and Spending Analysis - First Data€¦ · Myrtle Beach, SC Providence, RI Salisbury, MD Virginia...
Transcript of 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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SPENDTREND SUMMER TRAVEL AND SPENDING ANALYSIS
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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SPENDTREND SUMMER TRAVEL AND SPENDING ANALYSIS
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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SPENDTREND SUMMER TRAVEL AND SPENDING ANALYSIS
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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SPENDTREND SUMMER TRAVEL AND SPENDING ANALYSIS
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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SPENDTREND SUMMER TRAVEL AND SPENDING ANALYSIS
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
Source: First Data 2017 aggregated same-store spending data in the 10 selected popular summer destination markets.
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SPENDTREND SUMMER TRAVEL AND SPENDING ANALYSIS
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
Source: First Data 2017 aggregated same-store spending data in the 10 selected popular summer destination markets.
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SPENDTREND SUMMER TRAVEL AND SPENDING ANALYSIS
Average ticket analysis– International vs. domestic travelers
International travelers
spend over 50% more per
purchase than domestic
travelers in many categories.
Average Ticket Comparison
Source: First Data 2017 aggregated same-store spending data in the 10 selected popular summer destination markets.
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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SPENDTREND SUMMER TRAVEL AND SPENDING ANALYSIS
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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SPENDTREND SUMMER TRAVEL AND SPENDING ANALYSIS
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
Source: First Data 2017 aggregated same-store spending data.
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SPENDTREND SUMMER TRAVEL AND SPENDING ANALYSIS
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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SPENDTREND SUMMER TRAVEL AND SPENDING ANALYSIS
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
Tourist Attractions / Exhibits
36%
14%
Top summer leisure activities – Larger markets
Tourist Attractions / Exhibits
Percent of Total Leisure Spend / City
Top Leisure Activities
Source: First Data 2017 aggregated same-store spending data.
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SPENDTREND SUMMER TRAVEL AND SPENDING ANALYSIS
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
Source: First Data 2017 aggregated same-store spending data.
The smaller markets
are more popular for
family-oriented activities.
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SPENDTREND SUMMER TRAVEL AND SPENDING ANALYSIS
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.