WASHINGTON, DC| Reflecting negative consumer confidence and rapidly rising travel and gas costs post-hurricane season, it’s not surprising that the Travel Industry Association of America’s (TIA) fourth quarter 2005 Traveler Sentiment Index dropped almost 6 percent from the previous quarter and 13 percent from a year ago to an unprecedented 83.8 - its lowest point ever. Strong consumer concerns about the affordability of travel and the finances they have available to travel weighed heavily on the decline. It is important to note that the timing of the survey impacted the results, which do not reflect the turnaround in consumer confidence and improved employment situation that began late fall. The survey took place from October 6-16, 2005.

According to Suzanne Cook, TIA’s Senior Vice President of Research, “The TSI has been trending downwards primarily, it appears, in reaction to rapidly rising travel-related costs and consumers’ pessimistic views about the affordability of travel and their financial ability to travel.”

She adds that although these concerns are realistic, they may not impact travel for long: “recent rapid declines in the cost of gasoline, as well as early reports of an improvement in consumer confidence overall, may mitigate some of these negative perceptions in the months to come.”

Consumers’ perceptions of the overall affordability of travel plummeted 24.6 percent to reach its lowest level since the beginning of the survey, while their ability to take pleasure trips based on their own finances also reached an all time low, dropping 14.3 percent. In addition, the quality of service received while on a trip was perceived to be lacking this quarter.

On a brighter note, time and interest certainly won’t be hampering travel this quarter. Both indexes increased over last quarter by 3.7 percent and 0.9 percent respectively.

Due to industry concerns about the threat of terrorism, TIA began to measure consumer perceptions of travel safety starting with the fourth quarter 2001 (October) survey. While travel safety is not a component of the Traveler Sentiment Index, it can be indexed and seasonally adjusted by itself against the baseline of the fourth quarter of 2001. The Travel Safety Sentiment Index for this quarter is 114.0, a slight increase from the last quarter (+3.3%), but still down compared to this time last year (-8.5%).

On a regional basis, the South shows the most significant increase in the “interest” (+17.8%) and “time” (+12.9%) components from last quarter, and the lowest decline in the overall index. Finances are a particular concern for residents of the Midwest compared to last quarter, with this region showing the largest declines in the perceived affordability of travel (-32.0%) and in the ability to travel based on their finances (-25.6%).

Members of the media can obtain TIA’s latest Traveler Sentiment Index report, including additional analysis and charts for each index, by sending an email to [email protected].

NOTE: TIA’s quarterly Traveler Sentiment Index (TSI) is conducted four times per year and is a running gauge of consumers’ interest in leisure travel and their perceived ability to travel. The study consists of five criteria: interest, time, finances, affordability, and service quality. The TSI is based on quarterly interviews with approximately 1,000 U.S. adults who have taken at least one trip in the past year. Each criterion is measured individually and then combined to create an overall index score. The Traveler Sentiment Index is seasonally adjusted, and the baseline year for the Index is the year 2000.

TIA is the national, non-profit organization representing all components of the $600 billion travel industry. TIA's mission is to represent the whole of the U.S. travel industry to promote and facilitate increased travel to and within the United States.

Cathy Reynolds
Manager, Media Relations and Lead Manager, IPW Press Operations
+1 202 408 2183
U.S. Travel Association