Abstract
This report covers travel taken outside of the U.S. states, with at least one night of paid-for accommodation. The analysis focuses mainly on commercial accommodation for hotels, motels and bed and breakfasts.
Though many may consider the outbound travel market a mature one, only 30% of Americans hold valid passports and only 41% have traveled outside the U.S. in the past three years. This indicates that many Americans are not willing to, or do not have the means to, travel outside the U.S.
Despite this, the outbound travel market, both in terms of number of outbound travelers and in spending abroad, grew 7.6% and 21.5% respectively from 2003 to 2005. International travel spending by U.S. residents exceeded year 2000 levels in 2005 when spending reached $95 billion. Spend on international travel by U.S. residents returned to 2000 levels in 2004, having declined each year in between. The number of outbound trips is also forecast to exceed year 2000 levels in 2006 with an estimated 61 million outbound travelers. Again it was not until 2004 when 2000 levels where reached after successive years of decline in the between years.
This rebound in outbound travel comes on the heals of a slump in outbound travel from 2000-2003 with year 2003 levels of spending and person trips being the low point with only 54 million outbound trips and $78 million in spending. Growth has been driven by an improving economy and growing household income levels, in spite of a weak dollar, which makes travel to many destinations more expensive, and on-going terrorist threats.
In this report, Mintel clearly identifies the principal external factors driving or curtailing growth. Exclusive consumer research reveals the attitudes, needs and behavior of consumers, with analysis broken down both by demographic characteristics, and by segment.
Six years of specific sales data provide a factual and impartial presentation of the market as a whole. Mintel also evaluates the performance of individual sectors in the market, and provides information about the major companies and brands. Using the SPSS forecasting package, Mintel creates a five-year forecast of U.S. retail sales, revealing potential opportunities for growth and product development.
Table of Contents
- Introduction and Abbreviations
- Introduction
- Definition
- Abbreviations and terms
- Abbreviations
- Terms
- Executive Summary
- State of the market
- Economy and demographics drive outbound market
- Ties to family and friends draws Asians and Hispanics to travel
- Lack of paid vacation hinders ability to travel abroad
- Number of person trips and spending abroad grows
- Who is traveling abroad?
- Complexity of booking international airfare means many still rely on
travel agents
- Asians and Hispanics travel abroad the most
- Most travel outside the U.S. with spouse
- Income and ethnicity influence willingness to visit new destinations
- Future largely dependent on economy and potential security threats
- Market Drivers
- GDP important macroeconomic factor
- Figure 1: U.S. gross domestic product, 2000-05
- Household income
- Figure 2: Distribution of U.S. households, by household income, 1999 and
2004
- Income by age
- Figure 3: Median household income per household member, by age of
householder, 2003
- Figure 4: Households with discretionary income, 2000
- Number of vacation days
- Figure 5: Employees with access to paid vacation and paid holidays,
1999-2005
- Figure 6: Average number of annual vacation days for select countries
- Terrorism, avian flu and other temporary setbacks
- American population by age
- Figure 7: U.S. population, by age, 2000-10
- Race/ethnicity significantly influences outbound travel
- Figure 8: U.S. population by race and Hispanic origin, 2000-10
- Exchange rates
- Figure 9: Selected exchange rates against the U.S. dollar, 2000-05
- Special events and media influence patterns
- Market Size and Trends
- Travel spending
- Figure 10: Spending on fares and travel-related expenses by U.S.
citizens outside the United States, 2000-05
- Figure 11: Spending on fares and travel-related expenses by U.S.
citizens outside the United States, at current and constant prices, 2000-05
- Figure 12: Graph: Spending on fares and travel-related expenses by U.S.
