Visa Global Travel Intentions Study 2015 Caroline Dempsey, Head of Marketing Visa, New Zealand, South Pacific & Australia
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Visa Global Travel Intentions Study 2015
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Methodology Who
The Visa Global Travel Intentions Study 2015 was commissioned by Visa to Millward Brown. The study was conducted with 13,603 travellers*, aged 18 years and above across 25 countries in January and February 2015. Where
AFRICA & MIDDLE EAST: Egypt, Kuwait, Morocco, Saudi Arabia, South Africa, United Arab Emirates AMERICAS: Brazil, Canada, Mexico, United States of America ASIA PACIFIC: Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand EUROPE: France, Germany, Russia, United Kingdom *Have either travelled in the past 24 months or intend to travel in the next 24 months for business/leisure (non-domestic travel only).
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Visa Global Travel Intentions Study 2015
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Why do we travel? MAIN TRAVEL MOTIVATIONS IN PAST 2 YEARS
Bonding 15%
Experience cultures 13%
Rest & Relax 11%
REASONS FOR DESTINATION CHOICE IN THE PAST 2 YEARS
4
People
Activities
26%
18%
Visa Global Travel Intentions Study 2015
Accessibility / Familiarity 17% PATA Conference 2015
Strong growth in Asia Pacific Leisure travel has touched a wide mass with 3 in 4 respondents travelling in the past two years. More Asian travellers have joined the fold in 2015. TRAVELLED IN THE PAST 2 YEARS FOR LEISURE Global
APAC
Europe
Americas
Africa & Middle East
76%▼
84%▲
81%▼
79%▼
54%▼
Base:
(13603)
(6531)
(2012)
(2007)
(3053)
2013
79%
77%
87%
81%
76%
Base:
(12631)
(5555)
(2042)
(2026)
(3008)
2015
76%
Of sample travelled in the past 2 years for Leisure Base: (13603)
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▲▼ higher/lower compared to GTI 2013
Top 10 Popular Destinations NZ remains a top 5 destination for Australian travelers and top 10 for emerging markets India and China Australia 16%
12%
11%
9%
7%
6%
6%
6%
6%
5%
15%
14%
12%
11%
10%
8%
7%
6%
5%
5%
15%
14%
12%
10%
8%
7%
5%
5%
4%
4%
China
India
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Trip spending While locations such as New Zealand and South Africa attract the highest tourist receipts, travellers to South East Asia spend the least. MEDIAN SPEND PER TRIP
Top 5 countries to spend in
7
Bottom 5 countries to spend in
New Zealand
South Africa
United Arab Emirates
United Kingdom
Maldives
Laos PDR
Cambodia
Burma (Myanmar)
Malaysia
China
$3,765
$3,765
$3,765
$3,684
$3,625
$652
$956
$982
$1,129
$1,141
(127)
(41)
(277)
(178)
(38)
(41)
(44)
(37)
(271)
(375)
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Accommodation type Hotels and resorts are still the most popular accommodation type, with more than half of the travellers staying at such lodging on their most recent holiday. ACCOMMODATION TYPE ON MOST RECENT TRIP
70% Stayed at starred hotels/ resorts Base: (10309)
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44% 31% 16%
Hostel, Guesthous e, Chalet Bed & Breakfast
10%
1-3 star hotel or resort
4 stars and above hotel or resort
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Boutique hotel
10%
Serviced apartment or house or villa
14%
Friend’s or relative’s house
4%
2%
Home-stay
Others
Activities and Spending 9
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Travel activities Globally, shopping and visiting famous locales are the most common travel activities. TYPES OF ACTIVITIES DONE ON MOST RECENT TRIP
46% Visited famous restaurants
58% Visited famous local locale
66%
26%
General shopping
Visited religious monuments
24% Luxury brands shopping
30% Visited the local night scene
17% Watched concerts / musicals
20% Participated in local festivals
6% Volunteered for charity
Base: (10309)
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16% Trekked / backpacking
15% Engaged in water sports
8% Engaged in extreme sports
9% Attended sporting events
7% Engaged in sporting events
Experience trumps cost % change from 2013-2015
2015 (USD, Median)*
25% ▲
$4780
*The value used is median. The 2015 spend data has taken the assumption of constant exchange rate across 2013 and 2015, using 2013 exchange rate. 11 Visa Global Travel Intentions Study 2015
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Future spend % change -6%
Spending power of Chinese travellers Budgeting approach Global Search for the best experience and then sum up the amount before making adjustments I will keep strictly to the budget I planned
China 56 %
46%
29%
Travel activities Average no. of activities per trip Visited the local night scene such as clubs, bars, etc.
