2015 tourism & travel trends report

TOURISM 2020

2015 TOURISM AND TRAVEL TRENDS REPORT

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RESONANCE CONSULTANCY IS AN INTERNATIONAL LEADER IN DESTINATION DEVELOPMENT, BRANDING AND MARKETING. OUR TEAM HAS ADVISED PRIVATE AND PUBLIC SECTOR ORGANIZATIONS IN MORE THAN 70 COUNTRIES AROUND THE WORLD. OUR INTEGRATED APPROACH TO RESEARCH, STRATEGY AND BRANDING HELPS COMMUNITIES, CITIES AND COUNTRIES IDENTIFY NEW MARKET OPPORTUNITIES, CREATE PLANS FOR THE FUTURE, AND COMMUNICATE THEIR STORIES TO REALIZE THE FULL POTENTIAL OF THEIR DESTINATIONS.

ABOUT US

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• International Market Development Strategy for Republic of Ireland

• Strategic Plan for Aruba Tourism Authority

• Tourism Master Plan for City of Vancouver

• Destination Assessment for the Canadian Tourism Commission

• Destination Development Strategy for Cincinnati USA

To learn more about Resonance Consultancy, please visit www.resonanceco.com.

ABOUT US

RECENT RESONANCE CONSULTANCY PROJECTS INCLUDE:

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• 2015 Portrait of the U.S. International Leisure Traveler

• 2015 Portrait of the U.S. Millennial Traveler (March 2015)

• 2015 Portrait of the U.S. Senior Traveler (April 2015)

• 2015 U.S. Luxury Travel & Leisure Report (May 2015)

ABOUT US

IN ADDITION TO CONDUCTING RESEARCH FOR OUR CLIENTS IN NORTH AMERICA AND EUROPE, RESONANCE CONSULTANCY CONDUCTED A SURVEY OF MORE THAN 3,300 U.S. TRAVELERS IN NOVEMBER 2014 TO UNDERSTAND THE PREFERENCES, ASPIRATIONS AND INTENTIONS OF THE WORLD’S LARGEST TOURISM ECONOMY. FORTHCOMING REPORTS INCLUDE:

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01. CONSPICUOUS LEISURE

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• Signaling social status through consumption of experiences rather than material goods.

• Technology, Travel & Leisure experiences the most coveted luxuries of U.S. households.1

• Travel is the #1 leisure pursuit for Chinese HNWIs.2

• The rise of social media enhances the value of experiences as they become social currency used to define and communicate status.

1. CONSPICUOUS LEISURE

1 2015 Resonance Report: Luxury Travel & Leisure Trends2 Hurun Report Chinese Luxury Consumer Survey 2014

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02. GLOBAL GROWTH

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• 1.1 billion tourists traveled abroad in 2014, a 4.7% increase over the previous year.3

• For 2015, UNWTO forecasts international tourism to grow by 3% to 4%.

• At current pace, international travel will double from 1 to 2 billion between 2013 and 2035.

• Europe is the most visited region in the world but North America grew the most in 2014 at 8%.

2. GLOBAL GROWTH

3 UNWTO World Tourism Barometer

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03. CHINA

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• China has consolidated its position as the number one tourism source market in the world, with more than 100 million travelers spending USD $129 billion on international tourism in 2013.4

• Hong Kong, Macau and Taiwan accounted for 70% of outbound travel, and 89% of Chinese travelers stayed within Asia in first 11 months of 2014.

• U.S. and France are the only countries outside Asia that are top 10 destinations.

• Approximately 2/3 of Chinese travelers prefer to travel independently, up 5% over 2013.5

• While China is the largest outbound market, inbound travel to major Chinese cities declined as much as 10% in 2013.6

3. CHINA

4 UNWTO Tourism Highlights, 2014 Edition5 Hotels.com Chinese International Travel Monitor 20146 Euromonitor International Top 100 City Destination Rankings

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04. SHOPPING SAFARIS

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• The most popular shopping destinations are China and the U.S. Domestic and international tourists spent more than USD $170 billion in China and USD $110 billion in the U.S. in 2014.7

• 27% of Chinese tourists abroad spend more on shopping when traveling than on anything else.8

• Global expansion and commodification of brands will increase desirability and demand for goods of local provenance – only 54% of U.S. international travelers shop at luxury brand stores while on vacation vs. 86% who want to shop at stores featuring locally made goods.9

4. SHOPPING SAFARIS

7 Euromonitor International8 China Outbound Tourism Research Institute9 2015 Resonance Report: Portrait of the U.S. International Leisure Traveler

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05. MILLIONS OF MILLENNIALS

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• 1.8 billion out of 7 billion people worldwide belong to the Millennial generation (age 18-34).

