2006 esade- edreams survey trends in the price sensitivity of spanish tourists 2005-2006

2006 ESADE- eDREAMS SURVEY

TRENDS IN THE PRICE SENSITIVITY OF SPANISH TOURISTS

2005-2006

Authors:

Dr. Josep-Francesc Valls, Director of the ESADE International Tourism Symposium

Dr. Mar Vila, Director of ESADE's Centre for Tourism Management

Research Assistant:

Marta Molist

• 3,347 visitors to the eDreams web site who were aged between 16 and 66

• 63% women and 37% men

• Average age: 37

• Number of responses: 631 (18.85%) • Margin of Error: 3.51%, assuming a maximum confidence interval

(p=q=0.5) and 95% confidence level

Sample

15,34%8,37%

57,83%

68,99%

26,84%22,64%

0%

10%

20%

30%

40%

50%

60%

70%

15 - 24 years 25 - 44 years 45 - 66 years

2006

2005

Main reason for travelling

Source: ESADE – eDREAMS 2006

34%

24%24%23%

19%

23%

11%9% 8%

11%

2%4%

2% 2%0%

4%

0%

5%

10%

15%

20%

25%

30%

35%

Visits

Relaxa

tion

Friend

s and

family

Culture

Work

Congre

sses

Sports

Others

20062005

Days holiday


4% 3%

11%7%

22%26%

41%46%

8%7%2% 2%

13%9%

0%

10%

20%

30%

40%

50%

0 - 9

days

10 - 1

9 day

s

20 - 2

9 day

s

30 - 3

9 day

s

40 - 4

9 day

s

50 - 5

9 day

s

Over 6

0 day

s

20062005

Days spent travelling


17%16%

37%42%

28% 28%

12%10%

2% 2% 1% 1% 3% 1%0%

10%

20%

30%

40%

50%

0 - 9

days

10 - 1

9 day

s

20 - 2

9 day

s

30 - 3

9 day

s

40 - 4

9 day

s

50 - 5

9 day

s

Over 6

0 day

s

20062005

Number of journeys carried out in the previous year


3% 2%

9% 9%

41%37%

30%27%

5%7%

12%

17%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

None One Two-three

Four-six Seven-eight

Overeight

20062005


Budget earmarked for tourism compared with the previous year

40%35%

46%49%

11%14%

3% 3%

0%

10%

20%

30%

40%

50%

More The same Less No response

20062005

Reasons for travelling to a given destination


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

There are bargainDeals on theInternet

I have alwaysgone there

Friends and family recommend it

It is in vogue Seekingsomething new

Is a tourist brand that carries kudos

V. highHighMediumLowV. low

2006

2005

7%

10%

18%

28%

37%

40%

26%

20%

8%5%

10%

23%

39%

23%

5%

44%

32%

18%

4%2%

5%5%

16%

38%

35%

23%

21%

30%

17%

9%

0%

20%

40%

60%

80%

100%

There arebargain dealson the Internet

I have alwaysgone there

Friends andfamily recommend it

It is in vogue Seeking somethingnew

Is a tourist brand that carries kudos

V. highHighMediumLowV. low

Trends in the quality of tourist products


0%

10%

20%

30%

40%

50%


Presupuesto dedicado al turismo respecto al año anterior

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%


20062005

Willingness to pay more


0%10%20%30%40%50%60%70%80%90%

100%

I am unwillingto pay more

Would pay more ifthe touristproducts werebetter

NRNoYes

2006

200556%

20.44%

24%

51%

25.36%

23%

32%

42.31%

26%

13%

60.38%

26%

0%

20%

40%

60%

80%

100%

I am unwilling to paymore

Would pay more ifthe tourist products werebetter

Would pay more ifthe tourist products wereMore exclusive

Would pay more ifthe tourist products belongedto a prestigious brand

NRNoYes

Would pay more ifthe tourist products weremore exclusive

Would pay more if the tourist products belongedto a prestigious brand

1%7%

24%

39%

29%

47%

16%

17%

9%

10%

1%1%6%

52%

40%

1%1%4%

32%

62%

3%6%

21%

38%

32%

1%2%10%

42%

45%

26%

27%

33%

10%

3%

0%

20%

40%

60%

80%

100%

(A)It’scheaper

(B)It’s dearor dearer

(C)It providesqualityservice

(D)It providesvalue for money

(E) It providessomethingunique

(F)Friendlyservice

(G)A place withan excellentreputation

Very important - JFairly important - KNeither - LNot very important -MUnimportant - N

Quality factors linked to price.


0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

(A) (B) (C) (D) (E) (F) (G)

J

K

L

M

N

2006

2005

Does a higher price always mean greater quality?

