The Connected Visitor Economy Bulleti n - PATA€¦ · TripBarometer | 2016 Travel Trends Ipsos...

Visitor Economy Bulleti n 1

Six Key Travel Trends for 2016

The Connected Visitor EconomyBulleti n

As we kick off 2016, travel industry professionals are focused on the need to understand the likely trends and patt erns for the year ahead and how best to capitalise upon them.

How much are people spending on travel this year? How are they deciding where they want to go and which accommodati on opti on is right for them? How are travellers’ choices impacti ng the hospitality industry?

Our latest TripBarometer study, conducted by independent research fi rm Ipsos, off ers answers to these questi ons and outlines key trends that will shape the travel landscape in 2016.

T�� #1 - S�� E��

January 2016

In the coming year travellers of all ages will seek out things they haven’t tried before, from cruises to solo travel. Globally, 69 percent of travellers plan to try something new in 2016. One in fi ve will go on a cruise, 17 percent will try solo travel and 15 percent will try adventure travel for the fi rst ti me in 2016.

Asian travellers are even more likely to expand their travel horizons in 2016, with 76 percent saying they plan to try something new this year. One in four Asian travellers will travel solo for the fi rst ti me, one in fi ve will opt for a cruise (21%) or try their hand at adventure travel (20%).

Indonesian travellers are the biggest thrill-seekers with 30 percent planning to try adventure travel in 2016, followed by Indian and Thai travellers (29%).

Visitor Economy Bulleti n2

T�� #2 - S�� ’� “�� ”

Worldwide, travellers are open to spending more this year than they have in the past. One in three travellers are planning to increase their travel budget in 2016 and, contrary to what some may think, it’s not just because of rising costs.

Travel budgets will increase mainly due to an overall sense of merit and because travellers believe that a holiday delivers health benefi ts. Forty nine percent of those planning to spend more say they will do so because they or their family members deserve it. Thirty one percent will increase their travel budgets because they feel it is important for their health and wellbeing.

Australians will be the biggest spenders in 2016, planning an average travel budget of over US$10,800 for the year, compared to the global average spend of US$5,100. Following Australians in the rankings are the Swiss (US$10,100) and the Americans (US$8,400).

Asian travellers are more conservati ve by comparison. Japan tops the rankings for planned travel budgets amongst Asian markets with an average planned travel spend of US$600, followed by China (US$3,600), India (US$3,100), Thailand (US$2,200), Malaysia (US$2,100) and Indonesia (US$1,400).

T�� #3 - C��

Today’s travellers choose desti nati ons for a number of reasons and they vary across nati onaliti es. Value for money and package opti ons are consistently infl uenti al, with one in two travellers selecti ng a desti nati on based on a special off er of some kind. Globally, 47 percent of travellers say they have visited a desti nati on because of the culture and people of the specifi c country, and one in fi ve (21%) have chosen a desti nati on purely based on a hotel’s special off er or package off ering.

Australians and conti nental Europeans are the most likely to be infl uenced by culture and society while Americans, Briti sh, Irish and Brazilian travellers are heavily infl uenced by recommendati ons from friends and family. In Asia with its multi tude of low cost carrier opti ons, one in four travellers (25%) say they have chosen to visit a desti nati on because of a cheap fl ight. The three markets most likely to do this are Malaysia (39%), Indonesia (36%) and China (23%).

I/my family deserve it

Going somewhere on my wish list

I’m planning more long trips

I have been saving up

I feel it’s important for my health and wellbeing

I’m planning a longer trip

Prices have gone up

Where I want to go is expensive

Planning long haul destinations

I’m planning more short trips

‘TV tourism’ is also on the rise, with one in fi ve travellers globally saying they have visited a desti nati on because they had seen it on a TV show. Travellers from Asia are especially inspired by what they watch on the small screen with signifi cant numbers of Indonesians (34%), Japanese (33%) and Thai (30%) travellers choosing to visit a desti nati on they had seen in a TV show.

Hotels off ering a great deal will be parti cularly att racti ve to travellers from Ireland, Canada, Britain, the US and Portugal. These are groups that are infl uenced greatly by special off ers and accommodati on packages.


