2016 AHLA Convention & Tradeshow April 18, 2016 Methodology - PowerPoint PPT Presentation

2016 AHLA Convention & Tradeshow April 18, 2016

Methodology  Surveyed 973 people about their leisure travel, 528 about their business travel and the whole sample (1,501) about opinions on current issues affecting travel in Canada.  Overall margin of error of +/-2.5%, at a 95% confidence interval.  Survey took place mid to end of January 2016. HAC Travel Survey 2016

Methodology Regional sample and margin of error:  Atlantic 112 +/- 9.3  Quebec 365 +/- 5.1  Ontario 575 +/- 4.1  Prairies 250 +/- 6.2  BC + Territories 199 +/- 6.9 HAC Travel Survey 2016

Travel Intentions: 2016 Projections HAC Travel Survey 2016

Leisure Travel Habits: 2015 vs. 2016 Compared with the travel for leisure you did in 2015, would you say that you will be doing more, the same or less in Canada in 2016? 13% 20% 25% More 22% 22% 23% 55% 59% 57% Same 61% 62% 59% 29% 15% 10% Less 11% 10% AB 2016 Can 2015 2014 2013 2012 12% HAC Travel Survey 2016

Influencers for Less Leisure Travel 45% Financial difficulties 36% 43% Cost of lodging 48% 39% 2016 Cost of dining out 45% AB 29% Energy costs 24% 29% Cost of air fare 27% 21% Job uncertainty 28% HAC Travel Survey 2016

Influencers for More Leisure Travel 24% Cheaper air fare 26% 20% Discount lodging 29% 18% Canadian $ 13% 2016 9% AB Weekend pkg 10% 8% Draw for free weekend 12% 7% Luxury room at standard rate 5% 5% Free tickets 3% HAC Travel Survey 2016

Business Travel in 2016 24% 14% 8% 11% Less 10% 14% 11% 15% 57% 61% 61% 57% Same 58% 58% 48% 50% 16% 19% 20% 24% More 24% AB 2016 2015 2014 22% 28% 26% 2013 2012 2011 2010 HAC Travel Survey 2016

Influencers for Less Business Travel 21% 15% Cost of hotels 32% 19% Co in financial difficulty 9% 11% 16% 22% 21% Tele/video conference 30% 14% 23% 26% 22% Worried about economy AB 2016 32% 24% 2015 Cost of air fare 16% 2014 20% 34% 2013 HAC Travel Survey 2016

Influencers for Less Business Travel 0% 4% Travel Outside Cda & 5% US 8% 5% Budget cutbacks 9% AB 14% 2016 11% 2015 3% 2014 7% Retirement 2013 20% 10% Price gas/energy 15% 20% 18% HAC Travel Survey 2016

Influencers for More Business Travel 14% Canadian $ 33% 10% Cost of air fare 25% 24% Price of gas 22% AB 10% Travel less to US 2016 19% Confidence in Cdn 22% 12% economy 11% Company growth 11% 0% Job requirement 10% Less video 5% 7% conferences HAC Travel Survey 2016

Business : Has Tele/Video Conference Caused Cancellation of Travel? 8% 19% 18% in last 3 months 19% 25% 18% 10% 16% 16% in last 6 months 15% 22% 19% 12% 19% 25% in last year 25% 29% 27% AB 2016 2015 2014 2013 2012 HAC Travel Survey 2016

Economic Impacts on Business Travel What kind of influence have the following had on travelling less for business? (5= great deal of influence; 1=no influence at all) Air fare AB 33% 24% 16% 27% Air fare 23% 27% 12% 9% 28% Canadian Economy… 18% 42% 13% 16% 11% Canadian Economy 25% 23% 21% 8% 23% U.S. Economy AB 53% 29% 13% 5% U.S. Economy 20% 25% 14% 32% 8% World Economy AB 53% 29% 10% 8% 18% 20% 9% World Economy 20% 32% 5 4 3 2 1 HAC Travel Survey 2016

Travel Intentions: Number of Leisure Trips in 2016 8% 16% 5 or more 16% 12% 59% 47% 2 -4 46% 48% AB 19% 2016 34% 1 2015 27% 28% 2014 9% 4% DK 10% 10% HAC Travel Survey 2016

Leisure : Final Destination by Province/Region 34% 34% 31% 28% 28% 20% 21% 21% 20% 20% 20% 17% 19% 19% 25% 17% 15% 15% 14% 13% 11% 10% 10% 9% 8% 5% 5% 5% 4% 4% BC Alberta MB / SK Ontario Quebec Atlantic 2016 2015 2014 2013 2012 HAC Travel Survey 2016

Greatest Impact on More Travel Leisure • Cheaper air fare • Discount Accommodations • Canadian dollar Business • Discount Accommodations • Cheaper air fare • Luxury room at a standard rate HAC Travel Survey 2016

Summary: 2016 Projections  Both leisure and business travel projected to be down in 2016  Financial difficulties and economic worries, particularly in AB  Low Canadian dollar  First time since survey was launched is this cited as an influence on both leisure and business travel  Some leisure travelers who previously travelled to the United States may now vacation in Canada  May result in less business travel outside Canada  Video conferencing is down this year  Canadian economy is having the most influence on business travel, particularly with Alberta travelers  Leisure travel is down slightly in every province but Ontario and Atlantic region  All travelers looking for cheaper air fair and discount accommodations HAC Travel Survey 2016

