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Market Report ADVENTURE TOURISM A STUDY BY: The George Washington University School of Business, The Adventure Travel Trade Association, and Xola Consulting MARKET REPORT Released August 2010 Contributors Adventure Travel Trade Association Shannon Stowell Christopher Doyle The George Washington University Kristin Lamoureux, Ph.D Philippe Duverger, Ph.D Natasha Martin Xola Consulting Christina Heyniger Paige Schneider, Ph.D For more information about this report and other adventure industry research, visit www.adventuretravel.biz, www.business.gwu.edu/iits, and www.xolaconsulting.com. Inquiries may be directed to [email protected] [email protected] and [email protected] © All rights reserved. ii Adventure Travel Market Introduction The George Washington University (GW), the Adventure Travel Trade Association (ATTA), and Xola Consulting (Xola) undertook the following study of the Adventure Travel Market in 2009. The goal of the study was to gain a better understanding of the size and characteristics of this important market segment. This profile of the adventure traveler market will be useful to: Q Government policy makers Q Destination marketing organizations or destination management organizations, state or national tourism offices Q Adventure tour operators Q Gear and equipment companies Marketing, positioning and branding at the organizational or destination level may be adapted to attract this lucrative segment. Understanding traveler preferences and trends, such as those outlined in this report can impact the design and development of attractive tourism products and services for this market. Overview Adventure travelers often seek unique or new travel destinations and activities. It is often believed that a percentage of this sector is willing to accept limited tourism infrastructure with the promise of an exceptional, authentic experience. Given their penchant for exploring new destinations and seeking new experiences, they are frequently coveted by emerging destinations at the early stages of tourism development and also in more mature destinations that have protected and/or developed appropriate product. Although adventure tourism is recognized as an important, growing tourism segment, primary research to quantify the size and scope of this market in the U.S. or internationally (Schneider 2006) has been lacking. For this reason, George Washington University, along with its partners, the Adventure Travel Trade Associ- ation (ATTA) and Xola Consulting, sought to better understand the adventure traveler. This study’s focus area was limited to three major markets: Europe, Latin America and North America, which comprise 70% of overall international departures, according to the UNWTO1. The study focused on previous (actual) and anticipated (intended) travel behavior, as well as psychographic and demographic information. This report provides a detailed examination of adventure travelers in these three areas, including: number of travelers, spending, and a snapshot of predicted future trends. The information in this report may provide guidance for destination management organizations and firms involved in marketing as well as product development. It may be especially useful to destination management organizations or state/ regional tourism offices seeking to build or enhance their adventure offerings or adventure tourism operators seeking to understand their target market. The Adventure Travel Market Report includes: Market Sizing Information Q The size of market and characteristics of adventure travelers in Latin America, North America and Europe, including psychographic and demographic profiles; Q Analysis of behavioral patterns including their online behavior with a focus on social networking sites; Q A detailed list of activities/trip types included within the study’s definition of adventure travel; and Q A snapshot of purchasing patterns for gear, computer and car brands and widely read publications to facilitate a better understanding of their lifestyle. 1 Activities included: Hard Soft Other4 Archeological expeditions X Attending local festivals/fairs X Physical Interaction with Backpacking X Activity Environment Birdwatching X Camping X Canoeing X Caving X Climbing (mountain/rock/ice) X Cultural Cruise X Exchange Cultural activities X Cycling X Eco-tourism X Educational programs X Methodology Environmentally sustainable activities X This study of the adventure travel market Fishing/fly-fishing X was conducted in late 2009. Adventure travel is an inherently subjective activity: Getting to know the locals X what is adventure to one person, may Hiking X not be to another2. Therefore, for the Horseback riding X purpose of this study, a broad definition Hunting X of adventure tourism was adopted: Kayaking/sea/whitewater X any domestic or international trip that includes at least two of the following Learning a new language X three aspects: physical activity, interac- Orienteering X tion with nature and cultural learning or Rafting X exchange.* Respondents were provided Research expeditions X with a list of possible activities. They Safaris X were asked to choose what activities they had participated in. These activities Sailing X were categorized into either hard or soft Scuba Diving X adventure activities or “other” tourism Snorkeling X activities. This use of this classification Skiing/snowboarding X system is based on previously estab- Surfing X lished research in this field3. This categorization has its foundation in Trekking X academic literature and has been Walking tours X confirmed by previous surveys of Visiting friends/family X consumers. Visiting historical sites X Volunteer Tourism X Utilizing an on-line survey instrument, zoomerang.com, the survey Country Language was sent to a representative sample of residents. The survey was Argentina Spanish completed by 855 respondents in six countries, in the following Brazil Portuguese three regions: Europe, North America and Latin America, representing about 73% of global expenditures or 68.7% U.S.A. English of international departures (UNWTO, 2009). The survey was U.K. English distributed to the six countries in the languages outlined to Spain Spanish the right. Germany German *Adventure Travel Trade Association, (2006) adapted from research conducted by Schneider, P. & Vogt, C.(2005). “Adventure Travel Survey: Consumer Report.” Prepared for the Adventure Travel Trade Association: 1-37. 2 Q The survey sample is statistically representative of the population under study5. North American results are less dispersed around the estimates in the population than Latin America or European results due to the fact that the North American region hosts only 3 countries. Top Product Companies Respondents’ choice of activity were separated as “hard” or “soft” Recognized by Adventure adventure building on previous research conducted6. Travelers Select Key Findings: 1. Timberland Q Of those countries surveyed, 26% of respondents indicated that 2. Quicksilver they participated in adventure travel activities; Q 16% of all international departures from these three regions were 3. Gore-Tex for adventure travel; 4. The NorthFace Q The choice of activities influence whether consumers term their 5. Columbia Sportswear trip ‘adventure.’ 6. Montagne Adventure Travel Destinations 7. Eddie Bauer Q On average, the regional adventure market represents 55% of 8. Swiss Army Luggage adventure travel in the three regions surveyed; 9. Salomon Q The top adventure destinations for developed countries correlate with those highly ranked on the Adventure Travel Development 10. LL Bean Index. (Learn more at www.adventureindex.travel7) Adventure Travel Expenditures Q Adventure travel is resilient and is trending upwards even in difficult economic times; Q Adventure is expanding into a broader range of activities; Q The “soft” adventurer spends the most per trip, (excluding airfare); Q The value of the global adventure market is $89billion; Q All adventure travelers spend significant amounts of money on equipment & apparel pre-trip. Behaviors, Psychographics and Demographics Q Adventure travelers are equally likely to be single or married, and male or female. The majority are between 35-47 years old. Industry followers familiar with research from the Adventure Travel Trade Association may expect a higher percentage of baby boomer travelers. However, this study reflects not only consumers of tours but adventure travelers in general; it includes people who organize their own trips and therefore more likely to be younger with more time to plan. Q After “local newspapers,” the most widely read publication by adventure travelers in North America was People Magazine, followed by National Geographic. Q Compared to “other travelers,” adventure travelers place impor- tance on exploring new places and meeting and engaging with local cultures while on vacation; this confirms earlier research by ATTA which found that travelers were craving more cultural interaction on trips (ATTA, 2006).* Q Compared to other forms of pre-trip research, the majority of adventure travelers (35%) conduct research online, but they also consult friends and family. *Schneider, P., Latkova, P., & Vogt, C. “Consumers’ Need for Uniqueness: Seeking the Trait Through Adventure Travel.” Travel and Tourism Research Association, 2008. 3 Profile of Respondents Who are adventure travelers? They are fairly evenly split male to female, even within in category of “hard” adventure sports. Soft adventurers skew slightly more female, but not as much as
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