StudentUniverse Skift Present: The State Of Student Travel

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StudentUniverse Skift Present:The State ofStudent TravelStudent travelers represent a key demographic for travelbrand growth, but only if brands commit to understandingthe evolving wants and needs of this primarily youth-drivensegment. In this report, we define the student traveler, frametheir in-destination desires, and break out key changes alreadyhappening industry-wide to address the revenue that travelverticals stand to mine within the student-travel space.If you have any questions about thereport, please IVERSE.COM

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Skift StudentUniverse: The State of Student TravelSKIFT REPORT 2014About usStudentUniverse is a tech company that empowers students and youth totravel. We deliver exclusive deals and experiences through our website andmobile apps to the fastest growing segment in travel. We offer discounted rateson flights, hotels, tours and more to students and youth. StudentUniverse is ona mission to make global experiences possible. We believe that travel is essential to a modern education and that students return enlightened and inspired.3

Skift StudentUniverse: The State of Student TravelSKIFT REPORT 2014Executive summaryThe student traveler represents fully one-fifth of all internationalarrivals in the travel industry, today. They command a market value ofsome 320 billion and they are willing to spend to create experiencesthat go far beyond the backpack-and-party crowd that some would assert to have once characterized educational journeys abroad.The student traveler is setting trends, prompting progressive airfarepackages, fresh insights into how alternative accommodations can bedesigned and made to function, and they are seeking innovation onthe part of the verticals that await them in-destination. Thestudent traveler wants to visit their target locations differently fromolder tourists — and they want to volunteer in-destination, and theywant to work there, too. Furthermore, when they return home, theyexpect — and are reaping — tangible personal and professional benefitsfrom their time abroad.Increasingly global, and deeply rooted in the Millennial generation,the student traveler has been recently bolstered by a significant newwave of Chinese youth joining their ranks — and China is proactivelypromoting itself as a destination for student travelers as well.Student travelers represent not only an opportunity to capture valuablerevenue in the present, they are also the future business travelers oftomorrow — and as such they stand to grow into travel budgets manytimes greater still. Furthermore, the student traveler, as a demographic,has proven highly effective at discovering, and making newly attractiveto others, numerous destinations that different tourists mightotherwise overlook.This Skift report considers all of these factors, and more, and itincludes key insights from StudentUniverse, a leader in thestudent-travel space.4

Skift StudentUniverse: The State of Student TravelSKIFT REPORT 2014Table of contentsExecutive Summary 4About SkiftIntroduction 6Framing (and re-framing) student travel 8Beyond backpacks and partiesStudy abroad: expanding spend, expanding demographicsGlobalization and the international student travelerThe role of mobile in student travelStudent travel: industry perspectives 13Airfares apart: student ratesStudent-travel accommodationsIn-destination: engaging the student travelerThe student traveler comes back:personal and professional benefits 19Insights and Strategies 20Lessons from the Edge: The Future of Student Travel 21About Skift 24Endnotes and Further Reading 255Skift is the largestindustry intelligence andmarketing platform intravel, providing news,information, data andservices to all sectorsof the world’s largestindustry.Based in New York City,Skift has deepexperience in identifyingand synthesizingexisting and emergingtrends, in its dailycoverage of the globaltravel industry, throughits Skift Trends Reportsand its data insight fromSkiftIQ competitiveintelligence service. Skiftis the business of travel.Visit skift.com for more.

Skift StudentUniverse: The State of Student TravelSKIFT REPORT 2014IntroductionPrague, CZSource:StudentUniverseStudent travelers are driving a market rife with returns for travelindustry verticals, but the rewards are within reach only if brandscommit to the opportunities the student traveler represents as heor she undertakes their journey. It is a journey that can include notonly tourism, but study, work, and volunteer efforts.Statistics help to illustrate the potential of the student traveler.For one, the demographic accounts for more than 20% of all international arrivals.1 At one-fifth the total travel volume in a given year,there is, in the student traveler, significant business to be courtedand captured — and revenue to be won.Still, the student traveler is at times misunderstood as a kind ofbackpack-and-party crowd. But that’s an old cliche and experts — aswell as students — say that it is increasingly being replaced by modern and better understandings of the intersection of educationaltravel and tourism.The college-based traveler is, in fact, a savvy and goal-orientedconsumer. Their average length of stay in a given destination is onthe increase, and what they spend, in-destination, is also on therise. Furthermore, the demographics of what we understand to bethe student traveler are changing. Once primarily considered to bethe post-high school and college-undergraduate age group — an6

