Expedia Travel Trendwatch

As more evidence of the resilience of the American traveler, U.S. airlines will fly 209 million passengers in June, July and August of this year. That’s two million more than the same period last year according to the Air Transport Association. Hotels and resorts report full houses despite higher rates. Inter- est in overseas travel remains strong while the dollar continues to decline in value against many world currencies. SUMMER AIR TRAVEL TRENDS A silver lining for a challenging summer: fares are lower year- over- year Airfares are down compared to last year. Fares paid to Expedia’s top 10 summer destinations are actually experiencing some year-over-year declines. Airlines have only been able to push through four across-the-board fare increases this year, compared to 15 general increases in 2006. (See chart: “You’re Most Likely to Find a Deal When Flying to …”) Tighter airline capacity growth domestically could mean fewer discounts in the near term, but capacity growth on international routes bodes well for shoulder-sea- son or off-peak discounting this fall or winter. While low cost carriers are adding new aircraft at a rapid clip, the decline in domestic capacity by major carriers is keeping growth at just one percent according to Expedia.com data. But with major carriers deploying larger aircraft to international markets, international capacity seems poised to Travelers are rolling with the punches this summer. Online at www.expediatraveltrendwatch.com BY CHRIS MCGINNIS U.S. adults are taking this summer’s travel hassles in stride. Their desire to take relaxing and restorative vaca- tions remains strong despite obsta- cles such as higher hotel rates, steep gasoline prices, weak currency, and poor airline on-time performance. In fact, the recent spate of negative news about airport/airline disruptions has had a minimal impact on travel plans, according to a July Expedia. com® poll¹ of U.S. adults who have taken or plan to take a trip this sum- mer. The large majority (68 percent) has not modified their vacation plans at all because of the negative media attention; 16 percent have slightly modified their plans, and only 5 percent have canceled their sum- mer vacations. 1. Las Vegas 2. Orlando 3. New York 4. Chicago 5. Los Angeles 6. Denver 7. San Francisco 8. Seattle 9. Boston 10. Washington Top U.S. Destinations Summer 2007 Source: Expedia.com. 1 Air Travel: Silver lining for a challenging summer: fares are lower year-over-year International Travel: Americans are not so “ugly” after all Hotels: Full houses despite record-setting rates Cruises: Air travel system stress affecting cruise plans Car Rental: Rates flat year-over-year Silver lining for a challenging summer Americans are not so “ugly” after all Full houses despite record-setting rates Air travel system affecting cruise plans