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Visa Global Travel Intentions Study 2015 Caroline Dempsey, Head of Marketing Visa, New Zealand, South Pacific & Australia

Visa Global Travel Intentions Study 2015 2

Disclaimer

Case studies, statistics, research and recommendations are provided "AS IS" and intended for informational purposes only and should not be relied upon for operational, marketing, legal, technical, tax, financial or other advice. You should consult with your legal counsel to determine what laws and regulations may apply to your circumstances. The actual costs, savings and benefits of any recommendations or programs may vary based upon your specific business needs and program requirements. By their nature, recommendations are not guarantees of future performance or results and are subject to risks, uncertainties and assumptions that are difficult to predict or quantify. Visa is not responsible for your use of the information contained herein (including errors, omissions, inaccuracy or non-timeliness of any kind) or any assumptions or conclusions you might draw from its use. Visa makes no warranty, express or implied, and explicitly disclaims the warranties of merchantability and fitness for a particular purpose, any warranty of non-infringement of any third party's intellectual property rights. To the extent permitted by applicable law, Visa shall not be liable to a client or any third party for any damages under any theory of law, including, without limitation, any special, consequential, incidental or punitive damages, nor any damages for loss of business profits, business interruption, loss of business information, or other monetary loss, even if advised of the possibility of such damages.

PATA Conference 2015


The Visa Global Travel Intentions Study 2015 was commissioned by Visa to Millward Brown. The study was conducted with 13,603 travellers*, aged 18 years and above across 25 countries in January and February 2015.

Methodology

AFRICA & MIDDLE EAST: Egypt, Kuwait, Morocco, Saudi Arabia, South Africa, United Arab Emirates AMERICAS: Brazil, Canada, Mexico, United States of America

ASIA PACIFIC: Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Singapore, Taiwan, Thailand

EUROPE: France, Germany, Russia, United Kingdom

Where

*Have either travelled in the past 24 months or intend to travel in the next 24 months for business/leisure (non-domestic travel only).

Who



Why do we travel?

People

26%

Activities

18%

Accessibility / Familiarity

17%

Bonding

15%

Experience cultures

13%

Rest & Relax

11%

MAIN TRAVEL MOTIVATIONS IN PAST 2 YEARS

REASONS FOR DESTINATION CHOICE IN THE PAST 2 YEARS


Visa Global Travel Intentions Study 2015 5 Visa Internal Use Only

Global APAC Europe Americas Africa & Middle East

2015 76%▼ 84%▲ 81%▼ 79%▼ 54%▼

Base: (13603) (6531) (2012) (2007) (3053)

2013 79% 77% 87% 81% 76%

Base: (12631) (5555) (2042) (2026) (3008)

Strong growth in Asia Pacific Leisure travel has touched a wide mass with 3 in 4 respondents travelling in the past two years. More Asian travellers have joined the fold in 2015.

TRAVELLED IN THE PAST 2 YEARS FOR LEISURE

Of sample travelled in the past 2 years for Leisure

76% Base: (13603)

▲▼ higher/lower compared to GTI 2013 PATA Conference 2015


NZ remains a top 5 destination for Australian travelers and top 10 for emerging markets India and China

Top 10 Popular Destinations

China

15% 14% 12% 11% 10% 8% 7% 6% 5% 5%

India 15% 14% 12% 10% 8% 7% 5% 5% 4% 4%

16% 12% 11% 9% 7% 6% 6% 6% 6% 5%

Australia



Top 5 countries to spend in

New Zealand South Africa

United Arab Emirates

United Kingdom

Maldives

$3,765 $3,765 $3,765 $3,684 $3,625

(127) (41) (277) (178) (38)

While locations such as New Zealand and South Africa attract the highest tourist receipts, travellers to South East Asia spend the least.

Trip spending

Bottom 5 countries to spend in

Laos PDR Cambodia Burma (Myanmar)

Malaysia China

$652 $956 $982 $1,129 $1,141

(41) (44) (37) (271) (375)

MEDIAN SPEND PER TRIP



Hotels and resorts are still the most popular accommodation type, with more than half of the travellers staying at such lodging on their most recent holiday.

Accommodation type

Base: (10309)

70%

ACCOMMODATION TYPE ON MOST RECENT TRIP

16%

31%

44%

10% 10% 14% 4% 2%

Hostel, Guesthouse, Chalet

Bed & Breakfast

1-3 star hotel or resort

4 stars and above

hotel or resort

Boutique hotel

Serviced apartment or house or villa

Friend’s or relative’s

house

Home-stay Others Stayed at starred

hotels/ resorts



Activities and Spending



46% 58% 17% 16% 9%

Visited famous restaurants

Visited famous local locale

Watched concerts / musicals

Trekked / backpacking Attended sporting events

66% 26% 20% 15% 7%

General shopping Visited religious monuments

Participated in local festivals

Engaged in water sports

Engaged in sporting events

24% 30% 6% 8%

Luxury brands shopping

Visited the local night scene

Volunteered for charity Engaged in extreme sports

Base: (10309)

Globally, shopping and visiting famous locales are the most common travel activities.

