National News

Spring travel forecast coming up roses

According to the Travel Industry Association of America’s (TIA) Spring 2005 Travel Forecast, Americans plan on taking nearly 281 million person-trips during March, April and May. This represents an increase of 1.2 percent over spring 2004. Recent increases in both hotel and airline travel support TIA’s forecast for strong spring travel volume. A person-trip is one person on one trip traveling 50 miles or more from home, one way.

“Americans are upbeat, a prelude to a busy spring travel season. Their travel intentions are healthy, they feel good about the economy, and they feel positive about their own finances. These key factors point to a record spring travel season,” said Dr. Suzanne Cook, senior vice president, TIA Research.

On the leisure front, Americans are expected to take nearly 223 million leisure person-trips in spring 2005, up 1 percent from last spring. While this growth is moderate, it’s nearly 7 percent higher than spring 2003 and nearly 10 percent higher than spring 2000.

Business and convention travel volume continues to recover, increasing 2 percent in spring 2005. Americans plan on taking 47.1 million business/ convention trips this spring, up from 46.1 million last spring. While this brings the volume in line with spring of 2000, it’s still below the 48.1 million business/ convention trips taken in spring 2001.
Source: TIA.org

U.S. tourism industry grew 6.7 percent last year

According to the Commerce Department, the U.S. tourism industry grew 6.7 percent in 2004 led by sales of food, airline travel, recreation and entertainment goods. In addition, tourism sales in 2004 rose to $960.7 billion from $900 billion in 2003. It marked the third straight annual increase in the sale of travel-related goods and services. Hotel accommodations, airfares and souvenirs, or direct tourism sales, accounted for $548.6 billion of the total. Indirect tourism-related sales provided $412.1 of the total.
Source: Travel Advance

Feds predict record U.S. gas prices

Gasoline prices are expected to hit record levels in coming months, peaking in May at an average of $2.15 a gallon nationwide, according to a government forecast released March 8. Average prices are expected to remain above $2 a gallon until November, when they should dip below that level, according to the Energy Information Administration, an arm of the Energy Department.
Source: Travel Advance

World tourism growth moderate in ’05

World travel and tourism is expected to grow 5.1 percent this year, slowing from a rebound of 6.8 percent the year before, the World Travel and Tourism Council said. The world travel and tourism economy is forecasted to expand to $7.8 trillion in 2005 as it returns to more normal growth rates, the London-based trade association said. Asia represented one of the greatest world growth markets due, especially, to the rapidly growing number of Chinese and Indian tourists, said WTTC President Jean-Claude Baumgarten.
Source: Travel Advance

Hotels prospering

With travel picking up, profits at the average hotel in the U.S. rose about 12 percent last year over 2003, according to a study by PKF Hospitality Research. This year, the increase is expected to be about 14 percent. The brighter economic picture followed a three-year industry recession during which profits declined 36.2 percent. With demand up, hotels “have been able to get more aggressive” in raising room rates, said R. Mark Woodworth, executive managing director of PKF.
Source: Travel Advance