October Consumer Spending and Saving. A research report prepared for:

October Consumer Spending and Saving A research report prepared for: October 13, 2011

Research Method This research was completed online among a random sample of consumers aged 18+. A total of 2,017 interviews were completed. In addition to a general population sample, two sub-groups Affluents, and Young Professionals were targeted and balanced by the general population. o o n= 540: Affluents defined as having a minimum annual household income of $100,000 n= 534: Young Professionals defined as less than 30 years of age, having a college degree, and a minimum annual household income of $50,000 Interviewing was conducted by Echo Research between September 28 October 2, 2011. Overall the results have a margin of error of +/- 2.2 percentage points at the 9 level of confidence. 2

HOLIDAY TRAVEL 3

Holiday Travel Plans between November and December About three in ten consumers among the general population will be traveling over the actual holidays (29% - on par with last holiday season). A family of four who plan to travel will spend an average of about $2,600 between now and the end of the year (or $659 per person). Holiday travel spending has increased 4 from 2010. Travel Plans Average Travel Spending Total 1 29% 5 Total $659 $715 % Increase from 2010 +4 +72% Affluents 21% 39% 40% Affluents $927 $1,099 +6 +92% 5 Young Professionals 1 29% Holiday Travel Off Peak Travel* No travel between November and December % of total Young Professionals Holiday Travel $624 $920 Average travelers expect to spend per person Off Peak Travel* +7 +4 * Travel between November and December, but not over a holiday Q.9 This year, will you be traveling over the following? Base: total respondents Q.11a-c. How much do you plan to spend per person on your upcoming trip(s) this year? Base: total traveling for any holiday 4

Spending More, Less, or Same Compared to Last Year on Holiday Travel In thinking about travel plans this holiday season, most expect to spend the same as last season Thanksgiving and Christmas/ Hanukah (5 and 51%, respectively). YOUNG PROFESSIONALS Thanksgiving 34% 5 41% 1 4 4 44% Christmas/Hanukah 34% 51% 39% 47% 3 1 47% New Year's 41% 14% 40% 0% ** 42% 20% 37% More Less Same ** Sample size too small to show New Year s results among Affluents 12. Thinking about your [INSERT HOLIDAY]? ] travel plans for this holiday season compared to last year, do you expect to spend more, less or the same? 5

Areas where Holiday Travelers are Spending More Compared to Last year Dining out is the leading area where travelers will be spending more versus last year. Three in ten holiday travelers will spend more on dining out (31%). In 2010 dining out was a priority by just one in five holiday travelers (20%). YOUNG PROFESSIONALS Dining out 31% 20% in 2010 Dining out 3 Dining out 44% Entertainment 24% Entertainment 24% Entertainment 42% Longer trip 21% Longer trip 2 Longer trip 3 Better accomodations Travel with more people More expensive destination 19% 17% Better accomodations Travel with more people More expensive destination 1 14% 22% Better accomodations Travel with more people More expensive destination 2 27% 2 Flying first class Flying first class Flying first class 1 Other Other Other Not shown: Not spending more (37% total/ 3 Affluents/ 21% YPs) 14 Thinking about your upcoming travel plans over [INSERT HOLIDAY] are you spending MORE in any of the following areas compared to last year? 6

Type of Holiday Trips Planned this Season A trip to visit family or friends is the leading type of holiday planned (64%). About one third (32%) of Young Professionals also have plans to visit a big city to see holiday décor for their holiday season travels. An average of two holiday trips are planned this year. A trip to visit family or friends 64% A trip to visit family or friends 5 A trip to visit family or friends YOUNG PROFESSIONALS 64% A big city vacation to shop and see holiday décor 17% A big city vacation to shop and see holiday décor 19% A big city vacation to shop and see holiday décor 32% A beach vacation 1 A beach vacation 17% A beach vacation 29% A theme park (e.g., Disneyworld) 10% A theme park (e.g., Disneyworld) A theme park (e.g., Disneyworld) 19% A ski trip 7% A ski trip A ski trip 1 A cruise A cruise A cruise Q.10 This year, how many trips do you have planned between Thanksgiving and New Year's Eve? Q.22 Are you planning on taking any of the following types of trips during your upcoming any holiday travel travels THIS YEAR? 7