Skift StudentUniverse: The State of Student TravelSKIFT REPORT 201418–24-year-old bracket — the concept of the student traveler is nolonger limited by that parameter. Both younger and older individualsmake up the range.STUDENT TRAVELERS:MARKET AND DEMOGRAPHICSSTUDENT TRAVELERS:COLLEGE MARKET SNAPSHOT (USA)Age group15-30 Percentage of collegestudents (male)40%Anticipatedarrivals(2020)300mPercentage of collegestudents (female)60%Anticipatedmarketvalue (2020)Number of public andprivate colleges4,100 320bNumber of collegestudents21m Percentageof studenttravelfunded byfamily36%Estimated discretionaryspend (collegestudents) 120b SOURCE: StudentUniverse: Proprietary Report: ‘Next: Worldwide leaderin youth/student travel’SOURCE: StudentUniverse: Proprietary Report:‘Next: Worldwide leader in youth/student travel’Key to reaching the student-travel consumer is a deeper look at whothey are, where they are going, and what they do in-destination.Also important is a lens onto the ways travel brands are evolving tomeet the student tourist’s wants and needs. As such, the spotlight ofthis report is on the student traveler. This is their story, and these arethe opportunities they are creating, industry-wide.7

Skift StudentUniverse: The State of Student TravelSKIFT REPORT 2014Framing and (re-framing)student travelMachu Picchu, PeruSource:StudentUniverseStudent travelers, circa 2014, are in-destina-would do well to pay attention to the op-tion for classroom experiences; they are cross-portunities illuminated by statements suching borders for language immersion; they areas Sarah’s.taking jobs and internships while abroad.“I really loved having a daily routine,” sheThe student traveler hails from all over thecontinued. “That moment when I startedworld — and is increasingly coming to therecognizing the people at my subway stop,market from Asia. He or she is also promi-or when the waiters of the pastelaria next tonently represented by the rise of the Millen-my university started to ask me ‘um sumonial demographic.laranja natural como sempre, menina?’ whenI came in, because they knew I loved theirAnd the student traveler is increasinglyfresh-pressed orange juice — those werepossessed of definite ideas about what theythe times I started realizing that Lisbon waswant from their trip experiences.my home. And that was the most beautifulfeeling of all.”Beyond backpacks and partiesIn scenarios much like this one, the stu“I wanted something real, somethingdent traveler is looking for a specific kindauthentic,” wrote Julika Sarah, a Germanof immersion — one that is about making aart historian and medievalist who bloggedkind of (temporary) home within the cultureabout her experiences as a student travelerthey’ve chosen to experience.in Portugal, in 2013.2 “I wanted to get toknow the locals and improve my Portuguese.At the start of September, 2014, SkiftThis was most likely not going to happen atpartnered with StudentUniverse to asksome all-you-can-drink-event.”educational travelers what they sought,regarding destination environments andWhile having a good time with peers isn’ttheir ideal kinds of trips. The following chartsabsent from student travel, industry leadersshow what the respondents had to say.8

Skift StudentUniverse: The State of Student TravelSKIFT REPORT 2014STUDENT TRAVEL AND NIGHTLIFESTUDENT TRAVEL: PRIMARY ACTIVITIESStudent travelers were asked ifthey would still travel if parties/nightlife were limited or absentfrom the f goals during student travel(females 18–24):Historical/Cultural Site Visits: 29.8%Make Local Friends: 19.7%Explore Local Cuisine: 19.3%Parties/Nightlife: 15.9%Language Learning: 15.3% 14.2%Males:Would Still Travel : 58.1%Would Not Travel: 18.1%Not Sure: 23.8% 18.1%27.2%14.8%18.9%58.1%19.4%24.9%Chief goals during student travel(males 18–24):Historical/Cultural Site Visits: 27.2%Parties/Nightlife: 24.9%Make Local Friends: 18.9%Explore Local Cuisine: 14.8%Language Learning: 14.2%62.5%Females:Would Still Travel : 62.5%Would Not Travel: 19.4%Not Sure: 18.1% SOURCE: Skift/StudentUniverse Survey (2014)SOURCE: Skift/StudentUniverse Survey (2014)When framing the student traveler as anIn a significant way, by this measure, historyexperience-conscious consumer, it is timeis on the minds of student travelers.to re-frame their inclinations. The studenttraveler wants a well-rounded set of optionsAnd, as Sarah’s words perhaps predicted,while in-destination. This is not surprisingthe female segment of the demographic iswhen one considers — as we will in the nextprioritizing one-to-one interactions in a waysection — more about the characteristicsthat isn’t tied to the bar or club (at least, asthat the student traveler’s most commonlyoften as it is for some of their maleencountered demographic tends to include.counterparts). Interestingly, however, whenasked about parties and nightlife, the samestudent travelers further framed theirjourneys as learning-prioritized events.9

