NASHVILLE— Segment loyalty seems to be more prevalent now than brand loyalty, said Smith Travel Research President Mark Lomanno during a presentation on the state of the U.S. lodging industry at STR’s 2002 Client Conference. “It seems as if not a lot of travelers are trading down,” observed Lomanno. “And this may be the first time during a downturn travelers are not trading down.” This observation is based on STR’s overall tracking of the lodging industry during the current poor economic climate, rather than any specific data STR has collected on the subject. He attributes this seeming segment loyalty to the fact that “it’s been 10 years since a decline, so traveling patterns seem to be set. Travelers seem to be staying where they usually stay.” If that holds true, he said, then the implication is that the rate discounts many hotels have implemented or are about to implement may not work, or, in other words, booking decisions, as of late, are more about what travelers are accustomed to than about rate.
