MONTHLY MARKET REPORT GERMANY, AUSTRIA, SWITZERLAND july 2014

Transcription

1 MONTHLY MARKET REPORT GERMANY, AUSTRIA, SWITZERLAND july 2014

2 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 2 CONTENTS 3 dedicated partner ACTIVITY 3 MARKETING 4 Collateral Distribution 5 MARKETING ACTIVITY VISIT CALIFORNIA 5 ONLINE MARKETING AND TECHNOLOGY UPDATE 5 CONSUMER NEWSLETTER 6 latest Web Visitation Statistics 7 Search Engine Marketing 9 COMMUNICATIONS UPDATE 9 Highlights Press clippings 10 DREAM BIG PITCHES 10 crisis Management 11 Travel trade update 11 Online Training Program Statistics (YTD) 11 Collateral Distribution 12 wholesale MARKEt 14 airline activity 14 air traffic statistics 15 Airline and Aviation News 19 competitor activity 24 economy 24 economic indicators 25 exchange rate 25 economic news

3 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 3 dedicated partner ACTIVITY marketing CANUSA Working on partner proposals. CRD Promotion Mein Nordamerika Nora send proposals and we passed it on to all partners. Faszination Fernweh Manu sent proposals to the partners and we are currently working on the various contents. VUSA Roadshow Germany Palm Springs, Mammoth Lakes, Yosemite/ Mariposa and San Francisco confirmed their participation. VUSA Switzerland We send out a proposal to all partners. Trans Amerika Reisen We sent out a promotion proposal to all partners. Hotelplan/ Skytours We passed on a proposal to all partners.

4 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 4 Collateral Distribution California Information Packages: 242 (Public 215) Touristikdienst Truber Schwarzwaldstr Stockstadt/Main Germany When sending brochures, please make sure to include a proforma invoice saying printed matter, no commercial value, for promotional use only!

5 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 5 MARKETING ACTIVITY visit california online marketing and TECHNOLOGY UPDATE Consumer Newsletter The new 3-step welcome mailing went live on July 18. From now on, it will be sent to each new subscriber automatically to approach them with information when they are most interested upon opt-in. The birthday mailing went live on July 27 with an e-blast to all subscribers, followed by a personal message on their birthday (to those who have given us their birth date). Results will be available in next months report. The next regular consumer newsletter will be sent in August. The newsletter continuously reaches good results, which are exceeding the benchmarks for leisure and travel B2C newsletters in Germany (22.4% opening rate and 5.64%. unique click rate). Feb Mar May Mails sent 6,132 6,114 6,115 Bounces 49 (0.80%) 54 (0.88%) 44 (0.72%) Recipients 6,083 6,060 6,071 Opening rate 29.64% 28.03% 26.11% Click rate % gross (recipients) 9.14% 7.85% 5.86% Click rate % net (openers) 32.27% 28.69% 23.19% Opt-out rate % gross (recipients) 0.5% 0.35% Not tracked

6 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 6 Latest Web Visitation Statistics There were 12,517 visits from 10,251 unique visitors with 31,813 page impressions on the German website in June. The Google AdWords campaign was the largest traffic source and contributed 55.4% of all traffic. Organic traffic was 35%. 76.8% were new visitors and 23.2% returning visitors. Apr May June Visits 13,355 13,945 12,517 Unique Visitors 10,895 11,543 10,251 Page Impressions 34,523 34,862 31,813 Average Time on Site 00:03:06 00:02:47 00:02:23 Average Page Views

7 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 7 Search Engine Marketing The German Google AdWords campaign was optimized regularly according to ads and keyword performance and was the largest traffic source for the German consumer website. The campaign comprised 13 campaigns (including one on each California region and California in general) with a total of keywords and 250 ad groups. Besides general keywords and ad copy on California, it thus covered all of California s twelve regions. The German Google AdWords campaign was terminated on June 30, Account performance June 2014 Impressions 351,825 Clicks 6,888 CTR 1.96% Investment 2, (approx. $ 3,000) Average CPC 0.32 (approx. $ 0,43) Average Position 2.3 Campaign performance June 2014

8 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I june 2014 I Page 8 Performance History 2014

