Trip barometer september 2013   the global traveller economy
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Trip barometer september 2013   the global traveller economy Trip barometer september 2013 the global traveller economy Presentation Transcript

  • TripBarometer by TripAdvisor The World’s Largest Accommodation & Traveller Survey Key Findings – September 2013 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 1
  • The Global Travel Economy © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 2
  • Travel economy trends for the next two years 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 increase room rates in 2014 to response to increased demand and to stay in line with their competitors Globally, accommodation businesses are feeling more optimistic about their future profitability and this increased confidence is driving investment in their businesses 85% are planning to travel in their home market this year 1 in 3 feel optimistic about the global economy
  • Only 1 in 3 global travellers is optimistic about the economy Regional Sentiment: NET Pessimistic: 27% 41% NET Optimistic: 32% •  •  •  •  25% 23% •  Central/ South America •  Asia Australasia Middle East N. America Africa •  Europe Neither Nor Pessimistic 7% 4% Very pessimistic Optimistic Quite pessimistic Neither optimistic nor pessimistic Quite optimistic Very optimistic Q19 Base: All Respondents 4 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 4
  • Four in ten travellers are planning to increase their travel budget in 2014 NET Less: 22% In 2014, travellers are also planning to take more holidays NET More: 39% 39% •  20% increase in the number of shorter holidays •  11% increase in the number of longer holidays 20% 3% 5% 7% 76% to 100% 51% to 75% 26% to 50% less less less Q16b Base: All Respondents 5 © Copyright 2013 Daniel J Edelman Inc. 11% 8% 4% 1% to 25% Stay the same 1% to 25% less more 2% 3% 26% to 50% 51% to 75% 76% to 100% More than more more more 100% more NB: Results have been rebased excluding ‘don't know’ responses Intelligent Engagement 5
  • Africa, South America and Central America are most likely to spend more on travel in 2014 NET Increase Budget NET Decrease Budget 59% 48% 21% Africa 47% 22% 24% South America Central America Q16b Base: All Respondents 6 46% © Copyright 2013 Daniel J Edelman Inc. 42% 38% 36% 28% 27% 22% Middle East 39% 35% Asia 20% Australasia Europe 22% North America 22% Global NB: Results have been rebased excluding ‘don't know’ responses Intelligent Engagement 6
  • Despite lower levels of economic confidence, Europeans will not reduce their travel plans in the future •  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: Total 15% 18% I would never spend less on holidays, they are too important Europe 27% 22% The global economy Q17 Base: Those who plan to spend more Q18 Base: All Respondents 7 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 7
  • Having the opportunity to discover their own country is the main reason behind local travel •  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) 42% 29% 27% 18% I want to discover my own country 8 Visit family It's cheaper © Copyright 2013 Daniel J Edelman Inc. I've always gone on holiday in my own country 16% I save time travelling 14% 16% 10% I don't lose a It's easier with day or several the children days travelling 6% 3% No jetlag I don't like flying I have no interest in travelling abroad 15% Other Not applicable 3% Intelligent Engagement 8
  • Many markets, especially those which are emerging, are willing to use credit to pay for holidays 32% 37% 53% 45% 47% 40% 41% 30% 14% Global 17% 13% South America Central America 50% 30% 43% 30% 57% 27% 16% 17% 14% 13% Asia North America Middle East Australasia 63% 29% 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 16% 6% 8% Africa Europe Q14 Base: All Respondents 9 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 9
  • South and Central America – Plans to use credit 33% 51% 32% 44% 37% 47% 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 10% Argentina 18% 13% Brazil Mexico Q14 Base: All Respondents 10 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 10
