Expedia Holiday Spending Index: Indians Globally Most Excited to Spend Money on Vacation

New Delhi, India, June 22, 2014: Expedia.com, one of the world’s largest online travel agency, has launched the results of the 2014 Holiday spending Index, an analysis of preferences among travelers around the world for spending money for a vacation. The survey highlights the maturation of the Indian traveler who does not shy away from spending money for satisfying their wanderlust.

This online survey was conducted by Northstar, a globally integrated strategic insights consulting firm from March 11 to April 2, 2014 across North America, Europe, South America and Asia Pacific using the Kantar-owned GMI (Global Market Insite) and Lightspeed Research amalgamated group of panels. The study was conducted among 11,165 adults aged 18 years of age and older across 24 countries.

Marketing Head at Expedia India Manmeet Ahluwalia said, “Indian travellers are the most excited globally to spend on vacations and are becoming discerning in their choice of hotels and the services & amenities in their room. In fact, they are globally the second highest splurgers on hotel related spends (at 87%). We understand the needs of the Indian consumer and hence provide access to the world’s largest inventory of over 2,60,000 hotels from all regions and ranges, all at one place. Given the fact that Indians want to spend on travel, we offer great deals with upto 60% off on hotels across the globe, to help them plan the best within their budgets.”

“Indian travellers are also moving towards booking vacations from their mobile devices, mobile only deals are catalyzing the shift” Manmeet added.

DETAILED FINDINGS

Excited about spending on a vacation? Hell Yes!!

Globally, Indians feel most excited about spending money to go on a vacation at an avg of 52%, followed by Mexicans at 46% and Brazilians at 45%

South Koreans are most anxious about the thought of spending money to go on vacation (29%)

Spaniards (22%) and Italians (21%) are most reluctant in parting with their money while planning for a vacation

Savings or credit for vacation spends?

Indians are some of the most likely in the world to save for their vacations in advance. Mexicans (89%), Indians (85%), Malaysians (83%) and Thais (83%) are the most likely to save for their vacation in advance.

In fact, 63% of Indians say they save for their vacations at least 6 months in advance – 10% save for more than a year in advance, 21% save for a year, 32% save for 6 months.

By contrast, travelers from Japan (53%) and the Netherlands (55%) are least likely to save in advance for their vacations.

Dedicated vacation fund?

Indians are also some of the most likely to have a dedicated vacation fund. Thais (53%), Indians (41%) and French (38%) are the most likely to say they have a dedicated vacation fund, versus the global average at 28%

The Dutch (9%), Danish (16%) and Kiwis (18%) are the least likely to have a dedicated vacation fund

Globally highest in:

Saving for the complete vacation in advance- Dutch (87%), Swedish (78%) and French (77%)

25% saved in advance, 75% credit- Thais (26%), Indians (21%), Malaysians (19%)

50% saved in advance, 50% credit-South Koreans (30%), Americans (25%), Brazilians (23%)

75% saved in advance, 25% credit- Kiwis (22%), Indians (21%), Brazilians (21%), Mexicans (21%)

Completely on credit, paid after vacation- South Koreans (26%), Austrians (22%), Italians (18%)

Globally lowest in:

Saving for the complete vacation in advance- South Koreans (17%), Indians (28%) and Brazilians (29%)

25% saved in advance, 75% credit- Norwegians (4%), Swedish (4%), Dutch (5%)

50% saved in advance, 50% credit-Dutch (2%), Swedish (5%), Danish (7%), French (7%)

75% saved in advance, 25% credit- Dutch (1%), French (5%), Norwegians (7%), Swedish (7%)

Completely on credit, paid after vacation-French (3%), Danish (3%), Dutch (5%)

No vacation, because it’s costing a lot!? Maybe

Not taken a vacation because of the cost in the last 5 years

Global average- 50%

Yes! Brazilians (64%), Irish (64%), Thais (59%)

Nay! Japanese (75%), Dutch (63%), South Koreans (60%)

An average of 56% of Indians decided not to take a vacation in last 5 years because of the cost, with 32% saying cost has prevented them from taking a vacation in the last 2 years

For a vacation, is cost less of a factor this year than it was in past 5 years?

