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VOLUME

#6

THE YOUTH TRAVEL ACCOMMODATION INDUSTRY SURVEY EXECUTIVE SUMMARY

BED OCCUPANCY

€ € €

2009

56%

2010

57%

59%

1 STAFF MEMBER FOR EVER 8 BEDS

THE MOST FREQUENT LENGTH OF STAY FOR GUESTS WAS 2 TO 3 NIGHTS

R EV PAB INCREASES TO €24 IN 2011

INCREASE TO €46 FOR SINGLE IN HIGH SEASON

2011

STAFF VS. BEDS

NIGHTS

BED RATES

ESTABLISHMENTS

REPRESENTING 2,200 ESTABLISHMENTS IN 100 COUNTRIES

GOOGLE+

SIGNIFICANT GROWTH IN THE USE OF NEW SOCIAL NETWORKING TOOLS SUCH AS GOOGLE+ AND FOURSQUARE IN 2011.

BOOKINGS 30%

OF BOOKINGS THROUGH THIRD PARTY WEBSITES

PRICE VS. OCCUPANCY

ESTABLISHMENTS IN THE HIGHER PRICE CATEGORIES TEND TO HAVE HIGHER OCCUPANCY RATES.

FACILITIES EN-SUITE FACILITIES WERE PRESENT IN ABOUT 75% OF ESTABLISHMENTS

AGE

$

THE 25 TO 34 YEAR AGE GROUP WAS AGAIN THE LARGEST YTA SEGMENT


THANK YOU TO OUR SPONSORS


www.staywyse.org

The association of youth travel accommodation

VOLUME #6

THE YOUTH TRAVEL ACCOMMODATION INDUSTRY SURVEY RESEARCH PROGRAMME

STAY WYSE is committed to understanding the ever changing characteristics, motivations, and needs of young travellers. STAY WYSE gathers, analyses and shares important research data and market intelligence with their members, academics, corporate and government decision-makers, and the general travelling public. Our investment in research and market intelligence informs the policies, services and products which make international travel and educational experiences exciting, safe, accessible and affordable for young people. Please visit www.staywyse.org for more information about the STAY WYSE research programme and how to become a member.

Author: Tourism Research and Marketing Survey Manager: Laura Daly Title: The Youth Travel Accommodation Industry Survey Publisher: STAY WYSE Association Published: September 2012 Design: Scribble design (www.scribbledesign.nl) Printing: Graphic Promotions BV, Leusden, The Netherlands

THE YOUTH TRAVEL ACCOMMODATION SURVEY

1


Cheap eats. Last calls. Art openings. Pickup games. Vintage shopping. Velvet ropes. Concerts every night. Coffee shops all night long. NYC <30. Get the most out of New York City with NYC & Companyâ&#x20AC;&#x201D;the official resource for all youth travel services, including hotels, restaurants, tours, attractions and more.

Contact traveltrade@nycgo.com or visit nycgo.com/traveltrade


CONTENTS 4 4 4

INTRODUCTION ABOUT STAY WYSE YOUTH TRAVEL ACCOMMODATION INDUSTRY: MARKET DYNAMICS

5

METHODOLOGY

7 7 7 9 9 9 9 9 11 11 11 11 11

EXECUTIVE SUMMARY YOUTH TRAVEL ACCOMMODATION ESTABLISHMENTS YOUTH TRAVEL ACCOMMODATION GUESTS BOOKING SOURCES YOUTH TRAVEL ACCOMMODATION BED SALES AND OCCUPANCY RATES YOUTH TRAVEL ACCOMMODATION REVENUES YOUTH TRAVEL ACCOMMODATION COSTS STAFF SELLING POINTS FOR YTA SOCIAL NETWORKING ACTIVITY MOBILE APPLICATIONS ENVIRONMENTAL AND SUSTAINABLE INITIATIVES FUTURE EXPANSION

