It's no surprise that higher prices paid for gas, oil and other petroleum-based products is having a direct impact on the discretionary spending habits by consumers, but how deep will that impact be on travel? That was the basis of an online survey recently conducted by the Carlsbad Convention and Visitors Bureau, "How Have Higher Gas Prices Affected Your Travel Plans?"
In late August, as gas continued its relentless climb to the $2.70 range, Katrina was gathering strength after having crossing the Florida peninsula. All eyes were focused on the unthinkable, a direct hit on New Orleans, and speculation was plenty on the impact that a possible category five hurricane would have on our national economy. One thing was certain; any disruption in the oil services industry would cause hardship to many, and not to just those living on the Gulf Shore.
What we learned from our survey was worth sitting up and taking notice, for it mirrors a recent CNN.com poll in which 61% said they have, "cut back on spending for other necessities because of high gas prices." One would have to assume that these cuts would include the one industry that Carlsbad has come to depend on – travel.
The findings from our survey show that, even as prices shot through and continue to hold close to the $3.00-plus range, the public is evenly divided on whether the increase in oil has adversely impacted their decision to travel this year. With that said, more than one-third told us they plan to visit Carlsbad less frequently, and slightly more than 50% say they have visited Carlsbad only once or twice this year. We need to always remember that travel, unlike the mortgage, rent and food, is a purely discretionary expense item in most household budgets.
Retailers are expected to take a huge hit with nearly 60% of survey respondents saying they will spend less on retail items while in Carlsbad. Higher gas prices will also take a bite out what's spent at restaurants and eateries with 54% saying that they'll look for value priced options to satisfy their hunger. (Mickey D's Supper Club could be the big winner when it comes to a family of four staying the week.) Price conscious consumers will also look closely at rates charged at local hotels, with nearly 42% saying they'd look for less expensive, more value-priced accommodations.
So, let's take a look at how respondents answered the eight question survey that was administered between August 24 and September 19:
Has the increase in the price of gas adversely impacted your decision to travel this year?
Yes, 49.86% No, 50.14%
Have you curtailed your travel plans this year to travel less frequently to Carlsbad?
Yes, 37.97% No, 62.03%
If yes, did you extend your travel to Carlsbad by adding more days to your visit?
Yes, 10.87% No, 88.84%
How many times in 2005 have you visited Carlsbad for leisure purposes?
34.78% – Once
15.94% – Twice
7.83% – Three times or more
41.45% – I have not yet visited Carlsbad this year
Has the increase in the price of gas had an adverse impact on your discretionary spending while visiting?
Yes, 48.26% No, 51.74%
The Travel Industry Association says that the number one activity for vacationers is shopping. Are you likely to spend less for retail shopping while in Carlsbad if gasoline prices continue to climb?
Yes, 57.68% No, 42.32%
Has your decision on the type of lodging establishment that you would choose been impacted because of the price of gas? (i.e., would you stay at a less expensive, value-priced hotel over one that is perhaps more expensive with added amenities?)
Yes, 41.88% No, 58.12%
In planning my trip to Carlsbad, the following areas will be impacted due to the increasing price at the pump.
40.14% – The price I pay for overnight accommodations
50.58% – Less shopping for clothes and other retail purchases
30.72% – Reduced extras purchased while visiting LEGOLAND
54.20% – Find dining options that provide for greater value
30.72% – Extras I normally enjoy such as golf, spa treatments, charter fishing
28.26% – None of the above, because whatever the price for gas, I will continue to do everything that I have always enjoyed doing while visiting Carlsbad!
As consumer spending is likely to throttle back, that's got to be of concern for businesses that had hoped to expand both with inventory and new employees. However, there is a silver lining in all of this, namely, the 40% who said they had yet to visit Carlsbad in 2005. This provides a magnificent opportunity for some incredibly exciting packaging that could include deals on lodging, retail, golf, spa and relaxation amenities, restaurants and area attractions. In short, it's a selling opportunity for Carlsbad!
In late August, as gas continued its relentless climb to the $2.70 range, Katrina was gathering strength after having crossing the Florida peninsula. All eyes were focused on the unthinkable, a direct hit on New Orleans, and speculation was plenty on the impact that a possible category five hurricane would have on our national economy. One thing was certain; any disruption in the oil services industry would cause hardship to many, and not to just those living on the Gulf Shore.
What we learned from our survey was worth sitting up and taking notice, for it mirrors a recent CNN.com poll in which 61% said they have, "cut back on spending for other necessities because of high gas prices." One would have to assume that these cuts would include the one industry that Carlsbad has come to depend on – travel.
The findings from our survey show that, even as prices shot through and continue to hold close to the $3.00-plus range, the public is evenly divided on whether the increase in oil has adversely impacted their decision to travel this year. With that said, more than one-third told us they plan to visit Carlsbad less frequently, and slightly more than 50% say they have visited Carlsbad only once or twice this year. We need to always remember that travel, unlike the mortgage, rent and food, is a purely discretionary expense item in most household budgets.
Retailers are expected to take a huge hit with nearly 60% of survey respondents saying they will spend less on retail items while in Carlsbad. Higher gas prices will also take a bite out what's spent at restaurants and eateries with 54% saying that they'll look for value priced options to satisfy their hunger. (Mickey D's Supper Club could be the big winner when it comes to a family of four staying the week.) Price conscious consumers will also look closely at rates charged at local hotels, with nearly 42% saying they'd look for less expensive, more value-priced accommodations.
So, let's take a look at how respondents answered the eight question survey that was administered between August 24 and September 19:
Has the increase in the price of gas adversely impacted your decision to travel this year?
Yes, 49.86% No, 50.14%
Have you curtailed your travel plans this year to travel less frequently to Carlsbad?
Yes, 37.97% No, 62.03%
If yes, did you extend your travel to Carlsbad by adding more days to your visit?
Yes, 10.87% No, 88.84%
How many times in 2005 have you visited Carlsbad for leisure purposes?
34.78% – Once
15.94% – Twice
7.83% – Three times or more
41.45% – I have not yet visited Carlsbad this year
Has the increase in the price of gas had an adverse impact on your discretionary spending while visiting?
Yes, 48.26% No, 51.74%
The Travel Industry Association says that the number one activity for vacationers is shopping. Are you likely to spend less for retail shopping while in Carlsbad if gasoline prices continue to climb?
Yes, 57.68% No, 42.32%
Has your decision on the type of lodging establishment that you would choose been impacted because of the price of gas? (i.e., would you stay at a less expensive, value-priced hotel over one that is perhaps more expensive with added amenities?)
Yes, 41.88% No, 58.12%
In planning my trip to Carlsbad, the following areas will be impacted due to the increasing price at the pump.
40.14% – The price I pay for overnight accommodations
50.58% – Less shopping for clothes and other retail purchases
30.72% – Reduced extras purchased while visiting LEGOLAND
54.20% – Find dining options that provide for greater value
30.72% – Extras I normally enjoy such as golf, spa treatments, charter fishing
28.26% – None of the above, because whatever the price for gas, I will continue to do everything that I have always enjoyed doing while visiting Carlsbad!
As consumer spending is likely to throttle back, that's got to be of concern for businesses that had hoped to expand both with inventory and new employees. However, there is a silver lining in all of this, namely, the 40% who said they had yet to visit Carlsbad in 2005. This provides a magnificent opportunity for some incredibly exciting packaging that could include deals on lodging, retail, golf, spa and relaxation amenities, restaurants and area attractions. In short, it's a selling opportunity for Carlsbad!