9 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 9 communications UPDATE Highlights Press Clippings General Interest Magazine: Stern I Headline: Santa Monica - Live where others go on vacation I Circulation: 750,810 I Reach: 7,110,171 I Ad value: $419,465 Travel Magazine: Food and Travel I Headline: 48 Hours in San Diego I Circulation: 32,000 I Reach: 126,400 I Ad value: $42,987 Regional Daily Newspaper: WAZ Westdeutsche Allgemeine I Headline: The Hard Rock Hotel in Palm Springs I Circulation: 346,335 I Reach: 633,791 I Ad value: $298,880 Regional Weekly Newspaper: Sonntag Aktuell I Headline: Some like it hot in San Diego I Circulation: 614,111 I Reach: 2,130,963 I Ad value: $298,648 Special Interest Magazine: ADAC Motorwelt I Headline: California Dreaming I Circulation: 13,960,561 I Reach: 14,239,772 I Ad value: $82,579

10 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 10 Dream Big Pitches in German and Swiss Media Lake Tahoe Floating Ramp main story in: VIEW General Interest Magazine I Circulation: 104,928 I Reach: 251,827 I Ad value: $44,160 Stern Magazine I Circulation: 926,231 I Reach: 1,278,198 I Ad value: $84,141 Gala Magazine I Circulation: 314,443 I Reach: 754,663 I Ad value: $32,775 Neon Magazine I Circulation: 178,169 I Reach: 245,873 I Ad value: $32,337 First Magazine (Switzerland) I Circulation: 7,500 I Reach: 28,000 I Ad value: $6,500 Crisis Management No negative coverage or events were observed.

11 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 11 Travel trade UPDATE Sales Calls and trainings at Canusa Sales Offices Canusa is a North America specialist tour operator with their head office in Hamburg as well as six sales offices throughout Germany. In the month of july I visited six of the seven offices to do a product training, educate their sales staff and update them on the latest news. During one training session, which lasted at least one hour, I showed many different and impressive pictures to convey the right impression of the state with all its highlights. Furthermore I provided important sales arguments to convince the teams of our destination. The presentation concluded with the hints on our travel trade portal as well as our Online Training. The feedback from all offices is very positive and thankful. Even staff who has traveled to California before could get their take aways and feels better prepared for their next customer consultations. In addition every office confirmed that California is their absolute number 1 destination. In 80% of all customer consultations, clients state they want to travel to the American Southwest spending the major portion of the trip in California. Online Training Program Statistics (YTD) Number of all users (with no activity + active + completed): 2,303 Number of users completed: 797 Collateral Distribution (July 2014) German Visitors Guides: 923 Official State Maps: 964 Road Trips: 140

12 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 12 wholesale market DER Touristik: Lower long-haul prices for next winter DER Touristik s specialist holidays division is reducing long-haul holiday prices for next winter after low growth this year. The Frankfurt-based division expects moderate revenue growth of about 2% to a new record of 1.8 billion this year. Managing director Michael Frese said bookings for Dertour, Meier s Weltreisen and ADAC Reisen had been quieter since March after a very strong start to the year. Many Germans had booked holidays very early this year while there had been many disruptive factors in recent months, including the conflicts in Thailand, Ukraine/Russia and now Israel. The overall market is barely growing. We re satisfied with this result, he said. The three specialist tour operators have a 3% rise in long-haul bookings this year, with strong demand for the Indian Ocean (+17%) and the Caribbean (+22%). The latter region has benefitted in particular from lower prices. The main short- and medium-haul growth destinations are Tunisia (+70%), Morocco (+38%) and Portugal (+30%), and sales for Greece and Spain are also higher but bookings for Germany, Austria and Turkey have dropped compared to last year and Egypt has slumped by 35%. For winter 2014/15 Frese is aiming for moderate growth, driven by lower prices resulting from the strong euro and weak dollar, along with new offers. Price reductions include South Africa (-12%), Canada (-10%), Thailand (-8%), the Caribbean, North and South America (-3% to -5%). Among product changes, Dertour now offers study tours in two separate brochures, Meier s is adding long stays in Thailand and more capacity to the Indian Ocean and the European skiing programme has been expanded. We re looking ahead positively to the winter and expect we can add another 2-3% (in revenues) on top next year, Frese concluded. TUI Germany: More long-haul and budget offers TUI Germany is expanding long-haul holidays, exclusive offers and also budget holidays for the coming winter season. The German market leader, whose programme presentation coincided with the announcement of the TUI AG TUI Travel merger plan, did not disclose any figures about its current sales trends, however, for legal reasons related to the proposed merger. In terms of destinations, demand is strong this summer for Greece, which is heading for another record, Turkey and the Balearics while unsurprisingly bookings for Thailand, Kenya and Egypt are weak at present.

