Consumers Summer Travel & Home Improvement Plans Feeling the Heat of the Down Economy

June 10, 2009

CHICAGO – Performics today released the second month’s findings from its “2009 Online Buyer Economic Trend Study.”

Family vacations and home improvements - two popular summer pastimes – are feeling the heat as a result of the economic downturn. According to the survey results, nearly 50 percent of respondents say they plan on spending less money than they normally do on home improvements this spring or summer. Similarly, nearly one out of five respondents cancelled summer vacation plans due to the economy. Twenty to 34 percent of consumers scaled back vacation plans since 2008 in terms of:

• Amount of money spent (33 percent decrease)
• Number of trips being taken (32 percent decrease)
• Length of stay (25 percent decrease)
• Distance traveled (20 percent decrease)
• Number of trips involving air travel (34 percent decrease)

While some consumers may cut back on spending, many plan to maintain their past spending levels. For example, 43 percent of consumers plan to spend the same as they normally do on home improvements. The May study also asked about the recent Mother’s Day holiday; although 40 percent of respondents spent less money on mom in 2009 than they normally do, more than half said they spent the same this year as last year.

“From a low-key Mother’s Day to cutbacks on summer travel and home improvement, it’s clear consumers continue to tighten their belts and be more selective with their spending,” notes Michael Kahn, SVP of Marketing at Performics. “Advertisers across the board, especially in highly affected segments like travel and home improvement, must acknowledge these behaviors and find creative ways to engage their audience and stay competitive.”

While too early to predict broad trends, May’s results also show only 29 percent of respondents say their household economic situation is improving now or they expect it to this year, versus 40 percent of respondents from April. For the second consecutive month, the study asked pointed questions about online buying behavior, including considerations for major purchases and spending plans. Key findings remain:

• Cutting back spending on non-essentials and falling income are the primary reasons why respondents expect to spend less this year
• Nearly half of respondents say they have spent more time researching at least one major purchase in the past three months; 48% in April and 44% in May
• The majority of respondents say they have postponed at least one major purchase in the past three months because of the economy

“We will continue to ask the tough questions and monitor how consumers react to an economy that remains in flux. Understanding the impact of the recession on consumer behavior will not only impact advertisers’ tactics in the coming months, but will drive strategy into the 2009 holiday season and beyond,” said Kahn.

Performics commissioned ROI Research to conduct this survey and other monthly surveys planned through December 2009. The May survey was conducted over a two-day period among 300 consumers who have made an online purchase in the past six months. The study will collect consumer data each month to track and document changes in consumers’ attitudes and behaviors in light of the current economy and will include additional topical questions with each monthly survey. Specifically, the research tracks the ongoing impact of the recession on online purchases and shifts in the use of the channel.  

For complimentary copies of the complete May findings, please contact Addie Reed at: areed@preturn.com.

About Performics

Performics provides search and performance marketing solutions to more than 200 of the world’s top brands.

Methodically innovative, we use the digital building blocks of search to create future-forward media opportunities designed to acquire and convert consumers. We help shape how consumers engage with advertisers online; we are impassioned visionaries who use structured approaches to anticipate and generate new brand experiences and leverage those events to drive ROI.

Headquartered in Chicago with offices around the world, Performics is the performance marketing expert inside Publicis Groupe’s VivaKi Nerve Center. Performics is MarketingNext.

Visit us: www.performics.com

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