Travel trends

0 Comments | Insight on the News, June 21, 1999 | by Donna DeMarco

American travelers plan to take 10 million more trips this summer than last, despite increases in hotel rates, airfare, car-rental costs and gasoline prices. Thanks to high consumer confidence, people will travel more often, stay longer and spend more money on their vacations this year.

"It's going to be a record travel season," says Jason Ader, a senior analyst with investment bank Bear, Stearns & Co. "The economy's strong. Consumers feel good. The stock market's up. And the prices we're seeing are as high as they've been since we've been keeping records, and that's since the fifties."

In all, American vacationers will take more than 270 million trips this summer -- 4 percent more than last year, according to the travel association. The top 10 destinations are Florida, California, Hawaii, Colorado, New York, Texas, Nevada, Arizona, Washington state and Washington.

During such trips, a family of four will spend $213 a day for meals and lodging -- an increase of $3 from last year, according to a forecast released by the Travel Industry Association of America. In some cases, price increases are expected to double the inflation rate, which was 2.1 percent in March. The average daily price tag on a hotel room will increase 3.9 percent to $81.77 from $78.67, according to a report by Price Waterhouse Coopers and Bear, Stearns.

Traveling by car this summer is expected to cost about $10.66 per 100 miles, which covers gas, tires and maintenance, according to the American Automobile Association. The recent increase in gasoline prices should make long road trips more expensive. Nevertheless, car-rental companies are expecting more leisure rentals this summer compared with last and are pushing prices up accordingly.

Tickets on the major North American airlines will continue to increase, with prices jumping 10 percent by year's end, according to the Price Waterhouse Coopers report. But the higher prices are not turning vacationers away from air travel. "Given the strong economy, and if all other factors are constant, travelers will most likely take to the domestic skies in record numbers despite higher costs to the wallet," says Dexter Wood, a Price Waterhouse Coopers consultant.