visa travel intentions 2015

7/17/2019 Visa Travel Intentions 2015

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Visa Global Travel Intentions Study 2015EXECUTIVE SUMMARY | Prepared by Millward Brown

Visa Global Travel Intentions Study 2015 | Prepared by Millward Brown



Visa Global Travel Intentions Study 2015 | Prepared by Millward Brown2

*Have either travelled in the past 24 months or intend to travel in tbusiness/leisure (non-domestic travel only).

› AFRICA & MIDDLE EAST: Egypt, Kuwait, MoroAfrica, United Arab Emirates

› AMERICAS: Brazil, Canada, Mexico, United Sta › ASIA PACIFIC: Australia, China, Hong Kong, InKorea, Malaysia, Singapore, Taiwan, Thailand

› EUROPE: France, Germany, Russia, United King

Interviews were conducted online, with the exceMorocco and Saudi Arabia where interviews wethe assistance of laptops.

Regions included in the

Fieldwork Methodolog

› AFFLUENT: Respondents who f

listed in the Appendix of this re‘Affluent’

› SOLO TRAVELLER: People who themselves throughout the whrecent leisure trip

› SUPERBOOMERS: Travellers ag

› MILLENNIALS: Travellers aged

Sub-group Denition

The Visa Global Travel Intentions Study 2015 was commissioned by Visa toMillward Brown. The study was conducted with 13,603 travellers*, aged 18years and above across 25 countries in January and February 2015.




Foreword

SHIFTS AND CHANGES: Current a

leisure travel

ASIA ON THE RISE: Asia’s appeal the Chinese traveller

A NEW BREED OF TRAVELLER: Chbehaviours of leisure travellers

THE SOLO TRAVELLER

TECH SAVVY TRAVELLER

PAYMENT CHOICES OF LEISURE T

The travel and tourism industry continues to play a signicant part to globaleconomies. According to the World Travel and Tourism Council (WTTC),travel and tourism generated US$7.6 billion in 2014 - 10 percent of globalGDP. This is expected to grow by 3.7 percent in 2015. There were almost1.14 billion international tourists arrivals in 2014 and with visitor spendingmatching that growth, this industry remains an exciting one with signicantopportunities for the world’s largest industries. Considering the scale of the industry, it is vital to analyze and understandthe travel behavior and tourism spending patterns of these global travellersto help unlock the potential this industry presents to developed andemerging economies alike. Tourism provides a gateway to economicprogress by helping to grow revenue, promote job creation, and accelerateinfrastructure development. And with increased acceptance of reliable andsecure electronic payments, every traveler who uses a card to pay or buy

goods and services is exponentially contributing to growth. The Visa Global Travel Intentions Study has been regularly updated andpublished since 2006, and this latest installment is showing that withgreater options, leisure travel is touching a wider mass. Regardless ofeconomic or political highs and lows, leisure travellers are still optimisticabout their future plans. This latest 2015 global update is part of Visa’scontinued commitment to helping industry players, including governments,in their pursuit of growth of the global travel and tourism industry.

1

654

32




Shifts and changes: current and future macrotrends in leisure travel



Leisure travel touches a wider mass

Global 2.17 (13603)

Asia 2.52 (6531)

Europe 2.53 (2012)

Africa &Middle East

1.02 (3053)

Americas 2.42 (2007)

Global 76% (13603)

Asia 84% (6531)

Europe 81% (2012)

Africa &Middle East

54% (3053)

Americas 79% (2007)

People around the world kept travelling more than ever before this year despitewars, terrorist attacks and a growing fear of pandemics as well as divergingeconomic conditions. The number of outbound trips increased by a robust 4.5percent over the rst eight months of 2014 and the prospects are bright for nextyear as well.

Source: ITB World Travel Trends Report 2014/2015

85% 52 89 67 90 69 9

20 84% 8 44 80 98 8

-64%

Indonesia Thailand Korea M

Morocco EgyptSaudiArabia Au

-36% -18% -

+33% +22% +21% +

2015 2013

Base (13603) (12631)


Travelled in past two years for leisure

Average no. of leisure trips made in the past two years

All regions - except for the Middle East and Africa - indicate they travelledmore in the past two years as compared to the global average.

