TripBarometer September 2013 - The global traveller economy

© Copyright 2013 Daniel J Edelman Inc.

Intelligent Engagement 1

TripBarometer by TripAdvisor

The World’s Largest Accommodation & Traveller Survey

Key Findings – September 2013

© Copyright 2013 Daniel J Edelman Inc.


The Global Travel Economy

The global traveller in 2013 will be doing the majority of their travelling within their home market, although this trend is due to change in the coming years

As travellers look to the future, their plans for holidays are becoming more expansive with an increased willingness to travel further afield

This trend is supported by increasing confidence in the economy and an admission that they will be taking more holidays and are willing to make sacrifices in other areas to help make travel possible

Accommodation businesses must be aware of this increasing trend – many already are, with a significant number planning to increaseroom rates in 2014 to response to increased demand and to stay in line with their competitors

Globally, accommodation businesses are feeling moreoptimistic about their future profitability and thisincreased confidence is driving investmentin their businesses

85% are planning to

travel in their home market

this year

Travel economy trends for the next two years

1 in 3 feel optimistic about

the global economy

© Copyright 2013 Daniel J Edelman Inc.4


Q19 Base: All Respondents

Only 1 in 3 global travellers is optimistic about the economy

4%

23%

41%

25%

7%

NET Optimistic: 32%

NET Pessimistic: 27%

Neither Nor

Optimistic

Pessimistic

• Central/ South America• Asia

• Australasia• Middle East• N. America• Africa

• Europe

Regional Sentiment:



Q16b Base: All Respondents

Four in ten travellers are planning to increase their travel budget in 2014

NET Less: 22%

NET More:39% • 20% increase in the

number of shorter holidays

• 11% increase in the number of longer holidays

In 2014, travellers are also planning to take

more holidays

76% to 100% less

51% to 75% less

26% to 50% less

1% to 25% less

Stay the same

1% to 25% more

26% to 50% more

51% to 75% more

76% to 100% more

More than 100% more

3% 5% 7% 8%

39%

20%

11%

4% 2% 3%

NB: Results have been rebased excluding ‘don't know’ responses



Africa, South America and Central America are most likely to spend more on travel in 2014

Africa South America

Central America

Middle East Asia Australasia Europe North America

Global

59%

48% 47% 46%42%

38% 36% 35%39%

21% 22% 24%27%

22%28%

20% 22% 22%

NET Increase Budget

NET Decrease Budget

Q16b Base: All Respondents NB: Results have been rebased excluding ‘don't know’

responses



•Those regions influenced by emerging markets are most likely to have increasing levels of confidence (Asia, Central and South America) and, as a result, be willing to increase their holiday. •However, being positive about the economy is not the only indicator to willingness to spend and travel. •Europe is the most pessimistic region regarding the economy but this does not mean Europeans will be spending less on their travels in the future, due to two key factors:

Despite lower levels of economic confidence, Europeans will not reduce their travel plans in the future

I would never spend less on holidays, they are too important

15%18%

Total

Europe

The global economy

27%22%

Q17 Base: Those who plan to spend moreQ18 Base: All Respondents



42%

29% 27%

18% 16% 14%10%

6% 3% 3%

16% 15%

• Central and South Americans are the most likely to say that they want to explore their own country (52% and 45% respectively), while North American and Middle Eastern travellers are the most likely to think that travelling in their home market is cheaper (37% and 36% respectively vs. 27% overall)

Having the opportunity to discover their own country is the main reason behind local travel




Many markets, especially those which are emerging, are willing to use credit to pay for holidays