13 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 13 Highlighting winter 2014/15 trends, Germany CEO Christian Clemens said TUI will offer more long-haul holidays and more concept hotels, and also expand its budget portfolio. Prices for Spain will rise slightly this coming winter while long-haul destinations, apart from the USA, will be generally less expensive. Prices for Egypt have also been reduced to stimulate demand. The main product development for the coming winter is a further expansion of the long-haul programme to some 6,000 hotels in 70 countries. Holidays in long-haul destinations are getting more important and more people can afford them, explained Steffen Boehnke, head of the long-haul programme. The new flights from Hamburg to the Caribbean (Cancún and Punta Cana) will be operated in cooperation with British sister carrier Thomson Airways. The winter sun guarantee of at least 20 C has been extended to cover the Canary Islands, Cape Verde Islands, Tunisia and Morocco. Guests can re-book to an alternative destination or a later date if cooler temperatures are forecast one week before departure. TUI has also decided to scrap its low-profile budget brand Discount Travel and bundle all budget offers through 1-2-Fly while L Tur will remain responsible for last-minute deals. The product portfolio of 1-2-Fly will expand about 10% in terms of flight capacity and increase to some 6,000 hotels, with several new destinations. TUI s COO Oliver Dörschuk said the budget brand would also market bargain offers more aggressively. We will take a giant leap forwards with 1-2-Fly, he declared.

14 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 14 airline activity Air Traffic Statistics Source: Federal Statistics Office Germany (2014)

15 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 15 airline and aviation news Fraport Says Frankfurt Airport s June Traffic Rises Fraport AG said it has welcomed 5.6 million passengers at its Frankfurt Airport or FRA home base in June 2014, a 3.3 percent improvement year-on-year. In addition, Fraport announced that 27.8 million passengers were served at its Frankfurt Airport for the first half of 2014, a 2.4 percent increase year-over-year. Munich sets new record of 19 million passengers for first six months Munich Airport stayed on course for growth in the first half of 2014: with 18.7 million passengers, the airport set a new record for the first half o The number of aircraft movements, at approximately 185,000, was 1.7 percent below the previous year s figure. This reflects the ongoing fleet upgrade efforts of various airlines that have invested heavily in larger aircraft to boost their profitability. The one percent increase in passenger numbers in Munich in the first six months mainly resulted from gains in international traffic: With some 2.9 million passengers a gain of 5 percent the intercontinental segment showed above-average growth compared with the previous year. The number of travelers using flights between Munich and continental destinations was up 1 percent to more than 11.2 million passengers. By contrast, traffic within Germany was down by approximately 1 percent to 4.5 million passengers. Austria s Vienna International Airport passenger numbers up 4% in June Vienna airport operator Flughafen Wien enjoyed an increase by 3.5 percent year-on-year in terms of passenger numbers in June, to 2.1 million. From January to June, the number of passengers passing through the airport gates rose to million in total. Transfers through the airport decreased 2.2% year-on-year and the number of local passengers increased by 5.5% year-onyear. Frankfurt Airport Welcomes China Southern Airlines China Southern Airlines (CZ) inaugurated its new thrice weekly air service between Guangzhou (CAN), China, and Frankfurt (FRA) Germany s largest aviation gateway and a partner city of this metropolis located in the Pearl River delta region of southern China. The afternoon flight departs on Tuesdays, Thursdays and Saturdays from Frankfurt at 14:15 local time for Guangzhou with a stopover in Changsha (CSX), central China, a brand new passenger destination in the global FRA network. On the new route, China Southern will operate Airbus A jets featuring a fourclass configuration for about 250 passengers. Flight CZ 331 to FRA (CZ 332 in the other direction) will have a total travel time of about 19 hours for the entire Guangzhou Changsha Frankfurt journey.

