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Ten trends in travel that will shape 2012

February 20, 2012 | Hotel Marketing

During a webinar Thursday titled “PhoCusWright’s Hot Topics 2012,” PhoCusWright analysts weighed in on 10 topics and trends that will shape the travel landscape this year.

Consumer sentiment: The consumer sentiment on travel went from “we can’t” in 2009 to “we shouldn’t” in 2010, according to Carroll Rheem, director of research at the Sherman, Connecticut-based travel industry research company. In 2011, the sentiment was “we’re outta here!” But at the same time, the economic warning signs kept coming. Most consumers are still in the process of sorting through the details, Rheem said. “I wish I could say that this is the year they will be ready to indulge, but unfortunately that’s not really what they have in mind,” she said. The good news is consumers are not going in the opposite direction. “Consumer intentions are indicating that leisure travel will achieve small but positive gains in 2012,” Rheem said.

Social media: Travelers aren’t booking their trips on social-media networks, yet social-media is poised to enhance the travel research experience, said Douglas Quinby, senior director of research for PhoCusWright. As discussion forums are making a comeback and instant images are growing in popularity among consumers, 2012 is expected to be another big year for social media, Quinby said, noting that social media’s “impact on retailing is just getting started.”

Capital: Now might be the best time in years for travel companies to raise capital, said Lorraine Sileo, VP of research for PhoCusWright. Sileo referenced recent capital raised by relatively new companies in the travel space: Groupon with US$136 million, Bloomspot with US$35 million, Inspirato with US$38.8 million. “What’s interesting is … they all have a unique and different twist,” she said. “Basically if your company has a good management team, good track record, unique technology and product solutions … you should be able to raise capital now.”.

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