Flight Delays Keep Vacationers at Home
Consumers are easing up on travel, due more to frustrations with air travel than gas prices.
By Mary Boltz Chapman, Editor-in-Chief -- Chain Leader, 7/1/2008
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| Despite the closings and acquisitions of some underperforming airlines, air travelers say they are fed up with the system. |
The Travel Industry Association released a survey in May that said people are so frustrated with air travel that they avoided 41 million trips over the prior 12 months. Of those, about 12 million were business trips and 29 million were leisure trips.
Travelers point out problems such as inefficient security screenings, flight cancellations and delays. One-third of all air travelers are dissatisfied, and 48 percent of frequent air travelers, those who fly five or more times a year, are dissatisfied. Half of the respondents said they don't expect air travel to get any better in the near future.
TIA noted that the missed trips cost the U.S. economy more than $26 billion. About $5.6 billion would have been spent in hotels, and $3.1 billion would have been spent in restaurants. The federal, state and local government lost out as well, in the form of tax revenue—$4.2 billion worth.
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Changing Traffic Patterns
The NPD Group reports that as a result of rising gas prices, 12 percent of drivers have cancelled vacation plans and 8 percent have vacationed closer to home. The researchers expect these trends and other short-term solutions like carpooling to reverse when gas prices go down. But NPD says people are also making long-term changes in driving patterns, such as working closer to home or moving closer to work, which will be more permanent.
Changes Made in Response to High Gasoline Prices Cancelled vacation 12% Carpooled 12% Taken public transportation 8% Vacationed closer to home 8% Bought a more fuel-efficient vehicle 6% Worked from home/telecommuted 6% Worked closer to home 5% Worked less 4% Sold a less efficient vehicle 3% Moved closer to work 2% Bought an electric/hybrid vehicle 1%
Source: The NPD Group/NPD Consumer Panel |
There should be plenty of highway traffic, though less than most summers. The May “travelhorizons” survey, co-authored by TIA and Orlando, Fla.-based travel consultancy Ypartnership, says 59 percent of those planning a trip by car this summer will not change their plans, despite increases in gasoline costs. The report also shows that 16 percent of respondents expecting an economic stimulus tax rebate will use it on an overnight or day trip. Roger Dow, TIA president and CEO, points out that adds up to $12.1 billion.
Of the 41 percent who said their vacation plans would change due to higher gas prices, 38 percent would drive a shorter distance; 36 percent would take fewer trips and/or cancel a trip; 30 percent would spend less on souvenirs and shopping; 27 percent would spend less on meals and/or entertainment; 23 percent would spend less on hotels; 21 percent would spend fewer nights away from home; and 20 percent would select another vacation destination.
For more consumer insight on dealing with rising costs and uncertainty, read “Make Me an Offer.”
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