  • North America – Plans to use credit 42% 51% Yes, I will pay or paid for part of it on credit 27% 30% 26% Canada No, I will not or did not use credit to pay for the holiday Yes, I will pay or paid for it all on credit 16% US Q14 Base: All Respondents 11 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 11
  • Asia – Plans to use credit 28% 51% 47% 54% 49% Yes, I will pay or paid for part of it on credit 51% 29% 40% 17% 11% India Indonesia No, I will not or did not use credit to pay for the holiday 28% 19% 17% Japan Malaysia 42% Yes, I will pay or paid for it all on credit 8% Thailand Q14 Base: All Respondents 12 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 12
  • Europe – Plans to use credit 48% 84% 73% 79% 51% 85% 78% 94% 24% 31% 17% 11% 2% Russia 8% UK 12% 2% Spain 15% 6% 4% Germany Italy Yes, I will pay or paid for part of it on credit 23% 3% 1% France No, I will not or did not use credit to pay for the holiday 16% 4% Turkey Greece Yes, I will pay or paid for it all on credit Q14 Base: All Respondents 13 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 13
  • Australasia – Plans to use credit 58% 55% 27% 29% 13% 12% Australia New Zealand 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 Q14 Base: All Respondents 14 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 14
  • Middle East and Africa – Plans to use credit 43% 63% 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 30% 29% 14% Egypt 6% South Africa Q14 Base: All Respondents 15 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 15
  • Holidays represent a reward for people and this is something they are willing to make sacrifices for…. •  •  •  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 35% 28% 26% 25% 24% 15% I have been saving up for I think I deserve to spend something special this year more on myself My family deserve it I am more confident about I would never spend less the economy on holidays, they are too important 2% Other Don't know Q17 Base: Those who plan to spend more 16 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 16
  • The good, the bad, and the ugly side of holiday sacrifice Travel takes priority over other family commitments Net: 10% 51% 43% 40% 38% 31% 28% 22% Nights out (alcohol, club fees) Meals out Clothes or Entertainment personal items expenditure expenditure Cigarettes Gifts 19% Travel Home expenditure improvements (walking or getting the bus instead of tube, downgrading travel class) 16% Charity donation 13% Grocery expenditure 7% 7% Childcare Child's extracurricular activities 5% Child's education 12% None of these Q33 Base: All Respondents 17 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 17
  • Overall, accommodation businesses are optimistic about their profitability in 2014 NET Optimistic NET Pessimistic 79% 68% 9% Total 74% 6% Central America 74% 6% Asia 72% 6% North America 72% 8% Middle East 70% 7% South America 67% 8% Africa 56% 9% Australasia 14% Europe Q28 Base: All respondents 18 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 18
  • Hoteliers’ increased optimism is reflected by a significant number of owners increasing room rates in 2014 2012 Key reasons identified by business owners for increasing room rates were: 52% 1.  Paying for increased overheads 2.  Increased demand 3.  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 49% 42% 0% 0% 4% 2013 38% 2% 2% Decrease a lot Decrease a little Remain the same Increase a little 2% Increase a lot Q25 Base: All respondents 19 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 19
  • Increased confidence is driving investment in business Marketing or advertising 14% 34% Small scale renovations (e.g. refurbishments, redecorations) 13% 34% Staff training 13% Large scale renovations (e.g. new building, remodeling) 11% Back office (IT, accounting, etc.) Staff hiring 6% 4% Much more 44% 36% 26% 5% 38% 16% 26% 16% 8% 4% 3% 48% About the same 4% 1%2% 6% 52% 17% Somewhat more 3% 2% 5% 3% Somewhat less Much less Q24 Base: All respondents 20 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 20
