Travel Market

Part
01
of four
Part
01

Multi-Day Travel Market

Globally, $5.29 trillion was spent on travel in 2017. In the United States, the total amount spent on travel in 2018 was $1.1 trillion. In China, we calculated the total amount spent on travel in 2017 to be $978 billion.

Our research team was unable to find any publicly available statistics revealing the amount spent annually on travel specifically for multi-day trips globally, in the United States, and in China. After an extensive search through the public domain, we could only provide data related to the amount spent annually on travel globally, in the United States, and in China. However, we have provided below helpful findings related to the research request and our research approach detailing the steps we took and why the information is not publicly available.

GLOBAL travel SPEND

  • In 2017, the total travel spend was $5.29 trillion globally showing a growth of 41.9% over the past 10 years.
  • According to a 2018 report published by TripAdvisor, "travel spend has grown steadily across the world."
  • Domestic travel spending is $3.89 trillion per year which accounts for about three-quarters of global tourism spend. Notwithstanding, international tourism spending accounts for about one-quarter of global tourism spend which was valued at $1.4 trillion in 2017.

United states travel spend

  • In 2018, travel spending in the United States was valued at $1.1 trillion which includes $327.3 billion from business travel spending and $761.7 billion from leisure travel spending.
  • Based on a 2019 survey published by Solo Traveler World, about 66% of people in the United States said that they travel for one week. Additionally, 48% indicated that they travel for two weeks, while 32% of respondents in the United States said that they travel for more than two weeks within a typical year.
  • 56% of American travelers aged between 25 and 34 years typically spend between $500 and $1,500 on a one week trip, and this amount excludes airfare.
  • 30% of American travelers aged between 55 to 64 years typically spend between $1500 and $2500 on a one-week trip, and this amount excludes airfare.
  • On summer vacations, Americans spend about $10.1 billion.

CHINA travel spend

  • China is at the top of the global tourism market. In 2017, the outbound or international tourist spent was $258 billion in China which accounts for "one-fifth of the world's total spending on tourism."
  • In 2017, domestic tourism spend in China was $720 billion which represents a 15.9% increase when compared to 2016.
  • Therefore, total travel spend in China would be $978 billion ($258 billion + $720 billion).
  • The majority of Chinese tourists (about 78%) embark on international travel for the purpose of leisure.

RESEARCH STRATEGY

We started our research by searching through various market research and survey reports to find the amount spent annually on travel for multi-day trips globally, in the United States, and in China. Some of the reports we looked through include Trekksoft, Nielsen, Solo Traveler World, and others. These reports provided some data about the spending on international travel spending and domestic travel spending. However, we could not locate any data about the amount spent annually on travel specifically for multi-day trips in the specified geographic locations.

Our second strategy was to look through databases such as Statista and gather the required information. However, this source only provided a general overview of the travel market and globally and in the United States. We were still unable to find data specific to multi-day trips globally, in the United States, and in China.

We subsequently attempted to triangulate the data by searching for a breakdown of a single day and multi-day travel frequency within the above-mentioned sources. However, this approach was also futile and there was no information that helped us break down travel into single-day versus multi-day trips. A similar search for the same information within pay walled reports was also unfruitful and did not provide the required information.

Further searches were performed through credible travel industry and news sources such as the Economist, ITB World Travel, Carlson Wagonlit, US Travel, World Bank, China Daily, and others. These sources provided more details about travel spending in various regions across the world including the United States and China. The ITB World Travel Trends report provided outbound and inbound travel trends in various parts of the world. These sources also provided information on travel booking trends, for example, online booking, mobile booking, and others. However, we were still unable to find any information specific to multi-day trips or even the breakdowns for single day trips versus multi-day trips.

Our extensive search for information specific to muti-day travel in the required geographical locations did not provide the required information. Additionally, our attempts to triangulate the desired data were also unsuccessful, therefore, we concluded that the required information is not publicly available. The main reason this data is unavailable is that no previous research has focused on or provided breakdowns of the annual spent on travel based on the length of the trips i.e. single-day and multi-day.
Part
02
of four
Part
02

Travel Tours and Activities Market Size

The global market size of tours and activities market segment was calculated to be $157.2 billion in 2018. This market segment is expected to grow to $183 billion by 2020 at a compound annual growth rate of 7.9% from 2016 to 2020. The tours and activities market is a sub-segment of the travel industry that accounts for 10% of global travel revenue out sizing rail, car rental and cruise. This makes the tours and activities segment the third-largest travel segment after flights (40%) and accommodation (33%).

