Travel Industry Association Predicts Flat Summer Travel
Surprisingly, the Travel Industry Association of America (TIA) forecasts travel volume growth of less than 1 percent this year amid relatively soft travel intentions. According to TIA's Summer 2006 Forecast, Americans will take 325.6 million leisure person-trips during June, July and August 2006. A person-trip is one person traveling 50+ miles, one-way, away from home.
The Hotel News Resource quotes Dr. Suzanne Cook, senior vice president of Research for the Travel Industry Association of America as saying,�I am concerned about a number of economic indicators with gasoline prices and the pocket-book impact they're having leading the way. We've had gasoline prices jump up for the summer travel season before and weathered it but there are additional factors to be considered this year�
In spite of this gloomy forecast, The TIA predicts that, �Continuing past trends, air travel and hotel demand will rise even as hotel room rates and air fares go up.�
We do not agree with this gloomy forecast. The Weekly Lodging Report of Smith Travel Research has shown a very strong positive trend in lodging this spring. In addition our own experience in the vacation rental business shows much stronger bookings than last year. We are almost full through the mid-August. Anecdotal evidence from other vacation rental owners in prime areas indicates we are not alone.
Obviously, there is a point at which gas price increases could have an impact, but we have already seen a downturn in gas prices in our area. In our view there is much more to be optimistic about than pessimistic in the travel industry
