Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources for sales estimates
- Consumer survey data
- Abbreviations and terms
Executive Summary
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- Market drivers: A macro-perspective
- Market drivers: A consumer perspective
- Who travels domestically, and what do they do?
- Average expenditures for domestic trips
- Regions and states visited in domestic vacations
- Lodging
- Car rental
- Who travels abroad, and what do they do?
- Elements of an enjoyable vacation
Insights and Opportunities
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- Configuration tools could drive leisure travel planning, and growth
- Mixing business and pleasure can reduce guest expenses and keep valuable employees happy and healthy
- “Gaycations”: capitalize on LGBT travel
- The need for brand community initiatives has never been greater
Inspire Insights
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- I Travel, Therefore I Am
- What’s it all about?
- What we’ve seen
- Specifics
- Fresh Travel
- What’s it all about?
- What we’ve seen
- Key points
- Sales return to 2005-06 levels in 2008
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- Figure 1: U.S. leisure travel sales, in current terms, 2003-13
- Figure 2: U.S. leisure travel sales, in constant terms, 2003-13
Competitive Context
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- Home entertainment rose as Americans spent less time vacationing away from home
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- Figure 3: Changes in travel and vacation patterns, by household income, February 2009
Segment Performance
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- Lodging shows largest decline
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- Figure 4: Comparisons of industry sales trends, by lodging, air travel and car rental, 2003-13
Segment Performance—Lodging
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- Key point
- Sales drop sharply in 2008, with the rate of decline expected to decelerate in 2009
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- Figure 5: U.S. sales of lodging for leisure purposes, in current terms, 2003-13
- Figure 6: U.S. sales of lodging for leisure purposes, in constant terms, 2003-13
Segment Performance—Air Travel
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- Key point
- Sales of air travel for leisure declined approximately 4.5% in 2008
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- Figure 7: Sales of air travel for leisure purposes, in current terms, 2003-13
- Figure 8: U.S. sales of air travel for leisure purposes, in constant terms, 2003-13
Segment Performance—Rental Cars
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- Market cools in the face of recession
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- Figure 9: U.S. sales of car rentals for leisure purposes, in current terms, 2003-13
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- Figure 10: U.S. sales of car rentals for leisure purposes, in constant terms, 2003-13
Market Drivers: A Macro Perspective
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- Price of travel rose throughout 2008 and declined in the early months of 2009
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- Figure 11: Quarterly average domestic airline fares, January 2007-September 2008
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- Figure 12: U.S. travel price index, March 2009
- Number of summer person trips peaked in 2007 and declined slowly in 2008 and 2009
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- Figure 13: Number of summer (June, July August) leisure travel trips, 2001-09
- Sagging consumer confidence discouraged travel in 2008 but is on the rise in Q2 of 2009
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- Figure 14: Consumer sentiment index, 2001-09
- Time for leisure declining in 2009, but most will still vacation
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- Figure 15: Numbers of hours available per week for leisure activities, 2000-08
- Sharp increase in gas prices in 2008 discouraged travel; 2009 decline makes vacationing more accessible
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- Figure 16: Trended U.S. retail gas prices, average of all grades and formulations, 2001-09
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- Figure 17: Domestic scheduled enplanements on U.S. carriers, by month, 2007-08
- Growth in affluent segments between 2005 and 2007 drove demand
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- Figure 18: Income distribution in U.S., 2005-07
- Weak dollar discourages foreign travel, compels some to travel domestically rather than abroad
Market Drivers: A Consumer Perspective
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- Recession drives bargain hunting, shorter trips—but the people still travel
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- Figure 19: How economic downturn has affected travel plans within the U.S. in past 12 months, by age, February 2009
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- Figure 20: Reasons for not taking a vacation in past 12 months, by age, February 2009
Who Travels Domestically and What do They Do?
