Industry News ~ Snapshot

Consumer Confident In The Future
A measure of U.S. consumer confidence was higher than expected in June, driven by optimism about the economy's prospects six months from now. Americans' view of the current economic situation deteriorated. The New York-based Conference Board's consumer confidence index fell to 83.5 in June from 83.6 in May. The index measuring consumers' attitudes about conditions six mo nths from now rose to 95.9 from 94.5, while the index measuring attitudes about the current economy fell to 64.9 from 67.3, the second monthly drop. "People are very optimistic about the future but they also see the reality of the present, and the present isn't very good," said Delos Smith, a Conference Board economist.
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Runzheimer Sees Rise In Travel Budgets
Runzheimer International predicts that companies will increase their travel budgets by 6.5% in 2004. The travel management consulting company based its prediction on its annual Survey and Analysis of Business Travel Policies & Costs. "Cloudy skies are showing glimmers of blue, and for the first time in three years, we expect that most organizations will be increasing their travel budget, not maintaining or reducing it," Runzheimer said.
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TIA Consumers Want To Stay In U.S.
TIA's War Impact Survey, as well as its annual Summer Travel Forecast, confirms recent leisure travel trends, with Americans continuing to show high interest in travel by auto, RV or motorcoach, staying within the U.S., visiting small towns or rural areas and taking short getaways (less than 3 nights). There have been some changes between the first survey in March and the third survey in May. Consumer interest in such types of travel as visiting casinos, longer trips of 7 nights or more, large city and major tourist attraction destinations, and travel by air all showed signs of improvement. The exception is traveling outside the U.S., for which negative perceptions continue to very much outweigh positive ones.
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Air Travel Spending Will Rise
Air travel spending will rise 10% in 2004, predicts Runzheimer, even though competitive pricing will continue to flourish in markets where low-cost airlines operate. The expansion of low-cost carriers and their increasing popularity among business travelers means the major network carriers "don't have much leverage for pricing escalation," said Runzheimer. Low published fares will be plentiful in 2004, but at the negotiating table, Runzheimer expects the financially strapped airlines to be stingier. On the hotel front, Runzheimer predicts a 5% increase in corporate spending, with mid-price properties benefiting most.
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Industry Execs Project Recovery In 2004
While all indications point to a stronger summer vacation than one year ago, many executives at a recent NYU Conference just don't think it will be enough. The real recovery will come sometime in 2004, many say, with this year seeing only modest gains over year-ago numbers. Further, the burden of recovery will fall to vacationers, as getting on the road to conduct business remains at depressed levels. More executives are staying at home, a 28-month phenomenon that could be signaling a shirt in the way businesses handle their travel plans. According to Bjorn Hanson, Global Hospitality Industry Managing Partner, PricewaterhouseCoopers, the business slump has lasted four months longer than the average corporate travel buyer stays at their job. He believes that this has forever altered what is considered the normal amount for an employee to travel. "Travel planning is a learned behavior and we have had 28 months of rigid business travel policy. A whole generation of this has moved on since the good old days and no one who is making decisions remembers the old days," Hanson explained.
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Key Issues Facing Associations
Management guru Tom Peters and Roger Dow of Marriott were asked at GWSAE's recent Springtime event to identify the most important issues on which associations must focus in the coming years. Roger Dow's points were: 1. Re-imagine your value proposition regularly. 2. Do what you're good at and partner the rest. 3. Become a sought after source. 4. Become incredibly convenient. Peters' passionately believes that radical change in culture and technology will require associations to radically change - and those that fail to do so will cease to exist. He said: 1. Associations have a wonderful opportunity on the horizon. Lifetime employment will essentially cease to exist in the next decade. Therefore, community will not come from within a company, but within associations smart enough to create such opportunities. 2. Technology, and the options it presents, must be our focus and online event registration is a must. 3. Face-to-face meetings will continue, but only if the content is new and challenging. His 10 point Manifesto 2003 can be found at www.tompeters.com.
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PWC Downgrades RevPAR Forecast
PricewaterhouseCoopers has downgraded its forecast for the hotel industry, predicting that 2003 will represent the third straight year of declines in RevPAR. The forecast calls for a 0.4 percent drop in 2003, in addition to no real RevPAR recovery within the next 12 quarters, citing consumers' desire to travel by car and not air as one of the primary reasons.
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Travellers Urged To Resume Asia Visits
The Asia-Pacific Ministerial Summit on Crisis Management, convened by the World Tourism Organization (WTO), welcomed the news that the SARS epidemic is under control and issued the following joint message to travelers around the world: Countries of the Asia-Pacific region are cooperating actively and responsibly with WHO in implementing entry and exit screening to ensure the health and safety of visitors and prevent a reappearance of the disease. As travel to the region resumes, we look forward to reconnecting with our international visitors and we are confident that Asia-Pacific will quickly recover its position as a global business hub and the driving force for tourism growth worldwide."
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Cruise Industry Continues Growth
The cruise industry is doing something right. Since 1980, the Cruise Line International Association (CLIA) notes the cruise industry is growing at an 8.4% annual pace. Last year alone, more than 7.6 million North Americans took a cruise, 700,000 more people than in 2001.
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National Events & News

International Travel Awards Call For Entries > More Info
The HSMAI

   • St. Louis - Sept. 9, 2003 ~ Millennium Hotel
   • Boston - Sept. 30, 2003 ~ Sheraton Boston
   • Atlanta - Oct. 7, 2003 ~ Hyatt Regency
   • Chicago - Oct. 30, 2003 ~ Holiday Inn O'Hare
   • Minneapolis - Oct. 23, 2003 ~ Millennium Hotel
   • Dallas - Nov. 6, 2003 ~ Hotel InterContinental
   • Washington, DC - Nov. 25, 2003 ~ Hilton Washington & Towers
   • Anaheim - Dec. 11, 2003 ~ Paradise Pier

Contact: HSMAI Meetings Quest
c/o JTDunn Enterprises, 513 Commerce Drive, Upper Marlboro, MD 20774
(301) 249-4600, Email: meetingsquest@jtdunninc.com; www.meetingsquest.com

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Selling Tips Marketing Myths About Women by Kevin Nunley www.drnunley.com (888) 429-6203

We have long known that women determine how up to 80 percent of a family's income is spent. That means trillions of dollars in sales for companies each year.

Here are 3 myths about women that you should consider when marketing your business:

1. Women won't buy based on relationship alone. Not true. Women frequently choose products or services because the company favors the environment, contributes to community programs, or deals fairly with disadvantaged nations or groups.
2. Woman like to shop. Not necessarily. Studies show more than half of women say shopping is a chore they would rather skip. Don't expect to increase sales by making the shopping experience longer or more involved.
3. Woman don't start businesses. That myth becomes more wrong each year. Woman now start new companies twice as often as men. Companies owned by women employ more people than the 500 biggest corporations in America.

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