Travel Goods Association

Travel Goods Association Releases First Half 2010 Update on Sales of Travel Products: State of the U.S. Travel Goods Market 2000 – First Half 2010

Princeton, NJ — 2010 is looking like it might be the travel goods industry's comeback year, with good signs of recovery in many travel goods categories according to a new report from the Travel Goods Association (TGA).

TGA's report estimates that U.S. consumers spent $17.4 billion on travel goods in 2009 (travel goods being defined as luggage, backpacks, travel/sports bags, business cases/computer bags, handbags, personal leather goods, and luggage locks), down 15.2% from 2008 spending. Sales grew 4.6% in the first half of 2010, as compared with the first half of 2009. While 2010's sales pace remains below pre-recession levels, most travel goods categories appear to be picking up steam as the calendar rolls toward 2010's critical back-to-school and holiday shopping seasons.

"Travel is a category that took a big hit during the last recession, and of course travel goods took a hit as well, with 2009 travel goods sales at their lowest levels of the post-9/11 era," explains Michele Marini Pittenger, TGA's president. "But one good thing that's helping is the ever-changing face of travel. Continually changing airline regulations, the growing popularity of new types of vacations, and the explosion in personal electronics like new smart phones, PDAs and other electronic gadgets are changing people's travel habits, and what they pack. People used to wait until their old travel goods wore out before replacing them, but the current generation of travel items is so good, with so much more versatility, people are wanting something new, even in the face of ongoing economic uncertainty." Concluded Pittenger, "First half 2010 sales show people are starting to buy again. These are still early signs, and while it might take sales some time to return to their pre-recession levels, it looks like our industry is on the right track."

Here's a quick look at how TGA estimates each of the major travel goods categories performed in 2009 and the first half of 2010:

Luggage
2009 was a tough year for luggage sales, but 2010 is looking brighter. Travel was down, as American families canceled vacations and/or took so-called "staycations" in 2009, and corporate America cut back on business travel. Travelers opted to defer new luggage purchases, making do with their old luggage. As a result, TGA estimates that unit sales of luggage slid 28.6%, with dollar sales dropping 23.0% in 2009 versus 2008.

However, as the economic outlook brightened slightly in the first half of 2010, families started to take to the air and roads, and businesses started to ramp up their travel as well. The increased travel demand helped drive unit sales of luggage up 10.9%, with a 17.8% increase in dollar sales in the first half of 2010 over the same period in 2009. Early indications are that sales for the remainder of the year will continue at this positive pace.

Backpacks
Backpack sales started strongly in the first half of 2009, thanks to growing interest in close-to-home vacations in America's national parks and the great outdoors, but 2009's lackluster back-to-school and holiday seasons brought unit sales of backpacks down 6.8% and dragged dollars sales down by 0.9% for the year. The first half of 2010 shows unit sales falling 4.8% and dollar sales slipping 4.8% as families and kids milk a little more life from last year's backpacks. Early indications show the usual uptick in backpack sales from the back-to-school season won't reverse this declining sales trend.

Travel/Sports Bags
Travel/sports bags took a double whammy in 2009, with reduced family travel and corporate distribution of promotional bags – commonly called "freebies" – which account for a large segment of the travel/sports bags category. TGA estimates unit sales of travel/sports bags fell 9.3% and dollar sales dropped 13.9% in 2009. However, freebies appear to be making a comeback this year, and family budgets have loosened up as well; Unit sales in the first half of 2010 grew 13.8% and dollar sales rose 12.6%. Early indications are that sales will remain steady through the rest of 2010.

Business Cases/Computer Bags
Sales of computer laptops took a major hit in 2009, and computer bags experienced a corresponding slide. Business cases held their own, with unit sales slipping just 1.5% in 2009. But while unit sales dipped only slightly, the average price paid for briefcases fell dramatically, with total dollar sales in 2009 down 22.4%.

The soft computer market lingered in the first half of 2010, with continued negative impact on computer bag sales. And, while traditional business case sales numbers have started showing signs of weakening, their average value rose significantly, driven by high-end sales. The net result is a drop in unit sales for the first half of 2010, down 25.0%, although dollar sales rose by 13.7% for the same period. Early indications are that sales won't recover in the second half of 2010.

Handbags
Numbers for 2009 might have been down, but Americans still bought a whopping 252 million handbags last year. Making do was the modus operandi for American women, who deferred new handbag purchases during the economic recession to the tune of a 24.1% decrease in unit purchases and a 16.9% drop in dollar sales. But pent-up demand for that new look is starting to reverse the sales slide, as first half unit sales for 2010 slid considerably less, down 6.8% with dollar sales down 4.0% for the period. Early indications are that handbag sales will level out by the end of the year.

Personal Leather Goods
With the slump in sales of electronic gadgets during the recession, there's been a corresponding drop in personal leather goods to carry those new items in. Unit sales in 2009 fell 15.8% and dollar sales declined 12.2%. Releases of new, next-gen smart phones and other personal electronics have powered a recovery in sales in the first half of 2010, with unit sales up 10.7% and dollar sales up 5.8% during the period. Early indications are that sales will continue to increase, especially during the upcoming back-to-school and holiday seasons.

Luggage Locks
Luggage sales and travel might have been way down, but travelers seemed eager to protect what they had in 2009, with unit sales of luggage locks growing 12.5% in 2009. But the quality of those sales diminished, as dollar sales fell by 21.5%. Unit sales continue to be robust in the first half of 2010, growing 14.6%. Again, those sales came at a price, with dollar sales dropping 11.2% for the period. With sales increases for locks far outstripping sales increases for luggage over the last 18 months, however, it's unlikely this sales growth will be sustained over the later half of 2010.

For more information, go to TGA's just released State of the U.S. Travel Goods Market 2000-2010 Report (PDF format) or contact Nate Herman, TGA's Director of Government Relations, at 877-842-1938, x-708, nate@travel-goods.org.