Hispanic Travel Trends. Discover Their Behavior

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Della Jennings
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1 Hispanic Travel Trends Discover Their Behavior 2014

2 ❶ ❷ Hispanic Market Survey on Travel Habits & Attitudes How often do travel? Where are they traveling? Who do they travel with? How much do they spend on vacations? Do they use travel professionals? What types of vacations would they like to take? How do their traveling habits differ from non-? 2

3 are expected to number 66 million and make up 19% of the population by the year U.S. Population by Race/thnicity (Projected) African American Asian Hispanic Other White 12% 12% 12% 13% 9% 4% 5% 6% 4% 13% 17% 3% 19% 3% 2% Hispanic Population: 52 million currently 66 million in % 69% 63% 60% Whites will become a minority by Today 2020 (Projection) Source: U.S. Census Bureau (2012 American Community Survey [ACS] 1-year estimate Census data Census data. Size of Asian Non-Hispanic not available for

On average, are younger and have larger households compared to Non-. Mean Age Mean Household Size 42.6 This translates into larger party sizes when traveling 33.2 36.1 27.7 2.7 3.1 3.5 2.

4 On average, are younger and have larger households compared to Non-. Mean Age Mean Household Size 42.6 This translates into larger party sizes when traveling African American Asian Hispanic White African American Asian Hispanic White Source: U.S. Census Bureau (2012 American Community Survey [ACS] 1-year estimate Census data Census data. Size of Asian Non-Hispanic not available for

At $1.2 trillion, U.S. Hispanic purchasing power today is larger than the economies of all but 13 countries - Jeff Humphreys, director of the Selig Center.

5 At $1.2 trillion, U.S. Hispanic purchasing power today is larger than the economies of all but 13 countries - Jeff Humphreys, director of the Selig Center. Hispanic Purchasing Power (In Billions) 1.2 Trillion Source: Selig Center for conomic Growth, University of Georgia, June

express more optimism about the U.S. economy compared to Non-.

. 41% 37% 38% 2012-13 2013-14 Greater optimism about the economy correlates with spending

about the same as last year worse than last year Not sure Prefer to not answer better than

6 express more optimism about the U.S. economy compared to Non-. Optimism About conomy I think the economy this coming year will be.. 41% 37% 38% Greater optimism about the economy correlates with spending 37% 38% 34% non- 25% 27% 28% 18% 14% 14% 9% 14% 12% 9% 2% 1% 1% 0% better than last year about the same as last year worse than last year Not sure Prefer to not answer better than 2013 about the same as 2013 worse than 2013 Not sure Prefer to not answer Source: ThinkNow Research Omnibus Study: February 2014 & February

7 Approximately 4-in-10 Hispanic households fall into either the Upscale or Affluent income groups. <$50k 59% Upscale ($50k-$99k) 28% Affluent ($100k+) 13% indicates statistically significant differences (95% confidence) Source: ThinkNow Research Omnibus Study: February-December

8 Hispanic Travel Survey Method Survey Dates Base Sizes Online survey via ThinkNow s National Omnibus Study Feb-Dec 14 (Collected over several waves) (n=2,021) Non- (n=1,224) Sampling Criteria Weighting: Self-identified as Hispanic origin or non-hispanic origin Age Weights applied with respect to gender, age and region for each sample to targets defined by the U.S. Census Bureau. 8

9 Most Common Activities and non- are not too far off in terms of the leisure activities they take part in. Activities in the Past 2 Years (D) Non- () D 69% 70% 66% 61% 51% 46% 43% 42% 42% 36% 34% 30% 31% 38% 25% D 36% Cruising equally likely among both groups 22% 23% 22% 19% 18% 12% Visiting family ntertainment Arts and culture Rest and relaxation Sports Adventure Nature- based experience History/ Heritage Culinary Cruising Faith-based Which of the following activities have you taken part in over the past 2 years? Base: All Respondents (n=417 and n=313 non-) Upper Case letters indicates statistically significant differences (95% confidence) 9

10 Activities Most Interested in Doing Taking a cruise is at the top of the list of activities that as well as non- would like to do in the next two years. Activities Would Like to do in Next 2 Years (D) Non- () 43% 38% 33% 33% 30% 29% 27% 26% 26% 23% 25% 22% 18% 18% 15% 17% 15% 12% 12% 13% 14% 12% Cruising Rest and relaxation Nature-based experience Adventure History/ Heritage Culinary Arts and culture ntertainment Sports Visiting family Faith-based Which of the following activities would you like to do in the next 2 years? Base: All Respondents (n=417 and n=313 non-) Upper Case letters indicates statistically significant differences (95% confidence) 10

