hispanic summer travel

Hispanic Travel TrendsDiscover Their Behavior

2014

2

❶ Hispanic Market

❷ Survey on Travel Habits & Attitudes• How often do Hispanics travel?• Where are they traveling? • Who do they travel with? • How much do they spend on vacations?• Do they use travel professionals?• What types of vacations would they like to take?• How do their traveling habits differ from non-Hispanics?

Hispanics are expected to number 66 million and make up 19% of the population by the year 2020.

3

12% 12% 12% 13%

4% 5% 6%9%

13%17%

19%

4%

3%

3%2%

76%69%

63% 60%

African American

Asian

Hispanic

Other

White

U.S. Population by Race/Ethnicity1990 – 2020 (Projected)

Source: U.S. Census Bureau (2012 American Community Survey [ACS] 1-year estimate. 2000 Census data. 1990 Census data. Size of Asian Non-Hispanic not available for 1990.

1990 2000 Today 2020(Projection)

Hispanic Population:52 million currently66 million in 2020

Whites will become a minority by 2050

2.7

3.1

3.5

2.5

On average, Hispanics are younger and have larger households compared to Non-Hispanics.

4

33.2

36.1

27.7

42.6

Source: U.S. Census Bureau (2012 American Community Survey [ACS] 1-year estimate. 2000 Census data. 1990 Census data. Size of Asian Non-Hispanic not available for 1990.

AfricanAmerican

Asian Hispanic White

Mean Age Mean Household Size

AfricanAmerican

Asian Hispanic White

This translates into larger party sizes when traveling

5

491

1004

1189

1607

Hispanic Purchasing Power(In Billions)

“At $1.2 trillion, U.S. Hispanic purchasing power today is larger than the economies of all but 13 countries”

- Jeff Humphreys, director of the Selig Center.

2000 2010 2013 2018

Source: Selig Center for Economic Growth, University of Georgia, June 2013

1.2 Trillion

Hispanics express more optimism about the U.S. economy compared to Non-Hispanics.

6

41%

25%

18%

14%

2%

37%38%

14%

9%

1%

betterthan last

year

about thesame aslast year

worsethan last

year

Not sure Prefer tonot

answer

2012-13 2013-14

37%38%

14%

9%

1%

27%

34%

28%

12%

0%

betterthan 2013

about thesame as

2013

worsethan 2013

Not sure Prefer tonot

answer

Hispanics non-Hispanics

Optimism About Economy

I think the economy this coming year will be…..

Hispanics

Source: ThinkNow Research Omnibus Study: February 2014 & February 2013

Greater optimism about the economy

correlates with spending

Source: ThinkNow Research Omnibus Study: February-December 2014

Approximately 4-in-10 Hispanic households fall into either the “Upscale” or “Affluent” income groups.

7

indicates statistically significant differences (95% confidence)

<$50k59%

Upscale ($50k-$99k)

28%

Affluent ($100k+)

13%

Hispanics

Hispanic Travel Survey

8

Method Online survey via ThinkNow’s National Omnibus Study

Survey Dates Feb-Dec ’14 (Collected over several waves)

Base SizesHispanics (n=2,021)Non-Hispanics (n=1,224)

Sampling Criteria Self-identified as Hispanic origin or non-Hispanic originAge 18-64

Weighting:Weights applied with respect to gender, age and region for each sample to targets defined by the U.S. Census Bureau.

Most Common Activities

Which of the following activities have you taken part in over the past 2 years?Base: All Respondents (n=417 Hispanics and n=313 non-Hispanics)

Hispanics and non-Hispanics are not too far off in terms of the leisure activities they take part in.

9

Upper Case letters indicates statistically significant differences (95% confidence)

66%61%

43% 42% 42%

34%31%

25%22%

19% 18%

69% 70%

46%51%

36%

30%

38%36%

23% 22%

12%

Visiting family Entertainment Arts andculture

Rest andrelaxation

Sports Adventure Nature- basedexperience

History/Heritage

Culinary Cruising Faith-based

Activities in the Past 2 Years

Hispanics (D) Non-Hispanics (E)

D

D

E

Cruising equally likely among both

groups

Activities Most Interested in DoingTaking a cruise is at the top of the list of activities that Hispanics as well as non-Hispanics would like to do in the next two years.

