U.S. TRAVEL AND TOURISM OUTLOOK AND TRENDSResearch, Idea & PromotionTIA Mission StatementThe mission of the Travel Industry Association of America is to represent the whole of the U.S. travel industry to promote and facilitate increased travel to and within the United States. Travel and Tourism - 2003Americas 3rd Largest Retail Sales Industry $555 billion total expenditures $95 billion in tax revenue for federal, state and local governmentsOne of Americas Largest Employers Employs 7.2 million people directly. Tourism is 1st, 2nd, or 3rd largest employer in 30 states and the District of Columbia $158.4 billion in travel-generated payrollSource: Travel Industry Association of America (TIA)Where We WereTumbling from the PeaksBetween 2000 and 2003 Domestic business travel down 15% Domestic airline travel down 14% Overseas travel to the U.S. down 30%International Visitor Arrivals to U.S. from Key Countries 2003 % Change Recovery to(in millions) 2003/2000 2000 ExpectedCanada 12.7 -14% 2007United Kingdom 3.9 -16 2006Japan 3.2 -37 Beyond 2007Germany 1.2 -34 Beyond 2007France 0.7 -37 Beyond 2007Brazil 0.4 -53 Beyond 2007Argentina 0.2 -72 Beyond 2007 Source: Office of Travel and Tourism IndustriesBright SpotDomestic Leisure Travel Slow but steady growth Stay closer to home Highway travel Short getaways Visits to small towns, rural areas Economize Travel Performance First Three Quarters 2004 During Jan Sept, 2004, domestic travel up nearly 3%Leisure travel up 2.0%, exceeded by 6.8% gain in business/convention travelStrong gains in air and hotel volume over 2003International travel to U.S. exceeding expectationsSource: Travel Industry Association of America Visitor Trends Occurring More in Past Year Source: Travel Industry Association of AmericaPercent of TIA Members ReportingNTA Operators Products Source: National Tour AssociationPercent of NTA OperatorsRV Travel Strong7.8% of all U.S. vehicle-owning households own an RV, up from 7.3% in 19977.2 million RVs on the road, compared to 6.4 million in 1997RV Shipments Up 14% in 2004RV Rentals Up Nearly 33% in 2003 and 2004 Combined6.4% of RV Rentals by International VisitorsSource: Recreation Vehicle Industry AssociationNational Parks and Public LandsNational Park Visitation up 4% through November 2004; Sale of Park Passes up 8%See Americas National Parks partnership with TIA, National Park Service and National Park FoundationTravel Policies Air Business Travelers 2004 and 2002Source: Travel Industry Association of America and National Business Travel AssociationPercent of Air Business TravelersAlternative Technologies Used By Business Travelers in Past Year, 2004Source: Travel Industry Association of America and National Business Travel AssociationPercent of Business TravelersEffectiveness and Efficiency of Technology to Replace Travel, 2004 and 2002Source: Travel Industry Association of America and National Business Travel AssociationPercent of Air Business Travelers Top Two BoxesAUTO TRAVEL PERFORMANCEU.S. auto travel up 2% through September 2004Still holding up due to: Shifts from air, especially for short-distance trips Closer-to-home travel Increasing interest in family travel Increased interest in RVsAirline TurbulenceDomestic air travel up 5% over 2003, but still 10% below 2000.International is up 14% over 2003, but better yet, up 5% over 2000.Exchange rates make U.S. even more of a bargainUS Air, United and ATA in bankruptcyAirline losses $8 billion in 2004; $23 billion between 2001 - 2003U.S. Hotel Performance Strengthens In 2004Source: Smith Travel Research% Change over Prior YearChanges to Domestic Advertising and Marketing ProgramsSource: Travel Industry Association of AmericaAmong 90% of Members with Domestic Marketing ProgramsWhere are We Going?Americans Economic Assessments Are Mixed41% now rate economic conditions as positive, up slightly48% say economy getting better vs. 42% who say it is getting worse Noticeable decline in citing economy as most important problem facing America now 30% vs. 38% - 40% in autumn of 2004Only 33% says its a good time to “find a quality job”, vs. 62% who say its a bad time Source: Gallup SurveysU.S. Leisure OutlookLeisure travel intentions remain strongTrends of the last few years will continue but some return to more normal patternsGrowth in air travel exceeding that of auto travel Continued focus on family and connections but greater participation in other activities tooSpending up 4% in 2004 over 2003 Domestic Leisure Travel Will Continue to Grow SlowlyMillion of Person-TripsSource: Travel Industry Association of AmericaDomestic Business Travel Will Rise but Still Below 2000 LevelsMillions of Person-TripsSource: TIA and Global InsightNote: Does not include combined business/leisure travelU.S. Hotel Performance Expected to Remain Healthy in 2005Source: Smith Travel Research% Change over Prior YearForecasts for Growth in U.S. Domestic Travel, 2005Total Domestic Person-Trips2.0%Leisure1.7%Business3.6%Auto2.0%Air2.0%Hotel Room