youth travel accommodation usage

EXECUTIVE SUMMARY
YOUTH TRAVEL
ACCOMMODATION USAGE
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YOUTH TRAVEL ACCOMMODATION USAGE
BASED ON FINDINGS FROM NEW HORIZONS lll
WYSE Travel Confederation and STAY WYSE Association are committed to understanding the
ever changing characteristics, motivation and needs of young travellers.
The Confederation and STAY WYSE gather, analyse and share important research data and
market intelligence with their members, academics, corporate and government decisionmakers, and the general travelling public.
This extract from the New Horizons survey contains data on Youth Travel Accommodation
demand in 2012/13.
The main sectors covered in this report are Independent and Hostelling International Hostels,
Hotels, Student Residences and Apartments.
Our investment in research and market intelligence informs the policies, services and products
which make international travel and educational experience exciting, safe, accessible and
affordable for young people.
Please visit www.staywyse.org for more information about the STAY WYSE research
programme and how to become a member.
Author: Tourism Research and Marketing
Survey Manager: Laura Daly
Title: New Horizons III - Youth Travel Accommodation Usage Report
Publisher: STAY WYSE
Published: September 2013
Design: WYSE Travel Confederation
Printing: Worldwide Printing Solutions Alexandria, New South Wales, Australia
YOUTH TRAVEL ACCOMMODATION REPORT
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YOUTH TRAVEL ACCOMMODATION REPORT
INTRODUCTION
This extract from the WYSE Travel Confederation New Horizons III survey contains data on Youth
Travel Accommodation demand in 2012/13. The main sectors covered in this report are Apartments,
Independent Hostels, Hostelling International (HI) Hostels, Hotels and Student Residences.
This research is based on data gathered from consumers, and therefore compliments and adds to
the research already conducted by STAY WYSE (2012) on the supply side of the industry.
RECENT ACCOMMODATION RESEARCH
Much recent research in accommodation in general, and Youth Travel Accommodation in particular,
points to the rapidly changing face of consumer demand.
“The IHG Kinship economy” report (2013) from the InterContinental Hotels Group indicates that
the role of accommodation is changing as travellers become more tech savvy and are increasingly
seeking experiences that will help them to develop relationships with others. New forms of ‘relational
travel’ are helping to transform traditional accommodation value chains into more extensive ‘value
webs’ (that include many non-tourism elements, such as the local community) faster than ever
before (UNWTO, 2011).
Increasingly, business and leisure travellers will start carrying new high-tech ‘accessories’. These
portable sources of information have radically changed the way in which people search for and
book accommodation. The trends observed in the New Horizons research indicate that mobile
bookings will increase rapidly in future.
One in four travellers have used social networking sites to plan their travel while 45% have made
travel plans based on reviews and experiences of others. This is true of both leisure and business
travel. One in three business travellers posts reviews online of properties they stay at (Google &
Ipsos Media, 2011). Other “Google & Ipsos Media” (2012) surveys indicate that almost a quarter
of affluent leisure travellers currently book accommodation via a mobile device.
In contrast, “Traditional travel publishing has been in decline in the UK over the last seven years:
overall, guide sales have fallen by 30% during this period.” It is also having an impact on the way
in which young people use and experience accommodation:
“Hotels could be used as local community hubs, for example with local bands and artists coming
and performing, meaning that the hotel has much more connection with the community. This is why
people like boutiques at the moment – people want to experience the local.”
In many ways the traditional hotel sector is now starting to mimic the relationship building
function that has long been at the heart of the Youth Travel Accommodation product and which is
particularly important for hostels. The continued blurring of boundaries between different forms
of accommodation means that Youth Travel Accommodation suppliers have to face new areas of
competition, particularly from budget hotels and apartments. However, the changing landscape of
youth travel also presents new opportunities. As the New Horizons research shows, new forms
of accommodation such as couchsurfing are not replacing the traditional hostel – they may even
be driving new areas of hostel business. For example, 37% of couchsurfers also stayed at HI
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Hostels while travelling, and 67% also stayed at an independent hostel. Because these people
also travelled more and spent more on accommodation than the average young traveller, they
also spent more money on accommodation in total. As hostels are also now often functioning as
gathering places for couchsurfers in some cities, this also represents an income opportunity.
A recent HostelBookers Survey on “Why Women Travel Solo” (2013) indicated that women still love
to travel alone. In common with the findings of the New Horizons survey, the women surveyed by
HostelBookers balance their desire for freedom and adventure with a healthy sense of caution.
“Freedom” (28%), a “sense of adventure” (17%) and “learning about yourself” (15%) were cited
by respondents as the top reasons for travelling solo. 64% stayed in hostels, underlining the
benefits of hostels as cheap places to stay where you can meet new people and become part of
a community of travellers.
Hostel statistics from different parts of the world indicate stable or growing demand in spite of
the economic crisis. European HI Hostel members reported over 26 million bednights in 2012,
an increase of 6% compared with 2010. In New Zealand, independent accommodation overnights
increased 2.9% in May 2013 compared with May 2012 and occupancy levels increased by 2.3%
points.
