october 2019 australians on holiday - cato · the council of australian tour operators’ (cato)...
TRANSCRIPT
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INTERNATIONAL LEISURE TRAVEL TRENDS 2018
AUSTRALIANSon HOLIDAY
A report by
OCTOBER 2019
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Australians are renowned as passionate and adventurous travellers, but what really makes them tick?The Council of Australian Tour Operators’ (CATO) Australians on Holiday – International Leisure Travel Trends report is designed to help key stakeholders – including travel professionals, government bodies and media – understand just that.
Drawing on information compiled from the Australian Bureau of Statistics for 2018 and an independent consumer survey¹, the report provides fresh insights into the scale, nature, contribution and potential of Australia’s outbound leisure market.
The inaugural report shows that in 2018, Australian holidaymakers:
• took 6.3 million overseas leisure trips (representing a market penetration of 25.1%)²
• spent more than AUD$46 billion in total and an average of AUD$7,300 per person
• visited an average 3.4 countries per trip
• enjoyed an average journey length of 22 days.
It also shows that South East Asia was by far the most popular region for a break, accounting for 35% of all holiday departures – more than the combined total of the next two most popular destinations, Oceania (16%) and Europe (16%).
In terms of most popular countries, Indonesia sat head-and-shoulders above the competition as the primary choice of destination, attracting 55% more holiday visitors than the United States, which placed second, and more than double that of third-placed New Zealand. Overall, Asian destinations filled nine of the top 15 holiday destinations in 2018.
Future reports, using comparative data, will reveal holiday trends across all key areas, but in 2018 we can already identify interesting differences between age groups. In particular, a greater tendency for older travellers (51+ years) to operate with larger holiday budgets, take longer breaks and explore long-haul destinations such as Europe.
At the same time, the report highlights a propensity for travellers who have entered retirement - a group set to expand significantly over the next decade - to gradually take fewer (albeit longer) overseas trips.
EXECUTIVE SUMMARY
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PASSIONATE TRAVELLERS
Holiday 57%
VFR 26%
Business 13%
Other 4%
Australian holidaymakers enjoyed a total of 6.3 million overseas leisure trips³ in 2018, representing 57% of all outbound departures.While Australians aged 18-35 years were the most active travellers in 2018, the appeal of an overseas holiday was strong across almost all age groups.
With the exception of children aged 17 years and younger, each age category’s share of total leisure trips correlated to its share of the total Australian population.
Demand only began to taper off once travellers moved into the 71+ age bracket.
Holidaymakers by age
Outbound travel 2018
30%
25%
20%
0%
5%
10%
15%
0-17 18-35 71 +61-7051-6036-50
22%
26%
20%
12%10% 10%
15%
28%
23%
16%
13%
6%
% AUS population
Age
% of holiday trips 2018
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FAVOURITE HOLIDAY HAUNTS
Asia accounted for half of all Australian holiday breaks in 2018. South-East Asia was by far the most popular region, welcoming 35% of all leisure trips – more than the combined total of the next two most popular destinations, Oceania (16%) and Europe (combined 16%). Australian travellers’ affinity with Bali helped Indonesia comfortably secure top spot as the most popular country for a holiday⁴, followed by the USA and NZ. As expected, short and medium-haul countries across Asia and the Pacific dominated. Holiday preferences were fairly consistent across all age groups with two exceptions: South East Asia and Europe.
South East Asia 35%
North East Asia 6%
Oceania 16%
The Americas
14%
South & Central Asia 9%
North West Europe 9%
Southern & Eastern Europe 7%
Other 4%
Holiday market share by regions
Destination region by age
30%
25%20%
0%
5%
10%
15%
37%
35% 39
%
% v
isiti
ng
35%
30%
35%
40%
27%
12% 15
%13
%20
% 24% 26
%
South-East Asia Europe
0-17 18-35 71 +61-7051-6036-50
South East Asia’s allure steadily waned once Australians passed the 50 year marker, while Europe’s appeal intensified. With European holidays generally requiring more travel time and
larger budgets, it seems natural it would draw older Australians less likely to be burdened by family dependents and financial debt.