13 CONCLUSIONS 14 ACKNOWLEDGEMENTS

THE YOUTH TRAVEL ACCOMMODATION SURVEY

3


INTRODUCTION ABOUT STAY WYSE

STAY (Safe Travel Accommodation for Youth) WYSE Association is the global forum and trade association for organisations involved in youth travel accommodation. The Association was formed in 2006 by the world’s leading youth travel accommodation providers to represent the entire global Youth Travel Accommodation (YTA) sector. STAY WYSE is the only not-for-profit industry association bringing together the diverse segments of this significant multi-billion dollar industry. The association works to provide much needed support and representation for one of the youth travel industry’s fastest growing niche markets. Research has always been one of the key activities for STAY WYSE, and this is the sixth consecutive annual survey of the global Youth Travel Accommodation market. For more information regarding STAY WYSE please see www.staywyse.org.

YOUTH TRAVEL ACCOMMODATION INDUSTRY: MARKET DYNAMICS

The youth travel market has grown from an estimated 160 million international trips a year in 2005 to almost 200 million in 2011. In spite of the recent challenges for the global tourism market, the youth travel sector is still expanding overall. One of the reasons for this is the tendency for young people to travel in spite of adverse economic circumstances. When employment is hard to find at home, young people are more likely to look for opportunities elsewhere. As research by STA has indicated, economic pressures in the UK, combined by a hike in university tuition fees is likely to stimulate more people to travel abroad. The STA research has predicted a 20% rise in youth travel as a result, with particularly strong growth in ‘gap years’ to delay entry to the job market while they boost their CV and work skills. Such trends should also tend to strengthen the demand for

4

volunteer travel and language programmes. The data presented in this report also indicate that the YTA sector is growing and diversifying to cater for these new opportunities. As the YTA industry grows in size and complexity it becomes even more important to have reliable and timely information on market trends and developments. This report is the sixth in a series of reports on the YTA industry produced by STAY WYSE. The continued growth in participation in the research is a clear indication of the importance of this information to the market. The STAY WYSE research has become particularly important because it is the only global indicator of the state of the YTA sector, and because it seeks to provide concrete business metrics that allow operators to benchmark their own performance against global and regional standards. The aims of the study are: rTo collect data for the purpose of identifying trends and making relative comparisons. rProvide guidance to youth travel accommodation providers in assessing their business performance, cost effectiveness, revenues and expenses relative to the industry standard. rTo enable youth travel accommodation operators to benchmark their business characteristics in order to develop strategic concepts and optimize business outcomes. rTo help youth travel accommodation providers to develop business plans and help guide investment decisions. The 2011 survey provides more detailed information than previous reports, including new questions on staffing, mobile applications and future expansion plans. The quality of the financial data has also been improved compared with previous years, and as the response rate has risen the number of operators providing detailed financial information has also increased.

THE YOUTH TRAVEL ACCOMMODATION SURVEY


METHODOLOGY Leading Youth Travel Accommodation (YTA) operators around the world were asked to participate in a detailed survey, which was open for the period May to July 2012. Respondents were asked about their business operations during calendar year 2011. The scale of the survey continues to grow, with over six times as many respondents to the survey undertaken in 2012 as in the survey undertaken in 2009. TABLE 1

RESPONSES TO SURVEY FROM 2009 TO 2012 SURVEY

RESPONSES

ESTABLISHMENTS

BEDS

NO. OF COUNTRIES SUPPLYING DATA

2009

146

216

50,000

42

2010

321

563

70,000

73

2011

901

1,363

84,000

96

2012

937

2,191

132,000

100

The STAY WYSE survey has rapidly become the most comprehensive study of the YTA industry worldwide, and is the only consistent source of benchmarking and comparison by world region, country and for a number of key cities. This work was greatly aided by the support given to the 2011 survey by Hostelworld.com, HostelBookers, SAYTC, StudentMarketing and Budgetplaces.com, who helped to distribute surveys to the global YTA industry. In addition, STAY WYSE would also like to thank Hostelling International, Hostelworld.com, Backpackers Villa Interlaken, Hostel ONE80째, Hatters Group, Palmers Lodge and Smart City Hostels for distributing the YTA consumer survey. It should be noted that the sample of respondents varies between the different years of the survey, and that direct year-on-year comparisons are therefore difficult. However, as the size of the YTA sample increases, so does the reliability of the data and the validity of comparative analyses. The 2011 sample now includes almost 8% of global YTA capacity, a considerable increase on previous years. The responses were analysed anonymously, and only general figures for regions, countries or types of operation are reported here for reasons of confidentiality.