Baby Boomers

Generation X

Millennials

Generational Travel HabitsTripBarometer | 2016 Travel Trends

Ipsos MORI survey conducted on behalf of TripAdvisorMethodology: The research was conducted in 32 markets via an online banner and pop-up link on TripAdvisor’s local websites as well as an email invitation sent to TripAdvisor members.Data based on results from online surveys of 34,026 TripAdvisor travelers and 10,756 TripAdvisor business owners collected between 14th – 29th October 2015.

For more information, please visitwww.tripadvisor.com/tripbarometer

31%TV show

25%Cheap flight

Reason for choosing destination

New travel activities in 2016

Deal-breakers for choosing accommodation

Essential travel items

Reasons to spend more

31%Prices have gone up

31%Extra suitcase

87%Smartphone

Key factors in choosing accommodation

$2,400Average travel budget for 2016

37%Kettle, tea bags,co�ee

29%Solo travel

29%Adventuretravel

46%Avios points

56%Eco friendly

50%Loyalty programme

29%TV show


22%To do an activity that wasn’tpossible elsewhere

45%Avios points

71%Eco friendly


33%Safe-depositbox


20%Solo travel

15%Adventuretravel

24%Currencyexchangefluctuations







29%Saving up for it

16%Own towel

77%Smartphone


69%Camera

15%Solo travel








55%Eco friendly

41%Avios points

18%Group travel


23%Super-fast wifi

31%TV show

25%Cheap flight

APAC

Baby Boomers

Generation X

Millennials




31%TV show

25%Cheap flight







31%Extra suitcase

87%Smartphone




29%Solo travel

29%Adventuretravel

46%Avios points

56%Eco friendly


29%TV show



45%Avios points

71%Eco friendly


33%Safe-depositbox


20%Solo travel

15%Adventuretravel








29%Saving up for it

16%Own towel

77%Smartphone


69%Camera

15%Solo travel








55%Eco friendly

41%Avios points

18%Group travel


23%Super-fast wifi

31%TV show

25%Cheap flight

APAC

Baby Boomers

Generation X

(18-34 years old)Millennials




31%TV show

25%Cheap flight







31%Extra suitcase

87%Smartphone




29%Solo travel

29%Adventuretravel

46%Avios points

56%Eco friendly


29%TV show



45%Avios points

71%Eco friendly


33%Safe-depositbox


20%Solo travel

15%Adventuretravel








29%Saving up for it

16%Own towel

77%Smartphone


69%Camera

15%Solo travel








55%Eco friendly

41%Avios points

18%Group travel


23%Super-fast wifi

31%TV show

25%Cheap flight

APAC

Baby Boomers

Generation X

Millennials




31%TV show

25%Cheap flight


25%Cheap flight

%Cheap flight






31%Extra suitcase

87%Smartphone




29%Solo travel

29%Adventuretravel

46%Avios points

56%Eco friendly


29%TV show



45%Avios points

71%Eco friendly


33%Safe-depositbox


20%Solo travel

15%Adventuretravel








29%Saving up for it

16%Own towel

77%Smartphone


69%Camera

15%Solo travel








55%Eco friendly

41%Avios points

18%Group travel


23%Super-fast wifi

31%TV show

25%Cheap flight

APAC

Baby Boomers

(35-64 years old)Generation X

Millennials




31%TV show

25%Cheap flight







31%Extra suitcase

87%Smartphone




29%Solo travel

29%Adventuretravel

46%Avios points

56%Eco friendly


29%TV show



45%Avios points

71%Eco friendly


33%Safe-depositbox


20%Solo travel

15%Adventuretravel








29%Saving up for it

16%Own towel

77%Smartphone


69%Camera

15%Solo travel








55%Eco friendly

41%Avios points

18%Group travel


23%Super-fast wifi

31%TV show

25%Cheap flight

APAC

Baby Boomers

Generation X

Millennials




31%TV show

25%Cheap flight







31%Extra suitcase

87%Smartphone




29%Solo travel

29%Adventuretravel

46%Avios points

56%Eco friendly


29%TV show



45%Avios points

71%Eco friendly


33%Safe-depositbox


20%Solo travel

15%Adventuretravel


%To do an activity that wasn’tpossible elsewhereTo do an activity that wasn’tpossible elsewhereTo do an activity that wasn’t