14% 17% 13% 16% 17% 14% 13% 6% 8%

30%

45%47% 41%

30% 30%27%

29%16%

53%

32% 37% 40%50% 43%

57% 63%72%

No, I will not or did not use credit to pay for the holiday

Yes, I will pay or paid for part of it on credit

Yes, I will pay or paid for it all on credit




South and Central America – Plans to use credit

Argentina Brazil Mexico

10%18% 13%

51%44%

47%

33% 32% 37%No, I will not or did not use credit to pay for the holiday






North America – Plans to use credit

Canada US

26%16%

27%

30%

42%51% No, I will not or did not use

credit to pay for the holiday






Asia – Plans to use credit

India Indonesia Japan Malaysia Thailand

17% 11%19% 17%

8%

29% 40%

51%

28% 42%

51% 47%

28%

54% 49% No, I will not or did not use credit to pay for the holiday






Europe – Plans to use credit

Russia UK Spain Germany Italy France Turkey Greece2% 8% 2%

15%4% 1%

23%

4%11%

17%12%

31%

6%3%

24%

16%

84%73%

79%

48%

85% 94%

51%

78%No, I will not or did not use credit to pay for the hol-iday






Australasia – Plans to use credit

Australia New Zealand

13% 12%

27% 29%

58% 55% No, I will not or did not use credit to pay for the hol-iday






Middle East and Africa – Plans to use credit

Egypt South Africa

14%6%

30%

29%

43%63%

No, I will not or did not use credit to pay for the holidayYes, I will pay or paid for part of it on creditYes, I will pay or paid for it all on credit



Q17 Base: Those who plan to spend more

Holidays represent a reward for people and this is something they are willing to make sacrifices for….

35%

28% 26% 24%

15%

25%

2%

• European and Asian travellers believe holidays are too important to spend less on • South and Central Americans have been saving up• Asian and Middle Eastern travellers believe they and their family deserve it




The good, the bad, and the ugly side of holiday sacrifice

51%

43%40% 38%

31%28%

22%19%

16%13%

7% 7% 5%12%

Travel takes priority over other

family commitments

Net: 10%



Q28 Base: All respondents

Overall, accommodation businesses are optimistic about their profitability in 2014

Total Central America Asia North America Middle East South America Africa Australasia Europe

68%79% 74% 74% 72% 72% 70% 67%

56%

9% 6% 6% 6% 8% 7% 8% 9% 14%

NET Optimistic

NET Pessimistic




Decrease a lot

Decrease a little

Remain the same

Increase a little

Increase a lot

0%4%

52%

38%

2%0% 2%

42%

49%

2%

2012 2013Key reasons identified by business owners for increasing room rates were:

1. Paying for increased overheads2. Increased demand3. Staying in line with competition

Supporting the suggestion that the cost increase is a trend seen across the board in response to the increasing numbers of trips which travellers are taking

Hoteliers’ increased optimism is reflected by a significant number of owners increasing room rates in 2014



Increased confidence is driving investment in business


Staff hiring

Back office (IT, accounting, etc.)

Large scale renovations (e.g. new building, remodeling)

Staff training

Small scale renovations (e.g. refurbishments, redecorations)

Marketing or advertising

4%

6%

11%

13%

13%

14%

17%

16%

16%

26%

34%

34%

48%

52%

26%

38%

36%

44%

5%

4%

6%

1%

5%

3%

3%

3%

8%

2%

4%

2%

Much more Somewhat more About the same Somewhat less Much less



Over time, travellers plan to visit long-haul and inter-regional destinations

• In the short term, consumers choose their home market and region as the preferred destination. However, when looking at future trends in 2 years’ time, international destinations are being considered as an appealing alternative to their local markets*

• Europe will still be perceived as the preferred destination, not only by Europeans but also by their international peers

• Middle Eastern, South American and European travellers are the most likely to say that they will travel to Europe in 2 years’ time (42%, 41% and 40% respectively)

33%27%

20%8% 6% 5% 4% 4%

32%24%

18%8% 7% 7% 5% 4%

33%23% 19%

8% 8% 8% 9% 7%

6 months 12 months 2 years

*See following slides for full breakdown



• Consumers are staying close to home when taking a holiday, with local destinations being chosen by the majority:

