Recent economic headlines have led people to ask how a recession would affect consumer travel behavior. Ypartnership travel marketing company recently carried out a travel horizons™ survey (co-authored by the Travel Industry Association in Washington) and share their findings to what consumers have done during the last six months because of personal financial concerns.
The survey found that 29% have taken fewer trips; 16% have selected less expensive hotel accommodations; 12% have stayed fewer nights on a trip; 11% drove a shorter distance to vacation destination; 7% changed vacation destination; and 2% brought fewer people along.
YPartnership concludes that travelers are likely to seek ways of reducing the cost of travel rather than canceling their trips. “Stated simply, increasingly value-conscious consumers are likely to ‘trade down’ and seek less expensive alternatives for transportation, lodging, entertainment and recreation. They may also reduce the length of their trips in an effort to save money. Very few, however, are likely to actually cancel their travel plans.”
Nevertheless, the current economic environment has amplified another consumer sentiment that was revealed in the 2007 National Travel Monitor™ and has grown steadily in recent years: that it’s usually not necessary to pay full price for most goods and services you buy because you can find whatever you want on sale. Perhaps ironically, the fact that consumers embrace this belief now comes as good news because those who are concerned about their finances remain heartened by the belief that their efforts to find a good deal will be rewarded, assuming they know where and how to find one.
The convergence of concern about personal finances and the belief that everything is on sale has significant implications for advertising strategy in the months ahead. Specifically, there is a strong case to be made for more retail messaging that communicates the benefits of specific offers or premiums tied to purchase. There is an equally compelling argument to be made that the prominence of such retail offers should take precedence over advertising that is simply intended to establish and/or modify a brand message devoid of any retail call to action. Some marketing strategists would argue that adopting a short-term retail strategy will “tarnish the image of your brand,” yet the reality is today’s savvy consumers understand that the laws of supply and demand affect pricing, and that even the highest of “high-end” suppliers occasionally adjust prices to reflect market dynamics.
For more information on the results of travelhorizons™ please visit the Publications section of www.ypartnership.com.