Rise of the Next-Pats

Reassured that her aunt was happy and healthy, bed and breakfast owner Philippa Benson ended the Skype call and turned her attention to her email. There was a healthy number of booking requests as well as a series of Facebook notifications.

It was 8pm. She was sitting on her veranda in the warm evening sun in the south of France, an hour ahead of England, where her aunt lived, and 12 hours behind New Zealand, her previous home and where she still had many friends and business contacts.

‘Isn’t technology just the best?’ Philippa, 56, thought as she updated her electronic reservation system, liked a post about the sighting of a rare bird near her eco-friendly bed and breakfast in Feuilla, Languedoc, and read the latest rave review by a happy visitor on TripAdvisor.

Once she was done, she switched off her computer and headed to bed as she needed to be up early to make breakfast for her international guests.

Philippa enhances an idyllic life – welcoming guests to her home in the French countryside – with the latest technology, which enables her to keep in touch with loved ones across the world and also attracts new visitors via multimedia channels. She’s a Next-Pat; a new breed of digital adopters who use technology to get past the classic ties of nationality and background, and embrace a more connected, global citizenship.

Over the past few years, we have all grown familiar with the term expats, especially in the Gulf, which has become a popular second home for millions of people of diverse backgrounds. But now, a new term is gaining currency – Next-Pat.

While expats usually move to a new country for better work or financial opportunities, or aspiring a better lifestyle, Next-Pats believe the only reason to move to a new place is to experience the life and culture it has to offer. With the internet providing easy access to the rest of the world, no place is considered remote.

Next-Pats enjoy a transnational approach to life, and they are rooted in their home country as well as the communities they adopt as home, states a new report compiled by TransferWise, a peer-to-peer UK-based money exchange service. To facilitate the research, eight academics and philosophers from the US, UK, France, Germany and Estonia joined in the survey – and analysed 2,500 people, aged between 18 and 65.

According to the report, there are four defining traits of a Next-Pat: they have a positive view of taking risk; a self-starting mentality; a belief that life is for living; and they enjoy engaging with others culturally and socially.

‘People’s lives are becoming more globalised in a really intimate way,’ John Armstrong, professorial fellow at the University of Tasmania since last year and the author of How To Worry Less About Money, told a leading British daily in September.

‘That takes people into more complex relationships with where they live in the world, where their commitments are, where the people they love happen to live, and I’m sure this is just going to grow. I don’t think that it’s technology that is driving this. It’s a much bigger thing about the human condition that’s driving it, but technology is enabling it to happen.’

It is thought that the Next-Pat trend has been fuelled by the rise of the so-called shared economy, epitomised by companies such as Airbnb, Uber and TransferWise. The first two brands have emerged to be counted among the world’s most valuable start-ups, so others are following their philosophy. Online companies along with apps designed to help with communication, sharing chores, car rentals and money lending are some features that are popular with Next-Pats.

‘The democratising power of technology and the advent of the sharing economy is changing the way we live – from how we communicate and how we manage our money to how we listen to music and how we travel,’ the report says. ‘We’re more connected and more in control.

‘By removing the barriers of cost and accessibility, technology opens up new possibilities for all of us, especially to experience the world beyond our own neighbourhood, whether we choose to do that virtually or in person.

Explaining the background to the research, TransferWise co-founder and CEO Taavet Hinrikus says: ‘Our users are people living internationally owing to work, study or play. They’re from all age groups and have different stories to tell.

‘In particular, we’re interested in how technology is driving this change – the world is opening up for people in a way we haven’t seen before.

‘We weren’t surprised by the trend itself, but the pace at which it’s growing is incredible. In a few years, our lives will look very different from how they do now, and that’s going to have an impact on society.’

Having been Skype’s first employee, Taavet is familiar with how everyday technology is used by Next-Pats continually on the lookout for an app or gadget to help them spread their wings and harness various life experiences.

‘The Next-Pat phenomenon isn’t about being connected to the internet 24/7; it’s about using technology to enable global lifestyles and experiences,’ Taavet explains.

‘So it’s almost the opposite – these are people who very much value the present and makes the most of it by utilising technology to experience new places and cultures.

‘Two key factors stemming from tech innovation have driven Next-Pat growth to date. Firstly, there’s cost – expense is no longer a barrier to living internationally. New technologies remove financial barriers when it comes to both experiencing the world from home, and international travel.

‘The second important factor is accessibility. Technology means we can now stay connected with home and with those we meet on our travels, which Next-Pats love to do.

‘As technology continues to enable people to travel inexpensively while staying in contact with their loved ones at home and further afield, the trend looks set to continue.’

Unlike expats who move abroad because of their financial or career status, there are no specific demographic traits of a Next-Pat. They are twice as likely to work, live or study overseas than the rest of the population, and do not consider geographical borders as boundaries to experience and growth.

They are also entrepreneurial (seven times more likely to embrace risk than other people), and three times more likely to see technology as providing the potential and opportunity to live or work wherever they want in the world. They care equally about local and global issues – 83 per cent of the people surveyed feel strongly about poverty in less developed nations and homelessness in their own country, and 81 per cent about getting involved in local activities.

‘What was once just for the elite is now accessible to many,’ John said. He refers to the increase in the number of people who are willing to give up a comfy life and travel the world at short notice. ‘For instance, I can sleep on people’s sofas, rent an apartment by going online – it’s easier... The key is mentality, not how much money they have.’

The phenomenon isn’t tied to one specific age group or social background, but the highest proportion (33 per cent) of Next-Pats falls into the 25-34 age bracket.

However, more than half (57 per cent) of the people in this social group are married or living as such, 38 per cent are parents, and nearly one in 10 (9 per cent) are in the 55-65 age bracket, showing that age and family commitments are no barrier to the Next-Pat lifestyle. ‘The increase in the number of Next-Pats has hit the tipping point recently, I am convinced of that,’ says Taavet.

‘You can be living next to a rice field in Bali and you will have access to a broadband connection, which means you can do work from there and stay connected to your family and friends. That wasn’t possible a couple of years ago.’

After completing a degree in European Studies and French, Philippa leapt at the chance to move to France. ‘I went for it and never looked back,’ she recalls. ‘I then moved to New Zealand, where I bought a piece of land and set up an eco-friendly luxury lodge. After nine years, I decided I wanted to move back to France, so I set up a property here.

‘Technology and online services are really crucial to the way I run my bed and breakfast. La Rassada. Almost all of my clients discover it online, whether it’s through my website, Airbnb, TripAdvisor or my Facebook page. Technology also helps me to stay in touch with my friends and family. I Skype with my 89-year-old aunt, and use Facebook to remain in touch with my younger relatives.

‘My life as it is would not be possible without all these innovations. Without them things would have been very different.’

The trend also extends far beyond the UK – Next-Pats are set to exceed half the population in the US and Estonia by 2020, and 37 per cent and 32 per cent of the adult populace in France and Germany respectively.

Unfortunately, Taavet says the report did not study the UAE.

‘We didn’t cover the UAE in our report, but the Emirates is a popular destination for British expats, given the tax breaks available for UK citizens.

‘It may well be that local expats will fit the Next-Pat aspirant demographic.

‘For aspirants, travel is all about creating better, financially secure lives for themselves and their families through hard work and smart decisions.

‘Year-round sunshine and great career opportunities in the UAE seem likely to be attractive to these globally minded citizens.’