TTC Tour Brands' Big Tour Study

THE BIG TOUR STUDY

Australia & New Zealand tour traveller needs in 2023

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

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

DEMOGRAPHIC SNAPSHOT

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

Living with spouse / partner but children have moved out Living with spouse / partner and children

Living alone

Living with adult children

Living with roommate(s)

Living with your / your partner’s extended family

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.

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.

LAST TOUR

NEXT TOUR

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.

DEMOGRAPHIC DIFFERENCES

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:

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.

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:

Premium Tours Specialist Tours Stress Free Value Tours 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.

THE TOP TRUTHS

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.

THE SOLVE

Household income:

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 NEED FOR MORE CHOICE

After a long hiatus from travel, travellers want to have a wider range of travel and tours to pick from.

AVERAGE NUMBER CONSIDERED:

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

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.

THE SOLVE

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

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.

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

Tour organisers are the experts Can budget effectively (e.g. everything included upfront)

Tours offer good value for money

Tours are a great way to meet new people

Tour operators are trustworthy

Tours inspire me to try something new

You can find a tour to suit everyone

Tours make family holidays easy

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

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% of solo travellers hope to meet new people

THE SOLVE

27% of couples hope to meet new people

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 ICONS REMAIN BIG

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

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

88% of tourers prioritise sightseeing / bucket list tours

88%

ONLY 23% OF TOUR INTENDERS WORRY ABOUT GROUP SIZE

Contrary to popular belief, size doesn’t matter.

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.

SPECIALIST TOURS ARE POPULAR

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

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

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: SHORT TERM BOOKERS:

38% would book a tour 6 months before travel or sooner

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

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

THE SOLVE

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

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

TOURS GIVE PEOPLE PEACE

OF MIND

Over half of prospective travellers feel more secure exploring new areas with a tour.

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

Tours for any and everyone