National News

Ease of online travel planning

Most people who travel probably make at least some of their reservations online. Online bookings rose 14 percent in 2004 over 2003, according to PhoCusWright, a company that tracks online travel trends. Of those American adults who go online and have flown in the past year, 88 percent shop for travel online and 63 percent said they purchase travel arrangements on the Internet. In 2005, that will amount to $62 billion in online travel, says Jupiter, a Web research firm. When it comes to domestic travel, fares on major sites vary by only a few dollars, which means that for most people, it isn’t worth the time to scour them all. Travelers have realized this fact, which is why convenience has started to edge out price as a purchasing factor, according to PhoCusWright.
Source: Travel Advance

Consumers lack time, not money, for travel

According to the Travel Industry Association of America’s (TIA) third quarter 2005 Traveler Sentiment Index, time available and interest in travel are consumers’ greatest perceived barriers to planning leisure trips. However, consumers are feeling more optimistic about their ability to travel based on affordability. The overall index remains virtually unchanged from last quarter’s rating; however, it is down nearly 10 percent from a year ago and is at its lowest point in the history of the index.

Compared to last quarter, declines were posted in three of the five indices measuring travel sentiment. Consumers are substantially more negative about having enough time to take a pleasure trip, with that index falling 5.6 percent, and their interest in taking a pleasure trip dropped 5.1 percent. Perceptions of the quality of service received while on a trip fell 2.4 percent.

On a more positive note, consumers reported more positive perceptions about the affordability of pleasure travel with that index increasing 10.2 percent over second quarter 2005. They were also more positive about having enough money to take a pleasure trip, with that index rising 7.8 percent.

“Despite these improvements, American travelers still remain significantly more negative about the affordability of travel and their financial capability to participate than they did in earlier years, reflecting real travel price increases in recent months,” noted Dr. Suzanne Cook, TIA’s senior vice president of research. “These tendencies may be further exacerbated by additional pressures on pricing created by the recent hurricanes in the Gulf area.”
Source: TIA

2006 business travel costs to rise

The cost of business travel will increase 12 percent in 2006, Runzheimer International predicts. The Rochester, Wis.-based consulting firm said increasing fuel prices would affect all sectors as airlines raise fares further, additional food delivery costs push meal costs up roughly 11 percent and mounting fleet costs drive car rental pricing higher. “Often used as a travel mode alternative, car rental will likely not be advantageous in the upcoming year,” the company said. Runzheimer said travel managers likely would emphasize supplier negotiations and companies will likely take a closer look at travel policies.
Source: Travel Advance

WTO: International tourism on track for another strong year

An estimated 460 million international tourist arrivals were recorded worldwide in the first seven months of this year, representing an increase of 5.9 percent, or some 25 million arrivals over the same period in 2004, according to preliminary data from the World Tourism Organization. The year-to-date increase is in line with WTO’s initial forecast of an increase of 5 to 6 percent for the full 12 months of 2005. Leisure tourism once again outperformed business travel, boosted by the availability of low fares for short-haul travel and by pent-up demand. However, officials said it was too early to assess the likely impact of Hurricanes Katrina and Rita.
Source: Travel Advance