.S. hotels in 2003 will
stay flat from 2002 levels or decline by about 1 percent, as hoteliers struggle
with relatively low demand and -- in some business travel destinations -- an
oversupply of rooms.
• Based on the travel and entertainment spending patterns of over 400
companies responding to American Express' 2000 - 2001 Survey of Business
Travel Management. The Survey found that the average company spends 45
percent of its T&E budget on air travel, 17 percent on lodging, 18 percent on
meals and entertainment, 10 percent on car rentals, 8 percent on
telecommunications and 2 percent on other costs.
U.S. Airlines
2000: passenger volume = +5%
2001: passenger volume = -8% (from 2000)
2002: passenger volume = -10% (from 2000) (revenues down 15% from 2000)
2003: passenger volume = flat (projection)
(Source: Air Transport Association)
• According to a Reuters report, 80% of executives attending an annual airline
finance conference predict another major airline bankruptcy in 2003. Furthermore,
they expect the current airline industry slump to linger until at least 2005.
• “For the full year, relative to 2000, fares were down twice as much as traffic –
15 percent and 8 percent, respectively – suggesting that a recovery in
demand should not be expected in the near term,” said ATA Chief Economist
David Swierenga. “For the industry, 2003 will be a critical year financially.”
Leisure Travel Volume (domestic)
1999: 727.2 Million Person Trips
2000: 742.4 Million Person Trips (+2.1%)
(Source: TIA)
International Visitors
2000: 50.9 Million
2001: 44.9 Million (- 11.9%)
2002: 44.6 Million (- 0.1%)
2000 2001 2002____
Canada: 14,648.00 Million 13,507.40 Million 13,622.30 Million
Mexico: 10,322.00 9,558.00 9,806.50
UK 4,703.00 4,097.25 4,158.71
Japan 5,061.40 4,082.66 3,976.51
Germany 1,788.00 1,313.76 1,305.88
France 1,087.10 875.85 941.11
(Source: TIA)
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Trend #2: Safety, personal comfort and value are primary travel concerns
• Many travel groups now require second (or upper) floor lodging rooms with an
interior corridor for safety purposes. RTM has noted some school groups are
paying for more expensive lodging in order to obtain the safety assurance of
interior corridors.
• “The war and international health concerns are having a dramatic effect on
corporations’ travel decisions,” said NBTA President Kevin Iwamoto. “Yet our
members tell us that economic conditions and corporate finances continue to
play a role in declining travel expenditures.” (Source: NBTA)
• Richard Bittenbender, Senior Credit Analyst at Moody's, said he sees no
recovery until several factors are mitigated — the fear of flying during wartime;
the slow economy; and the dramatic cutback in airline capacity. "People are
literally, physically afraid to fly," he said.
• In a recent study the Association of Corporate Travel Executives, nearly half of
the travel managers polled report that employees have expressed concern about
traveling abroad (Source: USA Today)
• In an August 2002 study conducted by Penn, Schoen, and Berland Associates
for the Tourism Business Roundtable, 15% of respondents reported they had
cancelled or postponed trips since 9/11 due to safety concerns.
Trend #3: Continued decline in business travel (which affects