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- Key points
- About six in 10 Americans took a domestic vacation last year
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- Figure 21: Vacations taken within the U.S. in past 12 months, by age, February 2009
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- Figure 22: Vacations taken within the U.S. in past 12 months, by household income, February 2009
- Driving
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- Figure 23: Modes of transportation used for traveling for vacation within the U.S. in past 12 months, by age, February 2009
- Incidence of “friendcations” rose in response to recession
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- Figure 24: Types of vacations taken within the U.S. in past 12 months, by age, February 2009
Average Expenditures for Domestic Trips
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- Key points
- Demand is limited for packages more than $500
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- Figure 25: Amount spent on last domestic trip, by age, July 2007-September 2008
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- Figure 26: Amount spent on all transportation for last vacation, by age, February 2009
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- Figure 27: Amount spent on all transportation for last vacation, by household income, February 2009
Regions and States Visited in Domestic Vacations
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- Key points
- Sunny beaches, mountains and the city are the most popular destinations
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- Figure 28: Region visited, last vacation, past 12 months, by age, July 2007-September 2008
- Florida, California, Nevada and New York top travel destinations
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- Figure 29: Vacations taken within the U.S. in past 12 months, by age, July 2007-September 2008
Lodging
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- Key points
- Demand for hotel rooms drops along with new construction projects
- About half of vacationers pay for accommodations
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- Figure 30: Type of lodging, for last vacation, in past 12 months, by age, July 2007-September 2008
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- Figure 31: Type of lodging for last vacation, by household income, July 2007-September 2008
- 45-64-year-old affluents tend to stay longest
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- Figure 32: Number of nights stays, hotel/motel in past 12 months, by age, July 2007-September 2008
- Figure 33: Number of nights stays, hotel/motel in past 12 months, by household income, July 2007-September 2008
- Internet access, room service, mini kitchens and health facilities among top amenities
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- Figure 34: Hotel amenities used within the U.S. in past 12 months, by household income, July 2007-September 2008
- Somewhat more likely to use internet and room service when traveling abroad
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- Figure 35: Hotel amenities used, for trip outside the U.S., by household income, February 2009
- Most not enrolled in a lodging loyalty program
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- Figure 36: Hotel/motel frequent guest enrollment, past 12 months, by age, February 2009
- Figure 37: Hotel/motel frequent guest enrollment, past 12 months, by household income, July 2007-September 2008
- Vacation rentals an attractive option for some, but industry reporting steep declines in sales
- Key points
- Single affluents without children are a key segment
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- Figure 38: Frequency of domestic air travel for vacation in the U.S., July 2007-September 2008
- Many appreciate services that allow them to avoid waiting in line
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- Figure 39: Airport services used in past 12 months, by age, February 2009
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- Figure 40: Airport services used in past 12 months, by gender, February 2009
- Enplanements down in major tourist destinations such as Chicago, Las Vegas, and Orlando
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- Figure 41: Top 10 U.S. airports, by January 2009 domestic scheduled enplanements, January 2009
- Southwest and American still market leaders, but American may be losing dominance
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- Figure 42: Airline used, last vacation, past 12 months, by household income, July 2007-September 2008
- U.S. based airlines are still favored by most for foreign travel
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- Figure 43: Airline used for last foreign travel in past three years, by household income, July 2007-September 2008
Car Rental
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- Key point
- Affluents and 35-64 year-olds are high-demand segments
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- Figure 44: Vehicle rental, past 12 months, by household income, July 2007-September 2008
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- Figure 45: Domestic trip by plane, for vacation, in past 12 months, by age, July 2007-September 2008
Who Travels Abroad and What Do They Do?
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- Key points
- About four in 10 vacationed outside the U.S. in the previous three years; affluents and Asian respondents reported more international travel
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- Figure 46: Incidence of foreign travel in past three years, by demographic group, February 2009
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- Figure 47: Number of foreign travel trips by plane in past three years, by household income, February 2009
- Average foreign vacation expenditure among respondents is about $2,500
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- Figure 48: Amount spent on last foreign trip for vacation, in past three years, by household income, February 2009
- Many seek warmer weather and visits with loved ones when traveling abroad
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- Figure 49: Vacation type, outside the U.S., by household income, February 2009
- Inexpensive air travel the most common way of visiting a foreign country
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- Figure 50: Mode of transportation used, for trip outside the U.S., by household income, February 2009
Countries and Regions Visited on Last Overseas Vacation
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- Key point
- Mexico, Europe, the Caribbean and Canada most popular vacation destinations outside the U.S.
