WYSE Brexit Survey - WYSE Travel Confederation › wp-content › uploads › 2016 › 07 › ... · • Renewed interest in study/work/travel in the USA from European countries

WYSE Travel Confederation Brexit Survey

June 2016

http://www.wysetc.org/

WYSE Brexit Survey © WYSE Travel Confederation, 2016

Outbound youth travel from the UK

The UK is an important youth travel source market and Europe is an important destination for youth travellers from the UK with over 60% of the market.

The WYSE Brexit survey found that Western Europe was the most important destination market (33%) for companies supplying outbound travel services from the UK. This was followed by North America (19%). This underlines the concerns expressed by respondents of the WYSE Brexit survey about the potential negative effects of the UK’s departure from the European Union.



Western Europe 33%

North America 19%

Eastern Europe 15%

Central & South America

12%

Asia 10%

Oceania 10%

Middle East 1%

OUTBOUND DESTINATIONS FROM THE UK (ALL RESPONDENTS)





Estimates based on WYSE Travel Confederation’s New Horizons III Survey indicate that youth travellers from the UK aged 25 or under made 10.4 million trips abroad in 2015, and travellers under the age of 35 accounted for 18.4 million outbound trips.

The average youth traveller from the UK went for 43 days on their last main trip and spent EUR 2,100.

Youth travellers from the UK are most likely to be travelling for leisure, with holidays accounting for 55% of all trips. However study, work experience and language learning are also significant travel segments.



Africa 5%

Asia 12%

Western Europe 52%

Eastern Europe 10%

North America 13%

South America 4%

Oceania 4%

DESTINATIONS OF UK YOUTH TRAVELLERS

© WYSE Travel Confederation, New Horizons III

Holiday 54%

Study 17%

Work experience 15%

Language learning

10% Volunteering

3%

Au Pair 1%

TRIP PURPOSE (MULTIPLE RESPONSES POSSIBLE)

© WYSE Travel Confederation, New Horizons III




Brexit business outlook for youth travel

Companies sending travellers to the UK or receiving UK travellers abroad were very pessimistic about the potential effect that Brexit could have on their business.

For inbound travel to the UK, the expected drop in volume for the next year was19% for sending companies and 18% for receiving companies.

For those dealing with UK outbound business, the expected fall was just over 12% for sending companies and 12% for receiving businesses.

It seems that the anticipated effect of Brexit on volume for inbound travel to the UK is predicted to be worse than for outbound travel from the UK.

Not surprisingly the effects of Brexit were seen as being more dramatic for respondents located in the EU.




When asked about the effect of Brexit on business prospects, respondents were fairly pessimistic, with 45% saying business prospects would be worse. Just over 26% thought it would make no difference, and 20% did not know. Of those expressing an opinion, therefore, over half thought Brexit would make things worse.

The overall assessment of EU respondents was more pessimistic compared to non-EU respondents.



11%

34%

26%

7%

2%

20%

Much worse Worse Equal Better Much better Don't know

THINKING ABOUT YOUR BUSINESS WITHIN THE CONTEXT OF THE UK LEAVING THE EUROPEAN UNION, WHAT ARE THE OVERALL PROSPECTS FOR YOUR BUSINESS? (ALL RESPONDENTS)




18%

35%

26%

5%

1%

16%

2%

28% 29%

8%

4%

28%

Much worse Worse Equal Better Much better Don't know

THINKING ABOUT YOUR BUSINESS WITHIN THE CONTEXT OF THE UK LEAVING THE EUROPEAN UNION, WHAT ARE THE OVERALL PROSPECTS FOR YOUR BUSINESS? (EU VS NON EU)

EU Non EU




-19% -18%

-12% -12%

Send inbound Receive inbound Send outbound Receive outbound

EXPECTED INCREASE OR DECREASE IN VOLUME OVER THE NEXT YEAR (ALL RESPONDENTS)




-33%

-23% -20%

-18%

6%

-1%

24%

-3%

Sendersinbound

Receiversinbound

Sendersoutbound

Receiversoutbound

EXPECTED INCREASE OR DECREASE IN VOLUME OVER THE NEXT YEAR (EU VS OTHER REGIONS)

EU Other regions





When the expectations for inbound and outbound businesses are combined, clear differences emerge per youth travel sector.

Those expecting the biggest hit are au pair and internship/work experience businesses that need to deal with visas. Educational programmes also think they will suffer considerable decline.

Transport operators expect an upturn as a result of Brexit.



