State Tourism - US - August 2013

SCOPE AND THEMES
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
Mosaic Segmentation
EXECUTIVE SUMMARY
The market
Figure 1: Expenditures by domestic tourists on tourism-related goods and services, and fan chart forecast, at current prices, 2008-18
Market drivers
Demographic factors
Figure 2: Domestic travel for vacation or personal reasons in the past year, by marital status, age groups, and household income groups, May 2013
The impact of marital status
Age is a factor
Wealthier consumers most likely to travel domestically
The consumer
Most travel with spouses; nearly a quarter travel with kids younger than 18
Figure 3: Typical domestic travel companions, May 2013
Beaches, nature sites most likely to influence choice of destination
Figure 4: Influence of outdoor activities on destination choice, May 2013
Affordable hotels, drivable destinations factor most into travel plans
Figure 5: Influence of accommodations/travel and other activities on destination choice, May 2013
Domestic vacationers value unique experiences, local flavor
Figure 6: Unique experiences that are important in destination choice, May 2013
What we think
ISSUES AND INSIGHTS
Targeting Hispanics for domestic travel
The issues
The implications
Appealing to Millennial women
The issues
The implications
Meeting expectations of affluent travelers
The issues
The implications
TREND APPLICATIONS
Trend: The Power of One
Trend: Extend My Brand
Mintel Futures: Old Gold
MARKET SIZE AND FORECAST
Key points
Economic recovery increases confidence in spending on domestic travel
Total domestic tourism expenditures and forecast
Figure 7: Expenditures by domestic tourists on tourism-related goods and services, at current prices, 2008-18
Figure 8: Expenditures by domestic tourists on tourism-related goods and services, at inflation-adjusted prices, 2008-18
Fan chart forecast
Figure 9: Expenditures by domestic tourists on tourism-related goods and services, and fan chart forecast, at current prices, 2008-18
MARKET DRIVERS
Key points
Improving economy translates to increases in travel spending
Consumer confidence in Q2 2013 at highest level since Q3 2007
Figure 10: University of Michigan’s Index of Consumer Sentiment (ICS), Q1 2007-Q2 2013
Travel sentiment index increases alongside consumer confidence
Figure 11: Overall Traveler Sentiment Index, U.S., March 2007-April 2013
Unemployment declining slowly
Figure 12: U.S. unemployment and underemployment rates, January 2007-June 2013
Average state tourism office budgets increase—drive revenues
Figure 13: State Tourism Office Budgets (average), FY 2000-01 to FY 2011-12
Household income decline likely causing travel cutbacks
Fall in median household income bottoms out
Figure 14: Median household income, in inflation-adjusted dollars, 2001-12
Household income drives domestic vacation travel spending
Figure 15: Domestic travel in the past year, by household income, May 2013
Aging population benefits state tourism
Figure 16: U.S. population, by age, 2008-18
55+ are more likely to have vacationed domestically in past 12 months
Figure 17: Domestic travel in the past year, by age, May 2013
DEMOGRAPHIC PROFILE OF DOMESTIC TRAVELERS
Key points
Nearly two thirds have traveled domestically in the last year
Figure 18: Traveled more than 100 miles domestically within the past 12 months, by key demographics, January 2012-March 2013
A majority travel for vacation; only 10% travel for business
Figure 19: Purpose of last domestic trip of 100 miles or more within the past 12 months, January 2012-March 2013
Lifestyle segments that tend to travel most
Figure 20: Traveled more than 100 miles domestically within the past 12 months, by Mosaic segments, January 2012-March 2013
Specific lifestyle segments report significantly more business travel
Figure 21: Purpose of last domestic trip of 100 miles or more within the past 12 months, by Mosaic segments, January 2012-March 2013
Region of residency factors into likelihood of domestic travel
Figure 22: 10 federal regions, 2013
Figure 23: Traveled more than 100 miles domestically within the past 12 months, by federal region, January 2012-March 2013
Residents of Regions I and II most likely to travel for vacation
Figure 24: Purpose of last domestic trip of 100 miles or more within the past 12 months, by federal region, January 2012-March 2013
Florida, California, and Texas top list of most visited states in past year
