Asia Pacific Travel Trends 2017

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ASIA PACIFIC TRAVEL TRENDS 2017 Travel Habits, Behaviours, and Influencers of Chinese, Japanese, and Australian Travellers METHODOLOGY Data Collection Method ONLINE SURVEY Quantitative Survey

Field Work 30 March – 7 April 2017

Qualifying Criteria Must have booked online travel in the past year

Sample Size China: n=1000 Japan: n=1001 Australia: n=1000 Total: n=3001 2 LAST TRIP LOOK BACK BY COUNTRY NUMBER OF Number of Trips Taken in the Past Year TRIPS PER YEAR VARIES SIGNIFICANTLY 5.3 4.4 BETWEEN 4.3 THE THREE 3.3 COUNTRIES

The Chinese know how to travel, taking the most amount of trips per year

TOTAL China Japan Australia

4 Trips in the Past Year TRAVELLERS FROM ALL THREE 5.3 COUNTRIES TAKE, ON 4.4 AVERAGE, MORE 3.3 3.1 3.2 THAN 4 TRIPS A YEAR 2.5 2.1 The Japanese and Chinese take roughly the 1.4 same amount of personal trips 0.8 The Chinese take the most business trips

Total Business Personal

Notable Country Difference China Japan Australia

Q9: Typically, how many personal/leisure and business trips do you take per year? Q10: What types of vacations have you taken in the past year? 5 Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) TIME SPENT ON Time Spent on Vacation VACATION for THE THREE 10.6 COUNTRIES

6.7 ALSO VARIES 6.3 WIDELY 3.4 Australians take the longest trips by far

The Japanese take the shortest vacations

TOTAL China Japan Australia

6 27% 14% AUSTRALIANS TRAVELLERS ARE THE MOST LIKELY TO TRAVEL INTERNATIONALLY 73% 86% The Japanese are the most likely to travel domestically 45% 29%

In general, the three countries in this region show a preference to travelling TOTAL domestically with Australians travelling the most internationally

55% 71%

7 In my country Outside my country THE TYPE OF VACATION VARIES FOR ALL THREE COUNTRIES OVER THE PAST YEAR CHINESE: seek relaxing trips but they also enjoy JAPANESE: love to sightsee and they also AUSTRALIANS: visit their family members more sightseeing, bleisure, and family play trips show a strong preference for stay-cations often, followed closely by relaxing and sightseeing

74% 62% 61% 49% 42% 44% 43% 29% 35% 20% 26% 20% 9% 9% 11%

Relaxing Sight-seeing Bleisure Family Play Romantic Getaway

51% 54% 28% 31% 25% 24% 19% 19% 18% 22% 11% 10% 16% 13% 11% 0% 3% 6%

Party Activity based Visiting Family Special Event Stay-cation Other

China Japan Australia

Q9: Typically, how many personal/leisure and business trips do you take per year? Q10: What types of vacations have you taken in the past year? 8 Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) TRAVELLERS IN ALL THREE COUNTRIES TRAVELLED BY PLANE TO GET TO THEIR DESTINATION Australians are the most likely to The Japanese are the most likely to travel by car and train travel by plane and use all three travel methods fairly evenly

How did you get to your destination?

66% 72%

37% 31% 21% 20% 25% 9% 1%

Plane Car Ride Train Ride

China Japan Australia Notable Country Difference

Q9: Typically, how many personal/leisure and business trips do you take per year? Q10: What types of vacations have you taken in the past year? 9 Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) HOTELS ARE THE MOST POPULAR PLACE TO STAY ACROSS ALL THREE COUNTRIES JAPANESE: prefer staying in hotels CHINESE: prefer hotels, though not quite as AUSTRALIANS: prefer hotels, but they also stay strongly as the Japanese with family and friends

90%

75%

50%

20% 11% 12% 6% 6% 5% 5% 7% 6% 2% 0% 3% 0% 0% 2%

Hotel Resort Home sharing With family/friends Cruise Other (HomeAway, Airbnb, VRBO)

