The world weighs in on air travel

Anyone who has flown commercially in the past few years can attest that the glamour of air travel has long since dissipated. Today, cost-conscious airlines - especially in North America and Europe - have created a hodgepodge of budget airlines with long lines, self-service shortcuts and decreasing legroom and amenities. But who are their budget travelers? And how much more are they willing to suffer in order to fly for pennies?

Research firm Synovate asked over 5,000 respondents across the United States, Canada, France, Germany, Hong Kong, Malaysia, Singapore and Thailand a range of questions regarding air travel. Overall, 59 percent said they had flown before, but the net percentage of travel was highest in Hong Kong (80 percent) and Singapore (82 percent). The French appear to like air travel the least: only 35 percent have soared through the air.

Travelers were then asked if the majority of their flights were for leisure or for business. Over 20 percent of people in Malaysia and Thailand cited business as their main reason for air travel, whereas their European counterparts were more leisure-oriented when it comes to plane trips, with only 6 percent of Germans and 7 percent of the French mentioning business travel as their primary reason for flying.

With airlines under a number of economic pressures in the post-9/11 world, and with the price of fuel on the rise, “budget air travel” has become the new buzz phrase for the industry. The study gauged perceptions of budget air travel by asking respondents how often they flew for less.

Budget airlines offer tickets at around half the current market prices on one-to-two-hour short-haul flights. But to do this, they have reduced in-flight meals and entertainment, as well as legroom. How interested were respondents in traveling with these stripped down air companies? With the budget phenomenon just hitting Asia, people in Malaysia and Singapore, not surprisingly, hardly ever travel on budget airlines, with 56 percent and 83 percent of air travelers in these countries saying they never fly a budget airline. In the U.S. and Canada, however, approximately 50 percent of respondents admitted to flying budget airlines at least some of the time. Europeans seem to fall in between these two extremes, with over 32 percent of air travelers in France and Germany choosing budget airlines for at least some of their flights.

Seventy-five percent of respondents agreed that an airline trip was just like a bus trip, saying, they “wanted to get there fast and cheap,” with 64 percent of the respondents adding they would always choose a budget airline over bigger or national carriers if the budget airline ticket price was lower. This despite an overall 32 percent feeling that budget airlines treated passengers like a commodity and that there was no personal service.

Malaysians seem to be most fond of perks and amenities with 50 percent saying they would avoid budget airlines at all costs if it meant giving up the comfort provided by larger national airlines.

Despite complaints about budget airline service, frugal Americans, Canadians, the French and Germans still cite ticket price as the single most important factor when choosing an airline. Yet in Hong Kong, airline reputation still ruled the roost, with 30 percent of travelers saying it was the most important factor for them - only 15 percent cited ticket price. In Singapore and Thailand, over 23 percent of respondents reported seat comfort and legroom as their top consideration. Following close behind this factor, in-flight perks and amenities were the second-most important factor for Thai respondents, with 22 percent, while only 1 percent of respondents in Singapore cited in-flight perks as their main concern. Americans agree with Singaporeans, with only 1 percent saying the same. Canadians were also less concerned with perks and amenities with a mere 1.9 percent claiming it was a factor in ticket purchases.

And what about the lure of a good-looking cabin crew? The study asked men from each country if it was more important to have a pretty female cabin crew or good food or movies. French males seem to feel that food and movies were important, as only 16 percent were willing to trade these perks for attractive female flight attendants. On the contrary, over 30 percent of Hong Kong men sided with pretty cabin crew over food and movies - American men were a close second at 29 percent.

Although French women overwhelmingly thought, much like their male counterparts, that food and movies were more important than handsome young men, 19 percent of these women were still willing to make this trade-off versus only 11 percent and 6 percent of women in Hong Kong and Singapore, respectively. Overall, it seems most women would rather settle in with a good film and palatable food than enjoy some high-flying eye candy. For more information visit www.synovate.com .

Restaurants struggle to keep dieting customers

Restaurant chains are losing the diet crowd, says a new survey by research company TNS. According to the study, which measured food consumption of dieting Americans at 18 popular chain restaurants, 70 percent of dieters eat out at least once a week, and almost all are eating less often at many of the nation’s favorite restaurants.