Holiday Travel Duration More than one third of consumers will be away for more than one week for their holiday travels this year (3). Young Professionals will take more time off for holiday travels than their Afflluent counterparts - one half will be away more than one week (vs. 40% Affluents). Total 2 2 14% 3 Affluents 17% 24% 19% 40% Young Professionals 17% 21% 50% Up to 3 days 4 to 5 days 6 to 7 days More than 1 week Q.16 a-c How many days do you intend to travel over any holiday travel? 8

Holiday Travel Transportation While most holiday travelers will reach their destination via car transportation (70%), air transport is now significantly up from last year. More than one third of holiday season travelers will travel by airplane (3 - up from 2 last year).. YOUNG PROFESSIONALS By car 70% 7 in 2010 By car 6 72% in 2010 By car 6 7 in 2010 By air 3 2 in 2010 By air 4 34% in 2010 By air 57% 4 in 2010 By Rail/ train By Rail/ train By Rail/ train By Bus By Bus By Bus Not shown: Not spending more (2% total/ Affluents/ 1% YPs) 19.How will you be traveling to your upcoming holiday destinations this year? 9

Holiday Travel Destination Most holiday travel continues to be planned for within the United States (84% vs. 89% in 2010). Holiday travel outside of the United States is expected to increase from last year among Affluents ( vs. ) and Young Professionals (1 vs. 7%). Total 84% [89% 2010] 9% 2% Affluents 8 [87% 2010] [ 2010] Young Professionals 7 [84% 2010] 10% 1 [7% 2010] 2% U.S. Only Outside the U.S. Only Both Not sure Q.20 Which of the following describes where you plan to travel for your upcoming [insert] trips? Base: total traveling for [insert] 10

Region will Travel to over the Holiday s The leading regions where holiday travelers are planning to visit include the Midwest U.S. (2 vs. 22% last year), Northeast U.S. (2), and Southeast U.S. (2). Affluent travelers will visit the Southeast U.S. more than any other region (30%). YOUNG PROFESSIONALS Midwest U.S. Northeast U.S 2 2 22% In 2010 Southeast U.S. Northeast U.S 30% 24% Northeast U.S Midwest U.S. 3 30% Southeast U.S. 2 Midwest U.S. 22% Southeast U.S. 20% South West U.S. 1 South West U.S. 1 South West U.S. 19% Northwest U.S. 1 Northwest U.S. 1 Northwest U.S. 17% Caribbean 4% Caribbean 7% Caribbean Hawaii/Pacific Islands Hawaii/Pacific Islands Europe 7% Mexico/Central America Europe Europe Mexico/Central America 4% 2% Hawaii/Pacific Islands Mexico/Central America Not shown: regions 4% or fewer - Australia, South America, Africa, Asia, Other and not sure 21. Which of the following regions are you planning to visit during your upcoming [INSERT HOLIDAY] travels? 11

Destination would Most Like to Ring in The New Year Regardless of travel plans this year, one in four consumers among the general population would most like to ring in the new year at relaxing beach resort (2). YOUNG PROFESSIONALS Relaxing at a beach resort 2 Relaxing at a beach resort 2 Relaxing at a beach resort 30% Watching fireworks from a rooftop party in a major city 1 Watching fireworks from a rooftop party in a major city 1 Watching fireworks from a rooftop party in a major city 2 Exploring a European city Exploring a European city 14% Exploring a European city 17% Enjoying a multi-course wine pairing at a top-rated restaurant Enjoying a multi-course wine pairing at a top-rated restaurant Enjoying a multi-course wine pairing at a top-rated restaurant 9% At a spa retreat At a spa retreat At a spa retreat Other 7% Other Other Not shown: Not sure (30% total/ 1 Affluents/ Y\Ps) Q.32a In what type of destination would you MOST like to ring in the New Year? BASE: Total respondents 12