conventions/meetings market as well)
• TIA forecasts a significant decline in business travel volume, with Americans
planning on taking 52.6 million business trips this spring, down 2.5 percent from
spring 2002. In fact, business travel for spring 2003 is expected to be more than
13 percent lower than the nearly 60 million trips in spring 2001. (Source: TIA)
• According to NBTA (National Business Travel Association) 74% of U.S.
businesses have reduced travel expenditures since 2000.
• 54% of respondents to a recent NBTA survey reported they expected their total
travel spending in 2003 to be down from 2002 spending levels. In addition,
recovery in the business travel industry is not expected until 2004 or later,
according to 74% of respondents. (Source: NBTA)
• Technology is also reducing the need to travel for business purposes. In a
recent study conducted by TIA, 47% of business travelers report “no reason to
travel “ (Source: TIA)
• For 2003, many corporations report to RTM that they have kept their travel budgets at
the same level for 2002 instructing employees to stretch their travel budgets by lowering
their per diem expenditures.
• Business travelers continue to report frustration with airline travel, as well as with the
overall hassle of traveling in general.(traffic, delays, etc.).
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• Business travel volume fell to 206.5 million person-trips in 2001, a 3.0 percent decline
from 2000. Overall, business travel comprises 21 percent of total U.S. domestic person-
trips. Half (50%) of all business person-trips are taken for general business purposes
(likely for meetings, presentations, consulting, sales, etc.). About one-tenth (13%) of
business person-trips are taken for the primary purpose of attending a convention or
seminar. More than one-third (37%) of business person-trips are made by those
traveling for a combination of business and pleasure. Thirty-four percent of business
person-trips include air transportation. About one in five (18%) business trips include
multiple adults from the same household; 8% include children. (Source: TIA)
• According to TIA, the South Atlantic is still the most prevalent destination for business
travel, drawing 25% of business travelers. The Pacific, East North Central, and West
South Central regions are the next most popular destinations, each drawing 12%-16%
of business travelers.
• As a result of declining business segment revenues, RTM predicts more hotel and
lodging properties will be seeking increased support from their local CVB/DMO. They
will be holding the CVB/DMO more accountable than ever. The smart CVB/DMO will
take this opportunity to partner more closely with their lodging constituents, who were
previously reluctant to share vital information and participate in cooperative promotions.
• According to an industry survey by Meeting Professionals International, corporate
meeting planners in North America and Europe report an expected 1.1%
decrease in spending on meetings in 2003 over 2002. However, the number of
events will increase slightly. (Source: Meeting Professionals International)
• The Air Travel Survey, a study by TIA, sponsored by the Bureau of
Transportation Statistics, examines the possible reasons for the continued
declines in air travel among travelers who have taken at least one air trip in the
past year. In 2002, 30% of all air business travelers reported traveling less by air
in the past 12 months. Nearly 80% of all air business travelers say their company
has one or more business travel policies in place. One-third said that one or
more of these policies were implemented in just the past year. Examples of these
new restrictions include limiting the class of air service used (14%), requiring
U.S.-only travel (31%), limiting travel per diems (19%), restricting the number of
employees traveling (25%), and requiring/recommending they drive instead of fly
(34%). Business travelers are turning to the Internet for the best airline ticket
prices, with almost half of all business air travelers personally purchasing their
ticket online at least once in the past year. (Source: TIA)
Trend #4: Leisure travel will show slow growth