Major commercial hostel groups are now challenging budget hotels, according to a report from HVS
(Douglass, 2013). The report indicates that the top 10 groups in Europe including A&O, Meininger
and Generator now have a total of more than 35,000 beds spread across 100 properties.
YOUTH TRAVEL ACCOMMODATION REPORT
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METHODOLOGY
The data for the New Horizons III research was collected via email solicited web-based questionnaires.
The email addresses of people using or enquiring about the services of youth travel companies
were used to generate responses. An incentive of a draw to win an iPad was used to increase
response rates. The survey was distributed by WYSE Travel Confederation members through email,
social media, newsletters and website postings, with over 300 active links collecting data.
The link to the survey was made available in English and Spanish versions between August 2012
and January 2013. During this period some 34,000 responses were collected, a significant
increase on previous surveys in 2002 (2,300 responses) and 2007 (8,500 responses). In order
to ensure a representative picture of global youth tourism was obtained, where global data are
analysed the data have been weighted by visitor origin to reflect the distribution of global outbound
tourism according to UNWTO data. Weightings were also applied to the data collected in previous
years in order to compare survey waves.
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YOUTH TRAVEL ACCOMMODATION REPORT
THE NEW HORIZONS SURVEY
The third New Horizons survey of global youth and student travel was conducted by the World Youth
Student and Educational Travel Confederation (WYSE Travel Confederation). The aim of the survey
is to provide an overview of the global youth and student travel market, which was estimated to
include over 200 million international trips in 2012.
The New Horizons research is the only consistent global survey of this important market. Since
2002 the survey has expanded in both scale and scope, and now represent responses from over
34,000 travellers in late 2012 and early 2013, draw from 137 different countries.
For the purpose of providing more customized reports relating to specific youth travel industry
sectors, this report provides an analysis of the data collected from Youth Travel Accommodation
users during the New Horizons III survey.
The data mainly reflect questions asked about the last main trip taken by respondents during the
12 months prior to the survey. The vast majority of these trips will therefore have been made in
2012.
The accommodation sectors covered in the New Horizons survey are :
• Apartment
• Bed & Breakfast/Room in a private house
• Campervan/Motor home
• Couchsurfing
• Guesthouse/Pension
• HI Hostels
• Hotel
• Independent hostel
• Student residence
• Tent/Caravan
• Self catering accommodation
In addition respondents were asked if they had stayed with family, friends or used other forms of
accommodation.
About 30% of those giving information on their accommodation use during their last main trip
indicated that they had only used one type of accommodation. Much of the analysis is therefore
based on this group, as their behaviour, motivations and spending can be directly tied to the type
of accommodation used.
In order to provide sufficient number of respondents for analysis, only the main categories of
hostels, hotels, apartments and student residences will be considered in the current analysis.
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EXECUTIVE SUMMARY
ACCOMMODATION USE
The main forms of accommodation used by
young travellers in 2012/13 were hostels
and hotels, which were both used by over
30% of respondents. There was a high degree
of mixing between accommodation types,
particularly between independent hostels and
HI Hostel establishments.
Longer trips tended to involve a greater
variety of accommodation types, and student
residences tended to be used by those taking
the longest trips, and hotels and hostels for
the shortest trips.
ACCOMMODATION BOOKINGS
Almost two-thirds of bookings were
made via broadband Internet, and all
Internet bookings now account for about
80% of the total, compared with 63% in
2007. Face-to-face travel agency bookings fell
from 21% in 2007 to 15% in 2012.
Third party websites accounted for a
third of all bookings, direct bookings with
accommodation providers for less than a
quarter. Independent hostels tend to be most
reliant on third party websites for bookings,
whereas more HI Hostel bookings are made
directly with HI Hostels.
ACCOMMODATION USER PROFILE
Younger travellers tend to use hotels more
heavily, make more bookings at travel agents
and make more use of specialist youth travel
agencies. Entering their twenties they make
more use of hostels, make more online
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Meet your industry in hall 4.1: Youth Travel, Economy Accommodation, Adventure Travel, Responsible Tourism
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EXECUTIVE SUMMARY
bookings and in particular use third party
websites more often.
Students make most use of student
residences and apartments, and book more
often with specialist youth travel agencies.
There were few significant differences in
accommodation use by gender, except that
men tend to spend more on average than
women owing to longer trips taken.
Respondents from Oceania used both hotels
and independent hostels more than travellers
from other regions. Eastern Europeans were
most likely to use apartments and tended
to book accommodation more via travel
agencies. Asians made the most use of third
party websites, Africans used general travel
agents most frequently.
Travel style was clearly linked to
accommodation use, with backpackers being
found more often at independent hostels
and tourists and flashpackers making heavy
use of hotels. Those who saw themselves
as ‘locals’ used apartments most often and
frequently used third party websites, along
with backpackers.
The trend towards a more diverse clientele
for Youth Travel Accommodation signalled in
the STAY WYSE report in 2012 is confirmed
by the increase in tourists, flashpackers and
other traveller types using hostels.
