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Americans prefer independence (when traveling)
Over here, the travel business accounts for $271 billion a year, according to travel industry research firm PhoCusWright, and only 7 percent of that ($18 billion) is spent on travel packages. Meanwhile, the UK has an $84 billion-a-year travel industry – not even a third of ours – and they spend $30 billion a year on packages (35 percent of the local market).
What's the deal?
There are plenty of reasons bandied about. Europeans tend to take longer vacations, with 10 to 14 days not unusual (especially for the residents of northern European countries), and they tend to take more time off than the workaholics in the United States. They go more and longer, which translates to increased spending.
But, this doesn't explain the affinity for packages. What makes Americans different?
Well, independence is a major factor. Americans usually prefer to set their own agendas, deciding what they want to see and do, taking on the task of research (and coming to places like Gadling – thanks, by the way, we all appreciate it) and putting together the pieces on their own.
Maybe we're getting lazier or trying to seem like sophisticated Europeans, but the packaged travel market is growing on this side of the Atlantic, even rapidly. Of course, you need to compare it to starting point to understand how this can happen. In 1999, the packaged travel market was effectively nonexistent. Some large, enterprising online travel agencies, however, created a market from nothing, and turned it into an $8 billion space by the end of last year. This "new" offer has grown at a compound annual growth rate (CAGR) of 50 percent during this time, while tour operators have seen aggregate revenues decline at a compound annual rate of 5 percent.
So, we're still not heavy package buyers in the United States, but taking the easy way out is becoming more and more attractive.
Filed under: Business, North America, United States
Reader Comments (Page 1 of 1)
Richard Jul 21st 2009 8:44AM
My wife and I took a Clarkson tour (years ago) from Britain to Rome. The Brits on the tour ate bangers and mash in the hotel dining room and were not willing to try the Roman restaurants. They were pretty group oriented.
Neumann Millweed Jul 21st 2009 6:47PM
My wife and I have been traveling the UK, Europe, and Canada for the past ten years under tha package deal with Globus. It's easier on us for them to have all the arrangements made and we just follow 'em. In my opinion, the hotels we stay at are better, travel is better ('cause I ain't driving), getting into attractions are better (I'm not standing in line trying to get tickets or passes), better meals (they know go to some of the better restaurants) and I don't have to fiddle too much with the luggage.
Some may not like the early morning rousting to get breakfast and be on the road, but my wife and I have never had a problem with it. I believe we've seen things and been to places that we normally would not have visited. We're quite satisfied with our choice to travel on a packaged tour.
We still travel independently in the US, though. Traveling in a packaged tour inside the US hasn't been to our liking. Too expensive and I just can't see doing it that way. Maybe it's tha language thing, don't know.
Rob Jul 21st 2009 12:04PM
Could it be due to the fact that throughout the United States one doesn't face the language and cultural hurdles that can be found throughout Europe? I can fly from New York to L.A. and still communicate, but fly from Paris to Athens and the transition isn't as easy.