North American staycationers

Author: Countries and Consumers

Date published: 23 Oct 2009

The USA is the home of the “staycation,” a word that emerged mid-decade and exploded into popular use in 2007. Its appearance in the 2009 edition of the Merriam-Webster dictionary shows it's a trend with staying power and, according to the publisher, it's an example of a word meeting a need and establishing itself in the language very quickly. But its meaning has already started to morph to mean anything from holidaying at home, or nearby, to vacationing in-country rather than abroad.

Key trends

Savvy holidaymakers;

Trade-ins winning out over trade winds;

Spa-cationing;

Passport-free taste of the exotic;

Pet owners stay home with Fido.

Commercial opportunities

Repackage products/services for staycationers;

Pamper products/holidays.

Background

The popularity of the staycation is clear from the proliferation of websites, such as staycationlist.com, offering tips on how to enjoy your holiday at home. The range of ideas available ensures there's something for everyone, from 'spa-cations' to amusement parks; and from limo hire for a night out on the town to maid service, to allow some quality 'me' or family time. Experts agree that it's important to do different, fun, vacation-like things during a staycation to make it feel like it's a real break. The trick is not to fall into sloth mode. Life coaches suggest treating the staycation like a regular vacation, and that includes a holiday itinerary. Staycationers are advised to use the money saved by staying close to home to splurge on typical vacation activities, such as eating out, going to a show, or shopping.

All this means that marketing opportunities abound to repackage goods and services for a perfect staycation. And the main thrust of advertising targeted at locals is that a vacation doesn't have to be far from home to be a vacation. Regional tourist boards from San Diego to Nova Scotia have been running campaigns to entice locals to stay at resorts in the locale, highlighting attractions, accommodation and eateries, using radio commercials, search engine marketing and geographically targeted adverts on travel websites to attract staycationers. Travel guides such as Frommer's are also at hand to advise consumers on how to become a tourist at or near their own home, and a domestic version of DiscoverAmerica.com has recently been launched to help Americans explore their own country.

The strength of the staycationing phenomenon is clear from recent news in Variety, the entertainment-trade magazine, that Warner Brothers Pictures has hired writers for Staycation. The title gives a clue to the story, and while the studio has not divulged details it's believed it will be a male-driven comedy.

Savvy holidaymakers

A survey conducted by the travel search site Kayak earlier this year showed that despite the gloomy financial outlook, 95% of US respondents planned to travel this summer. However, top of the list of holiday destinations under consideration, at 65%, were major US cities, while 34% of prospective holidaymakers were contemplating heading for the beach, indicating that domestic vacations are proving an attractive option in the current economic climate.

Holidaymakers are certainly becoming savvier, according to a survey of more than 600 American Express Travel agents, the results of which were released in May. While 66% of agents say clients feel their summer vacation is too important to their mental health to give up all together, they're making smart tradeoffs to help offset costs. Topping the list of popular money-saving strategies is using credit card rewards points and/or frequent flyer miles toward the cost of summer vacations. According to agents, other popular money-saving strategies include taking closer-to-home trips. In some cases, however, travellers are trading up. Almost half of the American Express travel agents surveyed reported that some travellers are taking advantage of the abundance of travel deals to “trade up” or enhance their vacation plans to include room upgrades, and a longer length of stay.

Canadians also seem to have caught the staycationing bug. Travelzoo Canada recently launched its weekly summer staycation guide featuring online listings of travel deals within Canada. A spokesman told the Canadian Broadcasting Centre that in some cities and regions, hoteliers are creating specials or offering discounts to entice local residents to stay over. “I think this summer, maybe people are being a little bit tighter with their budget, but you put the right deal in front of them and they're going to jump to take advantage of that,” she said

According to a recent Canadian Press Harrris-Decima survey from June 2009, 59% of respondents said they were intending to take a summer break but of these most, 61%, will be vacationing close to home. 26% of holidaymakers plan to get away from it all near their home town, 35% intend to stay within their home province, and only 18% are packing their bags for a trip outside Canada. Of those travelling, 54% said their holiday spend would remain around the same as last year; while 29% said they would be cutting back. The managing editor of SavvyMom Media, which operates online resource savvymom.ca, said they found comparable results in a similar poll they conducted this year.