Yes! Thais (75%), Malaysians (57%), Indians (52%)

Nay! Dutch (82%), Swedish (76%), Irish (75%), Italians (75%)

I hate this travel fee!

Brazilians (60%), Mexicans (58%), French (52%), Italians (52%) are the most bother by vacation-related taxes

The Irish are the most bothered by baggage & booking fee (67% and 51% respectively)

Norwegians are the most annoyed by seat selection fares (46%)

Hong Kongers are the most displeased by resort / hotel fees (45%)

Kiwis are the most irritated by shelling out tips (43%)

Austrians are the most annoyed by having to pay for in-room wi-fi (40%)

Japanese are least bothered by vacation-related feels – most likely to say they don’t get annoyed by any vacation related fee (25%)

Indians are most annoyed by taxes (48%), followed by resort/hotel fees (34%), baggage fees (31%), having to buy a mobile phone package for out of network travel (28%), booking fees (27%), seat selection fares (27%), out-of-country medical insurance (27%, globally highest), travel/trip protection insurance (24%,globally highest), rental car insurance (23%, globally highest), in-room wi-fi (22%) and tipping (21%)

Most likely tippers…

Food servers- Mexicans (80%), Austrians (80%)

Hotel maid service- Austrians (61%), Germans (60%)

Hotel bellhop (if they assist with luggage) – Mexicans (75%)

Room service delivery- Mexicans (60%), Indians (60%)

Driver/Tour guide- Indians (51%), Hong Kongers (48%)

Hotel Concierge-Japanese (27%), Indians, Americans & Canadians (26%)

Airline Porter- Americans (25%)

No One!- Kiwis (58%), Australians (50%)

Will budget impact the style and choice of vacation? Well Yaa!

On a fixed budget, travellers globally expect ‘Beach Vacation’ to be most cost effective (40%). This expectation is highest among the Danish (55%) and lowest among the Japanese (14%).

Indians expect beach vacations to be most cost efficient (32%), followed by vacations centered around historical / cultural sight-seeing.

Globally, ‘Ski-vacations’ are expected to be least cost effective at 2%

On an unlimited budget, travellers globally expect ‘Cruises’ to be most luxurious (39%)

Indians are most likely to expect cruises to be most luxurious (33%), followed by beach vacations (19%)

Globally, vacations centered around adventure sports are expected to be least luxurious (4%)

For a week’s domestic vacation

When travelling in their own country, Norwegians expect to spend the most, with spending expectations averaging $1,256 US per person for transportation, accommodation, food & beverage and activities, this is followed by the Japanese ($1,054 US), Canadians ($937 US) and Australians ($904 US).

By contrast, 79% of Indians expect to spend $500 or less (per person) for a week’s vacation in their own country.

Travel budget split

Globally, the largest proportion of travellers’ budget goes to accommodation (24%), followed by flights (19%), food (18%), 8%, shopping (7%), tours (7%) entertainment (7%), local transportation (5%). Globally, travelers devote more of their travel budget to alcoholic beverages (5%) than they do rental cars! (3%).

Germans devote a higher proportion of their travel budget to accommodation (33%) than travelers from elsewhere in the world.

Irish and Kiwis devote a greater share of their travel budget to flights (24%) than travelers from other countries

Brazilians (22%), French, Spanish & Thais (all 3 at 21%) dedicate more of their travel budget to food than their global counterparts

Japanese (12%) & Singaporeans (11%) dedicate more of their travel budget to shopping & souvenirs than other travellers

Indians dedicate the largest share of their travel budget to flights (19%), followed by accommodation (16%) and food (14%). The least amount of their travel budget goes to alcoholic beverages (4%)

Oh My God! I want that deal!!!

To help save money when booking a vacation, globally, travellers are most likely to actively seek out flight deals (49%), seasonal sales (46%), Flight + Hotel packages (43%), all inclusive hotels (37%), hotels with meal plans (33%), Flash sales/last minute deals (27%), discounts on advance ticket purchases (24%), and hotels with Wi-fi included (21%).

