Peek No : 1
June 18, 2003

Hello!

Welcome to the thoughtful domain of secondary research.

Thanks to your appetite for ear-to-the-ground information; we are reaching out to you through Marketspeek – the credit goes to the interest you have shown through your ‘subscription’.

Marketspeek is our FREE fortnightly newsletter, e-released on the 3rd and 18th of every month. Each issue is packed with our research team’s insights into a sector (one sector every issue).

Marketspeek is also laden with economy-synchronized editorials, amazing brandfacts, peeks into business history and inspiring thoughts. The Marketspeek model of sharing information ensures that you have fun while acquiring key insights. To cap it all, there is also an order form to ENABLE YOU TO ORDER A FREE ‘quikpeek’ secondary research.

Marketspeek, the research-centric newsletter, is written by experts under the supervision of Drs. Sharon and Glenn Livingston of Executive Solutions Inc. Marketspeek is intended to offer secondary research insights into the macro economics of US, revealing key information in the hottest sectors -- astounding facts about Brands within these sectors, a peek at the history of these markets, and some inspirational thoughts - all distilled by our most experienced team.

We begin with an overview of the US economy, and proceed to discuss the TRAVEL SECTOR for our first issue. (We will cover a new sector with each issue).

Overview of US Economy:
May was a month of mixed fortunes for the US economy. In the succeeding sections, we present you with the macro economic fundamentals of the economy.

Consumer confidence
Consumer confidence level in May 2003 fared at 83.8, as against a consensus estimate of 84.7. Confidence at this level is the highest recorded in this year. Also comforting is May's placement well ahead of the three-month moving average of 75.4, suggesting an upward trend to technical analysts.

Unemployment index
The unemployment rate is found to touch the 6.1% figure in May 2003. In absolute terms, it has been estimated that around 9.0 million American have remained jobless in May.

Price Indices
The import price index dropped 0.3% in May 2003. This drop has been fuelled by the drop in import prices of petroleum and nonpetroleum. The export price index edged up 0.1% in May 2003. Increasing levels of agricultural prices appears to be the reason behind this upward movement. The drop of non-agricultural prices was very marginal, and was more than offset by the increase in the agricultural prices.

This issue is our first and perhaps to augur well for our journey ahead, we are starting off with the travel industry of the US.

Looking forward to travel with you in an inquisitive journey.

Editorial Team
Marketspeek
Executive editor - Sharon Livingston
Editor- Vijay

 Fortnight Focus

Travel Industry - America

  • International arrivals to US declined 7% to 41.9 million in 2002 compared to 2001.
  • The war in Iraq has had little impact on the travel industry. The traveler sentiment is found to be only nominally low in the second quarter of 2003.
  • Traveler sentiment index was 97.1 in the first quarter of 2003. The index hovers at 95.7 in the second quarter.
  • A recent assessment of the travel market indicates that 82% of Americans are willing to pursue their travel plans made for Spring and Summer.

 

Profile of U.S. Domestic Traveler

  • Average age of Household Head: 48 years
  • 63% are married, 19% - single/never married and 18% - divorced, widowed, separated
  • 36% traveled with children

Adventure travelers: It has been found that 50% of U.S. adults have taken an adventure trip in the past five years.

Children: Almost 20% of the trips include children under 18. Majority of the trips with children were for leisure.

Honeymooners have been found to have spent three times more than the average traveler.

 

  Key Insights & Analysis -Travel Industry

  • There is a need to develop sound tourism concepts (For instance: eco-tourism, health tourism, etc) that can insulate the travel industry from the influence of macro-economic events.
  • The times are truly testing, for the travel industry. But isn't it time for the industry to revisit service delivery and other components neccessary to offer a perfect and enjoyable travel experience?
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 Wish I were

Wayne Huizenga didn’t exactly know where he was headed back then in 1962 when all he owned was a single trash truck. He didn’t know then that his company - Waste Management - would debut in the FORTUNE 500 list in 1982. And that he would go on to build two more FORTUNE 1000 companies: Blockbuster and AutoNation.

How did he transform these small enterprises into sprawling empires? Well, here are some Wayne-isms that throw ample light on the subject:

  • Concentrate on service industries where the demand does not ebb and flow too greatly.
  • Offer something that no one else is offering. His Blockbuster for instance offered 10,000 video tapes for rent while other stores had perhaps just 1,000.
  • Try to be a one-price company so customers have `no hassle, no haggle’. Women especially love this concept.
  • Sometimes, it pays to buy into businesses and then take them on to the next level. It’s much faster than trying to start from scratch.
  • Once an opportunity has been identified, move quickly – before the competition moves in.
  • And finally, be passionate about what you do. And what was Wayne passionate about? Well, the man says it pithily himself: “Moneymaking!”

For further reading:

http://www.businessweek.com/2000/00_11/b3672107.htm

http://www.fortune.com/fortune/smallbusiness/managing/articles/0,15114,445880,00.html

http://phoenix.bizjournals.com/phoenix/stories/2000/06/26/smallb5.html

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 BrandFact
The world's largest McDonalds, on I-44 at Vinita, Oklahoma, is actually built over the highway, with entrances on both sides.
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This Fortnight that Age
June 8th, 1786 - In New York City commercial ice cream was manufactured for the first time.
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 Insight
The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function. One should, for example, be able to see that things are hopeless and yet be determined to make them otherwise.
-- F. Scott Fitzgerald
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Disclaimer
The information presented in this Newsletter is not based on any primary research undertaken exclusively for this purpose; it is based on secondary sources of information, as current as the researchers were able to collect from the sources. However, should any specific client need up-to-date information on this (or any other) segment, they may commission Executive Solutions to do such research.