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The Future of Travel

This number will continue to grow as more young people enter peak earn-ing, spending, and traveling years. New international markets will come on the scene as travel becomes more accessible, influencing young people’s preferences and habits in this industry. VICE, the fastest growing global youth media company, in partnership with Transperfect, a company focused on helping businesses navigate the global marketplace, set out to discover what the future of travel will look like. The research found emerging regions of influence and youth travel behaviors within these regions that will vastly impact the travel industry as a whole.

In a two-phased global study, economic forecasting was used to identify countries with the greatest number of young travelers over the next 20 years. Measures such as projected youth population growth, GDP per capita growth and internet penetration rates were analyzed in over 180 countries. A total of eight countries were identified as the most promising markets. An online survey was conducted to better understand the travel attitudes and behaviors of the young people in each of these key markets. In total we gathered data from 800 young men and women ages 18-34 – 100 from each country.

1. Euromonitor, Millennials – A New Breed of Travelers, 2015.

million international trips are expected to come from youth travelers each year – a 47% increase from 20131.

By 2020,

Methodology

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Regions of Future Influence

The economic forecasting analysis identified regions with booming youth populations and positive economic development, bound by geography and common language.

Current political, social and cultural research within these markets provided further support that these areas are responsible for driving the future of travel.

Latin America

Middle East

Southeast Asia

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Latin America

ColombiaMost travel players in Colombia are incorporating online platforms in their strategy, generating new channels in tourism.

Government lifting of currency restrictions and a tax on travel spending with credit and debitcards will spur travel spending.

Infrastructure improvements, new airline routes and higher flight frequencies at airports will continue to enable travel expansion.

New low cost air carriers entering the country will help increase available flights and developnew routes.

Travel companies are developing mobile apps now that more consumers prefer to make purchases on smartphones.

An Air Transport Agreement signed between Mexico and the US will help airlines increase passenger traffic while keeping the fares affordable.

Mexico

Argentina

4

Middle East

Despite political uncertainty in the country, online travel sales to residents continue to perform positively as a result of increasing awareness and trust in online payments.

Expatriate majority keeps outbound travel demand high. Strong ties to USD keep cost oftravel destinations down.

Company-level investments in online services and online-specific promotions will further increase online travel sales. 1

Dubai International Airport is a global hub for aviation, placing the UAE within a four-hour flightof 40% of the world’s population. 2

Growth of low-cost carriers provide a larger network of destinations, including international routes at low fares.

The government plans to diversify the economy and reduce dependence on oil by developingother industries, including tourism. Younger generations will be more exposed to international cultures and relaxed social norms.

United Arab Emirates

Saudi Arabia

Turkey

1. Euromonitor, Travel in Turkey, 2017.

2. PwC, The five megatrends that will impact the Middle East’s travel and tourism industry, 2017.

5

Southeast Asia

Continuous infrastructure developments in public transportation and improved airport facilities will increasedemand in the outbound travel industry.

E-commerce boom in the country will lead to an increase in travel companies creating online channels in order to remain competitive.

Outbound trips grew 6.7% in 2015, higher than the global average of 4.4%. 1

Filipinos are among the world’s top active social media users and often post travel updates during their trips, helping to popularize tourist destinations among other potential travelers.2

Indonesia

Philippines

1. Workalife, Filipinos made at least 5.1 million international trips in 2015, 2016.

2. Euromonitor, Travel in the Philippines, 2017.

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Travel Mindset

Millennials have a new value system unique to their generation that influences their travel behavior. A large appetite for exploration shapes their identity through personal interactions as they focus their spending power on experiences rather than things. This mindset creates a halo effect on both younger and older generations, increasing the desire to explore the world for all ages. Travel is seen as a necessary asset to building a rich life.

say that experiences represent who they are, not the objects they possess. would travel

all the time

if they could

Only 3% of young people have never traveled.

6/10 71%

7

Beach74%

52%

56%

48%

Culinary Experiences

Outdoor Activities

Sports

Spas/Resorts

Casinos

Festivals

Camping

Cultural Activities

Shopping

55%

42%

36%

55%

37%

12%

Favorite Vacation Activities They seek a diverse set of activities when exploring new destinations, blending different types of experiences together in order to truly engage with the local culture.

Travel Preferences

Young people’s travel pursuits reflect their adventurous atti-tude. Their primary motivations for traveling center on exploring new places, people, and culture.

1. Exploring and learning about different places

4. Learning about a different culture

5. Meeting and engaging with different people

3. The sense of adventure that comes from visiting a new place

2. Relaxing and taking a break from the obligations of everyday life

66% describe themselves as adventurous and love placing themselves in new situations.

Top motivations for travel:

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Travel Planning

When it comes to planning trips, young people access a broad network of travel planning resources, with inspiration coming from almost anywhere. 6 in 10 get travel ideas from all types of stories (news, fashion, food, technology, etc.) They prefer to plan personal travel ahead of time, searching for deals, culture tips and travel hacks during the planning process. Like everything else in their lives, young people expect a seamless experience when engaging with travel content, including the ability to access this information on the go via their mobile devices. E

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Topics searched when planning a trip:

1. Deals and sales2. Booking information3. Details about the culture4. Travel hacks and tips

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Barriers to Travel

Cost of getting to destination45%

Exchange rate28%

20%

Visa requirements44%

Required immunizations23%

Language barrier at destination25%

Availability of information about destination in native language19%

Personal safety at destination42%

Political stability at destination37%

Despite a strong desire to travel the world, there are barriers keeping young people from exploring as freely as they wish.

Travel distance to destination

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Conclusion

While a lack of relevant native language tools aren’t enough to stop young people from traveling, few actually feel comfortable booking in other languages.

Their preferred travel planning language is most commonly the native language of the country they reside in.

feel very comfortable booking or conducting travel research in a different language than their own.

are more likely to use a travel company or website that provides localized content to help with booking and planning trips.

Demand for these services will only continue to increase as their populations and economies grow.

To effectively reach these young travelers, brands must consider the following:

Onl

y 14%73%

There is a clear desire for more relevant travel products and digital content – especially in Latin America, the Middle East, and Southeast Asia.

How young people approach the travel experience

What young travelers want to explore on trips

Where and how they access travel and booking information