11 Frequency of Vacations A The likelihood of taking vacations increases with increasing household income. Overall, and non- are equally as likely to take at least one vacation per year. Avg. Number of Trips Per Year Percent Taking 1+ Vacations per Year (D) Non- () (D) Non- () % 90% 80% 70% 60% 79% 79% 72% 65% 89% 88% 96% 96% % 40% 30% 20% % 0 Total <$50k Upscale ($50k-$99k) Affluent ($100k) 0% Total <$50k Upscale ($50k-$99k) Affluent ($100k) Q: How many vacations do you take per year? Base: All respondents (n=2,021 and n=1,224 non-) Upper Case letters indicates statistically significant differences (95% confidence) 11

12 Travel Companion are more likely to travel with others compared to non-. Who Likely to Travel With I travel alone 7% 14% D Family (Net) H: 88% NH: 81% Spouse or partner Children Parents Siblings Relatives/xtended family Grandparents 2% 1% 22% 17% 18% 14% 16% 14% 40% 52% 63% 61% Friends Church members Work/Business colleagues Classmates Neighbors Clubs/Associations/Affinity Groups 4% 2% 3% 3% 2% 1% 1% 1% 1% 1% 23% 29% (D) Non- () When you book a vacation, who of the following are most likely to join your trip? Base: All Respondents (n=417 and n=313 non-) Upper Case letters indicates statistically significant differences (95% confidence) 12

Travel Professionals are more likely to use a travel professional compared to Non-. The biggest reason for not using a travel professional is preference for online.

36% Have not time to travel/have not traveled Can`t afford a vacation/no money Haven`t had a need for a travel professional 19% 19% 17% 15% 14% D 24% Non- Travel professionals are more expensive 9%

13 Travel Professionals are more likely to use a travel professional compared to Non-. The biggest reason for not using a travel professional is preference for online. Booked a Trip Using Travel Professional in Past 2 Years Reasons for Not Using Travel Professional in Past 2 Years I book online/ make travel reservations by myself 35% 35% No 58% Yes 42% No 64% Yes 36% Have not time to travel/have not traveled Can`t afford a vacation/no money Haven`t had a need for a travel professional 19% 19% 17% 15% 14% D 24% Non- Travel professionals are more expensive 9% 8% I travel by car/i drive Don`t know enough about travel professionals 3% 2% 3% 1% (D) Non- () Upper Case letters indicates statistically significant differences (95% confidence) Have you booked a trip in the past 2 years using a travel professional (travel agent or tour operator)? Why haven't you booked a trip in the past 2 years using a travel professional (travel agent or tour operator)? Base: All Respondents (n=417 and n=313 non-); Haven t booked a trip using travel professional (n=231 and n=212 non-) 13

Most Important When Choosing Travel Professional For, having a travel professional who understands the needs of Hispanic travelers ranked highest in terms of importance when booking a vacation,

n/a 34% The pricing of vacations offered. 18% 21% The quality of vacations offered. Travel professional speaks Spanish.

14 Most Important When Choosing Travel Professional For, having a travel professional who understands the needs of Hispanic travelers ranked highest in terms of importance when booking a vacation, followed by price and quality of vacations. Criteria Ranked 1 st The travel professional understands the specific needs and interests of the Hispanic traveler. n/a 34% The pricing of vacations offered. 18% 21% The quality of vacations offered. Travel professional speaks Spanish. n/a 10% 13% 22% Types of vacations offered is less important to than NH, as is quality/reputation of travel professional. The types of vacations offered. 10% 34% D The quality and reputation of the travel professional/organization. 5% 21% D Incentives and loyalty programs offered. 4% 2% The travel professional s website and brochures are bi-lingual (Spanish/nglish). n/a 5% (D) Non- () When using a travel professional to arrange your vacation, what are the most important criteria in choosing a travel professional? Base: Have booked a trip using a travel professional (n=186 and n=101 non-) Upper Case letters indicates statistically significant differences (95% confidence) 14

15 Amount Spent on Domestic Vacations On average, spend about $2,400 on a vacation traveling within the U.S. spend more than non- across all income brackets, in part because they are more likely to fly and have larger families on average. Average Spending per Vacation in U.S. $4,000 (D) Non- () $3,643 $3,500 $3,000 $2,500 $2,359 A $2,623 $2,798 $2,000 $2,006 $1,819 $1,981 $1,500 $1,517 $1,000 $500 $0 Total <$50k Upscale ($50K-$99K) Affluent (100K+) Q: How much do you typically spend for a vacation in the United States? Base: Take vacations (drive or fly) domestically (n=1,482 and n=914 non-) Upper Case letters indicates statistically significant differences (95% confidence) 15