The increase in outbound travel comes from Soucountries. Countries in the Middle East and Nordecline in outbound travel. This is likely due to ieconomic instability in the region.

With more new travellers joining the fold,the average number of leisure trips taken

per traveller is experiencing a small decline.

79%76%

2.17 3.12

2015 201

2015

2013

Countries with the highest increatravel in the past two ye

Countries with the highest decreatravel in the past two ye



62% 8%

95% 73% 91% 77%

63% 20% 81% 51%

+22% +14%

CHANGE %+43%+54% +30%

CHANGE %

South Africa

China Kuwait

MoroccoEgypt

Optimistic about the future Trip length

2016 2015


Countries with the highest increase in leisure travel in the next one year Average number of nights spent in most rec

Travellers from Middle East and Africa are feeling optimistic about futuretravel with one in two intending to take a holiday in the next one year.

Globally, the average length of a holiday declineAsia were the only group that increased their av

Asia Europe

2015 Base: (5463) (1622)

2013 Base: (4292) (1784)

2015

Asia

Europe

Africa & Middle East

Americas

13

118

Africa & Mi

A

15

92015

In Egpyt and Morocco, this optimism is driven mainly by Millennials aged25-35 years old. In South Africa, Superboomers aged 45 and above areshowing more enthusiasm in travelling in the next one year.

9



Saudi Arabia Egypt China Brazil Australia

$5866 $4917 $4780 $3942 $3603

(370) (31) (716) (330) (374)

Egypt Brazil Mexico Indonesia China

+100% +33% +30% +30% +25%

(31) (330) (376) (413) (716)

Budgets are tighter

36%

28%

In

M

Malaysia Hong Kong UK Germany France

$1145 $1290 $1297 $1297 $1297

(449) (462) (417) (389) (357)

France Germany Morocco Canada Taiwan

-33% -33% -25% -20% -20%

(357) (389) (94) (377) (392)


Top ve spenders in 2015

Bottom ve spenders in 2015

Top ve increase in spending between 2013 and 2015

Media

Top ve decrease in spending between 2013 and 2015

Travellers are tightening their belts, resulting in a general decline in leisure travel spend. Over half of the countries surveyedhave either maintained or decreased their travel expenditure. On a brighter note, almost all countries with the exception ofthe current top three spenders – Saudi Arabia, Egypt and China, are expecting to spend more in their next holiday. Below arethe median travel budgets per trip as reported by travellers.

Base

$22



8%Give back

9%Show off/Prestige

11%Familiarity with destination

15%Keep up with trends

26%Escape

19%Personal Passion

52%Bonding

38%Experience cultures

36%Rest & Relax

33%Indulge

26%Entitlement/Rewarding self

28%Wanderlust/Adventure

Base: (10309)

Motivations for most recent overseas leisure trip

Superboomers (those aged 45 and abovbonding through travelling. Three out ocompanion in their last holiday.

Status and luxury travel is increasingly imin 2015 (almost double of 2013) cite thinext holiday.

Being able to pursue their personal pasthe top three motivations for Brazilians

DID YOU


23%Family vacationduring holiday

15%Annual scheduled

getaway

12%Get away from

stress

Triggers / source of inspiration for most recent overseas leisure trip

Motivations and inspirations of travelCommon triggers for holidays include family vacations, annual scheduledgetaways and taking time off to de-stress. Hence, key motivations for leisuretravel today is a balance of bonding with loved ones, experiencing newcultures and to rest and relax.



USASpain Italy Greece Turkey USA

27%

18%14%

42%

Japan Singapore Hong Kong UA

27%21% 20% 16

i i i l

l i i i i

1 2 3 4 5 6 7 8 9

1 2 3 4 5 6 7 8 9

Malaysia

JapanSpain

ItalyAustralia

U S A

J a p a n

H o n g

K o n g

U K

A u s t r a l i a

S i n g a p o r e

F r a n c e

C h i n a

T h a i l a n d

U S A

U K

F r a n c e

C h i n a

H o n g

K o n g

S i n g a p o r e

T h a i l a n d

2013Base: (10009)Base: (10309)

2015

DID YOU KNOW?

The environment and types of activities available to travellers are what madeUSA, Japan, Hong Kong, UK and Australia the top ve destinations in 2015.


