Visa Travel Magazine

7/30/2019 Visa Travel Magazine

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Global TravelIntentions Study 2013


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Te Visa Global ravel Intentions Survey 2013 was commissioned by Visa to Millward Brown.Te survey was conducted with 12,631 travellers* aged 18 years and above, across 25countries.

Countries listed under Advanced orEmerging economies is based on thelist o 35 Advanced Economies rom

IMFs World Economic Report datedOctober 2012.

Combination o web-based andace-to-ace interviews.

Respondents who ell into the incomebrackets listed in the last page o this

report were listed as Auent. Tedenition complies with the minimumincome requirements or ownership oVisa premium cards.

Denition o Advanced &Emerging Economies

Fieldwork methodology

Auent denition

Age o rst travel alls within the sameage bracket as current age.

Asia Pacic (APAC) (Australia, China,Hong Kong, India, Indonesia, Japan, Korea,Malaysia, Singapore, aiwan, Tailand)Europe (France, Germany, Russia,United Kingdom)Arica and the Middle East (Egypt, Kuwait,Morocco, Saudi Arabia, South Arica,United Arab Emirates)

Te Americas (Brazil, Canada, Mexico,United States)

Denition o New travellers

Regional denition(surveyed countries include)

2 Visa Global Travel Intentions Study 2013


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ForewordTe impact o travel and tourism on economic growth is signicant. Te industryis orecast to grow at an average o our percent annually over the next 10 yearsand in 2012 alone, it contributed to nine percent o global GDP. 2012 was also alandmark year or international tourism as the number o international trips taken inone year surpassed the one billion mark or the rst time. Tis all presents excitingopportunities or players in one o the worlds largest industries.

At Visa, we recognize the enormous potential o this industry to promote economicgrowth in developed and emerging economies alike. ourism provides a gateway toeconomic progress by helping grow revenue, promote job creation, and accelerate

inrastructure development. And, thanks to the increased acceptance o reliable andsecure electronic payments, every traveler who uses a card to pay or buys good andservices online is now exponentially contributing to growth.

So how should we seek to maximize growth potential rom travel and tourism? Andhow should governments think about building strategies which optimize inboundtourism spend?

Elizabeth Buse, Group President,Asia Pacifc, Central Europe, Middle

East and Arica, at Visa Inc.

1Current and uturetravel trends

I hope this years study will help you gain a better understanding o:

3 Habits o the auenttraveller

5Te impact otechnology on travel

2 Te prole o todaystypical traveller

4 Te diferent choices madeby rst time travellers

6 ravel payment methodsand patterns

Data helps and that is the subject o this report. Te Visa Global ravel Intentions Study has been regularlyupdated and published since 2006 and aims at analyzing tourism spend across multiple countries or the beneto industry players, including governments. Understanding how, where and why cross-border spend takes placeis as important as ever. I hope the ndings in this years study will prove as useul as they have in previous yearsin encouraging discussion, promoting cross-sector engagement and ultimately ensuring the industry continues itshigh level o growth.

3Visa Global Travel Intentions Study 2013


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Despite the climate o continued economic

uncertainty and a relatively weak global economy,

it is expected that leisure travel will continue to

grow in 2013 with increasingly positive sentiments

regarding intended uture travel.

Te emerging economies look likely to uel this

growth, particularly rom giants such as Saudi Arabia,

China, Brazil and Egypt. While much o the population

rom these markets have yet to experience their rst

holiday, the intention to travel is high.

Travel continues to flourish,

fuelled by travellers from

emerging markets

Outlook or travel is optimistic: travel and budgets are setto increase

op 3 reasons ordestination choice

Last rip Future

With this comes an increased willingness to spend as

budget is now less o a concern in destination choice

than it has been in the past.

Good weather Attractions

Good sceneryFit my budget

Rich culture Rich culture

34% 31%

31%31%

29% 30%

I am going to travel more in the uture

Global5.3

SaudiArabia6.1

China

6Brazil5.9

Egypt5.9



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Strong growth in spend

op 5 spenders

Bottom 5 spenders

odays typical traveller spent an averageo US$2,390 on their last trip. Tis spend isexpected to grow by 5% to US$2,501 or theirnext trip.

While Australian travellers are among the topspenders on the global stage, travel budgets othose rom the emerging markets are also highwith two o the top three spenders hailing romthe emerging markets, namely Saudi Arabia(US$6,666) and China (US$3,824).

