Trip barometer september 2013 the global traveller economy

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



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



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


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

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%


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

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
7



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


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%


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
it all on credit

16%

6%

8%

Africa

Europe

9



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

10



10

North America – Plans to use credit

42%

51%

it on credit

27%
30%
26%

Canada


credit

16%

US

11



11

Asia – Plans to use credit
28%
51%

47%

54%

49%

it on credit

51%
29%

40%

17%

11%

India

Indonesia


28%
19%

17%

Japan

Malaysia

42%

credit

8%

Thailand

12



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

13



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

14



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

30%
29%
14%

Egypt

6%

South Africa

15



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



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


17



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



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


19



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


20



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%


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


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: 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



22

In 6 months
Region
Total
NET: Africa
NET: Asia
NET: Australasia
NET: Europe
NET: Middle East
NET: North America
NET: South America

23


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%


23

In 12 months
Region
Total

NET: Africa
NET: Asia
NET: Australasia
NET: Europe
NET: Middle East
NET: North America
NET: South America

24


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


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%


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%



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


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


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


NET: Australasia

NET: North
America

4%

4%

3%

NET: Middle
East

NET: Africa

NET: South
America

NET: Central
America


27

Current travel

Current travel
28



28

Future travel

In 2 years’ time
29



29

The dream

Dream holiday
30



30

Reality vs. the dream

Current travel
Dream holiday
31



31

Trip barometer september 2013 the global traveller economy

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