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Business, Leisure Travel Figures Go South for the Winter


Let it languish

53% of American business travelers that planned to travel through the remainder of 2008 say their travel plans have been affected by the bad economy. Meanwhile, 21% of leisure travelers expect to cancel or postpone a trip this year, according to a poll by Ipsos, MarketingCharts reports.

The survey examines the impact of the current economic crisis on business and leisure travel across the country. It finds that while many still traveled for both work and pleasure in 2008, an immediate, noticeable change in travel patterns has occurred that suggests a worsening picture for 2009.

Business Travelers Replace Trips with Technology

When asked how their travel plans have been affected by the worsening economy:

ipsos-travel-survey-business-trips-financial-crisis-impact-plans-2008.jpg

  • 8% of US business travelers have canceled a business trip they were planning to make by year-end.
  • 6% are considering canceling a business trip planned for 2008.
  • 10% have postponed a scheduled business trip until after January 1, 2009.

Some business travelers in the US plan to use technology to replace face-to-face meetings: Slightly more than one-in-ten (13%) plan to substitute some of their 2008 business travel with conference calls and webinars, where appropriate.

The remaining business travelers in the US either expect to continue with their business trips as planned (47%), or a plan to take their scheduled business trips but are doing so with caveats from their employers to be mindful of travel expenses (16%).

While business travel faces pressure for the remainder of 2008, the picture is bleaker for 2009. Among US business travelers:

ipsos-travel-survey-expect-more-less-same-2009-fall-2008.jpg

  • Four in 10 (40%) expect to travel less often for business in '09 compared with '08.
  • Two in 10 (22%) expect to travel more for business in 2009.
  • Almost four in 10 (38%) will travel the same amount for business in '09 as in '08.

"The results show that business travelers have already taken action to account for the deteriorating economy," said Jim Quilty, VP with Ipsos' Travel and Tourism division. "The replacement of travel with webinars and conference calls, along with the strong expectation of less travel in 2009 are both especially worrisome trends for the industry."

Leisure Travelers Expect Less Travel in 2009

In the world of leisure travel, a similar story emerges. In total, 21% of leisure travelers plan to cancel or postpone a trip through the remainder of 2008:

  • One in 10 (10%) Americans say they have already cancelled a leisure trip they were planning to make by year-end.
  • A smaller proportion are considering cancelling a leisure trip they planned to take by year-end (4%).
  • Have postponed a scheduled leisure trip until after January 1, 2009 (7%).

Regarding 2009 leisure travel:

  • Almost four in 10 (37%) Americans expect to travel less often for leisure in 2009.
  • Two in 10 (20%) expect to travel more often for leisure next year.
  • Just over four in 10 (43%) Americans expect they will travel the same amount for leisure in 2009 as they did in 2008.

"One of the few bright spots today is lowered gasoline prices which offers relief for the holiday drive market," said Quilty. "However, the current financial crisis, as evidenced by falling real estate values, rising unemployment and missed corporate profit expectations, appears to be offsetting any positive developments and leisure and business travel expectations for 2009 are weakening."

In September, Ipsos ruled travel among the top three expenses incurred by affluent Americans. (The others were home and apparel.) Terrorism fears, coupled with rising costs and frequent flight delays, have made travel less attractive — particularly among women.

Which isn't to say it's lost its luster in the popular imagination. In June, wanderlust appeared to motivate rankings for top web categories in the US, according to comScore Media Metrix. And a recent Specific Media study found display advertising in the "travel and tourism" category engenders a 274% lift in both paid and organic search — meaning users in a traveling state of mind may be more inclined to explore brand offers.

About the survey: The Ipsos poll was conducted from November 3-10, 2008. This online survey of 1,055 US adults (age 18+) was conducted via Ipsos' online panel.

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