Even though we are collectively bracing for a busy holiday travel season, industry researchers are already advising travel professionals what to expect for 2012. The following is a recap of what is forecast. As tourism and travel are major economic drivers of our economy, such forecasts are quite important concerning our local and regional economy.
TravelClick, a major vendor to hoteliers worldwide has issued a report advising business, leisure and group business travel all showing moderate demand improvement with gains expected to escalate through the third quarter of next year. During 2011, business travel was the primary driver for hotel demand as the economy emerged from a recession.
Concerning overall occupancy, the industry is predicting an average of 60% with average room rates forecast to rise by 3.7% to USD $105.29. Please note, this is a national average and major urban business centers and resort areas will most likely have a higher average daily rate.
Travoca, a well-respected luxury tour operator based in Southern California operating within the luxury segment of the market predicts increased activity advising “Reservations are more than 50 percent ahead of the same time last year, “a clear indicator that the luxury travel segment is rebounding as consumer confidence continues to increase.”
Concerning destination trends Asia including India is enjoying increased booking activity. During the past few years, Incredible India, under the guidence of the Indian Ministry of Tourism has embarked on a major marketing and public relations campaign to increase awareness of the destination. Travoca has indicated popular itineraries to the continent include Enlightened India, Intriguing Indochina, and Legendary China, all of which showcase culture, unique history, and distinguishing architecture.
Even with the strength of the Euro against other major currencies, Europe is enjoying a resurgence specifically concerning the unique and often overlooked destinations and tours including the Dalmatian Coast, an in-depth look at Croatia, Montenegro, and Slovenia; Undiscovered Italy, an itinerary filled with little-known Italian villages and an abundance of food and wine; and Resplendent Russia, an exploration in the style of the czars.
Even with the strength of the Euro against other major currencies, Europe is enjoying a resurgence specifically concerning the unique and often overlooked destinations and tours including the Dalmatian Coast, an in-depth look at Croatia, Montenegro, and Slovenia; Undiscovered Italy, an itinerary filled with little-known Italian villages and an abundance of food and wine; and Resplendent Russia, an exploration in the style of the czars.
Middle East bookings have slowed and may be due to the images projected worldwide concerning the Arab Spring coupled with continued unrest in the region’s most popular destinations including Egypt.
Concerning the Denver marketplace. The new non-stop service between Denver and Reykjavik via Iceland Air beginning the 2nd quarter of 2012 should increase travel to Europe from Denver and may place downward pricing pressure for travel between Denver and Europe.
The merger of United (a hub airline at Denver International) and Continental may offer increased service from Denver to Latin and South American destinations as the combined airline looks to the Latin American marketplace for growth opportunities. In addition the combined airline’s destinations throughout the world should offer additional destinations available via one-stop from Denver International.
Happy Travels.
Comments