Trends & Research

There is a New Top Travel Demo for Australia’s International Travelers

September 7, 2016 by Tom Berrigan

While USA Remains Top Long-Haul Destination for Australians, Younger Segments Have Higher Share: The Australian Bureau of Statistics (ABS) has just come out with a 10-year window of arrivals and departures data which show that Aussies will forego closer long haul destinations (New Zealand and Indonesia are short-haul) to make the trek to the USA.

The following table shows, in trend terms, the top ten destination countries for short-term resident departures in 2005-06 compared with 2015-16. New Zealand remained the most popular destination in 2015-16, with Australians making 1.2 million journeys there. Of the top ten destination countries in the year ending June 2016, short-term resident departures to Indonesia recorded the strongest growth over the ten year period, with a percentage change of 416.1 percent. It was followed by Japan (246.5 percent), India (199.2 percent) and the USA (135 percent).

The ABS data help to put into perspective the latest arrivals data released by the U.S. National Travel and Tourism Office—they cover the first quarter of 2016—which indicate a modest Q1 growth over the same period in 2015 of 3.1 percent in arrivals from Australia, despite a sharply weaker Australian dollar. Australia is the Number 8 overseas source market for inbound tourism to the United States.

Meanwhile, Younger Travelers are making a Greater Share of Trips Abroad: For male Australian residents departing overseas for a short-term stay abroad, the peak age group moved from 45-49 years in 2005-06 (11.1 percent) to 30-34 years in 2015-16 (9.7 percent). For females, the peak age group moved from 30-34 years in 2005-06 (9.6 percent) to 25-29 years in 2015-16 (9.5 percent). For males, the median age decreased from 42.3 years in 2005-06 to 41.8 years in 2015-16, while for females the median age increased slightly (39.7 in 2005-06 to 40.1 in 2015-16).

Study Names USA’s Top Cities for Tourism Quality

August 31, 2016 by Tom Berrigan

The USA’s top two gateway destinations—Los Angeles and New York City—fare well in the 2016 U.S. Tourism Quality Performance Index. Published annually by the Vancouver, Canada-based Resonance Consultancy, the Index measures tourism’s supply-side performance and competitiveness in 121 cities across the United States based on both absolute and indexed scales: the absolute scale measures the total number of “Quality 1” experiences; the indexed scale also evaluates performance in terms of how many quality1 experiences are delivered per visitor (i.e. the number of quality experiences per 100,000 visitors).

To formulate visitor estimates for each destination and create the indexed scoring, Resonance utilized a combination of data from the market research firm TNS Global’s 2015 visitor survey for domestic visitor counts and the U.S. Department of Commerce National Travel and Tourism Office (NTTO) Air Travelers’ Survey for international counts to create estimates for total visitors to each destination. Resonance selected destinations for this report based on the availability of adequate data from these two sources. It also used measures and ratings from websites that employ user-generated and other content. We have distilled the Performance Index’s principal categories and (see below) the tables that show the overall ranking in tourism quality performance for more than 100 U.S. cities.

The rankings that follow are based on an analysis of the number of products or experiences rated as “very good” or “excellent’ in 17 different areas. Resonance grouped them into six core categories:

—Culture: To measure culture in a destination, Resonance analyzed the number of “very good” and “excellent” recommendations in the Tripadvisor categories of museums, and theatres & concerts. The Index also included arts and entertainment rankings from Yelp – a wide-ranging category that includes venues like arcades and casinos, along with festivals, professional sports teams, stadiums and arenas, and jazz and blues venues. “Number 1 ranked LA is, in the minds of many, in full cultural flower.” Top 15: 1. Los Angeles; 2. New York City; 3. San Francisco; 4. Chicago; 5. Orange County; 6. San Diego; No. 7 Seattle; 8. Las Vegas; 9. Houston; 10. Austin; 11. Philadelphia; 12. Minneapolis; 13. Portland, Ore.; 14. Oahu; 15. Washington, D.C.

