emma travel trends & insights TM

November 2016

THE ROAD WELL TRAVELLED Tracking Australian attitudes and behaviour towards holidaying.

Off to see the world Australians are known around the world as intrepid travellers. Nothing is more evocative of the young, adventurous Aussie spirit than a gap year, and from Kensington to Kathmandu Australian accents can be heard. While exotic destinations immediately spring to mind, emma™ data shows relatively few younger Australians venture off the path well beaten by their parents. In both intention and behaviour, the top foreign destinations for both age groups are familiar places with similar cultures and, often, language to our own. Though Australians of all ages rank sight seeing and relaxation as their top priorities in a holiday, the experiences Generation Y’s expect from travel diverge from their Baby Boomer counterparts1. Younger people are more likely to opt for adventure and outdoor components in their overseas jaunts. They are also more independent, preferring to organise all aspects of their travel themselves and are less likely than Australians on average to seek out a packaged tour.

Take off, to a world well known UK / Ireland

Although 77 per cent of Generation Y’s say they ‘like to experience new and exciting places’, most who have travelled in the past year or plan to do so in the coming 12 months choose destinations with similar cultures and languages. In fact, the travel intentions and behaviour of Baby Boomers and Gen Y’s are surprisingly similar, with the UK/Ireland, US and New Zealand in the top destinations for both.

While European countries, notably France, also feature highly for both age groups, Gen Y’s wish list includes Thailand and Japan — both of which are very accommodating to Western tourists. Japan is on the radar due to its good value ski fields and attractions of Tokyo, which offers sophistication and variety. Meanwhile, Thailand’s rich culture, cheap accommodation and proximity to Australia make it an enduring favourite.

Rest of Europe 8% 7%

France

6%

Italy

6%

Japan

Top 7 BB

USA 18% 9%

Thailand

7% 6% 7%

Gen Y and Boomer travellers alike claim to want ‘new and exciting places’ to visit. That concept however is relative: there are limits to the excitement Australians crave, and most prefer to travel in comfort. Therefore the challenge for marketers is to convey adventure and novelty within conventional and popular overseas destinations.

12%

4% 10%

11%

9%

7% 8%

9%

Gen Y Baby Boomers

Indonesia

11%

South Pacific

17% 15%

7%

Getting away from it all

6%

13%

This short report draws on emma™ (Enhanced Media Metrics Australia) data to explore the preferences and behaviours of Australian adults towards holidaying.

Have travelled last 12 months

4%

11%

8%

13%

Top 7 both

Intend to travel next 12 months

17%

7%

8%

Top 7 Gen Y

7%

40 per cent of Gen Y’s and 42 per cent of Baby Boomers agree they ‘prefer quite out of the way places’, but the countries they most often choose are not. Perhaps the idea of getting off the grid is more appealing than actually doing so.

7%

7%

6%

New Zealand

4% 6% 15% 14% 8% 9%

1

Generation Y defined as people born 1982-91; Baby Boomers 1946-65.

2

Baby Boomers are

– 23% less

Gen Y’s are

Baby Boomers are

35% more +

likely* to say “a holiday ‘must involve travelling overseas”

– 19% less

Gen Y’s are

22% more +

likely* to prefer “busy and bustling cities”

Baby Boomers are

– 8% less

Gen Y’s are

7% more +

likely* to agree they “like to go to places I have been before” *compared to Australian travellers on average.

3

“People want a deeper experience and value for money rather than ‘fly and flop’.”

I want to experience the destination: top travel priorities Fairfax Media’s national travel editor, Anthony Dennis, notes the experiential aspect of travel is increasingly important to Australians of all ages. “Travel has become such a part of our DNA as Australians, it’s not just about a holiday but enriching ourselves as a people and broadening our horizons,” he says. “We’re devoting more of our discretionary spend to travel, it’s seen as a personal investment and the experiential element is becoming more obvious. People want a deeper experience and value for money rather than ‘fly and flop’. They seek a rich, rewarding experience that will inform the rest of their lives.”

