Agents Say US Leisure Travel Spending Recovering
Leisure travel spending is bouncing back in 2010 as U.S. consumer sentiment gradually repairs, but prices are beginning to firm again from recession lows, according to travel agents.
Travel specialists said momentum started building in the fourth quarter, and first-quarter travel bookings are well outpacing those of 2009. Per-trip spending is rising, especially on airfare, though lodging perks like free nights and meals are sticking around for now. Recession-era trends like shorter stays are still in place, but travelers are booking further in advance than they were last year.
The unprecedented six-day flight ban across much of Europe in the third week of April, prompted by the ash fallout from an erupting Icelandic volcano, impacted travel to and from the UK as well as the continent and complicated global air transport. The unwinding process has begun but could continue into May, travel agents said.
Michelle Morgan, president of Signature Travel Network, a Los Angeles-based cooperative of 190 travel agencies with 330 U.S. retail locations, said travel spending has increased alongside bookings.
"Consumer confidence is vitally important, and the strength of the stock market has translated into confidence to spend today and commit to travel in 2011," Morgan said. Broad-based recovery may wait till next year or 2012, but "business has been consistently strong over the past several months," she added.
She said sales for third- and fourth-quarter 2010 travel are healthy and up over 2009.
"Business on the books for next year is showing dramatic improvement over last year's sales performance for the same period," Morgan said. Meantime, cruise companies and hotels have raised rates.
River cruising has grown in popularity, as have travel destinations like Egypt, India and Morocco, Morgan said.
John Samuel, chief information officer for Bloomfield, NJ-based Club ABC Travel, which specializes in international value tours, said an upturn begun in 2009 continues, though a full recovery hasn't materialized yet.
"We are not back 100%, but the trend is definitely very encouraging," Samuel said. He described March bookings as "stellar" and his outlook for April and May as very optimistic. But January and February business, though good, fell a little short of expectations. Even so, bookings this year now stand at 2008 levels, constituting a vast improvement over 2009.
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Source - iMarketNews.com