10


43%

33%30%

27% 26%22%

18% 18% 17% 15%12%

38%33%

29%26%

23% 25%

15%12% 12% 13% 14%

Cruising Rest andrelaxation

Nature-basedexperience

Adventure History/Heritage

Culinary Arts andculture

Entertainment Sports Visiting family Faith-based

Activities Would Like to do in Next 2 Years


Which of the following activities would you like to do in the next 2 years?Base: All Respondents (n=417 Hispanics and n=313 non-Hispanics)

Frequency of Vacations

Q: How many vacations do you take per year?Base: All respondents (n=2,021 Hispanics and n=1,224 non-Hispanics)

The likelihood of taking vacations increases with increasing household income. Overall, Hispanics and non-Hispanics are equally as likely to take at least one vacation per year.

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79%

72%

89%

96%

79%

65%

88%

96%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total <$50k Upscale($50k-$99k)

Affluent($100k)

Percent Taking 1+ Vacations per Year



A

E

1.58

1.17

1.91

2.95

1.54

1.13

1.63

2.34

0

0.5

1

1.5

2

2.5

3

3.5

4

Total <$50k Upscale($50k-$99k)

Affluent($100k)

Avg. Number of Trips Per Year


Travel Companion

When you book a vacation, who of the following are most likely to join your trip?Base: All Respondents (n=417 Hispanics and n=313 non-Hispanics)

Hispanics are more likely to travel with others compared to non-Hispanics.

12


7%

63%

52%

22%

18%

16%

2%

29%

4%

3%

2%

1%

1%

14%

61%

40%

17%

14%

14%

1%

23%

2%

3%

1%

1%

1%

I travel alone

Spouse or partner

Children

Parents

Siblings

Relatives/Extended family

Grandparents

Friends

Church members

Work/Business colleagues

Classmates

Neighbors

Clubs/Associations/Affinity Groups

Who Likely to Travel With


Family (Net)

H: 88% ENH: 81%

D

E

Yes42%

No58%

Hispanics

Travel Professionals

Have you booked a trip in the past 2 years using a travel professional (travel agent or tour operator)?Why haven't you booked a trip in the past 2 years using a travel professional (travel agent or tour operator)?Base: All Respondents (n=417 Hispanics and n=313 non-Hispanics); Haven’t booked a trip using travel professional (n=231 Hispanics and n=212 non-Hispanics)

Hispanics are more likely to use a travel professional compared to Non-Hispanics. The biggest reason for not using a travel professional is preference for online.

13


Yes36%

No64%

Non-Hispanics

Booked a Trip Using Travel Professional in Past 2 Years

35%

19%

17%

14%

9%

3%

3%

35%

19%

15%

24%

8%

2%

1%

I book online/ make travelreservations by myself

Have not time totravel/have not traveled

Can`t afford a vacation/nomoney

Haven`t had a need for atravel professional

Travel professionals aremore expensive

I travel by car/I drive

Don`t know enough abouttravel professionals

Reasons for Not Using Travel Professional in Past 2 Years

Hispanics (D)

Non-Hispanics (E)

D

Most Important When Choosing Travel Professional

When using a travel professional to arrange your vacation, what are the most important criteria in choosing a travel professional?Base: Have booked a trip using a travel professional (n=186 Hispanics and n=101 non-Hispanics)

For Hispanics, having a travel professional who understands the needs of Hispanic travelers ranked highest in terms of importance when booking a vacation, followed by price and quality of vacations.

14


34%

18%

13%

10%

10%

5%

4%

5%

21%

22%

34%

21%

2%

The travel professional understands the specificneeds and interests of the Hispanic traveler.

The pricing of vacations offered.

The quality of vacations offered.

Travel professional speaks Spanish.

The types of vacations offered.

The quality and reputation of the travelprofessional/organization.

Incentives and loyalty programs offered.

The travel professional’s website and brochures are bi-lingual (Spanish/English).

Criteria Ranked 1st


E

D

D

“Types of vacations offered” is less important to Hispanics

than NH, as is “quality/reputation of travel

professional”.

n/a

n/a

n/a

Amount Spent on Domestic Vacations

Q: How much do you typically spend for a vacation in the United States?Base: Take vacations (drive or fly) domestically (n=1,482 Hispanics and n=914 non-Hispanics)

On average, Hispanics spend about $2,400 on a vacation traveling within the U.S. Hispanics spend more than non-Hispanics across all income brackets, in part because they are more likely to fly and have larger families on average.

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$2,359

$1,819

$2,623

$3,643

$2,006

$1,517

$1,981

$2,798

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

Total <$50k Upscale ($50K-$99K) Affluent (100K+)

Average Spending per Vacation in U.S.


