STAY WYSE Benchmark Study Exec Summary

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noitaredefnoC levarT lRanEoSitEacAuRdECThe Youth Travel Accommodation Industry: A Benchmark StudyEstablishing crucial business metrics and trends for the industry.By Greg Richards and Peter WelkExecutive SummarySTAY WYSE is a sector association of WYSE Travel Confederation H& tnedutS htuoY dlroW This is an executive summary of: The Youth Travel Accommodation Industry: A Benchmark Study The full report is available to STAY WYSE members and survey participants only. If you are interested in becoming a member please visit www.staywyse.org or contact the association manager, Ms Ita Rahman, directly at [e-mail] STAY WYSE Association Keizersgracht 174 1016 DW Amsterdam The Netherlands T: [phone] F: [phone] www.staywyse.org STAY WYSE is a sector association of WYSE TRAVEL CONFEDERATIONThe Youth Travel Accommodation Industry: A Benchmark Study THE YOUTH TRAVEL ACCOMMODATION INDUSTRY: A BENCHMARK STUDY INTRODUCTION About STAY WYSE STAY (Safe Travel Accommodation for Youth) WYSE Association was established in 2006 by the world’s leading youth travel accommodation providers to represent the entire global Youth Travel Accommodation sector. STAY WYSE is the only not-for-profit industry association bringing together the diverse segments of this significant US$6 billion/year ...

Informations

• Publié par: Veseb
• Nombre de lectures: 23
• Langue: English

Extrait

STAY WYSE is a sector association of WYSE Travel Confederation

The Youth Travel Accommodation

Industry: A Benchmark Study

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Establishing crucial business metrics and

trends for the industry.

By Greg Richards and Peter Welk

Executive Summary

This is an executive summary of:

The Youth Travel Accommodation Industry: A Benchmark Study

The full report is available to STAY WYSE members and survey participants only.

If you are interested in becoming a member please visit

www.staywyse.org

or

contact the

association manager, Ms Ita Rahman, directly at

[e-mail]

STAY WYSE Association

Keizersgracht 174

1016 DW Amsterdam

The Netherlands

T: [phone]

F: [phone]

www.staywyse.org

STAY WYSE is a sector association of WYSE TRAVEL CONFEDERATION

The Youth Travel Accommodation Industry: A Benchmark Study

2

THE YOUTH TRAVEL ACCOMMODATION INDUSTRY: A BENCHMARK STUDY

INTRODUCTION

About STAY WYSE

STAY (Safe Travel Accommodation for Youth) WYSE Association was established in 2006

by the world’s leading youth travel accommodation providers to represent the entire global

Youth Travel Accommodation sector.

STAY WYSE is the only not-for-profit industry

association bringing together the diverse segments of this significant US$6 billion/year

industry. STAY WYSE works to provide much needed support and representation for one of

the youth travel industry’s fastest growing niche markets.

The Association’s mission is to provide safe, affordable and clean accommodation within a

communal atmosphere that encourages youth mobility and cultural understanding.

STAY WYSE was officially approved as a sector association of the World Youth Student &

Educational (WYSE) Travel Confederation in October 2007 at the World Youth Student

Conference (WYSTC) in Istanbul, Turkey.

The Youth Travel Accommodation Industry: A Benchmark Study

The global youth tourism market continues to expand as a result of young people travelling

more frequently, more widely and more independently. In 2007 there was a worldwide

market of an estimated 180 million international youth tourism trips a year, compared with

about 160 million in 2005. This market growth has created an increased demand for youth

accommodation, and stimulated the development of new forms of accommodation. We are

also seeing a growth in professionalisation and commercialisation which is driving

convergence between Youth Travel Accommodation (YTA) providers and other sectors of

the accommodation market, particularly budget hotels.

Although the YTA industry is growing in size and importance, information pertaining to the

business operations of hostel-style accommodation is scarce, certainly in comparison to the

frequent and detailed analyses of the hotel sector. Information on how the YTA sector

operates is useful in allowing operators to benchmark their business and assess their own

performance relative to industry standards.

