Many companies operating in the leisure travel industry, including cruise lines, struggled during the recession as Americans cut back on leisure spending due to high unemployment, declining median household incomes, and a lack of confidence in their future economic prospects. During this time, cruise lines deeply discounted their base fares and offered a variety of enticing promotions which kept the average capacity utilization above 100%. In 2011, improved macroeconomic conditions—as well as the arrival of new ships, which further increased capacity—served to drive sales. While increased revenues in 2010 and 2011 indicate that the industry is poised for future growth, it is also apparent that competition for cruise travelers will increase and cruise lines will need to focus their development and marketing efforts on consumer preferences to differentiate their brands.

The report addresses the following questions:

Sales at many state lotteries declined in 2008 and 2009, as consumers around the nation reduced discretionary spending in order to mitigate the impact of the recession. However, at a national level, sales increased significantly in 2010 and 2011 despite the fact the economy remained weak during this period. One key to this success has been that many lotteries have launched innovative marketing and product development. There is clearly potential for growth in most states, yet it is also evident that some will need to implement changes in order to maximize revenue. To provide information and insight that can be used to help drive growth, this report addresses the following questions:

While vacation destinations felt the impact of the recession sharply in 2009, the family vacation market on the whole has shown resilience in 2010 and 2011. For many families stressful economic times appear to have made the emotional benefits of getting away more compelling, making even brief family vacations more of a necessity. The long-term consumer impact of the downturn on family travel may be less about cutting back on expenditures than it is about spending smarter.

This report features Mintel’s exclusive consumer research exploring a range of consumer attitudes and behaviors concerning family vacations. Among the questions addressed in this report are:

The hotel industry, including hotels and motels, casino hotels and bed and breakfast inns, has had a tough go of it in the troubled economy, as both leisure and business travel waned. Sales were flat in 2008, followed by an 11.8% drop in 2009. Subsequent growth is evident, but meager when taking into account the necessary climb to get out of the hole created by the recession.

Leading operators have not gone down without a fight, and incentives such as rate discounts, ramped up loyalty programs and complementary amenities have been employed to attract guests. However, as the industry continues to improve and demand for rooms increases, new challenges emerge. This report details what can be learned from what the industry experienced at the height of the recession, as well as what needs to be done to ensure future growth, including:

Airlines have managed to rebound from 2009 lows, but another downswing looks to be just around the corner. The industry is under increasing pressure to generate new forms of value-add and revenue, but strong price sensitivity in both the personal and business travel sectors make revenue growth difficult. Careful management of supply-demand dynamics and ancillary fee policies will be critical in surviving continuing economic distress.

In this exclusive report, Mintel takes a look at how the market for air travel has fared in the last year and reviews what airlines have been doing to grow in a difficult environment.