• According to TIA, leisure travel has grown fairly steadily in the past two years,
despite the attacks of September 11, 2001 and the weakened economy. However,
its growth began to wane near the end of 2002 and has been even more subdued in
recent months. Americans plan to take 171.2 million leisure person-trips this spring,
down 1.6 percent from spring 2002. “In the short-term, leisure travel will continue to
be depressed as U.S. travelers are more reluctant to commit,” remarked TIA’s Dr.
Suzanne Cook. “They are postponing trip planning and waiting until the last minute
to book their trips. The concern is how long this trend will last, as now is the time
most Americans begin to make their summer vacation travel plans.” (Source: TIA)
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• According to TIA, of those leisure travelers who made changes to their plans
because of the economy, 43% traveled closer to home, 41% delayed planning for
their spring/summer trip, 37% took shorter trips, 28% avoided using air
transportation and 26% changed their hotel type in order to obtain a better rate.
The survey confirms recent leisure travel trends with travelers saying they are more
interested in travel by auto, RV or motor coach, staying within the U.S. and visiting
small towns and rural areas. These trends have become more prevalent in the past
18 months. In fact, driving trips increased 2 percent in 2002. (Source: TIA)
• Overall, increased travel to “feel good” or visits to patriotic destinations such as
Washington, D.C., Mount Rushmore, etc. (visitation to Mount Rushmore was up
15% in 2002). Also, there is more emphasis on visiting friends and relatives (up
12% in 2002 over 2001). (Source: RTM)
• 63 million more “person trip days” were taken in 2002 vs. 2001…but
expenditures were down 7% overall (Source: TIA)
• According to a recent study completed by Yesawich, Pepperdine &
Brown/Yankleovich Partners: 81% of leisure travelers want to spend their
holidays in destinations they have visited before.
67% want to go to the beach.
51% are interested in arts/architectural and historic sites.
46% are attracted by remote and untouched destinations.
45% prefer theme parks. (Source: Yesawich, Pepperdine & Brown/Yankleovich
Partners)
• One in five (19%) U.S. adults who are getting a federal, state, or local tax refund this
year plan to use some or all of it to take a pleasure or vacation trip. Generation Y or
X'ers (18-34 years) and Mature travelers (55+) are most likely to use some or all of
their refund on travel. (Source: TIA)
• Weekend travel is more popular than ever, with half of all U.S. adults--nearly 103
million--taking at least one weekend trip per year. Almost 30 percent of Americans
have taken five or more weekend trips in the past year and 35 percent of all weekend
travelers say they've taken their children with them on at least one weekend trip.
Compared to five years ago, day trips and weekend trips appear to be more popular
today than trips lasting about one week or longer. In fact, forty percent of weekend
travelers report they are taking more day trips and/or weekend trips (38%) today than
five years ago. Most weekend travelers (42%) make last-minute plans and select their
destination within two weeks of taking their trip. Thirty percent of weekend travelers
say they took advantage of discounts, coupons, or special offers while planning or
while on their most recent weekend trip. Visiting cities (33%) and small towns (26%)
are favored destinations for weekend travelers, followed by beaches (16%), mountain
areas (10%), lake areas (4%), state or national parks (3%) and theme or amusement
parks (3%). (Source: TIA)
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Group Travel becomes a more important market to target
• A recent study of the group tour market conducted by Premier Tourism Marketing
Publications indicates a strong trend towards improved results in 2003.
The firm surveyed 300 group travel planners across North America. When asked
about their group sales in 2002, 33% indicated an improvement over the previous
year, 55% the same or similar level of activity and 12% reported a declining
group sales trend. When asked to forecast 2003 group sales, respondents were
extremely bullish. 57% pointed to an increased level of booking activity for next
year, 41% similar or same level of sales while only 2% expected declining sales.
(Source: Premier Tourism Marketing Publications)
• However, another study by U.S. Tour Operators Association found that bookings
in 2002 were down an average of 8.5% over 2001. (Source: U.S. Tour
Operators Association.)
• In 2002, group travel accounted for 35% more of total profits for full-service
hotels than in 2000. “The group market is a more important segment to hotels
than it has ever been,” said Bjorn Hanson, head of PriceWaterhouseCoopers
hospitality division. (Source: PriceWaterhouseCoopers)
• More than seven out of ten (73%) travelers expect to spend more on their 2003
vacations than they did in 2002, reveals a recent online survey conducted by
Travel Holiday. (Source: Travel Holiday)
• Business is recovering for tour operators, but clients seem to be taking shorter
trips closer to home, according to the National Tour Association's 2002 Member
Needs Survey. The annual survey found that 42% of the membership did as
much or more business in the first three quarters of 2002 as in the same period
in 2001. And, 69% of the operators expected fourth quarter totals in 2002 to
exceed those of 2001. Reflecting changes in travel patterns in the business,
some 72% of NTA operators reported increased demand for travel closer to
home. (Source: Travel Advance and Travel Weekly Crossroads.com)
RV sales remain strong:
• THE RV INDUSTRY IS ENJOYING THE BEST OF TIMES. RVs are hot and getting
even hotter. At the recent yearly trade show of the Recreation Vehicle Industry
Association in Louisville, Ky., it was announced with great fanfare that the sale of
RVs jumped by as much as 18% in 2002, approaching a near-record figure of
300,000 units. Advance orders indicate 2003 will see a further rise. Safety concerns
over air and cruise travel, combined with an eagerness to remain within the borders
of the U.S., have motivated multitudes of Americans to turn to RV’s - these
elaborate machines that carry the comforts of home onto the highways and into
campgrounds of America. An RV offers all the safety, comfort and convenience of
home, combined with the incredible plus of almost infinite mobility. (Source: Travel
Advance and Arthur Frommer's Budget Travel.com, Jan.)
Cruise travel remains strong:
• Cruise Lines International Association (CLIA), representing 23 North American
cruise lines and 17,000 affiliated travel agencies, estimates 7.4 million North
Americans took cruises in 2002 and predicts approximately 8 million guests will
enjoy a cruise vacation in 2003. (Source: CLIA)
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Trend #5: Increase in last minute travel (shorter travel planning periods)
• Just as shoppers have come to count on prices plummeting right before
Christmas, travelers have learned the deepest discounts often can be enjoyed
by simply waiting until the last minute. Such procrastination frustrates hotel
managers by complicating planning and budgeting. It sometimes even forces
properties into a losing game of chicken when it comes to rates. And no matter
how hard the travel industry tries to encourage people to book earlier, "the
pattern of buying has changed forever," says Peter Yesawich, an Orlando-based
travel-marketing consultant. "We have a lot of people who don't know day to day
whether they'll have a job," said Henry Harteveldt, a travel analyst with Forrester
Research, an e-commerce consulting firm based in Cambridge, Mass. "They
simply can't afford to plan in advance." (Source: Travel Advance and Orlando
Sentinel.com/Business)
• According to the latest Travel Poll from the Travel Industry Association of America
(TIA), 64% of past-year leisure travelers planned at least one of their trips at the last
minute, that is, within two weeks of taking their trip. Among these last-minute
travelers, 26% planned all of their past-year leisure trips at the last minute.
The most popular reason for taking a last-minute trip is to visit friends or relatives
(39%). Other primary reasons for last minute trips include entertainment, such as
sightseeing or attending a sporting event (23%) or for personal reasons, such as
attending a wedding (19%). Last minute outdoor recreation trips are popular as well
(12%). Seven percent say their trip was for a combination of business and pleasure
purposes. Most last-minute trips are close to home and short in duration, with the
majority (69%) less than 500 miles, one-way, to the destination. Survey results are
based on a representative sample of 1,300 U.S. adults interviewed by telephone.
(Source: TIA)
• According to a survey by Travel Holiday readers, 68% report they are now more
prone to book vacations closer to departure. (Source: Travel Holiday)
• 86% of United States Tour Operators Association members report travelers are
now more prone to book vacations closer to their departure date. Passengers