This first ever benchmark study was commissioned by the STAY WYSE Association in order

to provide an initial review of the business operations of the Youth Travel Accommodation

sector, and to establish crucial business metrics and trends in this dynamic sector. The

information generated by this research will also support the mission of STAY WYSE to

provide a voice and identity for the Youth Travel Accommodation industry.

The study will:



enable youth travel accommodation operators to benchmark their own business

performance characteristics in order to develop strategic concepts and optimize

business outcomes.



provide guidance to youth travel accommodation providers in assessing their own

performance, cost effectiveness, revenue and expenses relative to the industry

standard.



gain comparisons relative to the hotel industry.



collect data for the purpose of identifying trends.

The Youth Travel Accommodation Industry: A Benchmark Study

3

Methodology

Two parallel data collection methods were used in the study which was conducted from May

to July 2008:



A global online survey invited Youth Travel Accommodation (YTA) operators to

participate in the study. Complete anoniminity was ensured. Data was collected from

359 YTA operators from 41 countries via the online questionnaire.



Face-to-face interviews allowed for more detailed answers and qualitative data

gathering from youth travel accommodation providers from various European

countries. The interviews were conducted by an independent researcher who visited

151 European YTA establishments in 15 countries.

The Youth Travel Accommodation Industry: A Benchmark Study

4

EXECUTIVE SUMMARY

Youth travel accommodation is an important and rapidly growing sector of the

accommodation industry. This study is the first comprehensive global analyses of business

operations in the youth travel accommodation (YTA) sector.

510 YTA establishments in 42

countries participated in the study. At about 50,000 bed spaces, the study covers nearly 3%

of the global YTA market (see Richards 2007b). Data was collected through an online survey

and face-to-face interviews with YTA operators in May-July 2008.

Youth Travel Accommodation Establishments



The number of establishments is increasing at a rapid pace.



The YTA landscape is diversifying and has incorporated non-traditional business

concepts such as international student residences and Bed & Breakfasts. YTA caters to a

wide range of target markets and employs a variety of marketing and price strategies.



YTA establishments are typically private individually-run or part of chain-operated non-

profit businesses, tend to be located in cities, and most provide between 50 and 200 bed

spaces.



Most businesses are young, having opened within the last 10 years.



YTA establishments are larger in high-cost regions, i.e. Europe, Australia and North

America than in low-cost ones, i.e. Asia, Africa and Latin America.



Many YTA providers are turning dorms into private rooms in order to adapt to market

developments.



The proportion of en-suite rooms has increased to 73% in accordance with market

demand.

Youth Travel Accommodation Staff



An average of 15 people is employed in each youth travel establishment.



Every staff member caters to an average of 8.5 beds.



In high-income regions, including Oceania, Europe and North America, YTA staff earn an

equivalent of around € 1,500 net per month.

Youth Travel Accommodation Guests



Guests’ expectations for high quality and more services have risen steadily over the

years.



The average length of stay at a YTA establishment is 3.5 nights, with the highest lengths

of stay in Oceania and the lowest in Europe.



The major source of information on accommodation as well as the major booking channel

is the internet. The vast majority of guests book their accommodation in advance.

The Youth Travel Accommodation Industry: A Benchmark Study

5

Youth Travel Accommodation Finances



Property and staff costs are the main expenditure of YTA operations.



Revenues predominantly come from beds, although food and beverage is a particularly

important revenue sources for medium-sized non-profit businesses (particularly HI

hostels).



On average, private room beds cost 1.7 times as much as dorm beds, with strong

fluctuations between regions and establishment sizes.



Revenues per bed are highest for medium-sized businesses in Oceania and North

America. The same applies for revenues per guest.



The average bed space occupancy rate for 2007 was just under 50%. However, this

fluctuates strongly between establishments of different sizes and between seasons.

Youth Travel Accommodation Trends



YTA is closing the price and quality gap on the hotel sector, with flashy design concepts,

more private rooms and en-suites.



The social aspect of youth travel accommodation is becoming less evident with the

increasing individualistic nature of young independent travellers today.



General growth in bed nights was approximately 12% in 2007, far higher than growth in

tourism in general.



All sized business experienced relatively high growth rates, with the strongest increase in

the very large and very small establishments.



All regions experienced strong growth rates, notably in North America and Africa.



Most establishments have increased their number of beds in 2007, and planned to do in

2008 as well.