TTC Tour Brands' Big Tour Study

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driven by service

THE BIG TOUR STUDY Australia & New Zealand tour traveller needs in 2023

The Big Tour Study | 2

We understand that our travellers are constantly evolving and seeking new experiences. As a business that takes great pride in truly understanding our consumers, we have undertaken an extensive Big Tour Study.

This comprehensive study is brimming with invaluable insights about our customers, their travel aspirations, and the planning process. We sincerely hope that you derive as much pleasure from reading it as we did from putting it together.

Above all, our aim is for you to uncover intriguing truths that will contribute to the growth of your TTC Tour Brands’ revenue.

Happy reading,

The TTC Tour Brands Team

CONTENTS Sample & Methodology

4​

Demographic Snapshot

5-9​

Demographic Differences 10-12​ The Top Truths 13-32​ 3 | The Big Tour Study

SAMPLE & METHODOLOGY n = 2,796 tourers across Australia and New Zealand​

Responses collected from Luxury Gold, Insight Vacations, Trafalgar, Costsaver and Contiki website prospects and past customers​

5-minute online survey​

Questionnaire coverage included touring behaviours, future intentions, preferences and profiling questions

The Big Tour Study | 4

DEMOGRAPHIC SNAPSHOT 5 | The Big Tour Study

GENDER

32%

67%

male

1%

female

prefer not to say

LOCATION

NSW

34%

Auckland

30%

VIC

28%

Wellington

13%

QLD

20%

Canterbury

13%

SA

7%

Bay of Plenty

12%

WA

7%

Waikato

9%

ACT

3%

Other North Island

15%

TAS

1%

Other South Island

8%

NT

<1%

A1. How old are you? A2. Are you? A3. Where do you live? A4. Thanks for that. Which region do you live in? Total ANZ Sample n=2,976

The Big Tour Study | 6

AGE

MARITAL STATUS 41% 31%

17%

3% <30

2%

Separated or divorced

11%

Single, never married

10%

Widowed

8%

Living with significant other

7%

5%

30-39 40-49 50-59 60-69

58%

Married

Prefer not to say

70+

3%

LIVING ARRANGEMENT Living with spouse / partner but children have moved out

38%

Living with spouse / partner and children

22%

Living alone

21%

Living with adult children

5%

Living with roommate(s)

2%

Living with your / your partner’s extended family

1%

Other

3%

Prefer not to say

7%

HOUSEHOLD INCOME 35%

11%

Up to $49,999

14%

$50,000$74,999

13%

$75,000$99,999

13%

$100,000$149,999

8% $150,000$199,999

5% $200,000 or more

Prefer not to say

A5. What is your current work status? C1. Which of the following best describes your current circumstances? C2.

Which of the following best describes your living arrangement? C3. What is your average annual household income before tax? Total ANZ Sample n=2,976.

7 | The Big Tour Study

OCCUPATION 51%

24% 11%

Retired

Full-time

7%

Part-time

Business owner / Self-employed

3%

1%

Casual

Home duties

WORKING STYLE

22%

49%

10%

Hybrid

Office / Onsite

Remote

ANNUAL LEAVE (those in workforce) 25%

6+ weeks / unlimited Six weeks

9%

Five weeks

10%

Four weeks

49%

Three weeks

4%

Two weeks

2%

One week or less

1%

C4. Which of the following best describes your current working arrangement? C5. How much annual leave / vacation allowance do you get per year? Base: Those in the workforce n=1,338.

The Big Tour Study | 8

LAST TOUR 39%

32%

10%

9%

5%

In the last 12 months

1-2 years ago

3-4 years ago

5-6 years ago

More than 6 years ago

NEXT TOUR 28%

25%

23%

10%

3%

In the next month

1% In the next 2-3 months

In the next 4-6 months

In the next 7-12 months

In the next 1-2 years

More than 2 years from now

39%

Have a guided tour booked for travel within the next 1-2 years

A6. When did you last go on a tour? A7. When are you next intending to go on a guided tour – either within the country you live in or abroad? Total ANZ Sample n=2,796. A8. Do you have any guided tours booked for travel within the next 1-2 years? Base: Those intending to go on a tour in the next 1-2 years n=2,721.

