Economic Downturn Makes Travelers Savvier Than Ever

A new survey of more than 900 American Express travel agents suggests that travelers this holiday season are savvier than ever before, fulfilling their vacation plans in the midst of the current economic downturn by finding smart ways to save.

Consumers are stretching their vacation budgets, seeking value in every aspect of their travel plans and cutting costs wherever they can through measures such as redeeming reward points to offset costs, taking shorter trips, visiting alternative destinations, staying closer to home and choosing less expensive hotels.

Seventy-seven percent of agents said vacationers are looking for more value or bargains than in the past, while 86 percent of agents reported that their customers are looking for “smart luxury” options, defined as unique travel experiences and special treatment for less. For example, 86.5 percent of travel agents polled (up from 70 percent in 2007) said that customers are using rewards points to offset travel costs this holiday season.

More specifically, 83 percent of travel agents responded that eligible, enrolled American Express card members are taking advantage of the Membership Rewards program, including the Pay with Points feature that allows card members to use points to pay for part or all of their trip and avoid holiday blackout dates or seat restrictions.

Similarly, 61 percent of agents responded that American Express card members who are eligible for the Fine Hotels & Resorts program are taking advantage of complimentary amenities and special treatment and access at hotels in the program. Fifty-eight percent of agents said customers are also purchasing travel delay protection/travel assurance for delayed and cancelled reservations.

Almost half (47 percent) of travel agents said their customers are booking more value-priced hotels this holiday season compared to last year, and 40 percent are booking more domestic and/or closer-to-home flights this year.

More than half (53 percent) of the American Express travel agents polled said that cruising offered the best deals, followed by 38 percent who said that tour packages provide value by combining airfare and hotel accommodations.