Current Future

$2390 $2501Unit: Median

Base: (12072)

Unit: Median

Base: (9317)

Saudi Arabia

(484)$6666

-17%

25%

Last trip:

Last trip:

Future spend% change:

Future spend

% change:

Australia

(450)$4118

9%

31%

China

(422)$3824

18%

94%

Brazil

(309)$2956

52%

93%

South Africa

(214)$2888

-13%

92%

Indonesia

(339)$1198

Malaysia

(366)$1145

Hong Kong

(446)$1290

UK

(406)$1297

Tailand

(366)$1304

Te biggest growth in budgets is expected to comerom the current low-spending travellers rom HongKong, UK, and Tailand, with projected increases obetween 92% to 94%.

Did you know?



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Number o trips taken in the past 2 years

Most visited destinations in 2012

Te USA is still the top destination choice but most trips aretaken regionally

Most visited destinations in 2011

odays typical travellers took an average o three leisure trips inthe past two years.

ravellers rom advanced economies are particularly welltravelled, with Europeans travelling at least one trip a year.

When it comes to choosing a destination, the USA remained the most popular choice among travellers worldwide,ollowed by the UK and France. However, the popularity o Asian countries is on the rise - China, Hong Kong,Singapore and Tailand also proving to be popular destinations.

17%

18%

12%

13%

12%

13%

10%

12%

10%

12%

10% 10%

USA

USA

UK

China

France

UK

China

Hong Kong

Hong Kong

Tailand

Singapore Tailand

America top choice, but regional

travel dominates

Singaporeans love to travel,taking up to ve trips in the pasttwo years.

Did you know?



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op 3 destinations by travellers rom each region in thepast two years

Despite this, globally, the most common destination choices were still regional, especially or travellers rom APACand Europe.

27%

21%

38%

17%

19%

20%

16%

16%

17%

20%

14%

12%

Spain

China

USA

Egypt

Italy

Singapore

UK

urkey

USA

Base: (1784)

Base: (4292)

Base: (1650)

Base: (2283)

Hong Kong

France

France

ravellers rom Europe

ravellers rom Asia Pacic

ravellers rom Americas

ravellers rom Arica and the Middle East



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ravellers aroundthe world eeldierently aboutexploring horizonsbeyond theirhome continent

op uturedestinationsglobally

Intended uture travel destinations

dier amongst travellers romdierent regions.

ravellers rom Asia Pacic andthe USA are more likely to ventureoutside their continents, whilethose rom Europe and Arica andthe Middle East preer to take tripswithin them.

Intend to travel in the next 1 year*

2012 op 10 likely destintations

11%10%

7%9%

7% 7%

Japan SpainUSA USAAustralia

Base: (5241)

Base: (12631)

Base: (1926)

Italy

Asia Pacic

USA 10% Japan 5% UK 5%

Europe

24%14%19% 19%

6%

USA SpainUK FranceEgypt

Base: (1883) Base: (2664)

Italy UAE UK

Americas Arica and the Middle East

The dream to explore

uncharted horizons

Seasoned travellers rom Europe as well asauent travellers show more interest in exploringthe new horizons o East Arica, whilst rst timetravellers and those rom emerging economiesneed some more time to warm up to the idea.

Did you know?



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Te allure o East AricaTe uncharted territories o East Arica are increasingly drawing the attention o uture travellers. Despite saetyand health issues, which were cited as top concerns or the region, the attraction o saaris, ecotourism and a richcultural experience are key magnets or tourists.

op 3 concerns with visiting Kenya,Rwanda and anzania

Kenya Rwanda anzania

Saety reasons

Never considered it

Health concerns

47% 49% 43%

36% 39% 39%

32% 28% 26%Base: (9721) Base: (11514) Base: (10457)

op 3 activities respondents will consider in Kenya,Rwanda and anzania

Kenya Rwanda anzania

Saari

Ecotourism andculture tours

Animal trekking

66% 40% 51%

52% 46% 47%

52% 38% 42%Base: (9721) Base: (11514) Base: (10457)



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How travel patterns differ

across regions

Who they travel with diers across regions

Although independent booking dominates,

travel agents are still valued

ravel with ravel by Stay or Stay at

Where people go, how long they stay, and who they travel with dierswidely across the globe.

While 70% o travellers book their trips independently, the need or travelagents still exists, particularly in emerging markets where people are morewilling to pay or a third party agent to plan their trips.

People dont like to travel alone, with 80 percent o respondents choosing totravel with amily members or riends. First-timers are particularly likely totravel with their riends.

Air travel is by ar the most common transportation used when making a

trip. Budget airlines are the second most popular class ater economy.

