New data on booking travel to the U.S. from Canada, Mexico, Germany and the United Kingdom suggest that the industry must be wary of barriers to travel including the global economy, competitive promotion by other long-haul destinations, and security concerns such as the collection of traveler’s personal information. While travel from Mexico – sparked by exchange rates and promotion – may increase, travel from other destinations in the first quarter of 2010 is projected to be flat or on par with 2008.
New data from Travel Market Insights who conducts the Canada, Mexico, United Kingdom, Germany and Japan Travel Trade Barometer programs offers an insight into the critical inbound travel markets. The U.S. Department of Commerce, Office of Travel and Tourism Industries is a sponsor of the program and was the initial developer of the barometer program. The Barometer program is conducted with support from the U.S. Commercial Service and various Visit USA committees and additional sponsors.
The Results
Canada Travel Trade Barometer: First Quarter 2010 Projected to be Flat
Canada bookings to the United States are projected to continue to be flat through the first quarter 2010, according to the U.S. Department of Commerce sponsored Canada Travel Trade Barometer. On average, bookings to the United States decreased from four to nine percent in the third quarter of 2009 compared to the same period in 2008. Trade projected bookings for the fourth quarter to be on par with fourth quarter 2008. The primary factor deterring travel continues to be the global economy. On average, the level of promotion by U.S. destinations and businesses was reported as having no impact on travel to the United States from Canada.
Mexico Travel Trade Barometer: 2010 Bookings Projected to Increase in First Quarter
Mexico bookings to the United States are projected to be flat in the fourth quarter of 2009 but the majority of trade projected that 2010 would start out with a positive number of visitors to the United States, according to the U.S. Department of Commerce sponsored Mexico Travel Trade Barometer. On average, bookings to the United States decreased from one to three percent in the third quarter of 2009 compared to the same period in 2008. The primary factors driving travel up over the next six months are accommodation rates and airfare. However, both the exchange rate and the level of promotion by other long-haul destinations went from deterrents in the last survey session to motivators for travel in this survey session. This indicates that the United States will be a better value and that competition for travelers has declined, providing the United States an opportunity to expand market share in Mexico.
United Kingdom Travel Trade Barometer: Start of 2010 Projected to be Flat
United Kingdom bookings to the United States were projected to be on par with the first quarter 2009, according to the U.S. Department of Commerce sponsored United Kingdom Travel Trade Barometer. On average, United Kingdom bookings to the United States decreased from four to nine percent in the third quarter of 2009 compared to the same period in 2008. The United Kingdom is projected to continue to send about the same number of visitors to the United States during the fourth quarter of 2009. In the next six months, the primary barriers for travel are the global economy, competitive promotion by other long-haul destinations, and the collection of traveler’s personal information.
Germany Travel Trade Barometer: On Par with 2008
Germany bookings to the United States in the first quarter of 2010 were projected to be on par with first quarter 2008 bookings, according to the U.S. Department of Commerce sponsored Germany Travel Trade Barometer. On average, bookings in the fourth quarter of 2009 were also projected to be about the same as they were last year. The requirements to implement the Electronic System for Travel Authorization (ESTA) jumped to be rated as the top deterrent for travel to the United States over the next six months. Germany’s economy and other entry and exit requirements rounded out the top three factors listed as a deterrent.
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