Table of Contents
Executive Summary
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- Overview
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- Figure 1: Vacation planning segments, February 2019
- The issues
- There’s too much information
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- Figure 2: Sources of travel inspiration, February 2019
- Travelers want to visit a variety of destinations
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- Figure 3: Attitudes toward vacation destinations – Nets, February 2019
- Vacationers can be distracted and disloyal
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- Figure 4: Effects of a good deal on vacation plans, by generation, February 2019
- The opportunities
- Families are eager to travel
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- Figure 5: Attitudes toward vacation destinations – Any agree, by segment, February 2019
- Vacationers are willing to spend more on vacations
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- Figure 6: Spending on domestic vacations 2014-18
- Vacation planning is fun!
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- Figure 7: Attitudes toward trip planning – Nets, February 2019
- What it means
The Market – What You Need to Know
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- Total vacation market has a steady but cautious outlook
- Domestic vacations are grand
- The two-generation approach
- Takin’ PTO they’re given when they’re workin’ for a livin’
Market Size and Forecast
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- The vacation market steady, but may underachieve
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- Figure 8: Total US sales and fan chart forecast of vacation and tourism market, at current prices, 2013-23
- Figure 9: Total US sales and forecast of vacation and tourism market, at current prices, 2013-23
Market Factors
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- GDP decelerating
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- Figure 10: GDP change from previous period, Q1 2007-Q4 2018
- DPI currently in a good place
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- Figure 11: Disposable Personal Income change from previous period, December 2012-18
- Volatile sentiment injects uncertainty
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- Figure 12: Consumer Sentiment Index, February 2015-February 2019
- Fuel prices
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- Figure 13: US gasoline and diesel retail prices, January 2007-December 2018
- Millennials and Boomers are big shares of the population
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- Figure 14: Population by generation, 2018
Market Breakdown
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- Per-vacation spending is high
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- Figure 15: Spending on domestic vacations 2014-18
Market Perspective
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- More frequent short trips are gaining appeal
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- Figure 16: Preferred vacation length and frequency – Nets, by age, 2017-18
- Americans using more vacation
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- Figure 17: Percentage of US workers with unused vacation days, 2015-17
Key Players – What You Need to Know
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- Suppliers may not be spending enough on mobile advertising
- Offers are more reactive
- Travelers look to check all the boxes
- Planners are drowning in options
- Advertising that’s like being there
Digital Advertising Tactics
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- OTA ad spending
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- Figure 18: OTA online ad spending overview, January 2018-19
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- Figure 19: OTA online ad spend and impression share by device, January 2018-19
- Airline spending
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- Figure 20: Airline online ad spending overview, January 2018-19
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- Figure 21: Airline online ad spend and impression share by device, January 2018-19
- Figure 22: Airline online daily ad spend and daily impressions, January 2018-19
- Hotel spending
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- Figure 23: Hotel online ad spending overview, January 2018-19
- Figure 24: Hotel online ad spend and impression share by device, January 2018-19
What’s Happening?
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- Pushing hotels via push
- Aquatica Orlando caters to special-needs children
- Making a list and checking it off
- Getaways on layaway, in a way
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- Figure 25: American Express No Plan It direct mailer, December 2018
What’s Struggling?
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- Travelers are overwhelmed by options
- African-American travelers are concerned about racial profiling
- Venice introduces tourist fee
What’s Next?
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- A travel agent renaissance begets the travel advisor
- Travel advertising will be an experience on its own
- Tech will allow for time travel
The Consumer – What You Need to Know
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- Vacation planning is fun and important
- Efficiency alleviates frustration, not time constraints
- Short-term bookings on the rise
- Trusted sources silence the noise
- Only one chance for a first impression
- Travelers aren’t feeling nostalgic
- Younger travelers need help planning
Vacation Planning Segments
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- Vacation planning segmentation
- Factors
- Relishing Revisitors (RRs) (25%)
- Extemporaneous Empty-nesters (EEs) (27%)
- Family Forayers (FFs) (21%)
- Generational Globetrotters (GGs) (27%)
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- Figure 26: Vacation planning segments, February 2019
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- Figure 27: Attitudes toward vacation planning, by vacation planning segments, February 2019
The Planning Process
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- Vacation planning is enjoyable
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- Figure 28: Attitudes toward trip planning – Nets, February 2019
- A matter of time vs inclusiveness
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- Figure 29: Attitudes toward trip planning – Nets, by segment, February 2019
- Booking experiences need to be seamless
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- Figure 30: Attitudes toward vacation booking – nets, February 2019
- Safety and reputation are the top considerations
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- Figure 31: Special considerations taken when vacation planning, February 2019
- Planners take a lot into account – TURF analysis
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- Figure 32: TURF analysis – Special planning considerations, February 2019
- Varied activities for kids are most important among parents
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- Figure 33: Special considerations taken by parents when vacation planning, February 2019
- Traveling with children is a skill
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- Figure 34: Attitudes toward children as travel companions – nets, by generation and parental status, February 2019
- Parents have a lot to consider – TURF analysis
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- Figure 35: TURF analysis – Special planning considerations, February 2019
- Relishing familiarity
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- Figure 36: Planning considerations, none of the above, by segment, February 2019
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- Figure 37: Special planning considerations, by segment, February 2019
- Destination attitudes break with some predicted trends
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- Figure 38: Attitudes toward vacation destinations – Nets, February 2019
- Kid-free couples seek relaxation; families look for energization
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- Figure 39: Attitudes toward vacation destinations – Any agree, by segment, February 2019
- Minority travelers have safety concerns
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- Figure 40: Safety concerns when vacation planning, by race and Hispanic origin, February 2019
- Hispanics most concerned about their pets
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- Figure 41: Pet concerns during vacation planning, by race and Hispanic origin, February 2019
Booking Timeframes
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- Last-minute booking has an audience
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- Figure 42: Vacation aspects booked ahead of time, February 2019
- Planning is settled a month or more before the trip
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- Figure 43: Preferred lead time in booking vacation components, February 2019
- Young travelers plan for the near future
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- Figure 44: Advance booking behaviors, by age, February 2019
- Date flexibility is a big factor in lead time
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- Figure 45: Preferred lead time in select booking vacation components, February 2019
Vacation Inspiration
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- Inspiration comes from the people you know
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- Figure 46: Sources of travel inspiration, February 2019
- Social channels have overtaken traditional media for inspiration
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- Figure 47: Travel inspiration sources, by segment, February 2019
- Instagram – a burgeoning TripAdvisor?
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- Figure 48: Sources of travel inspiration, by generation, February 2019
- Repeat visits rely most on first impressions
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- Figure 49: Reasons for revisiting a vacation destination, February 2019
- Nostalgia is overblown
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- Figure 50: Effect of nostalgia on repeat visitors, by generation, February 2019
- Revisiting destinations – TURF analysis
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- Figure 51: TURF analysis – Repeat visitation, February 2019
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- Figure 52: TURF analysis – Repeat visitation, parents, February 2019
Changing Vacation Plans
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- Time constraints limit experiences
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- Figure 53: Reasons for altering plans, February 2019
- Millennials and Gen Z need help planning out trips
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- Figure 54: Reasons for altering plans, by generation, February 2019
- Younger generations are also opportunistic
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- Figure 55: Finding better things to do than original plans, by generation, February 2019
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- Figure 56: Openness to changing travel plans based on a financial offering, by generation, February 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Consumer
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- TURF Methodology
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