and Spending Analysis - First Data€¦ · Myrtle Beach, SC Providence, RI Salisbury, MD Virginia...

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SPENDTREND SUMMER TRAVEL AND SPENDING ANALYSIS

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SpendTrend Summer Travel and Spending Analysis

July 2018

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Executive summary

YoY Growth

Restaurants

5.5%Gas Stations

2.2%Hotels

0.6%

Leisure Travel

Larger

Markets

Boston, MA

Chicago, IL

Los Angeles, CA

San Diego, CA

Seattle, WA

Smaller

Markets

Milwaukee, WI

Myrtle Beach, SC

Providence, RI

Salisbury, MD

Virginia Beach, VA

5.5% 2.2%

Highest average

ticket for hotel spend

Fastest growing market for

international visitors

International Travelers

11.1%

Fastest growing

market for hotel spend

We selected ten popular

summer destinations

for this analysis.

Seattle

$405

Myrtle Beach

14.2%

Providence

15.1%

Summer Destination Highlights

Source: First Data 2017 aggregated same-store spending data. Note: “Summer” is defined as Memorial Day weekend through Labor Day weekend. “Larger markets” are those that rank among the top 20 markets in the U.S. based on total dollar spending across summer spending categories. “Smaller markets” are those that rank below the top 50 markets. "Leisure" includes golf/vacation resorts, boating/marina services, amusement parks/zoos/aquariums, tourist attractions/museums, campsites/trailer and associated equipment rentals. "Travel" includes air travel, railways, taxi/limo/chartered bus/rideshare services, cruise lines, car rentals, bridge/tunnel/turnpike tolls & fees.

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Popular summer destinations – Larger markets

Summer and Top Category Spending Growth

Market

Summer Spend

YoY Growth

Largest Spend

Category

YoY

Growth

Boston 9.6% Restaurants 14.7%

Los Angeles 4.5% Travel 15.1%

Seattle 4.0% Travel 4.3%

San Diego 3.2% Leisure 3.7%

Chicago 2.7% Leisure 16.7%

Larger popular summer

destinations had many

common characteristics:

› Coastal locations

› Great beaches

and/or boating

› Numerous golf courses

› Vacation resort options

› Outdoor entertainment

› Cultural/arts attractions

› Active restaurant industry

Source: First Data 2017 aggregated same-store spending data. Note: “Summer spend” is the aggregated credit and debit card spending during summer across the following industries (as defined by the Department of Commerce): leisure, hotels, travel, gasoline, restaurants.

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Popular summer destinations – Smaller markets

Commonalities include

coastal locations, extended-

stay accommodations,

and family-oriented

leisure activities.

Smaller cities produced

mixed results with only

three of five showing

positive growth.

Summer and Top Category Spending Growth

Market

Summer Spend

YoY Growth

Largest Spend

Category

YoY

Growth

Providence 12.1% Restaurants 20.6%

Salisbury 3.0% Restaurants 4.3%

Myrtle Beach 0.6% Hotels 14.2%

Milwaukee -1.6% Travel 8.4%

Virginia Beach -0.1% Hotels 7.2%

Source: First Data 2017 aggregated same-store spending data.

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International travelers – Summer spending breakdown

Summer Spend by Non-U.S. Issued Cards

Across the selected popular

summer destinations,

Leisure and Gas – the

smallest categories of

summer spend for

international travelers –

both showed double-digit

growth rates.

Source: First Data 2017 aggregated same-store spending data in the 10 selected popular summer destination markets.

Category

YoY

Growth

Average

Ticket

Percent of

Summer Spend

Travel 2.2% $320 35%

Hotels 2.8% $437 28%

Restaurants 5.6% $50 22%

Leisure 10.6% $148 13%

Gas 11.2% $30 2%

Summer Spend 4.3% $119

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International travelers – Summer dining spend

Casual Dining made up,

by far, the largest portion

of Dining spend and saw

growth of 4.0%.

While QSR was the

smallest portion of Dining

spend, it was the fastest

growing at 18.8%.

Summer Spend by Non-U.S. Issued Cards

Format

YoY

Growth

Average

Ticket

Percent of

Dining Spend

Casual Dining 4.0% $83 52%

Upscale Dining 4.4% $179 22%

Family Dining 7.9% $39 13%

Fast Casual 7.4% $25 8%

QSR 18.8% $13 6%

Total Dining 5.6% $55


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International travelers – Summer leisure spend

Spending at Amusement

Parks represents more than

half of the Leisure category

with 6.8% growth.

Spend by Non-U.S. Issued Cards

Type

YoY

Growth

Average

Ticket

Percent of

Leisure Spend

Amusement Parks 6.8% $295 56%

Vacation Resorts 11.5% $88 13%

Tourist Attractions 5.6% $90 7%

Health Spas 4.3% $84 4%

Theater and Live Shows 35.9% $231 3%

All Remaining Categories 17.4% $79 17%

All Leisure 10.6% $148


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Average ticket analysis– International vs. domestic travelers

International travelers

spend over 50% more per

purchase than domestic

travelers in many categories.

