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Travel Trends

Online consumer reviews impact offline purchasers: “A study by comScore with The Kelsey Group shows that nearly one out of four Internet users reported using online reviews prior to paying for a service delivered offline by restaurants, hotels, travel, legal, medical, automotive and home services. Of those who consulted an online review, 41% of restaurant reviewers subsequently visited a restaurant, while 40% of hotel reviewers subsequently stayed at a hotel.

“Based on the survey, consumers were willing to pay at least 20% more for services receiving an ‘Excellent, or 5-star, rating than for the same service receiving a ‘Good,’ or 4-star, rating. More than three-quarters of review users in nearly every category reported that the review had a significant influence on their purchase, with hotels ranking the highest at 87%. Review users noted that reviews generated by fellow consumers had a greater influence than those generated by professionals.”

Online travel sales in Canada forecast to pass $11 billion: “Canadian online travel purchases will soar to more than $11 billion by 2009, from $8 billion this year, according to a speaker at the Canadian Tourism Commission’s Canada e-Connect e-tourism strategy conference. Flight Centre vice-president Sean Sutherland said younger-generation travelers will likely never get bored with booking their trips online, so growth opportunities in online travel abound. He said a lot of older travelers who used to like the online booking process now find themselves tired of spending countless hours checking out hotel reviews and destination reports.”

Four in five of all U.S. adults go online: “The number of U.S. Internet users grew 10% over the past year to reach an estimated 178 million, or 79% of adults, according to the latest Harris Poll. This is a steady rise over the past few years, from 77% in February/April 2006, 74% in February/April 2005, 66% in the spring of 2002, 64% in 2001 and 57% in spring of 2000. When Harris Interactive first began to track Internet use in 1995, only 9% of adults reported they went online.

“As Internet penetration continues to grow, the demographic profile of Internet users continues to look more like that of the nation as a whole. It is still true that more young than older people, and more affluent than low-income people, are online. However, 9% of those online are now age 65 or over (compared to 16% of all adults who are 65 or over), 39% of those online (compared to 47% of all adults) did not attend at least some college and 13% have incomes of less than $25,000 (compared to 17% of all adults).”

GLBT a large travel market: “Data indicate that the Gay, Lesbian Bisexual & Transgender market has a greater amount of disposable income and discretionary time on their hands than the straight population, so they can afford and enjoy travel more often.

“The Travel Institute estimates the U.S. travel market at $1.3 trillion. Working on the assumption that the GLBT community makes up 5% to 7% of the population (6.8% as measured by Witeck-Combs), this translates to GLBT travel spending of $65 billion at the low end and $91 billion at the high. The US Travel Industry Association (TIA) actually pegs GLBT travel at 10% of travel industry spending. eMarketer estimates US online leisure and unmanaged business travel sales in 2006 at $78.8 billion. Of this number, eMarketer estimates that GLBTs make up 8% of online travel sales, or $6.3 billion in 2006.”

Study reinforces online reviews’ impact on hotel bookings: “According to a new study by comScore and The Kelsey Group, 87% of those in search of hotels said reviews played a big part in their choice. What's more, 90% of people who trusted consumer-written reviews found the critiques to be accurate. The researchers said 24% of those who eventually pay for local services—such as restaurants, hotels and automotive shops—read online reviews before making a choice.

"The study showed consumers were so trusting of online reviews, they were willing to pay at least 20%, and up to 99%, more if a company was rated excellent or five-star than if a business received a good, or four-star, rating."

Now Google knows where you are: “Instead of showing you restaurants, hotels, and stores related to your keyword search, now Google automatically knows where you are. How? Some cell phones are GPS-enabled, and Google will use this for very accurate positioning. For cell phones without GPS, positioning is determined based on cell tower triangulation and Google Maps, accurate within 10 city blocks.” So what does this mean to you? “Having a listing with Google's Local Search will be more important than ever. This way, people can find you based on your menu, product lines, and services. Take the time for meaningful customer-based descriptions with lingo that your customer will use to find you.”

Top 11 luxury travel and lifestyle trends for 2008: Karen Weiner Escalera lists some “forces that will help dictate where and how the affluent will spend their money in the New Year.

1. Traditional demographics won’t define luxury consumers. Buying behavior, geography, interests and connoisseurship will become the new definition of wealthy, particularly in emerging markets where luxury status will be displayed outwardly via symbols: luxury goods and labels such as Louis Vuitton handbags or Chanel cuffs, which are ubiquitous among their peers.
2. Mature affluents are gravitating to ‘stealth wealth.’ They seek products that express personal interests and style while requiring connoisseurship. They prize uniqueness and limited-edition luxe: originals, one-of-a-kind objects, which are expensive and highly collectible.
3. Relationships with family and friends take center stage. Family travel is growing at a faster rate than all other sectors of leisure travel. A recent survey of American Express travel agents revealed a significant rise in luxury travel among families; 82% wanted high-end hotels with kids programs, and 56% were traveling with nannies. Parents, grandparents and friends are looking to travel as a way to reunite, and to celebrate life’s landmark events.
4. Creativity checks in. The right side of the brain will trump the left as creativity and design sell.
5. Concierges are king. A lack of time and an overload of information for the affluent to sort through mean they will pay for an expert to create lives they desire. Personal concierges are all the rage. Luxury travel brands will be expected to go beyond providing luxury service and hospitality in their hotel, cruise ship or airline. They will be pressed to offer quality, inside-track local information and time-saving services.
6. Altruism and social responsibility are back. Today’s wealthy consumers want to believe their consumption is also helping to save the planet or that there is an altruistic motive behind it all.
7. Health, well-being and looking good continue to move up in financial priorities. Spas are going well beyond the dedicated spa outlet or the home spa, and branching out into mobile spas, “macho” spas for men, and even for pets. Five star hotels are increasingly offering medi-healthy holiday packages in alliances with neighboring medical facilities. Next step? A key buzzword will be “age management” programs to help the rich look and feel young.
8. Saving time. This is the greatest luxury in our 24/7 world. Any service that achieves this will be a big winner.
9. Big money follows culture and is big news. Publicity seekers should take note of the international coverage that cultural events are receiving. Art tie-ins also make good financial sense. More and more hotels are realizing that art attracts a certain art-savvy clientele, who are happy to spend freely on suites, spa treatments and fine wines. We will continue to see hotels become houses of culture, with in-house museums, curators, artists as interior designers, and stepped up marketing efforts that embrace culture. We will see more luxury retail and commercial spaces being treated as curatorial, artistic projects.
10. The affluent are looking for unique experiences. Luxury is being redefined as experiences because consumers are overloaded with products. Today’s increasingly well-traveled individuals want new and exciting experiences to be intrigued, entertained and enlightened. They will spend top dollar to be first, or reach the most remote, exotic places. Acquiring knowledge and expressing one’s creative side also rate highly, with hotels, resorts and destination management companies going well beyond cooking classes to offer everything from videography and tea ceremonies, or instruction in the visual arts.
11. Space, space and more space is luxury. Refurbishing will come to mean over-sizing hotel guest room and ship cabins, not just the usual interior furnishings and amenities. And top hotel suites will get larger and pricier, appealing, as they must, to the super wealthy who are accustomed to homes of 10,000 square feet or more.

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