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- Figure 51: Location of last foreign vacation, by household income, July 2007-September 2008
Importance of Culture and Environmental Issues Associated with Foreign Travel
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- Key point
- Learning about and gaining respect for local culture is important to most respondents
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- Figure 52: Summary of agreement on environmental issues on trips outside the U.S., by household income, February 2009
Use of and Attitudes Towards Recreational Vehicles
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- Key point
- Campers/RVs enticing option for some young families and affluents
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- Figure 53: Owns a camper/recreational vehicle, by age, February 2009
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- Figure 54: Owns a camper/recreational vehicle, by household income, February 2009
- Men have greater affinity for RVs
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- Figure 55: Attitudes towards campers/recreational vehicles, by gender, February 2009
Leading Companies
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- InterContinental, Wyndham, Hilton, and Marriott maintain position as top players during recession
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- Figure 56: Top 25 U.S. Hotels based on number of rooms, March 2009
- American and Southwest continue to lead in the air travel segment
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- Figure 57: Top 10 U.S. airlines, by January 2009 domestic scheduled enplanements, January 2009
- Figure 58: Share of U.S. domestic air travel market based on passenger revenue miles, March 2008-February 2009
- Enterprise and Hertz continue to dominate the industry
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- Figure 59: 2008 US car rental market, March 2008-February 2009
Innovation and Innovators
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- Hotels going green
- Kitchens and the luxuries of home, on vacation
- Appealing to Affluent Wellness-Oriented Consumers
Characteristics of Frequent Air Travelers: A Psychographic Perspective
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- Avid air travelers are often effective social networkers
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- Figure 60: Characteristics of travelers, by traveler type, July 2007-September 2008
- Avid travelers often adventurous and more comfortable than most at stepping off the “beaten path”
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- Figure 61: Characteristics of travelers, by traveler type, July 2007-September 2008
Elements of an Enjoyable Vacation
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- Key points
- Relaxation, weather, sightseeing and cuisine all top priorities
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- Figure 62: Essential elements of an enjoyable vacation, by household income, February 2009
Advertising and Promotion
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- Overview
- Media expenditures by leading lodging companies
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- Figure 63: Ranking of lodging companies by sales, with media expenditures and agencies used, 2008
- Airline media expenditures
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- Figure 64: Ranking of airline companies by sales, with media expenditures and agencies used, 2008
- Rental car media expenditures
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- Figure 65: Media expenditures and agencies used by top car rental agencies, 2009
- Websites and television ads for online travel companies
- Orbitz.com
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- Figure 66: Orbitz price promotion ad, 2009
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- Figure 67: Orbitz Travel well ad, 2008
- Expedia.com
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- Figure 68: Expedia vacation deprivation ad, 2008
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- Figure 69: Expedia suitcases ad, 2008
Race and Ethnicity
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- Whites and Asians over-index on domestic leisure travel
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- Figure 70: Domestic travel in past 12 months, by race/ethnicity, July 2007-September 2008
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- Figure 71: Number of nights away from home on vacation, in past 12 months, by race/ethnicity, July 2007-September 2008
- On average, Asians and Hispanics spend the most per trip on domestic travel
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- Figure 72: Amount spent on last domestic trip, by race/ethnicity, July 2007-September 2008
- Asians much more likely to travel abroad
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- Figure 73: Incidence of foreign travel in last three years, by race/ethnicity, July 2007-September 2008
- Whites and Asians use hotels with greater frequency
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- Figure 74: Number of nights at hotel/motel for personal/vacation in past 12 months, by race/ethnicity, July 2007-September 2008
Cluster Analysis
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- Moderates
- Who they are
- Opportunity
- Adventurers
- Who they are
- Opportunity
- Frugalites
- Who they are
- Opportunity
- Cluster characteristics
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- Figure 75: Leisure travel clusters, February 2009
- Figure 76: Vacations taken within the U.S. in past 12 months, by clusters, February 2009
- Figure 77: Vacations taken outside of the U.S./overseas in past 24 months, by clusters, February 2009
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- Figure 78: Types of vacation taken within the U.S. in last 12 months, by clusters, February 2009
- Figure 79: Essential elements of an enjoyable vacation, by clusters, February 2009
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- Figure 80: How economic downturn has affected travel plans within the U.S. in past 12 months, by clusters, February 2009
- Cluster demographics
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- Figure 81: Clusters, by gender, February 2009
- Figure 82: clusters, by age group, February 2009
- Figure 83: Clusters, by household income group, February 2009
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- Figure 84: Clusters, by race/ethnicity, February 2009
- Figure 85: Clusters, by Hispanic origin, February 2009
- Cluster methodology
Custom Consumer Groups
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- Couples more likely than others to travel domestically at least once per year
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- Figure 86: Domestic travel in past 12 months, by custom consumer group, July 2007-September 2008
- Elite single men and male grad students who travel at least once per year tend to travel very frequently
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- Figure 87: Domestic trip(s) by plane in past 12 months, by custom consumer group, July 2007-September 2008
- Couples and affluent women travel frequently travel abroad