• ‘Experiencing everyday life in another country’ and ‘increasing their knowledge’ are top travel motivations for Millennial travelers.10

• 54% of U.S. Millennials that traveled last year have children living at home.11

• 11.2 million households with children in U.S. are Millennials.12

5. MILLIONS OF MILLENNIALS

10 WYSE Travel Confederation Millennial Traveller Report11 2015 Resonance Report: Portrait of the Millennial Traveler12 U.S. Census

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06. WIRED AND WIRELESS

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• By 2017, more than 3 billion people will have mobile internet access.13

• Internet access is the most important hotel amenity for both leisure and business travelers.

• Hyatt is first major global full-service brand to offer free WiFi to all guests across all properties.

• Mobile internet affects not only the way travel is distributed and sold, but how we consume and experience the destination itself.

6. WIRED AND WIRELESS

13 PwC Global Entertainment & Media Outlook: 2013-2017

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07. SERIOUSLY SOCIAL

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• Travel reviews have a significant influence on travel decisions of Millennials as almost 80% of Millennials said their travel decisions were influenced by reviews either ‘often’ or ‘sometimes’.14

• 57% of U.S. Millennial travelers take and post pictures on social media networks hourly or daily while on vacation vs. 29% of all U.S. travelers.15

• 51% of U.S. Millennial travelers post comments and updates on Facebook, Twitter or other social media networks hourly or daily while on vacation vs. 24% of all U.S. travelers.

• Trip Advisor acquisition of Viator and La Forchette and Priceline acquisition of OpenTable are first steps by OTA’s towards directing and managing visitor purchases both before and during their vacation.

• Free WiFi throughout city centers and tourist corridors will be key to enhancing visitor experience while leveraging potential of social media as a marketing channel.

7. SERIOUSLY SOCIAL

14 WYSE Travel Confederation Millennial Traveller Report15 2015 Resonance Report: Portrait of the U.S. Millennial Traveler

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08. SHARING ECONOMY

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• Airbnb surpassed 800,000 listings and hosted more than 10 million people in 2014.

• Despite this new entrant, global hotel occupancy rates and ADR have recovered to pre-recession/pre Airbnb levels.

• 40% of U.S. Millennials use Airbnb or other sharing service versus 23% of all U.S. travelers.16

• However, a full service hotel/resort is the #1 choice of Millennials (58%) vs Airbnb or other room/home sharing services which is last at 11%.17

8. SHARING ECONOMY

16, 17 2015 Resonance Report: Portrait of the U.S. Millennial Traveler

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09. ATHLETIC EVENTS

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• USA Triathlon membership grew from roughly 100,000 members in 1998 to over 550,000 members in 2014.

• Non-traditional endurance races like Tough Mudder have grown rapidly to more than 4 million participants in U.S. alone versus 2.5 million for marathon and half-marathon races.

• 53% of U.S. Millennial travelers regularly or occasionally participate in athletic competitions on vacation vs. 31% of all U.S. travelers (and 20% more would like to try).18

• Participation in athletic competitions is higher among more affluent households.

9. ATHLETIC EVENTS

18 2015 Resonance Report: Portrait of the U.S. Millennial Traveler

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10. BLEISURE

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• 94% of younger travelers are ‘more than’ or ‘equally’ likely to take a bleisure trip in the next five years – significantly higher than the worldwide average.19

• Hotwire.com survey of U.S. travelers found Millennials (18-34) were more likely to mix business with pleasure compared to their older counterparts (aged 35 to 44) at 56% vs. 37%.

• U.S. Millennials are most likely to combine a business trip with a leisure vacation at 32% vs. 19% of travelers aged 35-64 and just 5% of travelers 65+.20

• For meetings and conventions, the city itself becomes the venue and quality of place is a potential competitive advantage.