3.

4.

Touring by car

5. Going on a cruise

Travel for pleasure is a top priority among Baby Boomers, many of whom are healthier, fitter and more cashed up than earlier generations of retirees. With time to get away and a more leisurely approach to travel overall, their most popular options include cruising and touring by car: Boomers are 16 and 5 per cent more likely to choose those holiday types, respectively, than travellers on the whole.

For Gen Y the activity is at least as important as the destination, as seen in their choosing immersive holidays such as adventure/outdoor, beach and ‘foodie’ tourism. Boomers on the other hand prefer touring by car and cruising. Ba Bo by om er

s Ge

nY

2. Sight seeing

Relax & unwind

1. Though sight seeing and rest and relaxation are the top two types of holiday for Generation Y and Baby Boomer travellers alike, their respective priorities diverge from there.

4

3.

4.

Adventure / outdoor experience Adventure/outdoor holidays are in Baby Boomers’ top five types of holidays. They are however 29 per cent less likely to choose such a vacation than travellers on average.

Staying near the beach

5. Adventure / outdoor experience According to emmaTM data, a much larger proportion of Gen Y’s (24 per cent) seek adventure or outdoor experiences than Baby Boomers, and Gen Y’s are 42 per cent more likely to do so than other travellers. They are also 31 per cent more inclined to go on vacation for the primary purpose of eating out.

A holiday for eating out

Though only 10 per cent of Gen Y’s choose a holiday to experience the nightlife, they are 67 per cent more likely to do so than travellers on average. Fewer still (6 per cent) seek out an eco-tourism option but they are 42 per cent more likely to go that route than holidaymakers generally.

5

Roughing it While Boomers and Gen Y’s prefer to travel in comfort, and the top accommodation choice for both is a fourstar hotel or resort, Gen Y’s focus on adventure (and their budgets!) mean they are more likely to camp, stay in a hostel or with friends.

14%

Out there (just not too far out)

Mature travellers believe they deserve to get away regularly but are more likely to stay close to home. One in five prefers to holiday in Australia, and more than a quarter opt for multiple short breaks during the year. This may be partly because family commitments keep them from being away for extended periods of time.

more likely* to stay at a BED & BREAKFAST

Though Boomers famously like to do things their way they are slightly more likely than the population average to choose a tour package where everything is organised, provided it suits their needs. And far from computer illiterate, 46 per cent will book all aspects of travel themselves rather than go through a travel agent. Boomers however are 6 per cent less likely than travellers on average to do so.

52% 39%

less likely* to stay on a HOUSEBOAT, YACHT OR SHIP

less likely* to stay in a BACKPACKERS OR YOUTH HOSTEL

8%

more likely* to stay in a 5 STAR HOTEL OR RESORT

The price of holidays is a concern for both age groups, with 42 per cent of Gen Y’s and 35 per cent of Baby Boomers agreeing holidays are ‘too expensive these days’. This is doubtless part of the reason for the increasing popularity of self-managed vacations. That type of planning without the assistance of a travel agent can however be difficult and time-consuming, particularly for overseas destinations. There’s also the risk of being scammed by a foreign operator that is not subject to Australian consumer protection laws. As Fairfax Media’s Anthony Dennis points out, “As we get more experienced and savvy, a lot of us don’t need help organising our own trips. But you’re exposed if something goes wrong, particularly overseas, and you don’t have a travel agent to call. There is accordingly clear anecdotal evidence of people being directed back to travel agents, who are enjoying a revival.”

103

103

103

98

94

16%

more likely* to stay in a TENT OR CAMPING GROUND

24%

15%

more likely* to stay WITH FAMILY OR FRIENDS

more likely* to stay on a HOUSEBOAT, YACHT OR SHIP

*compared to Australian travellers on average.

