Perception Of Affordability Clouds Consumer Travel Sentiments

WASHINGTON, DC— The Travel Industry Association of America (TIA) reports that its quarterly Traveler Sentiment Index remains relatively flat in second quarter 2002 and now stands at 103.8. TIA said the survey indicates that consumers are becoming more positive about their interest in taking leisure trips, as well as about their ability to travel based on their free time and finances. Yet, negative perceptions regarding the affordability of leisure travel offset these gains, causing little change in the index. In fact, the “affordability” index shows a drop of 17% from last quarter, said TIA. Among all five index components, consumer perceptions of the ability to take pleasure trips considering demands on their time shows the largest gain from last quarter, with an index of 108.2 (up 9.3%). General consumer interest in taking pleasure trips and consumer perceptions of the ability to take pleasure trips based on personal finances are up somewhat over last quarter with indices of 95.7 (+4%) and 95.2 (+3.1%), respectively.The index for consumer perceptions of service quality—at 104.4—is up only slightly. While the “affordability” index (124.4) declined this quarter, it is still above levels seen in 2000 and the first three quarters of 2001, said TIA. Generation X and Y travelers are the most optimistic group this quarter, with their overall sentiment index up 9% to 110 over first quarter 2002. On the other hand, Baby Boomer and Mature travelers show decreases over last quarter, with their overall sentiment indices now at 105.1 and 98.7, respectively. Among Generation X and Y travelers, the “ability/time” index surged 45.5% over last quarter and is at its highest point to-date. The “affordability” index (-10.9%) shows the only decrease for these younger travelers. Baby Boomer travelers show a large decline in their “affordability” index (-18.8%) over last quarter. However, at 140.7, it is still higher than it was in 2000 and the first three quarters of 2001. Among Mature travelers, the “interest” index shows the largest increase (6.3%) from first quarter 2002, while the “affordability” index shows the largest decrease (-25.6%). When the overall Traveler Sentiment Index is measured by region, only the Midwest and West show gains over first quarter 2002. Among travelers living in the Midwest, the overall sentiment index has risen to 107 (up 5.7%). Of those travelers living in the West, the overall sentiment index has risen 4.4 percent this quarter to 103.7. The overall sentiment index for the Northeast is 102.2, down 4.5% over last quarter. The South shows a decrease of 5.8% for its overall index, falling to 101.4 over first quarter 2002.