Mr. Williams

Hotel Market Reports

Trends in International Travelers Vacationing in U.S.

By Kevin Williams, Vice President of Distribution, TravelWorm

The U.S. has grown accustomed to being a top destination in international travel, but recent data shows that the number of foreign travelers visiting the country is declining. Although this year showed a slight increase in foreign travel to US markets, it is not enough to offset the sharp losses we experienced after September 11th. While the travel industry is making small progress, greater initiative is needed to revive our status in the international community. With the domestic economy faltering, the travel industry should be more aggressive in exploiting the dollar weakness to its advantage and bringing more foreign money to American shores.

The advantages to having foreign tourists are manifold. Foreign tourists make up a significant percentage of tourism revenue and can buoy struggling markets, especially in times of decreased domestic consumer spending. Foreign visitors tend to stay longer and spend more - two factors that greatly influence the bottom line.

Unfortunately, the dismal state of U.S. air travel, as well as heightened security measures at airports and other entry points, only adds to the problem. Travelers to the U.S. face a level of scrutiny that can understandably turn off visitors. Intense safety procedures, perceived intimidation, and a lengthy and bureaucratic visa application process all contribute to a feeling of being unwelcome and unwanted. Many overseas travelers, unaccustomed to these new safety measures, fear that a simple mistake in their documentation may lead to detention or deportation. Of course, people who live in the U.S. now realize that this is just par for the course in a post-9/11 world.

Changing tides in global image have also affected global travel trends. It should be no surprise that worldwide perception of the U.S. is not as favorable as it once was. Younger foreign travelers have started to see America as "less cool", and are now opting to visit European or Asian countries instead. Concurrently, these European and Asian travel destinations are also spending a significant amount of money to lure these travelers.

Heightened security and global perception add up to a regrettable mix. In order to counteract these damaging forces, various organizations have committed themselves to reforming America's image. The Discover America Partnership, for instance, has backed a bill detailing a nationally coordinated tourism effort, which was introduced to Congress in September.

In the meantime, while there is little we can do about government policy, we can try to make the U.S. travel experience seem like a better buy. External factors like the depreciated dollar can be emphasized to make U.S. travel more attractive financially. The second step is to highlight the intrinsic value of visiting the U.S. We have to show visitors from overseas that the beauty in this country is absolutely worth whatever hassle they may face, and key to that is successful marketing.

The cities in the U.S. that have a proven track record of attracting non-American visitors are New York and Las Vegas. One probable reason is that both cities actively advertise in other countries and vigorously compete for market share in the tourism industry. Many American cities aren't doing that. Just take a look at the numbers: the U.S. Department of Commerce has budgeted about $6 million this year for marketing the country to international tourists. In contrast, Malaysia - a country smaller than California - will spend $117.9 million. Tunisia has allotted $43 million; Turkey, $80 million. This is truly unfortunate. Although most states and cities have a visitors' authority, those institutions are primarily geared towards the domestic consumer.

Tourism is the third largest retail industry in the U.S. and one of America's largest employers. Yet, America is one of the only industrialized nations with no current coordinated travel promotion effort. This is an embarrassing fact, as the global tourism industry is actually growing at an astounding rate. With growing middle class segments in countries like China and India, there are more overseas travelers than ever before. At TravelWorm, we are addressing the issue by creating a travel website that will focus solely on foreign visitors. By having this kind of specialized venue, we hope to show them they are indeed important to us, and we want them here.

To regain our share of the market, the U.S. must be able to show the international community that although they will have to undergo some bureaucratic hassle at the airport, in the long run they are welcome, they are wanted, and we as a country are delighted that they are here. We have to show them that America is very much worth that hassle. After all, isn't a peek at the Grand Canyon worth a few minutes of your time at customs? Isn't the thrill of being in New York City worth a little chat with an immigrations officer? Yes, they might have to go through a little inconvenience, but there's a huge payoff for their trouble. However, merely wanting foreign tourists to come to our country is not enough. We are competing in an increasingly aggressive global marketplace, and we simply have to be more competitive.

One way to do that is to cater a travel experience to niche markets and to add a unique experience into the mix. Beaches, for example, look like they'll be a trend for overseas travel in 2008. There are a lot of beautiful beaches worldwide, but there is only one Miami - a place where the cosmopolitan lifestyle is inextricably intertwined with natural beauty; a place where real celebrities line the streets and there are parties galore. And there is only one Hawaii - a surfing haven like no other, which also happens to have world-class amenities. There may be many beautiful beaches all over the world, but will their experiences at these beaches match up to either Miami or Hawaii?

Let's face it. The times when travelers merely sat in a bus and pointed and took pictures are over. They are no longer content to have passive vacations. They want to go surfing, or rock climbing, or party with the stars, or immerse themselves in a spa retreat. This is why at TravelWorm, we have incorporated an "experience" page in our soon-to-be launched site redesign, to allow our customers to really get what they want out of their trips. Whether it's an adventure, sand and sun, family, golf, or wellness package, we have tried to address the consumers' desire for that added value to their vacation.

It's time we accept that the landscape is changing. We're not just competing with destinations that are obvious to us; we're competing with whole countries and cities which are heavily backed by their own governments. Vegas, for example, is in competition with places like Reno and Atlantic City, but in the international market, Vegas is also in competition with small nations like Dubai, Singapore, and the state of Macau.

I believe we will soon see a turnaround, if that hasn't started to happen already. The decreasing value of the dollar is something foreigners appreciate, but also I think the travel industry as a whole is beginning to see the importance of aggressively trying to recapture our market share.

Foreign visitors are integral to the tourism industry, and by extrapolation, they are integral to the economy. There is an urgent need to combat this trend of declining overseas visitors if we want the tourism industry to grow as healthily as our foreign peers'. When we get the message across that we want the foreign visitors to come and see America, and that they are welcome, they will come and see for themselves that America is very much worth the trip.

Kevin Williams is Vice President of Distribution for TravelWorm, the leading online provider of a consumer hotel, flight, car rental, tour reservations and show tickets at premiere casino resort and leisure destinations nationwide. In this position, he is responsible for continuing TravelWorm's reputation as one of the premier travel sites nationwide and beyond. Before joining TravelWorm, Mr. Williams, served as Vice President of Hotel Operations at One Travel and was responsible for expanding its hotel program globally. Mr. Williams brings more than 20 years of combined experience in hotel and resort operations and marketing. Mr. Williams spent 12 years with Hilton Hotels Corporation in the Nevada Gaming markets, where he oversaw hotel operations in casino resorts throughout the Nevada. Previously he served as Hotel Director for three years at Station Casinos' flagship property, Palace Station. Most recently, Mr. Williams directed the Nevada resort clients for Hotels.com during its transition from Hotel Reservations Network.

Kevin Williams is VP of Distribution for TravelWorm. He maintains TravelWorm’s reputation as one of the premier travel sites nationwided. Mr. Williams has served as Vice President of Hotel Operations at One Travel and was responsible for its global expansion. Mr. Williams brings 20 plus years of experience in hotel and resort operations and marketing. Mr. Williams spent 12 years with Hilton Hotels in the Nevada Gaming markets, where he oversaw operations in casino resorts throughout the Nevada. Mr. Williams can be contacted at 702-407-8000 or kwilliams@travelworm.com Extended Bio...

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