Most journeys take less than our hours. People rom the USA and Australiaare the most likely to travel long-haul, whilst those travelling rom APACare more likely to travel short-haul. First-timers are also more likely to takeshort-haul trips.

When taking these trips, luxury hotels o our stars and above are thepreerred accommodation or most travellers.

10days APAC tourists tend to make useo long weekends to take city-breaks around their regions.Many tend to take organisedtours, especially those travellingrom India, Korea and aiwan.Tey also preer shorter breaks.

Europeans like to indulgethemselves when it comes toholidays, usually staying at leasttwo weeks.

ravellers rom Arica and theMiddle East like to travel urtherand longer o at least two weeks.Tey are more willing to pay orpersonalised tours

Global APAC AME Europe

Average number onights at destination 10 7 15 11

Packaged or Guidedtours 30% 35% 29% 25%

Wont mind payingmore or someone

to arrange myholidays

38% 36% 55% 29%



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At the same time, the demand or travel agents is likely to go up as travellersstart venturing into destinations in the developing world such as Egypt,urkey and Saudi Arabia. Visits to these Middle Eastern countries are likelyto be done through organised tours rather than independent tours.

Packaged our

Personal Guided our

Free & Easy

Free & Independent

10

33

33

35

1916

29

4837

18

2824

6

628

28

Any Middle East Egypt urkey Saudi Arabia

ravel arrangements or last trip

Destination

Europeans like driving on holiday. 24 percent haveactually travelled to their last holiday destinationby car.

Did you know?



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Te sources that travellers rely on to help themthroughout the trip dier at each stage. In thisdigital age, the reliance on online resources is

obviously high although it is interesting to notethat the role o technology is most prevalentwhen planning a holiday while, at the destination,travellers are more reliant on ace-to-ace help.

ravel is not an impulsive decision or most travellers. Te study reveals that globally travellers take an averageo 11 days to plan a trip, with the distance to their destination determining the time spent planning. ravellers romAsia spend comparatively less time planning, a likely result o their preerence or quick getaways over long trips.

Technology influences every part

of a trip, especially at the booking

stage.

ravellers rom APAC and Arica and the Middle Eastare most reliant on traditional sources when planningand booking. Although online sources are popular inAPAC, traditional guidebooks and magazines still hold

inuence. Te opinion o riends and relatives has aparticularly high sway on the destination choices opeople in Arica and the Middle East, where bookingonline is oten seen as complex.

Did you know?



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Planning and booking stage

op home grownwebsites

op 3 websites

Searching or travel reviews, cheapights and accommodation online is apopular way to gain inormation aboutthe destination. Most independenttravellers purchase their ights and

accommodation directly rom serviceprovider websites because they seeonline booking as a time saver.

Te ability o a website to provide clearprice comparisons and travel reviews iskey to driving trafc to the site.

PlanningBooking

During

Independent PackagedDigital

InormationSources

71% 65% 36% 57%

raditionalInormation

Sources61% 45% 64% 61%

28% ripadvisor 12% Expedia 30% Facebook

21% Expedia 11% ripadvisor 20% Google+

20% Hotels.com 10% Booking.com 19% ripadvisor

Planning Booking

Inormation Sources or ravel

During

China | Ctrip.com

Brazil | Decolar.com

India | Makemytrip.com

Japan | Rakuten ravel

Mexico | Aeromxico

Russia | ravel.ru

Big travel brands such as ripAdvisor, Expedia, and Hotels.com, are widely used although travellers rom emergingmarket such as China, Brazil, and India show a preerence or home grown sites.



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While travellers refer to

traditional sources during the trip,

they like to stay connected digitallyDuring the trip

Ater the trip

Once travellers reach their holiday destination, the Internet still plays a role but it becomes less important as manytravellers turn to traditional resources such as guidebooks and local agents or inormation.

Upon return, more than a third o travellers post their holiday snapshots online. European travellers are lessengaged, but do still share their experiences via private emails.

Emerging market travellers on the other hand love to share, with 79% choosing to upload posts about theirexperiences on their return. For the APAC travellers, sharing via status updates on social media is as popular assharing via email.

Despite this, todays travellers want to stay connected to the digital world even when aboard. Te majority do notleave home without bringing at least some electronic gadgets, in particular smart phones and laptops.

Updating social media accounts, posting pictures, instant messaging and sending emails are all popular waysor travellers to share their experience when they are on the road. Internet connectivity is the main reason theychoose the devices that they take along with them on their trips.

