The Actuarial Pulse
A Traveller’s Snapshot
The profile of survey respondents was a key driver for the responses
of the survey. All age brackets are represented, with the greatest
numbers of respondents in the 25-29 and 40-49 ranges. There were
also more male respondents (69%) than females (31%). Throughout
the following analysis, the respondent demographics were used to
form a snapshot of how the responses vary based on age and gender.
What would you like to know? If you have a questioN
you would like to put to the membership, email it to
[email protected]
Report generated on 17 October 2013, 274 responses
Q1: Do you plan on travelling this December?
Profile of survey respondents
Gender
Age
Under 25
25 - 29
30 - 34
35 - 39
40 - 49
50 - 59
Over 60
Total
18
Male
(No.)
13
34
30
19
42
33
21
Female
(No.)
4
20
12
18
20
5
3
Total
(No.)
17
54
42
37
62
38
24
6
20
15
13
23
14
9
192
82
274
100
Actuaries November 2013
%
Choice
No
No
Where
Count
Staying home
Outside Australia
Within Australia
114
59
92
Yes
Yes
Yes
Overall, a large proportion of survey respondents indicated that they
planned to stay at home over the December holiday period (43%),
while 35% planned to travel locally and 22% overseas. Of those who
intended to travel overseas, a significant proportion were older than 35,
which may be reflective of a number of the key factors explored in later
questions, such as financial circumstances, reasons for being able to
and not being able to travel and concerns regarding travelling overseas.
Q2: What is the most common type of leave that
you have taken to go on a holiday in the past
– Annual Leave, Long service leave, Purchased
leave, Study leave or Other?
As expected, the vast majority of respondents (over 90%) use annual
leave to go on a holiday, in comparison to purchased leave. There
were several respondents who stated that they would split annual
leave and leave without pay or take unpaid leave. Some respondents
mentioned that they had retired, and in effect, life has become a
holiday!
Q3: What has been your main motivation
for travelling in the past? (e.g. fire-sales,
exchange rates, work, family etc.)?
We categorised the responses into culture, relaxation, adventure,
physical and other.
© James A. Harris–Shutterstock.com
A
s the countdown to the end of the year begins, I’m sure you
would agree, the flashback to Chevy Chase’s family vacation
spurs a wonderful reminder that the holiday season is
about to swing into action, bringing with it the opportunity
to travel. This month’s Pulse survey gives you the chance to show off
your Platinum frequent flyer cards (we’ll also accept Gold) as it looks
into the travelling habits of the readership.
It was taken for granted that almost all members would belong
to three types of communities: family (irrespective of family shape);
the actuarial profession (irrespective of member status); and current
employer (except perhaps for retired members and sole traders).
Hence, these links were not explored.
There were 274 respondents and their composition by age and
gender are shown in the following data. These results are similar
to most other Pulse surveys and were used to investigate potential
correlations in the results.
The Actuarial Pulse is an anonymous, web-based survey of Institute members, run on a monthly basis,
giving members an opportunity to express their opinions on a mixture of serious and not-so-serious issues.
months. From the survey results, there was a clear link between the
motivation for travel and the time spent planning. Those who were
motivated by adventure spent, on average, less time planning than
those motivated by relaxation (one week to three months and three
to six months respectively). This may be associated with the sense of
adventure which most likely reflected the respondents’ willingness to
embrace unexpected changes to their itinerary. It does not come as
a surprise that the respondent who travelled to Antarctica spent six
months to a year planning.
Movaonfor
fortravel
travel
motivation
70%
60%
50%
40%
30%
20%
10%
0%
Culture
Relaxaon
Adventure
Physical
Lucy Jing
[email protected]
Gautham Suresh
[email protected]
Other
Q5: On average, whilst on non-work related
travel, which of these descriptions do you
believe best describes your ability to stick to
the planned travel budget?
Ability to stick to budget?
%
All the time
23
Sometimes
37
Never
4
Don’t budget
36
It was pleasing to see that the majority of respondents were
driven by the need to seek ‘relaxation’ when travelling, especially
in a world where technology has made it possible to work on the
commute to the office, at home, and even on holidays (we hope not)!
Interestingly, the respondents in the younger age brackets (69% of
the responses categorised as cultural motivations) were more likely
to have cultural motivations to travel compared to those in the older
age brackets who had significantly stronger physical and adventure
motivations to travel. This suggested that older respondents (those
aged over 40) were less likely to travel to a destination to learn
about the culture and language, and more likely to be driven by
pursuits of exploration. Younger respondents were most likely
influenced by interests from university and the fact that they have
previously had fewer opportunities to appreciate cultural differences
between destinations. Other common motivations for travel were:
• special occasions, such as attending sporting events;
• conferences or a holiday tagged onto the end of an overseas
business trip;
• family bribery or to ‘get away from the family’;
• shopping; and
• travel deals.
