Domestic tourism dominates US tourism market
Washington : Travel and Tourism in the US to 2018 is a new market research publication announced by Reportstack. The US is the largest global market in terms of inbound tourist expenditure which increased from US119.3 billion in 2009 to US170.9 billion in 2013 at a CAGR of 9.39%. Growth has been due to various international campaigns such as the Brand USA campaign and the promotional initiatives undertaken by the US in other countries such as Germany and Canada.
According to research key findings , domestic tourism significantly dominates the overall tourism market in the US representing 96.7% of the total trips in 2013. The number of domestic trips totaled 2.1 billion in 2013 and is projected to reach 2.2 billion in 2018. The growth of domestic tourism was supported by various state-level campaigns launched in 2013 and 2014 such as “Pure Michigan” and “Utah Mighty 5”. Domestic tourist expenditure is projected to grow at a CAGR of 5.45% over the forecast period to reach US945.4 billion in 2018
The US recorded growth in international arrivals from emerging countries particularly BRIC countries (Brazil Russia India and China) during the historic period. Visitors from China increased from 880400 in 2009 to 2.2 million in 2013. Similarly visitors from Brazil increased from 892600 in 2009 to 2.1 million in 2013 while visitors from India increased from 550000 in 2009 to 860000 in 2013 and visitors from Russia increased from 143000 in 2009 to 322000 in 2013.This increase was due to liberal visa procedures by the US and increasing disposable income in these countries
From 2000 to 2014 air fares in the US declined by 8% while taxes included in air ticket prices have increased by 49%. Similarly tax rates have also been increased by other countries. For instance the UK government increased its air passenger duty tax for long-haul premium travel from GBP92 per person in 2012 to a maximum of GBP188 per person in 2013. In addition Spain increased its airport tax on average by 19%. These higher taxes are likely to be passed on to customers which could negatively impact US airlines operating in those European markets
Limited-service brands which are usually present in midscale and upscale hotel categories are in high demand in the US. As of December 2013 they accounted for 25% of the 340933 rooms in pipeline. Higher profit margins (up to 50%) lower construction and operational costs compared to full-service hotel and good and stable performance during the historic period are the key factors attracting investors towards limited-service hotels
The concept of car sharing has picked up pace in the US. Between January 2012 and January 2013 the car-sharing fleet’s size increased at a rate of 23.6% while membership increased by 24.1% in the US. The growing popularity of car sharing programs is also reflected in the key car rental companies’ strategy to acquire the leading car sharing operators. In March 2013 Avis Budget Group acquired Zipcar a leading car-sharing operator in a deal worth US500 million
The availability of required information in one place when conducting research and planning a trip has propelled the success of travel meta-search engines. Websites such as SkyScanner Kayak and other tourism-related price comparison sites are leading a transformation from conventional methods to more innovative convenient and economical methods. These search engines are encouraging tourists to plan their trips on their own instead of relying on travel intermediaries
The report provides detailed market analysis information and insights including:historic and forecast tourist volumes covering the entire US travel and tourism sector , detailed analysis of tourist spending patterns in the US for various categories in the travel and tourism sector such as accommodation sightseeing and entertainment foodservice transportation retail travel intermediaries , detailed market classification across each category with analysis using similar metrics and detailed analysis of the airline hotel car rental and travel intermediaries industries.- Trade .gov
December 10 , 2014
