TripAdvisor Global Study Reveals Americans Are Planning To Travel More Domestically But Steady Their Spending In 2014

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Sep 10, 2013, 04:00 ET

NEWTON, Mass., Sept. 10, 2013 /PRNewswire/ -- TripAdvisor®, the world's largest travel site *, today announced the results of the world's largest accommodation and traveler survey¹ – the TripBarometer by TripAdvisor. The survey reveals the leading travel and hospitality industry trends, according to over 19,000 travelers and over 10,000 accommodation business owners around the world. The study is conducted twice a year, and the results are analyzed independently by research firm Edelman Berland.

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TripBarometer by TripAdvisor. (PRNewsFoto/TripAdvisor) (PRNewsFoto/TRIPADVISOR)

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Themes from this season's TripBarometer include:

Travelers vary considerably in their economic outlook, with those from emerging markets far more optimistic about the global economy
While U.S. travelers aren't planning to increase travel budgets next year, they are planning to travel more frequently and closer to home to discover the sights America has to offer
Despite the lack of confidence many travelers feel about the global economy, U.S. hoteliers remain confident about future profitability
Travelers are using credit to fund their holidays, particularly in emerging markets

"The TripBarometer has revealed useful insights into the travel economy based on varied consumer confidence and industry perspectives," said Brooke Ferencsik, director of communications at TripAdvisor. "While the majority of Americans aren't planning to increase their travel budget, U.S. consumers are committed to taking more trips this year, which is good news for the travel industry."

Travelers Plan to Lower their Budgets

Only one-third of U.S. travelers are optimistic about the economy
Americans are the least likely to spend more on travel in 2014 compared to other regions
61 percent of global travelers and 65 percent of U.S. travelers plan to spend the same amount or less in 2014
Travelers in emerging markets are the ones who plan to spend more

Region	Percentage of respondents who plan to spend more on travel in 2014
Africa	59%
South America	48%
Central America	47%
Middle East	46%
Asia	42%
Australasia	38%
Europe	36%
North America	35%
United States	35%

Trips are Shorter Yet More Frequent

85 percent of global travelers and 91 percent of U.S. travelers plan to travel in their home market in 2013
Compared to 2013, almost one-third of Americans are planning to take more trips in 2014:
- 22 percent of U.S. travelers are planning more short vacations
- 8 percent of U.S. travelers have plans to take longer vacations

Reason	Percentage of respondents giving the reason as to why they plan to travel in their home market this year
	Global U.S.
Discover their own country	42% 42%
Visit family	29% 38%
Save money	27% 39%

Credit is Helping to Fund Travel

Many travelers, including 46 percent of Americans, will fund all or part of their vacation with credit
Travelers in emerging markets are more willing to use credit

Sacrifices Help Make Trips Possible

88 percent of American travelers say it's worth making sacrifices to make memories

Factor	Percentage of respondents who will make sacrifices on the following factors in order to save money for travel
	Global U.S.
Nights out	51% 54%
Meals out	43% 48%
Clothes, etc.	39% 42%
Cigarettes	31% 33%
Gifts	28% 29%
Home improvements	19% 23%
Charity	16% 18%
Groceries	13% 15%

For some travelers, vacations take priority over child-related commitments:
- 7 percent of global travelers and 11 percent in the U.S. cut back on child care costs
- 7 percent of global travelers and 10 percent in the U.S. cut back on child-related activities
- 5 percent of global travelers and 8 percent of U.S. travelers cut back on children's education

Hoteliers are Confident About Future Profitability

Four out of five U.S. hoteliers are optimistic about profitability in 2014
Only one-third of U.S. travelers are optimistic about the economy in 2014
Hotel industry confidence is highest in the Americas, Asia and Middle East

Region	Percentage of hoteliers who feel optimistic about making a profit in 2014
Central America	79%
United States	77%
North America	74%
Asia	74%
South America	72%
Middle East	72%
Africa	70%
Australasia	67%
Europe	56%

Hoteliers' Optimism is Driving Investment

65 percent of U.S. hoteliers plan to increase room rates in 2013, an increase of 16 percent compared to 2012
10 percent of U.S. hoteliers plan to open a new property in 2014, with 93 percent of those hoteliers planning to open new properties in North America
Globally, hoteliers in Asia, Europe and South America are leading the way – with 34 percent, 21 percent and 10 percent respectively making plans for new development

Target area	Percentage of hoteliers spending increased revenue on the following target areas
	Global U.S.
Small scale renovations	47% 42%
Marketing spend	47% 37%
Staff training	38% 34%
Large scale renovations	27% 26%
Hiring staff	22% 17%
Back office	22% 13%

¹Methodology: The research was commissioned by TripAdvisor 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.

About TripAdvisor
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 260 million unique monthly visitors**, and more than 100 million reviews and opinions covering more than 2.7 million accommodations, restaurants and attractions. 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 20 other travel media brands: www.airfarewatchdog.com, www.bookingbuddy.com, www.cruisecritic.com, www.everytrail.com, www.familyvacationcritic.com, www.flipkey.com, www.gateguru.com, www.holidaylettings.co.uk, www.holidaywatchdog.com, www.independenttraveler.com, www.jetsetter.com, www.niumba.com, www.onetime.com, www.seatguru.com, www.smartertravel.com, www.tingo.com, www.travelpod.com, www.virtualtourist.com, www.whereivebeen.com, and www.kuxun.cn.