NEW YORK, May 26, 2016 /PRNewswire/ -- As Memorial Day kicks off the start of the summer travel season, Travelzoo (NASDAQ: TZOO), a publisher of travel
deals, predicts Americans will see the best travel offers in years this summer. The combination of low oil prices, a strong
dollar, cheaper airfares and the impact of global events such as the Zika virus and instability in Europe, means Americans can expect to spend up to 40% less than last year on summer vacations.
Travelzoo's staff in the U.S. sees five trends in the market:
1. Lower Airfares
Travelers are seeing the lowest flight prices in seven years. Prices have declined 12% from 2015 and over 20%
from two years ago. Lower oil prices have decreased airline-operating costs, while major carriers have dropped fares to compete
with budget carriers that are adding more routes.
2. International Impact of Strong Dollar
The strong dollar means Americans can spend less to travel internationally. According to the National Trade and Tourism
Office, U.S. outbound travel in January 2016 (the most recent data available) rose 9% year over
year.
In January 2016, American travel to Canada increased 19% year over year. With the Canadian dollar trading at US$0.76, Americans effectively get a 24% discount on everything, including hotel stays, meals and activities,
when they cross the northern border.
The strong dollar is also translating into deals across the pond. There is more pressure on
international destinations to lure U.S. travelers with deals as many Americans will travel domestically this summer. A Travelzoo
survey conducted in early April found that 80% of respondents are foregoing plans to travel abroad and are instead considering
destinations within the U.S. Hotels in cities like Paris and London are offering deals as a means to incentivize travelers to rethink their plans.
3. More Deals in Europe
The recent wave of terror attacks in Paris, Brussels
and Turkey has also impacted tourism in the region. Hotel consultancy MKG Hospitality reported
that Paris occupancy rates in April were down 11% year over year, with 30% of the city's rooms
left vacant. Hotels and tourism boards are trying to entice tourists with lower rates and other incentives. In France, the state railway operator, SNCF, is offering discounted tickets on its trains while hotels are
offering discounts of up to 30%. In Turkey, meanwhile, prices are down by more than 40% with
5-star hotel rooms available for less than US$50.
4. Increased Availability of Caribbean and Mexico Vacations
Travelers are rethinking their plans in the wake of the Zika virus, and that has impacted tourism in the Caribbean and Mexico. A February Travelzoo poll found that 30% of travelers
were changing their plans to avoid Zika-impacted destinations. Many hotels, resorts, vacation packagers and cruise lines are
offering steep discounts in an effort to overcome the Zika stigma.
Summer is always a time when Travelzoo staff see bargains to the Caribbean, Mexico and Central America but
this year, we are seeing especially strong offers, especially in more posh islands like Anguilla, where we don't typically find deals.
5. Lower Prices and Stronger Demand for Asia
Lower airfares are translating into savings for vacations of more than 35% in Asia and
Australia. China vacation prices are some of the lowest we've
seen in years. You can go on an eight-night escorted vacation to China, including breakfast and
air, for under $850. That was unheard of until recently.
About Travelzoo
Travelzoo is a global media commerce company. With more than 28 million members in Asia
Pacific, Europe and North America and 25 offices
worldwide, Travelzoo® publishes offers from more than 2,000 travel, entertainment and local companies. Travelzoo's deal experts
review offers to find the best deals and confirm their true value.
Certain statements contained in this press release that are not historical facts may be forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These
forward-looking statements may include, but are not limited to, statements about our plans, objectives, expectations, prospects
and intentions, markets in which we participate and other statements contained in this press release that are not historical
facts. When used in this press release, the words "expect", "predict", "project", "anticipate", "believe", "estimate", "intend",
"plan", "seek" and similar expressions are generally intended to identify forward-looking statements. Because these
forward-looking statements involve risks and uncertainties, there are important factors that could cause actual results to differ
materially from those expressed or implied by these forward-looking statements, including changes in our plans, objectives,
expectations, prospects and intentions and other factors discussed in our filings with the SEC. We cannot guarantee any future
levels of activity, performance or achievements. Travelzoo undertakes no obligation to update forward-looking statements to
reflect events or circumstances occurring after the date of this press release. Travelzoo and Top 20 are registered trademarks of
Travelzoo. All other names are trademarks and/or registered trademarks of their respective owners.
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SOURCE Travelzoo