This trend demonstrates that despite recent increased advertising and marketing pushes by many chains to tout low-carb and low-fat offerings, consumers are often not buying the message. This means that restaurants must respond with changes in menu offerings and communications with their customers to remain successful.

However, not all restaurants are failing to meet the needs of dieters. In fact, Subway led the pack among all restaurants that had increased business among dieters. The popular sandwich chain was also the only quick-service restaurant (QSR) with high results in this category. In fact, 68 percent of respondents have either maintained or increased their visits to Subway during the past year. Applebee’s also maintained or increased business among 59 percent of dieters. Rounding out the top five are Outback Steakhouse, Red Lobster and Olive Garden, indicating that these restaurants have responded effectively to the news of the 43 percent of Americans who claim to follow some type of diet program.

This finding highlights the fact that while most other chains have also launched or updated their menu options with healthy, low-carb or similar options on their menus, these five chains were the best at maintaining business among dieters. Clearly, the message is often not getting through, and restaurants are not capitalizing on their marketing investment. “Food-conscious Americans are seeking options, and with the carb craze going full tilt, awareness of menu options is critical to keeping nutrition-conscious customers coming through the doors,” says Ken Athaide, senior vice president and leader of TNS Restaurant Practice. “Casual dining restaurants have an advantage, because they offer more than the traditional fast-food items such as french fries, fried chicken, hamburgers and pizza that Americans are cutting back.

“These results validate the fact that Subway has created its dominance in this market through strategic positioning and marketing. Subway has become actively engaged in nutritional efforts - through its advertising, which consistently speaks to healthy food, its Web site, which features healthy food, and its sponsorship of the F.R.E.S.H. Steps Initiative, which is aimed at preventing and treating childhood obesity,” Athaide says.

According to TNS Media Intelligence/CMR, Subway spent $280 million in advertising in 2003, making it the fourth-largest ad spender of all restaurants included in the survey, just behind behemoths such as McDonald’s, Wendy’s and Burger King. Awareness of its low-carb menu options is the highest of all restaurants in the survey, despite the fact that Subway communicates a more general healthy-food message. One explanation may be that in addition to offering low-fat and generally healthy menu items, Subway also offers Atkins branded salads, which appeal to the low-carb crowd. In this way, the restaurant appeals to a wide array of dieting consumers.

Applebee’s, successful in the casual dining sector, has also consistently promoted its association with Weight Watchers. Among the casual dining restaurants in the survey, it spent the second most on advertising at $116 million, behind Pizza Hut. As a result, 38 percent of consumers following a diet program believe that Applebee’s has a limited or wide selection of low-carb options, again demonstrating a nutritional food halo effect generated through consistent advertising messages.

In 2003, the 18 national restaurants included in the survey spent a total of $3.14 billion, according to TNS Media Intelligence/CMR. The restaurants in this survey that spent the most on advertising in 2003 were McDonald’s ($673 million), Wendy’s ($329 million) and Burger King ($305 million).

The nationwide study was conducted via Internet-based interviews among a representative sample of 1,045 adult members of the TNS NFO Access Panel between June 11 and 16, 2004. For more information visit www.tns-global.com .

Is quinoa the next rice?

Hailed as the “supergrain” of the future, quinoa could become tomorrow’s rice, according to the current issue of the Culinary Trend Mapping Report, a quarterly journal of food and ingredient insight.

Published by market researcher Packaged Facts, in collaboration with the Center for Culinary Development, the report goes on to say that quinoa is higher in unsaturated fats and lower in carbs than most grains. Containing all eight essential amino acids, it is considered a “complete” protein, having more of the nutrient than any other grain.

Beyond its health benefits, chefs love quinoa’s versatility, as it cooks in half the time of regular rice and can be used in place of many recipes that call for rice, including soups and puddings. Its flavor is slightly nutty to neutral, making it the perfect base for a variety of ingredients.

While only 16 percent of surveyed consumers have heard of quinoa, over 90 percent of those who had eaten it said they’d try it again. The potential for this grain is huge, according to the report, as it moves toward the mainstream from niche, upscale eateries.

