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Expedia Travel Trendwatchtm Summer Travel Outlook 2006 Expedia Travel TrendwatchTM BY CHRIS MCGINNIS Online at www.expedia.com/trendwatch Travelers Booking Summer Trips Earlier This Year Despite Larger Crowds and Higher Rates Where are Americans going on vacation this summer? Domestically, the most popular summer destina- tions based on vacation packages booked on Expedia.com include traveler favorites such as Las Ve- gas, Orlando, Honolulu, San Fran- cisco, Cancun, and New York. (See chart, page 2) How far in advance of your summer travel will you book your travel arrangements? More than Less than 6 Months 1 Month 8% 4-6 15% Months 17% TREND #1: TRAVELERS ARE jority (85 percent) of U.S. adults PLANNING AND BOOKING SUM- who are planning to travel this 20% MER VACATIONS EARLY THIS summer will book or have already 1 Month YEAR TO GET THE VACATION booked their travel plans at least 40% THEY WANT one month in advance1. In addi- tion, the Travel Industry Associa- 2-3 Months With the expectation of larger tion of America (TIA), recently crowds and higher rates, travelers reported that one in every three 85% book at least one month in advance are getting the message to book U.S. travelers is planning travel their summer trips earlier. An Expe- earlier this year than they did in Expedia.com survey by Harris Interactive of dia.com survey conducted by Harris 2005, with many already com- U.S. adults who plan to travel this June, July, and/or August.8 Interactive revealed that the vast ma- mitted to plans for their longest summer trip. INSIGHT AND EXPERTISE Expedia.com®, the world’s leading online travel service, introduces the fi rst issue of its quarterly report, Expedia Travel Trendwatch™, which focuses on the upcoming summer travel season. Chris McGinnis, a 20-year travel industry veteran most re- cently serving as a travel correspondent on CNN Headline News, is the editor of the Expedia Travel Trendwatch™. Each report will provide travelers with a treasure trove of trends, data and advice designed to help people make better travel decisions. Expedia Travel TrendwatchTM SIDENOTE: Summer is a critical time to take a vacation Summer Holiday Hotspots Memorial Day 4th of July Labor Day Of the total vacation days re- ceived annually, employed U.S. 1. Las Vegas 1. Las Vegas 1. Las Vegas adults planning to travel this 2. Orlando 2. Orlando 2. Honolulu summer will use an average of 3. Honolulu 3. Honolulu 3. Kahului (Maui) eight days of vacation during the 4. Cancun 4. Cancun 4. Cancun months of June, July and August2. 5. Kahului (Maui) 5. San Francisco 5. Orlando Considering employed U.S. adults Based upon Expedia.com vacation packages booked for these holiday weekends in 2005 typically receive an average of 12 3 vacation days per year , summer TRENDWATCH™ TIPS: creased airline ticket prices this year. is the time when most Americans Regardless, Americans are not plan- hope to enjoy more than half of Set the schedule for summer ning on staying home this summer. their hard-earned vacation days. travel. According Expedia.com’s survey, 55 Now is the time travelers should be percent of U.S. adults plan to fl y as According to the Expedia.com asking their bosses about taking much this summer as last summer 4 survey , 88 percent of U.S. adults vacation days. It’s also time to book and six percent say that they plan who plan to travel this sum- a babysitter or pet sitter for those on fl ying more despite rising airline mer will save a percentage of who don’t plan on taking the whole ticket prices in 20065. In fact, accord- their summer vacation spending family along. ing to the Leisure Travel Data Over- budget prior to their trip. Sum- view from Forrester Research, Inc. mer travelers plan to set aside, on Book your trip early. in March 2006, more than 35 million average, about 62 percent of the Early bookers are most likely to households are expected to spend a total cost of their vacation, with avoid sell-outs at popular destina- total of $74.4 billion on leisure travel 33 percent saying that they will tions and can usually take advan- online in 2006. set aside 100 percent. Accord- tage of advance purchase discounts. ing to Consumer Technographics With 85 percent of people booking at Compared to last summer, how Q3 2005 North American Travel least one month ahead of time this have increasing airline ticket Online Survey, leisure travelers year, travelers can’t afford to wait. prices in 2006 impacted your l average one trip per quarter and eisure travel flight plans for spend around $2,000 annually on If you’re booking late, don’t fret. their vacations. this summer? While last-minute deals are not as I plan on plentiful as in previous years, if you I plan on flying more are fl exible with dates and destina- this summer Top Summer Destinations tions, you can still save. Travelers flying less this summer than last can still get out of town by check- summer. 