Booking a holiday has traditionally been viewed as a reward for a job well done at the office or means of spending quality time with busy family members. In the good ol’ days travel agents offered the best deals and a better economic climate offered carefree vacation planning, but that was before a fragile stock market and high unemployment rates forced consumers to reevaluate their spending.
Have people stopped traveling? No, though many have cut unnecessary travel costs. According to the U.S. Travel Association, members of Gen X comprise 31% of leisure travelers, while Gen Y is responsible for 12%. Together, these two groups make up almost half of all U.S. business travelers. The new traveler is looking to gain more bang for their buck—or in this case—more miles for their money.
The New Travel Agent
Discount travel websites, including JetSetter, Travelzoo and, the oldie but goodie, Priceline, provide discounted vacation options for savvy travelers. Though these companies provide money-saving deals that your coupon-clipping grandma would love, the destinations and services rival those enjoyed by the most affluent, discerning clientele. Today’s traveler is interested not only in discounts, but in discovering new, unique experiences as well.
JetSetter’s Kellie Pelletier offered her insight regarding the new experience-driven travel, “People have not stopped traveling. Skydiving on Everest is very popular. There is interest in Asia—Vietnam is becoming the new Bali. People are now considering skiing in Switzerland and France because they go to Colorado every year.” JetSetter’s travel packages include luxurious properties that are not associated with thrift—think Ritz-Carlton not Ramada. The site also promotes exclusivity by enforcing an invitation-only membership policy. Deep discounts offered through flash sales allow travelers to find deals without compromising luxury. By promoting deals a few days before the sale actually begins and limiting the offers’ availability to approximately one week, JetSetter keeps clients intrigued and ready to discover their next adventure.
A true testament to the continued spending on travel is evident through examining the success of Travelzoo. The website publishes breaking travel deals and provides links to vendors, thereby facilitating the booking process. Travelzoo’s second quarter profits for 2011 have increased 34% this year and they experienced the fastest growth rate in four years. Despite a treacherous economy this travel information provider is still gaining momentum. According to Travelzoo’s Christie McConnell, the change occurred not in the amount of travel people booked, but in how they booked their travel. “Travelzoo inspires incremental travel. 56% of our clients admitted ‘I wasn’t planning a trip, though the deal was too good to pass up.’ People are open to being more flexible. Consumers are more cautious, savvy and now have the tools to find deals.”
Beyond the Brochure
Low airfare and posh hotels are not the only attraction to these sites. They are also providing the service of convenience for their clients. People who play hard also tend to work hard and traversing the globe—even if at a cheaper cost—still incurs a cost. Though companies try to remain within their budget, some travel is still necessary to conduct business. Pelletier notes, “71% of our members take three to five trips per year. Members are also using us for business. There is a lot of potential there.” She also mentions that by staying at hip, fresh hotels, executives are able to show clients that they are staying ahead of the trends.
Consumers don’t have extra time to spend researching specific airlines and organizing excursions. McConnell revealed that Travelzoo includes a global team of “…deal experts in 23 cities worldwide—researchers, journalists,” who are enlisted to find the most recent, hot deals. JetSetter, Pelletier explains, uses a different approach through their Personal Travel Planning feature that allows clients to discuss their dream holiday with an expert who will provide a detailed outline of the trip. She has also noticed a particular group that is increasingly using this service; “personal travel planning is 50% honeymooners. There is too much information and usually the groom planning—it’s his one job. Who has the time to look at 1500 reviews?”
Destination: Discount
The bottom line: people have not stopped spending on travel, they simply spend differently. The desire to find a reasonable price is to be expected. However, booking travel has become a type of hunt—the hunt for the most valuable amenities at the lowest price. It is to this end that Kayak.com was created; this site compiles deals from various discount travel sites, allowing the customer to compare hundreds of travel sites at once. Consumers want to be certain that the money they spend on a vacation package will allow them to spend the least amount of money while enjoying their holiday to the fullest. Value is also being placed on the quality of time away. Travelers want distinctive and different experiences that provide an educational, rare view into a region that, oftentimes, they have not yet explored.
Fear not, frugal travelers; exciting adventures are still possible while adhering to a budget. Join newsletter lists for discount vacation sites and apply for membership to discount travel vendors. And not to worry, unlike Nicolas Sarkozy, no one will expect you to cut short your holiday and solve the financial crisis.
Article and image by Dorothy Crouch for Moxy Magazine, August 2011.