16 Domestic Vacations by Car Among travelers, the likelihood of taking a vacation by driving domestically does not vary by income among, but with income levels under $100,000 are less likely to take driving vacations than non-. Take Vacations in U.S. by Car Among Travelers (D) Non- () 100% 90% 80% 70% 74% D 83% 72% D 88% D 83% 76% 77% 75% 60% 50% 40% 30% 20% 10% 0% Total <$50k Upscale ($50k-$99k) Affluent ($100k+) Q: When you vacation, do you usually travel domestically or internationally? A: Domestically (U.S.) - Drive Base: Respondents who take at least 1 vacation per year (n=1,629 and n=943 non-) Upper Case letters indicates statistically significant differences (95% confidence) 16

Domestic Destinations by Car In general, are more likely to take domestic vacations by car to California, Nevada and Texas compared to non-. Both are equally like to drive to Florida.

17 Domestic Destinations by Car In general, are more likely to take domestic vacations by car to California, Nevada and Texas compared to non-. Both are equally like to drive to Florida. Non- NY 10% 8% CA 30% 16% NV 14% 7% AZ 6% 4% CO 6% 4% TX 13% 6% FL 26% 27% Top 7 destinations for shown Q: Where did you drive for your last 2 domestic vacations? Base: Respondents who travel domestically by driving (n=1,201 and n=791 non-) Upper Case letters indicates statistically significant differences (95% confidence) 17

Domestic Vacations by Air Upscale and affluent Hispanic travelers are more likely than non- to take domestic vacations by flying somewhere. Take Vacations in U.S.

18 Domestic Vacations by Air Upscale and affluent Hispanic travelers are more likely than non- to take domestic vacations by flying somewhere. Take Vacations in U.S. by Air Among Travelers 90% (D) Non- () 80% 77% 70% 60% 50% 40% 30% 47% 41% 34% 30% 55% 41% 56% 20% 10% 0% Total <$50k Upscale ($50k-$99k) Affluent ($100k+) Q: When you vacation, do you usually travel domestically or internationally? A: Domestically (U.S.) - Fly Base: Respondents who take at least 1 vacation per year (n=1,629 and n=943 non-) Upper Case letters indicates statistically significant differences (95% confidence) 18

19 International Vacations Overall, are significantly more likely than non- to take vacations outside of the U.S., although there is less of a difference among affluent travelers. Take Vacations Internationally Among Travelers 50% 45% (D) Non- () 44% 40% 35% 30% 31% 27% 31% 35% 25% 20% 15% 18% 15% 10% 8% 5% 0% Total <$50k Upscale ($50k-$99k) Affluent ($100k+) Q: When you vacation, do you usually travel domestically or internationally? A: Internationally Base: Respondents who take at least 1 vacation per year (n=1,629 and n=943 non-) Upper Case letters indicates statistically significant differences (95% confidence) 19

20 International Destinations The Caribbean, Mexico and South American countries are the top international destinations for Hispanic travelers. International Destinations in Past 2 Years (D) Caribbean - any country Mexico South America - any country Canada Central America - any country ngland France Italy Australia Spain Other 4% 3% 4% 7% 7% 6% 11% 10% 10% 6% 9% 5% 3% 5% 2% Non- () 13% 13% 19% 18% 17% D 22% 29% D HHI <$50k Upscale ($50k-$99k) Affluent ($100k+) Non- Non- Non- (F) (G) (H) (I) (J) (K) 24% H 16% 14% 14% 19% 41% J 21% G 3% 17% - 12% 7% 11% J 5% 16% IJ 3% 4% 2% 6% 18% 14% F 19% 12% 17% 9% 6% 10% - 13% 6% 4% 17% 8% 16% 16% FH 10% 2% 5% 10% F 11% 16% FK 4% 3% 3% 9% F 17% 9% 8% 3% 6% 5% 3% 11% FK 2% 4% - 4% 8% 12% FH - 14% 16% 12% 20% 15% 24% Q: What were the last 2 vacation destinations you visited outside the United States? Base: Take vacations internationally (n=513 and n=138 non-) Upper Case letters indicates statistically significant differences (95% confidence) 20

21 Amount Spent on International Vacations On average, spend nearly $5,700 on a vacation outside of the U.S., rising to over $8,700 among affluent. Overall, tend to spend less that non- on international vacations as non- are more likely to travel farther (i.e. urope). Average Spending per International Vacation $10,000 $9,000 AB (D) Non- () $8,754 $8,000 $7,000 $6,000 $5,693 D $6,485 D $5,889 $6,035 $5,916 $6,989 $5,000 $4,000 $4,196 $3,000 $2,000 $1,000 $0 Total <$50k Upscale ($50k-$99k) Affluent ($100k+) Upper Case letters indicates statistically significant differences (95% confidence) Q: How much do you typically spend for a vacation internationally? Base: Take vacations internationally (n=513 and n=138 non-) 21

