Over the course of the last few years the travel industry suffered terribly. The word “staycation” sent massive shivers down the spines of every travel, hotel and resort professional, as well as those who provided products to the industry. With over nine percent unemployment, a vast number of Americans chose to put their suntan lotion and luggage sheepishly back into storage and hunker down at home.
Even with the widespread collapse in travel spending during the recession, hundreds of billions of dollars (really think about that number, hundreds of billions—that’s a lot of greenbacks) were exchanging hands. Consider the statistics below, provided by The U.S. Travel Association, the national, nonprofit organization representing all components of the $704 billion travel industry. Then read distributor sales tips and advice provided by leading suppliers in this market niche. If this is revenue that the travel industry can generate during a recession, just think about what it is capable of in recovery mode. When you’re done digesting that information, enjoy a collection of advice and case studies from industry-leading resort and travel product suppliers on how you can generate revenue within this highly profitable market.
Stats from the Leisure Traveler
• Direct spending on leisure travel by domestic and international travelers totaled $489.7 billion in 2009.
• Spending on leisure travel generated $77.3 billion in tax revenue.
• 3 out of 4 domestic trips taken are for leisure purposes (77 percent).
• U.S. residents logged 1.5 billion person‑trips* for leisure purposes in 2009.
• Top leisure travel activities for U.S. domestic travelers: (1) visiting relatives; (2) shopping; (3) visiting friends; (4) rural sightseeing; and (5) beaches.
* Person-trip defined as one person on a trip away from home overnight in paid accommodations or on a day or overnight trip to places 50 miles or more [one-way] away from home.
Stats from the Business Traveler
• Direct spending on business travel by domestic and international travelers, including expenditures on meetings, events and incentive programs (ME&I), totaled $214.7 billion in 2009.
• Meetings, Events and Incentives travel accounted for $84.7 billion of all business travel spending.
• U.S. residents logged 432 million person‑trips for business purposes in 2009, with more than one-third (35%) for meetings and events.
• For every dollar invested in business travel, businesses benefit from an average of $12.50 in increased revenue and $3.80 in new profits (Oxford Economics).
Distributor Tips & Advice
“We are seeing a lot of customized kits whose contents depend on the function of the company. A lot of these customers want to put together a travel kit for their customers with components are unique to what their services require.” – Courtney Jordan, sales and marketing coordinator, Leashables by OraLabs Inc., Parker, Co.
“Include a giveaway item as part of a travel package promotion to lure people to the property. For example, a robe giveaway with a three-day minimum stay.” – Laura Lewis, sales and marketing manager, Boca Terry, Deerfield Beach, Fl.
“Although green products took a hit since the recession, we see hotels, resorts and transportation companies continuing to promote their green properties, LEED [Leadership in Energy and Environmental Design] certifications and advancements in saving energy.” – Roni Wright, MAS, vice president, The Book Company, Delray Beach, Fl.
“Give end-buyers more bang for their buck. Cross-merchandise your products and don’t feel like anything is out of bounds. Travelers like to be wowed and a lot of times it can be done with packaging and cross-pollinating products that previously you wouldn’t have considered.” – Shawn Kanak, vice president of sales, Towel Specialties, Baltimore, Md.
“Try contacting the marketing departments [and] not just the hospitality department, because marketing often offers room drop gifts for their corporate group clients. They go through a lot of products in giveaways.” – Laura Lewis, Sales and Marketing Manager, Boca Terry, Deerfield Beach, Fl.
CASE STUDIES
“We are kitting more orders than ever before, and they are receiving superb feedback and results. We are even taking third party supplier products and fulfilling them with our products. We recently produced an order for Hawaiian Tropic and their annual bikini contest held at the Palms Hotel in Las Vegas. All of the participants were to receive a luxurious Turkish robe from Towel Specialties. We enhanced the offering by having them ship the other amenities that they were planning on giving away and we kitted them into the robe baskets. One package with multiple products, including Hawaiian Tropic lotions, was given to all participants in the event as a room drop gift.” – Shawn Kanak, vice president of sales, Towel
Specialties, Baltimore, Md.
“American Express is currently using our custom Sudoku puzzle books as a credit card premium in airports around the country. Sudoku puzzles are a perfect way to capture the attention of travelers.” – Roni Wright, MAS, vice president, The Book Company, Delray Beach, Fl.