10. BLEISURE

19 Bridgestreet Global Hospitality Bleisure Report 201420 2015 Resonance Report: Portrait of the U.S. Millennial Traveler

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11. GROWING GRAY

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• World population of 65+ will rise from 600 million in 2015 to more than 1 billion by 2030.21

• 17% of Europe’s population is now 65+, 10% in North America and 7% in Asia.22

• In 2013, 360,000 Americans received their Social Security abroad – 48% more than in 2003.

• In the U.S., 66% of Senior Travelers define retirement as a “time to travel and explore new places.”23

• Travel closer to home – less likely to travel overseas.

• Retirees are an attractive market in non-peak seasons – most likely to take longer vacations.

• Accessibility is key as 1/3 of market has some form of physical disability.24

11. GROWING GRAY

21, 22 United Nations, Department of Economic and Social Affairs, World Population Prospects: 2012 Revision, June 201323 2015 Resonance Report: Portrait of the U.S. Senior Traveler24 World Health Organization

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PHOTO: FLICKR - TIM GILLIN

12. ACCESSIBLE ADVENTURE

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• Adventure travel is defined as any tourist activity that includes two of the following three components: a physical activity, a cultural exchange, or interaction and engagement with nature.25

• 71% of U.S. Millennials want “to participate in adventure activities that take me out of my comfort zone when on vacation.”26

• 25% of U.S. international travelers are ‘Active Adventurers’.27

• Engaging with nature is one of the most popular vacation activities for U.S. Seniors (73%)

• Chinese and South Asian travelers are more likely to ‘sit back and enjoy’ rather than immerse themselves in outdoor activities.

12. ACCESSIBLE ADVENTURE

25 Adventure Travel Trade Association26 2015 Resonance Report: Portrait of the U.S. Millennial Traveler27 2015 Resonance Report: Portrait of the U.S. International Leisure Traveler

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13. MEDICAL TOURISM

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• Patients Beyond Borders estimates 11 million cross-border patients will spend USD $38.5-$55 billion worldwide.

• Worldwide medical tourism market is growing at a rate of 15-25%, with rates highest in North, Southeast and South Asia.28

• Top destinations are Costa Rica, India, Israel, Malaysia, Mexico, Singapore, South Korea, Taiwan, Thailand, Turkey, and United States.

• 1.2 million Americans will travel outside U.S. for medical care.

• In the U.S., Millennial travelers are the most receptive/interested in receiving medical treatments while on vacation.29

13. MEDICAL TOURISM

28 Patients Without Borders29 2015 Resonance Report: Portrait of the U.S. Millennial Traveler

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14. MILLIONS OF MILLIONAIRES

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• There are 34.8 million millionaires in the world, an increase of 12.4% over 2013.30

• The average global growth between 2014 and 2019 in the number of millionaires is expected to be 53%.

• North America has 15 million (44% of the total) compared to 11.7 million (34%) in Europe.

• The U.S. has 41% of the world’s millionaires – and nearly 35% of all the world’s wealth.31

• Asia-Pacific countries, excluding China and India, have 5.6 million millionaires (16%), and there are now 1.2 million millionaires in China (3.4% of the global total).

• The number of Chinese millionaires is set to double to more than 2 million by 2019.32

• U.S. millionaires most interested in visiting Europe (49%) in next 12-24 months and Italy is the most popular country in the world at 24%.33

• After ‘Dining & Sightseeing’, ‘Learning New Things’ is the most popular activity for U.S. millionaires, with 91% regularly or occasionally participating on vacation.

14. MILLIONS OF MILLIONAIRES

30, 31, 32 2014 Credit Suisse Global Wealth Report 33 The Resonance Report: 2015 Affluent Traveler Report

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• 26% of U.S. travelers enjoy visiting rare and remote landscapes like Antarctica, Galapagos islands or the Arctic on vacation and 54% would like to try.34

• 37,405 tourists visited Antarctica in 2013-14, which was a 9% increase from the previous year.35

• Most travelers to Antarctica are from the U.S. (33%). Others from Australia (11%), China (9%), U.K. (8%), Germany (8%), Canada (5%), France (3%) and Switzerland (2%). 36

15. FRONTIERISM

34 2015 Resonance Report: Portrait of the U.S. International Leisure Traveler35, 36 Association of Antarctica Tour Operators (IAATO)

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• Shift in vacation home ownership from sun/resort destinations to top global cities.