Travel Experience Most Interested in Trying When thinking about travel experiences, about one in five (19%) consumers would be most interested in trying an outdoor adventure. About one third (32%) of Young Professionals indicate interest in an outdoor adventure for a travel experience. YOUNG PROFESSIOANALS Outdoor adventure 19% Outdoor adventure 22% Outdoor adventure 32% A mystery vacation 1 A mystery vacation A mystery vacation 17% Culinary-focused experience 1 Culinary-focused experience 19% Culinary-focused experience 10% A holistic spa retreat A holistic spa retreat 14% A holistic spa retreat 1 Volunteerism trip Volunteerism trip 4% Volunteerism trip Ski holiday 4% Ski holiday Ski holiday Not shown: None (30% total/ 24% Affluents/ 4% YPs) Q.8 Which of the following travel experiences would you be most interested to try? BASE: Total respondents 13

TRAVEL BOOKING PREFERENCES 14

Primary Method of Booking Travel Online booking engines are the primary method used in booking travel (37%). More than two thirds (67%) of Young Professionals use an online engine to book their travel, in contrast to 4 of their Affluent counterparts. Many Affluents book their travel directly with the airline or hotel (21% vs. 1 overall). YOUNG PROFESSIONALS Online booking engine 37% Online booking engine 4 Online booking engine 67% Direct (hotel, airline, etc.) 1 Direct (hotel, airline, etc.) 21% Direct (hotel, airline, etc.) Walk-in travel agency Walk-in travel agency 2% Walk-in travel agency Travel agent via phone Travel agent via phone Travel agent via phone Tour operator 0% Tour operator 1% Tour operator 1% Different method of booking per type of travel 21% Different method of booking per type of travel 2 Different method of booking per type of travel 10% None of these 2 None of these None of these 4% Q.3 What is your primary method used to book travel? BASE: Total respondents 15

Primary Method of Paying for Travel While credit / charge cards are the primary method of paying for travel (2), many consumers will also use rewards points (2). Nearly four in ten Affluents and Young Professionals will use rewards points to pay for travel (3 each). YOUNG PROFESSIONALS *2 REWARDS POINTS *3 REWARDS POINTS *3 REWARDS POINTS Credit/charge 2 Credit/charge 3 Credit/charge 34% Debit card 21% Debit card 1 Debit card 21% Credit/charge card rewards points* 1 Credit/charge card rewards points* 2 Credit/charge card rewards points* 22% Cash Cash 4% Cash 4% A mix (debit/credit/charge and rewards points)* 10% A mix (debit/credit/charge and rewards points)* A mix (debit/credit/charge and rewards points)* 1 Airline mileage points* 0% Airline mileage points* 1% Airline mileage points* 1% I use different methods of paying for travel 1 I use different methods of paying for travel 7% I use different methods of paying for travel Q.4 What is your primary method used to pay for travel? BASE: Total respondents 16

Source of Vacation Choices Family is the primary source for making vacation choices (59%), followed by friends (49%). YOUNG PROFESSIONALS Family/relatives Friends Online content sites/portals TV Guidebooks Company websites Social networks Newspapers Trade/industry magazines Lifestyle/consumer magazines News/business magazines Radio Blogs Celebrity influencers Other 59% 49% 2 20% 1 14% 9% 4% 2% Family/relatives Friends Online content sites/portals TV Guidebooks Company websites Social networks Newspapers Trade/industry magazines Lifestyle/consumer magazines News/business magazines Radio Blogs Celebrity influencers Other 62% 5 3 20% 2 21% 17% 1 9% 7% 7% 1% Family/relatives Friends Online content sites/portals TV Guidebooks Company websites Social networks Newspapers Trade/industry magazines Lifestyle/consumer magazines News/business magazines Radio Blogs Celebrity influencers Other 6 72% 39% 40% 2 24% 32% 1 1 20% 17% 21% Not shown: None (1 total/ Affluents/ YPs) Q.5 What sources contribute to your vacation choices? BASE: Total respondents 17

Primary Motivation to Book Travel for the Holidays Friends and family are the primary motivation to book travel for the holidays (50%), and relaxation ranks second (44%) among the general population. Young Professionals are slightly more motivated to book travel for the holidays to relax (57%) than visit friends / family (54%). YOUNG PROFESSIONALS Visiting friends/family 50% Visiting friends/family 51% Visiting friends/family 54% Relaxation 44% Relaxation 49% Relaxation 57% Adventure 17% Adventure 20% Adventure 3 Romance Romance 14% Romance 29% Solo getaway 7% Solo getaway 4% Solo getaway Culinary Escapes Culinary Escapes Culinary Escapes Not shown: Not sure (1 total/ 10% Affluents/ YPs) Q.27 What is your main motivation when booking travel for the holidays? BASE: Total respondents 18