Skift StudentUniverse: The State of Student TravelSKIFT REPORT 2014Miyajima, JapanSource:StudentUniverseStudy abroad: expanding spend,Meanwhile, the student traveler’s budgetexpanding demographicsruns from 1,000– 6,000 on a typical trip.5To target the kind of experiences that at-With 300 million student-travel related ar-tract students with these resources, it isrivals expected by 2020, and those arrivalsimportant to recognize the significance ofaccounting for an estimated 320 billionthe Millennial generation, 18–24 years old.dollars in revenue, the student traveler is on-Relevant points surrounding their in-desti-coming, on the grow, and spending to makenation behaviors include the following.6certain they get what they want.3 Millennial travelers are keen to findthemPart of the travel industry’s prize, when itselves in relatively remote destinations.comes to curating and cultivating relevant Millennials are more inclined to stay inexperiences for student travelers, is thathostels than in traditional hotels.of their life-long travel budgets. That is, Millennials remain in-journey longer,capturing a portion of it — it can range fromtypically spending more than two months 40,000– 120,000 per individual — relies inon a trip.large part upon the notion that future travelchoices emerge in significant ways fromBut the student traveler is not only aexperiences and patterns that occur duringMillennial. As we’ll explore next, they’rea consumer’s younger years.4increasingly international, increasinglyglobal, and bringing with them the details oftheir own cultural demographics.10Millennials:future businessMillennials might not bethe core customers ofairline, hotel, and othertravel verticals, yet. Butthey are likely to spenda good deal of money inthat market in the nearfuture. This is expectedto be the case especiallyin the business-travelsegment of the market,as Millennials grow intoit: they are expected toaccount for some 54% ofthe segment by 2025.[SOURCE: BostonConsulting Group Report(2013)]

Skift StudentUniverse: The State of Student TravelSKIFT REPORT 2014FlashpackersGlobalization and the internationalstudent travelerThe student traveler is approaching whatWhile the U.S. continues to reign supremethey do in-destination with immersionamong students in terms of study andand local contact as a goal, and they are apreferred destinations,7 China is not onlywide-ranging globalized market segment —growing in status as a student-travel target, it’srepresenting a pan-continental, pan-culturalalso expected to reach number one on the listspectrum. The following chart shows afor arrivals by 2015.selection of countries of origin, when itcomes to student travelers. Note that AsiaTOP STUDY DESTINATIONS (BY TOTALINTERNATIONAL STUDENT TRAVELERS)is addressed in a separate chart, as thatregion is addressed in some detail, later inUnited StatesUnited KingdomChinaFranceGermanyAustraliaCanadaJapanthis section.COUNTRIES OF STUDENT-TRAVELORIGIN (SELECTED REGIONS,BY NUMBER OF STUDENTS ABROAD)NORTH AMERICAUnited States: 62,000Canada: 5,292245,531214,955137,756LATIN AMERICA AND THE CARIBBEANChina’s global share “barely registered”, in2001, according to ICEF Monitor, but by 2012Colombia: 32,000 Flashpackers areprimarily composed of indestination travelers whothen elect to flashpack. Flashpackers are, in themain, over the age of 30. The flashpacker travelslight, and on a budget ofat least 1,000 per week. He or she is likely to be intransit with a laptop (75%of the time) and/or likelyto have video capability. The flashpacker is inclined to use social mediafrequently. This subset favorsaccommodations — particularly hostels — thatoffer free Wi-Fi. For the most part (62%),flashpackers are male.SOURCE: ICEF Monitor (2014)Brazil: 35,000A slightly older segmentof the student-travelmarket has given rise, inrecent years, to the flashpacker. This traveler’stypical characteristicsinclude the following.[SOURCE: WYSE TravelConfederation: “NewHorizons III: A globalstudy of the youth andstudent traveller” (2013)]its international enrollment measured at someMexico: 29,0008% of the market, worldwide.8 Furthermore,Peru: 24,000within the context of China’s National Plan forMedium and Long-term Education Reform andVenezuela: 19,000Development, the country has set a goal ofEUROPEattracting 500,000 foreign students by 2020.9Foreign studentsand the U.S.Germany: 132,000France: 80,000ASIA AND THE STUDENTTRAVELERRussian Federation: 71,000Italy: 63,000Ukraine: 55,000AFRICANigeria: 57,000Morocco: 56,000Percentage of All StudentsStudying Outside Home Countries Represented by Asia53% Percentage of All StudentsStudying Outside Home Countries Represented by China,India, and South Korea25% Ratio of Students StudyingAbroad Hailing from China1:6Zimbabwe: 41,000SOURCE: ICEF Monitor (2014)Algeria: 27,000Cameroon: 25,000Tunisia: 23,000ADDITIONAL MARKETSTurkey: 83,000Iran: 61,000Saudi Arabia: 57,000SOURCE:ICEF Monitor (2014)11Number of Foreign Students on F-1 Visas in U.S.Colleges (2001):110,000Number of Foreign Students on F-1 Visas in U.S.Colleges (2012):524,000Tuition Paid, ForeignStudents (2008–2012): 21.8BOther Spend, ForeignStudents (2008–2012): 12.8B[SOURCE: Brookings(2014)]