—Entertainment: To measure entertainment in a destination, Resonance analyzed the number of “very good” and “excellent” recommendations on TripAdvisor in the categories of amusement parks; zoos & aquariums; casinos and gambling; and fun and games. Rankings for shopping and nightlife were drawn from Yelp. “The increasingly seamless combination of high and low culture make L.A. appealing to many.” Top 15: 1. Los Angeles; 2. New York City. 3. Orange Country; 4. San Francisco; 5. Chicago; 6. San Diego; 7. Portland, Ore.; 8. Las Vegas; 9. Austin; 10. Seattle; 11. Orlando; 12. Houston; 13. Oahu. 14. Tampa/St. Petersburg; 15. Philadelphia

—Sightseeing: To rank sightseeing and evaluate the natural and built environment of a city, Resonance analyzed the number of “very good” and “excellent” rankings in TripAdvisor’s Sights & Landmarks, Nature & Parks, and Sightseeing Tours. Top 15: 1. New York City; 2. Oahu; 3. San Diego; 4. Hawai’i (Big Island); 5. Maui; 6. Tampa/St. Petersburg; 7. San Francisco; 8. Miami; 9. Las Vegas; 10. Seattle; 11. Charleston; 12. Phoenix; 13. Boston; 14. Chicago; 15. Los Angeles

—Sports and Adventure: Destinations’ outdoor activities and adventures were evaluated through TripAdvisor’s outdoor activities, along with boat tours & water sports categories. TripAdvisor’s outdoor activities category is a grab bag – depending on the destination, it can include everything from fishing charters and tours to kayaking and canoeing, stand-up paddleboarding, biking trails, golf courses, adrenaline and extreme tours, safaris, and scenic drives. Top 15: 1. Oahu; 2. Maui; 3. Tampa/St. Petersburg; 4. Hawai’i (Big Island); 5. San Diego; 6. Miami; 7. Fort Myers; 8. Fort Lauderdale; 9. Charleston; 10. Kaua’i; 11. Sarasota; 12. Phoenix; 13. Myrtle Beach; 14. Las Vegas; 15. West Palm Beach

—Culinary: To get a sense of the culinary experiences in a destination, we analyzed the number of very good and excellent reviews in TripAdvisor’s food & drink category, and Yelp’s restaurant reviews.

While Yelp’s restaurants category measures pure popularity, TripAdvisor’s food and drink reviews demonstrate how many different ways there are to explore the culinary landscape of place: in #4 Portland, for instance, there are breweries, brewery tours, distilleries, wine bars, wineries and cooking classes. All of which likely lead to enthusiastic reviews and highly “Instagrammable” moments. Top 15: 1. New York City; 2. Los Angeles; 3. Chicago; 4. Portland, Ore.; 5. Orange County; 6. San Diego; 7. Orlando; 8. San Francisco; 9. Houston; 10. Seattle; 11. Philadelphia; 12. Austin; 13. San Antonio; 14. Las Vegas; 15. Oahu

—Lodging: To evaluate accommodation in a destination, Resonance analyzed the number of “very good” and “excellent” reviews in TripAdvisor’s Hotels category. Some 50 million visitors stream into New York every year, and developers have been quick to build places for them to lay their heads. According to Bloomberg, the number of hotel rooms in the city has risen to more than 100,000, with 27,000 more planned or under construction–a 21 percent increase in the city’s room count in the past five years. The good news for visitors is that increased competition is reducing room rates. Top 15: 1. New York City; 2. Houston; 3. Phoenix; 4. Tampa; St. Petersburg; 5. San Diego; 6. Miami; 7. Orlando; 8. Orange County; 9. Fort Lauderdale; 10. Austin; 11. Las Vegas; 12. Seattle; 13. San Antonio; 14. Minneapolis; 15. Detroit

Overall Rankings: Overall rankings are awarded based on how many “very good” or “excellent” reviews are received by a destination regardless of its size or its number of visitors. While these rankings tend to favor larger cities–they have more experiences to review–it also provides a few surprises. Relatively small but social media-savvy Portland (#7) and Oahu (#12) punch far above their weight, a reflection of the large number of experiences that even a small destination can provide. In the tables that follow, the Tourism Quality Index attempts to rate destinations equally be placing them in relatively similar population categories.

Canadian Arrivals on Pace toward Two-Year Decline of 5 Million

August 31, 2016 by Tom Berrigan

If the percentage decline, year-over-year, in the number of visitors coming to the United States from Canada continues at the rate struck for the first quarter of 2016 obtains for the rest of the year, the market will have shrunk by more than 5 million visitors over two years. This is just one of the findings revealed in the 2016 first quarter arrivals report recently released by the U.S. Department of Commerce’s National Travel and Tourism Office (NTTO).