• 47% of Chinese millionaires plan to emigrate.37

• There are 22,300 foreign multimillionaires— those worth USD $10 million or more—who own second homes in London.38

• In Miami, 90% of all new condominium sales are to foreign buyers.39

• In downtown Vancouver, 5.8% of all condominiums are owned by foreign residents.40

• Foreign demand in lifestyle cities increases land values and discourages hotel investment

16. RESIDENTIAL TOURISM

37 Barclays Wealth Insights Volume 1838 New World Wealth Report39 Integra Realty Resources40 Canada Mortgage and Housing Corp

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• Global LGBT spending on travel estimated to be more than USD $200 billion per year.41

• 17 countries have legalized same-sex marriage and two, Mexico and the U.S., allow it in some jurisdictions.

• In July 2012, NYC & Company reported that the total economic impact of same-sex weddings in New York City alone for one year was USD $259.5 million.

• Russia anti-gay law passed in advance of Sochi Olympics spawned global protests, negative publicity and state department travel warnings.

17. GAY ON THE GO

41 Out Now Business Class

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• Traditional cultural tourism is centered on built heritage, but there is growing interest in ‘intangible heritage’ – popular culture, traditions and storytelling.42

• Higher levels of interest in active/creative cultural participation rather then passive observation.

• Cities with a ‘creative class’ population and culture attract travelers from developed markets while built heritage continues to resonate with emerging markets.

• 27% of U.S. international travelers are ‘Sophisticated Explorers’ for whom “Exploring new cultures and their traditions while on vacation” is their #1 vacation motivation.43

• Most interested in ‘Visiting Cultural Attractions’ (95%) and ‘Learning New Things’ (94%).44

18. CULTURE 3.0

42 Greg Richards, 201443, 44 2015 Resonance Report: Portrait of the U.S. International Leisure Traveler

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• There are more than 500 branded attractions around the world from Ferrari World to the Coca-Cola Experience.

• Reduced reach and influence of traditional media is motivating global brands to create attractions and experiences to engender brand loyalty and engage consumers.

• LVMH invested USD $143 million in Paris’ new Fondation Louis Vutton art museum.

• Hersey’s Chocolate World in Pennsylvania the #1 brand attraction in the world with 4.1 million visitors annually.

• Guinness Storehouse in Dublin the most visited attraction in Ireland with more than 1 million visitors per year.

• Merlin now has 9 LEGOLAND Parks around the world with plans to grow to 20.

19. BRAND ATTRACTIONS

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• The tourism sector accounts for about 5% of global emissions - 40% of which come from air travel – but only 2% of international travelers choose to purchase carbon offset credits for their flight.

• Visits to Beijing decline again – down 10% in 2014 due to air pollution.

• Residents in Barcelona protested against tourism in August.

• Growth of industry in decade ahead more likely to be impacted by issues related to carrying capacity and impact of tourism on quality of life for local residents.

• As global tourism demand doubles over the next 15 years, emphasis for many destinations will shift from marketing to management of the destination and balancing the interests of locals and visitors.

20. SUSTAINABILITY

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TO LEARN MORE ABOUT OUR RESEARCH, PLEASE VISIT RESONANCEREPORT.COM FOR INFORMATION ON CURRENT AND FORTHCOMING REPORTS:

• 2015 Portrait of the U.S. International Leisure Traveler

• 2015 Portrait of the U.S. Millennial Traveler (March 2015)

• 2015 Portrait of the U.S. Senior Traveler (April 2015)

• 2015 U.S. Luxury Travel & Leisure Report (May 2015)

[email protected]

+1.604.681.0804

@resonanceco @crfair

THANK YOU!

The Resonance Report is produced for general interest only; it is not definitive. It must not be relied upon in any way. Although high standards have been used in the preparation of the information and analysis presented in this report, no responsibility or liability whatsoever can be accepted by Resonance Consultancy Ltd. for any loss or damage resultant from any use of, reliance on, or reference to the contents of this document. We make no express or implied guarantee of its accuracy. Please be advised that your use of The Resonance Report document constitutes your agreement to (i) use the content under a limited license only for your own internal purposes, and (ii) not disclose, publish or otherwise make public or provide the content, in whole or in part, to any third person or entity without the prior written consent of Resonance Consultancy Ltd. The content is and remains at all times the exclusive intellectual property of Resonance Consultancy Ltd. Copyright © 2015 Resonance Consultancy Ltd.

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