citizens outside the United States, at current and constant prices, 2000-05
- Figure 13: U.S. international travel and tourism balance of trade,
2000-05
- Figure 14: U.S. international travel and tourism balance of trade, by
region, 2005
- Figure 15: Average expenditures outside U.S., by U.S. citizens, 2004*
- Number of U.S. residents traveling abroad
- Figure 16: Number of domestic, inbound and outbound travel person trips,
1999-2006
- Figure 17: Number of U.S. residents who took international leisure trip,
1999-2004
- Where leisure travelers go
- Figure 18: International destinations visited for leisure by U.S.
residents, 1999-2004
- Figure 19: U.S. citizen air traffic* to overseas regions, canada and
mexico, 2001-05
- Figure 20: Preliminary U.S. citizen air traffic**, January-May 2006
- Canada and Mexico
- Canada
- Figure 21: U.S. resident overnight trips to Canada from the U.S., by
method of transport used, 2000-04
- Mexico
- Figure 22: U.S. resident overnight trips to Mexico from the U.S., by
method of transport used, 2000-04
- Market Segmentation
- Purpose of trip
- Figure 23: Main purpose of trip, all international travelers, 2004
- Figure 24: First international trip, all international travelers, 2004
- Figure 25: Mean and median number of international trips in past 12
months, all international travelers, 2004
- Figure 26: Nights outside the U.S., all international travelers, 2004
- Figure 27: Number of countries visited, all international travelers, 2004
- Figure 28: Demographic characteristics of outbound travelers, all
international travelers, 2004
- Supply Structure
- Introduction and Overview
- Introduction
- Figure 29: Method of booking international air trip, 2004
- Figure 30: Method of booking international air trip, all international
travelers, 1999-2004
- Booking international trips online grows dramatically
- Figure 31: Total U.S. travel booking sales made via the Internet, at
current and constant prices, 2000-05
- Figure 32: Top online travel sites*, number of sessions**, January-April
2006
- Hotel companies begin limiting supply to third party agencies
- Major online/offline agency changes hands
- Online and offline agencies
- Figure 33: Top ten travel agencies, gross sales volume, 2004-05
- Transportation and lodging
- Air travel
- Figure 34: Number of domestic and international enplanements, 1999-2005
- Figure 35: Top ten airlines by scheduled passengers carried,
international and domestic, 2005
- Leading international airline profiles
- Deutsche Lufthansa A.G.
- British Airways p.l.c.
- Air France-KLM S.A.
- American Airlines, Inc.
- Singapore Airlines Ltd
- Cathay Pacific Airways, Ltd.
- Emirates
- Scandinavian Airlines System (SAS)
- Alitalia-Linee Aeree Italiane S.p.A.
- Cruises
- Figure 36: Embarkations of north american cruise industry, by region of
world, 2003 and 2004
- Major cruise company profiles
- Carnival Corporation & Carnival p.l.c.
- Royal Caribbean Cruises Ltd.
- Star Cruises Limited/NCL Corporation Ltd. (Norwegian Cruise Line)
- Hotels
- Figure 37: International systemwide revenue for top ten global
hoteliers, 2003 and 2005
- Major hotel company profiles
- InterContinental Hotels Group (IHG)
- Marriott International, Inc.
- Accor
- Best Western International
- Carlson Hospitality
- Starwood Hotels & Resorts Worldwide, Inc.
- Cendant/Wyndham
- Global Hyatt Corporation
- Hilton Hotels Corporation
- Choice Hotels International, Inc.
- Agency Profiles
- American Express
- Carlson Wagonlit Travel (Carlson Companies)
- Expedia Inc. (formerly IAC/InterActive Corp)
- HRG North America
- BCD Travel
- Travelocity
- TQ3 Navigant (Navigant International)
- AAA Travel
- Travelport
- Priceline.com
- The Consumer
- Introduction
- Summary
- Lack of maturity
- Method of booking
- Spouses/significant others win out as travel companions
- Spice and variety in destinations?
- More money or more vacation time?