THE YOUTH TRAVEL ACCOMMODATION SURVEY

5


00/00 90 05/08/19 Y NAME SIT UNIVER S THEAU M DARIU

6

THE YOUTH TRAVEL ACCOMMODATION SURVEY


EXECUTIVE SUMMARY The sixth annual analysis of YTA business operations by STAY WYSE for the year 2011 covers almost 2,200 accommodation units in 100 countries. Data on activities for the period January to December 2011 were collected through an online survey held in May to July 2012.

YOUTH TRAVEL ACCOMMODATION ESTABLISHMENTS

The distribution of reporting YTA establishments was similar to previous years, with almost 50% coming from Europe, and Asia (14%) and South America (13%) also being strongly represented. Reporting establishments were predominantly located in urban areas (74%) and privately owned (90%). Hostels accounted for 50% of the sample, with guest houses (16%) and bed & breakfast establishments (12%) being the next largest categories. The hostel label was particularly likely to be used in South America, while guesthouses were most common in Asia. In 2011 the mean number of beds per establishment was 67, higher than in 2010 (58). Over 60% of respondents had less than 50 beds in 2011 and 10% had more than 200 beds. The largest bed capacities tended to be found in student accommodation (over 200 beds per establishment), whereas the average hostel has less than 100 beds. Geographically the largest establishments tend to be found in Western Europe (where there are many larger city centre operations) and in Oceania, where dorm accommodation is also more common. Over 60% of establishments had less than 50 beds in 2011. The average number of beds per room rose to just under 4 in 2011. En-suite facilities were present in about 75% of establishments in 2011, but the growth in en-suite provision seems to have slowed compared to previous years.

YOUTH TRAVEL ACCOMMODATION GUESTS

Individuals in dorms accounted for around 35% of reported guests, individuals in private rooms for about 34%. Dorm guests are most common in Oceania, accounting for almost 50% of guests in 2011. Private room guests are most common in Asia (over 40%). The 25 to 34 year age group was again the largest YTA segment, targeted by just under 60% of providers. Oceania, North America and Eastern Europe tended to cater for younger markets, Western Europe and Africa for older travellers. The most frequent length of stay for guests was 2 to 3 nights (60%), unchanged compared with 2010. The proportion of business travellers rose from 12% in 2010 to 14% in 2011, reflecting the continued upgrading of YTA facilities. Business travellers are most common in urban and suburban locations.

THE YOUTH TRAVEL ACCOMMODATION SURVEY

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EXECUTIVE SUMMARY

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ITB Berlin 2013 

WYSE_ITB2013_Welle_210x148_en.indd 1

8

16.08.2012 09:26:12

THE YOUTH TRAVEL ACCOMMODATION SURVEY


EXECUTIVE SUMMARY

BOOKING SOURCES

Third party hostel booking sites accounted around 30% of bookings in 2011, an increase compared with 2010. The use of third party websites is particularly important in Europe. Booking lead times rose again in 2011, with 40% of bookings being made one month or more in advance.

YOUTH TRAVEL ACCOMMODATION BED SALES AND OCCUPANCY RATES

Larger operations with 100 or more beds accounted for almost 60% of reported bed sales in 2011. Average bed occupancy rates rose again to reach 59%, compared with 57% in 2010 and 56% in 2009. Asia had the highest occupancy rates in 2011, and Europe also recorded higher occupancy levels. In contrast Africa, North America and Oceania all recorded lower average occupancy rates in 2011. Establishments in the higher price categories (above €50 for a single room) tend to have higher occupancy rates. Average bed rates rose again in 2011 to €46 for a single in the high season and €23 for a high season dorm bed. Bed rates in the event season fell between the high and low season rates.

