This time last year, economists and trend forecasters predicted that the recession would change our spending habits forever; no more frivolous purchases and the end of extravagant outlays. As a result, we saw the birth of the ‘staycation’ and as domestic travel looked set to soar, businesses also began to question the genuine value of travelling for face-to-face meetings, a traditionally inherent part of business culture.

But now we’re coming to the end of the year and economic indicators are showing signs of recovery, did the recession really change our attitudes towards travel for good? And what lies ahead for 2010?

Research conducted by leading car hire company, Avis, predicts that whilst the recession has undoubtedly had a sobering effect on expenditure, there are already indicators that travel consumption trends for both business and leisure are set to rebound during the next 12 months.

Wolfgang Neumann, Group Commercial Director, Avis Europe plc comments: “2010 is set to be a year of optimism and opportunity. We are certainly not back to the former ‘boom’ landscape we enjoyed for so long; however there are initial signs of recovery and a sense of pride that we have survived the darkest days.”

An optimistic outlook
Steady increases in confidence since the start of 20091 have been fully supported by the Avis findings which indicate that popular German holidays, including city and beach breaks, are set to increase in 2010 with 67% of Germans intending to take a city break, the most in all European countries surveyed, and 71% planning a beach break in 2010 compared to just 58% in 20092.

What’s more, demand for traditionally aspirational holidays, such as spa and health breaks are also predicted to grow in 2010, with 36% of Germans intending to take a spa holiday compared to only 24% in 2009.

And it isn’t just leisure travel which is set to rebound in 2010, with the research also indicating a 19% increase in the predicted number of business trips, despite their only being an 8% drop in 2009.

The true reality of the recession
Despite such recent returns of confidence, we must still question the impact which the recession has had on our travel habits.

German leisure travellers have shown that instead of being perceived a luxurious outlay, holidays are now considered an essential part of everyday life, with 77% claiming that they have not reduced the number of holidays taken due to the recession.

Meanwhile, German businesses have demonstrated an even great resilience with 33% of business personnel claiming that although their attitude to travel changed during the recession, it will revert back as the economy picks up and 60% claiming it hasn’t changed their attitude at all.

In addition, whilst 60% of businesses report that they make frequent use of teleconferencing, it seems that travelling for face-to-face meetings is still considered an essential part of day-to-day business, with ‘in-person’ meetings twice as likely to be used (35%) over web seminars (16%) and video conferencing (16%) and 95% of businesses claiming to find face-to-face meetings a key factor in successfully building and maintaining long term relationships3. 

Neumann continues: “Our research indicates that initial restrictions on travel seem to have been replaced by a more realistic outlook, with an understanding that the value of face-to-face meetings should not and cannot be underestimated and that virtual technology cannot deliver the same level of confidence and understanding.”

The Justified Journey
That’s not to say the recession hasn’t had a longer term impact, it has. The recession means that whether travelling for business or leisure, customers are looking to maximise their travel plans in every way possible, making sure that each journey offers the most value in both time and money.

Indeed, the research also shows that for consumers, extreme frivolous recreational experiences have fallen out of favour. It is no longer about experiences for experiences sake; the focus is instead on making the most of any travel experience, whether through increasing knowledge, improving wellbeing or providing greater family fun. 23% of Germans for example, are planning on taking a holiday with a cultural or educational theme, demonstrating the desire to self-improve whilst more than a fifth are planning an adventure or sporting holiday.

Meanwhile, 80% of German business respondents claim that they try and fit in as many meetings as possible to justify the value of the trip.

Neumann continues: “Gone are the days when the business trip was synonymous with a lavish, expenses paid break from the office. 2010 marks the age of the ‘Justified Journey’, justifying not only the time spent organising and attending your trip but the investment required to fund it.”

Making your money work harder
Understanding the desire to maximise travel value, Avis promises to ‘try harder’ for its customers, helping them to get the most out of their budget by offering a range of initiatives which will help them to manage their finances and ensure that all charges are as transparent as possible.

“The Fuel Up Front initiative, which enables customers to pre-pay for a full tank of fuel when they collect the car and then return it empty, means they can be assured of the best possible price, as Avis will charge less than the local pump price.” Neumann explains. “In addition, if they then return the car with a full tank, even after purchasing the Fuel Up Front option, Avis will refund the tank charged.”

Meanwhile the Rapid Return initiative ends any confusion over added pricing and post-rental charges. The Avis fast-track system will process a customers’ car information in just 60 seconds, providing clear data on what they have been charged for.

Neumann explains: “An Avis representative will attend to the car, using a hand held unit which is used to record the mileage, note the time of return and the car’s condition in 60 seconds whilst the customer is present, so they can be confident that any charges are fair and no unexpected amounts will appear on the bill.”

Making every second count
Whether travelling for business or leisure, freedom of choice was also shown to be particularly important for Germans when discussing their travel preferences, with 91% of Germans saying that they like to be able to come and go as they please, whilst 90% of Germans said that they like the freedom to travel independently.

Neumann comments: “Hiring a vehicle provides the ideal solution for consumers who want to be able to control where they go and when. Once you have collected your vehicle you can determine the number of destinations you visit, the time you depart and most importantly how long you choose to remain in each location. Car rental gives you the added flexibility you desire, allowing you to make the most of every single minute.”

What’s more, even though value for money is a leading priority for today’s consumer, Avis does not believe that its customers should have to sacrifice the quality of service they receive, and is therefore rewarding its frequent customers with a priority service designed to help maximise their time.

Avis Preferred is a complimentary service designed for frequent Avis travellers to make their car-rental experience as quick and efficient as possible. By signing up to Avis Preferred, customers will benefit from priority customer service, a dedicated reservation line and a separate Avis Preferred customer service desk. The service will also save them valuable time outside the rental station, with Avis Preferred parking bays and dedicated Avis Preferred ‘cabins’ in the car park to make collection even easier. In a number of locations, members can even bypass the rental counter entirely as their keys will be waiting in their vehicles.

Notes to editors:

• European Commission / nVision, Oct 2009
• All figures, unless stated, are from a Research Now pan-European survey. The survey was carried out in Oct 2009, online with 10,000 leisure travel respondents.
• Harvard Business Review, Understanding the post-Recession Consumer

Avis boiler plate

• For further information please contact Natalie Hodges, Account Director Public Relations, McCann Erickson (press contact on behalf of Avis Europe plc) on +44 (0) 121 713 3723/ Natalie.hodges@europe.mccann.com.
• Avis Europe is a leading car rental company in Europe, Africa, the Middle East and Asia, where it operates the globally recognised Avis and Budget brands, serving more than 8 million customers each year.
• The Avis brand operates across four continents via a network of over 2,800 locations in 109 countries, through wholly owned subsidiaries in 13 corporate countries complimented by licence arrangements in a further 96 countries.
• Avis Europe tries harder to meet customer’s needs with the complimentary Avis Preferred scheme providing customers with the quickest and easiest way to rent a car, including pre-prepared paperwork, priority counters and dedicated reservation lines.
• Avis Europe has also developed a series of other initiatives designed to improve speed, clarity and choice for customers including its jargon free Rental Agreement in 8 languages, Fuel up Front scheme, Rapid Return service and Satellite Navigation rental option.
• CSR is an integral part of Avis Europe’s ‘We Try Harder’ philosophy. Avis is committed to reducing the impact its business has on the environment and has been awarded CarbonNeutral® operation status since 2006. This was achieved through measuring and reducing its CO2 emissions to net zero through internal reduction initiatives such as, introducing more environmentally friendly vehicles into the fleet and through external reduction initiatives, i.e. offsetting.
• Further details can be found at www.avis-europe.com.