The majority of the respondents were ‘sometimes’ (37%) able to
meet their planned budget. However, there was a surprisingly high
number (36%) of respondents who did not budget at all. We hope
‘running out of money’ was listed as one of their major concerns!
Only a small number of respondents were never able to ‘stick’ to
budget, of whom the average age was higher than 35. Perhaps
the older respondents were less concerned about the implications
of ‘blowing the budget’ compared to the younger respondents,
who may have had greater financial constraints. On average, these
respondents had a shorter planning time (one week to three months)
compared to those who were always able to stick to budget (three
to six months). Overall, the female respondents were more likely
to ‘stick’ to budget than their male counterparts, of whom 37%
confessed that they didn’t budget.
Q4: On average, how long does it take you to plan
a holiday?
Q6: What has been your main source of
information when planning a holiday?
Average planning period
No.
%
Main source of information
No.
%
< one week
59
26
Internet
186
73
one week to three months
119
53
Friends
20
8
three to six months
28
12
TripAdvisor
19
7
six months to a year
16
7
Lonely Planet Guides
13
5
’On the fly’
3
1
Travel Agent
9
4
Travel brochures
6
2
Other
3
1
The majority of respondents were not impulsive travellers, with
the average planning time being between one week and three
November 2013 Actuaries
19
The Actuarial Pulse continued
There was a heavy reliance on technology, rather than more
traditional sources, when planning a holiday across all age brackets.
24/7 access to the internet and dedicated smartphone apps have
provided convenience above and beyond the benefits of popping into
a travel agent in your lunch hour. Some respondents cited that travel
books, such as Lonely Planet guides, and first hand experiences from
locals or friends were their top source of information – nothing like
hearing it straight from the ’horse’s mouth’. Perhaps it’s a sign of a
generation gap, as these respondents were mostly in the older age
groups (35 and older). Other sources relied upon by respondents
were council and i-sites (which we would definitely recommend if
travelling locally) and travel magazines (in a foreign language!). We
wonder whether the reliance on technology diminishes after the
holiday has started?
Q7: Which of these continents have you visited
the most whilst travelling whilst on holidays
in the past?
Continent
Europe
Asia
Australia
North America
Africa
South America
Antarctica
No.
79
73
53
23
6
2
1
and culture with holidaying in Asia, whereas Europe offered more
opportunity for sightseeing, natural wonders and an appreciation of
cultural differences and history. Holidaying in Australia commonly
offered the respondents the opportunity to immerse themselves in
the natural environment and vast landscapes.
Q9: Whilst on a holiday (overseas or interstate),
if you were to be given an extra $500 on
top of your planned budget, how would you
spend it?
The purpose of this question was to understand the value of money to
different travellers whilst on a holiday. The responses were varied, with
several respondents indicating they would ‘put it in the bank’. Despite
there being a couple of respondents mentioning that the sum was ‘not
enough’, the general consensus was to use the money to enhance their
experience through additional luxuries rather than additional activities
at their destinations. Nevertheless, some of the best uses were:
• adventurous activities, e.g. bungee jumping or flying over a volcano;
• indulging in an expensive wine;
• investigating a wider range of local beers;
• fancy meals; and
•shopping.
Our proximity to Asia (for those members in Australia), along with
the affordability of travelling to Asia as proven by the Big Mac Index,
has attracted the younger age groups (71% of those which selected
Asia), in comparison to those in the older age brackets (older than
35) who tended to favour Europe (81% of the respondents who
selected Europe).
The results also suggested that there was a potential link
between destination and time required to plan the holiday.
Respondents who travelled to Asia the most in the past tended to
require less planning time compared to respondents who travelled to
Europe. It was also noted that those respondents who did not plan
their holidays and travelled ‘on the fly’ were adventure-driven in their
motivation and had travelled mainly to Asia.
Q8: What do you find the most enjoyable aspect
of being on a holiday (e.g. cultural experience,
food, sightseeing, interaction with locals)?
There were a wide range of responses for this question, which
ranged from personal journeys of enlightenment, to isolation from
technology or even the satisfaction of keeping the family ‘smiling’.
Understandably, the results suggested that there was a relationship
between the motivation to travel and the respondent’s satisfaction
from the holiday. For example, those who were motivated by
relaxation whilst travelling commonly responded that enjoyable
aspects of travel included ‘not having to work’, ‘time away from
domestic chores’ and even ‘no time sheets’!
Respondents who were motivated to travel by their family
valued the opportunity to spend time with the children and cultural
experiences – such as the interaction with the locals and the food.