29%Saving up for it

16%Own towel

77%Smartphone


69%Camera

15%Solo travel








55%Eco friendly

41%Avios points

18%Group travel


23%Super-fast wifi

31%TV show

25%Cheap flight

APAC

(65+ years old)Baby Boomers

Generation X

Millennials




31%TV show

25%Cheap flight







31%Extra suitcase

87%Smartphone




29%Solo travel

29%Adventuretravel

46%Avios points

56%Eco friendly


29%TV show



45%Avios points

71%Eco friendly


33%Safe-depositbox


20%Solo travel

15%Adventuretravel








29%Saving up for it

16%Own towel

77%Smartphone


69%Camera

15%Solo travel








55%Eco friendly

41%Avios points

18%Group travel


23%Super-fast wifi

31%TV show

25%Cheap flight

APAC

Baby Boomers

Generation X

Millennials




31%TV show

25%Cheap flight







31%Extra suitcase

87%Smartphone




29%Solo travel

29%Adventuretravel

46%Avios points

56%Eco friendly


29%TV show



45%Avios points

71%Eco friendly


33%Safe-depositbox


20%Solo travel

15%Adventuretravel








29%Saving up for it

16%Own towel

77%Smartphone


69%Camera

15%Solo travel








55%Eco friendly

41%Avios points

18%Group travel


23%Super-fast wifi

31%TV show

25%Cheap flight

APAC


Globally, 63 percent of travellers said air conditi oning is essenti al when choosing a place to stay. That makes it more of a deal-breaker than rate-inclusive breakfast (40%) or a swimming pool (26%). Forty six percent will look elsewhere if an accommodati on does not provide free in-room WiFi. And one in four (26%) travellers consider super-fast WiFi a ‘must have’, although 11 percent are willing to pay extra for the service.

In Asia, traveller preferences vary with 60 percent of Chinese travellers saying they would look elsewhere if in-room Wi-Fi was not off ered and 39 percent saying that superfast Wi-Fi is essenti al. In contrast, 16 percent of Indian travellers would pay extra for superfast Wi-Fi and just nine percent would pay extra for in-room Wi-Fi.

Other Asian staples are rate-inclusive breakfast and the in-room kett le, with over one in three Asian travellers (36%) stati ng that they would look elsewhere if the accommodati on they are considering does not provide breakfast at the standard rate or does not have a kett le in the room. Close to one in fi ve Asian travellers (19%) will also not book a hotel that doesn’t off er a swimming pool.

T�� #5 - R�� (�� )

Nearly half of hoteliers globally (47%) plan to increase room rates in 2016 with accommodati on owners in South America the most likely to do so (56%). A majority of those surveyed (65%) are increasing rates to compensate for increased overhead costs although more than a third (37%) are increasing rates because of recently completed renovati ons or to meet increased demand (35%).

Asian hoteliers are the least likely to be upping their room rates in 2016 with just 39 percent planning to do so. Of those Asian hoteliers who will increase rates, 53 percent say it is to cover increased overhead costs and 40 percent to accommodate increased demand.

Three in four business owners globally are opti misti c about profi tability in 2016. Some 65 percent of those who are opti misti c say it’s because of local events and conferences taking place in their markets next year. Nearly two

Increase infl ight fares

The global economy

The national economy

Terrorism concerns

Changes in the number of hotels/properties in the area

Local events, congresses

Decrease infl ight fares

Changes in tourist attractions in the area

Press coverage

Changes in the number of restaurants, shops, etc. in the area

T�� #4 - S��

Never underesti mate the importance of ameniti es in a traveller’s booking decision. Air conditi oning and WiFi stand out among the ameniti es that travellers will look for when considering their accommodati on opti ons in 2016.

“ ”Ninety three percent of hoteliers globally, and 94

percent in Asia, say that online traveller reviews are important to the future of their business.

Creati ng a winning online reputati on strategy for 2016

Best Practi ces in Responding to Online Traveller Reviews

Take the fi rst step in building a positi ve reputati on by writi ng a management response. Remember some of your key strategies to make sure you are making the strongest impact:


in three (64%) business owners in Asia are opti misti c about profi tability for the year ahead, with the majority of those believing that decreasing fl ight fares (68%) will have the most impact, followed by local events and conferences taking place in their market (58%) and changes in nearby tourist att racti ons (56%).

The vast majority of hoteliers around the world (91%) see the rising numbers of direct bookings as key to the future of their business. This explains why just under half of all accommodati on owners (48%) plan to invest more in marketi ng and adverti sing in 2016 and some 47 percent will invest in traffi c acquisiti on.

