Commentary

A Bird's-Eye View of Consumer Travel

In my last column for MediaPost I shared the findings of research conducted on the 2010 spending profiles of our users at About.com. Across all categories, we have consistently seen a consumer who has become -- and wants to remain -- a reflective spender, looking for value and using the Web to make informed decisions. Given that consumer travel is not a basic along the lines of food, clothing or shelter, how will the sector fare this year?

Travel, it turns out, is one of the two big-ticket purchases still on the to-do list for the American consumer, with 69 percent of our respondents planning a 2010 vacation. (The other big-ticket purchase is consumer electronics.) In fact, there are more people planning to increase their travel budgets (30 percent) than those who are cutting back (25 percent). Most interesting are the quantum changes in why and how people plan to travel. The definition of a vacation has also morphed: for more than half of the respondents a vacation means going away from home and does not include the kids, while a "staycation" is a family-centered activity.

Certain travel choices have become more starkly based on cost. Preference for a specific airline hardly matters at all in how air travel is chosen: a staggeringly low five percent said they would select flights based on preference for a certain carrier. Among the most important factors in choosing an airline, 73 percent of our respondents named price, while a surprising 84 percent ranked baggage fees as a paramount consideration.

Hotels fare slightly better. As with airline preference, only five percent declared loyalty for a particular hotel chain. Sixty-nine percent of those surveyed chose their hotel accommodations based on price, but closely behind at 61 percent was cleanliness, and immediately following at 56 percent was customer service. Amenities also carried some weight.

Brand preference in the cruise sector seems robust compared to hotels and airlines. While destination and price are primary to over 80 percent of respondents when choosing a cruise line, the reputation of the cruise line is cited by 51 percent of the study as crucial, with an additional 13 percent indicating that recommendations from friends and family play a role in their decision-making.

As in every other category we've looked at thus far, most respondents say they will research online for deals. Noticeably, the 2010 travel consumer begins the research process with search (62 percent) rather than by visiting either travel information or third-party booking sites. And, just as in all categories we've looked at to date, consumers want ads that offer discounts and coupons (57 percent), as well as money-saving tips (65 percent) and destination guidance (65 percent). In travel, however, those beauty-shot ads that show alluring travel destinations still work their magic with consumers.

Until recently, the travel industry has been well served by its aspirational DNA. However, the consumer will not remain long in the current cost-conservative mindset, and airlines and hotels should be gearing up now to recapture their loyalty when the mindset shift occurs.

Next story loading loading..