The United Nations World Tourism Organisation (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 $1,245 billion in 2014, an increase of 3.7 per cent.The global business travel market generates sales worth hundreds of billion US 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 travellers spend up to $611 per day.According to a study of 240,000 unique travellers by RocketFuel, luxury travellers make up to 18 purchases prior to a trip, compared to four for non-luxury travellers, and luxury travellers are 206 per cent more likely to make a retail purchase at a luxury retailer than non-luxury travellers.So when it comes to spending their hard earned money, what are travellers most likely to spend on before they go on a trip? According to an Expedia report, new clothes are the most common purchase when travellers are getting 'vacation ready' at 43 per cent. Once at their destination, travellers are equally motivated to make purchases for products and services. A Ulysses Mercer analysis revealed that a $300 average spend per person on third party ancillaries consists of the following:• Destination food & drinks $114;• Transport at destination $62;• Destination shopping $41;• Travel accessories & care $28;• Destination entertainment $15;• Transport to & from airport $12; and• Other $28.
The travel industry has a huge opportunity to use data to personalise and improve the travel experience by offering products and not just charging fees. By offering carefully curated and relevant 'long tail' ancillaries (or products and services not traditionally offered by travel companies), which consumers want and need, travel companies and advertisers have opened up previously unrealized revenue streams. This, combined with a strong customer service message post-booking through to the return from travel, adds value to every step of their customers’ journey and makes customers feel appreciated.