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1081
Top 15 holiday destinations by country*
Canada 106111India
Hong Kong 116123Malaysia
Italy 193203China208Vietnam
ThailandJapan
United KingdomFiji
Singapore
IndonesiaUSA
New Zealand
222266
300333
449612
697
0 12001000800600400200Number of trips (‘000)
* Ranked by primary destination (country in which traveller spent most time)
15-30 days35%
7-14 days39%
<6 days11%
1-2 mths11%
AVERAGE22 days
3.4 countries
More mature travellers preferred a slower pace, with more time allotted to fewer destinations
Australia’s distance from most overseas destinations translated to relatively long holiday breaks with the average overseas trip lasting 22 days. With the exception of a dip for Australians aged 36-50 years,
holiday length steadily increased in line with age category.
The most significant jump occurred once travellers moved into the 51-60 year age group.
TIME & MONEY
Holiday duration
Australians visited an average of 3.4 countries per trip in 2018. Older travellers (51-70 years) tended to focus on fewer countries than those aged 18-35 years. Given they also spent longer on holiday, the findings suggest more
mature travellers preferred a slower pace, with more time allotted to fewer destinations. Based on the findings, older travellers appeared more likely to be returning to favourite countries to pursue more in-depth exploration.
FAVOURITE HOLIDAY HAUNTS
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In total, Australians spent just over $46 billion on overseas holidays, with the average traveller spending just over $7,300 per trip. This figure includes airfares, accommodation and transport, along with additional expenses prior to departure and while travelling.
The biggest spenders were those aged 51-60 years and 18-35 years. Holiday expenditure dipped significantly for travellers aged 36-50 years in line with social trends that imply peak financial pressures, young family commitments and time constraints.
Holiday duration by age group
18-35
36-50
51-60
61-70
71+
16.2
13.8
21.5
24
27.3
0 252015105Average number of days on holiday
18-35
36-50
51-60
61-70
71+
4.9
3.4
2.0
2.2
3.1
0 54321Average number of countries visited
TIME & MONEY
Number of countries visited (per trip)
Average spend (per person)
$7600
$7400
$7200
$6400
$6600
$6800
$7000
$7722
$6677
$7790
$7205
$7017
$8000
$7800
18-35 71 +61-7051-6036-50
Age
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Australians utilised multiple forms of land-based holiday transport⁵ last year, including rental vehicles, rail journeys, coach tours and bus trips. The average traveller reported using 1.6 different modes of land-based travel during their overseas leisure break.
ON THE MOVE
Travellers in the 18-35 year group were most likely to travel by coach/bus, with 36% including an element in their international itinerary.
Land-based transport30%
25%
20%
0%
5%
10%
15%
Car orMotorhome
Coach/BusRail
28%
23% 22%%
trav
elle
rs w
ho u
sed
Coach/Bus travel by age group
18-35
36-50
51-60
61-70
71+
36
16
12
16
25
0 252015105% Holidaymakers
30 35
Coach/Bus travel: average number of days
18-35
36-50
51-60
61-70
71+
5.7
6.6
7.9
14
11.1
0 108642Number of days
12 14
Average 7.4
However, these travellers took shorter duration trips, suggesting a skew towards more point-to-point travel.
Travellers aged 61-70 years embarked on considerably longer coach/bus excursions (14 days, almost double the average).
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Travelled in group
77%Travelled alone 23%
Solo travellers accounted
for 23% of all holidaymakers
in 2018
Almost a quarter of Australians travelled alone on a holiday in 2018, while the remainder holidayed with a spouse, partner, friend or in a family group.
ON THE MOVE
By comparison, the percentage of Australians travelling by themselves on an overseas sojourn remained consistent across all age groups.
