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TripAdvisor Global Study Reveals Travel Spending in 2014

  • Published by Vedat
TripAdvisor announced the results of the world's largest accommodation and traveler survey¹ – the TripBarometer by TripAdvisor.

The survey reveals the leading travel and hospitality industry trends, according to over 19,000 travelers and over 10,000 accommodation business owners around the world. The study is conducted twice a year, and the results are analyzed independently by research firm Edelman Berland.

Themes from this season's TripBarometer include:

·         Travelers vary considerably in their economic outlook, with those from emerging markets far more optimistic about the global economy

·         While U.S. travelers aren't planning to increase travel budgets next year, they are planning to travel more frequently and closer to home to discover the sights America has to offer 

·         Despite the lack of confidence many travelers feel about the global economy, U.S. hoteliers remain confident about future profitability

·         Travelers are using credit to fund their holidays, particularly in emerging markets

Travelers Plan toLower their Budgets

·         Only one-third of U.S. travelers are optimistic about the economy

·         Americans are the least likely to spend more on travel in 2014 compared to other regions

·         61 percent of global travelers and 65 percent of U.S. travelers plan to spend the same amount or less in 2014

·         Travelers in emerging markets are the ones who plan to spend more

Region

Percentage of respondents who plan to spend more on travel in 2014

Africa

59%

South America

48%

Central America

47%

Middle East

46%

Asia

42%

Australasia

38%

Europe

36%

North America

35%

United States

35%



Trips are Shorter Yet More Frequent

·         85 percent of global travelers and 91 percent of U.S. travelers plan to travel in their home market in 2013

·         Compared to 2013, almost one-third of Americans are planning to take more trips in 2014:  

·         22 percent of U.S. travelers are planning more short vacations

·         8 percent of U.S. travelers have plans to take longer vacations

Reason

Percentage of respondents giving the reason as to why they plan to travel in their home market this year

  Global                                    U.S.

Discover their own country

42%                                        42%

Visit family

29%                                        38%

Save money

27%                                        39%



Credit is Helping to Fund Travel

·         Many travelers, including 46 percent of Americans, will fund all or part of their vacation with credit

·         Travelers in emerging markets are more willing to use credit

Sacrifices Help Make Trips Possible

·         88 percent of American travelers say it's worth making sacrifices to make memories

Factor

Percentage of respondents who will make sacrifices on the following factors in order to save money for travel

  Global                                           U.S.                  

Nights out

51%                                               54%

Meals out

43%                                               48%

Clothes, etc.

39%                                               42%

Cigarettes

31%                                               33%

Gifts

28%                                               29%

Home improvements

19%                                               23%

Charity

16%                                               18%

Groceries

13%                                               15%



·         For some travelers, vacations take priority over child-related commitments:

·         7 percent of global travelers and 11 percent in the U.S. cut back on child care costs

·         7 percent of global travelers and 10 percent in the U.S. cut back on child-related activities

·         5 percent of global travelers and 8 percent of U.S. travelers cut back on children's education

Hoteliers are Confident About Future Profitability

·         Four out of five U.S. hoteliers are optimistic about profitability in 2014

·         Only one-third of U.S. travelers are optimistic about the economy in 2014

·         Hotel industry confidence is highest in the Americas, Asia and Middle East

Region

Percentage of hoteliers who feel optimistic about making a profit in 2014

Central America

79%

United States

77%

North America

74%

Asia

74%

South America

72%

Middle East

72%

Africa

70%

Australasia

67%

Europe

56%



Hoteliers' Optimism is Driving Investment

·         65 percent of U.S. hoteliers plan to increase room rates in 2013, an increase of 16 percent compared to 2012

·         10 percent of U.S. hoteliers plan to open a new property in 2014, with 93 percent of those hoteliers planning to open new properties in North America

·         Globally, hoteliers in Asia, Europe and South America are leading the way – with 34 percent, 21 percent and 10 percent respectively making plans for new development

Target area

Percentage of hoteliers spending increased revenue on the following target areas

  Global                                    U.S.

Small scale renovations

47%                                         42%

Marketing spend

47%                                         37%

Staff training

38%                                         34%

Large scale renovations

27%                                         26%

Hiring staff

22%                                         17%

Back office

22%                                         13%



¹Methodology: The research was commissioned by TripAdvisor and conducted by Edelman Berland, an independent market research firm, conducted via online survey in June and July 2013. Survey respondents were 10,469 accommodation business owners and 19,692 18+ adults who have booked travel online and taken at least one trip in the past year. Respondents were from Argentina, Australia, Brazil, Canada, Caribbean, China, Egypt, France, Germany, Greece, India, Indonesia, Italy, Japan,Malaysia, Mexico, New Zealand, Russia, South Africa, South Korea, Spain, Thailand, Turkey, UAE, UK and USA.

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