AE

E


74% 72%76% 77%

83%88%

83%

75%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total <$50k Upscale ($50k-$99k) Affluent ($100k+)

Take Vacations in U.S. by CarAmong Travelers


Domestic Vacations by Car

Q: When you vacation, do you usually travel domestically or internationally? A: Domestically (U.S.) - DriveBase: Respondents who take at least 1 vacation per year (n=1,629 Hispanics and n=943 non-Hispanics)

Among travelers, the likelihood of taking a vacation by driving domestically does not vary by income among Hispanics, but Hispanics with income levels under $100,000 are less likely to take driving vacations than non-Hispanics.

16

DD

D


Domestic Destinations by Car

Q: Where did you drive for your last 2 domestic vacations?Base: Respondents who travel domestically by driving (n=1,201 Hispanics and n=791 non-Hispanics)

In general, Hispanics are more likely to take domestic vacations by car to California, Nevada and Texas compared to non-Hispanics. Both are equally like to drive to Florida.

17


CA30%16%

TX13%6% FL

26%27%

NV14%7%

AZ6%4%

CO6%4%

NY10%8%

E

E

E

HispanicsNon-Hispanics

Top 7 destinations for Hispanics shown

Domestic Vacations by Air

Q: When you vacation, do you usually travel domestically or internationally? A: Domestically (U.S.) - FlyBase: Respondents who take at least 1 vacation per year (n=1,629 Hispanics and n=943 non-Hispanics)

Upscale and affluent Hispanic travelers are more likely than non-Hispanics to take domestic vacations by flying somewhere.

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47%

34%

55%

77%

41%

30%

41%

56%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%


Take Vacations in U.S. by AirAmong Travelers


E

E

E

International Vacations

Q: When you vacation, do you usually travel domestically or internationally? A: InternationallyBase: Respondents who take at least 1 vacation per year (n=1,629 Hispanics and n=943 non-Hispanics)

Overall, Hispanics are significantly more likely than non-Hispanics to take vacations outside of the U.S., although there is less of a difference among affluent travelers.

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31%

27%

31%

44%

18%

8%

15%

35%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%


Take Vacations InternationallyAmong Travelers


E

E

E

E


19%

18%

11%

10%

10%

7%

7%

6%

5%

5%

13%

29%

4%

3%

17%

4%

13%

6%

9%

3%

2%

22%

Caribbean - any country

Mexico

South America - any country

Canada

Central America - any country

England

France

Italy

Australia

Spain

Other

International Destinations in Past 2 Years


D

International Destinations

Q: What were the last 2 vacation destinations you visited outside the United States?Base: Take vacations internationally (n=513 Hispanics and n=138 non-Hispanics)

The Caribbean, Mexico and South American countries are the top international destinations for Hispanic travelers.

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HHI <$50kUpscale

($50k-$99k)Affluent ($100k+)

HispanicsNon-

HispanicsHispanics

Non-Hispanics

HispanicsNon-

Hispanics(F) (G) (H) (I) (J) (K)

24% H 16% 14% 14% 19% 41% J

21% G 3% 17% - 12% 7%

11% J 5% 16% IJ 3% 4% 2%

6% 18% 14% F 19% 12% 17%

9% 6% 10% - 13% 6%

4% 17% 8% 16% 16% FH 10%

2% 5% 10% F 11% 16% FK 4%

3% 3% 9% F 17% 9% 8%

3% 6% 5% 3% 11% FK 2%

4% - 4% 8% 12% FH -

14% 16% 12% 20% 15% 24%

188 30 213 59 95 48


E

E

E

D

Amount Spent on International Vacations

Q: How much do you typically spend for a vacation internationally?Base: Take vacations internationally (n=513 Hispanics and n=138 non-Hispanics)

On average, Hispanics spend nearly $5,700 on a vacation outside of the U.S., rising to over $8,700 among affluent Hispanics. Overall, Hispanics tend to spend less that non-Hispanics on international vacations as non-Hispanics are more likely to travel farther (i.e. Europe).

21

$5,693

$4,196

$6,035

$8,754

$6,485

$5,889 $5,916

$6,989

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000


Average Spending per International Vacation



AB

D

E

D

Hotels

Q: Which of the following hotels have you stayed at over the past year?Base: All respondents (n=2,021 Hispanics and n=1,224 non-Hispanics)

Hispanics are more likely than non-Hispanics to report staying at several hotel chains, including Embassy Suites, La Quinta and Motel 6.

