Travel Impact Report by Explore!

The

Travel Impact Report

Why holidaymakers are setting the sustainability agenda

Foreword At Explore, we always strive to be that little bit Better Than Yesterday. Every day. Having calculated the carbon footprint of every one of our trips, and every part of our operations, we’re now working hard to reduce those carbon footprints throughout the business, while continuing to maximise the positive impact that our small group trips have on the communities we visit and their economies. Understanding how our customers and the general public feel about the impact of their holidays – environmental, social and economic – is also key to our sustainability strategy. This is our first annual sustainability index, in which we’ve surveyed over 9,000 international holidaymakers in the UK, Australia and North America about their attitudes to sustainable travel. We plan to revisit the same topics each year, and look forward to seeing how perceptions and behaviours change over time while we continue to drive down carbon and make positive impacts wherever we can in our pursuit of being Better Than Yesterday and ensuring travel is a force for good.

Michael Edwards Managing Director, Explore Worldwide

The Travel Impact Report

Introduction By 2033, according to the World Travel & Tourism Council, travel is set to become a $15.5tn industry, accounting for more than 11.6% of the global economy. Adventure travel is a significant part of the sector, valued at $282bn in 2021. But while calculating the economic impact of travel and tourism is relatively straightforward, quantifying the environmental and social impact of travel on the planet, and destination and communities around the world, is more complex. To explore the attitudes and beliefs of experienced international holidaymakers, we asked more than 9,000 people in the US, the UK and Australia for their thoughts on sustainable travel today and tomorrow. They told us that sustainability is now front of mind, not only during the planning and booking stage - but also when they are at their destination, and even after they leave. Travellers’ concerns and intentions cleave into two key areas: community and planet. They also feel that sustainable travel should be high on firms’ agendas too. In fact, the sustainability of every travel business could just depend on it.

The Travel Impact Report

Methodology Survey conducted by Opinion Matters between 21.06.2023 - 28.06.2023. The survey reached 9,034 regular international holiday travellers who live in the UK, US and Australia (aged 16+). Opinion Matters abides by and employs members of the Market Research Society which is based on the ESOMAR principles.

Impact-conscious travel takes off Above all else, frequent holidaymakers desire a memorable experience from international travel. But a significant majority are also conscious about the impact their trips have on the community around their destination, and the planet as a whole.

Holiday travellers who agree:

OVERALL

AUSTRALIA

I prioritise the holiday experience first

73%

71%

75%

I want to see my money have an impact

64%

66%

60%

74%

I’m told my travels will give back to the community

61%

59%

57%

69%

I worry about environmental impact

58%

56%

53%

67%

I research best sustainable travel methods

54%

52%

44%

72%

(Net)

The figures indicate travellers worry about their negative impact on the environment, which is also leading a majority to consider more sustainable ways to take holidays. Many expect travel companies to do the same: 61% of respondents agree with the suggestion that firms should - for instance - pay 10% of the full cost of their holiday towards community projects. Overall, travellers based in the US are the most eager (75%) to prioritise their travel experience. However, they’re also by far the most sustainably minded when it comes to choosing holidays. Nearly as many (74%) want to see their money having a positive impact; while only slightly fewer (72%) research the most sustainable ways to travel; and 67% say they worry about the environment. These experienced tourists were asked more specifically to define the term ‘conscious traveller’. While the chance to ‘reduce carbon footprint’ is understood widely (45%), values such as spending with locally owned businesses - such as hotels and restaurants - also featured strongly in their definitions: 44%, increasing to 52% among travellers based in Australia. The Travel Impact Report

What does it mean to be a conscious traveller in 2023? (Tick all that apply)

OVERALL

AUSTRALIA

Minimising your carbon footprint

45%

47%

46%

40%

Using locally owned businesses

44%

52%

41%

46%

Putting environment before cost

36%

34%

40%

Leaving no trace

29%

36%

28%

29%

Paying carbon offset

24%

27%

22%

27%

Flying only once per year

23%

21%

22%

25%

Making sustainable choices Reducing personal carbon footprint might be the major factor, but travellers’ understanding of what else they can do to reduce their impact isn’t merely a label. For instance, nearly a quarter (23%) would consider only flying once a year. This tallies with the 66% of respondents who expect to take a maximum of two holidays in the next 12 months. It’s also worth noting that younger travellers seem to think they have a better grasp of sustainable travel. Just one in 10 (10%) aged from 16 to 24 claim they can’t define it, compared to almost one in five (18%) of those aged 55 and over. Perhaps there’s a role for Gen Z and Millennial travellers to advise Gen X and Baby Boomer friends and family about the most eco-conscious ways to take holidays.