Average Ticket Comparison


Differential

$62

$111

$135

$232

$287

$434

$438

$691

$802

$39

$61

$37

$164

$168

$260

$351

$454

$471

Bowling Alleys

Public Golf Courses

Billiards and Pool Halls

Theater and Live Shows

Amusement Parks

Marinas/Marine Services

Hotels

Professional Sports Events

Boat Dealers

Domestic Cards Non-U.S. Issued Cards

70%

52%

25%

66%

71%

42%

261%

80%

60%

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Domestic city travel pairings – Larger markets

Residents from New York

City and San Francisco

are among the most frequent

travelers to larger summer

destination markets.

Los Angeles

San Francisco

10%New York City

4%

Chicago

New York City

4%

Los Angeles

3%

Largest change

Flagstaff

Largest change

Rapid City

Boston

New York

City

10%

Washington

3%

San Diego Seattle

Phoenix

6%

San Francisco

6%

Largest change

Scranton

Largest change

Pensacola

San

Francisco

6%

Los Angeles

5%

Largest change

Iowa City

Percentage of Domestic Travelers from Origin City

Destination Origin

Source: First Data 2017 aggregated same-store spending data. Note: “Percent of domestic travelers from origin city” shows the percentage of U.S. based travelers to the destination city from the two largest originating cities as well as the originating city with largest change from the previous year. “Domestic travelers” defined as cardholders with a residency greater than 200 miles from the destination city where spend is recorded. Analysis included only origin cities with > 500 unique cards.

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Milwaukee

Minneapolis

4%

Providence

Largest change

Bakersfield

Largest change

Barnstable

Virginia Beach

New York

City

6%

Myrtle Beach Salisbury

Largest change

Odessa

Detroit

2% Washington

2%

Philadelphia

2%

Dallas / Ft.

Worth

3%

Largest change

Hinesville

Charlotte

10%

Washington

4%

New York City

9%

Pittsburg

3%

Largest change

Glens Falls

Domestic city travel pairings – Smaller markets

By and large, popular

smaller markets draw

from a narrower radius

than do larger markets.

Percentage of Domestic Travelers from Origin City

Destination Origin


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Top origin cities

Large costal metropolitan

areas supply the most

travelers to popular summer

destinations across the U.S.

Source: First Data 2017 aggregated same-store spending data. Note: Calculated based on cardholder usage in each destination city for the analysis period.

Most Common Origin Cities of Domestic Summer Travelers

#3 Los Angeles

#2 San Francisco

Bay Area#4 Washington

#1 New York City

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California cities feature

amusement parks while

Chicago and Seattle

benefit from appealing

tourist attractions.

BostonTheater and Live Shows

Health / Beauty Spas

30%

9%

ChicagoVacation Resorts 25%

16%

Los AngelesAmusement Parks

Country Clubs

73%

4%

San DiegoAmusement Parks

Tourist Attractions / Exhibits

59%

9%

SeattleCountry Clubs


36%

14%

Top summer leisure activities – Larger markets


Percent of Total Leisure Spend / City

Top Leisure Activities


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Top Leisure Activities Percent of Total Leisure Spend / City

MilwaukeePublic Golf Courses

Amusement Parks

46%

15%

Myrtle BeachTrailer Parks & Camp Sites

Recreational Vehicles

31%

21%

ProvidenceMarinas / Marine Services

Public Golf Courses

24%

14%

SalisburyVacation Resorts

Marinas / Marine Services

32%

12%

Virginia Beach

Time Shares

Country Clubs

26%

23%

Top summer leisure activities – Smaller markets


The smaller markets

are more popular for

family-oriented activities.

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Methodology

Definitions

› “Domestic travelers” defined as cardholders with a

residency greater than 200 miles from the destination

city where spend is recorded.

› “Larger markets” are those that rank among the top 20

markets in the U.S. based on total dollar spending

across summer spending categories.

› "Leisure" includes golf/vacation resorts, boating/marina

services, amusement parks/zoos/aquariums, tourist

attractions/museums, campsites/trailer and associated

equipment rentals.

› “Smaller markets” are those that rank below the top 50

markets in the U.S. based on total dollar spending

across summer spending categories.

› “Summer” is defined as Memorial Day weekend

through Labor Day weekend.

› “Summer spend” is the aggregated credit and debit

card spending during summer across the following

industries (as defined by the Department of

Commerce): leisure, hotels, travel, gasoline,

restaurants.

› "Travel" includes air travel, railways, taxi/limo/

chartered bus/rideshare services, cruise lines, car

rentals, bridge/tunnel/turnpike tolls & fees.

Measurement and Scope

› Evaluated U.S. markets at the Metropolitan Statistical

Area (MSA) level to identify cities with a relatively high

summer spending index for the five selected industries.

› Index is computed based on simple monthly average of

total 2017 spending (for example, an index of 120

indicates the market experienced monthly summer

spending in the selected industries at a level 20% higher

than a typical month during the year).

› MSAs were then organized in descending order by total

spending volume across the five focus categories, and

then a sample of ten “popular summer destinations” –

based on their high summer spend index – were chosen

from the top 100 markets.

› Additional views include international vs.

domestic spending.

Other Details

› Same-store sales based on activity in 2016 and 2017.

› This study included activity from 88,406 brick & mortar

businesses.

› The time period studied captured activity from over

80 million individual credit and debit cards.

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