Most visited destinations in the past two years

Travellers from Europe

Intra-regional travel dominates and USA is still the top choiceIntra-regional travel is still the most popular. Whilst the USA remains the number one place to go, some European mainstays such as Franway to Asian destinations like Japan in 2015.

Travellers from Asia Pacic Trave

Top three destinations by travellers from each



l l l I i – ill i i i l

ItalyTurkey

Thailand

CanadaEgypt

KoreaSpain

Hong Kong

UAE

l i i i i i l i i i i

1 2 3 4 5 6 7 8 9

l i

i

I lli

U S A

J a p a n

A u s t r a

l i a

U K

F r a n c e

l i

i i

i l i

i

i l

Japan Australia USA Tur

13%10%

6%

12

USSpain Italy USA

9% 8%6%

22

Base: (12019)

2016


Top 10 destinations in the next one year

Travellers from Europe

Future outlook of travel destinationsEuropean destinations still appear to be popular for future travel. Whilst travellers from Asia aspire to travel further to the West in the futAmericas are intending to stay within the region.

The outlook forEuropean destinationsis positive and could bedriven by expectationsof further depreciationof the Euro.

Travellers from Russia love to travel to EuropThey are also the largest source of tourists fo

DID YOU K

Travellers from Asia Pacic Travelle

Top three destinations in the ne



l l l I – ll l

2016 2015 2013

(12019) (10309) (10009)

31%Fit my budget

32%Good weather /

season

36%Has good

attractions

34%Good weather /

season

33%Has good

attractions

37%Has good

scenery

29%Has a rich

culture / heritage

32%Has good

scenery

33%Has a rich

culture / heritage

I ' i i i i i Ii i i i i

I ill i l I l

Visiting a friend or a relative is the most important fafrom UAE when they choose their travel destination.done so on their most recent holiday.

DID YOU KNOW?29% I will keep strictly to the budget I planned

Budgeting approach


Top three reasons for destination choice

Good scenery and attractions lure travellersDespite budget being one of the key factors in determining their traveldestination, travellers are increasingly prioritising good scenery and attractions.




Asia on the rise: Asia’s appeal to travellers andfocus on the Chinese traveller



l l l I i ill i i i l

Asia

Africa

Americas

Australasia / Oceania

Europe

Middle East

40%

19%

52%

16%

30%

45%

5%

12%

26%

40%

21%

6%

0%0% 100%


(10309) (12631) (12019) (11715) Base:

ll l

i

i

i

l i i

i l

2015 2013

Incidence of intra-regional travel in the next on


Incidence of intra-regional travel in the past two years among ALL travellers

Popularity of Asian destinationsA rising amount of intra-regional travel amongst Asian travellers is the primary cause of Asia’s growing popularity. This trend is supporteof non-Asian travellers such as those from France, Russia and UAE, who are also choosing to holiday in Asia.

One in every two travellers visyears, with places like Hong Kobeing the most attractive dest

One in ve non-Asian travelletwo years.

DID Y

Chi ll



25% ▲ $4780 -6%

% change from2013-2015

2015 (USD, Median)*

Future spend %change

(10309)

Average no. of activities per trip

Trekked / backpacking

Visited the local night

scene such as clubs,bars, etc.

Participated inlocal festivals

3.55

Global China

Travel activities

Global

I will keep strictly to thebudget I planned

46

29%

Search for the best experienceand then sum up the amount

before making adjustments

Almost one in two Chinese travellers have shopped forluxury goods on their most recent trip.

One in two Chinese travellers have shopped at airport dutyfree stores.

Chinese travellers love to buy local food specialties assouvenirs. Three in ve did so on their most recent holiday.

DID YOU KNOW?

Australia, France and Japan are thetop three intended destinations forChinese travellers in the next one year.

DID YOU KNOW?


Global China

Budgeting approa

Chinese travellersare willing to spend more Experience > CostThe spending power of Chinese travellers has increased over the past two years. For Chinese travellers, creating the best travel e

the actual cost of it. On average, Chinese travellthan the global average.

*The value used is median. The 2015 spend data has takenthe assumption of constant exchange rate across 2013 and

2015, using 2013 exchange rate.