The Travel Impact Report

A more sustainable future Explore operates with purpose, keeping sustainability front of mind, and putting planet and people alongside profit. We are a responsible business that cares for our staff, our partners, our customers and our planet. We know operating in this way is a journey: we’re not perfect, we’re just working hard to improve a little each and every day. To practise what we preach, we welcomed an independent audit with Feefo, our trusted review provider, in partnership with ethy, a company built on the idea that finding ethical, sustainable businesses should be easier for consumers. We’ve met ethy’s standards for verified sustainability claims and achieved a number of badges, now displayed on our site. 6

Impact-conscious travel takes off We’ve seen that experienced international travellers consciously split the concept of ‘impact’ into two distinct categories: sustainable planet and sustainable community. Let’s take a closer look now at their environmental attitudes.

What do tourists crave when it comes to the range of sustainable trips on offer from travel companies? More than a fifth (21%) will seek the most environmentally friendly travel companies. This increases to 31% of US-based respondents; and 24% of those aged between 35 and 44. In fact, many travellers are prepared to reward firms that have proven green credentials: almost one in three (32%) overall - rising to 41% in the US, 36% and 37% of those aged from 35 to 44 - say they would be willing to pay more when booking through these businesses. Tourists also reveal specific wishes around carbon reporting:

60%

say carbon emissions transparency influences which company they book with

47% do their own carbon emissions research - increasing to 65% in the US

19% expect to see clear

We all have a part to play Who do international travellers feel is responsible for sustainable travel? A majority believe that improving the sustainability of travel options shouldn’t be down to them: 39% cite travel companies and 27% point to national governments as being responsible for these changes. However, more than one in five - 22%, increasing to 28% in Australia - feel the individual should be accountable. To that end, many are already finding ways to make more sustainable choices: (respondents who have done or will do)

58% Avoid indirect flights 51% Arrange flight-free travel 49% Book lower-carbon trips 47% Purposefully take fewer holidays

environmental impact reporting from firms in the next 12 months

23% state having this information to hand is the most important factor when they research a holiday

The Travel Impact Report

Explore’s holidays from the heart With a majority of us desiring greater transparency around travel’s environmental impact, Explore’s ‘Clear on Carbon’ scheme has been a big step in being transparent about trips, so customers can make more informed choices about their holidays, and being clear on our starting point in order to begin bringing those carbon totals down – for us, and for the planet. Explore worked with independent carbon consultancy ecollective to help measure the carbon footprint of every one of our small group tours, worldwide. The framework measures the footprint to a high degree of accuracy, taking into account every element of the business from transport and accommodation to exact location and excursions, and Explore’s back-office operations. Explore’s Animal Protection Policy also sets out to protect and improve wildlife, contributing towards the best welfare standards in the industry. We aim to reduce Explore’s footprint by 50% by 2030, with a 7% reduction target set for this year. Changes made so far include replacing internal flights with trains and boat journeys, for example in Laos and the Azores. 8

Sustainable stays: helping local communities Next let’s turn to international travellers’ interest in seeing their money support and positively impact the communities based in and around their holiday destinations.

80%

A big majority say it’s important to give back to local communities during their stay This increases to nine in 10 (90%) in Australia. Meanwhile, nearly 1 in 5 (18%), rising to 29% in the US, seek holidays that positively impact local communities. A similar share of travellers overall (22%) - increasing to 32% in the US - say this benefit is an important factor when they choose a travel company to book with. Altruism is also evident among the 30% of travellers specifically planning trips in the next 12 months, who say that not disrupting local cultures is vital. In total, 70% agree this is an important issue they consider whenever they book a holiday. In addition:

74%

expect travel firms to be honest about the impact of holidays on communities

24% say minimising negative

impact, but increasing positive impact is important when choosing a travel firm to book with

The Travel Impact Report

Making a positive impact Much as travellers feel a sense of shared responsibility for minimising environmental impact, there’s a role both for the individual and travel businesses to boost local communities. For example, 31% - climbing to 41% in the US - would like travel firms to offer flight-free trips that also fund local improvements. Meanwhile, a significant number of holidaymakers say travel firms could better highlight the possibilities of doing more to support local communities. At present, they struggle to investigate these possibilities due to a lack of information being provided by travel companies. When it comes to actions they could personally pursue, 44% overall say using locally owned businesses can help them to be a conscious traveller. This increases to 52% in Australia. Many say they’ve already helped communities in the past:

54% Donate to local charities / projects 46% Support local businesses 25% Engage in sustainable practices 21% Volunteer with local charities 20% Take part in beach clear-ups A further 24% are eager to join in voluntary work in future. This rises to 30% of travellers based in the US. 9

