Dispelling the myth; Youth travel is not a niche market David Chapman Director General – WYSE Travel Confederation
Dec 27, 2015
Dispelling the myth; Youth travel is not a niche market
David Chapman Director General – WYSE Travel Confederation
• Based in Amsterdam• Formed by the merger of FIYTO and ISTC in 2005• Home of eight sector associations
What is a niche market?
• A niche market is the subset of the market on which a specific product is focusing. The market niche defines the product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact.
• It is also a small market segment.
NEW HORIZONS lll
• The only longitudinal global study of youth travel
• Surveys every 5 years since 2002
• Expanding geographical coverage
• 137 Countries
• Sample size:
2002 2,3002007 8,5002012 34,000
Young travellers
today
Why do they
travel?
Where do they go?
What do they do?
How do they
research and book?
How much do they spend?
Where will they travel
in the future?
What do they
learn?
AGE PROFILE (IN %)
Under 20 20-22 23-25 26-30 Over 300
5
10
15
20
25
30
35
20072012
WHY ARE THEY TRAVELLING? (IN %)
0
5
10
15
20
25
30
35
40
45
50
MOTIVATIONS (IN %)
Visit friends and relatives living abroad
Help people and make a positive contribution to the destination
Develop my creativity
Be in a calm atmosphere
Test and develop my physical abilities/skills
Relax physically
Have a good time with friends from home
Meet other travellers
Avoid the hustle and bustle of the daily life
Build friendships with people from other countries
Relax mentally
Learn more about myself
Experience everyday life in another country
Interact with local people
Increase my knowledge
Explore other cultures
0 10 20 30 40 50 60 70 80 90 100
INFLUENCES ON DESTINATION CHOICE (IN %)
Going somewhere not too different from home
Concerns about natural disasters (e.g. Tsunamis, hurricanes...)
Epidemics (e.g. SARS, bird flu/avian influenza)
Concerns about war and political unrest
Concerns about terrorism and crime
Ability to meet family and friends
Other health related concerns (e.g. Hygiene, quality of food...)
Being able to speak the language
Ability to meet other travellers
Flexibility to change my plans
Ability to do non-tourist activities
Having contact with local people
Travelling as cheaply as possible
Feeling safe in the destination
Ability to widely explore destination
0 10 20 30 40 50 60 70 80 90 100
INFLUENCES ON TRIP TIMING (IN %)
Friends studying there
Special event taking place
Combined trip with work
Friends living there
Availability of special offers (e.g. Cheap air fare)
Suddenly had time available
0 10 20 30 40 50 60
HOW OFTEN DO THEY TRAVEL? (IN %)
Short duration trips in the last 5 years
Long duration trips in the last 5 years
Short duration trips in the last 12 months
Long duration trips in the last 12 months
0
10
20
30
40
50
60
70
2007 2012
TRAVEL STYLE (IN %)
Traveller Backpacker Tourist Other0
10
20
30
40
50
60
200220072012
LENGTH OF MAIN TRIP (IN DAYS)
TRIP LENGTH BY TRAVEL STYLE (IN
DAYS)
Backp
acke
r
Trav
elle
r
Tour
ist
Flas
hpac
ker
Volun
teer
0
10
20
30
40
50
60
70
80
2002 2007 20120
10
20
30
40
50
60
70
BOOKING ONLINE VS AGENCY VISIT (IN %)
Air trav
el
Surfac
e trav
el
Accom
mod
atio
n
Lang
uage
cou
rse
Wor
k ab
road
pro
gram
me
Stud
y ab
road
pro
gram
me
Insu
ranc
e
Tour
s0
10
20
30
40
50
60
70
80
Online In travel agency
BOOKING FACTORS (IN %)
Speed and efficiency
Flexibility to change my travel plans