RATES HAC Travel Survey 2016

Leisure : Accommodation Type – Travel Next Trip in 2016 30% 30% 30% 28% 28% 27% 22% 21% 20% 20% 19% 19% 18% 18% 16% 16% 15% 15% 13% 13% 6% 6% 4% 4% 2% Luxury Upscale Mid Mkt w Rest. Mid Mkt w/o Economy Rest. AB 2016 2015 2014 2013 HAC Travel Survey 2016

Leisure Accommodation Type - Travel Next Trip 2016 77% 77% 77% 78% 76% 15% 15% 14% 14% 12% 10% 9% 9% 8% 10% Type you usually More upscale than More downscale stay at usual than usual AB 2016 2015 2014 2013 HAC Travel Survey 2016

Business : Maximum Prepared to Pay/Night 36% 33% 31% 31% 30% 30% 28% 33% 29% 27% 26% 26% 22% 21% 19% 11% 11% 10% 9% 9% 8% 8% 7% 4% 2% Less than $100 to $125 $126 to $150 $151 to $200+ $100 >$200 AB 2016 2015 2014 2013 HAC Travel Survey 2016

Leisure: Better Deal- Booking Service or Hotel Directly? 3rd Party 62% 58% 60% 59% 55% Hotel 38% 42% Directly 40% 41% 45% AB 2016 2015 2014 2013 HAC Travel Survey 2016

Business : Better Deal-Booking Service or Hotel Directly ? 3rd Party 58% 64% 60% 60% 61% Hotel Directly 42% 36% 40% 40% 39% AB 2016 2015 2014 2013 HAC Travel Survey 2016

Summary: Rates  Midmarket with a restaurant is still the most popular accommodation for leisure travelers.  More upscale and luxury accommodations down slightly  The majority of business travellers expect to pay more than $125 per night but less than $200  Both leisure and business travelers said they could get a better rate from a third party booking service.  Leisure travelers in AB use 3 rd party booking services more than their business counterparts HAC Travel Survey 2016

Services HAC Travel Survey 2016

Brand vs. Location vs. Price All travellers were asked to rank the importance of brand, location and price  Nationally, 60% ranked PRICE first, up 8% over 2015  25-34 (70%)  Alberta (68%)  Nationally, 32% ranked LOCATION first, down 6% over 2015  55+ (40%)  Alberta (27%)  Nationally, 8% ranked BRAND first, down 2% over 2015  45-54 (11%)  Alberta (5%) HAC Travel Survey 2016

What Makes Travelers go Back to a Hotel? 29% State of Property 31% 23% Convenience 26% 20% Service 23% 9% Amenities 9% AB 10% Brand 2016 6% HAC Travel Survey 2016

Business : Making Reservations--Trends 70% 67% 67% 65% 62% 61% 20% 19% 16% 15% 15% 15% 5% 5% 5% 3% 3% 1% AB 2016 2015 2014 2013 2012 Phone Internet No Reservation HAC Travel Survey 2016

Leisure : Making Reservations--Trends 70% 65% 64% 62% 60% 59% 23% 22% 22% 21% 20% 18% 6% 4% 5% 5% 5% 3% AB 2016 2015 2014 2013 2012 Phone Internet No Reservation HAC Travel Survey 2016

Leisure : Third Party vs. Direct Booking  Best hotel rate: Can AB  Third party (Expedia, Travelocity) 58% 62%  Hotel directly 42% 38%  70% (Can) and 77% (AB) of 3 rd . party bookers would book with hotel if given free amenities (e.g. free Wi-Fi, keyless entry, etc.)  Those booking with hotel directly:  53% (Can) and 49% (AB) book via phone  47% (Can) and 51% (AB) via hotel website HAC Travel Survey 2016

Business : Third Party vs. Direct Booking  Best hotel rate: Can AB  Third party (Expedia, Travelocity) 64% 58%  Hotel directly 36% 42%  79% (Can) and 86% (AB) of 3 rd . party bookers would book directly with hotel if given free amenities (e.g. free Wi-Fi, keyless entry, etc.)  Those booking with hotel directly:  45% (Can) and 49% (AB) book via phone  55% (Can) and 51% (AB) via hotel website HAC Travel Survey 2016

Leisure : Importance of Hotel with Free Breakfast 84% 81% 81% 80% 78% 77% AB 2016 2015 2014 2013 2012 HAC Travel Survey 2016

Business : Importance of Hotel with Free Breakfast 78% 78% 77% 72% 69% 67% AB 2016 2015 2014 2013 2012 HAC Travel Survey 2016

Importance of Business Centre 44% 44% 43% 43% 41% 35% AB 2016 2015 2014 2013 2012 HAC Travel Survey 2016

Leisure : Importance of Amenities 37% 39% Packages 40% 35% 36% 49% 44% Upgrades 43% 41% 39% 49% 48% AB Pool 49% 2016 47% 46% 2015 2014 HAC Travel Survey 2016

Business : Importance of Amenities 59% 57% Upgrades 57% 48% 53% 36% 41% Pool 34% 31% 33% AB 2016 2015 2014 2013 HAC Travel Survey 2016