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TripAdvisor: 62% of hoteliers upbeat on profits in 2014

TripAdvisor has announced the results of the world’s largest accommodation and travellers’ survey – the TripBarometer by TripAdvisor.

The survey reveals the leading travel and hospitality industry trends, according to over 19,000 travellers and over 10,000 accommodation business owners around the world. TripAdvisor conducts this study amongst its users twice a year, and the results are analysed independently by research firm Edelman Berland.

“If the travel plans of Australians and travellers worldwide are a guide to the economic future, then 2015 looks like it could be a prosperous year for the international inbound tourism markets,” said Julio Bruno, Global VP of sales, TripAdvisor for business. 

“In 2014, travellers from every region worldwide plan to travel mostly within their home market. In 2015, travellers in almost all regions plan to spread their wings to international destinations. Australian hoteliers and the Australian tourism industry stand to be a big beneficiary because significantly more travellers from major regions plan to visit Australasia in 2015,” Mr Bruno said.

  • More than one-third of Australians (37%) plan on increasing their travel spend in 2014; 35% plan on spending the same; but 28% plan to spend less
  • 87% of Australians are willing to make sacrifices for holidays. The top 3 activities they are willing to sacrifice are nights out (57%), meals out (51%), and clothes etc. (42%).
  • 62% of Australian hoteliers are optimistic about profitability in 2014 (67% globally)
  • More travellers from Europe, North America and the Middle East plan to visit Australasia in 2015

Nearly two out of three (62%) Australian hoteliers are optimistic about profitability in 2014 (slightly less than 67% of hoteliers globally). They are more inclined to invest in small scale renovations (39%) and marketing (30%), and less inclined to open a new property (8%, against 17% globally). Fifty-seven percent of Australian hoteliers plan to raise room rates in 2014, a rise of 24% on hoteliers who did so in 2013.

Australian hoteliers are still seeing the biggest demand from intra-regional travel. However, 25% of hoteliers are reporting more guests from Asia.

Globally, hotel industry confidence is highest in the Americas, Asia and Africa:

Region Percentage of hoteliers worldwide who feel optimistic about making a profit in 2014
Central America 79%
North America 74%
Asia 74%
South America 72%
Middle East 72%
Africa 70%
Australasia 67%
Europe 56%

More than half of hoteliers worldwide (51%) have indicated that they will increase their room rates in 2014, citing increased overheads (57%) and staying in line with the competition (34%) as key reasons for the price hikes. Seventeen percent of global hoteliers plan to open a new property in 2014, mostly in Asia, Europe and South America.

Target Area Percentage of hoteliers worldwide spending increased revenue on particular target area
Small scale renovations 47%
Marketing spend 47%
Staff training 38%
Large scale renovations 27%
Hiring staff 22%
Back office 22%

2015 is the year for international travel – including to Australasia

Travellers from all markets plan to travel more within their own region in 2014. In 2015, however, more travellers worldwide plan to travel internationally – and Australasia is set to benefit. Travellers from the major markets of Europe, North America, and the Middle East all plan to visit Australasia in greater numbers in 2015.

Percentage of travellers planning to visit Australasia

Region of Origin 2014 2015 Trend
Africa 2% 5% ^
Asia 27% 22% V
Australasia 36% 27% V
Central America 2% 3% ^
Europe 18% 27% ^
Middle East 3% 5% ^
North America 10% 17% ^
South America 4% 5% ^

From an outward-bound perspective, Australasians plan to transfer their travel from Australasia and Asia to Europe in 2015. They plan to travel mostly to Europe (27%, up from 18% planning in 2014), within the Australasian region (27%, down from 36% in 2014), and Asia (22%, down from 27% in 2014).

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