Leading Travel Companies Discuss State of Industry, Trends for Holiday Season

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. October 14, 2008

As the busy 2005 summer travel season reaches its peak this week, travel industry leaders around the country are predicting record-breaking numbers that are expected to continue throughout the rest of the year. Executives from Best Western International, the world's largest hotel chain, AAA and SideStep, the traveler's search engine, recently met in New York City to discuss how the current travel boom is affecting the industry today, as well as to offer their predictions on what will be the hottest trends in 2005 holiday travel.

Dorothy Dowling, senior vice president of marketing for Best Western, says this year's high gas prices, coupled with recent events such as an early and active hurricane season, have not deterred travel within North America. In fact, 2005 is shaping up to be the busiest and most profitable travel year ever.

"Record numbers of travelers visiting such popular cities as New York and Orlando are increasing hotel occupancies like never before," said Dowling. "It's becoming more difficult to not only find a great deal, but sometimes to even find a room at all. People want to travel, and they're doing it regardless of cost or other factors that are beyond their control."

PACKAGE DEALS ARE STILL HOT

Travel packages -- typically complete with airfare, hotel and car rental -- are one way vacationers can find great deals. Travel packages are up more than six percent so far this year at AAA's travel agencies, where they comprise about one-third of its vacation bookings.

"Vacation packages can offer travelers real value by bundling lower rates for transportation, hotels and more," said Betsy Sell, managing director of travel products and services for AAA Travel. "What's more, they can simplify the decision process for travelers so that they can spend less time worrying about planning their trips and more time enjoying their vacation."

Packages have become an increasingly popular offering from Internet sites as well. SideStep, which recently launched an online beta version of this specific search function, lets consumers choose from a wide range of options to fit their needs.

"Vacation packages offer ease of booking and a cost savings for consumers, while at the same time giving travel suppliers better profit margins," said Don Smith, vice president of hotels for SideStep.

FALL/WINTER TRAVEL TRENDS AND PREDICTIONS

Although the busy summer travel season comes to an unofficial close after Labor Day weekend, industry leaders predict that the 2005 holidays will also generate record-breaking numbers.

"This year's Fourth of July holiday weekend put more people on the road and in the skies than ever before, amid a summer that will likely finish with record numbers of travelers," said Dowling. "We expect the strong travel season to continue right through the Thanksgiving, Christmas and New Year's holidays. Travelers who wait to make their holiday travel plans could find themselves out of luck."

Multigenerational trips are among the most popular this year, with 34 percent of travelers gathering for family reunions, according to the Travel Industry Association of America. The Internet has fueled much of this growth as distant family members keep in touch via email and many Americans research their genealogy online.

In addition, multiple, shorter vacations, rather than the traditional trip of two weeks or longer, are increasing in popularity. Travel lasting three to four days, as well as seven-day vacations that include more than one destination, are also on the increase, according to Dowling, and are expected to be a strong factor in holiday plans as consumers visit numerous family members and friends.