Travellers are increasing their travel budget rather than decreasing it this year, according to the results of TripAdvisor’s biannual TripBarometer study.
The study shows that two in five travellers both globally (41%) and in APAC (42%) plan to up their travel budgets in 2015, while 23% globally and 20% in APAC say they will decrease their spend.
The TripBarometer “Global Travel Economy’ report” is the result of a poll among some 44,000 travellers and hoteliers throughout the workd, with 9,283 from the Asia-Pacific (APAC) region.
Two in five APAC travellers will increase their travel spend this year. (Image credit: GeorgePeters/iStock)
APAC countries with the highest increase in travel budget in 2015 are Thailand (54%, ranked #2 globally), India (53%, ranked #4 globally), New Zealand (51%, ranked #5 globally), and Australia (50% ranked #6 globally).
Within the Asia-Pacific region, Australia, New Zealand and China are the top three countries with the most travel budget in 2015, followed by Japan (US$5,700), which is ranked 11th globally.
The 10 countries with the most travel budget this year are Switzerland (US$12,100), Australia (US$ 11,700), New Zealand (US$ 9,500), United States (US$8,700), United Kingdom (US$8,400), Germany (US$ 7,600), Canada (US$ 6,900), Austria (US$6,800), Ireland (US$6,300), and China (US$ 5,900).
Other key findings in the study:
- Of the APAC travellers who are planning to spend more, 41% will increase their budgets because they feel vacations are something they or their family deserve, while 37% say they are going somewhere on their “wish list” this year.
- 28% of APAC travellers who are cutting spend this year say they do not have enough money saved, while 26% plan to visit less expensive countries.
- APAC travellers plan to do more travelling abroad, with the average number of international leisure trips set to increase by 15% this year, which is in line with the global average.
- Travellers in Turkey, India, and New Zealand are showing the highest increase in the average number of international trips they are planning this year, while Russians, Thais and Austrians are decreasing the average number of international trips they will take in 2015.
- Globally domestic travel still outpaces international travel, as nearly 60% of all trips planned in 2015 will be taken in travellers’ home country.
- Australia, the United States and Italy are the top three dream destinations for global and APAC travellers in the next 24 months, if money were no object.
- Nearly three in five APAC travellers (58%) say they are saving money to go on their dream holiday, and 49% of them are waiting until they have more time to explore the destination properly.
- Currency exchange rates are a barrier for 19% of APAC travellers hoping to visit their dream destination, while one in 10 are waiting for their children to be older before taking that once-in-a-lifetime trip. The report
The report notes the obstacles to travel (time and money) may affect more than just the dream vacation, as it highlighted yearly that more travellers plan to take international trips than ultimately go on them.
“The TripBarometer report paints a positive picture for travel this year, with travellers twice as likely to be increasing their vacation budgets than cutting spend,” said Barbara Messing, cmo, TripAdvisor. “Across the board, people want to take more international trips and Australia, Italy and the US continue to be the destinations topping travellers’ wish lists.”
About 50% of hotels in APAC intends to increase their room rates this year. (Image credit: Dorsett Cheras Kuala Lumpur, Malaysia)
This year’s TripBarometer also has a new feature – Hotelier Confidence Index – which measures confidence levels across the global hotel sector in 27 major tourism markets. The index looks at hoteliers’ profitability expectations, year on year shifts in room rates and investment plans for 2015. Each country is given a score on a five-point scale (five being the highest) and ranked, to show how they compare to other key tourism markets.
Indonesia ranks number one in the world on the index, followed by India and Mexico.Optimism is riding high for Asia-Pacific’s hotel sector with seven in 10 (70%) of businesses feeling optimistic about their profitability in 2015.
According to the study, one in two busineses in APAC (50%) intends to increase their room rates this year – often a strong sign of health in the hotel sector.
The report shows that investment is set to increase across many aspects of the hotel sector in 2015. However, the planned increase in investment for online reputation management is most notable worldwide.
In line with the global average, three in five APAC hoteliers (61%) will spend more on online reputation management in 2015. When asked which elements they feel are most important to the future of their business, online reputation is cited as important by 91% of APAC hoteliers.
“This year’s TripBarometer reveals a rising confidence in the global hotel sector, with one in two hoteliers raising room rates and a significant growth in optimism worldwide,” said Marc Charron, president, TripAdvisor for business. “Increasing repeat business, driving more direct bookings, and encouraging online traveller reviews will be key themes for the hotel sector this year.”
Download the regional reports here.