Other findings that stick in the observer’s eye include a Q1 snapshot that confirms a falloff of close to 25 percent in arrivals from Brazil, as well as small, single-digit declines in some key European markets—declines that were not unexpected, according to a number of industry observers.

First, the tables containing data on top overseas sources markets, as well as Canada and Mexico.

Some Q1 After-Thoughts:

—Due almost entirely to a week Canadian dollar vs. the U.S. dollar, Canadian visits to the USA totaled 20.7 million in 2015—down 10 percent from 23 million in 2014. A year-long rate of decrease of 13.4 percent, as it was for the first quarter of 2016, would mean a further reduction of 2.77 million—a down to 17.9 million. In addition to wreaking havoc on those U.S. travel suppliers and destinations that court Canadian travelers, a loss of 5 million visitors hurts the goal of Brand USA of reaching 100 million annual international visitors to the U.S. by 2021.

—As for Brazil, there is little in the data to cheer the country’s travel trade or U.S. receptive operators who sell Visit USA product to Brazil. The attitude seems best expressed in a popular Lee Hazelwood song from the 1960s: “I’ve been down so long it looks like up to me.” The nation’s economy fell into a recession in the third quarter of 2014 and is about to enter its third year. One report has suggested the current recession will be the worst the nation has experienced since 1901.

Add to the economic data the soap opera that Brazil’s political scene has become, and it is small wonder that Q1 arrivals fell by 24.4 percent vs. Q1 2015. On the bright side, several business news publications have recently published commentaries that see the dark clouds lifting on the Brazilian horizon and consumer confidence in the country increased in August—the fifth consecutive month in which this measure has done so.

—It is possible that the small percentage point declines for Germany and France were related to several terrorist attacks in Western Europe and in Turkey that stoked a fear of travel among Germans. What data that have been made available for travel bookings for the subsequent second and third quarters of 2016 suggest that activity has been, at best, flat.

What is Near-Term Outlook for Inbound Travel?

August 17, 2016 by Tom Berrigan

The latest U.S. Travel Association’s Travel Trends Index (TTI) predicts restrained international inbound travel growth for the remainder of 2016, due in part to the fallout from Britain’s decision to leave the European Union (EU). The index also reflected a small spike in international inbound travel in June. This somewhat defied expectations as the summer travel season began, outpacing domestic travel for the first time in 13 months. International inbound travel had been stagnant for months, with variables such as the strong U.S. dollar weighing on travel from previously robust markets, especially Canada.

So much for the June uptick. According to the TTI’s Leading Travel Index (LTI), a variety of factors point to renewed sluggishness in international travel growth throughout the remainder of 2016—among them the global market’s unfolding reaction to the June 23 Brexit vote to withdraw from the EU and the problems already presented by the continued strength of the dollar.

The June Current Travel Index (CTI) registered at 51.6, on par with the 6-month moving average of 51.6 (numbers above 50 indicate growth, and scores below 50 show contraction). The travel industry at large remains in expansion mode, as the CTI has registered above the 50 mark for 78 straight months.

In the full TTI report, the 3- and 6-month LTI readings of 50.9 and 50.7, respectively, indicate that U.S. travel overall is expected to grow at a rate of around 1.6 percent through December 2016.

A Note on Methodology: The TTI consists of the Current Travel Index (CTI), which measures the number of person-trips involving hotel stays and/or flights each month, and the Leading Travel Index (LTI), which measures the likely average pace and direction of business and leisure travel, both domestic and international inbound. It assigns a numeric score to every travel segment it examines—domestic and international, leisure and business—in current, 3-month and 6-month predictive indicators. As with many indices similarly measuring industry performance, a score above 50 indicates growth, and a score below 50 indicates contraction.

China Study Reveals Shifts in Destination Preferences, Traveler Services

August 3, 2016 by Tom Berrigan

The fifth annual edition of the Chinese International Travel Monitor (CITM), which has come to be regarded in the tour and travel industry as the authoritative, non-proprietary source of information on the world’s largest source market for international travelers, shows that the United States is still a popular destination for Chinese travelers, but that Chinese travelers face some real challenges.

The two biggest challenges facing those providing accommodation (prepared by Hotels.com, the CITM has an additional, special focus on hotel) to Chinese travelers are a lack of Mandarin-speaking staff and of China UnionPay card facilities. These are not only the most important services demanded by Chinese travelers, according to the survey, but seen as areas in pressing need of improvement. Other highlights from the CITM include the following:

—The top spenders from China are more sophisticated than the average, valuing experience (comfort, star rating, facilities and hotel services) above price.

