SpendTrend Summer Travel and Spending Analysis

Size: px

Start display at page:

Download "SpendTrend Summer Travel and Spending Analysis"

Spencer Lane
5 years ago
Views:

SpendTrend Summer Travel and Spending Analysis July 2018 1 2018 First Data Corporation. All rights reserved.

1 SpendTrend Summer Travel and Spending Analysis July First Data Corporation. All rights reserved. The First Data name, logo and related trademarks and service marks are owned by First Data Corporation and are registered or used in the U.S. and many foreign countries. All trademarks, service marks, and trade names referenced in this material are the property of their respective owners.

Executive summary YoY Growth We selected ten popular summer destinations for this analysis. 5.5% Restaurants 2.2% Gas Stations 0.6% Hotels Larger Markets Boston, MA Smaller Markets Milwaukee, WI 5.

2 Executive summary YoY Growth We selected ten popular summer destinations for this analysis. 5.5% Restaurants 2.2% Gas Stations 0.6% Hotels Larger Markets Boston, MA Smaller Markets Milwaukee, WI 5.5% 2.2% Leisure Travel 11.1% International Travelers Chicago, IL Los Angeles, CA Myrtle Beach, SC Providence, RI Summer Destination Highlights San Diego, CA Salisbury, MD Seattle Myrtle Beach Providence Seattle, WA Virginia Beach, VA $ % 15.1% Highest average ticket for hotel spend Fastest growing market for hotel spend Fastest growing market for international visitors 2 Source: First Data 2017 aggregated same-store spending data. Note: Summer is defined as Memorial Day weekend through Labor Day weekend. Larger markets are those that rank among the top 20 markets in the U.S. based on total dollar spending across summer spending categories. Smaller markets are those that rank below the top 50 markets. "Leisure" includes golf/vacation resorts, boating/marina services, amusement parks/zoos/aquariums, tourist attractions/museums, campsites/trailer and associated equipment rentals. "Travel" includes air travel, railways, taxi/limo/chartered bus/rideshare services, cruise lines, car rentals, bridge/tunnel/turnpike tolls & fees.

Popular summer destinations Larger markets Summer and Top Category Spending Growth Larger popular summer destinations had many common characteristics: Coastal locations Great beaches and/or boating

3 Popular summer destinations Larger markets Summer and Top Category Spending Growth Larger popular summer destinations had many common characteristics: Coastal locations Great beaches and/or boating Numerous golf courses Vacation resort options Outdoor entertainment Cultural/arts attractions Active restaurant industry Market Summer Spend YoY Growth Largest Spend Category YoY Growth Boston 9.6% Restaurants 14.7% Los Angeles 4.5% Travel 15.1% Seattle 4.0% Travel 4.3% San Diego 3.2% Leisure 3.7% Chicago 2.7% Leisure 16.7% 3 Source: First Data 2017 aggregated same-store spending data. Note: Summer spend is the aggregated credit and debit card spending during summer across the following industries (as defined by the Department of Commerce): leisure, hotels, travel, gasoline, restaurants.

Popular summer destinations Smaller markets Summer and Top Category Spending Growth Commonalities include coastal locations, extendedstay accommodations, and family-oriented leisure activities.

4 Popular summer destinations Smaller markets Summer and Top Category Spending Growth Commonalities include coastal locations, extendedstay accommodations, and family-oriented leisure activities. Smaller cities produced mixed results with only three of five showing positive growth. Market Summer Spend YoY Growth Largest Spend Category YoY Growth Providence 12.1% Restaurants 20.6% Salisbury 3.0% Restaurants 4.3% Myrtle Beach 0.6% Hotels 14.2% Milwaukee -1.6% Travel 8.4% Virginia Beach -0.1% Hotels 7.2% 4 Source: First Data 2017 aggregated same-store spending data.

5 International travelers Summer spending breakdown Summer Spend by Non-U.S. Issued Cards Across the selected popular summer destinations, Leisure and Gas the smallest categories of summer spend for international travelers both showed double-digit growth rates. Category YoY Growth Average Ticket Percent of Summer Spend Travel 2.2% $320 35% Hotels 2.8% $437 28% Restaurants 5.6% $50 22% Leisure 10.6% $148 13% Gas 11.2% $30 2% Summer Spend 4.3% $119 5 Source: First Data 2017 aggregated same-store spending data in the 10 selected popular summer destination markets.