3.5 5
18%
4.3 6
Trekked / backpacking
16% 27%
Participated in local festivals Global
Global
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China China
30% 57%
20% 28% (10309)
(725)
Trip spending The future outlook of travel spends is optimistic as globally travellers are intending to spend more in their future holiday. MEDIAN SPEND PER TRIP $4,501
$3,501
$2,281
$3,501
$3,501 $3,202 $2,501
$2,715
Amount spend next trip
$2,051 $1,606
Global Base:
(9660) / (12741)
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APAC
Europe
Americas
(5313) / (6293)
(1517) / (1942)
(1424) / (1904)
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Amount spent last trip
Africa & Middle East (1406) / (2602)
Amount intend to spend Young millennials are also intending to spend much more in their next holiday, with the future intended spend almost doubling from before. AMOUNT SPENT VS INTEND TO SPEND
+33% Change in future intent to spend amongst Millennials
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18-24
25-35
Millennials
36-44
Superboomers
Amount spent last trip (median)
$1,378
$2,059
$1,882
$2,604
$2,595
Base:
(1350)
(3161)
(4511)
(2634)
(2515)
Amount intend to spend (median)
$2,501
$3,501
$2,501
$3,501
$3,501
Base:
(1934)
(3952)
(5886)
(3329)
(3526)
81%
70%
33%
34%
35%
% change
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Booking payment Cards are the predominant mode of payment at the booking phase. PAYMENT MODES USED AT BOOKING PHASE Cash
31%
Any Cards
66%
Money/Bank transfer
66% Pay with Payment Cards at the Booking stage
Others Did not make payment at this phase
17%
0%
2%
Base: (10059)
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Payment modes carried to destination More travellers carry payment cards to the destination as compared to 2013. 2013
2015 93%
84%
82%
77%
10%
13%
Cash
Payment Cards
Base: (9660)
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Traveller's cheques
Cash
Payment Cards
Base: (9323)
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Traveller's cheques
Decoding payment convenience Speed and ease of payment are some of the important features that travellers look out for to pay more conveniently. IMPORTANCE OF FEATURES IN MAKING PAYMENTS CONVENIENT Extremely important
7 6
5
5
5
6
5
5
5
5
6
5
5
5
5
6 5
5
5 4
5
5
5
5
5
6
5
4
4 3 2 Not important at all
1 0 Ability to track expenses easily
Ability to track expenses real-time
Ability to make all payments through a single payment mode
Global
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APAC
Ability to make mobile payments
Europe
Americas
Ability to make purchases quickly
Africa & Middle East
Information sources used at each stage Today’s travellers are hungry for more information from both traditional and online sources throughout the travel journey and this applies to travellers of all ages.
18-24
25-35
Planning
Millennials
36-44
Superboomers
80%
82%
82%
79%
79%
80%
79%
78%
85% 77%
Traditional Booking
48%
(Package)
52%
Booking
50%
49%
50%
51%
59%
(Independent)
58%
71%
(1475)
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(3333)
75%
76%
71%
69% (4808)
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39%
55%
72%
78%
66%
61%
48%
58%
73%
73%
During
52%
60% 68%
75% 66% (2811)
77% 59% (2690)
Online
Online sharing post trip Sharing of photos, as well as updating one’s social media profile are the most common forms of sharing post-trip. ONLINE SHARING POST TRIP Via instant messages Via email
26% 22%
Posted photos on a private web-space Posted videos on a public web-space
On a general forum
11%
Via social media status updates
In an online chat-room
12%
Others
Via a blog
13%
On a travel review site
16%
35% 24% 11% 31% -%
Base: (10309)
76%
24% did not share experience/ views online after returning home Base: (10309)
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Applying the research
PATA Conference, Auckland, October 2015
Visa Payment Innovation
Proximity payments through Visa payWave
21 | Visa
Remote payment through Visa Checkout
Peer-to-peer payments through Visa Direct
Enable digital payments through Visa Token Services
Open the network through Visa Developer and coinnovation
Explore the long-term future through Visa Research
Thank you and happy travels
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