Study: Traveler attitudes are changing--for the better

It seems like the bad news just keeps coming from both within and outside the industry. As such, we were delighted to see, and are now pleased to share, some welcomed good news: The U.S. Traveler Sentiment Index is now rising, the first increase we have observed since January 2008.

The Traveler Sentiment Index is measured in our quarterly travelhorizons survey, a nationally representative survey we have co-authored with the U.S. Travel Assn. (formerly the Travel Industry Assn.) since early 2007. The survey is the only national survey that tracks the near-term travel intentions of Americans viewed through the lens of emerging economic, social and political developments. The most recent survey flight was conducted the week of Feb. 7, 2009, with a national sample of 2,270 U.S. adults.

The Traveler Sentiment Index is a derivative of six variables: interest in travel, availability of time to travel, availability of money to travel, perceived affordability of travel, quality of travel services and safety. All six measures increased from the levels observed in October 2008 (the last survey flight). And four measures displayed double-digit increases: interest in travel (up 10.3 percent), availability of time to travel (up 12 percent), quality of travel services (increased 14.1 percent) and perceived affordability of travel (rose 97.2 percent). The result was a 15.3-percent increase in the overall index from the level recorded in October 2008, although the February 2009 index remains 3 percent below the level recorded in February 2008. The trend line we have observed since early 2007 is revealed in the chart above.

The significant spike in the perceived affordability of travel appears to be a direct result of many travel suppliers’ recent efforts to stimulate short-term demand through the aggressive promotion of discounted fares and rates. Promotional pricing and related incentives are now offered by suppliers representing practically every segment of the travel industry including airlines, cruise lines, hotel companies, attractions, restaurants and rental car companies, some of which are featuring up to 50 percent off fares and rates they were quoting just six months ago.

Let’s hope this positive shift in consumer sentiment now translates into a positive shift in demand for lodging.

For further information on travelhorizons, visit the publications section of www.ypartnership.com.