TripAdvisor Global Study Reveals Traveler Spending and Accommodation Profitability Expected To Rise in 2013
TripAdvisor Announces Results of TripBarometer: World's Largest Accommodation and Traveler Survey with More than 35,000 Global Respondents
NEWTON, Mass., March 6, 2013 /PRNewswire/ -- TripAdvisor®, the world's largest travel site*, today announces the results of the world's largest accommodation and traveler survey – the TripBarometer by TripAdvisor. This study, conducted on behalf of TripAdvisor by independent research firm StrategyOne, a division of Edelman Berland, will be biannual and covers top travel and hospitality industry trends according to more than 35,000 travelers and accommodations from around the world.
The results of the TripBarometer highlight country level, regional and global trends within the travel sector and reveal insights into economic outlook, travel planning, booking methods and traveler expectations. Specific to the U.S., the report shows strong indicators for increased travel spending and accommodation profitability in 2013.
U.S. Accommodations Optimistic About Profitability in 2013
Forty-two percent of U.S. travelers are planning to increase travel spending this year and 79 percent of U.S. hoteliers are optimistic about increased profit this year, leading the world average of 68 percent.
Region% of respondents optimistic about business profitability in 2013
Perhaps fueled by this optimism, 56 percent of U.S. accommodations plan to increase their room rates in the next three months, making them the most bullish about rate hikes of all countries polled.
Region% of respondents who plan to increase room rates
Looking at hiring trends within the accommodation industry, 19 percent of U.S. accommodations plan to add new jobs in 2013, which matches the global average.
Key 2013 Booking Factors for U.S. Travelers
What are U.S. travelers looking for in 2013 — and how and when do they plan to book? The TripBarometer offers some important insights:
•Beach (21%), culture (17%) and adventure (15%) trips are U.S. travelers’ preferred excursions.
•U.S. travelers most often travel with a significant other (60%), followed by flying solo (17%) and with kids (15%).
•For a long trip, 80 percent of U.S. travelers begin planning their vacation two or more months ahead of time. For a short excursion, 77 percent plan their trip within a month of departure.
•Globally, travelers look at an average of seven properties before booking an accommodation, with 55 percent of U.S. travelers considering 1-5 options, and 26 percent considering 6-10.
•The top three decision making factors for global travelers are: price (76%), location (68%) and online reviews (44%). U.S. travelers agree.
•What deals will motivate U.S. travelers to book in 2013? Room discounts (79%), a free night’s stay with booking (51%) and free Wi-Fi (45%).
Online Channels Acting As Megaphone For Traditional ‘Word of Mouth’
The TripBarometer reveals that travel review websites surpass feedback from family and friends as the “most useful” sources of information when researching and planning a trip.
Information SourcePercent of U.S. respondents finding source “most useful”
Travel review websites49%
Web-based travel agencies19%
Travel operator websites14%
Friends and family9%
Travel magazines & brochures2%
High street travel agencies1%
With travelers going online for their travel research and planning, they are also showing preference for online as the primary booking channel. In the U.S., the majority of travelers are booking via accommodations’ websites (32%), closely followed by web-based travel agencies (28%).
In line with these findings, U.S. business owners report their own website as the channel that generates the most bookings (50%), followed by the telephone (22%).
Accommodations Not Meeting Travelers’ Mobile Expectations
According to the TripBarometer, 62 percent of U.S. travelers think it is beneficial that properties allow them to book an accommodation via a mobile device. Similarly, 78 percent of accommodations think it is important to allow guests to book their property on a mobile device.
However, despite the perceived importance of mobile booking capabilities and consumer demand for this, only 37 percent of U.S. businesses currently engage with guests via mobile devices. Of those that do engage with travelers via mobile, 69 percent allow guests to book rooms on mobile devices.
“The TripBarometer has revealed useful insights into what global travelers are planning and shone a light on the areas where accommodation providers can do more to meet guests’ expectations,” said Christine Petersen, President, TripAdvisor for Business. “With travelers choosing digital channels for their travel planning and research, traditional word of mouth has been amplified and online booking has become the norm across the globe. The next logical step is mobile, especially considering that travelers in some emerging markets are bypassing desktops and getting online for the first time using mobile devices. Furthermore, as travel budgets increase and U.S. accommodations increase room rates, it seems likely that the travel industry is poised to excel in the U.S. this year.”
¹ Methodology: The TripBarometer by TripAdvisor is based upon an online survey conducted in December 2012 – January 2013. A total of 35,042 people participated in the online survey from 26 countries spanning 7 regions. The sample is made up of 15,595 consumers and 19,447 businesses, making it the world’s largest combined accommodation and traveler survey. More than 2,000 U.S. travelers and more than 3,000 U.S. accommodation businesses participated in the survey.
TripAdvisor® is the world's largest travel site,* enabling travelers to plan and have the perfect trip. TripAdvisor offers trusted advice from real travelers and a wide variety of travel choices and planning features with seamless links to booking tools. TripAdvisor branded sites make up the largest travel community in the world, with more than 60 million unique monthly visitors*, and over 75 million reviews and opinions. The sites operate in 30 countries worldwide, including China under daodao.com. TripAdvisor also includes TripAdvisor for Business, a dedicated division that provides the tourism industry access to millions of monthly TripAdvisor visitors.
TripAdvisor, Inc. (NASDAQ: TRIP) manages and operates websites under 19 other travel media brands, and together the sites attract more than 75 million unique monthly visitors.** TripAdvisor, Inc.'s travel media brands include www.airfarewatchdog.com, www.bookingbuddy.com, www.cruisecritic.com, www.everytrail.com, www.familyvacationcritic.com, www.flipkey.com, www.holidaylettings.co.uk, www.holidaywatchdog.com, www.independenttraveler.com, www.onetime.com, www.seatguru.com, www.sniqueaway.com, www.smartertravel.com, www.tingo.com, www.travel-library.com, www.travelpod.com, www.virtualtourist.com, www.whereivebeen.com, and www.kuxun.cn.
*Source: comScore Media Metrix for TripAdvisor Sites, Worldwide, January 2013
**Source: comScore Media Metrix for TripAdvisor, Inc. and its subsidiaries, Worldwide, January 2013