TripAdvisor study shows 9 out of 10 Indian consumers willing to make lifestyle sacrifices for holidays; domestic travel remains a top priority
Delhi, India – TripAdvisor®, the world’s largest travel site, today announced the results of the ‘World’s largest traveller and accommodation survey – the TripBarometer by TripAdvisor. The survey reveals the leading travel and hospitality industry trends, according to over 19,000 travellers and over 10,000 accommodation business owners around the world. The study is conducted twice a year, and the results are analysed independently by research firm Edelman Berland.
Lewis Ng, Commercial Director APAC, TripAdvisor for Business, says: “The key findings of TripBarometer have provided a unique and fascinating insight into the current state of global travel. With consumers around the world happy to make sacrifices in other areas in pursuit of a break, hospitality businesses are poised to benefit from this trend.”
Sacrifices help make trips possible
According to the study, fewer Indian travellers are planning to increase their travel budget next year, compared to 2013, despite more than half (57%) stating that they are optimistic about the economy in 2014. While 59% of Indians are planning to increase their travel budget next year (globally: 39%) – the figure is down from 76% in 2013.
To fund their vacation, 90% of Indians would be willing to forego luxuries, which is in line with global consumers’ willingness to make sacrifices in order to go on holiday (88%).
|Factor||Percentage of Indian respondents who will make sacrifices on the factor in order to save money for travel|
|Shopping (Clothes, etc.)||39%|
According to the study, Indian male respondents are more willing to give up nights out than their female counterparts (Male: 50%; Female: 45%) while both genders are equally happy to give dining out a miss in order to save money for travel (Male: 36%; Female: 37%). The study also shows that Indian women are more inclined than men to cut back on personal shopping in favour for holiday (Male: 34%; Female 44%).
Domestic travel remains top priority
In addition to spending more, Indian consumers are also looking to take more holidays in the coming year with the number of short vacations planned up 45% and the number of long vacations increasing by 5%.
According to the TripBarometer by TripAdvisor, 93% of Indian consumers are planning to travel within their home market this year. The main reason for domestic travel, according to Indian respondents, is to discover their own country.
|Percentage of Indian respondents giving the reason as to why they plan to travel in their home market this year|
|Discover their own country||61%|
While domestic travel remains dominant, for those who are planning to holiday abroad in the coming year, intraregional travel will continue to be popular amongst Indian consumers with Asia being the ultimate destination for many, in both near and long term. According to the study, one in two (54%) Indian consumers who have plans to travel abroad in the next 12 months are planning trips within the Asia region. Only 26% and 20% of them intend to visit Europe and North America, respectively, in the year ahead.
Hotel Industry optimism drives price hikes and investments
According to the study, eight out of 10 (82%) of Indian hoteliers are feeling optimistic about their business profitability in 2014, which is significantly higher than the global average of 67%.
|Region||%age of hoteliers worldwide who feel optimistic about making a profit in 2014|
Next to positive business forecast, 58% of Indian hoteliers surveyed are planning to increase their room rate, citing increased overheads (64%) and staying in line with competition (32%) as key reasons behind the price increases.
Optimistic outlook is driving investments across the Indian’s hospitality industry with 35% of hoteliers polled planning to open new properties in the coming year, which is twice the global average of 17%.
In order to attract more guests through the door, additional investments Indian hoteliers are planning to make in 2014 include marketing and advertising, (65%), staff training (62%), and small scale renovations such as refurbishment and redecorations (60%).
“Despite recent fears of a slowing economy, the study shows that the long-term outlook for India’s hotel sector remains resilient in light of a domestic travel boom and increases in consumer spending on travel in the coming year.” added Nikhil Ganju, Country Manager, TripAdvisor India.
¹Methodology: The research was commissioned by Trip Advisor and conducted by Edelman Berland, an independent market research firm, conducted via online survey in June and July 2013. Survey respondents were 10,469 accommodation business owners and 19,692 18+ adults who have booked travel online and taken at least one trip in the past year. Respondents were from Argentina, Australia, Brazil, Canada, Caribbean, China, Egypt, France, Germany, Greece, India, Indonesia, Italy, Japan, Malaysia, Mexico, New Zealand, Russia, South Africa, South Korea, Spain, Thailand, Turkey, UAE, UK and USA. A total of 509 consumers and 466 accommodation business owners in India participated in the survey.