9 | The Big Tour Study

DEMOGRAPHIC DIFFERENCES The Big Tour Study | 10

UNDER 35’s

APPEALING TO THE NEEDS OF UNDER 35’s Younger tourers (aged under 35) are more likely to be looking to tour to meet new people & make friends (57%) or go off the beaten track (61%), but without breaking the bank. They’re most interested in tours at the Value tier e.g. 3-4 star hotels as well as some inclusions to maximise their budget. The key barriers for this segment are not wanting to be put on a tight schedule (43%) or concern around the amount of time spent on a coach (35%).

The key moments sought by under 35s are consistent with tourers overall; to tick off a new country (75%), new culture and experiences (70%), or tick items off the bucket list (65%). While under 35’s can be swayed by the social aspect of touring, agents can’t forget to talk about these main reasons to go on a tour to resonate!

Location is the most important factor when choosing a tour (27%), with Europe being considered by 84% of under 35’s. Asia (42%) and Africa / Middle East (32%) are also on their minds, with 2.4 regions being considered on average, and 6.3 countries / locations considered within that.

Under 35’s have the smallest tour budget of $5,205 on average, and most (48%) are considering 8-14 day tours, given they are more likely to be in full-time work.

They are most likely to be solo travellers (37%) but many are still travelling with a friend (20%) or their partner (17%).

The internet plays a key role in the decisions and behaviours of under 35’s; social media is the greatest source of influence at 65%, closely followed by online searches at 63%. Tour operator and agent websites are the preferred way to book tours.

AGENTS SHOULD TALK ABOUT:

Value Tours 11 | The Big Tour Study

Budget tours

New Countries

New Cultures

Meeting People

Agents should profile Contiki as it specialises in social travel for the youth sector and also Costsaver as offers the ultimate independent unpackaged tour giving hassle free holidays.

Solo Options

Europe

MultiCountry

Unique/off the beaten track

The Big Tour Study | 12

OVER 55’s

HOW AGENTS CAN WIN WITH THE 55+’s Those aged 55+ are by far the largest group of tourers, and to them, tours are seen as the best option for ease & value. Tours take the hassle out of planning (77%), they see tour organisers as the experts (65%), but they also offer good value for money (61%). Barriers to address with this group are around the stresses of travel e.g. uncertainty due to COVID (43%), the hassle of packing and unpacking (31%) and political unrest (27%).

The 55+’s are considering a range of tour tiers; with Value Tours (56%) (e.g. 3-4 star hotels with some inclusions) are most popular, this age group is significantly more likely than younger tourers to consider Premium Tours (51%) (e.g. 4-5 star hotel stays with many inclusions) or Specialist Tours (47%). Budget Tours are less considered (14%), indicating this age group is interested in having the inclusions to make their trip easier.

Traditional channels play a key role in the decisions and behaviours of 55+’s; they’re more likely to be using travel brochures (62%), visiting a travel agency (50%) or phoning a travel agent (17%).

59% plan to tour with their partner, far more than other generations, while 22% are considering solo travel. 55+’s are considering the longest tour durations, with 40% considering 15-21 day tours, and 17% considering 22+ day tours. They’re considering 6.1 locations on average, with Europe as their preferred region. This group has the largest travel budget, at $10,410 on average.

AGENTS SHOULD TALK ABOUT:

Value Tours 13 | The Big Tour Study

Premium Tours

Specialist Tours

Stress Free

Touring Experts

Agents should pair Insight Vacations, Trafalgar and Luxury Gold with their more mature travellers. Offering more inclusions and one-of-a-kind experiences, these brands will take care of your customers with a service oriented end-to-end travel experience.

Value for Money

Inclusions

Personal Agent Support

MultiCountry

Leisurely Pace The Big Tour Study | 14

THE TOP TRUTHS 15 | The Big Tour Study

TRUTH 1

TOUR TRAVELLERS IN 2024 ARE LOOKING TO SPEND MORE Prospective travellers with a higher combined household income are looking at spending more on Premium and High-end tours.

% Interest in Premium Tours

By Household income

% Interest in High End Tours

By Household income

62% 54% 37%

18% 13% 6%

Household income: $150k+

$75k-$150k+

<$75k

THE SOLVE Travel agents can upsell their clients onto high end tour brand tours such as Insight Vacations and Luxury Gold so that they can have the security of a tour but with smaller group sizes* and exclusive experiences. High-end touring is also not only for the 50+ clientele as Luxury Gold appeals to the 30s and 40s demographic with its unique and bespoke experiences and product included.