Phones Computers

Entertainment

Cameras

DSLR Video recorderBase: (10009)

Compact

Music Player

Gaming Device

Ebook Reader

FM Radio

PC/Laptop

ablet NetbookSmartphones

80% 54%

32%

70%

26% 13%

49%

22%

8%

7%

4%

32%

26% 10%65%

Online behaviour o travellers diers across regions. Europeans preer to detachthemselves rom daily lie when travelling, while those rom APAC and Arica and theMiddle East stay more connected online throughout their trip.

Did you know?

What gadgets do travellers bring with them on their trips?



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Casual / amily dining/ smalllocal restaurants

travellers are making increasingly

sophisticated payment choices

With the growing availability o payment options, cash is no longer the only method o making cross bordertransactions. O all the payment card options available, credit cards are the most widely used and their popularityis likely to continue to grow in the uture.

Asia Pacic and the USA have the highest credit card penetration while in Europe, debit cards are used as heavilyas credit cards. Penetration o credit cards is not as high in countries in the Arica and Middle East region.

Preerence o payment methodsdier throughout each stage o a trip.While cards are most widely used orbooking trips, cash remains the topchoice at the destination.

Having reached the destination,travellers mainly spend their budgeton retail, dining and tourism activities.Te majority o these activities arepaid or by cash, with only high-value

ticket items such as high-end diningbeing transacted with cards.

Beore travel During travel

Cards Only Cards Only

Cards & Cash Cards & Cash

Cash Only Cash Only

41% 58%

$2390Spend

62% 2%

9% 78%

17% 20%

Cards

Cards

Cards

Cards

Accommodation

Airare

Local ransport

Retail

Dining

Activities

Medium /Large Retailers Entertainment and nightlie

Small Retailers

High end restaurants

Entry ee or tourist attractions

Fast ood restaurants

Beauty and wellnesstreatments / spa services

9%

5%

7%

30%

24%

21%

17%

12%

7%

13%

7%

6%

6%

2%

Breakdown o spend at destination

While the card ownership in Arica &the Middle East countries is not ashigh, they nd using cards modernand thus aspirational.

Did you know?



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We will be able to pay or transactions overseas withour mobile in uture

Contactless Payment makes travel much more convenient

Global

4.9Advanced Economies

4.7

Advanced Economies

4.7

Global

travellers are making increasingly

sophisticated payment choices

Visa to stay at the oreront o mobile and contactless payment

Respondents say...

Mobile and contactless payments are receiving increasingly positive eedback rom travellers around the world,particularly rom the emerging economies. Visa is committed to bring this advanced mode o payment to travellersaround the world.

Emerging Economies

5.1

Emerging Economies

5.2

5.0



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Seeking comort in established destinations

Number o trips travelled

op 3 reasons or destination choices

op 3 travel destinations

Te role o travel agents ravel arrangement

Past 2 years Future (Next 1 year)

ravel is a amily aair or auent travellers.Tey travel more and usually choose establishedcountries that oer class, culture, sights and goodweather. Comort is a must, with a majority yingon rst or business class and accommodationbooked in luxury hotels with 4 stars and above.

10-15 hour ights are common or theauent rom emerging economies, wholike to visit ar ung destinations. Teychoose to visit established countriessuch as Hong Kong, Singapore, Japan,USA, Europe and Australia.

Te worlds auent are voracioustravellers and big spenders. Budget isless o a concern or the auent whospend an average o USD $3,465 pertrip, a gure which is likely to increase toUSD $4,501 when taking trips in thenear uture.

Most wealthy travellers (70%) choose to go onindependent tours, but are willing to pay more orsomeone to arrange their holidays or them.

Packaged tours are more popular among auentAsian travellers, driven by aiwanese, Indians andKoreans. Indians and Koreans also have a preerenceor personal tour guides.

Habits of the affluent traveller

Global Auent

24%

10%19%6%

19%5%

USA USAUK UKFrance Australia

Goodweather

Goodattractions

Richculture

35% 31%31%

Global aiwan India Korea

Packaged orguided tours 30% 29% 25% 35%

Personalguided tours 11% 15% 11% 7%



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Te auent in Asia, like to goto Europe or their holiday, nomatter which country they hail

rom.

Did you know?



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Habits of the affluent traveller

Digital plays a big role

Cards provide peace o mind

Digital is used more at the planning and booking stages, while at the destination, auent travellers start relyingmore on traditional sources such as guidebooks or magazines.

With higher disposable incomes, it is no surprise that card ownership amongst the wealthy travellers is high with85% owning credit cards and 50% holding an international debit card.

Many take their cards with them on their trip, and are more likely than the typical travellers to use them beore and

during their travels.

