The Travel and Home Leisure Market – Against All Odds

By Germaine A. Reyes
Article published in BusinessWorld, Wealth Manager Section, December 28, 2009

If you’re in the travel or its allied businesses, take heart – tourism is a bright spot for the leisure industry that is expected to shine even in the first quarter of 2010.
BUT, that’s just half of our story. Truth be told, the home leisure market as well provides a substantial base for enterprising individuals and/or companies out there.

How is this so? Consider these:

• around 57% are planning to spend much more/a little more leisure time at home (than
  do this outside of home)
• in the midst of future plans to spend more leisure time at homebecause of the global
  economic recession, THERE is a segment (a third of the population or 32%) that is
  expected to consider traveling in the near term.

These were emerged in the 1,000 base survey conducted by Synergy Business Consultancy in August?September 2009 amongst the ABCDEs in Metro Manila.

The Leisure Market

Leisure travel, owing possibly to its aspirational nature (a measure that one has ‘arrived’ if one is able to do so), seems to be resilient despite the continued tightness in the economy. More people are expected to travel in the next 6 months, whether overseas or domestic.

Overseas travelers are expected to almost triple from 5% to 14% in the next 6 months.  Popular locations are mainly within Asia, followed by Middle East, the US and Europe.

On the local side, more are expected to travel domestically (28%) – thanks possibly to the Tourism industry’s promotion of our beaches, historical spots and other tourist attractions. Like international travel, new travelers are expected to hit the road in the coming months – about half (13% of total ) of those who foresee traveling soon (the 28% of total planning to prospectively travel domestically).

The OFW families are expected to contribute to this bump in domestic travel for leisure. Who would complain? Domestic travel provides a more affordable travel experience for families of those who have worked painstakingly overseas. Implicit to this, such provides an opportunity to explore ‘our very own’ space and locations, which is aligned with the government’s thrusts.

So, if you’re in the airline and other alternative transportation companies, travel agencies, merchandising businesses (posters, streamers, billboards, etc.), PR agencies, and other related businesses, try to tickle that leisure bug fancy, whet the appetite of these potential leisure
travelers, paint the ‘moments’ that can be treasured by this type of traveler to trigger that ‘yes’ to your booking or inquiry. The latent demand is up for the taking by your business endeavors.

Home Market

In contrast, the home market also provides opportunities for enterprising individuals and companies to take advantage of leisure time at home. The study showed that malling/window shopping, eating out and going out with barkada on gimmicks/nightoutswill soften in the nearterm
(around 3?5 percentage points, considered to be significant, statistically?speaking). SO, if you’re into food/beverage ventures, non?food products and services, here are some questions that if you say ‘yes’ to, may be business ideas for you to consider:

• are you into providing affordable leisure alternatives for those who stay at home? The idea is that cash outlay should not be more expensive to alternatives considered outside of home. If there are gadgets required, how cost effective are you vs. those offered in the market?
• can your beverage or food product be something that can be consumed while engaging in these leisure activities at home? If yes, try aligning your messages towards compatibility of your products/services to whatever leisure activity this may be. The idea is to create new or reinforce this consumption occasion in line with your product (or service)
• can your product/service be an ‘enabler’ for bonding moments at home? This could be affordable ‘enablers’ for families to engage in at home.

These are some thought starters or support to probably what some of you have been brewing or developing already. Try to test it and see whether you have a relevant activity, product or service for this latent demand at home.

Considering Typhoon Ondoy’s effects, there is a higher likelihood for leisure activities to be put in the back burner in order to pave the way to more basic needs/items. But who says one cannot uplift one’s leisure time even if this were spent at home? Your ideas are your only limitations.

Creativity is the name of the game.

*****

Article contributed by: Germaine A. Reyes, Managing Director, Synergy Business
Consultancy, celebrating its 10th year in the market research industry. Visit
www.synergy.ph.