Leisure Travel Woes among U.S. Travelers

The leisure travel industry continues to be hit hard by the impacts of the recession. According to a Prophis eResearch March 2009 survey of U.S. online adults, about two in five (37 percent) indicate that they are spending about the same on personal travel as they did one year ago. However, 27 percent indicate that they are currently spending much less than a year ago while only 5 percent say they are spending much more.

For the moment, for those spending at least $500 per year on leisure travel, roughly similar percentages indicate that they will spend more or less than a year ago. This higher spending group makes up 52 percent of personal travelers and represents also 90 percent of spend in this category.

Recession effects start to appear when looking at the lower spending segments. For example, among those currently spending $1 to $500 per year on their own leisure travel, only 2 percent indicate that they are spending much more than a year ago while 29 percent say they are spending much less.

Travelers from most age groups and household income groupings are reporting the tendency to engage in leisure travel, although those under 35 years of age as well as those in households making over $75,000 per year seem to be traveling roughly as much as a year ago.

First, many travelers are simply searching harder to find good deals at the places they normally shop than they have done in the past . Second, lots of travelers are simply choosing to stay closer to home when they travel –staycationing seems to becoming ever more popular. Third, consumers are showing an increased willingness to put up with fewer frills and more bother when it comes to both transportation and accommodation.