Key Findings: The Global Economic Contribution of TripAdvisor study
How TripAdvisor influences the global travel economy – and how your business can benefit
Since its launch in 2000, TripAdvisor has contributed significantly to the growth of the global travel and tourism marketplace. Now, a team at Oxford Economics has quantified TripAdvisor’s contribution, showing just how significant the impact has been. Here are seven key findings from The Global Economic Contribution of TripAdvisor study and how they impact your business.
Key finding 1: Influence on travel planning
Travellers rely on the millions of reviews and opinions on TripAdvisor to help them feel confident in their decisions when planning and booking travel. According to Oxford Economics, TripAdvisor content influenced 13% of international trips and almost 8% of all domestic travel worldwide. This translates to over 350 million trips and 1.8 billion tourism nights in 2014 alone.
Key finding 2: More trips and longer trips
According to the findings, in 2014 there were 22 million extra trips and 352 million additional tourism nights directly generated by TripAdvisor. Oxford Economics have determined that this additional travel would not have occurred were it not for the content, features and tools available through TripAdvisor.
Key Finding 3: Increased spend on travel
The research found that content on TripAdvisor sites directly influenced $478 billion of global travel spend in 2014. This includes $64 billion of additional travel spend which was directly generated by the site’s content and functionality and wouldn’t have occurred without it.
In 2014 there were 22 million extra trips and 352 million additional tourism nights directly generated by TripAdvisor.
Key finding 4: Impact on travel and tourism jobs
Oxford Economics has been able to identify that the increased travel activity influenced by TripAdvisor has helped to sustain 1.9 million jobs worldwide, including over 900,000 jobs within the tourism sector that were directly created by TripAdvisor.
Key finding 5: Driving interest to destinations
Through analysing TripAdvisor data, travel trends and economic activity, the research established a link between TripAdvisor content and destination choices. The findings illustrate that the number of trips taken to a particular destination increases as content such as photos, reviews, listings and information for that destination on TripAdvisor increases.
Key finding 6: Improved hospitality standards
Increased travel leads to increased content shared on TripAdvisor. That content helps other travellers planning trips and also provides businesses with valuable feedback to improve service and in turn attract more customers. Furthermore, businesses that provide thoughtful Management Responses to the reviews and feedback they receive also perform better on the site.
Oxford Economics has linked this virtuous cycle of TripAdvisor content to improved standards in the hospitality industry.
Key finding 7: Levels the playing field
The study found that TripAdvisor content gives travellers the confidence to choose a property based solely on reviews, ratings and photos from other travellers. This trend particularly benefits non-branded businesses, enabling smaller, independent businesses to compete on a more equal footing with larger brands.
Three top tips to help you leverage the influence of TripAdvisor:
- Make a good first impression: TripAdvisor influences 13% of international travel and 8% of domestic travel. To capitalise on this reach it’s important to ensure that all of the information on your TripAdvisor page is complete and up to date. This includes everything from amenities and contact details to operating hours and photos. Visit your Management Centre to update your business information and upload photos.
- Content drives business: Every customer represents a new chance to collect a review. Each new review adds fresh content to your TripAdvisor page and your destination, presenting a new opportunity to appeal to future customers. Check out these five free tools TripAdvisor has available for businesses to encourage guests to leave a review.
- Management Responses add content too: Providing personal responses to reviews can have a big impact on both your revenue and your reputation. Management Responses not only show other potential customers that you care about guest feedback, they also provide a platform to communicate any improvements you may have made as result. To start responding to reviews, see our guide - How to add Management Responses to TripAdvisor Reviews.
Download Global Report
Last Updated: 5 April 2016