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”Getting Around” the Economy: Consumers Find Smart Ways to Travel This Holiday Season, According to Recent Survey of American Express Travel Agents

Posted by J.S.

November 13, 2008

Increased Number of Agents Say Holiday Travelers Are Seeking Greater Value and Redeeming Rewards Points to Offset Costs

NEW YORK, November 13, 2008 — 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% of agents reported that their customers are looking for “smart luxury” options, defined as unique travel experiences and special treatment for less.

“With travel budgets tighter, we’re seeing our Cardmembers and travel customers work with our knowledgeable travel agents to find savvy ways to keep holiday travel plans while saving costs,” said Audrey Hendley, vice president of marketing, American Express Travel. “Many look forward to their end-of-year vacations and feel it’s too important to give up completely. Instead they’re working with our agents to find ways to get the best deals and tapping the travel benefits on their cards like never before.”

For example, 86.5% of travel agents polled (up from 70% in 2007) said that customers are using rewards points to offset travel costs this holiday season. More specifically, 83% of travel agents responded that eligible, enrolled American Express ® Cardmembers are taking advantage of the Membership Rewards® program , including the Pay with Points feature that allows Cardmembers to use points to pay for part or all of their trip and avoid holiday blackout dates or seat restrictions.

Similarly, 61% of agents responded that American Express Cardmembers 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%) of travel agents said their customers are booking more value-priced hotels this holiday season compared to last year, and 40% are booking more domestic and/or closer-to-home flights this year. More than half (53%) of the American Express Travel agents polled said that cruising offered the best deals, followed by 38% who said that tour packages provide value by combining airfare and hotel accommodations.

Top Holiday Travel Destinations
Travel agents named New York City the most popular domestic destination this year. “New York City offers an array of inexpensive or complimentary attractions and activities during the holidays, making it a good value for travelers,” said Hendley. “Holiday window-shopping and visiting the famous Christmas tree are a couple of the many cost-free options New York City has to offer, while inexpensive activities include ice skating in Rockefeller Center.”

In terms of warm-weather “sun and fun” destinations, travelers are looking at alternative destinations that are closer to home, such as Miami/Fort Lauderdale, which agents placed at the top of the list this year. Hawaii, which was the number one last year, remains quite popular as the third most popular warm-weather destination.

In the survey, agents ranked the top five domestic, international, warm-weather and cold-weather destinations:

Rank	Domestic Destinations	International Destinations	Warm-Weather Destinations	Cold-Weather Destinations
1	New York	Los Cabos, MX	Miami/Ft. Lauderdale	Vail, CO
2	Miami/Ft. Lauderdale	Rome*	Orlando, FL	Aspen, CO
3	Honolulu, HI	Paris*	Honolulu, HI	Park City, UT
4	Las Vegas, NV	Nassau, Bahamas	Scottsdale, AZ	Jackson Hole, WY
5	Aspen, CO	San Juan, PR	Naples, FL	Telluride, CO
*Tied for second place.

About the American Express Travel Survey
Data for this travel survey was collected via an online poll conducted by American Express Travel among 1,109 of American Express Travel agents across the U.S. The poll was fielded in late October 2008. All statistics reflect the percentages of agents polled. This is American Express’ third annual holiday travel survey conducted among agents.

About American Express Travel
American Express entered the travel agency business in 1915 and today is one of the largest travel agency networks. The company has Travel and Foreign Exchange Services locations worldwide.

American Express Company (www.americanexpress.com) is a leading global payments, network and travel company founded in 1850.

*Terms, conditions and restrictions apply to certain American Express Cards, programs, benefits and services.