1 © gfk 2015 | millennial travel study | november 2015 millennial travel study - 2015 prepared for...

1© GfK 2015 | Millennial Travel Study | November 2015

Millennial Travel Study - 2015

Prepared for – ICICI LOMBARD GIC Ltd.

Submitted by – GfK Mode

Report on:

Date: 2nd December 2015


Study Specifics

Fieldwork Period

Sample Size Achieved

Target Group

Objective of the Study

To understand the Millennial generation attitude towards travel while travelling overseas

Decision Making process of Millennial for Overseas Travel

To understand the outlook towards risk and Willingness to purchase travel insurance

October-November, 2015

Nature Of Study

F2F Interviews done through purposive sampling

SEC A

Male and Female

Age- 25 to 35 years

Travelled in L1Y to overseas destination by Air

Salaried / Business or Self-Employed

Centre Sample SizeMumbai 200

Delhi 200

Hyderabad 200

Bangalore 199

Ahmedabad 150

Kolkata 100

Total 1049


Top 5 Dream Destinations

All figs in %

Overseas

Singapore

United States

United Kingdom

34%

39%

26%

Australia

Malaysia

24%

38%

Top Dream Countries %

Singapore 39

United States 38

United Kingdom 34

Australia 26

Malaysia 24

Japan 21

China 19


Top 5 Travelled destinations

All figs in %

Overseas

Singapore

22%

11%

Australia

Malaysia

9%

Thailand

9%

9%

United States

Top Dream Countries %

Singapore 22

Australia 11

Malaysia 9

Thailand 9

United States 9

China 4

Japan 1


Overseas Leisure Travel Frequency - Self Vs Parents

All figs in %

Overseas

Frequency of Travel -Self

Unlike their parents who hardly travelled abroad, almost 9 in 10 Millennials travel overseas once a year

Base : All :1049

87

12

1

Once in a year2 to 3 times a year4 to 5 times a year

Frequency of Travel- Parents - Past

Base : All :1049

6

51

88

Once in a year 2 to 3 times a year4 to 5 times a year Not Travelled

Q. Please tell me from the SHOW CARD on an average how often do you travel to OVERSEAS locations in a year for leisure travel?Q. Please tell me from the SHOW CARD, on an average how often were your parents used travel to OVERSEAS locations in a year for leisure when you were young?


Duration of Stay – Self Vs ParentsAll figs in

%

Overseas

Duration of Stay – During previous travel - Self

Base : All : 1049

Duration of Stay - Parents in the Past

Base : All :1049

Majority of Millennials prefer 4-7 days overseas stay; while their parents hardly travelled

5

42

30

16

6

2

Up to 3 days 4 - 7 days 8 - 10 days

11 - 15 days 15 - 20 days More than 20 days

1

9

7

21

81

Up to 3 days 4 - 7 days 8 - 10 days 11 - 15 days

15 - 20 days More than 20 days Not travelled

Q. Kindly tell us from SHOWCARD what was the duration of stay for your last OVERSEAS leisure travel?

Average Number of days stayed = 8.6 ~ 8 to 10 days time


Culture / History / Heritage sites

Beaches / Sightseeing / Landscape

Health and Hygiene conditions in the destination country

Atmosphere / Rich Fauna

Convenience of Paperwork/ Ease in getting Visa

Cost of Flight

Wildlife / Adventure related trip

Air transport infrastructure

Availability of Packages tours

Accommodation costs / Hotels

Ground transport infrastructure

Parameters for Considering an Overseas Location

All figs in %

Overseas

Base : All :1049

Culture/Heritage and scenic beauty remains primary parameters. More and more Millennials today consider health and hygiene conditions of a country before travelling.

80

74

73

69

67

63

61

54

52

41

40

Q. Please think about the last time when you travelled to _______________(mention location ) what were the parameters that you considered while making a decision on your travel destination?Q. Looking at the card SHOWCARD could you please tell me what were the parameters that you considered while making a decision on your travel destination?

Beaches / Sightseeing / Landscape

Culture / History / Heritage sites

Atmosphere / Rich Fauna

Safety and security in the destination country

Wildlife / Adventure related trip

Ease in getting Visa

Accommodation costs / Hotels

Attitude of Locals

Cost of overseas travel (Tickets, lodging, food, local expenses, etc)

Health and Hygiene conditions in the destination country

Air transport infrastructure (Number of flights / availability of inter-connected flights, etc)

68

68

65

57

49

48

46

45

44

41

41

Base : All :1043Current Survey (Yr. 2015) Previous Survey (Yr. 2013)


Online sources of Travel Information

All figs in %

Overseas

Base : All those who have done Internet /online research :420

47

47

23

18

15

Online marketing/ promotional ads (i.e.. Receiving pop up suggestions or ads about travel locations, tour

packages etc. when surfing online)

Social media platforms

Travel Blogs eg.blogs written by travel enthusiasts about their travel /trip

Travel portal websites

Travel operator websites

Online marketing/Promotional ads and Social media are the top online source of information.