Figure 25: Primary destination state of any domestic trips taken within the past 12 months, by age, January 2012-March 2013
Black respondents most likely to visit Florida; Asians most likely to visit California
Figure 26: Primary destination state of any domestic trips taken within the past 12 months, by race/Hispanic origin, January 2012-March 2013
Residents of East, Southeast, Midwest regions most apt to visit Florida
Figure 27: Top five primary destination states of last domestic trip taken within the past 12 months, by 10 federal regions, January 2012-March 2013
SEGMENT OVERVIEW
Key points
All segments post growth from 2011-13
Domestic tourism expenditures, by segment
Figure 28: Expenditures by domestic tourists on tourism-related goods and services, by segment, 2011 and 2013
Figure 29: Expenditures by domestic tourists on tourism-related goods and services, by segment, 2008-18
SEGMENT PERFORMANCE
Key points
Transportation leads market with 41.5% share, but grows slowly
Figure 30: Expenditures by domestic tourists on tourism-related transportation (including gasoline), at current prices, 2008-18
Accommodations account for nearly 20% of the market
Figure 31: Expenditures by domestic tourists on tourism-related accommodations, at current prices, 2008-18
Food services and drinking places comprise close to 15% share
Figure 32: Expenditures by domestic tourists on tourism-related food services and drinking places, at current prices, 2008-18
Entertainment and recreation accounts for about 10% of the market
Figure 33: Expenditures by domestic tourists on tourism-related entertainment and recreation, at current prices, 2008-18
Other tourism-related products and services worth about $105 billion
Figure 34: Expenditures by domestic tourists on other tourism-related other goods and services, at current prices, 2008-18
MARKETING STRATEGIES
 OVERVIEW
Print, online dominate share of destination marketing budget allocations
Figure 35: Destination marketing organization leisure marketing budget allocation, 2012
Hawaii, California, Illinois top state tourism marketing budgets in 2012
Figure 36: State tourism office budgets, FY2010-11 and FY2011-12
State tourism marketing slogans
Figure 37: State tourism marketing slogans, 2012
 SELECT STATES’ TOURISM STRATEGIES
Hawaii: Islands of Aloha
Print ads
TV presence
California: Find Yourself Here
Website
Figure 38: California tourism webpage, 2013
TV presence
Figure 39: California travel television ad, 2013
Illinois: Mile After Magnificent Mile
Figure 40: Illinois tourism webpage, 2013
TV presence
Figure 41: Illinois travel television ad, 2013
Florida: Must be the sunshine
Figure 42: Florida tourism webpage, 2013
Print ads
TV presence
Figure 43: Florida travel television ad, 2013
Texas: It’s Like a Whole Other Country
Figure 44: Texas tourism website, 2013
Print ads
TV presence
Figure 45: Texas travel television ad, 2013
Michigan: Pure Michigan
Figure 46: Pure Michigan website, 2013
Print ads
Figure 47: Michigan’s Upper Peninsula print ad, 2013
TV presence
Figure 48: Michigan travel television ad, 2013
Montana: Get Lost
Figure 49: Montana Chicago transit poster ads, 2013
Print ads
Virginia Is For Lovers
Connecticut: Still Revolutionary
Wisconsin: Picture the Fun
DOMESTIC TRAVEL IN THE PAST YEAR
Key points
Nearly two thirds traveled domestically for vacation in the past year
Figure 50: Domestic travel in the past year, by age, May 2013
Domestic travel increases with household income
Figure 51: Domestic travel in the past year, by household income, May 2013
Married respondents most likely to travel domestically
Figure 52: Domestic travel in the past year, by marital/relationship status, May 2013
TYPICAL DOMESTIC TRAVEL COMPANIONS
Key points
Most respondents report traveling with spouse
Figure 53: Typical domestic travel companions, by gender, May 2013
55+ most likely to travel with spouses; 25-54 most likely to bring kids
Figure 54: Typical domestic travel companions, by age, May 2013
Women aged 18-54 travel with spouse more than men aged 18-54
Figure 55: Typical domestic travel companions, by gender and age, May 2013
Travel with spouses increases with household income
Figure 56: Typical domestic travel companions, by household income, May 2013
TRAVEL PLANNING RESOURCES
Key points
Most use online resources when planning domestic travel
Figure 57: Travel planning resources, online vs. offline, May 2013
Seniors least likely to research travel
Figure 58: Travel planning resources, by age, May 2013
