Survey shows brighter days ahead for business travel

It’s safe to say that just about every lodging operator is eager to hear some good news about what is likely to happen to demand in the months ahead. And the results of our February 2010 travelhorizons survey (co-authored every 90 days with the U.S. Travel Assn.) provide some encouragement, although not to the point that it’s time to retrieve the punch bowl.

According to the results of our February survey (a nationally representative sample of 2,251 U.S. households conducted February 4-12), 56 percent of U.S. adults expect to take at least one trip primarily for leisure purposes during the next six months, a 7-point decline from the percentage that expressed the same intention precisely one year prior. This expected incidence of leisure travel translates into an estimated 127 million U.S. adults who will take at least one leisure trip between February and July, half of whom expect no change in the amount of money they are likely to spend this year versus last. One out of four (24 percent) expects to “spend more” on those leisure trips, roughly the same percentage that expects to “spend less” (26 percent). Although stated leisure travel intentions are down, demand for leisure travel services remains elastic, thus lodging operators who develop and implement attractive promotional strategies will undoubtedly be rewarded for their creativity as consumers continue to demand excellent value for their travel dollars this summer.

On a more encouraging note, one out of seven (15 percent) adults is planning at least one business trip during the next six months, up two points from the percentage recorded one year earlier. This bodes well for the long-awaited recovery of demand for business travel services, although pricing power for both individual and group demand from business travelers will remain elusive for months to come.

Although it’s premature to declare we’re out of the woods yet, these results suggest that the most difficult months may now be behind us and that the horizon line will begin to brighten.

For more information on travelhorizons please visit the Publications section of www.ypartnership.com.