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Travel Trends

More people are using the Internet: According to a recent comScore Networks announcement, 747 million people 15 and over used the Internet worldwide in January 2007, a 10% increase over January 2006. China now represents the second-largest Internet population in the world, with 86.8 million users, after the United States, which rose 2% year-over-year to 153.4 million users age 15 or older in January 2007.

Hotel surcharges and hidden fees triple since 2003: “According to PriceWaterHouseCooper’s Hospitality Division, hotel surcharges and hidden fees have produced revenues of $1.6 billion in 2006.This was a 7% increase over the previous year. Four years ago, the industry generated $550 million in surcharges and fees. This means revenue have almost tripled since 2003." Here are some of the surcharges and fees hotel guests may be faced with at check out time:

• early check in fee
• early check out fee
• shuttle service fee
• baggage-holding fee
• housekeeping fee
• mini bar deposit
• mini bar restocking fee
• ice and bottled water charges
• room service surcharge
• room service delivery fee
• bartender charge
• room block fees
• guaranteed date fees (for groups)
• in-room safe surcharge
• room set/re-set charges
• internet service
• phone service
• fax service
• business center
• fitness room
• golf club transfer fee
• resort amenity fees
• pet fees
• tourism promotion fees
• energy surcharge

Hotel sites go back to basics: “Hotels have awakened to the challenge from online travel agencies, and they are shifting money into online marketing to meet it, according to a worldwide study of hospitality executives. The study found that 68% of hoteliers plan to shift their budgets from offline to online marketing in 2007. Website optimization was listed most often (72%) by hotel execs, followed by search optimization and organic search (68%) and website redesign/design (62%). Only 17% of respondents named consumer-generated media and blogs as bringing high ROI.”

Boutique hotels offer what chains can’t: “More hotel guests are showing an interest in the type of originality and character found at boutique hotels. As travelers become more adventurous and discerning, the small luxury and boutique industry is at their service. John Sears, executive vice president of Boutique Hotels & Resorts International, an independent network of boutique hotels under one brand name, says visitors want their hotel address, like their home address, to reflect personal taste and standards. Commercial luxury hotels are part of a bigger organization that is constantly watching their labor costs, while smaller boutiques look for service to the customer first and foremost -- unconventional in today's business model.”

Hyatt competes for business travelers: “Inspired by the changing landscape of contemporary, multi-tasking business travelers, Global Hyatt Corporation unveiled Hyatt Place, an innovative hotel concept with a strong appeal to the newly identified target audience. Hyatt Place caters to this seismic shift in lifestyle and offers travelers a balanced mix of comfortable and functional guestroom amenities such as: 42-inch high-definition televisions with next generation entertainment content; free Wi-Fi access; a comfortable, eight-foot sectional sofa-sleeper, all within an oversized, suite-like room with 20% more space than the average hotel room. The new concept was based in part on the findings of extensive consumer research commissioned by Hyatt. The study shows more than 90% of traveling respondents surveyed said they do not separate their lives into personal or professional silos because their work and leisure time overlap. Additional findings from the study:

• Half of the respondents are simultaneously engaging in personal and professional activities. When working at home, 71% also watch TV, 53% listen to music and 59% use the Internet.
• 46% of all respondents said they have more time to themselves when they travel for business, jumping to 57% among those who have children.
• More than 40% said they would forego sex, coffee or use of their cell phone in exchange for a good night’s sleep on the road.

Growth for hotel market: “The supply of U.S. hotel rooms is expected to grow by 2.5% this year, or faster than last year, according to Lodging Econometrics, but the market should remain healthy throughout 2007, say various forecasts.

“Revenue per available room rose 7.4% last year despite only marginal growth in room occupancy, according to Smith Travel Research. RevPAR growth is being driven by room rates rather than occupancy, which has started to slip, but a spokesman said much of that is due to sophisticated yield management on the part of hotels.

Affluent Americans spend more time on the Internet: “According to a study on affluence and online activity by JupiterResearch, Americans with annual household income over $100,000 spend a median of 17 hours a week online, compared with 14 hours for everyone else. They also are more aware of advertising and are more active online. The study found that 20% of affluent people visit Web sites dedicated to business compared with 11% of other folks, and 37% of affluent people did research for work online, compared with 27% of non-affluents. Because the affluent are so focused on searching for information, most display ads don't work on this important demographic. Search advertising works better than banner ads and pop-up ads.”

Boomers go online: According to a study by ThirdAge Inc. and JWT BOOM of adults 40+ years of age, over 72% of ThirdAgers access the Internet from broadband in their homes, which is significantly more than the national average across all age groups. Based on survey findings, over 96% share information and details about new discoveries with their family, and 71% share with their co-workers, making this cohort one of the most active groups in the viral marketplace. Additional topline findings about this market segment:

• 92% have read about a Web site in a print article and then visited online
• 89% have seen a print ad and later visited the online site
• 83% have seen a Web site advertised on television and later visited it online
• 79% would respond to promotional e-mails about products and services
• 65% will visit a Web site address after hearing it on a radio

 
Reviews make a difference: “One in three Internet users report their purchase decisions are influenced by sites with social content, Amazon being the most influential, according to a report from iProspect and JupiterResearch recently released.

“The study sought to measure how consumers use social networking sites. The survey defined a social networking location as one that lets users post their own content. In Amazon's case, that means reviews.

Among other findings in the survey:

• “Search engines get more visitors than social networking sites. Forty percent of adults surveyed visit Yahoo! on a daily basis versus 12% for MySpace.
• “Up to 90% of visitors to social networking sites don't post. An iProspect spokesman said the item marketers should take away from the survey is that the brands that exploit the two-way communication potential of Web 2.0 will gain an edge over competitors.”

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