Geographically, respondents associated the enjoyment of food
20 Actuaries November 2013
Q10: Do you enjoy travelling alone or with
others and why?
Travelling solo appears to be increasing in popularity in light of
the generational shift in travellers as well as with the increased
accessibility of travel. Given recent events such as that highlighted
by the media of overseas travellers in India, the prospect of travelling
alone may become more daunting depending on the region you
travel in and the safety concerns that may arise with the ‘adventure’
for travelling.
Only a small number of respondents preferred to travel alone,
with one respondent mentioning that they had no strong preference
and were open to both. The general view was that travelling alone
provided freedom and flexibility. 70% of those who preferred to
travel alone were older than 35.
There was no specific gender bias for this question with both
male and female respondents equally preferring to travel with others.
Q11: What do you believe is the ideal size of a
travelling party and why?
Of those who prefer to travel with others, 45% ideally travelled
with their partner, 37% with family, 16% with friends and 2% in a
tour group. Other travelling companions mentioned by respondents
included their pets or a group with a common interest (e.g. The
Barmy Army).
The responses were mixed on the ideal size of a travelling party.
Ultimately, it was a contest between the increased politics that came
with each additional member; an odd number to ensure a fair voting
process; transportation size; and the occasion. Overall, it appeared
that there was a preference towards a party of two or four.
Q12: What has been your biggest concern on a
holiday and why?
Concern
%
Theft
Other
Transportation breakdown
Language barriers
Lost luggage
Terrorist attack
32
27
16
13
10
3
© Neale Cousland–SHUTTERSTOCK.COM
A significant number of respondents were most concerned about theft
whilst travelling, especially in Asia, due to language barriers. Those
who have travelled mainly to Europe in the past were concerned about
lost luggage and health issues. Those who have travelled to Africa
cited language and sickness as their major concerns, whilst those who
travelled extensively in Australia were apprehensive of terrorism. Other
concerns listed by the respondents included:
• finding toilets;
• getting ripped off by tuk tuk drivers;
• gissing flights;
• geeping the kids entertained;
• safety of family members;
• mistakes in the itinerary;
• finding vegetarian food outlets; and
• running out of money!
Many of the concerns listed were driven by:
• past experiences;
• existing medical conditions;
• travelling with items, such as musical instruments, that are not
covered by standard insurance policies; and
• possible disruptions to already made plans.
Q13: Do you purchase travel insurance?
Yes 89%
No 11%
The extensive list of concerns was supported by the large number of
respondents who had previously purchased travel insurance. Those
who did not purchase travel insurance did not have major concerns
when travelling and were motivated by having a relaxing holiday,
usually within Australia.
Q14: What do you believe have been the major
drivers for the increased popularity of
overseas and interstate travel over the last
few years?
Short term arrivals into and departures from Australia have increased
by over 60% over the past decade, with the greatest increase
occurring in the last three years. This trend was also observed
globally, with the largest growth in the travel sector experienced in
the Asia-Pacific region. This question aimed to gather respondents’
views on which key factors have influenced the travel industry in the
past few years. There was a general consensus that the increased
popularity of overseas travel has been due to:
• general hunger for diversity and increased awareness of other
cultures. Potentially, this is being driven by some extent by social
media and the subsequent ‘envy’ factor;
• increased prevalence of budget travel options;
• the increased acceptance of a global society;
• greater affordability due to favourable exchange rate movements;
and
• accessibility of information about destinations due to
technological advancements such as mobile applications.
Furthermore, respondents believed that interstate travel has
grown primarily due to the increased access to budget options
and aggressive marketing campaigns driven by tough competition
amongst travel providers.
Q15: If you could choose any destination today
(forget about budget) and leave tomorrow,
where would you go and why?
The responses provided formed an alphabetic map of the world,
which was great to see! The responses included Antarctica, due to
its beauty; Africa, due to its ‘life changing’ potential; Bora Bora, due
to the inability to actually afford to travel there in reality; Europe
for its culture; the Maldives for relaxation; Uluru, to climb ‘whilst it’s
still allowed’; North America for its similar culture (really?); South
America; and even Zanzibar.
Conclusion
As actuaries, we are generally lucky enough to be able to afford our
curiosity of the world. We have a desire to get out and explore or
relax, happily leaving behind the stresses of work and study (and
sometimes family). We have a few thrill-seekers, a few adventurous
types and a few nature-lovers amongst us, who will keep our postholiday season lunch room chit chats nicely flavoured.
And on that note, we wish you a merry and safe holiday season!
Sometimes these concerns added to the thrill of travel and the
adventure.
November 2013 Actuaries
21