who previously booked as much as a year in advance are now booking 30 days
out, while those who formerly booked up to six weeks in advance are now
booking two weeks prior to departure. (Source: USTOA)
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Trend #6: Increased use of technology for travel planning and buying
• The number of Americans using the Internet to book their travel is up 25% in
2002 over 2001, according to a Travel Industry Association study. And, while the
number of people using the Internet to plan their travel remained stable at 64
million last year, 39 million Americans actually used the Web to make travel
reservations. Some 70% of these travelers say they now do at least half their
travel booking online. Airline tickets continue to be the most frequently purchased
travel product online, reported by 77% of all online travel bookers, followed by
accommodations at 57% and rental cars at 37%. Details at 202-408-8422.
(Source: Travel Advance and TIA)
• Nearly 47% of frequent business travelers use online services, and a third of
frequent leisure travelers - those taking five or more trips a year - log onto the
Internet, according to the survey by the Travel Industry Association of America
released this month. In general, 19 percent of adult travelers use online services,
compared with 6 percent of the U.S. population overall, the survey reported.
• Some 20% of hotel bookings will take place via the Internet by 2005, up from
about 9% this year, according to a PhocusWright report. In 2002, online hotel
bookings were expected to increase approximately 49% compared with 2001,
and generate $6.3 billion in sales, according to the study, "Hotel & Lodging
Commerce 2002-2005: Distribution Strategies and Market Forecasts." The
Internet research firm said the push to the Web comes as hoteliers seek to drive
sales via third-party sites in the face of some of the lowest occupancy rates in
years. Still, this growth has come at a cost to hoteliers in terms of lowered rates
and loss of control over their clientele. The share of rooms booked by traditional
travel agencies is predicted to be 18% in 2005, down from 21% last year.
(Source: Travel Advance and Travel Weekly Crossroads.com). Clearly, last-
minute decisions and online sales are clearly outdistancing the convenience and
service provided by the traditional travel agency.
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Trend #7: Increase in family travel
• According to TIA, one in three (34%) of U.S. adults have traveled to a family
reunion in the past three years while one in five (22%) U.S. adults report
they’ve taken a trip to attend a family reunion in the past year alone. The most
popular locations for family reunions are someone’s home (52%), city or town
parks (12%) and national/state parks or forests (6%). (Source: TIA)
• One in five trips in the U.S. (23%) include children under 18. Most trips with
children are for leisure (87%), nearly half of which are taken to visit friends or
relatives. About 42 % of overnight trips with children include a hotel stay and
popular trip activities with children include shopping (37%), outdoor activities
(22%), historical places/museums (15%), and theme/amusement parks
(15%). More than half of trips with children (60%) are taken by Baby Boomers
age 35-54. (Source: TIA: Domestic Travel Market Report, 2002 Edition)
• Programs for children are popular with family travelers. Nearly 60% of family
travelers use children's services offered on the road but special kids’ meals
(41%) and hotel discounts (30%) are the most popular amenities, followed by
video and other games (22%), supervised activities (13%) and baby-sitting
(6%). Among travelers taking children along, those aged 35-44 had the
highest use of children's services (71%), while travelers aged 65+ had the
lowest (28%). Travelers with family incomes of $50,000+ have the highest
use (67%), while travelers with family incomes of <$20,000 have the lowest.
(30%). (Source: TIA)
• And, if you didn’t already know, married couples are travelers. Married
households represent the largest group of travelers with 64% of all trips, while
(surprisingly to some) single, never married households took only 19%.
(Source: TIA: Domestic Travel Market Report, 2002 Edition.)
• Parents and grandparents are popular travel companions for adult travelers
taking outdoor vacations such as camping, hiking, biking. For example, 22% of
travelers between 18 and 34 took their parents and/or grandparents on their most
recent soft adventure vacation. (Source: TIA: Adventure Travel Report.)
• Family travel is growing. According to a recent report by the Travel Industry
Association of America, family travels accounts for 74% of all vacation travel in
the U.S.. A family vacation is viewed as critical to a family’s well being. A
whopping 69% of families take vacations using their own vehicles, while 20%
travel by air. And how did they plan their trip? Take a look:
• 34% reserved a trip on the Internet
• 28% used a travel agent
• 45% booked directly with airline, hotel or car rental company
• 24% of family vacationers booked directly with a city or state tourism office
• Male and female head of household made joint decisions about where to
go
• Women collected the travel information
• 23% decided on a destination in the same week they traveled
• 55% decided within a month
• 78% decided within three months
(Source: Meredith Travel and TIA)
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• A focus group study conducted by the Wisconsin Department of Tourism
looked at the roles parents and children play in vacation planning. The
groups consisted of parents age 35 to 45, with a minimum household
income of $40,000 and children ages 9-12. The following is a summary of
the findings:
o Respondents indicated that word-of-mouth recommendations
strongly influence their travel choices. Parents look to friends and
co-workers and children talk to friends about exciting places and
strongly suggest (pester?) their parents into taking them there.
o Children have strong influence but little decision-making power over
where their families go on vacations. Understandably, parents
shape travel plans around children’s interests and tolerances.
o At their destination, children have more influence on what activities
the family does. Parents strike compromises to satisfy everyone,
including their youngest and oldest children.
o When asked about the attributes making for a good family vacation,
indoor pools were mentioned by both groups more often than any
other activity, characteristic or experience. Indoor pools were
praised for solving bad-weather problems, and importantly, there is
no extra cost involved.
o Among highly rated children’s attractions children were indoor and
outdoor water parks, video arcades, go-carts and bigger (more
thrilling) amusement park rides.
o Adults’ and children’s interests reflected their outdoor activities and
interests. Both said that they enjoyed hiking, biking, fishing,
canoeing, camping, tubing, rafting, downhill and cross-country
skiing and snowmobiling.
o Children were interested in faster-paced vacations than adults, who
emphasized the need for a mix of active and restful activities. The
key seems to be to promote a balance of activities to please
everyone.
o Regarding Internet use, adults indicated that they did find their
computers a valuable tool. They stressed that web pages should
include maps, mileage and drive time to and from major cities.
Price range keys are another feature that they preferred. Toll-free
numbers need to be displayed prominently so users can speak with
an individual who can add a personal touch to their web browsing.
(Source: Wisconsin Department of Tourism)
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Trend #8: Reinvention of travel marketing organizations (airlines,
lodging, attractions, DMOs, etc.) with a net result of more
intense research of all travel segments and offering
preferred products
• RTM predicts 2003 will see many of the standard operating procedures of the
travel industry changing dramatically as organizations from airlines, to the
lodging industry, and destination marketers shift their thinking and their efforts
to better match consumers’ new travel behaviors.
• Look for local tourism businesses (lodging, attractions etc.) to appear at the
CVB/DMO doorstep demanding accountability and increased reporting.
Declining revenues will drive area businesses to demand more from the
CVB/DMO. RTM has seen this process occurring in many markets around
the country and the CVB/DMO is often unfairly blamed for the declining travel
market. The CVB/DMO must be proactive in reporting their strategic plan and
results measures.
• Lodging properties have often given little marketing attention to the leisure
market while focusing sales efforts on business, groups and convention
markets. In the current economy many lodging properties are quickly
developing new strategies for leisure marketing. Packaging is the answer
and the CVB/DMO should be driving that effort.
Trend #9: Time poverty continues to drive travel and tourism