A new breed of traveller: the changing attitudand behaviours of leisure travellers



l l l I – ll

40%

60%

201524%

16%

Base: (10309)

30%

2

10%

20%

Base: (1000

PACKAGE

INDEPENDENT

Group

Personal

Personal Guided Tour

Group Package Tour

Tour Arrangement

Independent Arrangement


Blurring lines between work and play Seeking the bespokeTravellers are making the most out of their travel budget and time.Almost one in ve travellers combined both business and leisure in theirmost recent trip – the so called ‘Bleasure’ phenomenon.

More travellers are striking the middle ground, smaintaining their independence. Almost one in tours and a customised itinerary.

Travel arrangement for most recent overseas leisIncidence of most recent overseas trip that combines both leisure and business

Millennials and afuent travellers are showing agrowing interest in personal guided tours with nearlyone in ve opting for this arrangement – comparedwith one in 10 in 2013.

DID YOU KNOW?

More than two-thirds of Chinese travellers (67 percent) say they bring a spouse or a family

member along on business trips and 59 percent extend business trips to include leisuretime. InterContinental Hotels Group (IHG) in South-east Asia also notes a 50 percent rise inbleasure bookings among meeting delegates, who add on a leisure stay pre orpost-meeting.

Source: It’s a bleasure, TTG Asia, 2012

The majority of the ‘Bleasure’ travellers come from Asia and are young workingprofessionals/executives.

‘Bleasure’ travellers spent an average of 10 nights on their most recent trip.

When choosing accommodation, ‘Bleasure’ travellers place higher emphasis on safety,accessibility to wi and uniqueness of the accommodation than a leisure traveller.

DID YOU KNOW?

16%

16%

Base: (13603)

2015



Send / receiveemails

Shared experienceabout holiday

Share / sendpictures

2015 2013

53% 41%

2015 2013

Online sharing during the

Base: (5139) Base: (7032)

Base: (10


Being spontaneous

Time taken to plan travel itinerary for most recent overseas leisure trip

One month in advance or less

Travellers are becoming more spontaneous. One in two planned their lastholiday in a month or less.

Travellers from Egypt, China and Hong Kong are the top threemost spontaneous groups of travellers in terms of planningtheir travel itinerary.

DID YOU KNOW?

Travellers from Singapore love to stay connectewould actively search for accommodations withwhen they choose their accommodation.

DID YOU KNOW?

Disconnecting to connBeing online is still important for travellers - butto work and school. There is a growing preferenonly with their social networks to share informat




The solo traveller



2015 2013

15%24%

Base: (9997) Base: (8894)


DID YOU KNOW?

Incidence of those who travelled alone throughout their most recentoverseas leisure trip

Solo travel is following an upward trend. One in ve have travelled on theirown on their most recent leisure trip. Interestingly, there are more ‘WanderWomen’ in 2015 – women who choose to travel alone.

Going solo

Almost half of the solo travellers are professionals/executives and they comefrom Asia – specically China and India.

Solo travel has more than doubled amongst afuent and rst-time travellers.32 percent up from 14 percent for the afuent and 37 percent up from 16percent for rst-time travellers..

18 percent of Superboomers travel solo, up from 16 percent in 2013, showinga slow but steady increase.

“Majority of the women in Southeast Asia travel alone bfreedom of doing whatever they want (60 percent), theychallenge of travelling on their own (45 percent), and thhave the time or resource to travel with them (32 perce

Source: TripAdvisor Women’s Travel Survey 2015

Set on their destination but Engaging in activities t



I knew the destination I wanted to go to and did NOT consider others

I considered A FEW possible destinations before choosing the destination I went to

56%

44%

31%

Base: (10309) Base: (2485)

GlobalSolo

Travelers

69%

Base: (5139) Base: (1046)

1 monthin

advanceor later

53%2015

53%Solo Travelers

One


Volunteered for not-for-profit organisations

Attended sportingevents

Engaged in

water sports

Trekked / backpacking

Engaged insporting events

Engaged inextreme sports

Global Solo Travelers

Travel activities in most recent overs

Set on their destination butspontaneous about their itineraries

Engaging in activities tto their passions

Solo travellers tend to zoom into a single destination rather than considera set of options.

Solo travellers tend to engage in active pursuits and attending sporting events.

USA, Australia and Canada are the top three favdestinations for solo travellers who want to engsporting events/activities.

DID YOU KNOW?