—Most Chinese travel with friends and family, with nearly half taking their children. Only a small proportion of travelers have a backpacking experience.

—Short-haul countries were most popular with Chinese travelers in the past twelve months, with South Korea ranking first, followed by Japan, Hong Kong/Macau, Taiwan and Thailand.

—But the future seems set for a mixture of short and long haul destinations, with Australia number one in the travelers’ wish lists, followed by Japan, Hong Kong, South Korea and the Maldives.

—When planning their next trip, Chinese travelers are particularly taking into account safety, sightseeing, dining and ease of visa applications, with the currency of the intended country not generally a factor.

The Inbound Report has prepared the following tables based on information furnished in the CITM report.

Most Popular Countries/Regions for Chinese Travelers According to Hotels.Com China Website

Country & Rank 2014	Country & Rank 2015
1. USA	1. USA
2. Thailand	2. Thailand
3. Hong Kong	3. Japan
4. Japan	4. Hong Kong
5. Taiwan	5. Taiwan
6. South Korea	6. Australia
7. France	7. South Korea
8. Australia	8. France
9. Italy	9. Italy
10. UK	10. UK

Most Popular Cities for Chinese Travelers According to Hotels.Com China Website

City & Rank 2014	City & Rank 2015
1. Hong Kong	1. Hong Kong
2. Bangkok	2. Bangkok
3. Taipei	3. Phuket
4. Phuket	4. Tokyo
5. Seoul	5. Taipei
6. NYC	6. Las Vegas
7. Las Vegas	7. NYC
8. Los Angeles	8. Seoul
9. Tokyo	9. Los Angeles
10. Singapore	10. Chinag Mai

When it comes to the countries seen by Chinese travelers as the most welcoming, Japan, South Korea and Hong Kong came out tops.

Most Welcoming to Chinese Travelers

Destination & Rank	Percentage
1. Japan	12%
2. South Korea	11%
3. Hong Kong	8%
4. Australia	8%
5. Thailand	5%
6. France	5%
7. Maldives	4%
8. Brazil	3%
9. USA	3%
10. Singapore	2%

Spending Power: The Chinese are among the biggest spenders on tourism. Outbound travelers spend $3,455 on travel a year – almost a quarter of their income. Young millennials (born in the 90s) spent the highest proportion of all, 27 percent, just ahead of the 26 percent spent by those born in the 60s.

Overall, travel spending dropped an average of 17 percent from the previous twelve months. The top spenders spent three times more than the average traveler, despite having tightened their belts spectacularly, down 68 percent. But the future looks promising, with one-third of travelers expecting to spend 30 percent more in the coming year, particularly on dining and entertainment.

Most Considered Options to Chinese Travelers when Selecting a Destination

Option	Percentage
Safety	18%
Historical sites	14%
Cuisine	8%
Ease of visa application	7%
Value for money	7%
Shopping	6%
Reputation	6%
Political situation	6%
Climate	5%
Good Public Transit	3%
Local Festivities	3%
Quality of Accommodations	3%
Hospitality of Locals	3%
Hygiene	2%
Currency	2%
Inspired by Drama/Film	2%
Nightlife	2%
Medical Facilities	1%
Sports Event	1%

Need for New Products and Services: As Chinese travelers become more sophisticated, hotels need to increase the rate at which they provide new services. While safety, comfort, star rating, facilities and price are still top of the list of important factors, they dropped each five percent on the previous year.

Chinese travelers had a number of other demands for services that were listed as being not only important but greatly in need of improvement, including UnionPay facilities, Chinese restaurants on-site, Mandarin-speaking staff and app-based customer service. UnionPay is by far the most preferred means of payment, listed by 66 percent of respondents

Preferred Payment Method among Chinese Travelers

Method of Payment	Percentage
UnionPay	66%
Cash	41%
Visa Card	38%
Allpay	31%
Master Card	14%
WeChat Pay	9%

Services that are Important to Chinese Travelers but Need Improvement

Service	%
Mandarin speaking staff	15%
China UnionPay facilities	13%
Chinese restaurant on site	10%
Chinese TV programs	10%
Local transport arrangement	8%
App-based customer service	8%
Mandarin travel guides	8%

Type of Digital Equipment Used by Chinese Travelers

Type of Digital Equipment	%
Smartphone	95%
Digital camera	54%
Tablet computer	50%
Laptop	22%
Wi-Fi dongle	8%
Feature phone	7%
E-readers	5%