First Consideration in Booking Travel Many consider budget first when booking travel (40%), while destination ranks second (2). More than four in ten Affluents first consider the destination (42%) and significantly fewer consider the budget first (24%). YOUNG PROFESSIONALS Budget 40% Budget 24% Budget 3 Destination 2 Destination 42% Destination 29% Overall experience Overall experience 1 Overall experience 19% Length of stay Length of stay Length of stay Weather Weather 7% Weather 4% Ease of accessibility 4% Ease of accessibility Ease of accessibility Not shown: None(9% total/ Affluents/ 1% YPs) Q.7 What do you consider first, when booking your travel? BASE: Total respondents 19

Most Important Amenities in Booking Travels Complimentary spa treatments and dining credits are the most important amenities in booking travels (34%). YOUNG PROFESSIONALS Complimentary amenities (spa treatments, dining credits) 34% Complimentary amenities (spa treatments, dining credits) 37% Complimentary amenities (spa treatments, dining credits) 39% Ability to use accrued points for travel 14% Ability to use accrued points for travel 21% Ability to use accrued points for travel 1 Personalized service Personalized service 10% Personalized service 1 Exclusive access to special events 9% Exclusive access to special events 7% Exclusive access to special events 14% Not shown: Not sure (31% total/ 2 Affluents/ YPs) Q.31 Which of the following is most important when booking for upcoming holiday vacations? BASE: Total respondents 20

Most Appealing Hotel Benefit Food and beverage credits at their hotel is most appealing to consumers (31%), while an room upgrade ranks second (20%). YOUNG PROFESSIONALS Food and/or beverage credits to use at the hotel 31% Food and/or beverage credits to use at the hotel 32% Food and/or beverage credits to use at the hotel 34% Upgraded room category 20% Upgraded room category 2 Upgraded room category 24% Complimentary spa treatments at hotels 1 Complimentary spa treatments at hotels 1 Complimentary spa treatments at hotels 2 Late check-out at hotels 10% Late check-out at hotels Late check-out at hotels 7% Not shown: None (2 total/ 14% Affluents/ 7% YPs) Q.30 Which of the following potential hotel benefits would be most appealing for upcoming holiday travel? BASE: Total respondents 21

What Would You Do With An Extra $500 To Spend On Travel This Holiday Season? About one in four consumers among the general population would spend their extra $500 on a special trip experience (24% - up from 1 last year). More Affluents would spend their extra $500 on a special trip experience than indicated last year (32% vs. 2). Significantly fewer Young Professionals would spend their found $500 on an extended trip (1 vs. 24% last year). YOUNG PROFESSIONALS Special trip experience Extend travel an extra day(s) Nice meal out 1 24% In 2010 Special trip experience 32% 2 In 2010 Extend travel an extra 1 1 day(s) Nice meal out 1 Special trip experience Extend travel an extra day(s) Nice meal out 1 1 34% 24% In 2010 Flying instead of driving Upgrade accommodations Extra person to join trip 4% Flying instead of driving Upgrade accommodations Extra person to join trip 10% Flying instead of driving Upgrade accommodations Extra person to join trip Upgrade mode of travel Upgrade mode of travel Upgrade mode of travel 4% Not shown: Not sure (2 total/ 1 Affluents/ YPs) 23. If you had an extra $500 to spend on travel this holiday season, what would you most likely spend it on? BASE: Total respondents 22

The Gift of Travel More than one in four consumers among the general population have given and received a vacation to a friend or family member (27% and 2, respectively); nearly as many (2) are likely to give a vacation to someone in 2012. Most Young Professionals expect to give a vacation to someone in 2012 (52%), in contrast to fewer Young Professionals (30%). YOUNG PROFESSIONALS Have given a a vacation to a friend or family member 27% Have given a a vacation to a friend or family member 41% Have given a a vacation to a friend or family member 3 Have received a vacation from a friend or family member 2 Have received a vacation from a friend or family member 30% Have received a vacation from a friend or family member 52% Likely to give a vacation to a friend or family member in 2012 2 Likely to give a vacation to a friend or family member in 2012 32% Likely to give a vacation to a friend or family member in 2012 4 Q.25 Have you ever received a vacation as a gift from a family member, significant other/spouse or friend? Q.26 Have you ever given a vacation as a gift to a family member, significant other/spouse or friend? Q.26a How likely are you to give a vacation as a gift to a family member, significant other/spouse or friend in 2012? 23