While they are early in terms of xing their destination, they display thesame spontaneity as the average global traveller in planning trip itineraries.

Global Solo Travellers Bas

Time taken to plan travel itinerary for most overseas leisure trip



Solo travellers from Korea, India and USA are the top seekers forpersonal guided tours in the past two years. Two in ve of them do so.

DID YOU KNOW?

Global Solo Travellers

2015 2013

40%

60%

Base: (10309)

24%

16%

25%

35%

54%

Base: (2485)

22%

24%

20%

34%30%

70%

Base: (10009)

20%

10%

28%

42%

5

Global

46%

Tour Arrangement Group Package TourIndependent Arrangement Free and IndependePersonal Guided Tours Free and Easy


Seeking the bespoke travel experiencePersonal guided tours are also increasingly popular among solo travellers. The number of solo travellers that seek this type of travel arranalmost three-fold compared to 2013.

Travel activities in the most recent overseas leisure trip




Tech savvy travellers



l l l I – ll l

82% 61%

Planning

53% 64%

Booking (Package)

76% 61%At Destination

58% 45%

Booking (Independent)

TRADITIONAL ONLINE

78% 71%

Planning

47% 36%

Booking (Package)

66% 57%At Destination

72% 65%

Booking ( Independent)

2015 Data/ 2013 Data


Source of information

Information at their digital ngertipsToday’s traveller has a voracious appetite for all manner of informationfrom both traditional and online sources to plan their trip before and atthe destination. The rise in digital use of information is also a phenomenonthat transcends travellers of all ages and levels of afuence.

DID YOU KNOW?

Travellers from Kuwait and Saudi Arabia are still predominately depending onofine sources when they plan for their holiday.

Six in 10 travellers from Egypt use online sources when they plan for theirholiday. This is a four time increase compared to 2013.



Before trip During trip

Any Mobile Device

Tablet

Mobile Phone

Any Computer

2013

(8078) (6785) (6720) (5699)

40%

42%

75%

64%

60%

68%

62%

52%

2015


0%

Base:

0% 100%



Mobile usage on the rise

DID YOU KNOW?

75 percent of Asians will share news of their upcoming holiday online ascompared to only 68 percent of travellers from the Americas, 55 percent ofthose from Europe and 50 percent from Middle East and Africa.

Almost all travellers from India and Brazil would share their holidayexperiences online while they are still at the destination.

Nine out of 10 travellers from Kuwait used their mobile phones during theirholiday to access information online.

Mobile devices are the most important gadget for travellers. Most travellers use their mobile device to access information sites about thetheir travel journey. Channels used to access online information on

the most recent overseas leisure trip

Search

Review

Information aboutdestination

73

73

89

Types of online sources accessed in 2015



65%South Africa

25%Russia

19%Kuwait

24%Egypt

I –

i i i i

i i l i

I i ii i i i

i

45%i i lii

l l l I – ll l

i i i i

i i l i’

I i ii i i i

i

i i lii


Reviews for tours / activities


Prices to be displayed in mycountry’s currency


Interactive maps withaccommodation, activities

and attractions


Price comparison for flights / accommodation

I –

17%i i i i

i i l i

I i ii i i i

i

i i lii

I –

i i i i

11%i i l i

I i ii i i i

i

i i lii

I –

i i i i

i i l i

8%I i i

i i i i

i

i i lii

l l l I – ll l

i i i i

i i l i’

I i ii i i i

i

i i lii

l l l I – ll l

i i i i

i i l i’

I i ii i i i

i

i i lii

l l l I – ll l

i i i i

i i l i’

I i ii i i i

i

i i lii


Most useful features considered for travelapplications / websites used in planning one’s next trip Most useful to?

Reviews and price comparisonaggregators are most useful whenplanning future trips




Payment choices of leisure travellers



Seven in 10 travellers from Canada use only card during their bookingstage (pre-travel). On the other hand, seven in 10 travellers fromMorocco use only cash during their booking stage (pre-travel).

DID YOU KNOW?

l l l I i – ill

DURING

58%

42%

2015

CARDS ONLY 2%

CARDS ANDCASH

81%

CASH ONLY 17%

BEFORE

CARDS ONLY

46%

CARDS AND CASH

13%

CASH ONLY

15%

Overtimthe deson a decl

a com


Distribution of travel expenditure on the most recent overseas leisure trip

Cards are a predominant mode of payment in the booking stage and eight out of 10 people areusing a combination of cards and cash while at their destination.