Q. From the SHOWCARD please tell me which of these online sources did you use for your travel information gathering?


Persons accompanied during last tripAll figs in

%

Overseas

Base : All :1049

52

38

20

15

12

Spouse

Friends

Children

Other Family members

Self Only

Almost half of the respondents were accompanied by their wife during overseas leisure travel followed by friends.

Primarily driven by Hyderabad (47%) & Mumbai (53%)

Primarily driven by Ahmedabad (79%) & Delhi (64%)


Group tours / packages

Better Discounts / deals

Utilising long / clubbed office leaves at a time

Membership of club / Hotels

Tourism promotion by Government

Advertisements

Promotional mails from Tour packages operators

Preference of type of vacation

All figs in %

Overseas

Majority of the respondents prefer multiple location tour than single location tour.

Tour packages and discounts trigger multiple location travel.

43 57

Preferred type of Trip

Base : All :1049 Base : All those Intent to Increase budget : 598

Reasons for Multi-location preference

59

54

42

31

25

23

11

Prefer single location tours

Prefer multiple location/ country tour

Q. From the SHOWCARD let us know what kind of OVERSEAS vacations do you prefer?


Traditional standalone hotels with boarding or lodging facilities

Resorts

Chain of Hotels present in Multiple locations

Homestay or Couch sharing

Traditional standalone hotels with boarding or lodging facilities

Resorts

Chain of Hotels present in Multiple locations

Homestay or Couch sharing

Options of Stay - Stayed previously Vs Consideration

All figs in %

Overseas

Base : All :1049

63

37

25

4

Millennials inclined towards convenience (hotel chains)and luxury (resorts) while considering accommodations.

Stayed Previously

57

50

45

9

Future Consideration set

Base : All :1049

Q. There are many options of stay abroad…Looking at the card SHOWCARD. Which of the following options have you stayed previously during your previous trip overseas?


Problems faced during last trip

All figs in %

Overseas

33

29

21

12

11

24

Safety related issues

Travel related problems

Local people behaviour related issues

Medical support related issues

Documentation related problems

Other issues

Base : All : 1049

Millennials face safety and travel related issues during travel.

Q. During your overseas travel, you might have faced certain problems / issues/ challenges while travelling abroad. Kindly refer to the following SHOW CARD where we have enlisted…. Based on your experience, let us know whether you have witnessed any of the following issues.

53

47

No Problems Faced Problems Faced

Type of Problems Faced

Base: Thos who have faced problems : 493


Leisure Travel Frequency - Overseas Vs Domestic

All figs in %

Overseas

Frequency - Overseas

In a year, frequency of domestic travel is more for Millennials as compared to overseas travel. While only 12% travel overseas, 29% travel domestic 2-3 times a year.

Base : All :1049

87

12

1


Frequency - Domestic

Base : All :1049

67

29

4


Domestic

Q. Please tell me from the SHOW CARD on an average how often do you travel to OVERSEAS locations in a year for leisure travel?Q. Could you please tell me how many times have you travelled to Domestic locations for leisure in a year?


47

7

46

Change in Frequency - Future - Overseas Travel

All figs in %

In future, majority of the respondents see increase in their overseas travel.

The major reasons for the high future travel intention are decrease in travel and stay costs.

Overseas

Future travel Intention - Next 2-3 Years

Reasons for Increase %

I work harder than before, so need more vacations 56

Cost of staying has decreased 47

There is a decline in travel fares 41

Overseas travel is more value for money proposition compared to Domestic travel 26

My children have grown up now 19

Reasons for Decrease %

My workload has increased, hence do not find time 60

Cost of travel is not justified 51

Had a child recently 21

I have covered all the places I intended to see 19

Do not find overseas travel fun anymore 5

I/member of my family have some health ailments 3

Base : Those Intent to increase in future : 493Base : Those Intent to decrease in future : 73

I plan to increase the number of trips

I plan to decrease the number of trips

The number of trips will/may remain unchanged

Q. Kindly tell us looking at the card SHOWCARD over the next few years (2-3 years), could you please tell me whether you plan… ?


Budget Constraints for travel & availed finance

All figs in %

Overseas

1/5th of the respondents said budget was a constraint during overseas travels. Out of them around 40% Millennials availed finances.

