The Cost of Having Fun - Travel Costs

Travel and tourism is the largest services export industry in the United States. It is also the third largest retail sales category and one of America's largest employers. An estimated 7.2 million U.S. residents worked in the travel and tourism industry in 2002, resulting in $157 billion in payroll. The Travel Industry Association of America (TIA) calculated that one out of every eighteen people in the U.S. civilian labor force was employed as a result of direct travel spending in the United States.

Although the travel industry suffered significant losses following the events of September 11, 2001, which came on the heels of an economic downturn, the TIA projected that domestic and international travelers would spend an estimated $552 billion in 2003, up from $537.2 billion in 2002. International travel accounted for $65.1 billion, and international visitors spent an estimated $80.7 billion traveling in the United States during the year, including $15.6 billion in travel fares alone.

The TIA reported that travel-related purchases made via the Internet rose dramatically during the early years of the twenty-first century. In 2003 an estimated 64.1 million people used the Internet to check prices or schedules or to find other information about travel destinations. More than two-thirds of these, or 42.2 million, booked some portion of their travel package online, with 29% of that number doing all their travel booking on the Web, up from 23% the year before. The average amount spent by online travel bookers was $2,600, up more than 10% from the $2,300 average spent in 2002. The TIA further reported that 75% of online travel planners had purchased airline tickets via the Internet in 2003; that same year 71% had booked accommodations online, and 43% had ordered rental cars. Other purchases made online included tickets to cultural events and complete travel packages.

The TIA predicted that tourism would continue to grow. By 2005 total domestic person trips were expected to top 1.2 million, and nearly forty-five million international travelers were expected to visit the United States. Travel price inflation was expected to increase 2.2%, mainly because of higher hotel rates and gasoline prices.