0

10

20

30

40

50

3 7.9 3 5.8

4 1.5

4 6.3

P er ce nt re porting tra v e l e x pe nditur es , 1 99 7

Jan ua ry

( A ut um n)

Ap r il

(W in t er)

J ul y

(S p rin g)

Oct ob er

(S umm er

NOT E: Mo nt h r e fe rs to mon t h of in t ervi ew . S ea so n refe rs to p eri od in w h ich ex pen

di tu r e oc curr e d.

Issues

Consumer Spending on Traveling for Pleasure

U.S. Department of Labor

Bureau of Labor Statistics

Summary 99-8 August 1999

in Labor Statistics

NOTE: Month refers to month of interview. Season refers to period in which expenditure occurred

January

(Autumn)

America is a Nation of travelers. In 1997, consumers made over 443 million pleasure trips,

an increase of more than 7 percent since 1995,

and nearly 23 percent more than in 1990.1

According to results of the Consumer Expenditure Survey, nearly 41 percent of all consumer

units2

 interviewed in 1997 reported some expenditure for non-business travel. Pleasure trips

and vacations are a major expenditure for many

consumers, and accounted for nearly 7 percent

of total quarterly outlays for those who report

such expenditures, or almost as much as the

average consumer unit spent on food at home.

It is useful to understand how and when

the travel dollar is allocated. For this report,

consumer units were interviewed about their

travel expenditures in January, April, July, and

October of 1997 (the most recent year for which

data are currently available). These months are

selected due to the recall nature of the Interview component of the Consumer Expenditure

Survey, from which these data are taken. Each

respondent is asked to recall expenditures for

the prior 3 months. In this case, families interviewed in January 1997 report expenditures for

October, November, and December 1996.

Those who are interviewed in February 1997

report expenditures for November and December 1996 and January 1997. Because of this

overlap in months, it is not easy to distinguish

in which season of the year the expenditures

for travel occurred unless the sample is limited to those months selected.

The chart shows that there is a seasonal

pattern to expenditures for travel. Not surprisingly, the percentage of consumer units reporting such expenditures peaks in the summer

months (July, August, and September). This is

a time of year when children are out of school,

and when there is less likelihood that inclement weather will cause travel delays. However,

regardless of month interviewed, more than one

third to nearly one half of all families report

travel expenditures.

Travel expenditures. The table shows how the

travel budget is allocated, including both average expenditures and budget shares for each

season of the year. For comparability, only

those who report at least one travel-related expenditure during their interview are included

in the sample shown in the table.

Just as the frequency of travel increases

during the summer months, so too does the

amount spent on travel. At an average of $776

during this period, expenditures are nearly 28

percent higher than in winter ($607), the period when average travel expenditures are lowest. They exceed expenditures during the spring

($692) by over 12 percent.

There is a great deal of variation in the allocation of the travel dollar among the various

components of travel. For example, expenditures for food and alcohol vary greatly by season. Average expenditures on these two items

on trips in summer exceed expenditures in winter by nearly 30 percent. Similarly, lodging expenditures are much higher in the summer—

81 percent higher—than in the winter. This may

reflect a seasonal shift in demand for lodging

during the summer, in part due to increased

travel at this time. Likewise, average entertainment expenditures are higher in summer

than any other time of year. It may be that given

the weather, more families attend outdoor

sports in the summer than in other seasons.

(This is supported by the fact that entertainment expenditures in spring are also much

higher than those in autumn or winter.)

However, not all travel expenditures are

consistent with this pattern. For example, expenditures for airfares are 23 percent lower in

spring and summer than they are in autumn.

Expenditures for gasoline and motor oil on trips

rise during this period, so it may be that families are substituting driving for air travel.

Shares of travel expenditures. Food and alcohol purchases account for more than 1 in every 4 dollars spent on travel regardless of season. In fact, food alone accounts for more than

25 percent of the travel budget in the summer

months. Although food accounts for nearly that

amount in the winter and spring months, it accounts for only about $1 in every $4.50 spent

in the autumn. Alcohol expenditures range only

from 2.5 to 3.1 percent of total travel spending, regardless of season.