- Possession of valid passport
- Figure 38: Possess valid passport, January-September 2005
- Figure 39: Possess valid passport, by household income,
January-September 2005
- Figure 40: Possess valid passport, by level of educational attainment,
January-September 2005
- Figure 41: Possess valid passport, by race/ethnicity, January-September
2005
- Incidence of foreign travel in last three years
- Figure 42: Incidence of foreign travel in last 3 years,
January-September 2005
- Figure 43: Incidence of foreign travel in last three years, by household
income, January-September 2005
- Figure 44: Incidence of foreign travel in last three years, by level of
education attained, January-September 2005
- Figure 45: Incidence of foreign travel in last three years, by
race/ethnicity, January-September 2005
- Spending on last foreign trip
- Figure 46: Spending on last foreign trip, January-September 2005
- Figure 47: Spending on last foreign trip, by age, January-September 2005
- Figure 48: Spending on last foreign trip, by household income,
January-September 2005
- Figure 49: Spending on last foreign trip, by race/ethnicity,
January-September 2005
- Method of booking on last outbound trip
- Figure 50: Method of booking last outbound trip, August 2006
- Figure 51: Method of booking last outbound trip, by age, August 2006
- Figure 52: Method of booking last outbound trip, by household income,
August 2006
- Figure 53: Method of booking last outbound trip, by race, August 2006
- Figure 54: Method of booking last outbound trip, by presence of children
in household, August 2006
- Figure 55: Method of booking last outbound trip, by region of residence
of respondent, August 2006
- Travel party/companions on last outbound trip
- Figure 56: Travel party/companions on last outbound trip, August 2006
- Figure 57: Travel party/companions on last outbound trip, by age, August
2006
- Figure 58: Travel party/companions on last outbound trip, by household
income, August 2006
- Figure 59: Travel party/companions on last outbound trip, by Hispanic
origin, August 2006
- Reasons/activities for outbound trips
- Figure 60: Reasons/activities for outbound trips, August 2006
- Figure 61: Reasons/activities for outbound trips, by gender, August 2006
- Figure 62: Reasons/activities for outbound trips, by age, August 2006
- Figure 63: Reasons/activities for outbound trips, by hispanic origin,
August 2006
- Intention to travel to new destination on next outbound trip
- Figure 64: Intention to travel to new destination on next outbound trip,
August 2006
- Figure 65: Intention to travel to new destination on next outbound trip,
by age, August 2006
- Figure 66: Intention to travel to new destination on next outbound trip,
by household income, August 2006
- Figure 67: Intention to travel to new destination on next outbound trip,
by Hispanic origin, August 2006
- Figure 68: Intention to travel to new destination on next outbound trip,
by region, August 2006
- Opinions/intentions regarding outbound travel
- Figure 69: Opinions regarding outbound travel, August 2006
- Figure 70: Opinions regarding outbound travel, by gender, August 2006
- Figure 71: Opinions regarding outbound travel, by age, August 2006
- Figure 72: Opinions regarding outbound travel, by household income,
August 2006
- Figure 73: Opinions regarding outbound travel, by race/ethnicity, August
2006
- Figure 74: Opinions regarding outbound travel, by Hispanic origin,
August 2006
- Figure 75: Opinions regarding outbound travel, by level of educational
attainment, August 2006
- Future and Forecast
- Future trends
- Hispanics and Asians will drive outbound travel for VFR
- Figure 76: Generations, by race and Hispanic origin, 2005
- Electronic passport security concerns worry some
- Economy and terrorism have the potential to affect market most
- Increasing desire and ability to travel abroad keys to increasing market
- Market forecast
- Spending on fares and travel-related expenses by U.S. citizens outside the
United States
- Figure 77: Forecast of total spending on fares and travel-related
expenses by U.S. citizens outside the United States, at current and constant
prices, 2005-10
- Figure 78: Graph: Forecast of total spending on fares and travel-related
expenses by U.S. citizens outside the United States, at current and constant
prices, 2005-10
- Forecast Factors
- Appendix: Trade Associations
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