Local travel prevails in the current climate

TotalRegion

Africa Asia Australasia Europe Middle EastNorth

AmericaCentral America

South America

NET: Africa 4% 87% 3% 2% 7% 4% 2% 1% 2%NET: Asia 29% 10% 92% 46% 13% 8% 8% 4% 3%NET: Australasia 5% 5% 8% 77% 2% 1% 4% 0 2%NET: Central America 10% 1% 1% 2% 4% 1% 20% 75% 6%NET: Europe 44% 19% 21% 19% 91% 19% 24% 16% 25%NET: Middle East 8% 8% 8% 5% 10% 83% 4% 0 3%NET: North America 37% 8% 19% 14% 13% 4% 83% 50% 25%NET: South America 11% 2% 1% 2% 2% 1% 3% 10% 86%

• Australasians and Central Americans are more likely to consider more distant destinations, although remain relatively close to their country, ie Asia and North America respectively

• Aside from receiving a large number of domestic visitors, Europe and North America stand out as the preferred destinations for international travel



Total

Region

Africa AsiaAustralasi

aEurope

Middle East

North America

Central Americ

a

South Americ

a

NET: Africa 4% 58% 3% 2% 5% 9% 2% 2% 3%

NET: Asia 20% 7% 65% 25% 8% 13% 5% 3% 3%

NET: Australasia 4% 3% 6% 53% 1% 6% 2% 1% 2%

NET: Central America 6% 1% 1% 1% 3% 4% 10% 49% 5%

NET: Europe 33% 10% 15% 14% 71% 35% 15% 12% 18%

NET: Middle East 5% 5% 7% 3% 5% 59% 1% 2% 4%

NET: North America 27% 4% 10% 10% 9% 9% 64% 39% 16%

NET: South America 8% 2% 2% 2% 2% 7% 2% 9% 66%

In 6 months



Total

Region

Africa Asia

Australasia

EuropeMiddle East

North America

Central Americ

a

South Americ

aNET: Africa 4% 40% 4% 2% 6% 13% 3% 2% 4%

NET: Asia 18% 10% 49% 27% 11% 19% 5% 5% 6%

NET: Australasia 5% 5% 8% 36% 2% 5% 3% 2% 4%


NET: Europe 31% 21% 20% 18% 55% 38% 18% 23% 27%

NET: Middle East 7% 7% 8% 3% 8% 47% 2% 4% 7%



In 12 months



Total

Region

Africa AsiaAustralasi

aEurope

Middle East

North America

Central America

South Americ

a

NET: Africa 7% 26% 7% 5% 8% 13% 5% 6% 8%

NET: Asia 19% 13% 36% 22% 17% 26% 9% 13% 13%

NET: Austalasia 9% 10% 12% 27% 9% 15% 7% 5% 8%


NET: Europe 33% 29% 27% 27% 40% 42% 28% 37% 41%

NET: Middle East 9% 11% 11% 5% 8% 44% 4% 10% 11%



In 2 years



38%

30%

23% 23%20%

16% 14% 13%10% 9% 9% 9% 8%

2%

An interest in exploring the unknown drives international travel, as the further the travel, the bigger the dream…• Europeans are most likely to be motivated by escaping the weather, getting a sun tan and

experiencing another culture• Travellers from the Middle East are looking to escape their life at home when they travel

• However, exploring the unknown also explains the motivation behind 42% of individuals travelling within their own country



…with Europe being seen as the ultimate dream destination

27%

15% 13% 13%

5% 4% 4% 3%

• Central Americans are the most likely to say that their dream destination is in Europe (40%). Only Asian and Middle Eastern travellers perceive their own regions as the ideal destination (27% and 40% respectively)

• Half would like to travel with their partner (51%) and a third with their family. Interestingly, 1 in 10 Asians would travel alone and a further 19% would go on holidays with their parents.

• 14% would ideally travel in September, rising to 16% among Europeans and to 17% among North Americans



Current travel

Current travel



Future travel

In 2 years’ time



The dream

Dream holiday



Reality vs. the dream

Current travel

Dream holiday

Date post:	28-Nov-2014
Category:	Travel
Upload:	stephaleeb
View:	323 times
Download:	0 times