2006 ESADE- eDREAMS SURVEY
TRENDS IN THE PRICE SENSITIVITY OF SPANISH TOURISTS
2005-2006
Authors:
Dr. Josep-Francesc Valls, Director of the ESADE International Tourism Symposium
Dr. Mar Vila, Director of ESADE's Centre for Tourism Management
Research Assistant:
Marta Molist
• 3,347 visitors to the eDreams web site who were aged between 16 and 66
• 63% women and 37% men
• Average age: 37
• Number of responses: 631 (18.85%) • Margin of Error: 3.51%, assuming a maximum confidence interval
(p=q=0.5) and 95% confidence level
Sample
15,34%8,37%
57,83%
68,99%
26,84%22,64%
0%
10%
20%
30%
40%
50%
60%
70%
15 - 24 years 25 - 44 years 45 - 66 years
2006
2005
Main reason for travelling
Source: ESADE – eDREAMS 2006
34%
24%24%23%
19%
23%
11%9% 8%
11%
2%4%
2% 2%0%
4%
0%
5%
10%
15%
20%
25%
30%
35%
Visits
Relaxa
tion
Friend
s and
family
Culture
Work
Congre
sses
Sports
Others
20062005
Days holiday
Source: ESADE – eDREAMS 2006
4% 3%
11%7%
22%26%
41%46%
8%7%2% 2%
13%9%
0%
10%
20%
30%
40%
50%
0 - 9
days
10 - 1
9 day
s
20 - 2
9 day
s
30 - 3
9 day
s
40 - 4
9 day
s
50 - 5
9 day
s
Over 6
0 day
s
20062005
Days spent travelling
Source: ESADE – eDREAMS 2006
17%16%
37%42%
28% 28%
12%10%
2% 2% 1% 1% 3% 1%0%
10%
20%
30%
40%
50%
0 - 9
days
10 - 1
9 day
s
20 - 2
9 day
s
30 - 3
9 day
s
40 - 4
9 day
s
50 - 5
9 day
s
Over 6
0 day
s
20062005
Number of journeys carried out in the previous year
Source: ESADE – eDREAMS 2006
3% 2%
9% 9%
41%37%
30%27%
5%7%
12%
17%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
None One Two-three
Four-six Seven-eight
Overeight
20062005
Source: ESADE – eDREAMS 2006
Budget earmarked for tourism compared with the previous year
40%35%
46%49%
11%14%
3% 3%
0%
10%
20%
30%
40%
50%
More The same Less No response
20062005
Reasons for travelling to a given destination
Source: ESADE – eDREAMS 2006
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
There are bargainDeals on theInternet
I have alwaysgone there
Friends and family recommend it
It is in vogue Seekingsomething new
Is a tourist brand that carries kudos
V. highHighMediumLowV. low
2006
2005
7%
10%
18%
28%
37%
40%
26%
20%
8%5%
10%
23%
39%
23%
5%
44%
32%
18%
4%2%
5%5%
16%
38%
35%
23%
21%
30%
17%
9%
0%
20%
40%
60%
80%
100%
There arebargain dealson the Internet
I have alwaysgone there
Friends andfamily recommend it
It is in vogue Seeking somethingnew
Is a tourist brand that carries kudos
V. highHighMediumLowV. low
Trends in the quality of tourist products
Source: ESADE – eDREAMS 2006
0%
10%
20%
30%
40%
50%
More The same Less No response
Presupuesto dedicado al turismo respecto al año anterior
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
More The same Less No response
20062005
Willingness to pay more
Source: ESADE – eDREAMS 2006
0%10%20%30%40%50%60%70%80%90%
100%
I am unwillingto pay more
Would pay more ifthe touristproducts werebetter
NRNoYes
2006
200556%
20.44%
24%
51%
25.36%
23%
32%
42.31%
26%
13%
60.38%
26%
0%
20%
40%
60%
80%
100%
I am unwilling to paymore
Would pay more ifthe tourist products werebetter
Would pay more ifthe tourist products wereMore exclusive
Would pay more ifthe tourist products belongedto a prestigious brand
NRNoYes
Would pay more ifthe tourist products weremore exclusive
Would pay more if the tourist products belongedto a prestigious brand
1%7%
24%
39%
29%
47%
16%
17%
9%
10%
1%1%6%
52%
40%
1%1%4%
32%
62%
3%6%
21%
38%
32%
1%2%10%
42%
45%
26%
27%
33%
10%
3%
0%
20%
40%
60%
80%
100%
(A)It’scheaper
(B)It’s dearor dearer
(C)It providesqualityservice
(D)It providesvalue for money
(E) It providessomethingunique
(F)Friendlyservice
(G)A place withan excellentreputation
Very important - JFairly important - KNeither - LNot very important -MUnimportant - N
Quality factors linked to price.
Source: ESADE – eDREAMS 2006
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
(A) (B) (C) (D) (E) (F) (G)
J
K
L
M
N
2006
2005
Does a higher price always mean greater quality?
