Marketing Forecast from Ad-ology

American Express Business Travel recently released data from the 2010 third quarter Business Travel Monitor (BTM) North America, showing price increases are holding steady as business travel continues to rebound. With airlines exerting greater control over prices, business travelers have seen a third quarter year-over-year increase of six percent in average North American domestic airfare paid and a third quarter year-over-year increase of eight percent in average international airfare paid. Hotel rates are also rebounding, though at a slower pace than airlines. “As such, companies need to evaluate the competitiveness of their rates across their top markets and identify opportunities during this negotiation season to avoid likely expected rate increases across the board in all tiers of properties,” said Christa Degnan Manning, director, eXpert insights research, Global Advisory Services, American Express Business Travel.

Ad-ology Research recently updated their Industry Marketing Insights report for Employment Agencies. The following are the predicted Top 3 Opportunities/Challenges from the report for this industry for the upcoming 12 months:

* Industry professionals are urging B&Bs to cater to new parents who may be taking “babymoons,” a term used to described a romantic getaway taken by expecting parents. Nearly 60% of new parents have taken a babymoon, and over 2 million babymoons are taken each year. One B&B reports booking up to five babymoon packages each month.
* Technology such as high-speed Internet is becoming more available at these lodgings. Approximately 93% currently offer free Wi-Fi, and 44.6% offer computers for guest use.
* Travelers are increasingly interested in bringing pets along on vacations, and in response, a number of B&Bs are now pet friendly. Over 87 million U.S. households have a pet, and 29 million Americans have traveled with a pet in the past three years.

Ad-ology Research recently updated their Industry Marketing Insights report for Cruise Ships. The following are the predicted Top 3 Opportunities/Challenges from the report for this industry for the upcoming 12 months:

* Theme (adventure, wine and food, photography) and holiday trips are popular among travelers. A current popular theme is cooking, which often includes seminars, demonstrations, classes, and appearances from celebrity chefs.
* While U.S. embarkation was down in 2009, the percentage of U.S. resident passengers was up 1.5%, due to Americans purchasing foreign-bound cruises (particularly European) on North American cruise lines.
* When planning a vacation, cruisers are most influenced by destination Web sites (39%), word of mouth/referrals (33%) and cruise Web sites.

With state budgets facing the lagging effects of the economic downturn, some government officials are pumping money into tourism budgets. Visitors descending on a region like Florida or Michigan will open their wallets at hotels, restaurants and other attractions. The spending can have a positive compound effect as businesses collect taxes on these services and as employee wages also get taxed. Tourism is increasingly seen as one way to bring more money into a region.

According to a new survey from Deloitte, business travelers are anticipating an increase in corporate travel for 2011 – a welcomed boost in customer demand for the hospitality and travel sectors. The Deloitte survey found that the overall hotel experience is important to a majority of business travelers. Roughly two-thirds of respondents said they often work in their room (68%) and they also expect a lot more from a hotel than just a clean room and comfortable bed (65%). Further, almost four out of five respondents felt that high-speed Internet (79%) and free parking (77%) were important amenities to them when staying at a hotel for business. “The tipping point for hotels to differentiate their brand offering and strengthen loyalty among the post-recessionary business traveler will be providing additional complementary services and amenities tailored to their guests’ specific needs,” said Adam Weissenberg, vice chairman and tourism, hospitality and leisure sector leader, Deloitte LLP.

After posting declines over the last couple years, leisure travel is poised for a comeback in 2011. According TripAdvisor’s new travel survey, 36% plan to spend more on leisure travel in 2011 than this year, while 42% expect to spend the same amount. Vacation rentals are expected to be a popular lodging choice in 2011, with 47% considering a stay in a vacation rental home – a significant increase compared to 39% one year ago. And despite being fed up with airline fees, 24% of travelers plan to fly more in 2011, while 60% will fly the same amount. The top five vacation activities for 2011 include: visiting an historic site – 85%; visiting a museum – 73%; visiting a national park – 46%; attending a festival – 43%; and hiking – 42%.