This Ugly Recession: Higher-Income US Online Travelers And Their Planned Travel Cutbacks

Higher-income US online travelers — i.e., people who report household incomes of $100,000 or more per year — represent nearly 30% of all travelers but 45% of total US estimated leisure travel spending. Normally, this group is less affected by economic slowdowns. But the current recession is taking its toll on this audience, with even 45% of travelers who earn $200,000 or more annually saying their personal financial conditions worsened in the preceding year. Members of this same group are also the most concerned about how they will fare in 2009. This concern takes its toll on high-end travelers' leisure travel plans: 50% of those who earn $100,000 to $149,999 per year are considering cutting their travel budgets. A sound, practical eBusiness strategy that incorporates a focus on communicating quality, extending relevant value, and exploring relevant ancillary revenue opportunities is required to reach and effectively sell to higher-end customers.