China Japan Australia Notable Country Difference

Q15. How long w as your vacation? Q16. How did you get to your destination? 10 Q17. Where did you stay on your last trip? Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) WHEN ASKED ABOUT INTERNATIONAL OR DOMESTIC TRAVEL, HERE’S HOW THEY RESPONDED CHINESE: prefer domestic travel by just under JAPANESE: are the least likely to travel AUSTRALIANS: prefer domestic travel with just three quarters internationally under half leaving the country

14% 27% 45%

Outside my Country Outside my Country Outside my Country

Q13. What type of vacation did you last book online? Q14. Was the trip….? 11 Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) WHEN ASKED ABOUT THE TYPE OF VACATION THEY LAST BOOKED ONLINE, HERE’S HOW THEY RESPONDED The Japanese and Chinese stayed in their country and took Australians vacation domestically and nearly a quarter take relaxing (China) or sight-seeing (Japan) vacations vacation to visit family

39% 34% 24% 20% 19% 14% 17% 16% 7% 6% 5% 6% 4% 4% 4%

Relaxing Sight-seeing Family Play Romantic Getaway Party

24%

10% 4% 5% 4% 4% 7% 4% 2% 2% 3% 3% 2% 1% 2% 2% 0 3%

Bleisure Visiting Family Activity based Special Event Stay-cation Other

China Japan Australia Notable Country Difference

Q13. What type of vacation did you last book online? Q14. Was the trip….? 12 Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) 81% 71% BUDGET WAS A 64% PRIMARY FACTOR FOR TRAVELLERS

IN ALL THREE Yes No Yes No Yes No COUNTIES WHEN BOOKING THEIR Proportion Spent On Proportion Spent On Proportion Spent On LAST TRIP Hotel 18% Hotel 34% Flight 25% Food 16% Food 17% Hotel 23%

CHINESE: were the most likely to consider budget on Shopping 16% Flight 14% Food 16% their last trip Flight 15% Transportation 14% Transportation 9%

Attractions/Tour Attractions/Tours 15% Shopping 11% 9% JAPANESE: spent a much larger portion of their budget s Attractions/Tour on the hotel than Chinese or Australian travellers Transportation 11% 6% Shopping 9% s

Home sharing 5% Other 3% Other 5% AUSTRALIANS: budget more for flights than travellers 4% from the other two countries Other Home sharing 1% Home sharing 4%

Q18. Was budget a primary factor w hen you were researching/ booking your last trip? 13 Q19. How much total did you spend on your last trip, including flight, hotel, transportation, food, shopping, tours etc.? Q20. What proportion of your travel budget did you spend on each of the follow ing? Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) WHY THEY CHOOSE DESTINATIONS ALTHOUGH CHINESE TRAVELLERS SAY THEY ARE LOOKING FOR DEALS, FEELING PAMPERED, ACTIVITIES, AND EXPERIENCES ARE SIGNIFICANTLY MORE IMPORTANT

Feeling pampered during my vacation 170 Activities I will be doing on my trip 169 A once in a lifetime experience 158 A place where I can vacation with friends 155 My food experience 149 The cultural experience 145 Taking memorable pictures 136 Outdoor activities 121 Somewhere unique that will produce shareable photos 119 A place that is kid friendly 110 Recommendations from family & friends 109 Professional reviews 85 Deals and/or special offers 76 Lowest Price 65

Based on ranking of most/least important considerations in choosing last trip using rotations of considerations and Max-Diff Scaling. 15 JAPANESE TRAVELLERS PLACE THE HIGHEST IMPORTANCE ON THEIR FOOD EXPERIENCE, AS WELL AS LOWEST PRICE WHEN PLANNING A TRIP

My food experience 202 Lowest Price 184 Activities I will be doing on my trip 142 Transportation available on the trip 142 A place where I can vacation with friends 136 Feeling pampered during my vacation 133 The cultural experience 124 Deals and/or special offers 116 Recommendations from family & friends 109 Taking memorable pictures 106 Flight time 103 Shopping experience 100 Professional reviews 99 Online reviews from other travelers 96

