Phoenix Marketing Study Indicates Tough Times Ahead for the Travel Industry

Loyalty Programs, If Aggressively Marketed, Can Help Lessen Impact of Economic
Downturn on Hotel Operators
SOMERSET, N.J.--(Business Wire)--
The faltering global economy will curtail people`s travel plans in 2009, but
creative promotion of loyalty programs by airlines and hotels can recoup some of
the lost revenue and soften the economic impact, according to a new study by
Phoenix Marketing International`s Travel and Leisure Practice.

Phoenix recently completed a worldwide survey of 6,000 travelers in eight
countries who made an overnight trip in 2008. One third of those surveyed will
likely reduce travel in 2009 for economic reasons.

Scott Ludwigsen, Phoenix`s Executive Vice President of Airline Research, pointed
out that a significantly greater proportion of past-year travelers in the United
States, United Kingdom, and China are planning on fewer trips in 2009 than
travelers in Canada, France, Germany, Australia, and Japan.

Ludwigsen states, "Reduced travel schedules pose more of a problem for hotels
than they do for airlines. The airlines can cut costs by reducing the number of
flights. Hotels cannot reduce expense by eliminating rooms or closing
properties."

But hotels can battle back if they take advantage of their frequent guest
programs (FGPs), one of the most effective marketing tools that hotels possess,
according to Greg Diaz, Phoenix`s Vice President of Lodging and Loyalty
Research.

"Our recent study shows that approximately 29% of hotel loyalty program users
plan to focus their usage in a single FGP. Hotels that develop marketing
communications and program incentives to attract these travelers should do
relatively well in 2009."

Diaz went on, "We will be fielding the next wave of our annual Hotel SCORES FGP
Tracking Syndication Study next month. This survey we just completed, which
shows that 35% of all hotel frequent guest program members in the USA would like
to redeem points this year, tracks with what we`ve observed in previous years`
SCORES.

"My take on this is that hotels should not necessarily expect a deluge of
requests for redeemed points in 2009."

For representative data from the most recent Phoenix travel survey, please click
here: 2009 Travel Considerations.

About Phoenix Travel and Leisure

Phoenix`s Travel and Leisure Practice partners with clients in global and
domestic markets across the hotel, airline, destination and entertainment
industries. Together, we work to understand the social, economic and competitive
factors impacting business today.

About Phoenix Marketing International (www.phoenixmi.com)

Founded in 1999, Phoenix Marketing International is one of the fastest growing
marketing services firms in the United States. With offices across the country
and partnerships with many of the largest companies in the Affluent, Automotive,
Converged Technology, Financial Services, Healthcare, Media, Multicultural, and
Travel and Leisure industries worldwide. Phoenix offers advanced advertising and
brand measurement along with direct marketing expertise.

Phoenix Marketing Contacts:
Scott Ludwigsen, 732-563-8503
scott.ludwigsen@phoenixmi.com
or
Gregory Diaz, 732-563-8502
greg.diaz@phoenixmi.com
or
Press Contact:
Graber Associates LLC
Ray Graber, 781-221-0018
ray@graberassociates.net

Copyright Business Wire 2009