Likewise, lodging consumed a much larger

share of the travel budget (23 percent) in the

summer of 1997 than it did in winter of 1996

(16 percent). However, total transportation

dropped precipitously as a share of total travel

expenditures, accounting for nearly half of all

travel expenditures in autumn of 1996, but just

Percent reporting travel expenditures, 1997

April

(Winter)

July

(Spring)

October

(Summer)

50

40

30

20

10

0

37.9 35.8

41.5

46.3

1

 U.S. Bureau of the Census, Statistical Abstract

of the United States: 1998 (118th edition.) Washington, DC, 1998, table 451. 2

 A consumer unit is comprised of members of a

household related by blood, marriage, adoption, or

other legal arrangement; a single person living alone

or sharing a household with others but who is financially independent; or two or more persons living

together who share responsibility for at least two

out of three major types of expenses—food, housing, and other expenses.
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over one-third of travel expenditures in summer of 1997. This is due to large declines in the

share for airfares. Even other local transportation falls from 3 percent to 2 percent of the travel

dollar in this period. (Vehicle operations is somewhat volatile, though, dropping from 11.2 percent of total travel expenditures in autumn to

10.7 percent in winter, but rising to 12.5 percent

by summer.)

Finally, despite the fact that expenditure

levels for entertainment on trips are higher in

the spring and summer months than in the autumn and winter months, the share for entertainment ranges only from about 10 to 11 percent of the total travel budget, regardless of

the season examined.

Material in this summary is in the public

domain and, with appropriate credit, may be

Average quarterly expenditures for travelers, Consumer Expenditure Survey, 1997

 Item July

(Spring)

January

(Autumn)

April

(Winter)

October

(Summer)

Month of Interview: Month of Interview:

 Item October

(Summer)

July

(Spring)

April

(Winter)

January

(Autumn)

used without permission. This information is

available to sensory impaired individuals upon

request. Voice phone: (202) 606-7828; Federal Relay Service: 1-8700-877-8339.

For further information on the data presented here, contact Geoffrey Paulin at

(202) 606-6900. For general information

about the CE Survey, send e-mail to

Vanderheide_W@bls.gov.

Total consumer units reporting

 travel expenditures ............... 39,836,117 38,130,668 43,476,708 48,396,968

Quarterly outlays .................... $10,113 $10,093 $9,946 $10,765 Share of travel budget

Travel expenditures ............. 679 607 692 776 Travel expenditures ................ 100.0 100.0 100.0 100.0

Food ................................. 151 150 171 197 Food .................................... 22.2 24.7 24.7 25.4

Alcohol ............................. 21 18 17 21 Alcohol ................................ 3.1 3.0 2.5 2.7

Lodging ............................ 116 97 142 176 Lodging ............................... 17.1 16.0 20.5 22.7

Transportation .................. 325 274 285 295 Transportation ..................... 47.9 45.1 41.2 38.0

Airfares ......................... 195 156 150 150 Airfares ............................. 28.7 25.7 21.7 19.3

Other fares ................... 31 37 45 29 Other fares ....................... 4.6 6.1 6.5 3.7

Vehicle operations ......... 76 65 77 97 Vehicle operations ............ 11.2 10.7 11.1 12.5

Vehicle rental ............. 19 18 17 28 Vehicle rental ................. 2.8 3.0 2.5 3.6

Gas and oil ................. 57 47 60 69 Gas and oil .................... 8.4 7.7 8.7 8.9

Other transportation ...... 23 16 13 19 Other transportation ......... 3.4 2.6 1.9 2.4

Entertainment ................... 66 68 77 87 Entertainment ...................... 9.7 11.2 11.1 11.2

1 Includes intercity bus and train fares and ship fares.

2 Includes local transportation, parking fees, tolls, etc.

3

 Includes fees for participation sports and for admissions to sporting events and movies; and rentals of campers and other recreational vehicles not included in

transportation.

1

2

3 3

2

1