Purposes of Travel of Chinese International Travelers

Purpose	%
Leisure	93%
Business	40%
Visiting Friends and Relatives	16%
Cruise	14%
Education	6%
Beauty Treatment	5%

Main Activities of Chinese Travelers when Abroad

Activity	%
Dining	56%
Sightseeing	56%
Shopping	43%
Resort/Beach	32%
Eco/green tours	27%
Visit museums/art galleries	15%
Visiting the countryside	12%
Organized local tours	12%
Adventure/outdoor/safari	10%
Attend events	9%
Backpacking	7%
Sports event participation	4%
Watching sports events	4%
Visiting casino	2%

FIT vs Groups: When it came to how people traveled in the last year, almost half (49 percent) said independent travel; 40 percent with a tour group and 40 percent with a semi-packaged tour. Although tour group travel was up 6 percent on the previous year, the trend still appears to be in the direction of greater independence, with slightly more people saying they would like to travel independently or in a semi-packaged tour group in the future, and slightly fewer with a tour group. Backpacking was the least popular travel style, with only 4 percent selecting this – though 6 percent are looking to this for the future.

Travel Styles

Type of Travel	%
Free and Easy	49%
Tour group	40%
Semi-packaged tour	40%
Theme tour	14%
Eco-tour	13%
Private luxury tour	8%
Backpacking	4%

Time Spent Planning Ahead of Actual Travel

Window of Time	%
Less than one month ahead	10%
1 month ahead	33%
2-3 months ahead	38%
More than 3 months ahead	19%

Source of Travel Information

Source of information	%
Online accommodations website	44%
Friends and colleagues	44%
Travel guides	43%
Online review sites	43%
Travel agents	42%
Family	36%
Social media	32%
Travel magazines/brochure	31%
Searching on mobile phone	28%
Promotions/deals	20%
Newspapers	8%
Bloggers	6%

How They Book: The increased use of online research and booking methods in part reflects the growing sophistication of the Chinese traveler in comparing costs. The following tables reflect this.

Preferred Booking Channels among Chinese Travelers

Booking Channel	%
Online travel agent (OTA)	74%
Hotel	16%
Travel agency	14%

And from the above …

Preferred Booking Mode with OTAs

Mode	%
Website on Desktop	19%
Mobile website	40%
Mobile apps	10%
Phone call	5%

Preferred Booking Mode with Travel Agency

Mode	%
Walk in	5%
Phone call	5%

Preferred Booking Mode with Hotel

Mode	%
Website on Desktop	3%
Mobile website	11%
Mobile apps	1%
Phone call	1%

Notes on the Methodology: The CITM is based on research involving both Chinese international travelers and hoteliers around the world, combined with Hotels.com’s own proprietary data and other research.

For the travelers’ survey, Hotels.com used Ipsos, a world leader in market research, which in May 2016 conducted interviews with 3,000 Chinese residents, aged 18–54 years, who had traveled overseas in the past 12 months. A Computer-assisted Web Interviewing technology was used. The representative sample consisted of men and women from a number of different-tiered cities.

The travelers were asked about travel behavior, booking methods, accommodation choices and many other aspects of their travel.

To complement this with the opinion of hoteliers, Hotels.com carried out a global survey of more than 5,800 Hotels.com accommodation partners, also during May 2016. The 37 participating countries were Argentina, Australia, Brazil, Canada, Colombia, Croatia, Czech Republic, Denmark, Finland, France, Germany, Greece, Hong Kong, Hungary, India, Indonesia, Ireland, Italy, Japan, Mexico, the Netherlands, New Zealand, Norway, Poland, Portugal, Russia, Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, the UK, the USA and Vietnam.

Figures on spending, including prices paid for hotel rooms, are quoted in Chinese Renminbi (RMB) and their US dollar equivalent wherever possible. Unless otherwise indicated, the RMB–US$ exchange rate used in this survey is US$1= RMB6.5386, the rate on May 18 2016, the mid-point of the field research.

There is a New Top Travel Demo for Australia’s International Travelers

Study Names USA’s Top Cities for Tourism Quality

Canadian Arrivals on Pace toward Two-Year Decline of 5 Million

What is Near-Term Outlook for Inbound Travel?

China Study Reveals Shifts in Destination Preferences, Traveler Services

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