Expedia Travel Trendwatch

staying at hotels about as much as they have in recent summers. After a string of increases in recent years, average load factors for U.S. airlines as well as hotel occupancy rates have declined less than 3 percent compared to last summer – a level barely detectable to summer vacationers experiencing crowded planes and full hotels. Two factors are leading to better travel deals in late summer: First, hotels worried about the impact of a cool economy and higher airfares are offering more deals such as free third or fourth nights, gas cards, meals and other credits. For exam- ple, Expedia recently expanded and enhanced its summer hotel discount with offerings of up to 50 percent off and has extended its free gas promotion to $75 for those booking at least four nights. Second, more kids are going back to school earlier in August, which means lower demand and better prices for late August at popular family destinations such as Disney World and Disneyland. (In the most recent quarter, revenues at Disney’s theme park division rose 5 percent year-over-year.) SUMMER TRENDS AND TIPS TREND: According to Expedia data, summer hotel rates in many major leisure travel destinations are down year- over-year, most dramatically in Las Vegas (down 12 percent) but also in Orlando, San Diego, Orange County, Hawaii and Myrtle Beach, SC. Trendwatch Tip: Don’t think you have to get off the beaten path to find the only good deals this year; traditional favorites are rolling out promotions and discounts. TREND: “Fly-to” destinations such as Alaska, Hawaii and the Caribbean are expe- riencing declines in bookings due to the higher cost of getting there. However, travel volume has increased to Mexico, where the U.S. dollar remains relatively strong and it’s seen as a good travel value for Americans. Trendwatch Tip: Look for lower hotel rates and promotions such as meal credits, credits for new airline baggage fees, third or fourth night free or discounted activities in fly-to destinations designed to lure those who put off by higher airfares. Or, consider an all-inclusive hotel property, where most out-of-pocket costs are built into the room rate. TREND: “Drive-to” destinations that appeal to value-conscious vacationers are some of the fastest growing in terms of hotel bookings on Expedia. For example, New Orleans has clearly rebounded, with Expedia hotel book- ings up 27 percent in the first half of 2008, compared to the first half of 2007. Other cities experiencing the most significant gains in hotel bookings among Expedia customers include Las Vegas, San Antonio, Ft. Lauderdale and Los Angeles – all of which are within a day’s drive of millions of Americans. Trendwatch Tip: If higher airfares and new fees have got you down, consider the “five hour rule.” If you can drive to your destination in five hours or less, take the car instead of the plane. TREND: As hotel occupancy rates soften, more hotels are willing to offer deals to maintain demand. For example, last year when rates and occupan- cies were rising, 1,000 hotels partici- pated in Expedia’s annual summer sale. But this year the number of participating hotels nearly doubled to 1. Las Vegas 2. New York City 3. Orlando 4. San Francisco 5. Chicago 6. San Diego 7. Los Angeles 8. Orange County 9. Seattle 10. Oahu Top Destinations Summer 2008 Source: Expedia hotel bookings for August 2008 1. New Orleans 2. Las Vegas 3. San Antonio 4. Fort Lauderdale 5. Los Angeles 6. Orlando 7. Phoenix 8. Atlanta 9. Orange County 10. Seattle Fastest Growing Destinations January - June 2008 Source: Expedia.com hotel bookings Jan-June ’08 vs Jan-June’07 POLL: When asked to rate this summer’s air travel experience compared to that of previous summers, more than half (56%) of U.S. adults feel it was about the same. A smaller percentage (37%) said it was worse, and very few (7%) said it was better. Source: July 2008 Expedia poll¹ of 2017 U.S. adults.