Dispelling the myth; Youth travel is not a niche market

David Chapman Director General – WYSE Travel Confederation

• Based in Amsterdam• Formed by the merger of FIYTO and ISTC in 2005• Home of eight sector associations

What is a niche market?

• A niche market is the subset of the market on which a specific product is focusing. The market niche defines the product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact.

• It is also a small market segment.

NEW HORIZONS lll

• The only longitudinal global study of youth travel

• Surveys every 5 years since 2002

• Expanding geographical coverage

• 137 Countries

• Sample size:

2002 2,3002007 8,5002012 34,000

Young travellers

today

Why do they

travel?

Where do they go?

What do they do?

How do they

research and book?

How much do they spend?

Where will they travel

in the future?

What do they

learn?

AGE PROFILE (IN %)

Under 20 20-22 23-25 26-30 Over 300

5

10

15

20

25

30

35

20072012

WHY ARE THEY TRAVELLING? (IN %)

0

5

10

15

20

25

30

35

40

45

50

MOTIVATIONS (IN %)

Visit friends and relatives living abroad

Help people and make a positive contribution to the destination

Develop my creativity

Be in a calm atmosphere

Test and develop my physical abilities/skills

Relax physically

Have a good time with friends from home

Meet other travellers

Avoid the hustle and bustle of the daily life

Build friendships with people from other countries

Relax mentally

Learn more about myself

Experience everyday life in another country

Interact with local people

Increase my knowledge

Explore other cultures

0 10 20 30 40 50 60 70 80 90 100

INFLUENCES ON DESTINATION CHOICE (IN %)

Going somewhere not too different from home

Concerns about natural disasters (e.g. Tsunamis, hurricanes...)

Epidemics (e.g. SARS, bird flu/avian influenza)

Concerns about war and political unrest

Concerns about terrorism and crime

Ability to meet family and friends

Other health related concerns (e.g. Hygiene, quality of food...)

Being able to speak the language

Ability to meet other travellers

Flexibility to change my plans

Ability to do non-tourist activities

Having contact with local people

Travelling as cheaply as possible

Feeling safe in the destination

Ability to widely explore destination

0 10 20 30 40 50 60 70 80 90 100

INFLUENCES ON TRIP TIMING (IN %)

Friends studying there

Special event taking place

Combined trip with work

Friends living there

Availability of special offers (e.g. Cheap air fare)

Suddenly had time available

0 10 20 30 40 50 60

HOW OFTEN DO THEY TRAVEL? (IN %)

Short duration trips in the last 5 years

Long duration trips in the last 5 years

Short duration trips in the last 12 months

Long duration trips in the last 12 months

0

10

20

30

40

50

60

70

2007 2012

TRAVEL STYLE (IN %)

Traveller Backpacker Tourist Other0

10

20

30

40

50

60

200220072012

LENGTH OF MAIN TRIP (IN DAYS)

TRIP LENGTH BY TRAVEL STYLE (IN

DAYS)

Backp

acke

r

Trav

elle

r

Tour

ist

Flas

hpac

ker

Volun

teer

0

10

20

30

40

50

60

70

80

2002 2007 20120

10

20

30

40

50

60

70

BOOKING ONLINE VS AGENCY VISIT (IN %)

Air trav

el

Surfac

e trav

el

Accom

mod

atio

n

Lang

uage

cou

rse

Wor

k ab

road

pro

gram

me

Stud

y ab

road

pro

gram

me

Insu

ranc

e

Tour

s0

10

20

30

40

50

60

70

80

Online In travel agency

BOOKING FACTORS (IN %)

Speed and efficiency

Flexibility to change my travel plans

Ability to book online

Having a travel shop/agent close by

Quality of information and services

Specialised student/youth products

Reputation, quality of travel agency

Range of different products available

Reputation, quality of travel agency

Buying a well-known brand

Mobile booking access

Price

0 10 20 30 40 50 60 70 80 90

INFORMATION SOURCES PRE-TRIP (IN %)

