19 November 2009

Tourism outlook: cautious optimism

Tourism, hospitality and leisure travel may stabilize as signs of an economic recovery take hold, says a Deloitte study. They are terming it "cautious optimism."

Their survey of 2,000 consumers in the US revealed that almost half will take a vacation or leisure trip staying overnight in a lodging facility from the beginning of Thanksgiving week through March of next year.

The survey showed:

• Eighteen percent will travel overnight and stay at a lodging facility during the Thanksgiving week and weekend

• Twenty-two percent will travel overnight and stay at a lodging facility during December through New Year's Day

• Almost one-third will travel overnight and stay at a lodging facility after New Year's Day through March

"When asked to compare their overnight travel plans for the same time period a year ago, 45 percent of respondents said they will take the same amount of trips this year involving an overnight stay at a lodging facility, while 25 percent said they will take more and 28 percent said they will take fewer trips," Deloitte says.

Said Adam Weissenberg, US Tourism, Hospitality and Leisure leader for Deloitte:

"Conditions appear to be stabilizing in the travel industry as signs of an economic recovery take hold. Room rates are still low, which is impacting revenue, but consumers are finding special offers and incentives on hotel accommodations which is helping to increase occupancy."

He urged hotel companies to continue focusing on driving demand and building long-term customer relationships through innovative marketing and loyalty programs.

"When business travel gets back on track, the industry will see further improvement leading to a more complete recovery," he said.

Reflecting on activities planned during the holiday/winter travel season, the majority of respondents will travel domestically and visit family and friends.

By David Wilkening