behavior…. time becomes one of the most precious
commodities for consumers
• In the U.S., workers spend about 10% more time on the job than they did a
decade ago. European executives and non-unionized workers face the same
trend (Source: The Futurist www.wfs.org)
• In this high-pressure environment, single workers and two-income couples
are increasingly desperate for any product that offers to simplify their lives or
grant them a taste of luxury – and they can afford to buy it. (Source: The
Futurist www.wfs.org)
• The implications of all this for the travel and leisure industry is more demand
on technology, virtual tours, confirmations via technology of product quality.
Travel marketers who become “cruise ship on land” and offer total trip
planning will seemingly have an edge on the others. Catering to the
customer’s need for convenience and ease may become more important than
ever before. Packaging is an excellent solution to this dilemma!
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Trend #10: Leisure travelers are looking for more intimate

experiences…. wanting to escape and totally immerse
themselves in a culture, destination, or experience…this
becomes the next step in packaging…creating the “total
experience”.
• The Inn on Biltmore Estate in Asheville, North Carolina offers the Vanderbilt
Package. The package shares the gracious comfort and relaxed hospitality
that George and Edith Vanderbilt extended to their own guests. This package
includes accommodations on the estate, valet parking, breakfast daily in The
Dining Room, dinner daily in either The Dining Room or the Bistro (located in
Biltmore Estate’s Winery), afternoon tea daily, length–of–stay daytime
admission to Biltmore House, Gardens, and Winery, and gratuities for valet,
bellmen, and housekeepers. Server gratuities for meals offered as part of the
package are also included. (Source: www.biltmore.com)
• Consumers want simplicity in their spa experiences…they are looking for spa
experiences that yield results, even if it means a more traditional spa
experience (i.e., facials, basic massage). Clients are becoming more
knowledgeable about the range of spa offerings but returning to basics. Some
regional/location specific treatments noted include: Chocolate treatments at
Hershey Spa, Grape seed mud wrap—Health Spa Napa Valley, Saguaro
Blossom Polish - Four Seasons Scottsdale-- (Source: International Spa
Association 2002 Study)
• Diamond Dreams of Ft. Myers, Florida offers adult baseball fantasy camps.
One of their offerings…a recreation of the October 1st, 1903 first ever World
Series between the National Leagues' Pittsburgh club and the fledgling
American Leagues' Boston team. Two teams will be fielded sporting the
authentic 1903 uniforms of the Pittsburgh and Boston clubs to re-play this
original World Series match up. The exact centennial of the first pitch of that
first World Series will be recreated at precisely 3:00 pm, Wednesday October
1st, 2003. Each participating fantasy camp player will represent the
corresponding player (chosen by position) from the two original World Series
teams. Current and retired major league players will participate (Source:
www.baseballfantasycamps.com).
• Shaker Village of Pleasant Hill near Lexington, Kentucky offers a bed and
bridle package where visitors can bring their own horses, stay in authentic
Shaker lodging, have access to the historic sites and all Shaker style meals
are included. (source: www.shakervillageky.org).
• Mepkin Abbey near Charleston, South Carolina is a monastery of Trappist
monks where visitors can go and live the silent lifestyle of a monk for a day or as
long as they like. “Retreatants”, as overnight visitors are called, stay in the
monastery, eat the same vegetarian diet and observe the same silence as the
monks. Retreatants may attend any and all prayer services in the Abbey
Church. (Source: www.mepkinabbey.org).
Page 14
Other Interesting Data:

