546 billion in 2017 alone. Globally, the popular travel site influenced more than 433 million trips last year, and 65 million in just the United States alone last year. To determine the total addressable market, Oxford Economics takes a more expansive view of the tourism and hospitality economy than some other well-known research firms. Their approach is widely recognized as a reliable source of industry sizing and trending, and is a primary source of data for global organizations such as the World Travel & Tourism Council (WTTC), the U.S.
Travel Association, and the European Travel Commission. Included in the study’s scope are businesses and employees supported directly by tourism. “We are happy to see more data and studies that affirm TripAdvisor’s positive contribution to consumers, travel businesses and the broader economy is huge and undeniable,” said Martin Verdon-Roe, vice president of product & marketing, TripAdvisor hotels. Over the past 10 years according to Oxford Economics, travel-related spending influenced by TripAdvisor sites has outpaced growth in overall travel and tourism spend. TripAdvisor-influenced spend has grown at an annual average growth rate of 7.4% over the past decade.
This compares favorably with average growth of 3% for total tourism spend. Even when total spend fell by 5.3% in the depths of the global recession in 2009, TripAdvisor-influenced spend outperformed the wider trend. TripAdvisor’s influence has also risen across all global regions over the past decade - with notable improvement in both developing tourism destinations, as well as in developed markets.
In fact, Oxford Economics applied sophisticated analysis to prove that TripAdvisor causes more travel (i.e., “TripAdvisor additional” travel), which is most evident through increased visitor nights and spending than through arrivals. The Oxford Economics “Sizing the Worldwide Travel Economy” paints a picture of a healthy and growing travel economy, with the greatest surges in travel spending over the last few years resulting from the APAC, Middle East and Latin American regions.
130%. In contrast, Western European destinations have largely remained flat during this time. International travel is expected to become more important as household wealth continues to rise in large emerging markets, with a greater proportion of households able to afford international travel. Taking into consideration the large and growing global travel economy and the rise of emerging middle class markets, the climate is right for businesses to engage with potential guests online and drive conversions.