$100K+ households most likely to use online sources for travel planning
Figure 59: Travel planning resources, by household income, May 2013
Presence of children means higher rate of travel resource use
Figure 60: Travel planning resources, by presence of children in household, May 2013
INFLUENCE OF OUTDOOR ACTIVITIES ON DESTINATION CHOICE
Key points
Beaches and nature sites most likely to influence destination choices
Figure 61: Influence of outdoor activities on destination choice, by age, May 2013
Presence of children significantly influences destination choices
Figure 62: Influence of outdoor activities on destination choice, by presence of children in household, May 2013
INFLUENCE OF ACCOMMODATIONS/TRAVEL AND OTHER ACTIVITIES ON DESTINATION CHOICE
Key points
Affordable hotels, shopping influence travel destination choices
Figure 63: Influence of accommodations/travel and other activities on destination choice, by age, May 2013
Less affluent say ability to stay with friends is important
Figure 64: Influence of accommodations/travel and other activities on destination choice, by household income, May 2013
FACTORS IMPORTANT IN DESTINATION CHOICE
Key points
Local scenery, unique experiences top list of important vacation factors
Figure 65: Factors important in destination choice, May 2013
Seniors least likely to consider a range of factors in choosing destination
Figure 66: Factors important in destination choice—any important, by age, May 2013
Lower-income travelers most apt to consider local food, art, kid-friendly
Figure 67: Factors important in destination choice—any important, by household income, May 2013
Households with kids influenced to choose destination by many factors
Figure 68: Factors important in destination choice—any important, by presence of children in household, May 2013
TOURISM ADVERTISING AND INFLUENCE
Key points
Half of respondents may have seen ads, but only a quarter are influenced
Figure 69: Types of tourism advertising seen and influence on choosing state, May 2013
As respondents age, they are less likely to have seen travel ads
Figure 70: Tourism advertising seen, by age, May 2013
Most affluent least likely to report seeing travel ads
Figure 71: Tourism advertising seen, by household income, May 2013
Respondents with children most likely to have seen travel ads
Figure 72: Tourism advertising seen, by presence of children in household, May 2013
IMPACT OF RACE AND HISPANIC ORIGIN
Key points
Blacks, Hispanics least likely to report domestic travel
Figure 73: Domestic travel in the past year, by race/Hispanic origin, May 2013
Blacks, Hispanics look to save money by staying with family/friends
Figure 74: Influence of accommodations/travel and other activities on destination choice, by race/Hispanic origin, May 2013
Blacks, Hispanics more apt to consider a range of factors for travel
Figure 75: Factors important in destination choice—any important, by race/Hispanic origin, May 2013
Blacks, Hispanics more likely to have seen travel ads of all types
Figure 76: Tourism advertising seen, by race/Hispanic origin, May 2013
APPENDIX – OTHER USEFUL CONSUMER TABLES
Domestic travel in the past year
Figure 77: Domestic travel in the past year, by gender and age, May 2013
Figure 78: Domestic travel in the past year, by employment, May 2013
Figure 79: 10 federal regions, 2013
Figure 80: Domestic travel in the past year, by standard federal region, May 2013
Figure 81: Domestic travel in the past year, by standard federal region, May 2013
Typical domestic travel companions
Figure 82: Typical domestic travel companions, by marital/relationship status, May 2013
Figure 83: Typical domestic travel companions, by presence of children in household, May 2013
Travel planning resources
Figure 84: Travel planning resources, by gender, May 2013
Figure 85: Any planning resources, by marital/relationship status, May 2013
Influence of outdoor activities on destination choice
Figure 86: Influence of outdoor activities on destination choice, by gender and age, May 2013
Figure 87: Influence of outdoor activities on destination choice, by household income, May 2013
Figure 88: Influence of outdoor activities on destination choice, by marital/relationship status, May 2013
Impact of race and Hispanic origin
Figure 89: Typical domestic travel companions, by race/Hispanic origin, May 2013
Figure 90: Travel planning resources, by race/Hispanic origin, May 2013
APPENDIX – TRADE ASSOCIATIONS