Trends in hard and soft adventure holidays Euromonitor International 21 January 2011 In August 2010, a report published by George Washington University (GW), Adventure Travel Trade Association (ATTA) and Xola Consulting confirmed that travellers are becoming more adventurous and seek new experiences. According to the survey, which was carried out across Latin America, North America and Europe in late 2009, adventure travellers globally represent a significant and growing market, worth some US$89 billion annually. Such consumers are therefore of increasing interest to tour operators, travel agents and other travel companies, as well as manufacturers of a variety of outdoor wear and equipment. In the countries surveyed, 26% of respondents indicated that they participated in adventure travel activities. The term 'adventure holiday' is open to some interpretation. The study breaks it down into 'hard adventure', which involves high risk activities that require a high level of skill, such as trekking, climbing and caving; 'soft adventure', which involves less taxing activities such as skiing, scuba diving, archaeology trips, etc; and 'other', which includes cruises, walking holidays and cultural activities. Table 1 Activities by Type Activity Hard Archeological expeditions Attending local festivals/fairs Backpacking Birdwatching Camping Canoeing Caving Climbing (mountain/rock/ice) Cruise Cultural activities Cycling Eco-tourism Educational programs Environmentally sustainable activities Fishing/fly-fishing Getting to know the locals Hiking Horseback riding Hunting Kayaking/sea/whitewater Learning a new language Orienteering Rafting Research expeditions Safaris Sailing Scuba Diving Snorkeling Skiing/snowboarding Surfing Trekking Walking tours Visiting friends/family Visiting historical sites Volunteer Tourism Source: Soft X Other X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X Adventure Tourism Market Report 2010 (George Washington University School of Business, ATTA and Xola Consulting) Soft adventure increasing in popularity According to the study, hard adventure trips accounted for less than 2% of the population, while 25% went on soft adventure trips and 74% on 'other' adventure holidays. In all three regions, soft adventure increased steadily over travellers' past three trips and continued to do so with regard to future travel intentions. Latin Americans took the most adventure trips (35% of total outbound travellers, compared to 23% for European travellers and 18% for North American travellers), while around 43% of Europeans indicated that for their next holiday they would take a soft adventure trip. Germans, in particular, drove growth in “hard adventure” trips. The GW/ATTA/Xola study found that adventure travellers place importance on exploring new places and meeting and engaging with local cultures while on holiday. Overall, adventure travellers are equally likely to be single or married, and equally likely to be male or female. The majority are between 35-47 years old. They are also more highly educated than other types of travellers, with 70% of hard adventurers and 63% of soft adventurers having post-secondary education. Consequently, adventure travellers also have higher levels of disposable income. Soft adventure travellers don't necessarily travel far, but spend a lot It is important to note that 75% of hard adventure travelers have passports while only 56.5% of soft adventure travellers have them, which suggests that a lot of soft adventure is happening in the domestic tourism market. 63.7% of other travellers have passports. However, soft adventure travellers spend more on average than the other two types of adventure travellers. Table 2 Average Spending per Trip Excluding Airfare by Adventure Type US$ European Travelers North American Travelers Latin American Travelers All 3 Regions Source: Hard 500 500 375 462 Soft 525 914 861 822 Other 483 605 835 591 Adventure Tourism Market Report 2010 (George Washington University School of Business, ATTA and Xola Consulting) Adventure travellers segmented by age group The characteristics of adventure travellers vary according to age group, according to the GW/ATTA/Xola study, and the needs of these different groups must be addressed by tour operators and travel agents. The younger generation, Generation Y, tend to have small budgets but plenty of time to travel, since they often take a 'gap year' after university, or between jobs, in order to fulfil their dreams of travelling. This type of traveller tends to seek authentic experiences, connecting with local people or trekking long distances or taking long bus or train journeys. Budget and value are the key selling points for this group, although sustainability/responsibility plays a surprisingly high role in decision making. Generation X travellers have often travelled extensively in their youth or studied abroad during college. They are confident navigating the internet to find good deals and new destinations. However, now that they have demanding jobs they are time poor and want to get the most possible out of their limited holiday time. They demand once-in-alifetime experiences, such as hiking Mount Kilimanjaro, and are prepared to splurge to achieve them. The Baby Boomer generation