Marketing Forecast from Ad-ology

AAA has projected the number of Americans traveling this Labor Day holiday weekend will increase 9.9% from 2009, with approximately 34.4 million travelers taking a trip at least 50 miles away from home. Last year, 31.3 million Americans traveled during the Labor Day holiday. The 2010 Labor Day holiday travel period is defined as Thursday, September 2 to Monday, September 6. Trips by automobile are expected to increase in popularity with 91% of travelers, or 31.4 million people, reaching their destination by driving. Median spending is expected to be $697 this Labor Day, nearly $50 more than last year when median spending was estimated at $650. Dining (63%); shopping (47%) and visiting with friends and relatives (43%) were named as the three top primary activities by travelers this Labor Day weekend.

Most major cities, especially those with convention centers, maintain a visitor’s bureau. Often, these organizations are called destination marketing organizations (DMOs). Historically, DMOs have spent a large portion of their operating budgets advertising to attract both business and leisure travelers to their region. But recent budget pressures have caused some changes in the way DMOs reach out to potential clients.

According to a new survey from the National Retail Federation, nearly 144 million Americans or 61.9% of adults over 18 years old will celebrate the holiday the traditional way by attending or hosting a cookout/barbeque or picnic, which is the about the same as in 2009 (62.6%). Independence Day is big business; more than one-quarter (27.3%) of consumers own patriotic decorations, and as July 4th approaches, 16.2% of consumers will head to stores to buy new patriotic merchandise. “Summer promotions and sales on beach wear, picnic food and accessories should bring Americans into the stores and out of the heat as they prepare for their holiday festivities, especially with many families still relying on strict budgets,” said NRF President and CEO Matt Shay. In addition, more Americans will be traveling – AAA predicts the number of Americans traveling this Fourth of July holiday weekend will increase 17.1% from 2009, with approximately 34.9 million travelers taking a trip at least 50 miles away from home.

Unemployment may still be high but consumers are growing restless. Whether it’s a traditional summer vacation or a fall getaway, more consumers might be inclined to travel this year. The chief reason behind this interest is the general confidence many consumers have about their personal financial situations. Fewer consumers cite personal credit card debt and the plunging value of investment portfolios as reasons to avoid traveling.

TripAdvisor recently announced the results of its annual summer travel survey of more than 2,300 U.S. respondents. The vast majority of U.S. travelers plan to take leisure trips this summer (91%), up slightly from 89% in 2009. Eighty percent of travelers will take seven or more days of vacation this summer, and only 11% of travelers say the recent volatility in the stock market impacts their plans. According to TripAdvisor site data, the top-searched destinations for hotels in the U.S. this summer are New York City, Las Vegas, Myrtle Beach, Orlando and San Francisco. Nearly a third of travelers (31%) plan to spend more on summer travel this year, while 42% will spend the same amount as in 2009. Nearly half (49%) said the economy does not affect their summer travel plans overall.

The NPD Group, Inc. recently released a look at the luggage market in the U.S. “The economy has taken its toll on the luggage business, but there are some things in these results that can be taken as a sign of the times,” noted Marshal Cohen, chief industry analyst, The NPD Group, Inc., “With an eye toward changing airline rules, consumers are looking for ways to make their travel more convenient so smaller bags and toiletry cases have become more important to them these days.” Consumers are shopping for their luggage at both high-end and specialty retailers as well as factory outlets and off-price retailers.