Residential Relocation’s Effect on Leisure Travel
There are a great many things that make up the health of the leisure travel market. Perhaps the one with the most stealth is the movement our our nation’s residents from one state to another.
For example, a fine dining establishment is a critical part of the travel and leisure industry. Yet, a restaurant lives, breathes, and dies by its ability to generate the good will of the local community. With very few exceptions, restaurateurs will generate a significant portion of their annual revenue from those who live in their community.
Therefore, a healthy local economy is one of the ingredients for a healthy local leisure travel market.
Allied Van Lines just reported its 43rd Annual Magnet States Report. This report identifies the states with the highest use of Allied services, but interestingly, they also consider the states with the greatest net gains and losses.
- Texas realized the highest net relocation gain (inbound moves minus outbound) of 1,640, which is lower than the nearly 2,000 families it attracted in 2009, but it far outpaced all other states. Colorado came in second place, with net relocation gains of just over 400 and Florida, South Carolina and Arizona rounded out the top five states with the largest net relocation gains.
- Michigan again experienced the highest net relocation losses (more outbound than inbound shipments), followed by Illinois, Pennsylvania, New Jersey and New York. Economic woes and a soft housing market are probable causes for this decline. Allied Van Lines’ logged 2,352 outbound shipments from Michigan in 2010 compared to 1,203 inbound moves for a net relocation loss of 1,149. Illinois experienced the second largest net relocation loss with 1,050 more outbound than inbound moves, closely followed by Pennsylvania with a net relocation loss of 972, and New Jersey with a loss of 699.
I am not arguing that our nation’s residential movement will make or break a region’s health in the leisure travel market. However, I am arguing that this large movement, primarily to sunshine states, will clearly have an impact on a regions ability to support a healthy leisure travel market as more and more people come and/or go.
If I were going to invest millions of dollars in a new hotel, I’m likely to be headed not only to where the leisure travel market might dictate, but I am also going to be paying strict attention to the coming and going of our nation’s residents and their wallets.
What are your thoughts?