It’s Time to Consider the Group Travel Market


Matt Creer | 16 January 2006 |

Online booking for group travel has always been an elusive pursuit; typically, even the larger booking engines have had to limit groups to four or fewer members.  Recently, however, the travel industry has seen a surge in the technological capabilities of handling larger and more detailed vacation packages - as a result, many traveling experts are predicting an increase in online reservation capability for larger, more encompassing travel plans.

Group Travel Planet, Groople, Orbitz, and Travelocity are all large online booking agents that have embraced new capabilities of the internet.  Each specializes or has sections that specialize in arranging all-inclusive itineraries for leisure and business travelers.  While it is still true that, for the most part, entire conventions with hundreds of participants are still best handled over the phone, smaller group reservations can now easily be made with a few clicks of the keyboard and mouse.

As a result, many of these companies are targeting groups that generally have relatively uncomplicated agendas, such as those traveling for weddings, family reunions, church groups, and sporting events.  Experts say that the recent spike in fuel prices and traveling costs has resulted in cooperative travel planning among these groups, much like carpooling and public transportation have gained popularity in the general population.  Industry spokesmen believe the rising costs will result in more cost-saving strategies like group packages rather than a cessation of travel altogether.

"While the National Tour Association believes that our industry must do its part to assist in energy conservation, it’s equally important to continue encouraging Americans to invest in travel and tourism," said NTA president Hank Phillips. "One effective way to do this is through group travel. Group travel is not only more efficient in terms of fuel consumption, it also is more economical for travelers with today’s gas prices."

The National Tour Association reports that it currently has more than 4,000 professional members in 28 countries involved in the development of the group package traveling niche.  And there is plenty of opportunity to spread around.  Michael Stacy, chief executive of Groople, has been quoted as saying that group travel accounts for $40 billion a year in the United States and Europe.  That’s a large financial pie to divvy up, and Stacy anticipates that more online booking agents will take advantage of the trend.

"It still seems to be virgin territory as far as the competitive landscape is concerned," Stacy said. "I fully anticipate that there will be competitors nipping at our heels."

Part of the increased interest is due to increased travel by the "baby boomer" generation.  In the past, group traveling has been primarily associated with senior citizens and cruise ship packages.  Most of us probably envision an older couple pushing a shuffleboard disc across the deck of a large boat.  It is the "boomers", however, who are forcing the travel industry to change that perception, and therefore the way in which packages are put together and marketed.  Gone are the staunch rules and regulations imposed upon the traveling members; flexibility and variety are now two key ingredients in successful group package marketing.

A survey conducted by the NTA in 2005 showed that although seniors still purchase the highest percentage of group tours (46%), younger generations are gaining ground and the trend has definitely shifted toward the 39 - 60 age group, who now comprise 33% of package purchasers.  Boomers also doubled their presence in the overall group package customer base from 2001-04, going from 8 to 16%.  This younger generation is generally more accustomed to traveling than seniors, and is proving to be more resistant to the heavily structured style of touring that their parents favored.  

As free time becomes less and less of a commodity in our lives, the ease and rapidity of the internet gains appeal in many aspects, not least of all planning and booking trips.  A spokesperson with Group Travel Planet has stated that the average lead booking time has decreased from well over 90 days a couple of years ago to about 76 days currently.  People simply don’t have the time anymore to plan well in advance, and that trend will most likely continue.  As it does, the variety in the types of groups using the internet to book trips will also increase.

If your property lends itself to smaller groups for weddings, reunions, sporting events, and school trips, it is well worth your while to look into what Orbitz, Travelocity, and Group Travel Planet can do for you.  Contact their advertising departments to find out what kinds of packages they can put together for you.  If you own an individual property, consider putting together several types of "group packages" on your "Specials" page to tap into this growing market.  Also consider some regional businesses to "partner up" with, including theatres, restaurants, amusement parks, art galleries, and retail stores.  For seasonal packages, consider ski areas, fishing guides, hunting guides, golf courses, festivals, and fairs.

Group travel is a niche that is not going away; although at this point it’s impossible to predict how large it will grow, experts believe it will increase in significance as technology enables online booking agents to better accommodate the "one-stop-shop" approach to consumerism.  Research the various agents to choose the best fit for your business and get in on the ground floor on this one.  It may be a long and profitable ride.

 

Matt Creer - Blizzard Internet Marketing, Inc.

    
    
    
    
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