The United Nations World Tourism Organization (UNWTO) recently released data on the spending habits of tourists in 2014, which put $1.2 trillion back into the global economy an increase of $48 billion from the previous year. The same report revealed that receipts from international visitors spending on accommodation, food and drink, entertainment, shopping and other services and goods reached an estimated US$ 1,245 billion (euro 937 billion) in 2014, an increase of 3.7%.
The global business travel market generates sales worth hundreds of billion U.S. dollars every year and it includes both national and international travel, accommodation, additional transportation and many other amenities. A recent survey from Expert Market reveals business travelers spend up to$611 per day.
According to a study of 240,000 unique travelers by RocketFuel, luxury travelers make up to 18 purchases prior to a trip, compared to four for non-luxury travelers, and luxury travelers are 206% more likely to make a retail purchase at a luxury retailer than non-luxury travelers.
So when it comes to spending their hard earned money, what are travelers most likely to spend on before they go on a trip? According to an Expedia report, new clothes are the most common purchase when travelers are getting “vacation ready” at 43%. Other popular pre-trip expenses include:
- Haircut/style: 32%
- Phone package: 16%
- Waxing/hair removal: 14%
- Manicure/pedicure: 13%
- Dieting/weight management products/services: 10%
- Destination food & drinks – $114
- Transport at destination – $62
- Destination shopping – $41
- Travel accessories & care - $28
- Destination entertainment - $15
- Transport to & from airport – $12
- Other - $28
- Taxes: 41%
- Baggage fees: 36%
- Booking fees: 34%
- Seat selection fares: 27%
- Resort/hotel fees: 25%
- Tipping: 25%
- In-room WiFi: 23%
- Buying mobile phone package for out-of-network travel: 18%
- Travel/trip protection insurance: 15%
About the Author
Bojan Jokic has been a disruptive force in the travel technology industry since 1997. Fueled by his passion for innovation, Bojan went on to build a market first b2b travel booking engine for a travel management company at age 29. By 39, Bojan was instrumental in creating Europe's first travel apps available on TV. Over the years, he has been the driving force behind multiple e-commerce solutions that are generating profitable revenues with millions of customers. Bojan studied air travel and transportation engineering and holds an MBA. He currently resides in Switzerland and serves as CEO and co-founder of Epteca, an emerging technology company bringing unique 'smart selling' marketplace ecosystem capabilities to companies and brands worldwide.
About Epteca (www.epteca.com)
By collectively building a Marketplace Ecosystem that brings together travel companies, suppliers of goods and services and customers, Epteca’s innovative platform creates new revenue opportunities and enhances the customer experience in all the phases of their journey. Using profile data and predictive algorithms that match context and intent, Epteca can accurately anticipate not only what customers require, but also what they are likely to want, need or do during their trip. This allows for ‘smart selling and marketing’ that taps into key sales points at the time when purchases are most likely to occur, to dramatically increase profits and create a positive brand relationship. Epteca delivers the right offering, presented to the right customer, at the right place and the right time, to sell more stuff - guaranteed.
To learn more, schedule a demo, or get started with Epteca’s Marketplace Ecosystem, please visit http://www.epteca.com.
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