Norwegians are the most likely to seek out flash sales/last minute deals (45%)

Mexicans are the most likely globally to seek out all-inclusive deals (61%) or hotels inclusive of meals (70%)

Indians are most likely to seek out flight deals (53%), package deals (48%) and all-inclusive packages (48%). They are most interest globally in advance ticket purchase discounts (42%) and mobile booking discounts (28%) than their global counterparts

Splurge fest while booking!

When booking a vacation, Indians are more likely than their global counterparts to splurge on a room with a view (47%), a hotel with room service/restaurant on premise (43%), a hotel with premium in-room facilities (25%), an airline that offers in-flight wi-fi (20%), a hotel with a fitness center (18%), a luxury car rental, (18%) and first class/business class airline seats (15%)

Globally, Hong Kongers (88%) and Indians (87%) splurge most on hotel related spends

Indians are also more likely than average to splurge on transportation related services (59%)

Japanese are the least splurging community, 42% don’t splurge on any of the above

We take pit stops for spending during a vacation…

Airport

Indians are more likely than their global counterparts to spend money at the airport – 81% are likely to buy food at an airport restaurant, 80% are likely to buy duty free goods, 65% are likely to buy sundries, 62% are likely to buy clothes, 57% are likely to buy magazines/books, 54% are likely to purchase airport wi-fi, 54% are likely to purchase electronics, 53% are likely to purchase luggage (53%), 47% are likely to purchase spa treatments.

Malaysians (71%), Thais (71%) and Malaysians are most likely to buy souvenirs will at the airport.

Norwegians are most likely to buy bottles of alcohol for later consumption (52%)

Flight

Indians again top the list in buying food (76%), purchasing goods from duty free magazine (58%), seat or cabin upgrades (46%), in-flight movies (38%) and in-flight wi-fi (42%)

Norwegians lead in purchasing alcoholic beverages (51%)

Americans are most likely to pay a fee to check their bags (53%)

Hotel

During their hotel stay, Indians are the most likely global travelers to pay for room service (79%), use of hotel dry cleaning services (65%), in-room wi-fi (52%)

Austrians express the greatest willingness to spend on hotel spa services (66%)

Mexicans express the greatest propensity to spend money on tipping the hotel staff (84%)

Brazilians express the most willingness to pay for room upgrades (56%) and mini-bar items (68%)

Clothes. Check. Hair cut. Check. Waxing. Check. Are we vacation ready? Oh Absolutely!

Brazilians are the most likely to buy new clothes (67%), get a haircut (55%) and get a manicure / pedicure(40%) in order to get vacation ready

Indians are the most likely to buy new clothes (66%), a phone package (55%), waxing/hair removal services (33%), dieting/weight management products/services (24%), fitness classes (21%), an tanning services (18%) to get vacation ready

On an average, Brazilians spend most to get vacation ready ~ USD 101 followed by Irish at USD 95 and Indians at USD 94

Insured while travelling?

Brits (72%) and Hong Kongers (71%) are strong believers that it is very important to buy travel insurance. In fact, 89% of Hong Kongers said they bought it on their last trip and 90% plan to buy it for their next trip

60% of Indians feel it is critical / very important to buy travel insurance, and 70% plan to buy it next time they travel

By contrast, only 35% or Americans feel travel insurance is critical / very important and only 35% plan to buy it during their next vacation

Survey Methodology

This study was conducted on behalf of Expedia by Northstar, a globally integrated strategic insights consulting firm. This survey was conducted online from March 11 to April 2, 2014 across North America, Europe, South America and Asia Pacific using the Kantar-owned GMI (Global Market Insite) and Lightspeed Research amalgamated group of panels. The study was conducted among 11,165 adults aged 18 years of age and older across 24 countries. Sampling quotas and weighting were used to ensure the sample is representative of each country’s population in terms of age and gender. Assuming a probability sample, the margin of error would be +/-0.9 percentage points, 19 times out of 20.