What's happening to the affluent travel market here in the U.S.? The latest 2014 Portrait of Affluent Travelers, authored by travel marketing firm MMGY Global, says affluent Americans will continue to be the main drivers of growth for the U.S. travel industry in the coming year, as they have in the past.
The best news for travel agents is that 25 percent of affluent travelers plan to use the services of an agent during the next two years, up significantly from 20 percent last year. Among those who plan to work with travel agents, 80 percent say they will do so because of the agent's ability to provide an extra level of service when things go wrong, their knowledge of destinations and travel service providers, and their ability to take the hassle out of booking travel.
In a departure from the trend observed among all leisure travelers, affluent travelers prefer travel service providers' websites to online travel agencies (OTAs). Fifty percent of this group believes that travel service providers' websites offer the greatest convenience and the best prices. While 60 percent of affluent travelers visit OTAs on a regular basis to get prices and information, only 30 percent actually use these sites to book travel. Nearly 25 percent turn to travel service provider websites, while almost 20 percent books directly with a travel service provider over the phone.
In other results, more than 30 percent of affluent travelers visited an online community, travel forum or blog during the past year to seek or review information about a destination or travel service provider. Among them, 75 percent prefer to read individual reviews rather than rely on a rating alone, but will not consider hotels or restaurants with low online quality ratings. Nearly 60 percent generally believe the ratings they see online, while more 50 percent are suspicious of overtly positive reviews. Twenty percent trust online reviews more than the opinions of their friends and family.
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According to MMGY, 20 percent of affluent travelers plan to take more vacations in the year ahead. Top domestic destinations these travelers plan to visit over the next two years include, in order: Hawaii Neighbor Islands (63 percent), national parks throughout the country (61 percent), Honolulu (55 percent), New York City (52 percent), San Francisco (51 percent), Florida Keys (49 percent) and Napa Valley (47 percent), though the survey was completed before the recent earthquake in that California region.
Top European destinations these affluent travelers want to go to are Italy (41 percent), England (40 percent) and France (38 percent). Top Caribbean Destinations are the U.S. Virgin Islands (27 percent), the Bahamas (25 percent), as well as the Cayman Islands, St. Maarten and Aruba (each at 23 percent).
In terms of emerging destinations, more than 30 percent of affluent travelers are interested in visiting Oceana, including Australia (32 percent), New Zealand (29 percent) and Fiji (18 percent). Some 25 percent would like to visit South America and Mexico.
In other findings from the survey, 50 percent of affluent travelers say they are willing to pay more for the very best quality hotel and resort accommodations, while roughly 30 percent would pay more for luxury cruise cabins or an upgraded class of service on a flight. That's good news for travel agents and top travel suppliers.
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"Affluent travelers are willing to spend more on enhanced travel experiences," said Steve Cohen, vice president of Insights and Research at MMGY Global. "This translates into a wonderful opportunity for travel and hospitality brands to engage-both online and in real time-with this attractive market segment."
Other highlights of the survey include: Affluent travelers who earn $250,000 or more annually took an average of 6.2 leisure trips in 2013, up much more than the 4.7 vacations taken by those with an annual household income between $125,000 and $249,999. Both groups of travelers expect to take more trips in the year ahead, with a net 9 percent increase for those in households with an annual income in excess of $250,000, and 4 percent more for individuals in households with an annual income between $125,000 and $249,999.
According to the survey, affluent travelers cite relaxation and enrichment as the most desirable qualities when they travel: 75 percent want to have enough time to relax and unwind; 64 percent want to explore new cities and attractions; 59 percent wish to experience different cultures; 54 percent want to enhance their relationships.
MMGY Global's report is a national survey of the travel habits and intentions of 1,250 active travelers with an annual household income of $125,000 or more. With that level of income, however, it's not exactly just luxury travelers that we're talking about here, but a the larger universe of mainstream travelers as well as the higher end of the market.
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