Across the board the severity of the current economy has put a dent in the ability for businesses, individuals, and families to allow for excess spending. Travel, being a luxury, is naturally sensitive to these kind of fluctuations.
Compete.com analyzed year-over-year online activity in the air and hotel industries for August, September, and October to observe trends or shifts in consumer interest in travel. What they found was a decline in overall online travel research.
Many might point out that the Y-O-Y decline in October is less pronounced than expected given the severity of the economic situation. However, it’s worth noting that these are ‘online’ demand indicators. As more and more consumers shift their travel research activities online there is a natural inflation of online travel behavior. Therefore any decrease in year-over-year online travel demand spells a more severe decrease across the online and offline travel market.
Common feelings are that November 2008 has experienced similar year-over-year declines, and though the upcoming Holidays present opportunity for a step back in the right direction, trends point to further decline in the industry for the upcoming months.