16 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 16 Fraport expertise successfully applied at International Airports in Saudi Arabia Fraport has completed multi-year management contracts at Jeddah s King Abdulaziz International Airport (IATA Code = JED) and Riyadh s King Khalid International Airport (IATA Code = RUH) in Saudi Arabia where the German airport company has successfully applied wide-ranging management and consulting expertise over the past six years (from mid-june 2008 to mid-june 2014) via its Fraport Saudi Arabia Ltd. subsidiary and the Frankfurt Airport home base. During this time, traffic has grown substantially at Saudi Arabia s two largest international aviation gateways, with JED and RUH together recording a total of almost 39 million passengers in Frankfurt Airport offers free round-the-clock Internet access Fraport is expanding its free Wi-Fi access at Germany s largest airport from 60 minutes to 24 hours. Frankfurt Airport s (FRA) round-the-clock free Wi-Fi service is available immediately, in time for the peak summer travel season. Lufthansa Group announced figures for the first half of 2014 Although fewer flights were completed, Lufthansa Group was still able to keep the number of passengers stable over the period. The airlines in the Lufthansa Group carried a total of 50 million passengers in the first half-year 2014, 0.8 per cent more than in the same period last year. The number of passengers carried by Lufthansa and Germanwings rose by 1.0 per cent year on year to 36.3 million passengers. The average load factor for the two airlines aircraft was almost the same as last year at 77.3 per cent (-0.1 percentage points). Available capacity (seat-kilometres available for sale) at Lufthansa and Germanwings went up from January to June by 0.6 per cent and sales by 0.5 per cent. In the first half-year, 8.2 million passengers flew with Swiss International Air Lines, which was 0.4 per cent fewer than in the same period last year. The passenger load factor still came to a high 81.4 per cent (-0.9 percentage points). Austrian Airlines carried 5.4 million passengers, 1.4 per cent more than the year before. The load factor at Austrian Airlines climbed by 1.8 percentage points to 77.4 per cent. Lufthansa Lowers Profit Expectations Lufthansa reported it will no longer achieve its 2014 and 2015 operating targets. The primary reason for the lowered expectations was the problem of a shortage of passengers and cargo, coupled with an over-abundance of seats and space on its planes in its European and US business.

17 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 17 Lufthansa to sign joint venture deal with Air China Lufthansa signed a deal with Air China during Chancellor Angela Merkel s state visit to Beijing in beginning of July. Lufthansa and Air China planned to set up a joint venture which would allow them to share revenue on certain Asian routes by selling tickets for each other s flights. The report did not specify the routes involved. The German carrier has been in talks with Air China for months as it seeks to strengthen its position in Asia. Lufthansa Group receives top scores at the Business Traveller Awards At the Business Traveller Awards, the airlines of the German aviation group - Lufthansa, Swiss and Austrian Airlines swept the category for the Best Airline for Business Travellers in Germany and Europe. For the third time the award for the Best Website for Business Travellers went to the Lufthansa website at For the second consecutive time, the Group s subsidiary Swiss took first place in the Best Airline for Business Travellers in Germany and Europe category, followed by Lufthansa in second place and Austrian Airlines in third. The readers of Business Traveller magazine additionally placed Swiss in an outstanding third place as the Best Airline for Business Travellers for global travel. Lufthansa Group received a total of five awards. airberlin starts off the summer with more passengers In June 2014, airberlin transported a total of 3,250,891 passengers, i.e. slightly more than in the corresponding month of the previous year. Overall, over the past month, passengers traveled 4.8 billion kilometers in airberlin s global flight route network. Since airberlin slightly increased the available seat kilometers to approximately 5.8 billion in monthly comparison (+1.0 percent), capacity utilization for June 2014 reached the high level of 84.0 percent, almost reaching the level obtained in the previous year (84.9 percent). For the first half of 2014, airberlin welcomed a total of 14,633,797 passengers on board, i.e. 0.2 percent more than in the corresponding period of the previous year, and reached the high capacity utilization rate of 82.2 percent. The available seat kilometers amounted to billion and the revenue passenger kilometers reached billion. 3.3 litres: airberlin leading the way on fuel efficiency airberlin presented their progress on energy efficiency in aviation and on the latest developments in sustainability and environmental protection. With fuel consumption of 3.3 litres per 100 passenger kilometres, airberlin is leading the way when it comes to eco-efficiency. Between 1994 and 2013 the carrier reduced the specific fuel consumption per passenger kilometre by a total of 25%. airberlin s environmental protection commitment is an integral part of the corporate philosophy.

18 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 18 The most recent measure taken by airberlin has been the introduction of improved processes for carrying water on its A fleet. The water tank is no longer filled to maximum as standard but rather individually optimised for the requirement of each flight. As a result of this new procedure, airberlin is saving over 800 tonnes of fuel a year. That equates to the annual CO2 emissions of about 1000 cars on Germany s roads. For its commitment to environmental efficiency, airberlin has received numerous awards over the past few years. In 2013 airberlin won the award Silver Eco-Airline of the Year presented by the US industry magazine Air Transport World. Turkish Airlines expands it presence in Germany With existing services to Frankfurt, Munich, Düsseldorf, Hamburg, Hannover, Cologne, Stuttgart, Nürnberg, Berlin, Bremen, Leipzig and Friedrichshafen, Turkish Airlines adds flights to Münster as its 13th destination in Germany. Münster Osnabrück International Airport (FMO) marks the 258th airport served by Turkish Airlines. Münster flights will be operated 4 times per week on Tuesdays, Wednesdays, Fridays and Saturdays in both directions.

