Global Travel Behavior Trends 2013

Visa‘s latest Global Travel Intentions Study 2013 has revealed that global cross-border tourism is thriving and travelers intend to increase budgets for their next trip by an average of 5% – with some holidaymakers even suggesting that they would more than double what they spent on their previous trip.

Visa’s regular barometer of travel trends indicates budgets are no longer among the top three reasons behind why travelers choose their next holiday destination. The pull of attractions, scenery and rich culture are instead stronger reasons for travel.

According to the Study, which surveyed 12,631 travelers from 25 countries, the average global travel budget of US$2,390 per trip is set to increase to US$2,501. Top spenders abroad in the past were the Saudi Arabians, spending an average of US$6,666 per trip, while Australian (US$4,118) and Chinese travelers (US$3,824) were not far behind. Future travel budget increases are especially high amongst Asian markets with a predicted increase of 46 percent – travelers from Singapore, Thailand and Hong Kong all plan to at least double the budget of their last trip in the future.

United States remains the top choice destination

Attractions, Scenery, and Culture were cited as the key drivers for a future trip regardless of destination. This desire to explore new horizons was evidenced by the latest UNWTO World Tourism Barometer, which revealed that international tourist arrivals grew by four percent in 2012 to reach 1.035 billion.

Visa’s Study revealed the United States ranked as the most popular destination choice for global travelers, both for trips taken in the past two years (17 percent) and for intended travel in 2013 (10 percent).

Other top destinations in 2011 and 2012 included the United Kingdom (UK) (12 percent), France (12 percent) and China, Singapore, Thailand and Hong Kong (all 10 percent). Looking ahead, regional travel is set to increase, especially in reflection of the growing popularity and economic strength of Asia Pacific (APAC). 31 percent of global travel is expected to be to Asia, and new APAC destinations such as Australia (four percent) and Korea (three percent) are making it on to the latest list of most preferred destinations for future travel.

Travelers also ranked Japan (five percent) and Australia (four percent) alongside the UK (five percent) as the top four intended destinations for future trips abroad.

The Rise of the Asian Giant

The increasing popularity of APAC is partially driven from within the region. Among travelers across the four global regions (APAC; the Americas; Middle East and Africa; Europe), respondents from APAC indicated strong intention (77 percent) to travel more in the future – with residents from nine of the region’s markets stating a higher intention to travel than the global average. Much of this increased travel is expected to take place within the region, where 80 percent of Asian travelers have chosen to take trips in the last two years.

APAC travelers are also spending more during their trip – those traveling within the region spent an average of US$273 per day, higher than both the global average (US$239) and any other region.

“The Asian markets have experienced a huge boom in tourism over the past few years due to the continued strength of their economies and the implementation of policies that promote cooperation and coordination in cross-border tourism. The ease of travel within the region, coupled with a rising middle class, has seen a growing demand for travel among the population and we expect this trend to continue into 2013 and beyond,” said Martin Craigs, Chief Executive Officer, Pacific Asia Travel Association (PATA).

Increasing Ease of Travel

An increasing ease and availability of travel options is fuelling the tourism boom. This is particularly prominent in the airline industry where 85 percent of travelers prefer to fly to their destinations despite a preference for shorter distances. Of this figure, most (71 percent) chose to fly economy class while, perhaps surprisingly, only 16 percent chose budget airlines.

A Profile of Today’s Global Traveler

The results of the study paint a picture of today’s global traveler. They are seasoned travelers, with 79 percent travelling in the past two years, taking 1-2 trips per year. 80 percent plan their holidays in advance, taking an average of 10 weeks to organize the trip. Spending time with family and friends was cited as the most popular (38 percent) reason for a holiday. These trips are more likely to be organized independently (42 percent) and will last an average of 10 nights. They choose hotels of four stars and above (39 percent) with 69 percent choosing to take a trip with family members.

More: corporate.visa.com

Chinese Travel Market & the World

According to the latest report published by UNWTO, China’s expenditure on travel abroad reached US$ 102 billion in 2012, making it the first tourism source market in the world in terms of spending. 

Over the past decade China has been, and still is, by far the fastest-growing tourism source market in the world. Thanks to rapid urbanization, rising disposable incomes and relaxation of restrictions on foreign travel, the volume of international trips by Chinese travellers has grown from 10 million in 2000 to 83 million in 2012. Expenditure by Chinese tourists abroad has also increased almost eightfold since 2000. Boosted by an appreciating Chinese currency, Chinese travellers spent a record US$ 102 billion in international tourism in 2012, a 40% jump from 2011 when it amounted to US$ 73 billion.

With this sustained growth, China has become the largest spender in international tourism globally in 2012. In 2005 China ranked seventh in international tourism expenditure, and has since successively overtaken Italy, Japan, France and the United Kingdom. With the 2012 surge, China leaped to first place, surpassing both top spender Germany and second largest spender United States (both close to US$ 84 billion in 2012).

Tourism Marketing & China

Destinations have been actively targeting China through their marketing campaigns to capitalise on the increased volume of this travel market and engage Chinese travelers. Let’s see some recent examples:

Tourism Australia Targets China through Mini Series

With China being one of its key markets, some months ago Tourism Australia commissioned a  “micro-film” to be broadcasted online at China’s video sharing site Tudou in five 45-minute segments.

The story chronicles the dramatic romance of a young couple, played by wildly popular duo Rainie Yang and Show Luo. Naturally, the romance kicks off in Australia. According to the media relations department of Tourism Australia, this is a great way of getting across Destination Australia content to a large audience, estimated at up to 10 million, across Greater China.

Tourism Australia sees the potential and high engagement of online video portals and platforms in reaching Chinese consumers nationally in China and across the region. Influential celebrities generate word of mouth, not only for the China market but also amongst the Greater China region.

Advocacy from influential celebrities and their own social media platforms greatly enhance product awareness and preference. The drama content and associated travelogue will also build knowledge of Australian travel experiences for consumers.

Show Lo is one of most popular celebrities in Greater China who, through his singing, acting and TV hosting activities, engages with nearly ten million followers on Sina.com and eight million followers on QQ—two of China’s leading social media platforms. Rainie Yang has more than 7.5 million followers herself on QG. (More on: www.brandchannel.com)

Tourism Queensland targeting Australia’s Chinese community

A new tourism campaign targeting Australia’s Chinese community has just launched in a bid to grow Queensland’s share of the international market and tempt Chinese residents either working or studying in Australia to holiday in Queensland.China is currently Queensland’s second largest and fastest growing international market, according to Tourism Research Australia as in 2012, the state welcomed 261,000 Chinese visitors who spent $468 million on visits, a year-on-year increase of 27 and 22 per cent respectively.

As the Minister of Tourism stated, “Chinese residents in Australia are in a position to advocate Queensland’s tourism experiences to friends and family, both here and in China, following visits to the state”. The campaign was introduced to VIP inbound tour operators, who are active in the local Chinese community at a series of events in Sydney and Melbourne this week.

In partnership with regional tourism organisations, Tourism and Events Queensland will host Chinese travel agents and media outlets based in Australia on visits which showcase the state first-hand. Marketing activities, promoting tailored holiday packages designed to appeal to Chinese residents will also feature in the campaign. The aim is to educate the local Chinese community about the diversity of Queensland’s holiday experiences and encourage more residents to travel to the state.

Sources: UNWTO, Queensland Government, www.brandchannel.com