Based on ranking of most/least important considerations in choosing last trip using rotations of considerations and Max-Diff Scaling. 16 ACTIVITIES LEAD THE WAY IN TERMS OF IMPORTANCE FOR AUSTRALIAN TRAVELLERS, WHILE PRICE AND DEALS FOLLOW CLOSELY BEHIND

Activities I will be doing on my trip 197 Lowest Price 167 Deals and/or special offers 164 A once in a lifetime experience 150 The cultural experience 143 Taking memorable pictures 125 My food experience 121 A place where I can vacation with friends 121 Outdoor activities 117 Transportation available on the trip 105 Recommendations from family & friends 102 Somewhere unique that will produce shareable photos 89 Feeling pampered during my vacation 87 Online reviews from other travelers 81

Based on ranking of most/least important considerations in choosing last trip using rotations of considerations and Max-Diff Scaling. 17 DETERMINING FACTORS FOR CHOOSING A DESTINATION CHINESE: look to reviews and informative content JAPANESE: show a strong preference for deals AUSTRALIANS: pay close attention to deals before making that features deals before making decisions and informative content as significant influencers a decision and they like informative reviews of places

(% of TRAVELLERS Who Somewhat Agree/Strongly Agree With The Statement)

92% 91% 88% 88% 78% 76% 80% 66% 56%

I read reviews of places I want to visit from sites like TripAdvisor Informative content from destinations and/or travel brands I look for deals before making a decision before making my final decision can influence my decision making process

88% 82% 70% 76% 53% 55% 43% 45% 49%

I talk to people who have visited the place before making a I use loyalty programs in my decision making process Ads can be influential in my decision making process decision

China Japan Australia

Q32. Please select to w hat extent you agree w ith the follow ing statements. (Please select one for each statement) Q33. How can ads help influence in your decision making process? (Please select all the apply) 18 Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) DETERMINING FACTORS FOR CHOOSING A DESTINATION CHINESE: are researching the most prior to travel JAPANESE: gravitate to imagery that looks AUSTRALIANS: pay close attention to deals/content before and pay the most attention to imagery in ads appealing and especially deals that look appealing making a decision and they like deals that look appealing

How can ads help influence in your decision making process?

66% 63% 54% 44% 47% 46% 45% 37% 40% 29% 28% 24% 14% 13% 5%

The imagery in the ad looks The content in the ad is The deals advertised look The ad includes helpful None of the above appealing informative appealing reviews

China Japan Australia

Q32. Please select to w hat extent you agree w ith the follow ing statements. (Please select one for each statement) Q33. How can ads help influence in your decision making process? (Please select all the apply) 19 Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) HOW THEY BOOK ONLINE TRAVEL DESKTOPS DOMINATE THE PATH TO PURCHASE, WHILE SMARTPHONES DOMINATE IN-TRIP The Chinese are far more likely to use their smartphone when looking for inspiration on where to travel than the Japanese and Australians

Smartphone Tablet Desktop/Laptop

71% 77% When I’m looking for inspiration 50% 53% 63% 35% on where to travel 18% 11% 19%

81% When I’m researching on 44% 75% 38% 27% 72% where to travel 21% 10% 20%

76% 84% When I’m booking the travel 51% 57% 31% 27% 24% 7% 14%

78% 75% 62% 37% During my trip 25% 17% 28% 23% 21%

China Japan Australia

Q47. For each of the follow ing statements, which device(s) do you use? Please select all that apply. Q48. Which of the follow ing activities relating to your travel did you start one device and continue and finish on another? 21 Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) MOVEMENT BETWEEN DEVICES INDICATES A PATTERN OF CROSS-DEVICE USAGE The Chinese are the most likely to start activities on The Japanese tend to stick with one device one device and finish on another

Which of the following activities relating to your travel did you start one device and continue and finish on another?

