Motorcoach/International Trends for 2005

Travel Agent Trends

• In a world full of online travel news, it may seem like travel agents are a thing of the past. Nothing could be farther from the truth. The role of the traditional travel agent has evolved with the emergence of online travel, but they remain a powerful and essential partner for the travel industry. According to the American Society of Travel Agents (ASTA), travel agents sell 70 percent of all airline tickets, 95 percent of cruises, 90 percent of all tours and packages, 40 percent of all car rentals and about 25 percent of all hotels. Buying travel is a lot like choosing a restaurant. A self-service restaurant is right for some nights but other occasions call for white tablecloth treatment. Likewise, there’s room—and customer demand—for both self-service and full-service in the travel industry. Some trips— family reunions, multi-city business meetings, or a trip around the world—are best planned with an expert’s help due to their importance, complexity, or exotic location. With access to the most current information, professional travel agents offer travelers in-depth knowledge, one-stop shopping, personalized service, and often, the inside track on the best value for your money.

More Information:

• According to the American Society of Travel Agents (ASTA), travel agents sell 70 percent of all airline tickets, 95 percent of cruises, 90 percent of all tours and packages, 40 percent of all car rentals and about 25 percent of all hotels.
• TravelCLICK's eMonitor results for the first quarter of 2004 show that worldwide hotel room nights booked electronically grew 9.5 percent. Revenue from travel agents rose 13.3% from last year, the biggest increase in over two years. Travel agent bookings still form 83 percent of the total room nights booked through the GDSs
• On average, Galileo (helps connect approximately 44,000 travel agency locations to 470 airlines, 24 car rental companies, 56,000 hotel properties, 430 tour operators and all major cruise lines throughout the world) handles more than 192 million requests for information per day. At peak times, the company's systems process more than 250 million messages per day. As reported by Cendant Travel Distribution Services – www.cendant.com, May 24, 2004
• Business Soared in 2004 for home-based travel agents. According to agents surveyed by the Outside Sales Support Network (OSSN), more than 40% of agents who responded to the survey reported overall business increases up to 35% over 2003. At the same time, however, retailers said that their overhead expenses also jumped. Agents apparently have learned that survival is based on their ability to develop a niche: almost 74% stated they do have a niche for their travel business. Those surveyed also gave high marks to industry suppliers, with more than 85% saying that "most" suppliers are providing ample -- if not increasing -- support for agents' businesses. As reported February 21, 2005 by TheTourOperator.com
• As online technology has become more sophisticated and booking engines easier to use, more online travelers are gravitating toward online agencies and supplies overall compared to 2002. Ratings for traditional agencies have suffered as online travelers have grown more accustomed to making reservations online. While customer service and reliability still drive usage of traditional agencies, this channel has lost ground on these and all performance measures in 2003. As reported by 2004 PhoCusWright Inc., The PhoCusWright Consumer Travel Trends Survey Sixth Edition, Page Eight

Motorcoach Trends - Niche Markets

• Active Adult Retirement Communities (AARC) are prime prospects for group travel. Consider the following: 1) Residents have discretionary income; 2) They have time to travel; 3) They are prone to participate in group activities (one of the benefits of the community); 4) Residents enjoy the company of their peers; 5) They enjoy living life to the fullest.
  
  The convergence of three factors: the doubling of the senior population by 2030; their
  inheritance of close to $10 trillion from their parents’ generation; and the idealistic “worry free” environment that these communities provide in a world filled with worries paints a rosy picture for this industry for the next generation.
  
  As the Bank Travel Market is to the group travel industry in the early to mid 1990’s, Active Adult Retirement communities have the potential to be in the coming decade. As reported by Premier Tourism Marketing Special Report on Active Adult Residential Retirement Communities 1999-2004

Motorcoach Trends

• In the first and second quarters of 2004, 58% and 60% of tour operators respectively experienced an increase in overall sales volume. With the impact of the Internet on travel in the last few years, group travel providers are working to use online packaging to continue to increase sales. As reported in the IACVB Special Report – 2005 Forecast January 2005 - International Association of Convention & Visitor Bureaus
• In February2004 a Web based survey was e-mailed to a database of 533 NTA tour operator members. Ninety-six tour operators completed the survey for a response rate of 18 percent.
  • The following responses were received when asked “Does your company currently have a Web site?” 85% of the operators responded yes, 11% responded no and 4% indicated it was currently in development.
  • The following responses were received when asked “My company and our staff members use the Internet for the following reasons - ” E-mail – 99%; Destination/partner research – 85%;
  • Booking employee travel – 54%; Advertising and marketing – 50%; Online sales – 45%; Lead generation – 45% As reported in the February 2004 NTA Technology Survey Results.
    As reported in the February 2004 NTA Technology Survey Results
• Motorcoach Travel in the South Market Trends – Please see attached report reproduced with permission by South Carolina Department of Parks, Recreation & Tourism – view online at http://www.discoversouthcarolina.com/documents/2004Motorcoach.pdf

International

• Overall, the number of international tourist arrivals I the first eight months of 2004 was 526 million – an increase of 58 million arrivals (+12%) compared to the same period in 2003. As reported in the IACVB Special Report – 2005 Forecast January 2005 - International Association of Convention & Visitor Bureaus
• UK-USA passenger arrivals heading for records in 2004 and 2005. At just under 4 million, UK passenger arrivals in the USA, up to November 2004, recorded a year-to-date increase of 10% over 2003. Assuming this growth rate is maintained into December, ten total annual arrivals in 2004 will have reached c.4.35 million, becoming the 2nd highest ever year for UK-US arrivals. And, on top of a highly successful 2004, early signs are already indicating that 2005 will go on to become the very best yea ever!...Visit USA members are reporting record US booking levels and, at this stage, it seems likely that the 4.7 million arrivals recorded – pre 9/11 – in 2000, will be overtaken in 2005. US Arrivals Release 140205.doc
• International Arrivals from Top 25 Overseas Markets report that from January-September 2004 Canada – Arrivals 9,728 (000) - % Change ’04-‘03 +9.3%; UK – Arrivals 2,770 (000) - % Change ’04-’03 +12.9; Germany – Arrivals 864 (000) - % Change ’04-’03 +17.8 www.thetouroperator.com February 2, 2005
• International Marketing - NC 18th most visited US state; NC one of 2 states not to lose market share; Canada – Visitation to US to increase 31% by ’06; 330,300 Canadians visited NC in 2002; First Quarter 2003 arrivals to NC up 7.6%... As reported by Lynn D. Minges, Executive Director, NC Division of Tourism, Film and Sports Development – 2004 Governor’s Conference

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