European Travel Commission´s Latest Report Sends Mixed Signals

Things are not looking quite as good for Europe out of the U.S. this year. Results of a survey by the European Travel Commission (ETC) among its members shows some very different results from one European destination to another.

For some, the U.S. market has really bounced back. These include several Central/East European countries, as well as France, Greece, Monaco, Switzerland, and Sweden, though those numbers have skidded a tad in the UK.

Part of the problem in trying to figure out trends is the different methodologies used to measure demand. Official data from the Office of Travel & Tourism Industries in the US Department of Commerce, for example, points to a modest 2 percent increase in air trips to Europe in the first half of 2005 –the weakest growth to any destination region in the world from the US.

There is more bad news in the report. Leisure travel is the only sector showing growth in the US market and most of this is thanks to a growth in travel demand among the Generation-X age group –those born between 1965 and 1980. Baby boomers, from whom expectations were so high a few years ago, have actually recorded a decline in international hotels.

Terrorism, the war in Iraq, economic challenges, and the impact of soaring oil price on household spending are just a few of the concerns plaguing potential US travelers today.

Political instability, the perceived poor image of the U.S. abroad and airline industry problems –three of the seven largest airlines in the US are in Chapter 11 bankruptcy protection- have compounded the problems.