Survey shows trouble on horizon for American travel industry

A recently conducted survey indicates that the American travel industry may have to prepare for a significant decline in leisurely travel, as an increasing number of travelers think twice about going on distant, expensive holidays, due to worrying signs that the US economy is heading into recession, as well as the on-going problem of high petrol prices and rising airfare. The survey, entitled “The State of the American Traveler” was conducted by a group called Destination Analysts, and it found that fully 45.8 percent of the 1,000 respondents have decided to cut back on their travel plans, due to the current economic concerns.

Not only will Americans be going on fewer holidays, but they will also spend less when on trips and, indeed, at home, when it comes to leisurely activities. Nearly 30 percent of travelers have indicated a cut in their spending habits. Perhaps even more troubling for the airline and hospitality industry is the increasing popularity of something referred to as a “staycation.” This simply involves people spending their time off from work at home and a total of 23.6 percent of respondents indicated that this is what they did this past year. This figure is expected to rise to 28.5 percent in the coming months, as an ever increasing number of people see the financial benefits of staying at home.

Erin Francis, Destination Analysts’ managing partner, noted that it is likely that this trend will continue in the near future and that people who do go on vacations will choose destinations that are closer to their place of residence, in order to cut down on transportation costs. Francis argues that the only way for hotels, resorts and airlines to weather the storm is if they can offer clients impressive discounts and bargains.