Skift StudentUniverse: The State of Student TravelSKIFT REPORT 2014The role of mobile in student travel“China wants to be seen as a major playerinternationally in terms of education,” AnthonyWelch, a professor of international educationThe student traveler is, in the way of manyat the University of Sydney, told ICEF.10travel consumers circa 2014, accustomed tomobile connectivity as a constant in their lives.COUNTRIES OF STUDENT-TRAVELORIGIN, ASIA (SELECTED REGIONS,BY NUMBER OF STUDENTS ABROAD)That being said, their relationship with thetablet and the smartphone does not meanthat travel verticals shouldEASTERN ASIAautomatically default to a strategy ofChina: 723,000mobile-only outreach. Mobile and desktopKorea: 139,000bookings are generally on the rise withinJapan: 39,000the travel industry, but the status of theSOUTH-EAST ASIAVietnam: 61,000mobile device in the context of studentMalaysia: 61,000travel is in flux, according to recent reports.Indonesia: 43,000Mobile travelaudience by 64:12%65 :10%[SOURCE: MillennialMedia/comScore Report:2014]Within the student-travel demographic,Thailand: 28,000many first turn to a laptop browser forSingapore: 21,000information about future destinationsSOUTH ASIA— about as often as they turn to mobileIndia: 223,000web. And person-to-person contact is still aPakistan: 49,000desirable avenue for travel-related queries. ANepal: 30,000recent Skift/StudentUniverse survey furtherBangladesh: 30,000illustrates student-traveler preferences.U.S. mobile and desktop travel bookings(2011–15)Desktop 2011: 114BMobile 2011: 2BDesktop 2012: 126BMobile 2012: 7BDesktop 2013: 135BMobile 2013: 13BDesktop 2014: 145BMobile 2014: 23BSOURCE: ICEF Monitor (2014)STUDENT TRAVELERS ONTRAVEL-INFO SEARCHESStudent travelers were askedwhat resources they turn tofirst for information when indestination.13.3%22.7%32.8%31.1%on Laptop: 32.8% InternetInternetonApp: 31.1% Local Host:Smartphone/Smartphone22.7% Internet on Tablet/Tablet App: 13.3% SOURCE: Skift/StudentUniverse Survey (2014)12Desktop 2015: 158BMobile 2015: 40B[SOURCE: BusinessIntelligence/WYSE TravelConfederation: 2014]

Skift StudentUniverse: The State of Student TravelSKIFT REPORT 2014Student travel: industry perspectivesParis, FranceSource:StudentUniverseThe growth of the student-traveler demographic is ongoing. It represented 15% Young travelers often spend more thanof global tourism in the 1990s, 20% in theother tourists.2000s, and it is expected to grow to some The demographic is likely to return and25% of total tourism in the coming years.11give more value to the destination overtheir lifetime.The market value of those travelers mani- Student and youth travelers are a growthfests in several different ways for differentmarket, globally, while the spending powerstudent-facing brands across industry sec-of older generations in Western economiestors. A selection of examples can be seen instands to decline over the long term.the following chart. Younger individuals are less likely to bedeterred from traveling by terrorism,STUDENT-TRAVEL MARKET VALUE(SELECTED SECTORS)political and civil unrest, disease, and/ornatural disasters.Higher Education: 64.6B Young tr

The State of Student Travel Student travelers represent a key demographic for travel-brand growth, but only if brands commit to understanding . only tourism, but study, work, and volunteer .

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