2006 ESADE- eDREAMS SURVEY TRENDS IN THE PRICE SENSITIVITY OF SPANISH TOURISTS 2005-2006

1. 2006 ESADE- eDREAMS SURVEY TRENDS IN THE PRICE SENSITIVITY OF SPANISH TOURISTS 2005-2006 Authors: Dr. Josep-Francesc Valls, Director of the ESADE International Tourism Symposium Dr. Mar Vila, Director of ESADE's Centre for Tourism Management Research Assistant: Marta Molist

2. Sample • 3,347 visitors to the eDreams web site who were aged between 16 and 66 • 63% women and 37% men • Average age: 37 • Number of responses: 631 (18.85%) • Margin of Error: 3.51%, assuming a maximum confidence interval (p=q=0.5) and 95% confidence level

3. Main reason for travelling Source: ESADE – eDREAMS 2006

4. Days holiday Source: ESADE – eDREAMS 2006

5. Days spent travelling Source: ESADE – eDREAMS 2006

6. Number of journeys carried out in the previous year Source: ESADE – eDREAMS 2006

7. Budget earmarked for tourism compared with the previous year Source: ESADE – eDREAMS 2006

8. Reasons for travelling to a given destination 2006 2% 100% 5% 5% 4% 9% V. high 8% High 18% 23% 17% 35% 37% Medium 80% 20% Low V. low 32% 30% 60% 26% 39% 28% 38% 2005 40% 21% 18% 44% 100% 23% 40% 16% 20% 90% 10% 23% 80% 5% 10% 7% 70% 5% 0% 60% V. high There are bargain deals on the Internet I have always gone there Friends and family recommend it It is in vogue Seeking something new Is a tourist brand that carries kudos High 50% Medium 40% Low 30% V. low 20% 10% 0% Friends and family recommend it It is in vogue Seeking something new Is a tourist brand that carries kudos There are bargain Deals on the Internet I have always gone there Source: ESADE – eDREAMS 2006

9. Trends in the quality of tourist products Source: ESADE – eDREAMS 2006

10. Willingness to pay more 2006 100% NR 24% 23% 26% 26% No 80% Yes 20.44% 25.36% 60% 42.31% 60.38% 2005 40% 56% 51% 100% 32% 20% 90% 80% 13% 70% 60% 0% 50% I am unwilling to pay more Would pay more if the tourist products were better Would pay more if the tourist products were More exclusive 40% NR Would pay more if the tourist products belonged to a prestigious brand 30% No 20% Yes 10% 0% I am unwilling to pay more Would pay more if the tourist products were better Would pay more if the tourist products were more exclusive Would pay more if the tourist products belonged to a prestigious brand Source: ESADE – eDREAMS 2006

11. 100% 3% 10% 10% 9% 29% 32% 40% 80% 45% 17% 33% 62% 60% 16% 39% 38% 27% 40% 42% 52% 47% 32% 24% 21% 20% 26% 10% 6% 7% 6% 4% 2% 3% 1% 1% 1% 1% 1% 1% 0% (A) It’s cheaper (B) It’s dear or dearer (C) It provides quality service (D) It provides value for money (E) It provides something unique (F) Friendly service (G) A place with an excellent reputation Quality factors linked to price. 2006 Very important - J Fairly important - K Neither - L Not very important -M Unimportant - N 2005 100% 90% 80% J 70% 60% K 50% L 40% M 30% 20% N 10% 0% (A) (B) (C) (D) (E) (F) (G) Source: ESADE – eDREAMS 2006

12. Does a higher price always mean greater quality? 2006 6% 16% 78% 2005 Yes No No response 1% 6% 93%

13. Tourist price trends over the last three years in Spain 2006 100% 11% 15% 17% 19% 20% 25% 29% 30% 32% 80% 48% 33% 60% The same Dearer 87% 47% 77% 73% 83% Cheaper 40% 73% 67% 65% 2005 46% 46% 20% 100% 21% 7% 6% 6% 80% 5% 4% 2% 2% 2% 0% Same 60% Bars Shows Car hire Flight Taxis Dearer Hotels Shops Museums 40% Cheaper Restaurants 20% Congress services 0% Bars Shops Shows Taxis Flight Museums Hotels Restaurants Car hire Congress services Source: ESADE – eDREAMS 2006