Travel activities

TYPES OF ACTIVITIES DONE ON MOST RECENT TRIP



Experience trumps cost

25% ▲ $4780 -6%

% change from 2013-2015

2015 (USD, Median)*

Future spend % change

*The value used is median. The 2015 spend data has taken the assumption of constant exchange rate across 2013 and 2015, using 2013 exchange rate.



Spending power of Chinese travellers

(10309) (725)

Average no. of activities per trip

16% 27%

Trekked / backpacking

30% 57%

Visited the local night scene such as

clubs, bars, etc.

20% 28%

Participated in local

festivals

Travel activities

3.55

4.36

Global China

18%

Global China

Budgeting approach

Global China

I will keep strictly to the budget I planned

46% 56%

29%

Search for the best experience and then sum up

the amount before making adjustments



Base: (9660) / (12741) (5313) / (6293) (1517) / (1942) (1424) / (1904) (1406) / (2602)

The future outlook of travel spends is optimistic as globally travellers are intending to spend more in their future holiday.

Trip spending

MEDIAN SPEND PER TRIP

Amount spent last trip

Amount spend next trip

$2,281 $2,051

$1,606

$2,715

$3,202 $3,501 $3,501

$2,501

$4,501

$3,501




Young millennials are also intending to spend much more in their next holiday, with the future intended spend almost doubling from before.

Amount intend to spend

18-24 25-35 Millennials 36-44 Superboomers

Amount spent last trip

(median) $1,378 $2,059 $1,882 $2,604 $2,595

Base: (1350) (3161) (4511) (2634) (2515)

Amount intend to spend (median)

$2,501 $3,501 $2,501 $3,501 $3,501

Base: (1934) (3952) (5886) (3329) (3526)

% change 81% 70% 33% 34% 35%

AMOUNT SPENT VS INTEND TO SPEND

Change in future intent to spend amongst Millennials

+33%



Cards are the predominant mode of payment at the booking phase.

Booking payment

Base: (10059)

PAYMENT MODES USED AT BOOKING PHASE

Pay with Payment Cards at the Booking stage

66%

Cash

Any Cards

Money/Bank transfer

Others

Did not make payment at this phase

31%

66%

17%

0%

2%



More travellers carry payment cards to the destination as compared to 2013.

Payment modes carried to destination

2015

Base: (9660)

2013

Base: (9323)

82% 93%

13%

Cash Payment Cards Traveller's cheques

84% 77%

10%

Cash Payment Cards Traveller's cheques


Speed and ease of payment are some of the important features that travellers look out for to pay more conveniently.

Decoding payment convenience

IMPORTANCE OF FEATURES IN MAKING PAYMENTS CONVENIENT

Not important at all

Extremely important

5 5 5 4

5 5 5 5 5

5 5 5 5

4

5 6 6 6

5

6 5 5 5

5 5

0

1

2

3

4

5

6

7

Ability to track expenses easily

Ability to track expenses real-time

Ability to make all payments through a single payment

mode

Ability to make mobile payments

Ability to make purchases quickly


PATA Conference 2015 17. Visa Global Travel Intentions Study 2015


18-24 25-35 Millennials 36-44 Superboomers

(1475) (3333) (4808) (2811) (2690)

Today’s travellers are hungry for more information from both traditional and online sources throughout the travel journey and this applies to travellers of all ages.

Information sources used at each stage

Planning

Booking (Package)

Booking (Independent)

During

80%

48%

59%

73%

79%

52%

71%

66%

85%

61%

60%

77%

77%

39%

68%

59%

82%

50%

58%

78%

80%

50%

73%

71%

82%

49%

58%

76%

79%

51%

72%

69%

79%

52%

55%

75%

78%

48%

75%

66%

Traditional

Online



Sharing of photos, as well as updating one’s social media profile are the most common forms of sharing post-trip.

Online sharing post trip

Base: (10309)

ONLINE SHARING POST TRIP

Via instant messages

Via email

On a general forum

In an online chat-room

Via a blog

On a travel review site

35%

11%

31%

-%

Posted photos on a private web-space

Posted videos on a public web-space

Via social media status updates

Others

26%

22%

11%

12%

13%

16% did not share experience/ views online after returning home

24%

76%

24%

Base: (10309)


PATA Conference, Auckland, October 2015

Applying the research

| Visa 21

Proximity payments through

Visa payWave

Remote payment through

Visa Checkout

Peer-to-peer payments through

Visa Direct

Enable digital payments

through Visa Token Services

Explore the long-term

future through Visa Research

Open the network through Visa Developer

and co-innovation

Visa Payment Innovation

Thank you and happy travels


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