Insights January 2009
Affluent Travelers Remain Active Travelers
Although most travel service suppliers have watched many of their clients “trade down” to more affordable transportation, lodging and related options in recent months, “affluent travelers” (those with an annual household income in excess of $150,000, the top 8% of U.S. households) appear to be bucking the trend.
According to our just-released 2008 Portrait of Affluent TravelersSM, fully 97% of these travelers took a domestic leisure trip during the previous 12 months (for an average of just under 5 leisure trips), and a remarkable 41% took at least one trip outside the United States (for an average of just over 2 such trips). Almost half (45%) took at least one business trip during the previous year (for an average of approximately 8 trips). Among them, almost all took at least one domestic business trip (for an average of 6), and fully one third (35%) traveled internationally on business (for an average of 6 such trips).
And although affluent travelers, too, have been adversely affected by the financial turmoil that has emerged in recent months (particularly as it relates to the degradation of the value of their investment portfolios), they remain rather sanguine with respect to their future travel intentions for both leisure and business as revealed below:
TRAVEL INTENTIONS OF AFFLUENT TRAVELERS
|
Leisure Trips During Next 12 Months
|
% Total
|
| Plan to take MORE trips than last year |
25
|
| Plan to take the SAME trips as last year |
58
|
| Plan to take FEWER trips than last year |
14
|
| Plan to take NONE |
3
|
|
|
|
| Plan to spend MORE than last year |
35
|
| Plan to spend the SAME as last year |
59
|
| Plan to spend LESS than last year |
6
|
|
Business Trips During Next 12 Months
|
% Total
|
| Plan to take MORE trips than last year |
29
|
| Plan to take the SAME trips as last year |
48
|
| Plan to take FEWER trips than last year |
16
|
| Plan to take NONE |
7
|
|
|
|
| Plan to spend MORE than last year |
38
|
| Plan to spend the SAME as last year |
60
|
| Plan to spend LESS than last year |
2
|
As revealed by the data, 9% (net) of affluent travelers expect to take more leisure trips during the next 12 months than they did during the previous year. A slightly higher percentage (13% net) of affluent business travelers report a similar intention, and both numbers augur well for future demand from this highly desirable market segment. And although affluent travelers intend to spend more on travel services in the year ahead, other insights revealed in the survey suggest they will be demanding far more for their travel dollar!
For further information on the Ypartnership 2008 Portrait of Affluent TravelersSM please visit click here.
January 29th, 2009 at 11:00 am
When were the people in this survey queried?
January 29th, 2009 at 1:51 pm
These affluent travelers participated in self-administered, 40-minute online interviews conducted during August of 2008.
January 29th, 2009 at 3:28 pm
Excellent information to have - thank you for putting this together and sharing it. Our own research shows that Washington, DC has the most concentrated population of affluent travelers, and this market is #1 in proportion of adults living in households with incomes of $250,000 among the major markets in the USA.
Thank you again.
Diana
January 29th, 2009 at 5:44 pm
A lot has happened since August 2008 and most of it not good. Based on the present economy do you think your survey would have the same results today as it did in Aug ‘08?
JJ Mullen
February 2nd, 2009 at 5:32 pm
Thanks for such a succinct and useful overview.
February 3rd, 2009 at 6:52 am
[...] by TeamITI on February 3, 2009 According to a post by Peter Yesawich, affluent travelers, too, have been adversely affected by the financial turmoil that has emerged in [...]
February 3rd, 2009 at 10:04 am
Please see comments below:
Mark: with pleasure.
John: my sense is that we would see some degradation in the results if we were to replicate the survey today. The conclusions, directionally, would probably be the same, however.
Diana: actually, the most affluent DMA in the country (defined by HH net worth) is Orange County, CA!
Pennie: August, 2008.
March 10th, 2009 at 9:13 am
Peter - it was interesting to compare notes on both our surveys and to see that our information is almost identical to the percentage point! Our recent reader survey reveals that the affluent sector appears to be unaffected by the economic downturn. It was in the field October through January 16, with the bulk of the respondants completing the survey in the final 4 weeks. Right in the thick of things. More than half of my readers report that they intend to travel at the same levels as last year and a full 25% report an increase in trips they intend to take in the next 12 months. There is no question that they are looking for value today from hotels. There are minor shifts in the destinations they are considering in the next 12 months, but overall they will be buying. You are right to say that Americans believe travel is their birthright, and we’ll be keeping a close watch on trends as we move through this year, and be sure to share the results.