6%

78%

16%

Yes No No response6%

93%

1%

2006

2005

7% 2%

46%

2% 2% 6% 4%21%

6% 5%

73% 87%

33%

83%73%

46%67%

47% 77%65%

19%11%

20% 15%25%

48%29% 32%

17%30%

0%

20%

40%

60%

80%

100%

Hotels

Restau

rants

Flight

Bars

Shops

Museu

ms

Shows

Car hir

e

Taxis

Congre

ss se

rvice

s

The sameDearerCheaper


Tourist price trends over the last three years in Spain

0%

20%

40%

60%

80%

100%

Hotels

Restau

rants

Flight

BarsSho

ps

Museu

ms

Shows

Car hir

eTax

is

Congre

ss se

rvice

s

SameDearerCheaper

2006

2005

Future price trends

15%3%

37%

3% 4% 7% 6%18%

5% 5%

63% 81%

41%

80% 74%

50%69%

53% 79%

53%

21% 16% 22% 17% 22%

43%

26% 29%16%

42%

0%

20%

40%

60%

80%

100%

Hotels

Restau

rants

Flight

BarsSho

ps

Museu

ms

Shows

Car hir

eTax

is

Congre

ss se

rvice

s

SameDearerCheaper


2006

0%

20%

40%

60%

80%

100%

Hotels

Restau

rants

Flight

Bars

Shops

Museu

ms

Shows

Car hir

eTax

is

Congre

ss se

rvice

s

Same

DearerCheaper

2005


Information search systems

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

(A) (B) (C) (D)

JKLM

N

2006

2005

1%2%7%

30%

61.0%

4%8%

24%

43%

20.1%

20%

27%

24%

22%

7.6%

10%

19%

34%

28%

8.7%

0%

20%

40%

60%

80%

100%

(A)Through theInternet

(B)Through themedia, guidesand travel books

(C)Throughtraditional travelagents

(D)Throughfriends and relatives

Strongly preferred - JPreferred - KNeither - LLittle preferred - MStrong negative preference - N

Purchasing channels

2006


2005

0%

20%

40%

60%

80%

100%

(A)

(B)

(C)

(D)

(E)

J

K

L

M

N

10%

12%

20%

32%

26%

7%9%

13%

35%

36%

17%

17%

22%

30%

14%

29%

23%

20%

22%

6%

17%

17%

22%

26%

19%

0%

20%

40%

60%

80%

100%

(A) Airli

ne w

eb si

tes

(B) O

nline

trave

l age

nts

(C) T

raditio

nal tr

avel

agen

ts

(D) B

y pho

ne

(E) In

perso

n

Strong preference - JPreferred - KNeither -LLittle preferred - MStrong negative preference -N

Is it always possible to find the cheapest price?

9%

42%

49%Yes

No

In most cases


5%

48%

47%

Y N In most cases

2006

2005

Important attributes when choosing a holiday

1% 1%13%

1% 1%1% 1%

18%

2% 3%4%

37%

12% 12%32%

43%

23%

49% 41%

63%51%

9%

36% 43%

5%0%

20%

40%

60%

80%

100%

Cheap

Good s

ervice

Famou

s bran

d

Conve

nienc

e

Reliab

ility

Very importantFairly importantNeitherFairly unimportantNot at all important

2006

CONCLUSIONS 2006

1. In the second year of the ESADE-eDreams survey, the general reason for "visiting the place" continues to be the most common reason for making the trip; the tourist destination needs to be attractive, novel, and to facilitate socialisation. However, the importance respondents placed on that most passive of reasons - relaxation - and the decline of culture and business as reasons for travel are particularly noteworthy features in this year's survey.

2. 40% of respondents said they had 30 to 39 days of holiday a year; 20%, had between 20 and 29 days. A slight change compared with the previous year was an increase in the proportion of respondents taking 10 to 19 days a year. With regard to the number of days spent on travel, those spending 20 to 29 days remain about the same (27%), there is a fall in those spending 10 to 19 days, and a slight increase in those spending over 30 days.

CONCLUSIONS 2006

3. The number of people travelling 2-3 times a year and 4-6 times a year rose, while those travelling over 7 times a year fell.• The amount spent by Spaniards on travel rose. The percentage of

those who said they spent the same or more than in the previous year rose to 85%.

• Demand for cheap tourist products through the Internet strengthened. The percentage of those unwilling to pay more on tourism fell. This means there is increasing interest in value for money and a stronger belief that higher prices mean greater quality. Exclusiveness and brand prestige continue to attract 30 and 15% of respondents, who value these attributes highly.

CONCLUSIONS 2006

4. A greater percentage of respondents believe that there has been an improvement in the quality of tourist products.

5. Tourists consider that prices have rocketed in most tourist services, with the exception of flights and museums. A smaller number of respondents believe that hotel prices will increase. The remaining respondents believe that hotel prices will remain more or less the same.

6. Increasing use is being made of the Internet: the media, brochures and traditional travel agencies are holding their ground.

CONCLUSIONS 2006

7. From the standpoint of travel purchases, online travel agency webs were much more popular than company web sites (36% strongly preferred agency web sites compared with 26% in the case of company webs, a reversal of the findings for the previous year). Impulse purchasers are becoming much more important (19% increase in strong preference compared with last year). Traditional tourist agencies have picked up slightly (14% showed a strong preference). In this respect, travellers continue seeking the cheapest prices, which confirms what we found in the majority of cases for the Internet.

8. Price is the most important attribute when choosing a holiday, followed by service and reliability.

2006 esade- edreams survey trends in the price sensitivity of spanish tourists 2005-2006

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