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Youth Travel Market & Hostels. Regional Tourism Leaders Forum June 20, 2012 By Shelbey Sy. Youth Travel. Independent Backpackers. Student Travel. ESL Study. Working Holidaymakers. Youth Travel. Youth Travel is over 50 years old
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Youth Travel Market & Hostels Regional Tourism Leaders Forum June 20, 2012 By Shelbey Sy
Youth Travel Independent Backpackers Student Travel ESL Study Working Holidaymakers
Youth Travel • Youth Travel is over 50 years old • Estimated 160 million international tourist arrivals a year (20% of total) • Worth $165 Billion (18% of worldwide tourism receipts) • Lacks recognition by tourism bodies around the world - including Canada. • Australia, New Zealand & South Africa are exceptions
Youth Travel Today • Increasingly challenging to define. • No longer just about demographics: • Age: 18 to 30 • Origin: Western Europe • No to low income earners • Now more a state of mind • Adventurous • Young-at-heart
Motivations for Youth Travel • See the world • Understand other cultures • Adventure • See the sights and try new experiences • Working holiday • Study abroad • Language travel • Volunteer abroad
Characteristics of Youth Travel • Young travellers travel for longer periods of time than the average traveller. • Spend more than other types of travellers. • Are pioneers discovering new destinations • Are considered more dispersed travellers • Travel beyond gateways and major resorts
Economic Impact of Youth Travel • Youth Travel is High Value • $165 Billion in 2010 (acc to UNWTO) • Youth travellers may be money poor but time rich, hence spend longer in the destination than other tourists. (50 days vs 6 days) • Youth trip average spend: US$2,600 (2010) • Int’l tourist average spend: US$1,250 (2010) • Youth trip to AUS avg spend: AU$21,228 (2009) • Int’l tourist avg spend in AUS: AU$3,313 (2009) • Higher lifetime value – often return to places they visited in their youth later in life.
Economic Impact of Youth Travel • Youth Markets are Resilient • When the going gets tough, the young keep travelling. • 9/11, SARS and crisis of 2008 • GAP Travel and other purpose related trips are on the rise in Europe. • Youth travellers often attract others to the destination (working holidaymakers & students)
Growth in Youth Travel • Destinations experiencing highest growth • South-East Asia • South America • China & India • Youth market accounts for 300 million overnight stays annually. Expected to rise to 500 million by 2020.
Youth Travel in Canada • Youth travel market is highly competitive. • New, sexier destinations are getting greater attention. • Lonely Planet’s Best Countries to Visit • Uganda, Myanmar, Laos, Jordan, Brazil for example. • High cost of travel in Canada • Canadian currency • Air / Train travel (Lack of low-cost carriers like RyanAir or Tiger Airways)
MORE Challenges We Face • Lack of industry recognition makes promoting youth travel in Canada harder. • No usable market statistics • No marketing support • DMO forecasts and reports are harder to apply to our market. • Budgeting • Pricing strategy
What are Hostels? • Hostels, which primarily cater to young people, offer affordable accommodation in shared dorm or private rooms. • Offer a variety of common spaces, such as cook-it-yourself kitchens, lounges, TV/Movie rooms. • Organize activities and social events for guests. • The focus is on affordability and offering common social spaces and activities for guests to mingle and interact.
Hostelling International • Invented hostelling – in 1909 in Germany • Not-for-profit organization • The world’s largest budget accommodation network with over 4000 hostels in 90 countries. • Here in Canada, there are 60 HI hostels across the country and another 100 or so independent properties. • In Western Canada, HI has 30 hostels.
No Two Hostels are Alike • Located in urban centres, resort towns and remote, wilderness locations.
So Who Stays with us? • Average age: 27.8 years • Getting older • Young & the young at heart • Countries of origin • Majority still from the Western Hemisphere • North America, Australia, Japan & Western Europe • Eastern Europe & South America growing • Backpackers, working holidaymakers and groups • Very tech-savvy (~50% of guest books online)
THANK YOU! shelbey.sy@hihostels.ca