“Quinoa nicely fits the bill for today’s eating environment,” says Don Montuori, acquisitions editor for Packaged Facts. “It satisfies the protein-cravers, offers the benefits of a whole grain and gives the carb-lovers an excuse for openly indulging in that forbidden nutrient.”

The quarterly Culinary Trend Mapping Report identifies 12-15 ingredients, dishes, cooking styles, and flavor profiles, and their “maturity” level according to the Center for Culinary Development’s five-stage “Trend Mapping” tracking process. For more information visit www.packagedfacts.com .

Local NFL radio broadcasts draw coveted audience

New York-based Scarborough Research has released an analysis of local NFL game listeners and found that these consumers are top spenders in emerging sports advertising categories, such as travel and home improvement, as well as in traditional sports ad categories, including quick-service restaurants, beer and automotive. (Local NFL game listeners are defined as adults 18+ who listened to a radio broadcast of their local NFL team during the past 12 months.)

Local NFL game listeners are 70 percent more likely than the average adult to have taken three or more domestic air trips in the past year, and 34 percent more likely to have spent $3,000 or more on home improvements during this time frame. These consumers are 66 percent more likely to spend $100 or more on their monthly cellular bill. “Local NFL radio broadcasts attract consumers who are making high-end purchases in travel, telecom and other categories,” says Howard Goldberg, senior vice president, radio and sports marketing, Scarborough Research. “Advertisers seeking to deliver a strong message who tap into this powerful vehicle will be satisfied with the dynamic sports audience delivered.”

Local NFL game listeners are also top consumers in more established sports advertising categories. They are 41 percent more likely to have eaten at a fast-food restaurant 10 times or more during the past 30 days, and 44 percent more likely to have consumed any beer in the past month. In addition, local NFL game listeners are 51 percent more likely to plan to spend $30,000 or more on a new car purchase in the next 12 months.

Demographically, local radio broadcasts of NFL games deliver an upscale audience. These listeners are 77 percent more likely than the general population to have an annual household income of $100,000 or more and 30 percent more likely to plan to buy a second home. The Scarborough analysis also found that 25 percent of consumers in Milwaukee have tuned in to a Green Bay Packers game radio broadcast during the past 12 months, making Milwaukee the top market for local NFL game listeners. Kansas City, Mo., (23 percent), Buffalo, N.Y. (23 percent), St. Louis (21 percent), and Denver (20 percent) round out the top five markets for consumers who tune into their local NFL game on the radio. “Radio is a powerful vehicle for advertisers to target fans listening to live, play-by-play games,” says Goldberg. “In addition to the broad range of categories you can target with these broadcasts, marketers also have a strong local market opportunity.” For more information visit www.scarborough.com .

Fish and seafood catching on with Americans

Research from Chicago-based Mintel shows that Americans are drastically behind in the consumption of fish and seafood in comparison to other parts of the world. Americans each eat an average of 15.6 pounds of fish and seafood per year, compared to 82.9 pounds of chicken and 64.9 pounds of beef. In Europe and Japan, seafood consumption is substantially higher at 37.4 pounds per capita in Europe and an impressive 88 pounds per capita in Japan.

Americans show potential with consumption of fish and seafood, however. When Mintel asked which form of meat they were most tired of eating, only 7 percent reported fish compared to 40 percent for poultry and 23 percent for red meat. The Atkins high-protein/low-carb diet has undeniably had an impact on the consumption of seafood as 20 percent of Americans say they have increased the amount of meat and fish they eat because of the low-carb diet trend.

Currently, nine out of 10 Americans report eating fish and seafood. Those who eat fish and seafood do so on a fairly regular basis with 28 percent of this group eating it two or more times per week and 32 percent eating it at least once a week. Just over 17 percent eat fish and seafood less than once a month.

The fish and seafood market is growing at a healthy pace, with estimated 2004 increases of 7.5 percent. The market was relatively stagnant in 2002, but a resurgence began in 2003, fueled by a number of converging market factors. The low-carb diet trend spurred an interest in quality protein sources, which caused poultry and red meat prices to skyrocket. This made fish and seafood a more attractive option for consumers, as fish and seafood were relatively higher in cost than other forms of protein. Sales of fish and seafood are forecast to grow 21 percent by 2009 to reach $26.8 billion. For more information visit www.mintel.com .