Payment card usage strong throughout holiday



Prefer Visa whe

payments over

48%

Base: (9974)


77%

54%

4%14%

3%8%

72%

51%

3%14%

2% 3%

Cash Credit card Charge card InternationalDebit /

Check / SalaryCard

Prepaid Travelcard

Traveller'sCheque

Base: (9543) (9088) Base:

2015 2013

While travellers from China and Japan are the top two groups of travellersthat preferred credit cards over cash, travellers from Kuwait are increasinglyfavouring the use of credit cards.

Those travelling from Kuwait who preferred using their credit cardsincreased by 1.5 times compared with 2013.

DID YOU KNOW?


Preferred mode of payment across all merchants

More travellers are choosing credit cards as their favoured mode of payment, with Visa being the most preferred brand for cross-border

One in two travellers prefer using credit cards at the destination

DID YOU KNOW?

29 percent of all respondents said that they will spendto use cards more frequently and at more merchants.

Of those who said this, 66 percent said that they woucard more often.

Almost one third of travel



i l

23%Dining

24%

10%Accommodation

9%

29%Retail30%

20%Activities

21%

7%Airfare

5%

Base: (8391) Base: (9236)

2015 Global Average

2013 Global Average

i i l

Indonesian travellers love to shop for souvdestination as almost all would bring somecontrast, only about seven in 10 travellers souvenirs at the destination.

Travellers from the UK love to dine. Their lexpenditure goes to dining and they spentheir overall budget on it.

DID YOU KNOW

34%Local arts and crafts

30%Keychains/minaturestatues

23%Postcards

2015 Globa l Average 2013 Global Average

37%Local food specialities

37%Local apparel


Distribution of travel expenditure by type of merchant Top ve souvenirs purchased

expenditure goes into shoppingThe majority of spend at the destination is on retail, dining and tourist activities. This is largelyconsistent with 2013.




Asia Pacic

Afuent denitionRespondents who fall into the income bracket listed below are classied as “Afuent” travellers for the purpose of this Study. The denitiominimum income requirement for ownership of Visa premium cards.

Country Monthly Income

Australia AUD 8,501 & above

China RMB 10,001 & above

Hong Kong HKD 50,001 & above

India INR 80,001 & above

Indonesia IDR 15,000,001 & above

Japan JPY 747,001 & above

Korea KRW 7,000,001 & above

Malaysia RM 15,001 & above

Singapore SGD 11,001 & above

Taiwan TWD 67,001 & above

Thailand THB 100,001 & above

Europe, Africa and theMiddle East

Country Monthly Income

France EUR 4,851 & above

Egypt EGP 21,001 & above

Germany EUR 3,251 & above

Kuwait KD 1,686 & above

Morocco MED 25,001 & above

Russia RUB 70,001 & above

Saudi Arabia SAR 20,001 & above

South Africa ZAR 30,001 & above

United ArabEmirates

AED 25,001 & above

United Kingdom GBP 6,001 & above

Am

Country

Brazil

Canada

Mexico

United States ofAmerica

Visa Global Travel Intentions Study 2015 | Prepared by Millward Brown



NOTICE OF DISCLAIMERCase studies, statistics, research and recommendations are provided “AS IS” and intended for informational purposes only and should nomarketing, legal, technical, tax, nancial or other advice. You should consult with your legal counsel to determine what laws and regulaticircumstances. The actual costs, savings and benets of any recommendations or programmes may vary based upon your specic businerequirements. By their nature, recommendations are not guarantees of future performance or results and are subject to risks, uncertaintieare difcult to predict or quantify. Visa is not responsible for your use of the information contained herein (including errors, omissions, inof any kind) or any assumptions or conclusions you might draw from its use. Visa makes no warranty, express or implied, and explicitly dimerchantability and tness for a particular purpose, any warranty of non-infringement of any third party’s intellectual property rights. Toapplicable law, Visa shall not be liable to a client or any third party for any damages under any theory of law, including, without limitatioincidental or punitive damages, nor any damages for loss of business prots, business interruption, loss of business information, or other

the possibility of such damages.

visa travel intentions 2015

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