Media most useful

“Holidays are too expensive these days.”

100 index

91

89

6

more likely* to stay in THEIR OWN HOLIDAY HOUSE OR UNIT

Travel is among the most heavily researched discretionary purchases, so it’s understandable Australians of all ages rely on the internet and advice from family, friends or colleagues in making their travel decisions.

107

“I tend to book all aspects of travel myself rather than going through a travel agent.”

y B o o me Bab rs

more likely* to stay in a SERVICED HOUSE OR UNIT

Taking Control

111

B& B

11%

32%



Gen Y’s are particularly autonomous: 55 per cent of those who have travelled in the past year or will do so in the 12 months ahead will likely book all aspects of travel themselves rather than use a travel agent: 11 per cent more than travellers on average. Just 17 per cent of younger travellers like packaged tours where everything is organised for them. Only 18 per cent prefer to stay in Australia for their holidays, and they are slightly (2 per cent) less likely than all travellers to opt for multiple short breaks rather than long annual holidays each year.

66% more likely* to stay in a BACKPACKERS OR YOUTH HOSTEL

Gen Y

The quest for new and exciting places doesn’t mean unconventional or uncomfortable. Older and younger Australians alike will travel in style if they can: emmaTM data shows 18 per cent of Gen Y’s and 20 per cent of Baby Boomers say their recent or near-term travel includes staying in a four-star hotel or resort, with such accommodation the number one choice for each group.

66%

85 “I like to take multiple short breaks, rather than long annual holidays each year.”

“I like package tours where everything is organised.”

“I prefer to stay in Australia for holidays.”

Gen Y Baby Boomers

1.

2.

3.

Online advertising/ Online searches

Advice from family friends or colleagues

Travel or airline companies’ web sites

5. 4. Gen Y: Social Media Baby Boomers: Newspapers

Information obtained directly from travel or airline company staff

7

Enjoy the journey With Generation Y and Baby Boomer travellers alike seeking to experience ‘new and exciting places’ while keeping to the beaten path, the challenge for destinations and travel-related brands is to present a fresh and engaging experience that also provides comfort. The tendency to self-manage holidays presents an opportunity not just for online aggregators but also travel agents, provided they recognise the needs and motivations of travellers of all age groups. To that end, making use of the information channels that consumers trust most in their decision-making is key. Social media, so much of which is about what people are doing, plays well into how Gen Y’s look at holiday experiences whereas Boomers still rely heavily on newspapers. Similarities in preferred travel destinations however mean the travel industry needs to consider types of travellers rather than make assumptions solely based on age group. “Boomers aren’t just all cruise fanatics, lots are adventurous and will do their own thing,” says Anthony Dennis at Fairfax. “Some Gen Y’s will go on a guided tour and will be mixed up with Boomers. It’s not as clear cut as it seems by generation, there are more similarities than we care to admit.” With rich insights into Australians’ evolving attitudes, preferences and behaviours towards overseas holidays, emma™ data will continue to guide marketers looking to communicate with Australian travellers.

Explore and discover The observations and analysis in this short report are based on data from Ipsos’ emmaTM survey. The emma™ survey is completed by 40,000+ Australians per year and is accurately matched to total population across gender, location and demographic variables. Detailed responses are collected across all aspects of consumers’ behaviour online and offline. To find out more or to arrange a tailored presentation for your brand please contact [email protected] or visit emma.com.au This report is published by Ipsos Australia. L13, 168 Walker Street North Sydney, NSW 2060 © Ipsos Australia, 2016. emmaTM is a trademark of The Readership Works

Source: emma™ Conducted by Ipsos Connect (Aug 2015 – Jul 2016). Sample of all respondents 14+ who have travelled overseas within the last 12 months or intend to do so in the next 12 months n=30,289. Ipsos Australia would like to thank Anthony Dennis, Fairfax Media’s national travel editor, whose perspectives helped inform this report.