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- Figure 88: Number of roundtrip flights outside the U.S. taken for personal vacation in the last 3 years, by custom consumer group, July 2007-September 2008
Appendix: Additional Income Comparisons
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- Figure 89: Reasons respondents have not taken a domestic trip in past 12 months, by household income, February 2009
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- Figure 90: How economic downturn has affected travel plans within the U.S. in past 12 months, by household income, February 2009
- Figure 91: Types of vacations taken within the U.S. in past 12 months, by household income, February 2009
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- Figure 92: Modes of transportation used for traveling for vacation within the U.S. in past 12 months, by household income, February 2009
- Figure 93: Mode of transportation used, last vacation, past 12 months, by household income, July 2007-September 2008
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- Figure 94: State visited, last vacation, by household income, July 2007-September 2008
- Figure 95: Region visited, last vacation, past 12 months, by household income, July 2007-September 2008
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- Figure 96: Amount spent on last domestic trip, by household income, July 2007-September 2008
- Figure 97: Airport services used in past 12 months, by household income, February 2009
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- Figure 98: Last year of foreign travel in past three years, by household income, February 2009
- Figure 99: Type of accommodations used during foreign travel, by household income, February 2009
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- Figure 100: Mode of transportation used for foreign travel in past three years, BY HOUSEHOLD income, February 2009
- Figure 101: Last country, foreign travel in past three years, by household income, July 2007-September 2008
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- Figure 102: Domestic travel in past 12 months, by household income, July 2007-September 2008
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Appendix: Additional Age Comparisons
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- Figure 103: Mode of transportation used during last domestic vacation in past 12 months, by age, July 2007-September 2008
- Figure 104: State visited, last vacation, in past 12 months, by age, July 2007-September 2008
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- Figure 105: Hotel amenities used within the U.S. in past 12 months, by age, July 2007-September 2008
- Figure 106: Airline used, last vacation, past 12 months, by age, July 2007-September 2008
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- Figure 107: Essential elements of an enjoyable vacation, by age, February 2009
- Figure 108: Vehicle rental, past 12 months, by age, July 2007-September 2008
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Appendix: Additional Race/Ethnicity Comparisons
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- Figure 109: Vacations taken within the U.S. in past 12 months, by race/ethnicity, February 2009
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- Figure 110: Airport services used in past 12 months, by race/ethnicity, February 2009
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- Figure 111: Hotel/motel frequent guest enrollment, past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 112: Hotel/motel stay, past 12 months, by race/ethnicity, July 2007-September 2008
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- Figure 113: Type of lodging, for last vacation, in past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 114: Owns a camper/recreation vehicle, by race/ethnicity, February 2009
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- Figure 115: How economic downturn has affected travel plans within the U.S. in past 12 months, by race/ethnicity, February 2009
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- Figure 116: Vacations taken within the U.S. in past 12 months, by race/ethnicity, February 2009
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- Figure 117: Types of vacations taken within the U.S. in past 12 months, by race/ethnicity, February 2009
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- Figure 118: Region visited, last vacation, past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 119: State visited, last vacation, in past 12 months, by race/ethnicity, July 2007-September 2008
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- Figure 120: Airline used, last vacation, past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 121: Type of lodging, for last vacation, in past 12 months, by race/ethnicity, July 2007-September 2008
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- Figure 122: Essential elements of an enjoyable vacation, by race/ethnicity, February 2009
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- Figure 123: Modes of transportation used for traveling for vacation within the U.S. in past 12 months, by race/ethnicity, February 2009
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- Figure 124: Number of domestic roundtrip(s) by plane for vacation/personal in past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 125: Reasons for not taking a vacation in past 12 months, by race/ethnicity, July 2007-September 2008
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- Figure 126: Hotel amenities used within the U.S. in past 12 months, by race/ethnicity, February 2009
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- Figure 127: Vehicle rental, past 12 months, by race/ethnicity, July 2007-September 2008
- Figure 128: Domestic travel, for vacation, in past 12 months, by race/ethnicity, July 2007-September 2008
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- Figure 129: Vacations taken within the U.S. in past 12 months, by gender, February 2009
- Figure 130: Vacations taken within the U.S. in past 12 months, by gender, February 2009
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- Figure 131: Modes of transportation used for traveling for vacation within the U.S. in past 12 months, by gender, February 2009
- Figure 132: How economic downturn has affected travel plans within the U.S. in past 12 months, by gender, February 2009
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- Figure 133: Reasons respondents have not taken a domestic trip in past 12 months, by gender, February 2009
- Figure 134: Types of vacations taken within the U.S. in past 12 months, by gender, February 2009
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- Figure 135: Amount spent on all transportation for last vacation, by gender, February 2009
- Figure 136: Hotel amenities used within the U.S. in past 12 months, by gender, February 2009
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- Figure 137: Essential elements of an enjoyable vacation, by gender, February 2009
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Appendix: Trade Associations
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