19 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 19 competitor activity Australia: Joint campaign with Singapore Airlines launched in Switzerland Tourism Australia and Tourism Northern Territory, together with Singapore Airlines, have launched a cooperative advertising campaign in the Swiss market. The campaign, which commenced on June 13, included a 24-page print supplement in the Swiss paper Tagesanzeiger featuring inspiring content on Australia and a list of tour operators specializing in selling the destination, as well as an advertorial on the Tagesanzeiger website. More information can be found on the German Tourism Australia campaign website:

20 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page % Middle-earth, 100% Pure New Zealand wins prestigious PATA Gold Award 2014 Tourism New Zealand s 100% Middle-earth, 100% Pure New Zealand campaign has once again been recognized on the world stage, with its latest win of the prestigious Pacific Asia Travel Association (PATA) Grand Award, Marketing. As an international marketing body it is incredibly encouraging to receive acknowledgement of our campaign activity from fellow international tourism bodies and professionals - and we are extremely proud to receive this award, says Kevin Bowler, Chief Executive Tourism New Zealand. The annual PATA Gold Awards recognize tourism organizations that have made outstanding contributions to successfully promote the travel industry in Asia Pacific. This year, more than 180 entries from 66 organizations and individuals worldwide were received. Kevin says the latest win reinforces the strength of the campaign, which has resonated strongly across key offshore markets - driving increased awareness and preference for New Zealand as a holiday destination alongside significant visitor growth. Our 100% Middle-earth, 100% Pure New Zealand campaign continues to go from strength-to-strength, and it is fantastic to receive such significant acknowledgment as we gear up to launch our activity to leverage the third and last of The Hobbit movies - set to be released later this year. Launched in 2012, the campaign leverages the huge media and consumer attention that The Hobbit Trilogy has and will continue to achieve, and converts that attention into travel to New Zealand - the country where the movies were made. Developed in partnership with The Hobbit moviemakers Warner Brothers and Weta Workshop, 100% Middle-earth, 100% Pure New Zealand has been the primary marketing campaign for Tourism New Zealand in its key offshore markets. The award will be formally presented to Tourism New Zealand on September 19 at the PATA Gold Awards Luncheon as part of the PATA Travel Mart in Cambodia. Calling all Fans of The Hobbit Movies and Middle-earth New Zealand is about to become the talk of fantasy enthusiasts around the world, with the call going out globally to find fans keen to take an ultimate Middle-earth journey to New Zealand. Gearing up for the December 17, 2014, release of The Hobbit: The Battle of the Five Armies, Tourism New Zealand and Air New Zealand, in conjunction with New Line Cinema, Metro- Goldwyn-Mayer Pictures and Warner Bros. Pictures, announced The Hobbit Fan Fellowship Contest before 6,500 fans at Comic-Con International on July 25, an entertainment and comic convention in San Diego. The contest will decide 75 lucky winners who can each take a friend to New Zealand flying with Air New Zealand, the airline to Middle-earth. The first two winners have already been picked from the crowd at Comic-Con following the announcement. They will spend a week journeying

21 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 21 to famous filming locations and tourist hotspots throughout New Zealand, culminating in the ultimate experience for every Hobbit fan - a private screening of the final film with Sir Peter Jackson himself. Travelling alongside the fans will be international travel media from Tourism New Zealand s key visitor markets, who will document the winners amazing journeys through New Zealand. Tourism New Zealand Chief Executive Kevin Bowler says Tourism New Zealand is incredibly excited to be involved in the competition. For the past two years and two films, Tourism New Zealand has been working to maximize the international attention New Zealand draws from its starring role in The Hobbit Trilogy and convert that into travel. We ve had some great successes to date and over the coming months will continue to show how the fantasy of Middle-earth can become reality in the form of a New Zealand holiday. We want to ensure New Zealand s association as the home of Middle-earth lives on long past the release of the final film. The first two winners were chosen from the Comic-Con crowd - Kris McMeans, 25, from Austin, Texas and Morgan Burgener, 18, from San Diego, California. McMeans, who was in line overnight to get into the Hall H panel, said she has wanted to go to New Zealand for years. This is going to be one of the most amazing experiences of my life. Ever since I was 12 years old I wanted to go to Middle-earth, and now New Zealand has become Middle-earth. Thanks to Peter Jackson bringing the books to life, now we can travel Middle-earth. For more information on The Hobbit Fan Fellowship Contest visit TheHobbitFan- Contest.com