68% 58% 54% 53% 50% 39% 30% 35% 33% 32% 34% 21% 25% 27% 10%

Looking up maps/directions Looking up attractions Looking up hotels Looking at destinations or Looking up restaurants looking at destination ideas

50% 39% 36% 40% 27% 26% 29% 30% 18% 22% 9% 7%

Looking up transportation Looking up booking information Looking up pricing discounts None of the above

China Japan Australia

Q48. Which of the follow ing activities relating to your travel did you start one device and continue and finish on another? Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) 22 MOST BOOKED THEIR LAST ONLINE TRIP LESS THAN 3 MONTHS AGO, AND ONCE A DECISION IS MADE, 65% OF THEM USUALLY BOOK WITHIN 3 WEEKS

Although the Japanese and Australians were likely to have booked their last trip in the last three months, the Chinese were the most recent to have booked travel and the fastest to make a decision

Last time you booked online travel 55% 47% 40% 26% 20% 23% 21% 13% 17% 16% 16% 6%

Less than 3 months ago 3-5 months ago 6 months ago A year ago How long did it take you to book your trip?

42% 36% 30% 34% 33% 27% 22% 17% 19% 14% 13% 4% 0% 2% 4% 0% 1% 2%

Within a week 1-3 weeks A month 2-3 months 4-6 months More than 6 months

China Japan Australia Notable Country Difference

Q32. Please select to w hat extent you agree w ith the follow ing statements. (Please select one for each statement) Q33. How can ads help influence in your decision making process? (Please select all the apply) 23 Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) HOW THEY MAKE THEIR TRAVEL DECISIONS A WIDE RANGE OF SOURCES ARE IMPORTANT IN ALL COUNTRIES FOR INFLUENCE AND INSPIRATION The Chinese and Australians really listen to their family and friends both online and in-person

Which of the following sources influence or inspire your decision making process when booking a trip? 58% 51% 51% 50% 50% 47% 47% 46% 42% 44% 43% 38% 37% 33% 34% 32% 23% 24% 25% 15% 13%

Travel content sites Family, friends (in Family, friends online Online travel agencies Search Engines Social Media Travel agents person) 35% 29% 30% 26% 24% 19% 22% 21% 20% 19% 19% 18% 16% 15% 11% 13% 12% 13% 7% 9% 8% 1% 3% 4%

Online news Online videos Magazines Brands that I follow TV/Radio Online advertising Blogs None of the above or like on social content media

China Japan Australia

Q25. Which of the follow ing sources influence or inspire your decision making process when booking a trip? Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) 25 ALMOST HALF OF ALL TRAVELLERS ARE DECIDING BETWEEN MULTIPLE DESTINATIONS CHINESE: are the least likely to have their JAPANESE: are significantly less likely to have a AUSTRALIANS: look for the best deals and most trip planned destination selected value for their dollar as well as exploring the outdoors

How do you feel when you first decide to take a trip? How do you feel when you first start planning a trip/holiday?

50% Have already decided on 18% 36% Know exactly how to do it and my destination 39% 45% don't need any help 34%

44% Deciding between 2 or Pretty sure I know what to do, 75% 43% more destinations but may need some help and 53% 47% inspiration 61%

7% Don't have a destination in Don't know where to start and 7% 21% mind would need lots of help and 7% 8% inspiration 5%

China Japan Australia

Q23. Which of the follow ing options best describes the w ay you feel w hen you first decide to take a trip? (Please select one) Q24. Which of the follow ing options best describes the w ay you feel w hen you first start planning a trip/holiday? 26 Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) WHILE ALL TRAVELLERS SAY THEY SEEK VALUE, THERE ARE A WIDE RANGE OF ATTITUDES CONCERNING TRAVEL

CHINESE: seek many types of vacations JAPANESE: do not seek active or risky vacations AUSTRALIANS: look for the best deals and most value for their dollar as well as exploring the outdoors

92% 91% 94% 88% 76% 81% 80% 78% 67% 63% 59% 64% 61% 55% 48%

I look for the best deals and most I'll go anywhere that allows me to Every vacation is family oriented and I prefer to go to museums, historical I plan all my travel around where and value for my dollar explore the outdoors and be active has a specific focus on what will keep sites and arts & culture fill up my what I eat and drink my family entertained and happy travel itinerary

