EIGHTY PERCENT OF SMALL TRAVEL AND TOURISM BUSINESSES SEE STRONG LEVELS OF TRAVELERS IN SUMMER 2006, ACCORDING TO CONSTANT CONTACT SURVEY

Ninety-five percent maintain websites, 80 percent using email marketing to capitalize on sales opportunities

Despite the positive outlook, 50 percent believe high fuel prices have negatively impacted business

Waltham, MA. - August 16, 2006

With the summer of 2006 in full gear, small travel and tourism businesses are experiencing strong levels of visitors and customers. According to the 2006 Travel and Tourism Outlook* survey from Constant Contact®, 80 percent of small travel and tourism businesses said reservations were at or above last year's levels (37 percent and 43 percent respectively). With 84 percent expecting more online sales in 2006, the majority of small travel and tourism businesses today are using several methods of online marketing. In fact, 95 percent surveyed maintain a website, with 80 percent using email marketing to drive website traffic and to promote special offers. Constant Contact (www.constantcontact.com) is the leading email marketing service for small businesses, associations, and nonprofits.

Small businesses look to the Internet for marketing:
As the travel industry continues to grow, consumers have more and more options to research and book vacations with small travel and tourism businesses, especially since more of these businesses are now using online marketing methods, helping them stay in touch with local customers. In fact, the survey results revealed that 62 percent also offer online booking options to provide consumers with the online convenience they've come to expect.

Other findings of note regarding competitive pressures on smaller travel businesses revealed that 74 percent of those polled said that large online travel sites have not negatively impacted their sales. What then are owners of small travel/tourism companies worried about? According to the survey, nearly 50 percent believe high fuel prices have hurt their businesses.

"The survey results show that U.S. small travel businesses are thriving, especially now, during the summer months," said Gail Goodman, CEO, Constant Contact. "The survey also indicates that the strong health of these businesses can be attributed to their adoption of online marketing methods - as the Internet has helped them reach more current and prospective customers to help grow their businesses."

Top challenges facing small travel and tourism businesses:
In addition to concerns about rising fuel costs, 48 percent of small travel and tourism businesses surveyed said finding new customers was their biggest challenge. Filling reservations during the off-season (23 percent) came in as the second biggest challenge, followed by competing with online travel sites (18 percent), and getting repeat business from current customers (11 percent).

Small businesses reveal consumer vacation trends:
According to the survey, small travel and tourism businesses said the average summer vacation lasts one to two weeks (52 percent). Businesses surveyed also noted that families (56 percent) make up their largest percentage of customers - next largest was retired couples at 19 percent.

In addition, small travel and tourism business owners revealed that while summer (48 percent) and winter (23 percent) are their busiest seasons, there is opportunity year-round for sales - fall and spring ranked as having the greatest impact for 15 percent and 14 percent, respectively, of businesses.

Sample questions and results from Constant Contact's 2006 Small Business Summer Vacation Outlook survey include the following:

How have reservations for this summer compared to last year?

Reservations are higher than last year	43%
Reservations are about the same	37%
Reservations are less than last year	20%

What is your biggest challenge?

Finding new customers	48%
Filling rooms/seats in the off season	23%
Competing with online travel sites	18%
Getting repeat business from current customers	11%

How long is the average vacation booked by your customers?

Weekend (2 days)	21%
Long weekend	24%
One week	39%
10-14 days	13%
More than 14 days	2%

Who are your main customers?

Families	56%
Retired couples	19%
Business travelers	12%
Young couples	7%
Students	6%

What season has the biggest impact on your business?

Summer	48%
Winter	23%
Fall	15%
Spring	14%

What marketing methods do you use to promote your summer offerings? (check all that apply)

Email marketing	80%
Online Marketing	65%
Direct Mail	47%
Advertising (TV, radio or newspaper)	43%
Flyers	36%
Other	15%

What types of messages do you communicate to your customers through email? (check all that apply)

General Newsletter	60%
Travel Specials	58%
Holiday/seasonal promotions	39%
Coupons and discount offers	31%
Travel Tips	29%
Other	10%

For more information about the survey or for additional results, please contact Kevin Mullins at 781-472-6206, or by email at kmullins@constantcontact.com

* The 2006 U.S. Small Business Summer Vacation Outlook survey was conducted through targeted online distribution to U.S. small businesses who are current customers of Constant Contact, recording results from more than 250 respondents. Respondents came from the following categories: hotel/motel/resort/B&Bs; travel agency; tour operator/company; online travel site; and city/region tourism organization. The survey was conducted from June 28 - July 17, 2006.

About Constant Contact
With more than 65,000 customers, Constant Contact® is the leading email marketing service for small businesses, associations, and nonprofits. Constant Contact is a web-based email marketing solution that enables small organizations to easily create and send professional email newsletters, promotions, announcements and more with no technical expertise required. Designed and priced for SMBs, Constant Contact is affordable, easy-to-use and includes a free 60-day trial at: www.constantcontact.com. The service is marketed through over 1,500 Business Partners and more than 100 marquee channel partners including American Express OPEN, AOL, Corel, FTD, IBM, Interland, Network Solutions, Register.com, Website Pros and Yahoo Search Marketing. Constant Contact is a founding member of the Email Service Provider Coalition (ESPC), a group formed to fight spam while protecting the delivery of legitimate email. Constant Contact is funded by Greylock Partners, Morgan Stanley Venture Partners, Commonwealth Capital Ventures, Longworth Venture Partners, and Hudson Ventures. For more information, please call 781-472-8100.

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