'Portrait' Paints a Bright Future for Hoteliers

Summary

The travel industry is bouncing back as recent data from the "2012 Portrait of American Traveler" report by MMGY Global and the Harrison Group shows a significant shift in traveler behavior. Cost-conscious travel habits from the Great Recession are fading, with more Americans now prioritizing quality experiences and luxury accommodations. This trend is expected to boost travel spending in 2013, offering a promising outlook for hoteliers.

The Recession's Impact on Travel

During the Great Recession, terms like "trading down" and "staycations" became common as travelers sought to cut costs. This period saw a significant decline in hotel business, with many opting for budget-friendly alternatives. However, recent months have shown a positive turnaround in hotel performance across various markets.

Key Findings from the 2012 Portrait of American Traveler

MMGY Global and the Harrison Group's "2012 Portrait of American Traveler" report provides valuable insights into the evolving travel landscape. Here are some of the key findings:

Shift Towards Luxury Accommodations

• Increased Preference for Luxury: Of the 2,527 U.S. households surveyed, 26% expressed a preference for luxury accommodations, a notable increase from 15% the previous year.
• Full-Service Hotels in Demand: Eight in ten travelers now prefer full-service hotels or resorts with restaurants, up from 75% two years ago.

Quality Over Savings

• Value of Quality: Travelers across all income groups now prioritize quality over savings. They are more willing to pay full price if it guarantees the quality and service they expect.
• Travel Planning Priorities: Unlike during the recession, today's travelers choose their destination (34%) and type of trip (33%) first, before setting a budget (18%) and searching for deals (8%).

Implications for Hoteliers

These findings suggest a promising future for the hotel industry. The increased demand for luxury and full-service accommodations indicates that travelers are willing to spend more for quality experiences. This shift presents an opportunity for hoteliers to enhance their offerings and cater to the evolving preferences of their guests.

Interesting Stats

• Travel Spending Increase: According to the U.S. Travel Association, travel spending in the U.S. is projected to reach $1.1 trillion in 2023, up from $972 billion in 2022. Source.
• Luxury Travel Growth: The global luxury travel market is expected to grow at a CAGR of 6.4% from 2021 to 2028, reaching $1.2 trillion by 2028. Source.

Conclusion

The "2012 Portrait of American Traveler" report highlights a significant shift in traveler behavior, with a renewed focus on quality and luxury. This trend is expected to drive increased travel spending in the coming years, offering a positive outlook for the hotel industry. Hoteliers should seize this opportunity to enhance their offerings and meet the evolving demands of today's travelers.

By understanding and adapting to these changes, hoteliers can position themselves for success in a rapidly evolving travel landscape.