travel – The Money ride

Online Travel

admin / March 28, 2010June 5, 2013 / KJenkins, Travel Industry, Uncategorized

Planning your next trip? Do you first open up the internet browser and google cheep flights? Or log into Expedia or Travelocity and plan your flights, rental cars, and hotel all in one? Today, technology and increased internet capabilities travel online has become fast, easy, and cheep. All things us Americans are looking for now! We have a limited attention span so the travel industry has to keep up with our habits. Meaning they have to constantly adjust to our changing ideas and demographics. User friendly websites help the everyday customer. According to Biz Travel Trends the demographics of Americans have changed significantly over the last ten years:

“In part, this shift in demographics is attributed to the ease of technological accessibility. According to the census bureau, 42 percent of Americans have a computer with internet access in their homes”.

Internet technologies and its effectiveness have driven the convergence trend. We should now expect online travel searches to be commonplace. People love the fact that they can see pictures of hotels, read reviews, and book their reservations all at the same place. Also, these websites connect directly with the hotels and airlines to get you the best deal! Travel agencies are marketing to the customer:

“A strong impression(of the site) translates to repeat business. The millennium travel trend equates to a forward-thinking corporation continuously evolving alongside swift marketing strategy and implementation…”

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According to the U.S. Travel Association the internet was used by about 90 million American adults to plan travel during the past year . 76 percent of these were online travelers planning leisure trips online. Most online travel planners are somewhat or extremely satisfied with their experiences when using the internet to plan their trips. Also, many see the internet as a very useful or essential tool for planning many aspects of a trip. The internet makes travel easy and cheeper!

Worth the tank?

admin / March 21, 2010June 5, 2013 / KJenkins, Travel Industry

How many times do you fill up your tank of gas? Most American’s fill up their cars at least once a week. Between daily commutes, errands, and vacations we use our cars all the time. A Professor from the University of Southern California has investigated how the price of gas effects our spending habits. In the short run we could:

– eliminate driving vacations

-carpool or ride public transportation

-buy cars with better gas millage

But all of these options are either expensive or inconvenient. That is why we make cuts in other areas:

“In 2007, Wal-Mart estimated that the then current higher gasoline prices take away $7.00 per week from an average family budget. Since then, this figure has certainly increased significantly”.

It is clear that gas prices effect consumer spending. Instead of cutting back on gas consumption, we cut back on eating out, vacations, and entreatment, and shopping:

“Some economists estimate that for every one cent increase in the price of gas, spending in other areas will decline by one billion dollars”.

Our reliance on gas shows how we narrow minded we are. We are willing to hurt all the other industries just as long as we don’t have to give up driving. Other industries are feeling the effects too. Consumers are noticing higher prices in grocery stores because the goods have to be transported. Warehouse stores or discount retail stores are seeing more action. Consumers want to get all their shopping done at one place for the best price possible. Gas prices effect everything!

Cyber Travel?

admin / March 16, 2010June 5, 2013 / KJenkins, Travel Industry

The current American economy has had its ups and downs causing many to not afford traveling or vacationing. Also, the airline industry has taken people on a new ride. Its rough take off since 9/11 has ricocheted into other travel industries. All of these problems have affected how the travel industry promotes itself.

Technology has changed the face of advertising. Before, a local travel agent would advise about your next vacation. With internet anyone can research for their vacation in the comfort of their home. Also, you don’t have to pay someone to do that work for you which is why travel agents were the first to go when families and individuals started cutting out unnecessary costs. In Ulrike Gretzel article for the Journal of Travel Research he explores how the web is the future for advertising. Companies are creating blogs where people can write about their experience and even upload photos! Marriott International has used this idea and started Mr. Marriott’s blog. However, Gretzel states that because technology changes so quickly:

“It is difficult for most marketing organizations, to keep pace with the evolution of new technologies…, the changesin the consumer market, and growing competition due to increasingglobalization”.

Globalization is due to the fact that boundaries can be hopped quickly and easily. Allowing individuals to form their own communities based on travel interest or destinations. Travel corporations are experimenting how to appeal to interest groups by attacking it with many different advertising strategies like search engine optimization and banner ads with Google. How are these strategies going to play out? Get ready for the ride!