Globally, two in five travellers are planning to spend more on travel in 2015 than they did last year, with travellers twice as likely to increase rather than decrease their travel budgets
TripAdvisor has announced the results of the TripBarometer1 study, one of the world’s largest accommodation and traveller survey. Conducted on behalf of TripAdvisor by independent research firm Ipsos, the TripBarometer study is the analysis of more than 44,000 global responses from travellers and the hotel sector, with 1037 respondents from India.
According to the study, more than half (53 per cent) Indians will increase their travel budget in 2015. Of those planning to increase their travel spend, 52 per cent indicate that they plan to do so because they feel vacations are something they or their family deserve and 46 per cent say it is because they are going somewhere on their ‘wish list’ this year. On the other hand, only 23 per cent Indians say they are decreasing their travel spend this year and that is largely driven by financial factors. Around 37 per cent of those cutting spend this year say they do not have enough money saved, while 33 per cent are planning a shorter trip and 27 per cent plan to visit less expensive countries.
Commenting on the findings Nikhil Ganju, country manager, TripAdvisor India said, “Against the conducive backdrop of general optimism about the prospects of the Indian economy, both travellers and hoteliers are expressing clear intentions that paint a positive picture for the Indian travel sector in 2015. Significantly, this optimism looks set to translate into a sharp spike in the number of Indians travelling abroad this year. At the same time, Indian hoteliers ranked second on the global hotelier confidence index, resonating their own confidence in the economy’s prospects.”
Globally, two in five travellers are planning to spend more on travel in 2015 than they did last year, with travellers twice as likely to increase rather than decrease their travel budgets. Forty one per cent of travellers globally plan to up their travel budgets in 2015, while 23 per cent say they will decrease their spending.
Travellers from India reported spending an average of INR 202,500 on their holidays in 2013. Looking at 2014 spend, this number increased by eight per cent to INR 217,800. However, the current study reports a more positive trend, with Indians planning to spend an average of INR 255,100 on travel in 2015, up 17 per cent year over year.
Indians have their sights set on foreign shores with the average number of international trips set to increase by 45 percent which far exceeds the global average of 15 per cent. Other than India, travellers in Turkey and New Zealand are showing the highest increase in the average number of international trips they are planning this year, 58 per cent and 39 per cent respectively. On the contrary Russians, Thais and Austrians are decreasing the average number of international trips they will take in 2015, nine per cent, six per cent and four per cent respectively. Globally, however, domestic travel still outpaces international travel, as nearly 60 per cent of all trips planned in 2015 will be taken in travellers’ home country.
The 2015 TripBarometer looked at the correlation between the type of trips travellers plan to take in 2015 and how they will spend their travel budgets. The study reveals the estimated portion of each nationality’s travel budget that will be spent in their country of residence.
For Indian travellers, the average estimated travel budget for 2015 is INR 255,100. Considering that 67 per cent of their planned trips will be taken domestically in 2015, this could amount to an estimated INR 170,917 average spend per traveller in India this year.
Australia, Switzerland, New Zealand and France are the top dream destinations for Indian travellers in the next 24 months, if money were no object. Above 61 per cent Indian travellers say they are saving money to go on their dream holiday, 37 per cent are waiting until they have more time to explore the destination properly and 27 per cent are waiting for prices of flights to improve. Only 11 per cent Indians (vs 16 per cent global travellers) say currency exchange rates are a barrier for hoping to visit their dream destination.