T�� #6 - M��

Online presence remains essenti al to a business’s success. This year, owners will conti nue to closely monitor what people say about their business on the web.

The importance of online reviews is even more pronounced when speaking to hoteliers in Indonesia (99%) and Japan (96%). So it’s no surprise that online reputati on management is sti ll the biggest area of investment for accommodati on owners in the coming year, with 59 percent globally and 69 percent in Asia investi ng more in this area than they did in 2015.

The hospitality industry in Asia also appears to be placing focus upon customer experience in 2016 with 61 percent of businesses in the region saying that they are planning to invest in staff training - higher than the Americas (55%) and Europe (38%).

The TripBarometer results demonstrate the conti nued importance of online reputati on management, which should be top of mind for hospitality professionals. With this in mind, TripAdvisor can off er best practi ces in responding to online traveller reviews and insights which owners may then leverage to increase their property’s exposure in front of the world’s largest travel site.

Property owners can take control of their online reputati on, and make the most of their presence on TripAdvisor, by monitoring their reviews and engaging with their past and future guests. Perhaps the most important way to engage is through management responses – the ability to reply to reviews. This enables business owners to be a part of the conversati on and to share their perspecti ve for any potenti al guests reading the reviews.

Respond quickly to every kind of review

A ti mely response shows that you are att enti ve and interested in feedback, both positi ve and negati ve, and it also leaves a lasti ng impression. Furthermore the more quickly you respond, the more people will be able to read your comments .

Tone is important, whether the review is

criti cal or glowing

Just like any other customer service reply, you should always be polite and professional. If you disagree with something, this is your chance to set the record straight in a courteous and thoughtf ul way.


Make note of positi ve changes

Use your response as an avenue to share improvements you’ve made to your business, especially if it’s addressing a situati on that customers have commented upon. This reinforces the noti on that you take feedback seriously.

Be originalStock answers are oft en not well received. Tailoring a response to a situati on shows that you care about each guest’s experience.

Show grati tude, build goodwill

Show thanks for positi ve comments as well as constructi ve feedback. Showing your appreciati on for all types of feedback goes a long way.

Key takeaways

Overall, value is the key factor in 2016 with travellers keen to get the most of out of their trips. Special off ers help to determine where travellers choose to spend their travel budgets. Essenti al ameniti es such as in-room Wi-Fi and breakfast have a major infl uence upon the fi nal booking decision.

The fi ndings from the latest TripBarometer reveal the trends shaping the hospitality landscape in 2016 and provide valuable insights for business owners looking to defi ne their marketi ng strategies.

About TripAdvisor

TripAdvisor® is the world’s largest travel site*, enabling travelers to plan and book the perfect trip. TripAdvisor off ers advice from millions of travelers and a wide variety of travel choices and planning features with seamless links to booking tools that check hundreds of websites to fi nd the best hotel prices. TripAdvisor branded sites make up the largest travel community in the world, reaching 350 million unique monthly visitors**, and more than 290 million reviews and opinions covering more than 5.3 million accommodati ons, restaurants and att racti ons. The sites operate in 47 countries worldwide.

TripAdvisor, Inc. (NASDAQ: TRIP) manages and operates websites under 23 other travel media brands: www.airfarewatchdog.com, www.bookingbuddy.com, www.cruisecritic.com, www.everytrail.com,www.familyvacati oncriti c.com, www.fl ipkey.com, www.thefork.com (including www.lafourchett e.com, www.eltenedor.com, www.iens.nl, www.bestt ables.com and www.dimmi.com.au), www.gateguru.com, www.holidayletti ngs.co.uk, www.holidaywatchdog.com, www.independentt raveler.com, www.jetsett er.com, www.niumba.com, www.oneti me.com, www.oyster.com, www.seatguru.com, www.smartertravel.com, www.ti ngo.com, www.travelpod.com, www.tripbod.com, www.vacati onhomerentals.com, www.viator.com, and www.virtualtourist.com.

*Source: comScore Media Metrix for TripAdvisor Sites, worldwide, July 2015**Source: TripAdvisor log fi les, average monthly unique users, Q3 2015

Visitor Economy Bulleti n is published monthly online and is madeavailable in hard copy at “supported” events.

January 2016 Editi onAuthor Helena Egan, TripAdvisor

Design & Layout Jessica Naval, PATA

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