MOTIVATIONS, ACTIVITIES AND
BENEFITS
Travel motivations varied according to the
type of accommodation, with apartment
guests being orientated towards exploring
other cultures and experiencing everyday
life, similar to independent hostel guests.
For those using student residences, however,
interacting with local people and increasing
their knowledge were extremely important.
In spite of the heavily cultural motivations
for travel, many of the activities undertaken
remain mundane: shopping and sitting in
cafes and restaurants were among the main
YOUTH TRAVEL ACCOMMODATION REPORT
activities for all accommodation users.
Backpackers did more walking and trekking,
HI Hostel guests were most likely to visit
historical sites and hotel guests were most
likely to spend time shopping.
The top benefits gained from travel were
similar across all accommodation types, with
a thirst for more travel, a greater appreciation
of other cultures and more interest in learning
about other cultures being ranked highest. In
terms of overall benefit perception, student
residence guests scored highest, and hotel
guests the lowest.
ACCOMMODATION SPENDING
The average accommodation spending per trip
was over 500 euros or around 22% of the total
travel budget. This is a growth of over 40%
compared with 2007, when accommodation
spend accounted for just over 18% of the
travel budget. Accommodation spending was
highest for those travelling in Oceania.
In general accommodation spending rises in
line with age, although for HI Hostels the under
20s spent most on average and for hotels
there was a marked jump in spending for the
over 30s.
Flashpackers lived up to their name by
spending considerably more than the average,
students tended to spend less.
THIRD PARTY WEBSITES
Third party websites attracted more
expensive bookings than other channels
and also accounted for the largest booking
share. Backpackers and flashpackers
were the heaviest users of third party websites,
which also tended to be used by more
highly educated and higher income users.
Third party websites are most likely to be used
for bookings in Europe, Asia and Oceania.
Hostel guests use third party websites more
than other travellers, and also spend more
money on their bookings. Use of third party
websites peaks among the 26-29 age group,
and declines thereafter.
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CONCLUSIONS
The results of the accommodation analysis derived from the New Horizons III research show that
many of the trends identified in the STAY WYSE supplier research are also evident in this consumer
study. The Youth Travel Accommodation market is diversifying, not just because more hotels and
apartments are being offered in the marketplace, but because different types of consumers are
increasingly attracted to hostels and student residences.
The market growth seen in terms of the growing number of Youth Travel Accommodation suppliers is
matched by the growth in accommodation spending by consumers. Part of this increase is probably
due to the growth in average trip length in 2012 compared to 2007. Longer trips also allow young
travellers to make use of a larger number of different types of accommodation, strengthening the
diversity of the market.
Just as the previous New Horizons study in 2007 marked a period of rapid change in the youth
travel market, with the rapid growth of the Internet and the rise of budget airlines, so the New
Horizons III study also holds some potential keys to the future. The research already shows a
rapid increase in social media as a means of gathering travel information. At present this has not
translated into a large number of bookings directly via social media, but this is bound to change.
Similarly, the first signs of mobile Internet bookings having an influence on the market are evident
from the study findings, and again these are bound to grow rapidly in the next few years.
The growth of Internet and mobile bookings has strengthened the position of third party booking sites,
particularly as a channel for hostel bookings. The increasing market power of these companies is
evident in current debates about contractual arrangements between third party booking companies
and accommodation providers. Third party bookings are likely to expand in the near future, as the
current study indicates that there is potential for growth in many areas of the world.
All of these trends underline the dynamic nature of the Youth Travel Accommodation industry, which
has enjoyed considerable growth in recent years and also looks set to enjoy further growth in the
near future.
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BIBLIOGRAPHY
The Sharing Market: Commercial Hostels in Europe. HVS, London
Douglass, H. (2013)
Travelers’ Road to Decision
Google & Ipsos OTX
Media CT (2011)
The role of mobile for the 2012 traveler
Google & Ipsos OTX
Media CT (2012)
Why Women Travel Solo
HostelBookers (2013)
Tourism and creativity in the city. Current Issues in Tourism
Richards, G. (2013)
Youth Travel Accommodation Industry Survey
Amsterdam: WYSE Travel Confederation
STAY WYSE (2012)
The power of youth travel
Madrid: UNWTO
UNWTO (2011)
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ACKNOWLEDGEMENTS
WYSE Travel Confederation would like to thank the following individuals and organisations for their
valuable contribution to this report:
A special thank you to Greg Richards, Tourism Research and Marketing
NEW HORIZONS III SURVEY DISTRIBUTION
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Hostelling International
Generator Hostels
BUNAC
STA Travel
StudentUniverse.com
CIEE
TAMWOOD
KILROY
Topdeck
Travel ALOTT
Intej
Praktikawelten
Smaller Earth
WISE Foundation
WYSE TRAVEL CONFEDERATION
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Mauro Battellini
David Chapman
Laura Daly
Kun Ma
Natalia Walkuska
Carla Vaz
WYSE Travel Confederation would also like to thank all the survey participants.
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