1. Las Vegas ing out the latest last-minute fl ight, than last 2. Orlando hotel, car rental and cruise deals at summer. 6% 3. Honolulu sites such as www.expedia.com/last- 39% 4. San Francisco minute. 5. Cancun 6. New York TREND #2: DESPITE GEN- 55% 7. Miami ERALLY HIGHER AIRLINE 8. Chicago TICKET PRICES, DEMAND FOR 9. Kahului (Maui) SUMMER TRAVEL REMAINS 10. San Diego STEADY. I plan on flying as much this summer as I did last summer. Based upon Expedia.com vacation packages Higher jet-fuel prices coupled with booked between June, July, and August 2005 Expedia.com survey by Harris Interactive of higher demand translates into in- U.S. adults who plan to travel this June, July, and/or August.8 Expedia Travel TrendwatchTM Airfares, a key cost-component ATA expects that the price will rise to TRENDWATCH™ TIPS: of many summer vacations, are $70 by summer. generally higher than last year. Lock it in! Some of the largest year-over-year Based upon Q1 bookings year- To avoid the dreaded middle seat fare increases, according to recent over-year on Expedia.com (January scenario or the possibility of another Expedia.com data are on the fol- – March 2006 vs. January - March fare increase, travelers who fi nd a lowing routes: Philadelphia to Las 2005), average ticket prices have great air deal should book it immedi- Vegas, up 33.8 percent; Washington, increased. (See chart) ately before it’s gone. D.C. to Chicago, up 33.8 percent; Dallas to Los Angeles, up 30 per- What goes up can also go down, Book a vacation package. cent. (See chart) however, with the following routes Those who book their fl ight and hotel experiencing the most signifi cant de- together as a vacation package Additionally, the Air Transport Asso- creases in average ticket prices from rather than booking separately will ciation (ATA) recently reported that all tickets booked during Q1 2006 save additional money. In fact, when airfares in the U.S. rose 10.6 percent versus Q1 2005. (See chart) it comes to booking an online vaca- for January and February 2006, over tion package that combines air, hotel the same period in 2005. and/or rental car, 56 percent of U.S. adults who plan to travel this sum- This trend contin- Largest Increases in Average Ticket Prices mer think packages are smart ways ues with many U.S. to save money6. airlines introducing From - To Increase multiple fare increases Philadelphia - Las Vegas 33.8% Travelers should use fl exibility to in recent months. Washington D.C. - Chicago 33.8% their advantage. Generally, travelers who depart and Dallas - Los Angeles 30.0% Airfare tracking fi rm return mid-week experience better Dallas - Las Vegas 29.2% Harrell Associates rates and smaller airport crowds. New York - Detroit 27.5% said that average Also, travelers should consider us- roundtrip economy New York - Las Vegas 25.7% ing online tools such as the Fare fare between the U.S. Chicago - Orlando 19.0% Compare Calendar on www.expedia. and Europe, booked Boston - Orlando 17.6% com/fl ights, which illustrates the in February 2006 for Seattle - San Diego 15.0% best rates recently found by other summer travel, was Select routes experiencing a significant increase in average Expedia.com customers on popular $910 compared to ticket price year-over-year from Q1 05 to Q1 06 based upon U.S. routes. Those who have fl exible $856 in February Expedia.com bookings. dates can then shift departure or 2005. return dates accordingly to ensure the best pricing. The price of fuel Largest Decreases in Average Ticket Prices will also affect ticket From - To Decrease TREND #3: SUMMER VACA- prices as airlines TIONERS ARE NOW BETTER pass on cost in- Denver - Phoenix -35.6% INFORMED AND PREPARED, creases to travelers. Chicago - San Antonio -26.9% THANKS TO THE INTERNET Data from the U.S. Seattle - Puerto Vallarta -26.1% Energy Informa- Miami - Cancun -24.5% Information- and advice-hungry tion Administration Denver - Las Vegas -23.3% travelers are turning to the Internet shows that the price Las Vegas - Denver -23.3% to fi nd and use tools such as user- of benchmark crude Chicago - Minneapolis -19.7% generated reviews and ratings. oil averaged $63.27 Chicago - New York -16.9% per barrel in the fi rst Atlanta - Jamaica -14.9% User-generated online reviews and quarter of 2006, up ratings are in hot demand, with Ex- Select routes experiencing a significant decrease in average 27 percent from fi rst pedia travelers posting over 100,000 quarter 2005.
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