Visa Global Travel Intentions Study Caroline Dempsey, Head of Marketing Visa, New Zealand, South Pacific & Australia
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1 Visa Global Travel Intentions Study 2015 Caroline Dempsey, Head of Marketing Visa, New Zealand, South Pacific & Australia
2 Disclaimer Case studies, statistics, research and recommendations are provided "AS IS" and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. You should consult with your legal counsel to determine what laws and regulations may apply to your circumstances. The actual costs, savings and benefits of any recommendations or programs may vary based upon your specific business needs and program requirements. By their nature, recommendations are not guarantees of future performance or results and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Visa is not responsible for your use of the information contained herein (including errors, omissions, inaccuracy or non-timeliness of any kind) or any assumptions or conclusions you might draw from its use. Visa makes no warranty, express or implied, and explicitly disclaims the warranties of merchantability and fitness for a particular purpose, any warranty of non-infringement of any third party's intellectual property rights. To the extent permitted by applicable law, Visa shall not be liable to a client or any third party for any damages under any theory of law, including, without limitation, any special, consequential, incidental or punitive damages, nor any damages for loss of business profits, business interruption, loss of business information, or other monetary loss, even if advised of the possibility of such damages. 2 Visa Global Travel Intentions Study 2015
3 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 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). 3 Visa Global Travel Intentions Study 2015
4 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%
5 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 TRAVELLED IN THE PAST 2 YEARS FOR LEISURE Global APAC Europe Americas Africa & Middle East % 84% 81% 79% 54% Base: (13603) (6531) (2012) (2007) (3053) 76% Of sample travelled in the past 2 years for Leisure Base: (13603) % 77% 87% 81% 76% Base: (12631) (5555) (2042) (2026) (3008) 5 Visa Global Travel Intentions Study 2015 Visa PATA Internal Conference Use Only 2015 higher/lower compared to GTI 2013
6 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% China 15% 14% 12% 11% 10% 8% 7% 6% 5% 5% India 15% 14% 12% 10% 8% 7% 5% 5% 4% 4% 6 Visa Global Travel Intentions Study 2015
7 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 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 (127) (41) (277) (178) (38) $652 $956 $982 $1,129 $1,141 (41) (44) (37) (271) (375) 7 Visa Global Travel Intentions Study 2015 Visa PATA Internal Conference Use Only 2015
8 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 44% 70% Stayed at starred hotels/ resorts Base: (10309) 16% Hostel, Guesthous e, Chalet Bed & Breakfast 31% 1-3 star hotel or resort 4 stars and above hotel or resort 10% 10% Boutique hotel Serviced apartment or house or villa 14% Friend s or relative s house 4% 2% Home-stay Others 8 Visa Global Travel Intentions Study 2015
9 Activities and Spending 9 Visa Global Travel Intentions Study 2015
10 Travel activities Globally, shopping and visiting famous locales are the most common travel activities. TYPES OF ACTIVITIES DONE ON MOST RECENT TRIP 46% 58% 17% 16% 9% Visited famous restaurants Visited famous local locale Watched concerts / musicals Trekked / backpacking Attended sporting events 66% 26% 20% 15% 7% General shopping Visited religious monuments Participated in local festivals Engaged in water sports Engaged in sporting events 24% 30% 6% 8% Luxury brands shopping Visited the local night scene Volunteered for charity Engaged in extreme sports Base: (10309) 10 Visa Global Travel Intentions Study 2015
11 Experience trumps cost % change from (USD, Median)* Future spend % change 25% $4780-6% *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
12 Spending power of Chinese travellers Budgeting approach Global China Search for the best experience and then sum up the amount before making adjustments I will keep strictly to the budget I planned 46% 56 % 29% 18% Average no. of activities per trip Visited the local night scene such as clubs, bars, etc. Trekked / backpacking Travel activities % 57% 16% 27% Participated in local festivals 20% 28% Global China Global China (10309) (725) 12 Visa Global Travel Intentions Study 2015
13 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 $2,281 $3,501 $3,501 $2,051 $1,606 $2,501 $2,715 $3,501 $3,202 Amount spent last trip Amount spend next trip Global APAC Europe Americas Africa & Middle East Base: (9660) / (12741) (5313) / (6293) (1517) / (1942) (1424) / (1904) (1406) / (2602) 13 Visa Global Travel Intentions Study 2015 Visa PATA Internal Conference Use Only 2015
14 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 Millennials Superboomers Amount spent last trip (median) $1,378 $2,059 $1,882 $2,604 $2,595 Base: (1350) (3161) (4511) (2634) (2515) +33% Change in future intent to spend amongst Millennials Amount intend to spend (median) $2,501 $3,501 $2,501 $3,501 $3,501 Base: (1934) (3952) (5886) (3329) (3526) % change 81% 70% 33% 34% 35% 14 Visa Global Travel Intentions Study 2015
15 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 17% 66% Pay with Payment Cards at the Booking stage Others Did not make payment at this phase 0% 2% Base: (10059) 15 Visa Global Travel Intentions Study 2015
16 Payment modes carried to destination More travellers carry payment cards to the destination as compared to % 93% 84% 77% 13% 10% Cash Payment Cards Traveller's cheques Cash Payment Cards Traveller's cheques Base: (9660) Base: (9323) 16 Visa Global Travel Intentions Study 2015
17 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 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 Ability to make mobile payments Ability to make purchases quickly Global APAC Europe Americas Africa & Middle East 17. Visa Global Travel Intentions Study 2015
18 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 Millennials Superboomers Planning 80% 79% 82% 80% 82% 79% 79% 78% 85% 77% Booking (Package) 48% 52% 50% 50% 49% 51% 52% 48% 39% 61% Traditional Online Booking (Independent) 59% 71% 58% 73% 58% 72% 55% 75% 60% 68% During 73% 66% 78% 71% 76% 69% 75% 66% 59% 77% (1475) (3333) (4808) (2811) (2690) 18 Visa Global Travel Intentions Study 2015
19 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 On a general forum In an online chat-room Via a blog On a travel review site 11% 26% 22% 12% 13% Posted photos on a private web-space Posted videos on a public web-space Via social media status updates Others -% 11% Base: (10309) 35% 31% 16% did not share experience/ views online after returning home 24% 76% 24% Base: (10309) 19 Visa Global Travel Intentions Study 2015
20 PATA Conference, Auckland, October 2015 Applying the research
21 Visa Payment Innovation Proximity payments through Visa paywave 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 Visa 21
22 Thank you and happy travels
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