International travelers Summer dining spend Summer Spend by Non-U.S. Issued Cards Casual Dining made up, by far, the largest portion of Dining spend and saw growth of 4.0%.

6 International travelers Summer dining spend Summer Spend by Non-U.S. Issued Cards Casual Dining made up, by far, the largest portion of Dining spend and saw growth of 4.0%. Format YoY Growth Average Ticket Percent of Dining Spend Casual Dining 4.0% $83 52% Upscale Dining 4.4% $179 22% While QSR was the smallest portion of Dining spend, it was the fastest growing at 18.8%. Family Dining 7.9% $39 13% Fast Casual 7.4% $25 8% QSR 18.8% $13 6% Total Dining 5.6% $55 6 Source: First Data 2017 aggregated same-store spending data in the 10 selected popular summer destination markets.

International travelers Summer leisure spend Spend by Non-U.S. Issued Cards Spending at Amusement Parks represents more than half of the Leisure category with 6.8% growth.

7 International travelers Summer leisure spend Spend by Non-U.S. Issued Cards Spending at Amusement Parks represents more than half of the Leisure category with 6.8% growth. Type YoY Growth Average Ticket Percent of Leisure Spend Amusement Parks 6.8% $295 56% Vacation Resorts 11.5% $88 13% Tourist Attractions 5.6% $90 7% Health Spas 4.3% $84 4% Theater and Live Shows 35.9% $231 3% All Remaining Categories 17.4% $79 17% All Leisure 10.6% $148 7 Source: First Data 2017 aggregated same-store spending data in the 10 selected popular summer destination markets.

Average ticket analysis International vs. domestic travelers Average Ticket Comparison International travelers spend over 50% more per purchase than domestic travelers in many categories.

8 Average ticket analysis International vs. domestic travelers Average Ticket Comparison International travelers spend over 50% more per purchase than domestic travelers in many categories. Domestic Cards Non-U.S. Issued Cards Boat Dealers Professional Sports Events $471 $454 $691 $802 Differential 70% 52% Hotels $351 $438 25% Marinas/Marine Services $260 $434 66% Amusement Parks $168 $287 71% Theater and Live Shows $164 $232 42% Billiards and Pool Halls $37 $ % Public Golf Courses Bowling Alleys $61 $111 $39 $62 80% 60% 8 Source: First Data 2017 aggregated same-store spending data in the 10 selected popular summer destination markets.

Domestic city travel pairings Larger markets Percentage of Domestic Travelers from Origin City Residents from New York Destination Origin City and San Francisco Los Angeles Chicago Boston are among

9 Domestic city travel pairings Larger markets Percentage of Domestic Travelers from Origin City Residents from New York Destination Origin City and San Francisco Los Angeles Chicago Boston are among the most frequent travelers to larger summer destination markets. San Francisco 10% Flagstaff New York City 4% Los Angeles 3% Rapid City New York City 4% Scranton Washington 3% New York City 10% San Diego Seattle San Francisco 6% Phoenix 6% Pensacola San Francisco 6% Los Angeles 5% Iowa City 9 Source: First Data 2017 aggregated same-store spending data. Note: Percent of domestic travelers from origin city shows the percentage of U.S. based travelers to the destination city from the two largest originating cities as well as the originating city with largest change from the previous year. Domestic travelers defined as cardholders with a residency greater than 200 miles from the destination city where spend is recorded. Analysis included only origin cities with > 500 unique cards.

Domestic city travel pairings Smaller markets Percentage of Domestic Travelers from Origin City By and large, popular smaller markets draw from a narrower radius than do larger markets.

10 Domestic city travel pairings Smaller markets Percentage of Domestic Travelers from Origin City By and large, popular smaller markets draw from a narrower radius than do larger markets. Bakersfield Destination Milwaukee Minneapolis 4% Origin Providence Barnstable Detroit Philadelphia 2% 2% Washington 2% Virginia Beach Odessa Dallas / Ft. Worth 3% New York City 6% Myrtle Beach Charlotte 10% Washington 4% Salisbury Pittsburg 3% Glens Falls New York City 9% Hinesville 10 Source: First Data 2017 aggregated same-store spending data.