Ability to book online
Having a travel shop/agent close by
Quality of information and services
Specialised student/youth products
Reputation, quality of travel agency
Range of different products available
Reputation, quality of travel agency
Buying a well-known brand
Mobile booking access
Price
0 10 20 30 40 50 60 70 80 90
INFORMATION SOURCES PRE-TRIP (IN %)
Fam
ily, f
riend
s
Destin
atio
n web
site
s
Revie
w w
ebsite
s
Tour
ope
rato
r
Prod
uct s
uppl
iers
Prin
ted
guid
eboo
ks
Info
rmat
ion
from
pre
viou
s vi
sit
Refer
ral/c
ompa
rison
web
site
s
Tour
ist i
nfor
mat
ion
office
Social
med
ia
Trav
el a
genc
y
New
spap
er, m
agaz
ines
Oth
er b
ooks
TV/rad
io
Emba
ssy/
cons
ulat
e
Exhi
bitio
n/fa
ir/trad
e sh
ows
0
10
20
30
40
50
60
70
80
90
100
WHAT DO THEY WANT FROM A WEBSITE? (IN %)
Info
rmat
ion
abou
t des
tinat
ion
Web
site
with
info
from
diff
eren
t sup
plie
rs
Trav
el re
view
s
Web
site
sav
es m
y en
quiry
Can
book
who
le tr
ip o
n on
e web
site
Spec
ial s
tude
nt a
nd y
outh
pro
duct
s
Trav
el A
pps
Link
to soc
ial m
edia
0
10
20
30
40
50
60
70
HOW DO THEY GET THERE? (IN %)
Other
Bicycle/moped/motorcycle
Car
Rail
Air
Bus
0 5 10 15 20 25 30 35
20072012
WHERE DO THEY STAY? (IN %)
Hos
tel
Hot
el
Apartm
ent
Fam
ily/fr
iend
s
Bed &
bre
akfa
st/p
rivat
e ro
om
Guest
hous
e, p
ension
Stud
ent r
esid
ence
Oth
er
Self
cate
ring
Tent
/car
avan
Couc
hsur
fing
Cam
perv
an/m
otor
hom
e0
5
10
15
20
25
30
35
HOSTELS FAVOURED BY YOUNGER INDEPENDENT TRAVELLERS (IN %)
Under 20 20 - 22 23 - 25 26 - 29 30 - 340
5
10
15
20
25
30
35
40
45
HostelsHotels
DAILY COMMUNICATION USED ON THE ROAD (IN DAILY %)
Emai
l
Letter
s/po
stca
rds
Calls
mad
e on
a la
ndlin
e
Mob
ile te
leph
one
SMS/
text
mes
sage
Social
med
ia
Skyp
e
Inst
ant m
essa
ging
0
5
10
15
20
25
30
35
40
20122007
HOT AND COOL CITIES (IN %)
LondonParis
CairnsBogota
AmsterdamLima
New YorkBangkok
Mexico CityJohannesburg
BarcelonaBerlin
Santiago de ChileBudapestAuckland
CairoLos Angeles
SingaporeRome
Hong KongMelbourne
DublinCape Town
MontrealSan FranciscoBuenos Aires
SydneyTokyo
Rio de Janeiro
0 5 10 15 20 25 30 35 40 45 50
TOTAL SPENDING (IN €)
2002 2007 20120
500
1000
1500
2000
2500
3000
3500
BENEFITS OF TRAVEL (IN %)
Better u
ndersta
nding o
f own cu
lture
More
self-
confidence
More
tole
rance
of c
ultura
l diff
erence
s
More
self-
knowledge a
nd self-
awareness
More
appre
ciatio
n of o
ther c
ulture
s
Inte
rest
in le
arnin
g about o
ther c
ulture
s
A thirs
t for m
ore tr
avel0
10
20
30
40
50
60
70
80
90
100
2007 2012
MY IDEAL FUTURE LIFE (IN %)
Studying, then a steady job, having family and retiring
Combining study work and travel, then back to a steady job, hav-
ing a family and retir-ing
Changing continuously between study work
and travel
I am not sure what I want
0
10
20
30
40
50
60
2004 2012
A DECADE OF TRENDS
• Staying young longer• Travelling more often, further away• Spending more of their parent’s money• Living life online• Growing information hunger• Being far away, but keeping in touch
with home• The decline of the backpacker, the rise
of the flashpacker
How niche is youth travel?
• Represent over 20% of international arrivals• Generated $215bn in international tourism
receipts in 2013• UNWTO estimates an increase from 200 million
international youth trips to 300 million by 2020• Young people are the future of travel
• This is NOT niche!
Thank you.
World Youth, Student and Educational Travel Confederation.
Amsterdam. The Netherlands