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TripAdvisor's second biannual TripBarometer report presents key trends and insights into the global travel economy. The survey is based on findings from over 30,000 traveler and accommodation business owner respondents from all over the world.
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© 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.
Intelligent Engagement 2
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
Intelligent Engagement 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:
© Copyright 2013 Daniel J Edelman Inc.5
Intelligent Engagement 5
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
© Copyright 2013 Daniel J Edelman Inc.6
Intelligent Engagement 6
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
© Copyright 2013 Daniel J Edelman Inc.7
Intelligent Engagement 7
•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
© Copyright 2013 Daniel J Edelman Inc.8
Intelligent Engagement 8
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
© Copyright 2013 Daniel J Edelman Inc.9
Intelligent Engagement 9
Q14 Base: All Respondents
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
© Copyright 2013 Daniel J Edelman Inc.10
Intelligent Engagement 10
Q14 Base: All Respondents
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
Yes, I will pay or paid for part of it on credit
Yes, I will pay or paid for it all on credit
© Copyright 2013 Daniel J Edelman Inc.11
Intelligent Engagement 11
Q14 Base: All Respondents
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
Yes, I will pay or paid for part of it on credit
Yes, I will pay or paid for it all on credit
© Copyright 2013 Daniel J Edelman Inc.12
Intelligent Engagement 12
Q14 Base: All Respondents
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
Yes, I will pay or paid for part of it on credit
Yes, I will pay or paid for it all on credit
© Copyright 2013 Daniel J Edelman Inc.13
Intelligent Engagement 13
Q14 Base: All Respondents
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
Yes, I will pay or paid for part of it on credit
Yes, I will pay or paid for it all on credit
© Copyright 2013 Daniel J Edelman Inc.14
Intelligent Engagement 14
Q14 Base: All Respondents
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
Yes, I will pay or paid for part of it on credit
Yes, I will pay or paid for it all on credit
© Copyright 2013 Daniel J Edelman Inc.15
Intelligent Engagement 15
Q14 Base: All Respondents
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
© Copyright 2013 Daniel J Edelman Inc.16
Intelligent Engagement 16
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
© Copyright 2013 Daniel J Edelman Inc.17
Intelligent Engagement 17
Q33 Base: All Respondents
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%
© Copyright 2013 Daniel J Edelman Inc.18
Intelligent Engagement 18
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
© Copyright 2013 Daniel J Edelman Inc.19
Intelligent Engagement 19
Q25 Base: All respondents
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
© Copyright 2013 Daniel J Edelman Inc.20
Intelligent Engagement 20
Increased confidence is driving investment in business
Q24 Base: All respondents
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
© Copyright 2013 Daniel J Edelman Inc.21
Intelligent Engagement 21
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
© Copyright 2013 Daniel J Edelman Inc.22
Intelligent Engagement 22
• 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
© Copyright 2013 Daniel J Edelman Inc.23
Intelligent Engagement 23
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
© Copyright 2013 Daniel J Edelman Inc.24
Intelligent Engagement 24
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: Central America 7% 1% 2% 2% 4% 6% 11% 28% 8%
NET: Europe 31% 21% 20% 18% 55% 38% 18% 23% 27%
NET: Middle East 7% 7% 8% 3% 8% 47% 2% 4% 7%
NET: North America 24% 6% 14% 10% 13% 13% 46% 32% 23%
NET: South America 8% 6% 4% 4% 3% 9% 4% 17% 42%
In 12 months
© Copyright 2013 Daniel J Edelman Inc.25
Intelligent Engagement 25
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: 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 9% 7% 7% 5% 7% 9% 6% 12% 25%
In 2 years
© Copyright 2013 Daniel J Edelman Inc.26
Intelligent Engagement 26
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
© Copyright 2013 Daniel J Edelman Inc.27
Intelligent Engagement 27
…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
© Copyright 2013 Daniel J Edelman Inc.28
Intelligent Engagement 28
Current travel
Current travel
© Copyright 2013 Daniel J Edelman Inc.29
Intelligent Engagement 29
Future travel
In 2 years’ time
© Copyright 2013 Daniel J Edelman Inc.30
Intelligent Engagement 30
The dream
Dream holiday
© Copyright 2013 Daniel J Edelman Inc.31
Intelligent Engagement 31
Reality vs. the dream
Current travel
Dream holiday