WINTER TRAVEL 24

Winter Travel Plans December 21 through March 20, 2012 About one third (32%) of consumers among the general population have plans to travel this winter season between December 21 and March 20 and spend an average of $825. One half (50%) of Young Professionals have winter travel plans and plan to spend over $800, on average, and Affluents intend to spend more ($1,398 on average) Any Winter Travel Plans Between December 21 and March 20 2012 Average Winter Travel Spending Between December 21 and March 20, 2012 Total 32% Total $825 Affluents 4 Affluents $1,398 Young Professionals 50% Young Professionals $843 % of total Average winter travelers expect to spend per person 33. Thinking about the winter season December 21 through March 20 do you have any plans to travel during that time? Base: total respondents 33a.Thinking about the winter season December 21 through March 20 do you have any plans to travel during that time? BASE: Respondents with winter travel plans 25

Type of Winter Experience One in four (2) consumers among the general population are looking for a familyfriendly experience this winter. Young Professionals are favoring a romantic getaway over the family-friendly experience (34% vs. 31%). 2 14% Total 10% Family-friendly experience Affluents 31% 2 Romantic getaway with partner/spouse Getaway with friends (e.g., Girlfriend getaway/"mancation") 31% Multi-generational vacation 34% Young Professionals 2 Independent travel (will travel alone) Not shown: Not decided yet (5 total / 37% Affluents/ 22% YPs) Q.39 What type of trip do you intend on booking this winter? BASE: Total respondents 26

Idea of the Perfect Winter Vacation Reading a book on the beach best illustrates the perfect winter vacation, according to 2 of consumers. Total Affluents Young Professionals 2 1 4% 2 1 9% 7% 2 1 1 1 1 Reading a book on a beach Couples massage, followed by a candle lit dinner for two Tasting your way through a city's best food carts Hitting the slopes and enjoying hot chocolate at a ski lodge Zip lining through a rain forest Other Not shown: None (31% total/ 19% Affluents/ 9% YPs) Q.34 What experience best illustrates your idea of the perfect vacation this winter? BASE: Total respondents 27

Likely Warm Destinations this Winter More than four in ten (4) consumers among the general population are likely (very or somewhat) to travel to a warm weather destination this winter, and Florida is the top warm destination considered (2). Six in ten (60%) Young Professionals are likely (very or somewhat) to travel to a warm weather destination this winter, and Florida (2) and the Caribbean (24%) are the top warm weather destinations. Likely to take a Warm Weather vacation this winter 4 Total Warm Weather Destinations 2 1 1 9% Florida 59% Affluents 7% 3 22% Caribbean California 60% Young Professionals 2 24% 1 7% 9% Hawaii Mexico Top 5 destinations shown. Q.37 For travel this winter, how likely are you to travel to a warm weather destination? Q.38 For upcoming warm weather vacations, what destination are you most likely to travel to this winter? Base: total very/ somewhat likely to travel to warm destination this winter 28

Likely Ski/ Snowboard Destinations this Winter Most Young Professionals are likely (very/somewhat) to plan a ski or snowboard vacation this winter (54%). Colorado, New York, and California are the top destinations for Young Professionals who are likely (very or somewhat) to plan a ski or snowboard vacation this winter (30%, 2, and 24%, respectively). Likely to take a Ski/ Snowboard vacation this winter 1 22% 54% Ski/ Snowboard Destinations 2 2 19% Total 1 1 37% 2 19% Affluents 1 14% 30% 24% 17% Young Professionals 2 10% 1 Colorado California Vermont New York Utah Europe Other Q.35 For travel this winter, how likely are you to plan a ski/snowboard vacation? Base: Total respondents Q.36 For upcoming ski/snowboard vacations, what destination are you most likely to travel to this winter? BASE: Respondents likely to travel to a ski/snowboard weather destination 29