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Dollars and Sense Web Report

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As the market leader in youth travel, Contiki has its finger firmly on the pulse of young Australians’ wants, needs, desires and dreams. Dollars & Sense, the fourth in Contiki’s annual research series, provides the most comprehensive guide to today’s 18 to 35 year old globetrotters.

Text of Dollars and Sense Web Report

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    Theres no doubt about it. Money talks but are young Australians listening? Or do they have their ears cocked to the cool island breeze of Greece, the highlife and high fashion of France or the rustlings of the rice paddies in South East Asia? Forget the material world, todays young Aussies are living in a world where money isnt the root of all evil, its just a means to travel.

    As the worlds leading travel company for 18 to 35 year olds, Contiki has long been investing in the youth market, commissioning a series of annual research reports that delve deep into young Australians needs and wants.

    Our first report revealed the emergence of the iTraveller; clued-in explorers seeking out authentic experiences rather than simply sightseeing. Next up was Shades of Green, where we closely followed their carbon-conscious footsteps.

    Last years report, The Skilled Set, revealed a trend towards young Australians collecting job skills while jetsetting. So, with travel turning young Australians into headhunted hot property, this year we decided to delve into what they are doing with all their hard earned coin in our fourth annual report: Dollars & Sense.

    What we discovered was an incredibly savings savvy era of 18 to 35s; a generation who have learnt that while dollars can depreciate, the value of a vacation is priceless. Forget big houses, fast cars and flashy gadgets, travel is their number one aspiration, and is turning young Aussies into amateur accountants: scrimping, saving and doing whatever it takes to get them to the tarmac.

    Cash registers all over the nation are ringing to the tune of these travellers taking off around the globe and theyre definitely digging deep, with the average young Aussie depositing almost 10 per cent of their pay packets to the cause.

    To raise the dollars for their dreams, young Aussies are using a number of different methods to bring home the bacon for their piggy banks including laying off lifes little luxuries, working extra hours in existing employment, borrowing from a bank (for some, the Bank of Mum and Dad), taking a second job or making money from selling their material possessions.

    So, is it a case of save hard then pay hard? Well it seems that while away, there are some things that make young Aussies pinch their pennies, while on other aspects theyll happily splash their cash. Proving that they will gladly give up their money for memories, top of their spending lists is seeing the sights followed by tucking into local cuisine and experiences (from rocking out at festivals to seeing a city by bicycle).

    At Contiki, we understand todays youth are trading asset appreciation in for world appreciation. Our tours offer the perfect mix of sightseeing, free time, culture, fun and adventure, ensuring 18 to 35s get the best exchange rate on their life experiences, whatever their bank balance.

    For a full account of the figures, read on...

    Nicole Moy

    introduction

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    1. overview executive summary 07 research methodology 08 research snapshot 09 young australian snapshot 11

    2. money & travel how they save 14 what they spend 16 how they budget 18

    what they spend on 20 gender comparison 22 what does it all mean 24

    3. traveller profile types of travel 28 frequency/style of travel 30 whats important to travellers 32

    4. global trends where have they been 36 where they want to go: europe 38

    where they want to go: asia 40 where they want to go: nz 42 where they want to go: usa 44

    5. about contiki past, present and the road ahead 48 contiki timeline 50

    6. appendixthe questions we asked 54

    contents

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    v vro Wie ea snapshot of the results

    overview

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    7overview

    executive summaryTheyve grown up being bombarded with the message that they can want, and have, it all, so its no surprise Aussies aged 18 to 35 have aspiration lists as long as their arm. From hot property to hot wheels, and travel tickets to big ticket items, theyve got their sights set. And when it comes to travel, their savings are set too.

    Overall, 2.7 million young Australians are intending to head abroad in the next three to four years, with three in five (1.6 million) actively putting aside their pennies for it. At Contiki, we understand the hard yards young Australians are putting in to make their travel dreams a reality and so, weve conducted an in-depth study into the savings, spending and budgeting habits of over 500 young Australians in relation to travel.

    The key revelation from this research, Dollars & Sense, is that almost all young Aussies are adopting at least one savings strategy to get them where they want to go, including saving gradually without giving up any luxuries (47%), scrimping on luxuries (45%), working extra hours in an existing job (39%) or selling their possessions to raise the cash (16%), to name just a few.

    The research revealed that how they manage their money is as important as the means it took to raise it. When allocating their funds to travel, over half of young travellers (56%) prefer to pay for as much as possible before theyve packed while the minority (9%) prefer to put off most payments until theyve departed. This leaves 35% who opt to pay for a little now and a little later.

    Also up for financial analysis is the budgeting tools and tactics they are employing whilst exploring, ranging from whether they prefer to spend wisely to maximise their experiences (77%), travel around on a very tight budget (6%) or spend freely and worry about it when home (17%).

    The research also looks at how often theyre going overseas, the style of sojourns theyre taking, plus where theyve been and where theyre headed next.

    As the market leader in youth travel, Contiki has its finger firmly on the pulse of young Australians wants, needs, desires and dreams. Dollars & Sense, the fourth in Contikis annual research series, provides the most comprehensive guide to todays 18 to 35 year old globetrotters.

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  • research methodologyThis research was commissioned by Contiki Holidays and conducted by Lonergan Research.

    The study comprised of 543 respondents aged 18 to 34 years who have aspirations for travel in the next three to four years. Participants were either single or double income adults with no kids.

    The survey was conducted online through a permission based panel. The sample was stratified by age, sex and area and, following the completion of field work, was weighted by age, sex and

    area to reflect the latest ABS (Australian Bureau of Statistics) population estimates.

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    overview

    research snapshot Overseas and domestic travel are the top two aspirations for Australians aged 18 to 35 Of the 2.7 million young Aussies hoping to head abroad in the next three to four years, 58% (1.6 million) are

    saving for it

    2.3 million young Australians are looking to stay close to home and explore domestically in the next three to four years, with 33% (770,000) putting aside savings for it

    Young Aussies have previously forged their travel funds by using a number of different savings approaches including: saving gradually without giving up any luxuries (47%), scrimping on luxuries to save (45%), dipping into existing savings (45%), working extra hours in an existing job (39%), taking on a second job (16%) or moving back in with their parents (10%)

    On average, Australians aged 18 to 35 spent $4,439 per person on travel in the last 12 months Over the next year, young Aussies estimate their annual personal travel expenditure will grow to around $4,950 When it comes to payment plans for travel, 56% p