77% 70% 70% 70% 63% 59% 64% 60% 63% 49% 55% 56% 26% 31% 30%

You only live once, so taking risks and I'm all about taking a nap on the I prefer all-inclusive vacations like I often opt for "off the beaten path" I don't like travelling far, as long as I'm crossing things off my 'bucket list' is beach, spa treatments and all-day resorts and cruises where I don't have locations and/or recommendations not at work, I'm on vacation imperative relaxation to worry about a thing from locals

China Japan Australia Notable Country Difference

Q8 Please select to w hat extent you agree w ith the follow ing statements. (Please select strongly disagree, somewhat disagree, somewhat agree or strongly agree for each statement) Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) 27 OTAs FOLLOWED BY TRAVEL REVIEW SITES ARE THE MOST INFLUENTIAL SOURCE FOR DECISION MAKING

The Chinese and Japanese cite OTAs as the top online source that Australians say OTAs are the second most influential source influences their decision making for decision making

70% 69% 66% 56% 54% 55% 59% 59% 42% 42% 37% 39% 39% 22% 16%

Online Travel Agency Travel Review sites Search engines Blogs Hotel websites

44% 32% 27% 30% 17% 21% 20% 9% 15% 10% 12% 3% 1% 4% 6%

Airline websites Videos Daily Deals sites Home sharing sites None of the above

China Japan Australia Notable Country Difference

Q27. Which of the follow ing online sources influence or inspire your decision making process in booking a trip? Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) 28 OTAs AND SEARCH ENGINES ARE THE MAIN SOURCE ALL THREE COUNTRIES USE TO PLAN A TRIP The Chinese relied heavily on OTAs for planning their last trip The Japanese and Australians were fairly evenly split between using OTAs and search engines to plan their last trip

67%

48% 48% 50% 49% 50% 46% 42% 41% 37% 38% 38% 35% 36% 39% 28% 24% 23% 27% 20% 17%

Online travel agency Search engines Travel review sites Discussed with Comparison travel Destination-specific Hotel sites friends/family other website sites people going on the trip 44% 31% 28% 28% 22% 19% 16% 15% 13% 15% 16% 12% 10% 8% 10% 10% 6% 4% 0% 1% 2%

Airline sites Social networking sites Blogs Called a travel agent Home sharing sites Car rental sites Other

China Japan Australia

Q35: What resources were used for planning your last trip? Total (n=3001) China(n=1000) Japan (n=1001) Australia (n=1000) 29 OTAs ARE THE MOST COMMON SOURCE ALL THREE COUNTRIES USED IN BOOKING TRAVEL ON THEIR LAST TRIP

67% 48% 48% 46% 40% 36% 34% 30% 28% 21% 24% 22% 22% 10% 14%

Online travel agency Travel review sites Search engines Destination-specific sites Comparison travel website

43% 35% 27% 27% 31% 16% 16% 12% 10% 13% 5% 6% 1% 1% 4%

Airline sites Hotel sites Home sharing sites Car rental sites Other

China Japan Australia

Q38: Please indicate w hich resources you used to book travel online on your last trip 30 KEY INSIGHTS FOR ASIA PACIFIC TRAVELLERS

The typical traveller from this region is deciding between two or more destinations

OTAs are the main source for planning and booking their travel

The Japanese and Australians use their laptops/desktops extensively in the influence and research phase of the decision-making process—switching only to their phones once on vacation; whereas the Chinese use their phones across all phases of the travel journey

Travellers from this region consider deals and values important factors in their travel plans, they largely stay in hotels, and travel domestically

Price and deals are the most significant factor travellers from this region have in common when planning a trip

Deals, informative content, and reviews are all determining factors for travellers in this region in choosing a destination

31 KEY TAKEAWAYS

For the Chinese, advertise with OTAs using content that features relaxing/pampering vacations and be sure to make your content easily available on mobile phones

For the Japanese, advertise with OTAs featuring sightseeing, domestic content that highlights food experiences and plane, car, and train travel methods

For Australians, advertise with OTAs featuring domestic and international destinations that showcase activities, experiences, and good deals, all accessible by plane

32 THANK YOU