1 © gfk 2015 | millennial travel study | november 2015 millennial travel study - 2015 prepared for...
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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
2© GfK 2015 | Millennial Travel Study | November 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
3© GfK 2015 | Millennial Travel Study | November 2015
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
4© GfK 2015 | Millennial Travel Study | November 2015
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
5© GfK 2015 | Millennial Travel Study | November 2015
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?
6© GfK 2015 | Millennial Travel Study | November 2015
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
7© GfK 2015 | Millennial Travel Study | November 2015
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)
8© GfK 2015 | Millennial Travel Study | November 2015
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?
9© GfK 2015 | Millennial Travel Study | November 2015
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%)
10© GfK 2015 | Millennial Travel Study | November 2015
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?
11© GfK 2015 | Millennial Travel Study | November 2015
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?
12© GfK 2015 | Millennial Travel Study | November 2015
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
13© GfK 2015 | Millennial Travel Study | November 2015
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
Once in a year2 to 3 times a year4 to 5 times a year
Frequency - Domestic
Base : All :1049
67
29
4
Once in a year2 to 3 times a year4 to 5 times a year
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?
14© GfK 2015 | Millennial Travel Study | November 2015
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… ?
15© GfK 2015 | Millennial Travel Study | November 2015
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…
16© GfK 2015 | Millennial Travel Study | November 2015
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)
17© GfK 2015 | Millennial Travel Study | November 2015
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)
18© GfK 2015 | Millennial Travel Study | November 2015
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
Base : All those Aware of Travel Insurance : 954
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)
19© GfK 2015 | Millennial Travel Study | November 2015
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
Base : All those Aware of Travel Insurance : 954
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
21© GfK 2015 | Millennial Travel Study | November 2015
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.