Market Size

  • The global market size of tours and activities segment was $135 billion in 2016 and this is expected to reach $183 billion by 2020. This represents a CAGR of 7.9% over 2016-2020 period. As required, this market segment comprises traveler spend on tours, activities, attractions and events that tourists plan as part of their trips but excludes dining.
  • Using the above CAGR of 7.9% and 2016 value of $135 billion we calculated the global market size of the 2018 tours and activities segment using the formula below:
2016 value * ((1 + CAGR) *(1 + CAGR)) = 2018 value

$135 billion * ((1 + 7.9%) * (1 + 7.9%)) = 157. 2 billion

Other Relevant Information

  • The segment is heavily dominated by several small operators who mostly manage their businesses manually and uses rudimentary databases to keep track of their reservations. Therefore, this market segment is less digitized compared to segments such as flights and accommodation.
  • The above fact is corroborated by a study from Skift which averred that around "55% of tour and activity suppliers at the global level do not have a third-party reservation system, and, among them, 67% use ways such as email or calendar to manage bookings."
  • In addendum, more than 80% of gross bookings were made offline with more than half of tours and activities suppliers generating less than $250,000 annual revenue.
  • Online tour & attraction gross bookings are likely to more than double from 2015 to 2020, growing from 11% in 2016 to 21% in 2020.
  • 92% of consumers read online reviews before making a travel decision, as a result, 57% of businesses in this segment consider traveler review websites to be their most effective marketing channel. 40% of tour operators found search engine marketing (SEM) to be a highly effective marketing channel.
Part
03
of four
Part
03

Travel Category on Pinterest

Although there are no direct statistics on the percentage of travel-related pins on Pinterest, however, based on calculation, ‘pins’ make up 2.3% of the total number of pins on Pinterest. According to statistics, there are about 4 billion travel-related pins and about 175 billion total pins on Pinterest.

TRAVEL-RELATED ‘PINS’ ON PINTEREST

  • Travel related ‘pins’ make up 2.3% of the total number of pins on Pinterest.
  • The travel category is one of the most popular categories on Pinterest.
  • More than 40 million people in the US source travel ideas from Pinterest every month.
  • Overall, there are about 175 billion pins on Pinterest.
  • According to the Travel Trends Report 2018, there are about 4 billion travel-related ‘pins’ on Pinterest.
  • Compared to other travel agency sites, Pinterest is two times more effective in reaching online travelers.
  • The use of Pinterest for travel ideas has gained popularity over the years to outshine conventional methods such as through travel agencies. Pinterest's effectiveness in reaching more online users has orchestrated the trend.

YOUR RESEARCH TEAM APPLIED THE FOLLOWING STRATEGIES:

In finding the percentage of travel-related ‘pins’ on Pinterest, we began our research by locating credible resources that could directly provide us with the needed information. In our attempts to answer the question, we did an exhaustive search through the Pinterest website in efforts to locate any relevant statistics. While we found several pins on categories like fashion and fitness, there was no concrete data on the number of pins in the travel category.
As an alternative approach, we opted to conduct exhaustive research on statistics portals/databases like Statistica.com where we found the 2013 data on the distribution of pins per category 2013 on Pinterest. However, we could not include any information on the same since it is a piece of outdated information. In line with the strategy, we explored other consultancy sites like Deloitte, KPMG, Accenture, and McKinsey to find information. Our attempts to find up-to-date information on press release aggregators like PR News Wire and Business Wire also proved futile. While exploring the media option, we found the Travel Trends Report 2018 from Pinterest’s newsroom page from which we found highlights of key trends as well as an estimated number of travel-related pins on Pinterest. We found that there are close to 4 billion travel-related pins on Pinterest.
We also sought to find information from market reports and industry publications like Social Media Today. While exploring this strategy, we found a report published by Omnicore Agency that highlights various data points including the total number of pins on Pinterest. With interest in the latest available data, we established that there are about 175 billion pins on Pinterest.
Having found no direct statistics as to the percentage of travel-related ‘pins’ on Pinterest, we opted to triangulate the requested data by using the number of travel-related pins on Pinterest and the total number of pins on the same platform. The calculation is as follows.

CALCULATION (PERCENTAGE OF TRAVEL-RELATED PINS)

  • Using the formula; Percentage of travel-related pins= (Number of travel-related pins/Total number of pins) × 100
  • Number of travel-related pins= 4billion
  • Total number of pins=175 billion
  • Therefore; Percentage of travel-related pins= (4billion/175billion) × 100
  • =2.3%
  • Therefore the percentage of travel-related pins is 2.3%.

Part
04
of four
Part
04

Travel Content on Social Media

While there is no publicly available information to fully answer your question, we have used the available data to pull together key findings. Consumers are more likely to discover travel destinations through content on social media such as photos/videos (37%), recommendations (32%), and branded travel advertisements (24%). Below you will find an outline of our research methodology to better understand why the information you have requested is publicly unavailable, as well as a deep dive into our findings.