  • Over time, travellers plan to visit long-haul and interregional 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% 32% 33% 27% 24% 23% 20% 18% 19% 8% NET: Europe NET: North America NET: Asia 8% © Copyright 2013 Daniel J Edelman Inc. 6% NET: South America 6 months 21 8% 7% 8% NET: Central America 12 months 2 years 5% 7% 8% NET: Middle East 4% 5% 9% NET: Australasia 4% 4% 7% NET: Africa *See following slides for full breakdown Intelligent Engagement 21
  • Local travel prevails in the current climate •  Consumers are staying close to home when taking a holiday, with local destinations being chosen by the majority: Region Total NET: Africa NET: Asia NET: Australasia NET: Central America NET: Europe NET: Middle East NET: North America NET: South America 4% 29% 5% 10% 44% 8% 37% 11% Africa Asia Australasia Europe Middle East 87% 10% 5% 1% 19% 8% 8% 2% 3% 92% 8% 1% 21% 8% 19% 1% 2% 46% 77% 2% 19% 5% 14% 2% 7% 13% 2% 4% 91% 10% 13% 2% 4% 8% 1% 1% 19% 83% 4% 1% North America Central America 2% 8% 4% 20% 24% 4% 83% 3% 1% 4% 0 75% 16% 0 50% 10% South America 2% 3% 2% 6% 25% 3% 25% 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 22 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 22
  • In 6 months Region Total NET: Africa NET: Asia NET: Australasia NET: Central America NET: Europe NET: Middle East NET: North America NET: South America 23 © Copyright 2013 Daniel J Edelman Inc. Australasia Europe Middle East North America Central South America America Africa Asia 4% 58% 3% 2% 5% 9% 2% 2% 3% 20% 7% 65% 25% 8% 13% 5% 3% 3% 4% 3% 6% 53% 1% 6% 2% 1% 2% 6% 1% 1% 1% 3% 4% 10% 49% 5% 33% 10% 15% 14% 71% 35% 15% 12% 18% 5% 5% 7% 3% 5% 59% 1% 2% 4% 27% 4% 10% 10% 9% 9% 64% 39% 16% 8% 2% 2% 2% 2% 7% 2% 9% 66% Intelligent Engagement 23
  • In 12 months Region Total     NET: Africa NET: Asia NET: Australasia NET: Central America NET: Europe NET: Middle East NET: North America NET: South America 24 © Copyright 2013 Daniel J Edelman Inc. Middle East North America 6% 13% 3% 2% 4% 27% 11% 19% 5% 5% 6% 8% 36% 2% 5% 3% 2% 4% 1% 2% 2% 4% 6% 11% 28% 8% 31% 21% 20% 18% 55% 38% 18% 23% 27% 7% 7% 8% 3% 8% 47% 2% 4% 7% 24% 6% 14% 10% 13% 13% 46% 32% 23% 8% 6% 4% 4% 3% 9% 4% 17% 42% Africa Asia Australasia Europe 4% 40% 4% 2% 18% 10% 49% 5% 5% 7% Central South America America Intelligent Engagement 24
  • In 2 years Region Total Africa Asia Australasia Europe Middle East North America Central America South America NET: Africa 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: Central America 8% 3% 4% 3% 7% 9% 9% 22% 11% NET: Europe 33% 29% 27% 27% 40% 42% 28% 37% 41% NET: Middle East 9% 11% 11% 5% 8% 44% 4% 10% 11% NET: North America 23% 17% 17% 17% 19% 16% 34% 20% 23% NET: South America 25 7% 9% 7% 7% 5% 7% 9% 6% 12% 25% © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 25
  • 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 38% 30% 23% 23% 20% 16% 14% 13% 10% 9% 9% 9% 8% 2% Explore another Experience I've always dreamt culture something specific of going there to that place 26 © Copyright 2013 Daniel J Edelman Inc. Looks fun Explore new food To forget about my To escape the life at home weather at home Visit family Recommendation from friends and family It's cheaper To get a sun tan Got a great deal I will be on In order to show off business and have to others added the holiday on Intelligent Engagement 26
  • …with Europe being seen as the ultimate dream destination •  •  •  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 27% 15% 13% 13% 5% NET: Europe 27 NET: Asia © Copyright 2013 Daniel J Edelman Inc. NET: Australasia NET: North America 4% 4% 3% NET: Middle East NET: Africa NET: South America NET: Central America Intelligent Engagement 27
  • Current travel Current travel 28 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 28
  • Future travel In 2 years’ time 29 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 29
  • The dream Dream holiday 30 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 30
  • Reality vs. the dream Current travel Dream holiday 31 © Copyright 2013 Daniel J Edelman Inc. Intelligent Engagement 31