Total Domestic U.S. Person-Trips, 2001 1017.8 Million
Purpose of Trip
Leisure Travel (Pleasure, Personal) 76%
Business/Convention 13%
Combined Business/Pleasure 8%
Other 3%
Modes of Transportation Used
Auto, Truck, RV 74%
Airplane 17%
Bus 2%
Train/Ship/Other 4%
Rental Car (Primary Mode) 3%
Top Activities for Domestic Travelers
Shopping First
Outdoor Activities Second
Visiting Museums and/or Historic Sites Third
A person-trip is one person traveling 50 miles (one way) or more away from
home and/or overnight. A trip is one or more persons from the same
household traveling together.
Source:Travel Industry Association of America; Travelscope®
Travelers often pay higher taxes than other retail consumers to pay for projects that benefit a local area but for
which the local citizens do not want to pay. National averages for travel taxes are:
Airline 9% plus $1 for each domestic
(Domestic)
segment
(International) $12 international arrivals fee,
$12 international departure fee,
$6.50 Customs Service user
fee, $6 Immigration and
Naturalization Service user fee,
$1.45 Agriculture Dept. fee
Airport $3 passenger facility charge in most cities
Gas $0.44 a gallon
Restaurant 7.29%
Hotel 12.36%
Auto Rental
8.4%
Base Sales Tax
Airport Concession Fee 9.75%
Off-Airport Fee (Rate) 7.91%
Off-Airport Fee (Fee) $2.43
Per Rental Surcharge (Rate) 3.17%
Per Rental Surcharge Fee $6.56
Per Day Surcharge (Fee) $1.60
Page 15
Top Ten State