22 Hotels are more likely than non- to report staying at several hotel chains, including mbassy Suites, La Quinta and Motel 6. Hotels Stayed at in Past Year (D) Non- () Holiday Inn Best Western Hilton Comfort Inn Marriott Days Inn mbassy Suites Hampton Inn La Quinta Motel 6 Hyatt Super 8 Motel Sheraton Other 7% 6% 5% 8% 6% 8% 7% 7% 6% 23% 21% 20% 20% 17% 12% 16% 18% 16% 14% 14% 12% 11% 11% 11% 12% 11% 25% 26% Q: Which of the following hotels have you stayed at over the past year? Base: All respondents (n=2,021 and n=1,224 non-) Upper Case letters indicates statistically significant differences (95% confidence) 22

23 Sample Profile

24 Sample Profile Non- Lower Income (HHI <$50k) Upscale ($50k-$99k) Affluent ($100k+) Base (n=) Gender: Male 51% 49% 47% 58% 54% Female 49% 51% 53% 42% 46% Age: 18 to 24 20% 15% 26% 15% 9% 25 to 34 27% 20% 22% 34% 25% 35 to 44 24% 20% 22% 25% 30% 45 to 54 18% 23% 18% 16% 26% 55 to 64 11% 21% 12% 10% 10% Mean age Census Region: Northeast 14% 19% 14% 15% 15% Midwest 9% 24% 6% 12% 11% South 36% 37% 42% 34% 24% West 40% 20% 38% 40% 50% 24

25 Sample Profile Non- Lower Income (HHI <$50k) Upscale ($50k-$99k) Affluent ($100k+) Base (n=) ducation: Less than High School graduate 6% 3% 8% 2% 1% High School Graduate/GD 22% 23% 31% 13% 7% Some college/aa/technical 39% 36% 42% 39% 28% College graduate or more 32% 38% 19% 46% 64% Household Income: Less than $50,000 57% 45% 100% - - $50,000 to less than $100,000 26% 29% - 100% - $100,000 or more 12% 22% % Prefer not to state 4% 4% Mean ($000) $60 $79 $26 $69 $200 Marital Status: Married or living with partner 59% 57% 50% 71% 80% Single, never married 31% 31% 37% 23% 15% Separated/divorced/widowed 10% 12% 13% 6% 5% Prefer not to answer 1% 1% 1% - - Have Children <18 in HH 54% 41% 48% 61% 66% 25

26 Sample Profile Non- Lower Income (HHI <$50k) Upscale ($50k-$99k) Affluent ($100k+) Base (n=) Language Spoken at Home: Spanish only 10% - 11% 9% 10% Spanish mostly 23% - 23% 28% 26% Spanish and nglish equally 29% - 29% 29% 28% nglish mostly 20% - 20% 19% 17% nglish only 18% - 18% 14% 18% Acculturation Less acculturated 13% - 15% 12% 9% Bicultural 60% - 57% 63% 65% More acculturated 27% - 28% 25% 26% Born in U.S. 73% 92% 68% 78% 77% Born outside of U.S. 27% 8% 32% 22% 23% Country of Origin Mexican/Mexican-American 57% - 56% 65% 62% Puerto Rican 15% - 18% 12% 9% South American 12% - 11% 12% 16% Cuban 8% - 9% 7% 10% Central American 8% - 8% 7% 4% Dominican 3% - 4% 3% 1% 26

27 Key Insights Upscale and affluent Hispanic consumers are just as likely as their non-hispanic counterparts to take vacations. However, they are significantly more likely to fly somewhere domestically and/or travel internationally for their vacations. As expected, likelihood of traveling increases with household income. Regardless of income, spend more money on average than non- on domestic vacations, due at least in part to the fact that they are more likely to fly and because they have larger families. are more likely to use a travel professional to book a trip compared to non-. Having a travel professional who understands the needs of Hispanic travelers is very important more so even than price and quality of vacations. 27

28 Key Insights are more likely to travel with others (mainly family) than non-. The top international destinations for Hispanic travelers are Mexico and countries in the Caribbean as well as South America. Affluent are more likely than lower income to travel to western urope (ngland, France, Spain) and Australia. Affluent report spending over $8,700 on average for an international vacation, compared to about $7,000 spent by affluent non-. Favorite hotel chains used by affluent include Hilton, Marriott and Best Western. 28

Contact Info Main Phone: 877-200-2710 Mario X. Carrasco, M.A.

29 Contact Info Main Phone: Mario X. Carrasco, M.A. Managing Partner Roy duardo Kokoyachuk, MBA Managing Partner

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