Vacation Planning - US - April 2019

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
Figure 1: Vacation planning segments, February 2019
The issues
There’s too much information
Figure 2: Sources of travel inspiration, February 2019
Travelers want to visit a variety of destinations
Figure 3: Attitudes toward vacation destinations – Nets, February 2019
Vacationers can be distracted and disloyal
Figure 4: Effects of a good deal on vacation plans, by generation, February 2019
The opportunities
Families are eager to travel
Figure 5: Attitudes toward vacation destinations – Any agree, by segment, February 2019
Vacationers are willing to spend more on vacations
Figure 6: Spending on domestic vacations 2014-18
Vacation planning is fun!
Figure 7: Attitudes toward trip planning – Nets, February 2019
What it means
THE MARKET – WHAT YOU NEED TO KNOW
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
The vacation market steady, but may underachieve
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 
GDP decelerating
Figure 10: GDP change from previous period, Q1 2007-Q4 2018
DPI currently in a good place
Figure 11: Disposable Personal Income change from previous period, December 2012-18
Volatile sentiment injects uncertainty
Figure 12: Consumer Sentiment Index, February 2015-February 2019
Fuel prices
Figure 13: US gasoline and diesel retail prices, January 2007-December 2018
Millennials and Boomers are big shares of the population
Figure 14: Population by generation, 2018
MARKET BREAKDOWN
Per-vacation spending is high
Figure 15: Spending on domestic vacations 2014-18
MARKET PERSPECTIVE
More frequent short trips are gaining appeal
Figure 16: Preferred vacation length and frequency – Nets, by age, 2017-18
Americans using more vacation
Figure 17: Percentage of US workers with unused vacation days, 2015-17
KEY PLAYERS – WHAT YOU NEED TO KNOW 
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
OTA ad spending
Figure 18: OTA online ad spending overview, January 2018-19
Figure 19: OTA online ad spend and impression share by device, January 2018-19
Airline spending
Figure 20: Airline online ad spending overview, January 2018-19
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
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?
Pushing hotels via push
Aquatica Orlando caters to special-needs children
Making a list and checking it off
Getaways on layaway, in a way
Figure 25: American Express No Plan It direct mailer, December 2018
WHAT’S STRUGGLING?
Travelers are overwhelmed by options
African-American travelers are concerned about racial profiling
Venice introduces tourist fee
WHAT’S NEXT?
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 
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
Vacation planning segmentation
Factors
Relishing Revisitors (RRs) (25%)
Extemporaneous Empty-nesters (EEs) (27%)
Family Forayers (FFs) (21%)
Generational Globetrotters (GGs) (27%)
Figure 26: Vacation planning segments, February 2019
Figure 27: Attitudes toward vacation planning, by vacation planning segments, February 2019
THE PLANNING PROCESS
Vacation planning is enjoyable
Figure 28: Attitudes toward trip planning – Nets, February 2019
A matter of time vs inclusiveness
Figure 29: Attitudes toward trip planning – Nets, by segment, February 2019
Booking experiences need to be seamless
Figure 30: Attitudes toward vacation booking – nets, February 2019
Safety and reputation are the top considerations
Figure 31: Special considerations taken when vacation planning, February 2019
Planners take a lot into account – TURF analysis
Figure 32: TURF analysis – Special planning considerations, February 2019
Varied activities for kids are most important among parents
Figure 33: Special considerations taken by parents when vacation planning, February 2019
Traveling with children is a skill
Figure 34: Attitudes toward children as travel companions – nets, by generation and parental status, February 2019
Parents have a lot to consider – TURF analysis
Figure 35: TURF analysis – Special planning considerations, February 2019
Relishing familiarity
Figure 36: Planning considerations, none of the above, by segment, February 2019
Figure 37: Special planning considerations, by segment, February 2019
Destination attitudes break with some predicted trends
Figure 38: Attitudes toward vacation destinations – Nets, February 2019
Kid-free couples seek relaxation; families look for energization
Figure 39: Attitudes toward vacation destinations – Any agree, by segment, February 2019
Minority travelers have safety concerns
Figure 40: Safety concerns when vacation planning, by race and Hispanic origin, February 2019
Hispanics most concerned about their pets
Figure 41: Pet concerns during vacation planning, by race and Hispanic origin, February 2019
BOOKING TIMEFRAMES
Last-minute booking has an audience
Figure 42: Vacation aspects booked ahead of time, February 2019
Planning is settled a month or more before the trip
Figure 43: Preferred lead time in booking vacation components, February 2019
Young travelers plan for the near future
Figure 44: Advance booking behaviors, by age, February 2019
Date flexibility is a big factor in lead time
Figure 45: Preferred lead time in select booking vacation components, February 2019
VACATION INSPIRATION
Inspiration comes from the people you know
Figure 46: Sources of travel inspiration, February 2019
Social channels have overtaken traditional media for inspiration
Figure 47: Travel inspiration sources, by segment, February 2019
Instagram – a burgeoning TripAdvisor?
Figure 48: Sources of travel inspiration, by generation, February 2019
Repeat visits rely most on first impressions
Figure 49: Reasons for revisiting a vacation destination, February 2019
Nostalgia is overblown
Figure 50: Effect of nostalgia on repeat visitors, by generation, February 2019
Revisiting destinations – TURF analysis
Figure 51: TURF analysis – Repeat visitation, February 2019
Figure 52: TURF analysis – Repeat visitation, parents, February 2019
CHANGING VACATION PLANS
Time constraints limit experiences
Figure 53: Reasons for altering plans, February 2019
Millennials and Gen Z need help planning out trips
Figure 54: Reasons for altering plans, by generation, February 2019
Younger generations are also opportunistic
Figure 55: Finding better things to do than original plans, by generation, February 2019
Figure 56: Openness to changing travel plans based on a financial offering, by generation, February 2019
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE CONSUMER 
TURF Methodology