Visa is still the most popular card brand amongst the wealthy. What thisgroup seeks is better rates and easy replacement in the case o a lostcard. Merchants that accept card payments have much to gain, as themajority o auent travellers (78%) spend with credit cards.

Planning and booking o the trip: Service providers, travel reviews and ofcial tourism sites are widely reerred tosources or the auent at the planning stage. When they book, they tend to reer to service providers as well as

travel aggregator websites.

During the trip: Te auent are ahead o the technological curve, taking with them higher-end gadgets, as well asadditional liestyle devices such as tablets and e-book readers.

Beore travel During travel

Cards Only

Auent AuentGlobal Global

Cards Only

Cash and Cards

Cash Only

Cash and Cards

Cash Only

40% 60%

$3465

Spend68% 62% 2%3%

9%10%

17%11%

87% 78%

10% 20%

Cards Car

ds

Cards Car

ds



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New travellers All travellers

APAC 57% 42%

Age 22 years old 37 years old

Not Auent 88% 79%

A preerence or sae andsecure destinations rst

Budget infuences their trip

The different choices made by

first-time travellers

Te rise o emerging economies and their middle classes means that there will be many new travellers embarkingon their rst trip over the next ew years. While current spending is low at US$ 1,708, the average budget o a newtraveller is likely to increase to US$ 2,501. As such, understanding this group is key to understanding upcomingtravel trends.

Many rst-time travellers will come rom APAC countriesand most are in their 20s or 30s.

Te USA is the most popular destination orthis segment. However, rst-time travellersalso choose regional destinations that theyperceive as sae and secure, such as Singaporeand Japan. New travellers seek culture andattractions as much as seasoned travellers,aspiring to visit destinations with cultural cachesuch as Japan and Korea.

Budget plays a key role in destination choice orthis group and many are more likely to take ashorter trip o up to our days. First-timers aremore likely to settle or bed and breakasts (B&Bs),and tend to travel economy class on airlines. Teyare more inclined than other groups to travel withtheir riends and colleagues.

op destinations among new

travellers

4 Days

Friends

Past 2 years

Future (Next 1 year)

14%

9%

10%

7%

10%

6%

USA

USA

Singapore

Japan

Japan

South Korea

Hostel / B&B

Economy class

Base: (901)

Base: (1034)



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The different choices made

by first-time travellers

Te use o technology in planning

Te majority o rst-timers preer independently-organised trips but there is slightly more reliance onplanned tours, likely due to their limited experience intrip planning.

Digital sources are highly relied on during the planningstage o the trip. At the same time, it is interestingto note that traditional sources are also heavily usedincluding travel agents and travel guide books.

First timers are generally more excited about their trips and thereore are more likely to share their experienceonline when they return.


Shared experience online 79% 71%

Posted photos online (e.g. Facebook / witter / Instagram) 42% 38%


Packaged / Guided 36% 30%

Independent 64% 70%

ravelArrangements New travellers All travellers

Digital 69% 71%

raditional 66% 61%

PlanningInormation Sources

Ater the trip



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Despite lower card ownershipwhen travelling, more than hal orst-time travellers are likely topay by cards in the next trip.

Newtravellers

Alltravellers

Cards 30% 40%

Cash 64% 56%

Card Usage (Future)

CreditCard

Newtravellers

ChargeCard

Any DebitCard

InternationalDebit

Prepaidravel Card

During 11%

79%

42%

42%

11%Base: (790)

Fewer rst-time travellers own credit cards and are more reliant oncash. While cards are still the main mode o payment when booking thetrip, most new travellers are still using cash when making purchasesat the destination. In act, only 30% o their spending is conducted

with cards when travelling.

Alltravellers

84%

40%

40%

9%

11%

Base: (10348)

Newtravellers

Alltravellers

Cardsonly

47% 62%

Cardsand cash

10% 9%

Cashonly

26% 17%

Booking

Newtravellers

Alltravellers

Creditcards

59% 73%

Ownership

Cards are preerred



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AsiaPacifc

Europe

Aricaandthe

MiddleEast

Americas

Affluent definition

(Source countries)*ravelled in the past 2 years OR intend totravel in the next 1 year



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NOICE OF DISCLAIMERCase studies, statistics, research and recommendations are provided AS IS and intended or inormationalpurposes only and should not be relied upon or operational, marketing, legal, technical, tax, nancial or otheradvice. When implementing any new strategy or practice, you should consult with your legal counsel to determinewhat laws and regulations may apply to your specic circumstances. Visa is not responsible or your use othe inormation contained herein (including errors, omissions, inaccuracy or non-timeliness o any kind) or anyassumptions or conclusions you might draw rom its use.



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