54% of Thais to Increase Travel Budget in 2015; TripAdvisor Reveals Results of Study

TripAdvisor has revealed the results of its TripBarometer study.

Conducted on behalf of TripAdvisor by independent research firm Ipsos, the TripBarometer study is the analysis of more than 44,000 global travellers and members of the hotel sector who chose to take part, with 568 respondents from Thailand.

The TripBarometer: Global Travel Economy report reveals worldwide travel trends at country, regional and global levels, highlighting year-on-year changes in consumer spending plans, trip planning and hotelier confidence.

“The TripBarometer report paints a positive picture for travel this year, with travelers twice as likely to be increasing their vacation budgets than cutting spend,” said Barbara Messing, cmo, TripAdvisor. “Across the board, people want to take more international trips and Australia, Italy and the US continue to be the destinations topping travelers’ wish lists.”

Spending More

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. 41% of travelers globally plan to up their travel budgets in 2015, while 23% say they will decrease their spend.

According to the study, 54% of Thais will increase their travel budget in 2015. Of those planning to increase their travel spend, 42% indicate that they plan to do so because they feel vacations are something they or their family deserve, and 41% say it is because they are going somewhere on their ‘wish list’ this year. Only 18% of Thais say they are decreasing their travel spend this year, with nearly half (43%) citing this is because they plan to visit less expensive countries this year.

Thai travellers reported spending an average of Baht 73,400 on their holidays in 2013. Looking at 2014 spend, this number decreased by 11% to Baht 65,100. However, the current study reports a more positive trend, with Thais planning to spend an average of  Baht 87,900 on travel in 2015, up 35% year over year. This represents the biggest year over year percentage increase of all countries surveyed, though the amount itself is less than the average global travel budget.

International Trips

Globally, the average number of international leisure trips is set to increase by 15% in 2015. Travellers in Turkey, India, and New Zealand are showing the highest increase in the average number of international trips they are planning this year, while Russians, Thais and Austrians are decreasing the average number of international trips they will take in 2015. However, domestic travel still outpaces international travel, as nearly 60% of all trips planned in 2015 will be taken in travellers’ home country.

Domestic Tourism

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 Thai travellers, the average travel budget for 2015 is 87,900. Considering that 68% of their planned trips will be taken domestically in 2015, the biggest beneficiary of the Thai travel spending surge will be local businesses in Thailand.

The study also shows that Thais are most willing to splurge on accommodation while on vacation (58%) and they are the most keen to spend more on nightlife (22%) while on holiday, as compared to other nationalities.

Obstacles

Japan, France, and the United States are the top three dream destinations for Thai travellers in the next 24 months, if money were object. Nearly three in five Thai travellers (59%) say they are saving money to go on their dream holiday, and 43% of travellers are waiting until they have more time to explore the destination properly. Currency exchange rates are a barrier for 16% of Thai travellers hoping to visit their dream destination.

Hotel Sector

The results have shown a growing confidence in the hotel sector. In 2013, two in three businesses globally (67%) felt optimistic about their profitability for the year ahead. This year, that proportion rises to nearly three in four (73%), and is driven largely by more hoteliers feeling ‘very optimistic’ about their profitability for 2015. In Thailand, hotel sector confidence remains steady with the same proportion of hoteliers (70%) feeling optimistic about their profitability in 2015 as they did the previous year.

Half of all businesses both globally (50%) and in Thailand (49%) intend to increase their room rates in 2015 – often a strong sign of health in the sector. South Africa (72%), Austria (68%) and Brazil (68%) are the most likely to raise rates, with over two thirds of businesses planning increases. Accommodations in China will see the biggest reductions in 2015, with 18% of hoteliers planning to decrease room rates, but not by more than 10%.

Investment Plans

The report shows that investment is set to increase across many aspects of the hotel sector in 2015, however the planned increase in investment for online reputation management is most notable worldwide. In line with global trend, nearly seven in ten (67%) Thai hoteliers will spend more on online reputation management in 2015 and almost a third (32%) plan to spend ‘much more’. When asked which elements they feel are most important to the future of their business, online reputation is cited as important by 89% of Thai hoteliers.

Hotelier Confidence Index

A new feature of this year’s TripBarometer is the Hotelier Confidence Index, which measures confidence levels across the global hotel sector in 27 major tourism markets. The index looks at hoteliers’ profitability expectations, year on year shifts in room rates and investment plans for 2015. Each country is given a score on a five-point scale (five being the highest) and ranked, to show how they compare to other key tourism markets.

Globally, investment in staff has increased significantly since 2014 – planned investment in staff training in Thailand is up by 5% and increased investment in hiring is up by 7%.

Looking at the overall Hotelier Confidence Index rankings, Thailand is ranked 10th place out of 27.

“This year’s TripBarometer reveals a rising confidence in the global hotel sector, with one in two hoteliers raising room rates and a significant growth in optimism worldwide,” said Marc Charron, president, TripAdvisor for Business. “Increasing repeat business, driving more direct bookings, and encouraging online traveller reviews will be key themes for the hotel sector this year.”