14. Future price trends 2006 100% 16% 16% 17% 21% 22% 22% 26% 29% 80% 42% 43% 60% Same 41% Dearer 63% 53% 79% 81% 80% Cheaper 74% 40% 69% 50% 53% 2005 20% 37% 18% 15% 7% 6% 100% 4% 5% 5% 3% 3% 0% 80% Flight Hotels Bars Shops Same Taxis 60% Museums Shows Car hire Restaurants Dearer 40% Cheaper Congress services 20% 0% Bars Taxis Flight Hotels Shops Shows Car hire Museums Restaurants Congress services Source: ESADE – eDREAMS 2006

15. Information search systems 2006 100% 7.6% 8.7% Strongly preferred - J 20.1% Preferred - K 22% Neither - L 80% 28% Little preferred - M 61.0% Strong negative preference - N 24% 43% 60% 34% 2005 40% 27% 100% 24% 30% 90% 19% 20% 80% 20% 70% 8% 7% 10% 60% 4% 2% J 1% 50% 0% K L 40% (A) Through the Internet (B) Through the media, guides and travel books (C) Through traditional travel agents (D) Through friends and relatives M 30% N 20% 10% 0% (A) (B) (C) (D) Source: ESADE – eDREAMS 2006

16. Purchasing channels 2006 100% 6% 14% 19% 26% 22% Strong preference - J 36% 80% Preferred - K 30% 26% Neither -L 20% Little preferred - M 60% 32% Strong negative preference -N 35% 22% 22% 23% 40% 2005 20% 17% 17% 13% 20% 12% 29% 100% 9% 17% 17% 80% 10% J 7% 60% K 0% L 40% M (D) By phone (E) In person 20% N (A) Airline web sites 0% (B) Online travel agents (C) Traditional travel agents (A) (B) (C) (D) (E) Source: ESADE – eDREAMS 2006

17. Is it always possible to find the cheapest price? 2006 9% Yes 49% No In most cases 42% 2005 5% 47% 48% Y N In most cases Source: ESADE – eDREAMS 2006

18. Important attributes when choosing a holiday 2006 100% 9% 36% 80% 23% 43% 51% Very important 63% Fairly important 60% 37% Neither 40% 49% Fairly unimportant 41% 43% Not at all important 32% 18% 20% 12% 12% 13% 4% 5% 3% 2% 1% 1% 1% 0% 1% 1% 1% Cheap Reliability Good service Famous brand Convenience

19. CONCLUSIONS 2006 1. In the second year of the ESADE-eDreams survey, the general reason for "visiting the place" continues to be the most common reason for making the trip; the tourist destination needs to be attractive, novel, and to facilitate socialisation. However, the importance respondents placed on that most passive of reasons - relaxation - and the decline of culture and business as reasons for travel are particularly noteworthy features in this year's survey. 2. 40% of respondents said they had 30 to 39 days of holiday a year; 20%, had between 20 and 29 days. A slight change compared with the previous year was an increase in the proportion of respondents taking 10 to 19 days a year. With regard to the number of days spent on travel, those spending 20 to 29 days remain about the same (27%), there is a fall in those spending 10 to 19 days, and a slight increase in those spending over 30 days.

20. CONCLUSIONS 2006 • 3. The number of people travelling 2-3 times a year and 4-6 times a year rose, while those travelling over 7 times a year fell. • The amount spent by Spaniards on travel rose. The percentage of those who said they spent the same or more than in the previous year rose to 85%. • Demand for cheap tourist products through the Internet strengthened. The percentage of those unwilling to pay more on tourism fell. This means there is increasing interest in value for money and a stronger belief that higher prices mean greater quality. Exclusiveness and brand prestige continue to attract 30 and 15% of respondents, who value these attributes highly.

21. CONCLUSIONS 2006 • A greater percentage of respondents believe that there has been an improvement in the quality of tourist products. • Tourists consider that prices have rocketed in most tourist services, with the exception of flights and museums. A smaller number of respondents believe that hotel prices will increase. The remaining respondents believe that hotel prices will remain more or less the same. • Increasing use is being made of the Internet: the media, brochures and traditional travel agencies are holding their ground.

22. CONCLUSIONS 2006 • 7. From the standpoint of travel purchases, online travel agency webs were much more popular than company web sites (36% strongly preferred agency web sites compared with 26% in the case of company webs, a reversal of the findings for the previous year). Impulse purchasers are becoming much more important (19% increase in strong preference compared with last year). Traditional tourist agencies have picked up slightly (14% showed a strong preference). In this respect, travellers continue seeking the cheapest prices, which confirms what we found in the majority of cases for the Internet. • 8. Price is the most important attribute when choosing a holiday, followed by service and reliability.