2179

Yes No

Budget Constraints

Base : All :1049

39

61

Yes No

Availed finance

Base : All those Budget Constraints : 218

Q. Could you please tell me if your budget is a constraint for your previous overseas travel?Q. You have mentioned that there was a budget constraint during your previous travel. Could you please tell us if you have availed any finance options…


Source of funds for previous trip

All figs in %

Overseas

90

23

19

13

6

5

9 out of 10 respondents travelled overseas using their savings.

Savings

Funded by family / sponsored

Salary Bonus

Encashed accumulated travel miles

Leave travel allowance

Took a loan / EMI

Base : All :1049

Q. From the SHOWCARD let us know what was the source of money that you used when you travelled last time to_________(mention location)


Travel Insurance - Awareness Vs Purchase

All figs in %

Overseas

Although 90% Millennials are aware of Travel Insurance. Only 2 of 5 respondents purchased travel insurance for Overseas Travel

919

Yes No

Awareness of Travel Insurance

Base : All respondent : 1049

42

58

Yes No

Travel Insurance – Purchase

Base : All those Aware of Travel Insurance : 954

Q. Please tell me are you aware of the Travel Insurance for overseas travel?Q. Please tell me have you purchased Travel Insurance for OVERSEAS travel during last 1 year?

80

20

Yes No

Base : All respondent : 1043

51

49

Yes No

Base All those Aware of Travel Insurance : 835

Awareness of Travel Insurance

Travel Insurance – Purchase

Current Survey (Yr. 2015) Previous Survey (Yr. 2013)


Source of awareness – Travel Insurance

All figs in %

Overseas

Millennials increasingly value personal opinion while purchasing Insurance for travel. Travel agent followed by relatives and friend play critical role.

75

48

36

30

23

17

15

11

Travel Agent

Family members / Relatives / friends / colleagues etc.

Internet websites / search engines

Tour Operator

Blogs on travel / Social networks

Brochures/guidebooks

Prior experience

Mandatory as per rules / regulation


Q. Please tell me what were your main sources of awareness of OVERSEAS Travel Insurance?

Base :Those who are aware of travel insurance and have purchased travel insurance in last 1 yr : 425

Travel Agent / Tour Operator

Internet websites / search engines

Family members / Relatives / friends / colleagues etc.

Blogs on travel / Social networks

Prior experience

Mandatory as per rules / regulation

Brochures/guidebooks

Read an Article on Travel Insurance

Current Survey (Yr. 2015) Previous Survey (Yr. 2013)


Reasons for Purchasing/Not Purchasing Travel InsuranceAll figs in

%

Overseas

Medical emergency and luggage safety are primary reasons for purchasing travel insurance.

Lack of awareness and myths deter Millennials from opting insurance during travel.

42 58

Yes No

Travel Insurance – Purchased in L1Y


38

27

25

24

18

16

10

No need to buy separate OVERSEAS travel insurance

Mainly related to accident and theft, loss of baggage etc. not medical support

Too expensive

Loss of money

Insurance offer partial reimbursement of medical costs

Making claim is very difficult and requires lot of follow-ups

Not mandatory to take OVERSEAS travel insurance

Reason for Not Purchasing Travel Insurance

Base : All those Aware of Travel Insurance and Not Purchased : 557

Q. Please tell me the VARIOUS reasons from SHOWCARD for not purchasing Travel Insurance for OVERSEAS travel?

79

58

50

53

Need at the times of medical emergency

Luggage / baggage safety

Unfavourable past experiences

Other reasons

Base : All those Aware of Travel Insurance & Purchased : 397

Reason for Purchasing Travel Insurance


Summary


Summarizing ….

Aspirational Indian Millennials prefer international over domestic destinations and desire to visit expensive countries like UK and USA.

Unlike their parents who hardly travelled when young, almost 9 in 10 Millennials travel overseas in a year.

Millennial save to fund their leisure travel .

Culture/Heritage and scenic escapades are key drivers for preferring overseas destinations. More and more Millennials today consider health and hygiene conditions of a country before travelling.

Though 2/5th of the Millennial self-research online sources for information; travel agent and peer reviews are major providers of information related to travel.

Millennial are inclined towards resorts and hotel chains as preferred accommodation during overseas travel over standalone hotels.

Although 9 out of 10 Millennial are aware of Overseas travel insurance; only 4 out of 10 purchase one.

Lack of awareness and myth related to travel insurance discourage Millennial from insuring their travel.


Thank You!GfK - Your Business Innovation Partner

1 © gfk 2015 | millennial travel study | november 2015 millennial travel study - 2015 prepared for...

Documents

overseas travel

overseasfrequency of

travel insuranceoctober

previous travel selfbase

overseas destination

overseas locations

gfk modereport

millennial generation