Hotel & Motel Management - January 7, 2008 - (Page 12) 12 Travel Trends IN THE details Survey outlines concerns Gas prices not at tipping point Leisure changes possible Mortgage crisis an issue H&MM January 7, 2008 | HotelMotel.com www.HotelMotel.com/digital_edition Gas prices, health care play into travel plans mericans have a lot on their minds these days, thanks to the continued turmoil in the Middle East, the escalating price of gas at the pump, growing volatility in the stock market, the declining value of the dollar, and the ominous news about the meltdown of the subprime mortgage market. And that’s just for starters. A By Peter C. Yesawich H&MM Columnist According to the October flight of our recent travelhorizons survey, a bimonthly national survey of just more than 2,200 adults, the escalating price of gasoline now tops the list of things Americans say are most likely to affect their future travel behavior. Our previous investigation of this subject suggested we would arrive at the “tipping point” when the national average price of gasoline hit $3.50 per gallon (as of this writing the national average is $2.99). We’re likely to meet and perhaps exceed this number in the months ahead, so what is the expected outcome in terms of consumers’ travel behavior? Most travelers suggest they would simply amend their leisure travel plans. Percentage of U.S. adults who state the following are likely to affect their future leisure time and vacation behavior Cost of gas at the pump Cost of health care Saving for retirement Interest rates Job insecurity Stock market volatility 62% 36% 25% 24% 21% 13% High level of personal debt 31% Source: travelhorizons, October 2007 “We work with many of the largest ATM deployers in the country and have found that in terms of service levels, operational controls, and integrity of the operators that ATM Systems is in the very upper echelon of all of the ATM companies in the country.” --Cash Connect, a division of WSFS Bank John Clatworthy, VP of Sales & Marketing “I am a loyal client as a result of your professionalism and reaction time to my needs. Your decision to replace the old ATM was much appreciated. The new ATM is perfect.” --Radisson Hotel Sacramento George LaPointe, Director of Operations “Our front desk employees continually share with me the positive feedback they have received from our guests. Based on these comments, it’s clear that the ATM is fulfilling a guest service need at our hotel and has proven to be a real convenience for our guests.” --Radisson Hotel Boston Jack Eagan, Controller Relatively few state they actually would cancel a trip. But several other issues weigh heavily on the minds of Americans, including the rising cost of health care, saving for retirement and job security. As of this writing, there are about 2 million residential mortgages for which the interest rate is scheduled to reset during the next 60 days. An estimated 600,000 of these mortgage holders are unable to meet their current obligation. The remainder is expected to get some relief from the emergency action taken by the White House to postpone any short-term increase in interest payments. This will come as good news to the 17 percent of respondents in the survey who stated their future travel and leisure behavior would be negatively affected by an unexpected increase in their monthly mortgage obligation. A significant number of Americans might decide to alter their future travel behavior if the turmoil in the financial markets doesn’t abate soon. The most likely result is that a growing percentage of travelers will alter the type of vacation they take and/or where they take that vacation, opting for more affordable and easily accessible destinations, as well as less expensive transportation, lodging accommodations, attractions and entertainment. hmm@questex.com Peter Yesawich is chairman and c.e.o. of Ypartnership. He can be reached at Peter.Yesawich@ypartnership.com. ATM Systems CIRCLE NO. 101 http://www.HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.atmsystems.com http://www.atmsystems.com
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