Canadian consumer holiday plans: Summer 2009

%

Source: Harris/Decima

Note: Each week Harris/Decima carry out a national telephone survey of over 1000 Canadians. These data were gathered between June 4th-June 8th 2009. A sample of the size has a margin of error of 3.1%, 19 times out of 20

Canadians appear to be spending any savings made by holidaying at home by splashing out on everything from food to sporting goods. Figures from Statistics Canada, the nation's central statistical agency, indicate sales rose in six of eight retail trade sectors in June, including in big ticket areas such as cars, furniture, home furnishings and electronics.

Trade-ins win out over trade winds

Americans may hanker after tropical beaches and cooling trade winds but they're opting instead to take advantage of the government's “cash for clunkers” deal and spending their money on cars. Figures for July, detailed in the Guardian newspaper, show that Ford carmakers saw a 2% increase in sales on the same month last year. While corporate purchases of vehicle fleets continued to slip, the number of retail sales of cars and pick-up trucks to the public jumped by 9%. An important factor behind the upturn has been a government programme offering payments of up to $4,500 to motorists willing to ditch gas-guzzling “clunkers”. Ford's chief sales analyst reported, “Lots of traffic, lots of sales.” The US transport secretary is pressing the Senate to vote for a further US$2billion of financing to replenish the scheme, which has been already approved by the House of Representatives.

Spa-cationing

The recession and environmental concerns might have forced holidaymakers to forsake tropical climes but that doesn't mean they can't still experience the rejuvenating powers of a tropical spa close to home. Holidaymakers can luxuriate in hot fragrant tubs, revitalise body and mind with invigorating massages, and pamper themselves with exotic, aromatic body wraps, returning home with an all over holiday glow, minus the jetlag. Spa-Finder, a website devoted to spa travel, has just launched a new advertising campaign aimed at the staycationer.

Passport-free taste of the exotic

Holidaymakers with a taste for foreign cuisine and culture, but not for the hassles of lost luggage and passport control, can often sate their appetite for the exotic by venturing no further than their home state. Staycationers can embark on a European grand tour without leaving home: enjoying escargot at a French restaurant, taking in a play at a Shakespeare festival, and dancing up a storm at flamenco classes. Lynn Marshall, in blog Vacation or stay-cation, that's the question, plans to host a young Milanese woman on a cultural exchange as part of her staycation and writes: “If I can't go to Europe, I'll bring Europe to me!” Another recent convert to staycationing, an oil businessman, told CNN.com/living that one of the attractions is “no [airport] security checkpoints in my yard.”

Pet owners stay home with Fido

In these cash-strapped times staycationing has a particular attraction for pet owners. Holidaying at home or on road trips within the USA means they don't have to shell out for expensive kennelling. And while they may be keeping some areas of family spending on a short leash, they seem to be allowing free rein when it comes to man's best friend. The American Pet Products Association estimates pet owners will spend $45.5 billion on their animal companions this year, a 5% increase since 2008 and a near 60% hike from 2001, according to CNN Money. This comes at a time when June retail sales were about 10% lower than last year, and a Gallup survey of weekly consumer expenditure in mid-August was nearly 30% lower than a year ago. The APPA reports that 19% of pet owners admit to buying a “designer” item but it's basic food and care that accounts for the increased spend. Nestle recently reported a 9% year-on-year upturn in its pet care division; and animal health-care manufacturer Merial has seen sales rise 50% over the past five years. And if pet owners are looking like the cat that got the cream, it could be because of a House resolution introduced last month that would allow an annual tax deduction of up to $3,500 a year for “qualified pet expenses.”

Outlook

In the short to medium term, or at least until the economic climate brightens, staycationing is likely to remain a popular choice. Fears over health scares such as the H1N1 virus are also likely to keep holidaymakers close to home: a spring survey by Ipsos suggests the impact of the pandemic has been minimal among domestic travellers. Over the longer term, climate change concerns and rising fuel prices mean the staycationing trend is probably here to stay.

Countries and Consumers