YOUTH TRAVEL ACCOMMODATION REVENUES

Bed revenues accounted for 78% of total average revenues in 2011, an increase compared with 2010, and also a reversal of the trend towards increasing ancillary revenue sources noted in previous reports. Bed revenues were a particularly high proportion of the total in North America, Western Europe and Oceania and lowest in Africa. The revenue per available bed (RevPAB) was almost €24 in 2011, a growth of almost 5% compared with 2010. RevPAB was highest in Western Europe, Oceania and North America and lowest in Asia.

YOUTH TRAVEL ACCOMMODATION COSTS

Staff (24%) and mortgage/rent costs (21%) continue to be the largest cost headings for YTA operators. There has been little change in the cost structure of YTA establishments in the past two years.

STAFF

The average responding organisation had 29 staff in 2011, with a total of 23,400 staff being employed by those reporting staff numbers. The average YTA operation employs 11 staff, or one staff member for 8 beds.

THE YOUTH TRAVEL ACCOMMODATION SURVEY

9


EXECUTIVE SUMMARY

SELLING POINTS FOR YTA

The main selling points for YTA establishments remain location and customer service, just as they have been since 2009. The only significant difference in selling points by world region was value for money, which tended to be ranked highest by operators in Africa, Asia and North America. There were no significant differences in the priority of major selling points by type of accommodation.

SOCIAL NETWORKING ACTIVITY

Social networking was utilised by 81% of YTA establishments in 2011, about the same level as in 2010. Facebook is used by almost 40% of establishments, and there has been a significant growth in the use of new social networking tools such as Google+ and Foursquare in 2011. Social networking information was updated an average of more than 20 times a month. The most frequent updaters were found in South America (35 times per month) and the fewest updates are made in Eastern Europe (15 times per month).

MOBILE APPLICATIONS

In 2011 just under a quarter of respondents had developed a mobile application, of which most accepted reservations. Almost 50% more YTA operators were using mobile applications in 2011 than in 2009 or 2010. The YTA consumer research collected by STAY WYSE members in 2012 indicates that mobile applications are being used for research (35% of YTA consumers) and booking travel (16%) and reviewing bookings (18%).

ENVIRONMENTAL AND SUSTAINABLE INITIATIVES

There has been a growth in the overall proportion of respondents using green initiatives in 2011, with almost two thirds now using at least one form of environmental measure. The most popular are energy efficient lighting (44%) and recycling (40%). The proportion of respondents indicating that they belonged to a green certification scheme rose to 7.5% in 2011.

FUTURE EXPANSION

Almost 20% of respondents are planning to expand their number of establishments in 2013. This suggests a growth of almost 12% in the total number of establishments compared with 2011. The most frequently mentioned countries for new establishments were Spain, Brazil, the United States and Peru.

THE YOUTH TRAVEL ACCOMMODATION SURVEY

11


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CONCLUSIONS The STAY WYSE survey of YTA business continues to indicate that the industry has navigated the crisis reasonably successfully. In spite of growing economic and competitive pressures, there are a number of indicators of the basic health of YTA. In particular, levels of business continue to grow in general. In 2011 there was a further rise in average bed occupancies to reach 59% and at the same time bed rates also continued to rise. Given the pressure that exists to combat adverse market conditions with discounting this shows that the YTA sector is continuing to react proactively to the market. The growing professionalization of the industry is reflected in the upgrading of facilities, with en-suite provision increasingly becoming the norm. The growth in individual private room guests seems to vindicate the investments made in recent years in upgrading facilities. Greater quality and professionalism also allows establishments to tap into new markets, as the growth in business travel shows. The 2011 survey draws a picture of a more diverse YTA industry, with a growing range of providers entering the market. At the same time many of the essential benchmarks of YTA operation remain remarkably consistent across types of establishments and world regions, indicating that the YTA sector has maintained its own distinctive style. This is also appreciated by the main market segments, as the initial results of the STAY WYSE 2012 consumer survey show. Customers who prefer staying in hostels also tend to emphasise the social aspects of the experience, as well as the atmosphere. Expansion continues in the YTA sector, with growth in the number of establishments among reporting organisations of around 12% by 2013. This underlines the general confidence that YTA operators have in the future of the industry.