B19. Which of the following types of tour would be most appealing for your next tour? Please select all that apply. Total ANZ Sample n=2,976. Premium tour defined as many inclusions, 4-5 star hotels, High end defined as premium inclusions, all 5-star hotels. *Luxury Gold average group size is 16 (max 24) and Insight Vacations average group size is 29 (max 40) on classic groups and max 24 on small group departures.

The Big Tour Study | 16

TRUTH 2

THE NEED FOR MORE CHOICE After a long hiatus from travel, travellers want to have a wider range of travel and tours to pick from.

NUMBER OF TOUR TYPES CONSIDERED: ALL TOURERS 1

44%

2-4

46%

5+

10%

<35s 20%

35-54

55+’s

31%

48%

50% 30%

53% 17%

45% 7%

AVERAGE NUMBER CONSIDERED: ALL TOURERS

<35s

35-54

55+’s

2.2

3.5

2.8

2.1

THE SOLVE Travellers have confirmed that when planning the next holiday, they want to do more and conduct different and diverse tours. With TTC Tour Brands this is made seamless with opportunity to do back-to-back tours with one or a combination of our brands, giving the chance to experience different ways of travel and unique activities.

A9. Which of the following types of guided tours are you considering / have booked for your next trip? Please select all that apply. Total ANZ Sample n=2,976

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TRUTH 3

TOURERS ARE LESS CONCERNED ABOUT COST OF LIVING, STILL WANT TO GO ON HOLIDAY Travel is deemed a necessity rather than a luxury with the majority of tourers.

8%

Only 8% of tourers feel that they can’t afford a holiday due to the increased cost of living

THE SOLVE Despite what’s in market/media, tourers are ready to travel. Travel agents could focus on the value benefits of a tour with their customers and the inclusions the tour gives them to highlight that they will not get stumped with additional high costs when they are on their holiday or any currency exchange increases.

B19. Which of the following types of tour would be most appealing for your next tour? Please select all that apply. Total ANZ Sample n=2,976. Premium tour defined as many inclusions, 4-5 star hotels, High end defined as premium inclusions, all 5-star hotels.

The Big Tour Study | 18

TRUTH 4

TOUR INTENDERS CHOOSE US FOR A HASSLE-FREE, EXPERT TRAVEL EXPERIENCE Never before has touring been such a powerful customer proposition & been more relevant in a world where travellers are looking for additional support.

Avoids the hassle of organising my own holiday

77%

Tour organisers are the experts

64%

Can budget effectively (e.g. everything included upfront)

61%

Tours offer good value for money

57%

Tours are a great way to meet new people

48%

Tour operators are trustworthy

39%

Tours inspire me to try something new

36%

You can find a tour to suit everyone Tours make family holidays easy

28% 12%

THE SOLVE We have a style of travel for every taste, pace and place. If you have someone looking for a hyper-local exclusive experience, book them in on a Luxury Gold tour through Italy, or for a client who might want more adventure we have amazing trips in Argentina, Peru and Bolivia across many of our brands. Our portfolio can provide every traveller with the style of trip they would like, with accom, transport, experiences and local guides all taken care of in the price.

B1. Which of the following are the main benefits of going on a tour? Please select all that apply. Total ANZ Sample n=2,976

19 | The Big Tour Study

TRUTH 5

MORE PEOPLE ARE TRAVELLING TOGETHER TO MAKE NEW CONNECTIONS It’s not only solo travellers who are seeking new connections on tours – we are also seeing more couples looking for social travel whilst touring.

43% 27%

43%

of solo travellers hope to meet new people

27%

of couples hope to meet new people

THE SOLVE TTC Tour Brands are inherently a social product. Whether your clients are travelling on their own or with family and friends, one of the most popular yet understated aspects that is a by-product of touring is the inspiring people met along the way and lifelong friendships created. A group tour is the ultimate facilitator of friendships, and our holidays attract people from all over the world who are looking to travel with like-minded explorers.

B3. For your next tour, which of the following would you be looking for? Please select all that apply. Total ANZ Sample n=2,976

The Big Tour Study | 20

TRUTH 6

THE BIG ICONS REMAIN BIG Whilst travel is about discovering new places, the bucket list destinations and sights are top priority to visit.

