Travel trends in the wake of corporate responsibility
By Don Elzer
Watching American travel trends can give some valuable insight into the state of consumer behaviour patterns and how Americans are spending their disposable income since they seem to be the trendsetters for the rest of the Western world.
In the Okanagan, tourism is a big part of the local economy and understanding how Americans are travelling gives us a bit of insight as to how Canadians will most likely follow.
It’s a chance to watch in real-time whether we take things like climate change seriously causing us all to become more socially and environmentally responsible.
There is a belief that sustainable development will steadily advance over the next 10 years, with a few major trends influencing industry world-wide, according to a new PricewaterhouseCoopers’ report, “Corporate Responsibility: Strategy, Management and Value.”
The challenge of creating strategies that meet immediate needs without sacrificing the needs of future generations will be driven by the growing influence of: global market forces; revisions in corporate governance; high speed innovation; large scale globalization; evolving societal requirements and communication, the report says.
“Sustainable businesses balance their economic interests with the need to be socially and environmentally responsible. The companies that succeed over the long term are those that integrate ethical considerations into company decision-making, and manage on the basis of personal integrity and widely-held organisational values," said Sunny Misser, PricewaterhouseCoopers’ global leader of sustainable business solutions.
Pin pointing the issue of sustainable development from an American perspective, the report indicates that over 80% of U.S. energy demand is met by fossil fuels and is highly dependent on supplies from foreign nations. Since the market for sustainable goods and services has remained small, large companies have done little to develop and market them. Corporate America has taken a largely reactive approach to corporate social responsibility, leaving NGOs and other stakeholders to set the agenda.
Of course, it’s interesting to examine whether consumers will actually follow the Corporate America agenda.
Right now, Americans are traveling more during the spring and summer months and less in the winter months than last year, says a new FunJet study on the average American vacation.
"While June, July and August remain the most popular travel months for both years, each month was up six percentage points in 2007 than in 2006," the study said.
April and May saw more increases in travelers in 2007 than last year.
The winter months, especially December, are anticipated to see fewer travelers this year than last.
Last December was a popular travel time, with 21% of vacationers choosing that month to get away. This year's travel numbers will be lower.
What are vacationers doing?
Edu-vacations and experiential travel are two travel trends supported by this survey. Relaxing on a beach, however, still holds the No. 1 spot. Activities in order of response are ranked below:
Beaches (54%)
Culture (51%)
Adventures (41%)
Spa (19%)
Gaming/Gambling (19%)
Wine (18%)
Golf (8%)
Where are travelers going?
"More than 63% of Americans plan to visit US destinations other than Las Vegas this year for their air/hotel vacations. About 18% chose Las Vegas, 13% choose the Caribbean, and 7% each chose Hawaii and Mexico," the study says.
Some other facts from the study:
More 25- to 34-year-olds (15%) and 35- to 49-year-olds (16%) are going to the Caribbean than those 65 and older (9%).
Those in the 50-to 64-year-old and 65 plus categories (both 10%) are going to Hawaii this year more than 18- to 24-year-olds (only 3%) and 25- to 34-year-olds (4%).
Significantly, more college graduates (21%) are going to vacation in Las Vegas this year than high school and graduate school graduates (14%).
But what about the sustainability question?
Do Americans act environmentally when they visit hotels?
The short answer is no, at least according to one survey.
This past month, Starwood Hotels & Resorts Worldwide Inc., commissioned research firm Studylogic to conduct a survey, which revealed, Americans check their environmental concerns at the door.
For example:
Most of those polled said they are less likely to conserve water and electricity while they are away from home.
More than 6-in-10 said they were using more because they knew it would be free.
Nearly 70% of respondents said they open a new mini-bottle of shampoo each time they shower at a hotel.
Almost two-thirds said they were more likely to leave the lights on at a hotel than at home.
Three out of four hotel guests believe it is important to have their sheets and towels changed each day – "an environmentally unfriendly habit few practice at home," commented Starwood.
So when on vacation, posh is the way to go still. But what about those corporations setting the sustainability agenda?
There are certain business travel trends that are proving to be interesting.
Business travel used to come with some perks, perhaps a posh hotel, a gourmet meal, maybe a trip to the mini-bar and even a pay-per-view movie before bed.
But now, companies are clamping down on the frills and on spending with business travel becoming more bare bones.
"These days, it can sometimes resemble college-dorm living, involving roommates, cooking your own meals and crashing on a friend's couch," writes The Wall Street Journal.
The Journal found a Burlington, Vt., businessman who skips a hotel when he visits New York City for business and stays with his girlfriend's family. He makes a one-and-a-half hour commute into Manhattan by train.
His boss is not much better off. He often bunks at a friend's apartment in Greenwich Village, where he sleeps on a sofa.
"While companies long have been slashing costs on air travel, forcing employees to fly coach and take cheaper connecting flights, comfortable hotel stays, until recently, were still usually a given. Now, corporate cost-cutting efforts include everything from pushing employees to share hotel rooms to installing software that encourages travelers to choose cheaper digs," says the Journal.
The online magazine Travel Mole reported that the Virginia Community College System, says it pays for two nights of lodging for employees who double up in rooms when attending professional-development conferences; those who choose to go solo must pay for one of the nights themselves.
More than 76% of employers say they are booking fewer luxury hotels in favour of mid-class properties this year, according to the National Business Travel Association.
So are these leaner travel practises all about doing more with less and pushing the sustainability envelope a bit farther? It would be a nice thought, but alas, it’s all about the bottom line. In fact costs are rising, particularly hotel rates, which are up 19.2% in the US since the end of 2004.
Rates are projected to rise another 6% this year, according to Smith Travel Research, making this the fourth straight year of significant growth.
"The budget moves can instil a bit of hotel shame in some business travelers. Indeed, some flee their low-cost digs first thing in the morning, heading to plusher -- and more conveniently located -- hotels for meals and business meetings," says the Journal.
Some companies are turning to teleconferencing to cut travel costs.
Some companies even want their employees to cook.
So we will continue to see shifts in travel behaviour but at the same time many consumers will demand traditional comforts, but question will remain will we react to economic thrusts, or emotional thrusts based on a changing planet?
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