Research Strategy 1

  • Industry reports published by Report Garden, Sprout Social, and others have provided information related to social media but not specifically to travel content on social media.
  • Most of the reports merely focused on the “user side” such as how millennials make maximum use of social media and other data.

Research Strategy 2

  • An examination of social media-related articles, blog posts, and graphs/charts on websites such as Dream Grow, Skitty Media, Joint Views, Global Web Index, Social News Daily, Medium, and others also did not reveal the percentage of travel content on social media.
  • The majority of the articles and graphs/charts published online provide data related to the social media behavior of users.

Research Strategy 3

  • An examination of influencers-related data did not yield the required information.
  • Influencers database Influencer.Co could only be used to triangulate the percentage of travel influencers.
  • Articles about influencers published on websites such as Statista, Social Media Marketing Statistics, Smart Insights, and Brand Watch only provided information related to the number of social media users and most popular social media networks.

Helpful Findings

  • Consumers are more likely to discover travel destinations through content their peers share on social media (37% content of photos/videos; 32% through recommendations, and 24% through branded travel advertisements).
  • Instagram is mostly liked by the people aged 16-24 years, and around 363 million content on Instagram are travel-related.
  • 95% of adults aged 18-34 are most likely to follow a brand via social networking.
  • The majority of millennials share their travel experience on social media.
  • 90% of social media users follow social media as a way to communicate with a brand or business.
  • 40% of online travelers visit social networking sites to influence destination selection.
  • 48% of users choose Instagram to discover new travel destinations, whereas 52% were inspired by their friends’ Facebook posts to book new travels.
  • Travel content generates 18 click-backs, 40 % more than any other shares on social media
  • 25% of all social media posts are centered on food, travel, and drink.
  • Out of the 70,000 influencers on Influencer.Co, 9,097 influencers (13%) post travel-related content.
Sources
Sources

From Part 01
Quotes
  • "spending by Chinese tourists reached USD 261.1 billion in 2016, an increase of 4.5% year-on-year, and ranking first worldwide"
From Part 04
Quotes
  • "Social media refers to the means of interactions among people in which they create, share, and/or exchange information and ideas in virtual communities and networks. The Office of Communications and Marketing manages the main Facebook, Twitter, Instagram, Snapchat, YouTube and Vimeo accounts."
Quotes
  • "At the end of 2018, Facebook had 2.32 billion monthly active users. And most of the other social networking platforms and apps also continued to grow past 2018 levels"
  • " Online adults aged 18-34 are most likely follow a brand via social networking (95%)."
  • "71% of consumers who have had a good social media service experience with a brand are likely to recommend it to others"
  • "63% of customers actually expect companies to offer customer service via their social media channels, and 90% of social media users have already used social media as a way to communicate with a brand or business"
Quotes
  • "Travel and tourism marketing isn't the one-sided method it used to be–today's travelers are relying more than ever on word of mouth"
  • "40% of online travelers visit social networking sites to influence destination selection. --87% said reviews impacted hotel choice --84% said reviews impacted method of travel --78% said reviews impacted choice of dining"
Quotes
  • "As millions of vacationers now share vacation snaps and travel experiences online, social media has become a holiday browsing hotspot and commentary hive to inspire travelers globally."
  • "Consumers are actually more likely to discover travel destinations through content their peers share on social media – whether that’s photos/videos (37%) or recommendations (32%) – than branded travel ads (24%)."
  • "Instagram’s format naturally lends itself to travel content – #travel is included in 363m posts on the platform – but Facebook is still the go-to for the majority of vacationers to share content when they’re away (58% vs. Instagram at 43%)."
  • "For 16-24s, Instagram just takes the lead. Travel brands’ social presence or initiatives across the platforms should ensure they’re not missing out on ways to connect with all audiences."
Quotes
  • "48% of users choose Instagram to discover new travel destinations, whereas 52% were inspired by their friends’ Facebook posts to book new travels. However, video is the present and future of content marketing. In 2020, brands are expected to spend up to $28 billion in video marketing strategies."
  • "The Google report also states that travel vloggers attract 48% of subscriptions on YouTube, while travel brands get only 19%. People trust amateurs, they believe in their opinion and in the sense of authencity of their contents."
Quotes
  • "The team at social search and analytics company Prollie realized that some social posts and social shares were more highly coveted than others. In response to that realization the team examined more than 5,000 social media user accounts from Twitter, Facebook, LinkedIn, Foursquare, and Tumblr."
  • "The study also found that the social network used changed the type of content shared. For example, food, drink, and travel posts are big on Facebook while tech and social media based topics are discussed most often on Twitter."