OEF model starts
The Big Number: Where industry segments stand in the big picture
with census surveys
Continued from Page 25
operate today and plan for tomorrow.
As Peter Franz, global managing director
of Accenture’s Transportation and Travel
Services practice (Accenture sponsored the
OEF research), said, “Insight into how and
where the travel and tourism industry is
growing is critical for companies that want
to improve their performance and take advantage of that growth, either in their own
countries or around the world.
“As airlines, lodging companies and tour
operators work to improve their bottom
line, having usable data about both the in-
dustry and their own business is essential.”
HOW TO FIND THE BIG NUMBER
The process of arriving at the big number
of $6.5 trillion is an arduous one.
Sachs said the research starts with surveys
done by individual countries about spending patterns. He explained, “Many countries,
when they do their national census, survey
their citizens on how they spend money on
housing, education, food — and travel.”
That information, said Sachs, leads to
a more accurate approach than simply
Continued on Page 28
Continued from Page 25
Though final figures for 2005 are not yet available, the
chart on this page shows how that projected pie of $646
billion might be sliced up, based on the breakdowns of
prior years.
And here’s how that number compares with the revenue reports of various industry segments:
Airlines: According
to the Air Transport
Association (ATA), passenger revenues for
member (U.S.) airlines
amounted to $93.4
billion, domestic and
international travel.
Hotels: The American
Hotel & Lodging Association (AH&LA) uses
a figure of $113.7 billion
in sales for 2004 (2005
not yet available) for Recreation
U.S. hotels based on 11%
figures from the U.S. Retail
Chamber of Commerce. 7%
Cruise Lines: The
International Council of Cruise Lines estimates global
consumer spending on cruises at over $19 billion, but
no comparable figure is available for the U.S. Estimates
range from $15 billion to $17 billion.
Car Rentals: Most of the major car rental brands in
Auto
transportation
15%
the U.S. are closely held and do not file public financial
statements, and there is no industry association that
compiles comprehensive industry data.
The most commonly cited industry numbers are tabu-
lated by the magazine Auto Rental News, which comes
up with $18.9 billion in revenue for 2005. According to a
spokesman for that magazine, the number is based on
surveys of companies in
the industry.
Tour Operators: Long-
time U.S. Tour Operator
Association President
Robert Whitley uses the
number $27 billion a year
in sales. He said, “I get
that from a study made
long ago, add inflation and
take into consideration
research done by venture
capitalists when they were
buying up companies.”
Meetings and Conven-
tions: The Convention
Industry Council, a con-
glomerate of 30 member
organizations, provides a figure of $122 billion for the
industry, which it says in a study footnote “is the result
of collecting data from a number of reputable sources,
each specializing in a particular aspect of the industry,
Continued on Page 30
U.S. Travel & Tourism Expenditures by Segment (2005 Est.)
Lodging
16%
Public
transportation
17%
International
visitors
12%
Food service
22%
TO US, LOVE MEANS ALWAYS SAYING ‘ THANK YOU.’
So join the lovefest we call Perillo Perks
and get perks for both your agency and
your agents. Earn bonus commissions on
qualified passengers. Win hundreds of
great prizes, like trips, Apple iPods, digital
cameras and gift cards. And the grand
prize, $100,000.
Plus, to help share the love with your
clients, we’ve got terrific tours to the
hottest destinations in the world. Italy, of
course, and Deluxe Hawaii.
Join today! It’s free. It’s easy. And it’s a
great way to start feeling the love. To
learn more about Perillo Perks, visit
PerilloPerks.com.
It’s time to get your new
2007 brochures!
Italy
Choose among 8 First Class trips from the Alps to
Sicily. Tell your clients about our new ‘Romantic
Tuscany’ tour – and they’ll shout ‘Grazie!’
Hawaii
One price covers all to Oahu, Kauai, Maui and the
Big Island. Includes exquisite oceanview hotels,
delectable dining, luaus, parties and more. Aloha!
Reservations • Brochures • Italy DVD • Posters
1-800-431-1515 · www.PerilloAgents.com