A more sustainable future The Explore Foundation benefits from our huge community of overseas partners and contacts. Through this network, the foundation identifies and supports projects in countries that Explore customers visit, working to deliver support where it’s most needed. Explore covers all administration costs, so 100% of donations to the foundation directly support chosen projects. Launch initiatives include: Lone Buffalo, Laos - Over 70% of Laotians live on just $2 per day, and in the country’s rural areas their young people have little access to a structured education. Develop Together aims to give upper secondary students access to expert workshops and learning opportunities. The programme is hugely varied, offering modules on everything from financial literacy and CPR training to presentation and communication skills. One Bike, Tanzania - Located at the foot of Mt Kilimanjaro, One Bike is a social enterprise that uses bicycles to empower and improve the local community through education, environmental awareness and promoting sustainable tourism. Morocco Earthquake appeal – The Explore Foundation enabled customers to donate to the Red Cross to support immediate aid efforts in the wake of the devastating earthquake in Morocco in September 2023. Within just 24 hours, £20,000 had been donated by Explore customers, which was then matched by Explore - on top of an initial £10,000 donation - giving a total of £50,000 donated in the first week following the disaster. 10

When trust flies high, so does choice We’ve seen that travellers are keen to change their behaviours and considerations around carbon emissions and visiting local communities. They also feel travel firms have a key role. But what else do they expect when researching and booking a trip?

A trustworthy travel service is key. More than two in five (43%) experienced travellers say trusting a travel company they’ve used before is an important selection factor for them. This increases to 53% of those aged 55-plus, and 48% in Australia. Trust is in short supply with some travellers, however. One in 10 (10%) increasing to 12% in Australia - say bad experience/service has made them stop trusting a travel firm they previously used.

Shared values rebuild trust While the vast majority trust the travel sector as a whole, just 25% say they have a high level of trust. This drops to 18% in the UK, and 15% of those aged 55-plus. Furthermore, 15% trust the travel industry less than they did pre-pandemic - rising to 18% in Australia, and 18% of those aged 55 and over.

80%

Reasons for losing trust in travel firms Lost money in Covid 27% cancellation customer service 22% Bad during Covid treated badly during 13% Staff lockdowns

10% False sustainability claims made More positively, a fifth (20%) trust travel firms more than they did pre-pandemic. This could be a reflection of the industry managing to respond well to a crisis. For example, Explore gained plaudits from Which? and the UK media for issuing refunds in a timely manner, and always doing the right thing by customers. Actions such as these have a lasting, positive effect on building trust. Meanwhile,

of tourists say it’s important for their company of choice to share their values With planet and community firmly in focus for the modern international holidaymaker, highlighting these as key aspects of travel offers can make trust take off.

The Travel Impact Report

Slow travel: Sharing tourists’ values Slow travel is an approach to travel that emphasises connection: to local people, cultures, food and music. It relies on the idea that a trip is meant to educate and have an emotional impact, and that the journey can be as much a part of the holiday as the destination itself. Explore provides a range of 350+ trips in over 100 countries – from cultural discovery holidays to walking and cycling trips, family adventures and foodie tours – that get completely under the skin of the destination and provide memories that last a lifetime. Every small group trip is accompanied by an expert Tour Leader who knows the destination inside out and provides an insight and a passion that greatly adds to the traveler experience. 12

Regular traveller trends in 2023 and beyond Making multiple trips

Going the extra mile

66%

expect to make 1 or 2 trips within the next year

40%

10%

of those in the US will take 5 or 6 holidays

want maximum booking flexibility from firms

Patient planner or wanderlust on a whim?

66%

plan international trips 1 to 6 months in advance

13%

in the US leave it late: the month before departure

32% crave more immersive experiences

Choosing a travel company

The Travel Impact Report

65%

say cost is an important factor in travel firm choice

45%

cite booking flexibility

24%

seek experiences that create lasting memories

32%

want a package holiday approach

20%

in the US want more solo travel experiences

Curiosity and comfort

Paying extra for added value

49%

travel abroad to see new locations

46%

are willing to pay more for end-to-end service

43%

spend time with family internationally

36%

are keen to include more secure refund options

31%

want to reset and re-energise

Solo holidays with Explore Explore’s small group tours are ideal for solo travellers. They provide the opportunity to travel solo, but also meet people and make friends. Around 61% of Explore’s bookings come from solo travellers - it is gaining huge popularity post-pandemic. Explore published 2023 research around solo travellers, finding 47% of those who have travelled solo before think it’s the best holiday they’ve ever had. Reasons given include increased confidence (69%) and empowerment (66%) experienced when travelling alone.

About Explore Worldwide: Explore has over 40 years’ experience in providing exciting and authentic small-group travel experiences from cultural trips and family adventures to walking and cycling holidays. With over 350 trips in 100 countries, Explore’s expertly-crafted itineraries combined with award-winning tour leaders, small group sizes and a commitment to responsible travel ensure unforgettable travel experiences. Explore has immersive, sustainable travel in its DNA, as a founding signatory of the Glasgow Declaration and with one of the leading Climate Action Plans in the industry. Having calculated carbon footprints for every one of its trips and all operations, Explore is now working hard to reduce those footprints, while supporting carbon removal and rewilding projects.

For more information visit explore.co.uk/sustainability