Travel: solo versus group
As expected, family travel peaked for those aged 18 to 50 years of age, with a dramatic decline once Australians moved into their 50s.
Solo travellers
18-35
36-50
51-60
61-70
71+
21
22
23
26
26
0 252015105% Holidaymakers
30
Family travel
18-35
36-50
51-60
61-70
71+
42
44
15
10
11
0 252015105% Holidaymakers
30 454035
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Just over 40% of Australian international holidaymakers started planning their break between three and six months prior to departure, with a quarter beginning the process less than three months before their trip began.
Considering the cost, duration and distances travelled, the number of travellers who started planning their overseas journey more than 12 months in advance was surprisingly small at just 6%.
PLANNING & BOOKING
On average, Australians used 1.6 different distribution channels to book their trip, with 66% booking at least some of their overseas holiday through a traditional ‘bricks-and-mortar’ travel agent or an online travel agent, and just 20% booking direct with a tour operator⁶.
3-6 mths42%
<3 mths25%
6-12 mths27%
1-2 yrs5%
Time planning commenced prior to departure
Other
Booking channels60%
50%
40%
0%
10%
20%
30%
AirlineDirect
Travel Agent(offline)
44%
35%31%
Travel Agent(online)
29%
HotelDirect
20%
TourOperator
Direct
>2 yrs 1%
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PLANNING & BOOKING
Travellers aged 61 years and older were more likely to book through off-line travel agents rather than their online rivals.
For all other age categories, the split between online and off-line retailers was fairly even, with Australians aged 36-50 years - a group that in 2018 operated with smaller holiday budgets, took shorter holidays and favoured medium-haul destinations - the most likely to favour OTAs.
Booking trends: travel agents60%
50%
40%
0%
10%
20%
30%
% w
ho b
ooke
d
18-35 71 +61-7051-6036-50
Age
36%
27% 28%
46%
55%
32%12%
32%30%35%
Online Offline
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1: Results quoted in the 2018 report are based on a combination of ABS visitor research, and consumer surveys involving more than 3,000 Australians who took an overseas holiday in 2018. Findings were also cross-referenced with data from Tourism Research Australia.2: Based on Australia’s population of 25.2 million (per ABS) as at 31 December, 2018.
3: Tourism Research Australia also tracks Australian outbound holiday traffic, however, its figures do not include leisure journeys taken by Australians aged 15 years or younger, resulting in a lower total figure.4: The ranking reflects holiday traffic only and not the total number of short-term departures to each destination.
5: Rail and coach/bus categories incorporate a variety of travel options, including point-to-point journeys, multi-day excursions, sightseeing day tours and extended coach journeys. Future research will explore these options in more depth.6: Tour operators include any travel intermediary that creates packaged tour products.
When asked to name the regions they were considering for their next holiday, Oceania was a clear favourite, followed by South East Asia, Europe and North East Asia.
With the exception of South East Asia, these preferences far exceeded the proportion of visitors these regions attracted in 2018.
While the results may reflect travellers’ aspirations, rather than firm plans, they may also suggest that Oceania, Europe and North Asia were poised for growth in 2019.
Only two regions recorded preferences below their 2018 results: South East Asia and Southern & Central Asia.
This may signpost a drift in Asia-bound holiday traffic from established SEA holiday spots towards emerging destinations in North East Asia, including China, Japan and South Korea.
WHERE NEXT?
THE COUNCIL OF AUSTRALIAN TOUR OPERATORS
Where would you like to go next?40%
0%
10%
20%
30%
Oceania SE Asia Southern& Eastern
Europe
NW EuropeSouthern & Central Asia
NE Asia
38%
30%
21%
6%
23%
15%16%
35%
6%9% 9% 7%
Preference
Trav
elle
rs S
urve
yed
Nth Africa & Middle East
5% 2%
Americas
18%
14%
2018
The Council of Australian Tour Operators (CATO) is the representative body for Australian-based ATAS accredited tour operators and wholesalers. CATO members work with hoteliers, airlines and other suppliers to assemble and sell through travel agents
and direct to Australian consumers – domestic and international travel packages. CATO’s activities on behalf of its members cover a wide range of services, including advocacy, research, events, marketing, networking and industry awards.