Fam

ily, f

riend

s

Destin

atio

n web

site

s

Revie

w w

ebsite

s

Tour

ope

rato

r

Prod

uct s

uppl

iers

Prin

ted

guid

eboo

ks

Info

rmat

ion

from

pre

viou

s vi

sit

Refer

ral/c

ompa

rison

web

site

s

Tour

ist i

nfor

mat

ion

office

Social

med

ia

Trav

el a

genc

y

New

spap

er, m

agaz

ines

Oth

er b

ooks

TV/rad

io

Emba

ssy/

cons

ulat

e

Exhi

bitio

n/fa

ir/trad

e sh

ows

0

10

20

30

40

50

60

70

80

90

100

WHAT DO THEY WANT FROM A WEBSITE? (IN %)

Info

rmat

ion

abou

t des

tinat

ion

Web

site

with

info

from

diff

eren

t sup

plie

rs

Trav

el re

view

s

Web

site

sav

es m

y en

quiry

Can

book

who

le tr

ip o

n on

e web

site

Spec

ial s

tude

nt a

nd y

outh

pro

duct

s

Trav

el A

pps

Link

to soc

ial m

edia

0

10

20

30

40

50

60

70

HOW DO THEY GET THERE? (IN %)

Other

Bicycle/moped/motorcycle

Car

Rail

Air

Bus

0 5 10 15 20 25 30 35

20072012

WHERE DO THEY STAY? (IN %)

Hos

tel

Hot

el

Apartm

ent

Fam

ily/fr

iend

s

Bed &

bre

akfa

st/p

rivat

e ro

om

Guest

hous

e, p

ension

Stud

ent r

esid

ence

Oth

er

Self

cate

ring

Tent

/car

avan

Couc

hsur

fing

Cam

perv

an/m

otor

hom

e0

5

10

15

20

25

30

35

HOSTELS FAVOURED BY YOUNGER INDEPENDENT TRAVELLERS (IN %)

Under 20 20 - 22 23 - 25 26 - 29 30 - 340

5

10

15

20

25

30

35

40

45

HostelsHotels

DAILY COMMUNICATION USED ON THE ROAD (IN DAILY %)

Emai

l

Letter

s/po

stca

rds

Calls

mad

e on

a la

ndlin

e

Mob

ile te

leph

one

SMS/

text

mes

sage

Social

med

ia

Skyp

e

Inst

ant m

essa

ging

0

5

10

15

20

25

30

35

40

20122007

HOT AND COOL CITIES (IN %)

LondonParis

CairnsBogota

AmsterdamLima

New YorkBangkok

Mexico CityJohannesburg

BarcelonaBerlin

Santiago de ChileBudapestAuckland

CairoLos Angeles

SingaporeRome

Hong KongMelbourne

DublinCape Town

MontrealSan FranciscoBuenos Aires

SydneyTokyo

Rio de Janeiro

0 5 10 15 20 25 30 35 40 45 50

TOTAL SPENDING (IN €)

2002 2007 20120

500

1000

1500

2000

2500

3000

3500

BENEFITS OF TRAVEL (IN %)

Better u

ndersta

nding o

f own cu

lture

More

self-

confidence

More

tole

rance

of c

ultura

l diff

erence

s

More

self-

knowledge a

nd self-

awareness

More

appre

ciatio

n of o

ther c

ulture

s

Inte

rest

in le

arnin

g about o

ther c

ulture

s

A thirs

t for m

ore tr

avel0

10

20

30

40

50

60

70

80

90

100

2007 2012

MY IDEAL FUTURE LIFE (IN %)

Studying, then a steady job, having family and retiring

Combining study work and travel, then back to a steady job, hav-

ing a family and retir-ing

Changing continuously between study work

and travel

I am not sure what I want

0

10

20

30

40

50

60

2004 2012

A DECADE OF TRENDS

• Staying young longer• Travelling more often, further away• Spending more of their parent’s money• Living life online• Growing information hunger• Being far away, but keeping in touch

with home• The decline of the backpacker, the rise

of the flashpacker

How niche is youth travel?

• Represent over 20% of international arrivals• Generated $215bn in international tourism

receipts in 2013• UNWTO estimates an increase from 200 million

international youth trips to 300 million by 2020• Young people are the future of travel

• This is NOT niche!

Thank you.

World Youth, Student and Educational Travel Confederation.

Amsterdam. The Netherlands