6%
78%
16%
Yes No No response6%
93%
1%
2006
2005
7% 2%
46%
2% 2% 6% 4%21%
6% 5%
73% 87%
33%
83%73%
46%67%
47% 77%65%
19%11%
20% 15%25%
48%29% 32%
17%30%
0%
20%
40%
60%
80%
100%
Hotels
Restau
rants
Flight
Bars
Shops
Museu
ms
Shows
Car hir
e
Taxis
Congre
ss se
rvice
s
The sameDearerCheaper
Source: ESADE – eDREAMS 2006
Tourist price trends over the last three years in Spain
0%
20%
40%
60%
80%
100%
Hotels
Restau
rants
Flight
BarsSho
ps
Museu
ms
Shows
Car hir
eTax
is
Congre
ss se
rvice
s
SameDearerCheaper
2006
2005
Future price trends
15%3%
37%
3% 4% 7% 6%18%
5% 5%
63% 81%
41%
80% 74%
50%69%
53% 79%
53%
21% 16% 22% 17% 22%
43%
26% 29%16%
42%
0%
20%
40%
60%
80%
100%
Hotels
Restau
rants
Flight
BarsSho
ps
Museu
ms
Shows
Car hir
eTax
is
Congre
ss se
rvice
s
SameDearerCheaper
Source: ESADE – eDREAMS 2006
2006
0%
20%
40%
60%
80%
100%
Hotels
Restau
rants
Flight
Bars
Shops
Museu
ms
Shows
Car hir
eTax
is
Congre
ss se
rvice
s
Same
DearerCheaper
2005
Source: ESADE – eDREAMS 2006
Information search systems
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
(A) (B) (C) (D)
JKLM
N
2006
2005
1%2%7%
30%
61.0%
4%8%
24%
43%
20.1%
20%
27%
24%
22%
7.6%
10%
19%
34%
28%
8.7%
0%
20%
40%
60%
80%
100%
(A)Through theInternet
(B)Through themedia, guidesand travel books
(C)Throughtraditional travelagents
(D)Throughfriends and relatives
Strongly preferred - JPreferred - KNeither - LLittle preferred - MStrong negative preference - N
Purchasing channels
2006
Source: ESADE – eDREAMS 2006
2005
0%
20%
40%
60%
80%
100%
(A)
(B)
(C)
(D)
(E)
J
K
L
M
N
10%
12%
20%
32%
26%
7%9%
13%
35%
36%
17%
17%
22%
30%
14%
29%
23%
20%
22%
6%
17%
17%
22%
26%
19%
0%
20%
40%
60%
80%
100%
(A) Airli
ne w
eb si
tes
(B) O
nline
trave
l age
nts
(C) T
raditio
nal tr
avel
agen
ts
(D) B
y pho
ne
(E) In
perso
n
Strong preference - JPreferred - KNeither -LLittle preferred - MStrong negative preference -N
Is it always possible to find the cheapest price?
9%
42%
49%Yes
No
In most cases
Source: ESADE – eDREAMS 2006
5%
48%
47%
Y N In most cases
2006
2005
Important attributes when choosing a holiday
1% 1%13%
1% 1%1% 1%
18%
2% 3%4%
37%
12% 12%32%
43%
23%
49% 41%
63%51%
9%
36% 43%
5%0%
20%
40%
60%
80%
100%
Cheap
Good s
ervice
Famou
s bran
d
Conve
nienc
e
Reliab
ility
Very importantFairly importantNeitherFairly unimportantNot at all important
2006
CONCLUSIONS 2006
1. In the second year of the ESADE-eDreams survey, the general reason for "visiting the place" continues to be the most common reason for making the trip; the tourist destination needs to be attractive, novel, and to facilitate socialisation. However, the importance respondents placed on that most passive of reasons - relaxation - and the decline of culture and business as reasons for travel are particularly noteworthy features in this year's survey.
2. 40% of respondents said they had 30 to 39 days of holiday a year; 20%, had between 20 and 29 days. A slight change compared with the previous year was an increase in the proportion of respondents taking 10 to 19 days a year. With regard to the number of days spent on travel, those spending 20 to 29 days remain about the same (27%), there is a fall in those spending 10 to 19 days, and a slight increase in those spending over 30 days.
CONCLUSIONS 2006
3. The number of people travelling 2-3 times a year and 4-6 times a year rose, while those travelling over 7 times a year fell.• The amount spent by Spaniards on travel rose. The percentage of
those who said they spent the same or more than in the previous year rose to 85%.
• Demand for cheap tourist products through the Internet strengthened. The percentage of those unwilling to pay more on tourism fell. This means there is increasing interest in value for money and a stronger belief that higher prices mean greater quality. Exclusiveness and brand prestige continue to attract 30 and 15% of respondents, who value these attributes highly.
CONCLUSIONS 2006
4. A greater percentage of respondents believe that there has been an improvement in the quality of tourist products.
5. Tourists consider that prices have rocketed in most tourist services, with the exception of flights and museums. A smaller number of respondents believe that hotel prices will increase. The remaining respondents believe that hotel prices will remain more or less the same.
6. Increasing use is being made of the Internet: the media, brochures and traditional travel agencies are holding their ground.
CONCLUSIONS 2006
7. From the standpoint of travel purchases, online travel agency webs were much more popular than company web sites (36% strongly preferred agency web sites compared with 26% in the case of company webs, a reversal of the findings for the previous year). Impulse purchasers are becoming much more important (19% increase in strong preference compared with last year). Traditional tourist agencies have picked up slightly (14% showed a strong preference). In this respect, travellers continue seeking the cheapest prices, which confirms what we found in the majority of cases for the Internet.
8. Price is the most important attribute when choosing a holiday, followed by service and reliability.