22 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 22 airberlin and Brand USA present their joint aircraft airberlin and the official marketing organisation for the United States of America, Brand USA, are strengthening their collaboration and jointly unveiled an Airbus A320 with special livery at Dusseldorf Airport. At the ceremony, Tade Peters, Vice President Marketing Communications airberlin, and Alfredo Gonzalez, Senior Vice President Global Market Developments Brand USA, together with guest of honour Stephen A. Hubler, US Consul General in Dusseldorf, officially inaugurated the aircraft. At the event, and together with their team of coaches, the players and cheerleaders of the Dusseldorf Panthers have come together to be the official partner of the aircraft, which will be flying within the European route network of airberlin. For airberlin, the USA is a strategically important core market. airberlin flies nonstop from Germany to five destinations in the USA and this summer has also increased the frequency of five different routes. Wow : Abraham Lincoln promotes Illinois as miniature figure The tourism campaign of the Illinois Office of Tourism, that has already achieved cult status in the US, is coming to Germany. In three spots the agency JWT promotes the state of Illinois with Abraham Lincoln as brand ambassador. Although the legendary President does not say as much as Wow!, Aaaah! and Mmmmh! the spots are a full hit. In an entertaining way the animated Abraham Lincoln presents the diversity and attractions of his home state. In the spot Sei fasziniert! (Be fascinated) Mini-Abe climbs rocks and compliments waterfalls, museums and skyscrapers with a Wow. Another clip with the title Sei Mmmhh Yam Yam Yam! praises culinary treats and Sei ein Abenteurer! (Be an adventurer) shows what

23 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 23 visitors can experience in Illinois from an unusual perspective, e.g. drive the legendary Route 66. In Germany the campaign runs on TV programs such as the news channel N24 and in digital media. Billboards and advertising at airports are planned. JWT Frankfurt has adapted the campaign, that will run until the end of July, for the German market. In the US Mini-Abe is already famous he will also achieve cult status among US-Fans in Germany soon, says managing director Bernd Adams. The mascot has already proven it is well worth it. Inquiries have risen by 78% since the launch of the campaign in fall And during the Academy Awards #MiniAbe also had a prominent appearance during the commercials. In response to the nomination of the movie Abraham Lincoln. Visit Orlando: Discounts and information for the tourism industry The tourism board Visit Orlando will launch their yearly discount campaign for employees of the tourism industry soon. The Travel Industry Deal Season will take place from August 15th to September 30th. Orlando is in the middle of its largest tourism expansion in its history. The Travel Industry Deal Season makes it easier for tourism partners to get to know the many news in our continuously developing destination, says Danielle Courtenay, Chief Marketing Office of Visit Orlando. The tourism board grants discounts of up to 50% on hotels, attractions, restaurants and theme parks. In addition, Visit Orlando has launched an online training for the tourism industry. The Online Travel Academy provides information on the destinations and selling tools.

24 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 24 ECONOMY Economic Indicators GDP 1st Quarter 2014: trillions EUR ($ trillions) +/- to previous Period: % GDP Growth Consumer Price Index June 2014: Change on the corresponding month of the previous year: % Unemployment Rate June 2014: 6.5 % Change on the corresponding month of the previous year: %

25 MONTHLY MARKET REPORT I GERMANY, AUSTRIA, SWITZERLAND I july 2014 I Page 25 EXCHANGE RATE As of July 25, 2014: 1 US$ = 0,7439 EUR 1 Euro = 1,3443 US$ The exchange rate in comparison 2012, 2013 and 2014 (EUR for 1 US$): ECONOMIC NEWS Foreign businesses contribute nearly 10% to Germany s foreign trade in 2013 In the course of 2013, nearly 800,000 businesses in Germany were engaged in foreign trade. The Federal Statistical Office (Destatis) also reports that roughly 685,000 businesses imported goods from other countries, while just under 340,000 businesses exported goods. A total of 10,700 businesses whose headquarters were located abroad contributed significantly to Germany s foreign trade. The trade turnover (imports and exports) of those foreign businesses amounted to 190 billion euros (9.5% of Germany s total foreign trade turnover of 1,990 billion euros).

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