If the travel industry had but one wish, it would be that this year be better than last. It wouldn`t take much to see an improvement, and most indicators show that 1992 will be better.
For one thing, the United States is not involved in a war, as it was last year. Anxiety stirred by the Persian Gulf war rippled across Europe and the U.S., leaving in its wake threats of terrorism and jitters.
Things are different now. With few exceptions, the world is more peaceful. The recession remains with us, but there are some indications that the slump is easing in some parts of the country.
With a sense that the world seems a trifle saner now, Americans appear to be more willing to leave the cocoon and venture forth into the U.S. and to other parts of the globe. At least there are surveys that indicate that.
One such survey of 750 randomly selected respondents who had taken at least one vacation by plane or cruise ship during the last two years projected a return to 1990 travel patterns.
”The survey indicates that, despite the recession, sophisticated travelers are once again regarding vacation trips as a necessity, as one of life`s essentials,” said Bill Colon, senior vice president and travel industry strategist at Fleishman-Hillard, a public-relations agency and travel marketer that conducted the survey.
The telephone survey, according to the St. Louis-based firm, was divided evenly among all regions of the U.S. as well as between men and women. Twenty- five percent of those questioned were aged 18 to 34; 37 percent were 35 to 54; and 39 percent were 55 or older. Almost half the respondents had annual household incomes of $50,000 or more.
Eight of 10 respondents said they planned to take at least one vacation by air or cruise ship and nearly a third indicated they would travel outside the continental U.S. The Caribbean topped the list with 45 percent, followed by Europe, 38 percent; Mexico, 19 percent and Hawaii, 13 percent. Some people chose more than one destination.
The survey broke out the 750 respondents into three categories: Price Sensitive, 53 percent; Experience Seekers, 34 percent and Prefer the Familiar, 12 percent. Price Sensitive travelers admit they have become more conservative in their vacation plans. They love their vacations, but they weigh price, value and recommendations from travel agents and friends in choosing where they go. Experience Seekers, who generally make more than $50,000 a year, are willing to travel long air distances and to visit one new destination each year. Prefer the Familiar do not like to travel long distances nor is travel an important part of their lifestyles. They are similar to their Price Sensitive cousins in that they tend to take only one vacation by air or ship a year.
If the survey holds true, 41 percent of the travel will take place in the summer, 40 percent in the spring, 31 percent in the winter and 27 percent in the fall. Some people chose two seasons.
In another winter survey, this one of 200 American Express travel agents nationwide, some similarities cropped up. The most noteworthy: Agents said 72 percent of American Express clients indicated a willingness to change destinations to save money.
”Before they travel, clients want to be absolutely certain they`ve found the best deal for the dollar,” said Steve Alesio, senior vice president and general manager, American Express Retail Travel Network-U.S.
Nearly 7 in 10 agents reported that travelers are cutting back on hotel expenses to save money, while others have economized by looking for better air fares, taking shorter vacations and traveling closer to home.
More precisely, 41 percent of the travelers chose to downgrade on hotels, 23 percent wanted to cut back on air fares, 20 percent chose to shorten stays, 10 percent sought to stay closer to home and 5 percent chose to reduce meal expenses.
Top domestic destinations preferred by clients were Florida, by a whopping 96 percent, followed by California, Hawaii, Colorado and Nevada. Top international destinations listed were Caribbean, Mexico, England, Caribbean cruises, Europe (general) and France.
In other telling aspects of the American Express survey, clients told their agents their key reason for a vacation was ”to get away from it all”
rather than ”to see the world or see something new.”
Flying in the face of cost-saving travel deals are the words from the airlines, cruise lines, car rental companies and other industry components looking for more revenue.
”Cost and revenue trends are going the wrong way,” Robert L. Crandall, chairman and president of American Airlines, told Travel Weekly`s 1992 Economic Survey of the Travel Industry. ”Distress pricing by bankrupt, cash- starved airlines and carriers that simply do not understand demand/price tradeoffs is destroying the revenue side of the equation.”
”Airline management, stockholders and consumers must realize the dangers of discounting fares simply to stimulate cash flow while not realistically covering costs of operation,” said Ronald W. Allen, chairman and chief executive officer of Delta Air Lines in Travel Weekly. ”It is not in the public`s interest for us to price our product in a manner that does not cover today`s costs of operation or provide a foundation for future growth and modernization of equipment and facilities.”
In the same survey, cruise lines decried continued discounting, but many executives agreed the practice will continue this year despite anticipated passenger growth which will not match the supply of cabins. Car-rental executives, too, said rental prices have remained stable while their costs have risen.
As consumers demand value before they travel, the industry faces a marketing dilemma on how to fill seats and beds and make a profit, too.
