Looking Forward: 2012 US Leisure Travel Outlook

Market Overview Report

by Henry Harteveldt

with Jeffrey Breen

Abstract

As 2012 arrives, travel sellers wonder how the year will compare to 2011. Though Atmosphere doesn’t believe it will be materially worse for US leisure travel, we aren’t convinced that 2012 will be the strongest of years either. Atmosphere believes three major factors will define travel in 2012. Uncertainty, reflecting the unstable US economy, is most important. Though 43% of travelers expect 2012 to be financially better off in 2012 than they were in 2011, the majority plan to hold travel spending steady next year. Fragmentation, stemming from the growing number of travel marketing, planning, and booking resources available to travelers, will have an enormous impact on travel distribution. For example, three in ten travelers now use “deal” sites like Groupon, LivingSocial, and others to get travel deals. The third driver, immediacy, is the result of mass adoption of both mobile (49% of travelers have a smartphone) and social media technology (85% have an account with a social networking site), along with travelers’ high expectations for “right now” customer service response and support.

Table of Contents

• On A 1-10 Scale, Expect 2012 To Be A 8
• Three Key Factors Will Define Leisure Travel in 2012
• Uncertainty Defines 2012 Travel Marketing And
  Selling
• New Channel Resources And Models Add To Distribution Fragmentation
• More Channels, More Resources—More Fragmentation
• Hyper-Connected Travelers Expect And Demand Immediate Access And Attention
• Recommendations
• Methodology
• Endnotes

List of Figures

1. Most Travelers Report Household Incomes Of $50,000 Or More A Year
2. Travelers Expect Their Personal Finances To Improve In 2012
3. More Than Half Of Leisure Travelers Took Steps To Earn Extra Income In 2011
4. Travelers Plan To Make “Big Ticket” Purchases In 2012 At Or Above 2011 Levels
5. Travel Sales Tend To Follow Auto Sales
6. Slightly More Travelers Plan To Cut Back Than Travel Or Spend More In 2012
7. US Leisure Travelers Focus On Lodging Costs To Save Money
8. Most US Leisure Travelers Are Not Brand Loyal
9. Some Leisure Travelers Will Consider Paying More For Better Experiences
10. Four in Five US Online Leisure Travelers Are Bookers
11. Bookers Use a Mix Of Online And Offline Resources To Plan Their Trips
12. Bookers Are More Likely To Book Through Suppliers Than Intermediaries
13. Three In 10 Travelers Have Used “Deal Of The Day” or “Flash Sale” Websites To Buy Travel
14. Smartphone Users Show More Interest In Productivity-Focused Tasks Than Transactions
15. Travelers’ Social Network Adoption Has Reached Saturation Levels

 
The report is 21 pages long and contains 16 endnotes.

For more information about this report or how to become an Atmosphere client, please contact us at sales@atmosgrp.com.