12%

-9%

-10%

-12%

-15%

-15%

-17%

-17%

-21%

-24%

-24%

Transport

Activities/Tours

Accommodation

Gap year

Volunteer travel

Education

Language programmes

Attractions

Camp programmes

Internship/ Work experience

Au pair

EXPECTED INCREASE OR DECREASE IN BUSINESS VOLUME OVER THE NEXT YEAR (SENDERS AND RECEIVERS)




Brexit business concerns for youth travel

The main immediate concerns for respondents overall were economic uncertainty, exchange rates and visa and immigration rules. For respondents outside the EU, there was more concern about the effects on employment and pricing.

The main concerns for the longer term were largely similar to those for the short term and there were no significant differences between EU member states and other respondents.



IMMEDIATE CONCERNS

FOR BUSINESS (ALL RESPONDENTS)

Factor Rank

Economic uncertainty 1

Exchange rates 2

Visa and immigration regulations 3

Political uncertainty 4

Pricing 5

Employment 6

Marketing 7

Placement availability 8

Other 9

IMMEDIATE CONCERNS

FOR BUSINESS (NON EU RESPONDENTS)

Factor Rank


Exchange rates 2

Employment 3

Pricing 4




Marketing 8

Other 9

LONG TERM CONCERNS

FOR BUSINESS (ALL RESPONDENTS)

Factor Rank



Exchange rates 3


Employment 5

Pricing 6

Marketing 7


Other 9

Brexit business concerns for youth travel



The bright side of Brexit?

Some respondents see potentially positive effects of Brexit:

• On the short term, it will be cheaper to visit the UK.

• Alternative EFL destinations, such as the USA, Canada, Malta and Ireland, could benefit.

• Renewed interest in study/work/travel in the USA from European countries.

• Stricter visa regulations could increase the value of agency services. Au pair businesses

see this as potentially reducing direct/internet bookings.



Methodology notes and respondent profile

The WYSE Brexit survey generated a total of 459 responses between June 24 - 30, the period immediately after the referendum result was announced on the morning of June 24, 2016.

Responses were received from 70 different countries, with 18% of respondents coming from the UK. Other countries that contributed 5% or more of the respondents were the USA, Spain and Germany.

Over 58% of responses came from current EU Member States (including the UK). If the UK is excluded then just under half of the remaining respondents are located in the EU.

The accommodation sector contributed the greatest number of responses, followed by language programmes. There were also a large proportion of respondents linked to education, who may have been concerned about the effect of Brexit on educational opportunities.



18%

8%

6%

6%

4%

4%

3%

3%

3%

UK

USA

Spain

Germany

France

South Africa

Australia

Ireland

Canada

MAIN RESPONDENT ORIGIN COUNTRIES

Western Europe 52%

Eastern Europe 13% North America

11%

Latin America 8%

Asia 5%

Oceania 4%

Africa 7%

RESPONDENTS BY WORLD REGION

Respondent profile



Respondent profile

37%

30%

30%

21%

19%

17%

12%

9%

9%

7%

5%

4%

3%

8%

Accommodation

Language programmes

Education

Activities/Tours

Work & travel

Internship/Work experience

Volunteer travel

Camp programmes

Au pair

Gap year

Transport

Attractions

Service provider (IT, insurance)

Other

YOUTH TRAVEL SECTOR OF RESPONDENTS (MULTIPLE RESPONSES POSSIBLE)



Respondent profile

Suppliers of inbound travel to the UK accounted for 39% of respondents. The majority of these are involved in sending only.

Operators providing outbound travel from the UK made up 29% of the respondents. Most of these receive UK travellers.

For those suppling inbound travel to the UK, around 40% of their clients come from Europe, with North America as the next largest market (16%).

For operators based in the EU (including the UK), the proportion of European clients rises to almost 60%.



21%

11% 8%

Send to the UK Receive in the UK Send and receive

INBOUND OPERATORS TO THE UK

3%

19%

6%

Send from the UK Receive from the UK Send and receive

OUTBOUND OPERATORS FROM THE UK

Respondent profile



Europe 59%

North America

10%

Asia 9%

Central & South

America 8%

Middle East 7%

Oceania 5%

Africa 2%

WHERE DO THE TRAVELLERS YOU SEND TO AND/OR RECEIVE IN THE UK COME FROM? (EU RESPONDENTS)

Europe 40%

North America

16%

Central & South

America 12%

Asia 9%

Africa 8%

Oceania 8%

Middle East 7%

WHERE DO THE TRAVELLERS YOU SEND TO AND/OR RECEIVE IN THE UK COME FROM? (ALL RESPONDENTS)

Respondent profile


http://www.wystc.org/

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WYSE Brexit Survey - WYSE Travel Confederation › wp-content › uploads › 2016 › 07 › ... · • Renewed interest in study/work/travel in the USA from European countries