Top origin cities Most Common Origin Cities of Domestic Summer Travelers Large costal metropolitan areas supply the most travelers to popular summer destinations across the U.S. #1 New York City #2 San Francisco Bay Area #4 Washington #3 Los Angeles 11 Source: First Data 2017 aggregated same-store spending data.

11 Top origin cities Most Common Origin Cities of Domestic Summer Travelers Large costal metropolitan areas supply the most travelers to popular summer destinations across the U.S. #1 New York City #2 San Francisco Bay Area #4 Washington #3 Los Angeles 11 Source: First Data 2017 aggregated same-store spending data. Note: Calculated based on cardholder usage in each destination city for the analysis period.

Top summer leisure activities Larger markets California cities feature amusement parks while Chicago and Seattle benefit from appealing tourist attractions.

12 Top summer leisure activities Larger markets California cities feature amusement parks while Chicago and Seattle benefit from appealing tourist attractions. Boston Chicago Top Leisure Activities Theater and Live Shows Health / Beauty Spas 30% 9% Vacation Resorts 25% Tourist Attractions / Exhibits Percent of Total Leisure Spend / City 16% Los Angeles Amusement Parks Country Clubs 73% 4% San Diego Amusement Parks Tourist Attractions / Exhibits 59% 9% Seattle Country Clubs Tourist Attractions / Exhibits 36% 14% 12 Source: First Data 2017 aggregated same-store spending data.

Top summer leisure activities Smaller markets Top Leisure Activities Percent of Total Leisure Spend / City The smaller markets are more popular for family-oriented activities.

13 Top summer leisure activities Smaller markets Top Leisure Activities Percent of Total Leisure Spend / City The smaller markets are more popular for family-oriented activities. Milwaukee Public Golf Courses Amusement Parks 46% 15% Myrtle Beach Trailer Parks & Camp Sites Recreational Vehicles 31% 21% Providence Marinas / Marine Services Public Golf Courses 24% 14% Salisbury Vacation Resorts Marinas / Marine Services 32% 12% Virginia Beach Time Shares Country Clubs 26% 23% 13 Source: First Data 2017 aggregated same-store spending data.

14 Methodology Definitions Domestic travelers defined as cardholders with a residency greater than 200 miles from the destination city where spend is recorded. Larger markets are those that rank among the top 20 markets in the U.S. based on total dollar spending across summer spending categories. "Leisure" includes golf/vacation resorts, boating/marina services, amusement parks/zoos/aquariums, tourist attractions/museums, campsites/trailer and associated equipment rentals. Smaller markets are those that rank below the top 50 markets in the U.S. based on total dollar spending across summer spending categories. Summer is defined as Memorial Day weekend through Labor Day weekend. Summer spend is the aggregated credit and debit card spending during summer across the following industries (as defined by the Department of Commerce): leisure, hotels, travel, gasoline, restaurants. "Travel" includes air travel, railways, taxi/limo/ chartered bus/rideshare services, cruise lines, car rentals, bridge/tunnel/turnpike tolls & fees. Measurement and Scope Evaluated U.S. markets at the Metropolitan Statistical Area (MSA) level to identify cities with a relatively high summer spending index for the five selected industries. Index is computed based on simple monthly average of total 2017 spending (for example, an index of 120 indicates the market experienced monthly summer spending in the selected industries at a level 20% higher than a typical month during the year). MSAs were then organized in descending order by total spending volume across the five focus categories, and then a sample of ten popular summer destinations based on their high summer spend index were chosen from the top 100 markets. Additional views include international vs. domestic spending. Other Details Same-store sales based on activity in 2016 and This study included activity from 88,406 brick & mortar businesses. The time period studied captured activity from over 80 million individual credit and debit cards. 14

15 15

Location, Location, Location. 19 th Annual NIC Conference NIC MAP Data & Analysis Service

Location, Location, Location. 19 th Annual NIC Conference NIC MAP Data & Analysis Service Location, Location, Location 19 th Annual NIC Conference NIC MAP Data & Analysis Service The Great Occupancy Decline 94% Occupancy Trends Majority Nursing Seniors Housing 93% 92% 91% 92.8% 91.0% 90% 89%