is either discovering or re-discovering the adventure travel experience later in life. Many empty nesters have extra time and money on their hands and are still fit and healthy. They are curious to do things they could not do in their working years or have not done since their youth. They have large budgets and value adventure combined with a cultural experience. They tend to book through tour operators and may take more than one trip per year. Table 3 Characteristics of Adventure Travellers by Age Group Characteristic Age segment Small budgets, seeking value Generation Y Time for travel, hence longer trips Seek authentic experiences/connect with local people High users of the internet to research travel, especially social networking Sustainability/responsibility play a high role Experience of travelling throughout their youth Generation X Adept at navigating the internet to find good deals and new destinations Time poor Big budgets Demand once-in-a-lifetime experiences Seek new experiences or want to recreate experiences from youthBaby Boomers Empty nesters have extra time and money to dedicate to holidays Big budgets Prefer soft adventure combined with cultural experiences Less experienced with internet, more likely to book through tour operators May take several trips in one year Source: Adventure Tourism Market Report 2010 (George Washington University School of Business, ATTA and Xola Consulting) Reaching the adventure traveller Most adventure travellers use the internet to research their trips, with the majority of these going directly to Google with generic search terms such as the destination name. Around 20% use social media to learn about the destination, either by reading a blog post or viewing a friend's photos on a social networking site. Table 4 Most Used Social Networking Sites by Adventure Travellers % Social network % 34.3 11.9 8.6 7.1 5.9 3.3 Facebook MySpace Twitter Hi5 Orkut Flickr Source: Table 5 Adventure Tourism Market Report 2010 (George Washington University School of Business, ATTA and Xola Consulting) Top Magazines Being Read by Adventure Travellers in the US only Magazine Local daily newspaper People National Geographic Newsweek Time Reader’s Digest Cosmopolitan CondeNast Traveler Glamour GQ Source: Rank 1 2 3 4 5 6 7 8 9 10 Adventure Tourism Market Report 2010 (George Washington University School of Business, ATTA and Xola Consulting) Europe leads the way in adventure/trekking travel retail sales Not surprisingly, seven out of the ten largest markets for adventure/trekking travel retail sales are Western European. With a culture of sabbaticals and gap years, many Europeans travel to explore nature. Although most countries saw declines in sales, Switzerland and Australia saw increases. In the case of Australia, the target consumer group for this product – those in their 20s and 30s – is the demographic that has been least impacted by the economic downturn. Without sufficient wealth to lose in the stock market, and with mortgage rates falling, this demographic took advantage of the bargains that the crisis has produced. The focus on adventure travel by leading travel retailer Flight Centre Ltd, since it formed a joint venture with Intrepid Travel in 2008, has provided an additional stimulus. Furthermore, adventure /trekking holidays will continue to grow due to the increased accessibility of many of the most desirable locations with a growing number of more affordable flights to South Asia, Africa and Latin America. For Switzerland, backing this growth in adventure/trekking sales are several trends, among which nature-affined travelling is the strongest. Also, holiday makers tended to holiday closer to home in 2009. Finally, accommodation for these kinds of holidays tends to be basic, and cheaper, than with other types of holiday. The hostels category benefited from this growth both inside Switzerland and outside. A representative survey conducted in September 2009 by Zurich-based LINK Institute for Coopzeitung (514 interviews) showed that for 41% of Swiss holiday makers (44% of women, 38% of men), peace and quiet is the most important factor. 23% want to get to know their holiday destination, and 18% are after adventures and new experiences (23% of men, 14% of women). For 13%, the weather and the climate are decisive factors, and only 4% make food and drink the basis of their holiday. Table 6 Adventure/Trekking Travel Retail Sales US$ Million) Top Countries Top Countries USA United Kingdom Japan Switzerland Germany France Italy Austria Netherlands Australia Source: 2009% Growth 2008/2009 4,750 -6.1 2,473 -11.4 1,283 -5.3 801 10.5 779 -5.6 737 -7.4 704 -1.6 453 -3.5 401 -9.0 367 4.5 2008 2,825 2,057 1,808 1,724 1,912 1,351 1,113 987 749 731 2009% Growth 2008/2009 2,634 -6.8 1,919 -6.8 1,718 -5.0 1,679 -2.6 1,549 -19.0 1,430 5.8 1,022 -8.1 998 1.1 744 -0.7 735 0.5 Euromonitor International Table 7 Number of Backpacker Departures, '000 Top Countries Top Countries Germany France Japan Belgium United Kingdom Italy Russia Sweden Netherlands Switzerland Source: 2008 5,058 2,792 1,355 725 825 796 715 470 441 351 Euromonitor International For further insight, contact Michelle Grant, Travel and Tourism Analyst at Euromonitor International, michelle.grant@euromonitorintl.com