Premium Travel Highest Between USA and Canada

The number of passengers traveling on premium seats between the United States and Canada was the largest market, with more than 400,000 passengers in 2009. Economic size at both origin and destination is the most significant factor in explaining differences between country pairs. The economic size explains about 76 % of premium traffic flow between United States - Canada and more than 80 % between United States - Japan and United States – United Kingdom. All other things being equal, a 10 percent rise in GDP would lead to a 6 percent increase in the number of business passengers.

Medical Tourism: Middle East, Lucrative Source Market

According to Frost and Sullivan report, the Middle East is one of the most lucrative source markets for medical tourism, with 20% of healthcare seekers worldwide coming from Gulf and other Arab states. Patients from the UAE alone spend US$ two-billion in healthcare travel on an annual basis. Currently a US$78.5 billion industry, the medical tourism sector will become a US$100-billion sector by 2012. The annual growth rate of the sector is 20-30%. Germany is the prime medical tourism hub, followed by Thailand, India and Malaysia.

Chinese Tourists Among Top Four Spenders

Mainland Chinese tourists have become the world’s number four tourism spenders, according to the United Nations World Tourism Organisation (UNWTO). Chinese tourists spent a total of US$ 44 billion outside the country in 2010. This is a 21% rise over 2009, placing them behind only Germany, the US and the UK in terms of international spending. The Chinese big-spenders are mostly middle-class travellers from a younger age demographic who value tourism as a cultural experience, and take the opportunity to buy luxury goods abroad.

UK: Low-Cost Business Travel To Stay

Businesses will remain reluctant to upgrade staff to premium class, despite the improving global economic outlook, according to the UK air regulator Civil Aviation Authority report. The recession significantly reduced the amount of UK business travel with an increased shift to economy and no-frills.The number of business passengers in premium seats on routes from London collapsed from 41 per cent in 1996 to 9 per cent in 2007, and only 5 per cent in 2009. Companies that downgraded staff travel during the downturn are unlikely to reverse this trend as they have become accustomed to the significant cost-savings made by travelling in economy and low-cost. European Union and the US will remain the most important markets for UK business travel.

US: Multi-Generational Leisure Travel And Cruises To Increase

Multi-generational leisure travel will continue to grow: one third of all leisure travelers are grandparents, and three out of ten took at least one vacation with their grandchildren last year. This incidence will continue to grow as the population continues to age.Cruises will continue to gain popularity because of the inherent appeal of the experience and attractive pricing. Almost six out of 10 leisure travelers are now interested in taking a cruise during the next two years, more than the proportion who express interest in visiting even the most popular states in the U.S. The Caribbean and Western Europe (Italy) tops the list of “international dream destinations” while California and Florida will, top the list of domestic “dream destinations.” Disney parks (Orlando being the favorite) will continue to dominate the list of “dream destinations” for family travelers (including multi-generational family travelers).

Price-Cautious European Markets: Russia, Germany, Spain

Europeans are spending less on their holidays. According to World Travel Trends Report, Russia, Germany and Spain are the most price-cautious European markets. The largest proportion (44%) plan the same amount of travel in 2011 as in 2010. 57% plans to spend about the same on travel next year, while 37% plan to reduce travel spending. Spending per trip dropped 4% to €874. The financial crisis is expected to impact the travel behaviour of 65% of Europeans in 2011.

European Outbound: Shorter Trips Increase, Nordic Markets Stronger

Europeans are taking shorter trips; the average length of stay declined 7% to 8 nights, with a 10% rise in the number of short trips (1-3 nights). In terms of major outbound markets, Nordic markets are stronger with 5-8% growth; the British market is trailing badly with a 6% decline and Germany is stagnating with 0% growth. France, Spain and Italy have low growth of 2-4%. The number of trips taken by Europeans rose 1% from January to August, 2010 but the numbers of room nights dropped 2% and spending was 3% lower, according to the European Travel Monitor.
The IPK Travel Index indicates 1% to 2% growth in 2011 for European outbound.Russians, Austrian, Swedes and Belgians are most optimistic about 2011 outbound travel; while Germans and British are the least confident.