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One in three travellers planning to spend more on travel in 2016, according to TripAdvisor study

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TripBarometer study unveils top travel trends for 2016 according to more than 44,000 traveller and hotelier respondents worldwide: Special offers determine the choice of destination for one in two travellers; Almost half of hoteliers globally plan to increase room rates in 2016.

LONDON, UK – TripAdvisor announced the results of the latest TripBarometer1 study, the world’s largest accommodation and traveller survey, highlighting key travel trends for 2016. Conducted on behalf of TripAdvisor by independent research firm Ipsos, the TripBarometer study is the analysis of more than 44,000 survey responses from travellers and the hotel sector worldwide. The TripBarometer ‘2016 Travel Trends’ report presents a snapshot of the travel landscape for 2016, revealing country-level, regional and global travel trends.

Chief among the findings:
  • One in three global travellers plan to increase their travel budgets in 2016, with 49 percent saying they’ll spend more because they feel as though they and their family deserve it;
  • Special offers determine the choice of destination for one in two travellers
  • Sixty three percent of travellers will look elsewhere if a hotel does not have air-conditioning, making it the number one deal-breaker for booking decisions, ahead of the property’s wifi offering.
“Value is key for global travellers in 2016, as they look to get the most out of their trips. While a third plan to increase their travel budgets for next year, the majority of global travellers expect essential amenities, such as wifi, to be included in the price of their hotel and more than half say special offers can play a big part in their choice of destination,” said Helena Egan, director, global industry relations, TripAdvisor. “This year’s TripBarometer reveals the key trends shaping the travel landscape for 2016, including hoteliers’ plans to increase room rates and invest heavily in online reputation management.”

Sense of merit and perceived health benefits drive increase in travel budgets for 2016
One in three travellers globally plan to spend more on their trips in 2016. This drops to one in four when looking solely at European travellers. The number one reason travellers will increase their travel budgets next year is because they feel that they and their family deserve it. One in three will spend more because they believe travel is important for their health and wellbeing, and one in four will spend more because they plan to visit long haul destinations. Australians will spend the most in 2016, with an average travel budget of $10,868.

Special offers determine the choice of destination for over half of global travellers
A destination’s culture and society is far and away the most popular individual driver for travellers considering where to take a trip, with 47 percent of respondents saying they visit a country because of its culture and people.

However, more than one in two travellers say they have chosen a destination as a result of special offers. Accommodation packages are the leading type of special offer for influencing travellers’ selection of destination, with one in five (21%) saying they have chosen to visit somewhere because of a hotel’s special offer.

Recommendation power is important when it comes to choosing a destination with almost a third of travellers (29%) saying they have visited a destination because it was recommended by a friend or relative.

Staying cool and connected are the top dealbreakers for global travellers
When it comes to amenities, whether or not a hotel has air conditioning is a deal-breaker for potential guests. Sixty three percent of travellers want their accommodation to have air conditioning, and it needs to be included in the price; if not, they will look elsewhere. Similarly, almost half of all travellers globally (46%) will not consider a hotel that doesn't have free wifi, although one in 10 (11%) say they would be willing to pay extra for super-fast wifi.

One in four travellers (26%) won’t book a hotel that doesn’t have a swimming pool, and almost a third of travellers (29%) will look elsewhere if the accommodation they’re considering doesn’t have a kettle.

Room rates on the up around the world
Globally, 47 percent of hoteliers are raising their room rates, with accommodation owners in South America the most likely to do so (56%). Most of them are increasing rates to compensate for increased overhead costs (65%), although more than a third are increasing rates because they recently completed renovations (37%) and due to increase demand (35%).

Three in four business owners are optimistic about profitability in 2016, and the majority of those who are believe that local events and conferences taking place in their market will a positive impact on their business. Changes in tourist attractions in the area (54%) and changes in the number of restaurants and shops in their area (47%) are also factors hoteliers believe will positively impact profitability in the coming year.

Online reputation management still topping the list of investment priorities for 2016
Online traveller reviews are cited by 93 percent of accommodation owners as being the most important element for the future of their business. It’s no surprise then that online reputation management remains the biggest area of planned investment for hoteliers in 2016, with 59 percent investing more in this area next year.

The vast majority of hoteliers see increasing direct bookings (91%) as key for the future of their business. This explains why just under half of all accommodation owners plan to invest more in marketing and advertising (48%) and traffic acquisition (47%) in 2016.

U.S. Travel Trends of 2016
Seventy-eight percent of U.S. travelers plan to spend more or the same in 2016, which is the third largest annual travel budget among countries globally:

Top 10 Markets that Intend to Spend the Most in 2016

(average of all countries after conversion into USD)
1Australia$10,900
2Switzerland$10,100
3United States$8,400
4United Kingdom$8,300
5New Zealand$8,000
6Canada$6,500
7Austria$6,400
8Germany$6,300
9France$6,000
10Argentina$5,900

Top Reasons U.S. Travelers Will Spend More on Travel in 2016
  • Because they/their family deserves it (46%)
  • Going somewhere on their wish list (46%)
  • Going on more long trips (38%)
  • Longer length of trips (34%)
U.S. Baby Boomers plan to spend $10,600 on travel in 2016, twice as much as Millennials ($5,300). This is higher than the global averages – $8,700 and $2,900, respectively.

Ninety-six percent of U.S. travelers are planning a domestic trip in 2016 compared to the global average of 90 percent. Seventy-two percent are planning an international trip, which is slightly lower than the global average of 85 percent.

Top Reasons U.S. Respondents Choose Travel Destinations
  • Culture of the destination (50%)
  • Recommendations from family and friends (36%)
  • Events (34%)
  • Special offers/packages at hotel or accommodation (27%)
When selecting accommodations, cost is the key consideration for travelers in the U.S. – 94 percent of respondents named price as the most important factor when booking the accommodation for their last trip. Accommodation ratings (90%), TripAdvisor reviews (89%), proximity to attractions (86%) and dining options (79%) also ranked high on the list.

U.S. Traveler Quirks
The Top 5 Things U.S. Travelers Won’t Leave Home Without
  • Toiletries (77%)
  • Smartphone (74%)
  • Camera (57%)
  • Clothing for special occasions (56%)
  • Adaptor (51%)
U.S. travelers rank as the fourth most “germophobic” in the world, with 37 percent listing hand sanitizer as a travel essential, compared to 23 percent globally. They value their beauty rest as well – 13 percent bring their own pillow, higher than the global average of six percent.

Amenity Deal Breakers
Certain amenities will make or break a hotel’s chances of earning a booking. U.S. travelers expect more for less, and will book elsewhere if an accommodation does not offer:
  • Air-conditioning (70%)
  • In-room Wi-Fi (42%)
  • Parking (38%)
  • Safe deposit (25%)
  • Breakfast (24%)

 

Tripbarometer Americas Dec 2015

 

Tripbarometer Global Dec 2015

TripBarometer Travel Trends 2016



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