Page 16
Top activities and destinations for travelers.
According to RTM research and further documented by Travel Industry Association of
America, the activities participated in by U.S. resident travelers included the following:
• Shopping (33%)
• Outdoor (Camping, hiking, biking, etc.) (17%)
• Historical Sites/Museums (14%)
• Beaches (10%)
• Cultural Events/Festivals (10%)
• National/State Parks (10%)
• Theme/Amusement Parks (8%)
• Nightlife/Dancing (7%)
• Gambling (7%)
• Sports Event (6%)
• Golf/Tennis/Skiing (4%)
Additionally, TIA reports that visitors planned the following activities after arriving at their
destination:
• Restaurant (48%)
• Shopping area (45%)
• Museum or Exhibit (26%)
• Sightseeing Tour (24%)
• Movie (16%)
• Theme Park (15%)
• Religious Service (14%)
• Live Theatre or Other Performance (14%)
• Festival or Parade (13%)
• Other Activities/Attractions (24%)
(Source: TIA)
Page 17
The World in a Snapshot
If we could shrink the earth’s population to a village of precisely 100 people, with all the
existing human ratios remaining the same, it would look something like the following:
• 57 Asians
• 21 Europeans
• 14 from the Western Hemispheres, both north and south
• 8 Africans
• 52 would be females
• 48 would be males
• 70 would be non-white
• 30 would be white
• 70 would be non-Christian
• 30 would be Christian
• 89 would be heterosexual
• 11 would be homosexual
• 6 would possess 59% of the entire world’s wealth and all 6 would be from the U.S.
• 80 would live in substandard housing
• 70 would be unable to read
• 50 would suffer from malnutrition
• 1 would be near death
• 1 would be near birth
• 1 (yes only 1) would have a college education
• 1 would own a computer
When one considers our world from such a compressed perspective, the need for
travel, acceptance, understanding and education becomes glaringly apparent.
World Population
• China 1,273,111,290
• India 1,029,991,145
• United States 278,058,881
(Source: U.S. Census Bureau)
Page 18
World's Top 10 Tourism Destinations, 2001

Based On Number of Arrivals (in Millions)
France 76.5
Spain 49.5
United States 45.5
Italy 39.0
China 33.2
United Kingdom 23.4
Russian Federation n/a
Mexico 19.8
Canada 19.7
Austria 18.2
World's Top 10 Tourism Earners, 2001 Based On

Tourism Receipts ($ US Billions)
United States $72.3
Spain $32.9
France $29.6
Italy $25.9
China $17.8
Germany $17.2
United Kingdom $15.9
Austria $12.0
(Source: TIA)
Randall Travel Marketing focuses solely on travel and tourism research and strategic
planning. Our clients include destination marketing organizations, attractions,
lodging, resorts and transportation.

Top Ten Travel and Tourism Trends 2003: Judy L. Randall Dr. Larry D. Gustke

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Top Ten Travel and Tourism Trends

Randall Travel Marketing, Inc.

The Top Ten Trends in Brief

Trend #1: Flat growth in overall travel and tourism revenues

U.S. Business/Convention Travel Volume (domestic)

U.S. Hotel/Lodging (domestic)

Trend #3: Continued decline in business travel (which affects

Trend #4: Leisure travel will show slow growth

Trend #9: Time poverty continues to drive travel and tourism

Trend #10: Leisure travelers are looking for more intimate

Other Interesting Data:

Top Ten State

World's Top 10 Tourism Destinations, 2001

World's Top 10 Tourism Earners, 2001 Based On

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