88% 88% of tourers prioritise sightseeing / bucket list tours

THE SOLVE TTC Tour Brands make sure your clients see all the bucket list items (after all, the icons are iconic for a reason) – often with priority entry and VIP experiences.

However, TTC Tour Brands also reveal the local secrets of each destination with unique included and optional experiences, and also give your clients the time to uncover its gems at their own pace. Each brand has its own version, from Trafalgar “Be My Guest” experiences to Luxury Gold “Beyond the Velvet Rope”.

A9. Which of the following types of guided tours are you considering / have booked for your next trip? Please select all that apply. Total ANZ Sample n=2,976

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TRUTH 7

ONLY 23% OF TOUR INTENDERS WORRY ABOUT GROUP SIZE Contrary to popular belief, size doesn’t matter.

TOUR BARRIERS:

23%

dislike travel with large groups

42%

33% 28%

27%

25%

23% 20%

18% 13% 10%

8%

6% 6% 5% 2% 2% 2% 2% 1% 1% 0%

THE SOLVE Travellers are no longer concerned about how many people they will travel with while on tour. The desire to make new friendships and share new experiences with others is more important that the group size. And for the few that still have some concerns, TTC Tour Brands can also offer smaller groups sizes on Contiki, Insight Vacations and Luxury Gold tours.

The Big Tour Study | 22

TRUTH 8

SPECIALIST TOURS ARE POPULAR We are seeing a growing demand for tours focusing on specialist themes or appealing to certain groups of people.

Value

57%

Premium

50%

Specialist tour

47%

Flexible

32%

Budget

16%

High end Women’s only travel Youth

12% 6% 2%

Specialist tour (e.g. with a company that specialises in certain regions / destinations), Budget (e.g. essential inclusions, 3 star hotels), Value (e.g. many inclusions, 3-4 star hotels), Premium (e.g. many inclusions, 4-5 star hotels), High end (e.g. premium inclusions, all 5 star hotels), Youth (e.g. social travel for 18-35s), Women’s only travel, Flexible (e.g. part organised, part self-guided).

THE SOLVE TTC Tour Brands offer specialist experience group tours to see interesting events happening across the world, or to travel with like-minded people, like our Trafalgar family only tours. We also have a dedicated Groups department, TTC Groups, where travel agents can block allocated space on a scheduled departure, or create a completely customised itinerary using our on-ground operators and hotel partners.

B19. Which of the following types of tour would be most appealing for your next tour? Please select all that apply.

Total ANZ Sample n=2,976

23 | The Big Tour Study

TRUTH 9

LEAN INTO OUR RISK-FREE DEPOSIT Tourers would prefer to pay a deposit to reserve their trip, then pay the rest later.

LONG TERM BOOKERS: 38% would book a tour 6 months before travel or sooner

SHORT TERM BOOKERS: 48%

31%

62% would book a tour at least 7 months in advance

14% 6% 1% A month in advance or less

0% 2-3 months in advance

4-6 months in advance

82% of long-term bookers would prefer to pay a deposit to reserve, then pay the rest later

7-12 months in advance

1-2 years in advance

More than 2 years in advance

79% of short-term bookers would prefer to pay a deposit to reserve, then pay the rest later

THE SOLVE Both short-term bookers and long-term bookers confirmed they want the peace of mind of paying a small deposit first and make final payment later.

Agents can secure their clients spot on their next tour with TTC Tour Brands with our risk-free deposit.

B8. How far in advance would you book a tour? B9. And what would be your preferred payment option? Total ANZ Sample n=2,976

The Big Tour Study | 24

TRUTH 10

TOURS GIVE PEOPLE PEACE OF MIND Over half of prospective travellers feel more secure exploring new areas with a tour.

54% 54% of tourers are looking to explore places they normally wouldn’t explore on their own – i.e. off the beaten track

THE SOLVE With TTC Tour Brands, travellers will have the peace of mind that all logistical aspects of their tour are taken care of. They will be escorted by an experienced Travel Director that knows all the ins and outs of the area ensuring your clients are looked after in all aspects.

B3. For your next tour, which of the following would you be looking for? Please select all that apply. Total ANZ Sample n=2,976

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Tours for any and everyone

1 | The Big Tour Study