THE YOUTH TRAVEL ACCOMMODATION SURVEY

13


ACKNOWLEDGEMENTS STAY WYSE Association would like to thank the following individuals and organisations for their valuable contributions to this report:

THE MEMBERS OF STAY WYSE STAY WYSE BOARD r.S6MJTFT0SUFHB .VOEP+PWFO DIBJSNBO

r.S%BWJE$IBQNBO *OUFSOBUJPOBM4UVEFOU)PVTF r.T$BSNFM%VOOF )PTUFMXPSMEDPN r.S&SJDWBO%KJL (FOFSBUPS)PTUFMT-UE r.S.JLBFM)BOTTPO )PTUFMMJOH*OUFSOBUJPOBM r.S1IJMJQ)PVHIUPO 4NBSU$JUZ)PTUFMT r.S4UFWF-PXZ VNJ)PUFMT

WYSE TRAVEL CONFEDERATION Carla Vaz Mauro Battellini

YTA INDUSTRY SURVEY DISTRIBUTION r)PTUFM#PPLFST r)PTUFMXPSMEDPN r)PTUFMMJOH*OUFSOBUJPOBM r4PVUI"GSJDBO:PVUI5SBWFM$POGFEFSBUJPO 4":5$

r#VEHFUQMBDFTDPN r4UVEFOU.BSLFUJOH

YTA CONSUMER SURVEY DISTRIBUTION r)PTUFMMJOH*OUFSOBUJPOBM r)PTUFMXPSMEDPN r#BDLQBDLFST7JMMB*OUFSMBLFO r1BMNFST-PEHF r)BUUFST(SPVQ r4NBSU$JUZ)PTUFMT r)PTUFM0/&Â&#x17E;

DESIGN Mark Bakker, Scribble design (www.scribbledesign.nl)

PRINTING Graphic Promotions BV, Leusden, The Netherlands STAY WYSE would also like to thank all of the Youth Travel Accommodation providers who kindly participated in this study.

14

THE YOUTH TRAVEL ACCOMMODATION SURVEY


THANK YOU

FOR HELPING TO DISTRIBUTE THE YTA INDUSTRY SURVEY

Berlin

FOR HELPING TO DISTRIBUTE THE YTA CONSUMER SURVEY


www.staywyse.org

The association of youth travel accommodation

BOOKING LEAD TIME

LOCATION &  CUSTOMER SERVICE

BOOKING LEAD TIMES ROSE AGAIN IN 2011

78%

THE MAIN SELLING POINTS FOR YTA ESTABLISHMENTS REMAIN LOCATION AND CUSTOMER SERVICE

BED REVENUE

COST +

BED REVENUES ACCOUNTED FOR 78% OF TOTAL AVERAGE REVENUES IN 2011

SOCIAL NETWORKING

= 45%

STAFF (24%) AND MORTGAGE/RENT COSTS (21%) CONTINUE TO BE THE LARGEST COST HEADINGS FOR YTA OPERATORS.

81%

BUSINESS TRAVELLERS 14%

OF GUESTS ARE BUSINESS TRAVELLERS

INCREASE IN USAGE OF GREEN INITIATIVES: ALMOST TWO THIRDS OF YTA ESTABLISHMENTS NOW USING AT LEAST ONE FORM OF ENVIRONMENTAL MEASURE.

MOBILE BOOKINGS

EXPANSION

MOBILE APPS

UTILISED BY OF YTA ESTABLISHMENTS IN 2011

16%

OF YTA CONSUMERS USING MOBILE APPS TO BOOK 16

20%

OF RESPONDENTS ARE PLANNING TO EXPAND THEIR NUMBER OF ESTABLISHMENTS

GREEN

INCREASE IN MOBILE APP DEVELOPMENT BY YTA INDUSTRY

THE YOUTH TRAVEL ACCOMMODATION SURVEY

6th Annual Youth Travel Accommodation Inustry Survey  

STAY WYSE, the global forum and trade association for organisations involved in youth travel accommodation, has just published its sixth ann...

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