Dollars And Cents
The United Nations World Tourism Organization (UNWTO) recently released data on the spending habits of tourists in 2014, which put $1.2 trillion back into the global economy — an increase of $48 billion from the previous year.
The same report revealed that receipts from international visitors spending on accommodation, food and drink, entertainment, shopping and other services and goods reached an estimated US$1.245 billion in 2014, an increase of 3.7%.
The global business travel market generates sales worth hundreds of billion U.S. dollars every year and it includes both national and international travel, accommodation, additional transportation and many other amenities. A recent survey from Expert Market reveals business travellers spend up to $611 per day.
According to a study of 240,000 unique travellers by RocketFuel, luxury travellers make up to 18 purchases prior to a trip, compared to four for non-luxury travellers, and luxury travelers are 206% more likely to make a retail purchase at a luxury retailer than non-luxury travellers.
Once at their destination, travellers are motivated to make purchases for products and services. A Ulysses Mercer analysis revealed that a $300 average spend per person on third party ancillaries is comprised of the following:
- Destination food & drinks – $114
- Transport at destination – $62
- Destination shopping – $41
- Travel accessories & care – $28
- Destination entertainment – $15
- Transport to & from airport – $12
- Other – $28
In contrast, some ancillaries are not so welcome by travellers. According to Expedia, for global travellers, the most aggravating travel fees, in order, are “taxes,” “baggage fees” and “booking fees.” The list features:
- Taxes: 41%
- Baggage fees: 36%
- Booking fees: 34%
- Seat selection fares: 27%
- Resort/hotel fees: 25%
- Tipping: 25%
- In-room WiFi: 23%
- Buying mobile phone package for out-of-network travel: 18%
- Travel/trip protection insurance: 15%
For more, check out this week’s digital edition of Canadian Travel Press by clicking here .
