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TIA predicts stable leisure travel market

November 04, 2008 |

Although leisure travel is stable, business travel is projected to decline and the U.S. is likely to be hit hard by a further decline in international arrivals, according to a newly released annual travel forecast from the Travel Industry Association (TIA).

The TIA warns that an uncertain economic climate is leading American and global travelers to change their behavior but the sky isn?t falling.

"Consumers are responding as we might expect during an economic slowdown," said Dr. Suzanne Cook, senior vice president of research for the TIA. "But travel should not simply be viewed as an economic indicator; it should be seen as a part of the solution to our economic woes. There's no doubt that if we can spur travel, we can help to turn the economy around."

Despite current economic conditions and lagging consumer confidence, the forecast shows that leisure travel volume remains stable for 2008 (-0.2 percent) and is expected to decline modestly in 2009 (-1.3 percent). According to the latest travelhorizons survey co-authored by TIA and Ypartnership, seven out of 10 respondents intend to take an overnight trip of 50 miles or more from home during the next six months. Nearly half of all respondents stated they were not planning any changes to their future travel plans as result of the recent turmoil in the financial markets.

According to Dr. Peter Yesawich, chairman of Ypartnership, "The results corroborate what we have been preaching now for several months: American travelers are trading down, but not out." Many look at travel as a birthright.

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