22

23%

20%

17%

16%

16%

14%

11%

11%

12%

11%

8%

8%

7%

25%

21%

20%

12%

18%

14%

12%

7%

11%

6%

5%

6%

7%

6%

26%

Holiday Inn

Best Western

Hilton

Comfort Inn

Marriott

Days Inn

Embassy Suites

Hampton Inn

La Quinta

Motel 6

Hyatt

Super 8 Motel

Sheraton

Other

Hotels Stayed at in Past YearHispanics (D) Non-Hispanics (E)


E

E

E

E

Sample Profile

Sample Profile

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HispanicsNon-

Hispanics

Lower Income

Hispanics(HHI <$50k)

Upscale Hispanics

($50k-$99k)

Affluent Hispanics ($100k+)

Base (n=) 2021 1224 967 743 226

Gender:

Male 51% 49% 47% 58% 54%

Female 49% 51% 53% 42% 46%

Age:

18 to 24 20% 15% 26% 15% 9%

25 to 34 27% 20% 22% 34% 25%

35 to 44 24% 20% 22% 25% 30%

45 to 54 18% 23% 18% 16% 26%

55 to 64 11% 21% 12% 10% 10%

Mean age 37 41 37 37 40

Census Region:

Northeast 14% 19% 14% 15% 15%

Midwest 9% 24% 6% 12% 11%

South 36% 37% 42% 34% 24%

West 40% 20% 38% 40% 50%

Sample Profile

25

HispanicsNon-

Hispanics

Lower Income


Upscale Hispanics

($50k-$99k)


Base (n=) 2021 1224 967 743 226

Education:

Less than High School graduate 6% 3% 8% 2% 1%

High School Graduate/GED 22% 23% 31% 13% 7%

Some college/AA/Technical 39% 36% 42% 39% 28%

College graduate or more 32% 38% 19% 46% 64%

Household Income:

Less than $50,000 57% 45% 100% - -

$50,000 to less than $100,000 26% 29% - 100% -

$100,000 or more 12% 22% - - 100%

Prefer not to state 4% 4% - - -

Mean ($000) $60 $79 $26 $69 $200

Marital Status:

Married or living with partner 59% 57% 50% 71% 80%

Single, never married 31% 31% 37% 23% 15%

Separated/divorced/widowed 10% 12% 13% 6% 5%

Prefer not to answer 1% 1% 1% - -

Have Children <18 in HH 54% 41% 48% 61% 66%

Sample Profile

26

HispanicsNon-

Hispanics

Lower Income


Upscale Hispanics

($50k-$99k)


Base (n=) 2021 1224 967 743 226

Language Spoken at Home:

Spanish only 10% - 11% 9% 10%

Spanish mostly 23% - 23% 28% 26%

Spanish and English equally 29% - 29% 29% 28%

English mostly 20% - 20% 19% 17%

English only 18% - 18% 14% 18%

Acculturation

Less acculturated 13% - 15% 12% 9%

Bicultural 60% - 57% 63% 65%

More acculturated 27% - 28% 25% 26%

Born in U.S. 73% 92% 68% 78% 77%

Born outside of U.S. 27% 8% 32% 22% 23%

Country of Origin

Mexican/Mexican-American 57% - 56% 65% 62%

Puerto Rican 15% - 18% 12% 9%

South American 12% - 11% 12% 16%

Cuban 8% - 9% 7% 10%

Central American 8% - 8% 7% 4%

Dominican 3% - 4% 3% 1%

Key Insights

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Upscale and affluent Hispanic consumers are just as likely as their non-Hispanic counterparts to take vacations.

However, they are significantly more likely to fly somewhere domestically and/or travel internationally for their vacations.

As expected, likelihood of traveling increases with household income.

Regardless of income, Hispanics spend more money on average than non-Hispanics on domestic vacations, due at least in part to the fact that they are more likely to fly and because they have larger families.

Hispanics are more likely to use a travel professional to book a trip compared to non-Hispanics.

Having a travel professional who understands the needs of Hispanic travelers is very important – more so even than price and quality of vacations.

Key Insights

28

Hispanics are more likely to travel with others (mainly family) than non-Hispanics.

The top international destinations for Hispanic travelers are Mexico and countries in the Caribbean as well as South America.

Affluent Hispanics are more likely than lower income Hispanics to travel to western Europe (England, France, Spain) and Australia.

Affluent Hispanics report spending over $8,700 on average for an international vacation, compared to about $7,000 spent by affluent non-Hispanics.

Favorite hotel chains used by affluent Hispanics include Hilton, Marriott and Best Western.

Contact Info

Main Phone: 877-200-2710

Mario X. Carrasco, M.A. Managing Partner

[email protected]

Roy Eduardo Kokoyachuk, MBAManaging Partner

[email protected]