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LOCATION GUIDE
Brunei
Cambodia
Indonesia
Laos
Malaysia
Myanmar
Phillippines
Singapore
Thailand
Timor-Leste
Vietnam
China
Hong Kong
Japan
Korea, North
Korea, South
Macau
Mongolia
Taiwan
Bangladesh
Bhutan
India
Maldives
Nepal
Pakistan
Sri Lanka
Afghanistan
Armenia
Azerbaijan
Georgia
Kazakhstan
Kyrgyzstan
Tajikistan
Turkmenistan
Uzbkistan
ASIA
SOU
TH E
AST
ASIA
NO
RTH
EAS
T AS
IASO
UTH
ERN
& C
ENTR
AL A
SIA
USA
Canada
Bermuda
Argentina
Bolivia
Brazil
Chile
Columbia
Ecuador
Falklands Is.
French Guiana
Guyana
Paraguay
Peru
Suriname
Uruguay
Venezuela
Bahamas
Belize
Caribbean Is
Cayman Is.
Costa Rica
Cuba
El Salvador
Guatemala
Honduras
Mexico
Nicaragua
Panama
Virgin Is.
AMER
ICAS
CEN
TRAL
NTH
SOU
TH
England
Scotland
Wales
Ireland
Channel Is.
Isle of Man
Austria
Belgium
France
Germany
Liechtenstein
Luxembourg
Monaco
Netherlands
Switzerland
Denmark
Finland
Greenland
Iceland
Norway
Sweden
Gilbraltar
Italy
Malta
Portugal
Spain
Albania
Bosnia
Bulgaria
Croatia
Cyprus
Greece
Moldova
Romania
Slovenia
Montenegro
Serbia
Kosovo
Belarus
Czech Republic
Estonia
Hungary
Latvia
Lithuania
Poland
Russia
Slovakja
Ukraine
EURO
PE
NO
RTH
NO
RTH
WES
TW
ESTE
RNSO
UTH
Bahrain
Iran
Iraq
Israel
Jordan
Kuwait
Lebanon
Oman
Qatar
Saudi Arabia
Syria
Turkey
Unit. Arab Em.
Yemen
MID
DLE
EAS
T
MID
DLE
EAS
T
Sth Pacific Is.
New Zealand
AntarcticaOCE
ANIA
OCE
ANIA
Algeria
Egypt
Libya
Morocco
Sudan
Tunisia
West. Sahara
Sth. Sudan
Benin
Burkina Faso
Cameroon
Cabo Verde
Chad
Cote d’Ivoire
Equator. Guinea
Gabon
Gambia
Ghana
Guinea
Guinea-Bissau
Liberia
Mali
Mauritiania
Niger
Nigeria
Senegal
Sierra Leone
Togo
Angola
Botswana
Burundi
Comoros
Djibouti
Eritrea
Ethiopia
Kenya
Lesotho
Madagascar
Malawi
Mauritius
Mayotte
Mozambique
Nambia
Reunion
Rwanda
St Helena
Seychelles
AFRI
CA
SOU
TH &
EAS
TN
ORT
HCE
NTR
AL &
WES
T
SOU
TH E
AST
EAST
Somalia
South Africa
Swaziland
Tanzania
Uganda
Zambia
Zimbabwe
AFRI
CA
SOU
TH &
EAS
T
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FOR FURTHER INFORMATIONCouncil of Australian Tour Operators Inc.
Suite 3, Level 31, 31 Market Street, Sydney NSW 2000 Web: www.cato.travel Email: [email protected]
WITH THANKS TO OUR PARTNERS COMPILING THIS REPORT: