What Will December Look Like for the Travel Industry?

Many companies will be hit hard this Holiday season due to the economy, however the travel industry could potentially affected most dramatically.  Airlines and hotel chains rely on strong December revenues to augment their end-of-year financials.  However with the current market environment and increased investor uncertainty, travel and transportation usage appears to be down compared to prior years.

72% of Americans plan on not traveling this holiday season, according to a new survey from Opinion Research Corporation. While most respondents indicated they hadn’t made holiday travel plans this year to begin with, nearly a quarter changed their existing plans due to current economic conditions.

It is notable that financial concerns are having a more significant impact on the holiday travel plans of lower income households, with only 15% planning to travel, compared to 44% of those whose incomes are over $75,000. Younger people seem to be the most unsure of their plans, with nearly one-third of 18-24 year olds undecided about making any changes.

“Americans are clearly concerned about their financial well-being in the coming months, and are making cutbacks wherever possible to economize,” said Jeff Resnick, President of Opinion Research Corporation US. “Considering the current economic conditions and general holiday travel hassles, transportation providers must do more to get the customer experience right and convince consumers that travel is a good value for them.”

To combat decreasing demand, several of the large airlines have announced lower prices this holiday season, however the market will not know the result of these attempts until the end of the year.

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