Outlook for Leisure Travel and Attractions

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1 University of Massachusetts Amherst Amherst Tourism Travel and Research Association: Advancing Tourism Research Globally 2014 Marketing Outlook Forum - Outlook for 2015 Outlook for Leisure Travel and Attractions Carroll Rheem Brand USA Follow this and additional works at: Rheem, Carroll, "Outlook for Leisure Travel and Attractions" (2016). Tourism Travel and Research Association: Advancing Tourism Research Globally This Event is brought to you for free and open access by ScholarWorks@UMass Amherst. It has been accepted for inclusion in Tourism Travel and Research Association: Advancing Tourism Research Globally by an authorized administrator of ScholarWorks@UMass Amherst. For more information, please contact scholarworks@library.umass.edu.

2 BRAND USA Insights & Initiatives Marketing Outlook Forum

3 The Travel Promotion Act signed into law March 2010

4 Roles in the US Travel Industry PROMOTE Lead the nation s global marketing effort Communicate US entry and security processes Create a welcoming experience for International tourists TRAVEL & TOURISM INDUSTRY ADVISE ADVOCATE Advocate for policies to remove travel barriers Communicate benefits of travel to policymakers Provide industry networking opportunities Advise the Secretary of Commerce on Issues Affecting the Travel Industry

5 The Lost Decade Credit: NASA/GSFC & AVHRR

6 Amplify The or Lost strengths? Decade Or address our weaknesses? Reinvigorate historically strong markets? Or focus on emerging ones? How do we balance domestic interests and international commercial opportunities? Smaller and more frequent ads, or fewer and louder? Is it worth sacrificing reach for efficiency? How much should we invest in long term initiatives?

7

8 Market Prioritization The Spaghetti & Meatballs Model

9 100 million visitors by % CAGR 8

10 Path to 100 Million Arrivals Argentina Australia Brazil Canada Chile China Colombia France Germany India Ireland Italy Japan Korea, Republic Of Mexico Netherlands Russian Federation 5000 Spain Sweden Switzerland 0 United Kingdom Venezuela AR+CO+VZ

11 Path to 100 Million Arrivals 6000 Argentina Australia Brazil Chile China Colombia France Germany India Ireland Italy Japan Korea, Republic Of Netherlands Russian Federation Spain Sweden Switzerland United Kingdom Venezuela AR+CO+VZ

12 USA Arrivals 2013 vs % 180% China 160% 140% Russia India 120% 100% 80% Brazil South Korea Colombia Mexico 60% 40% France Germany Japan Canada Australia 20% UK 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

13 Total International Departures 2013 vs % 180% China 160% 140% 120% Russia India 100% 80% Brazil South Korea Colombia 60% France 40% Germany Japan Canada Mexico 20% Australia UK 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

14 Marketing Initiatives in 33 markets Brand, co-op, or trade in markets contributing over 90% of inbound travel to the USA Australia Brazil Canada Chile China France Germany India Japan South Korea Mexico Taiwan UK Austria Hong Kong Ireland Italy New Zealand Russia Switzerland UAE Argentina Belgium Belize Costa Rica El Salvador Guatemala Honduras Netherlands Nicaragua Singapore Spain Sweden

15 Balanced Approach to Marketing & Advertising Budget Allocation Economic Indicators Commercial Trends Cultural Trends Media Trends

16 Global Focal Points Social Focus Trade Focus Specialized Inspiration Airline/Capacity Focus China China Japan Latin America Brazil UK Mexico Australia UK Germany Mexico Japan 15

17 BRAND USA Initiatives Great Outdoors

18 Example: German Consumers Weighted Perception of US Characteristics Motivators Activity options (mountain climbing, diving) 38 Landmarks and sightseeing options (historical sites, museums) 50 Leisure attractions (dining, shopping, nightlife) 46 Natural features/landscapes (mountains, rainforests) 55 Ease of travel to the destination (length of flight, number of stops) 38 Quality of beaches 44 Appeal of local culture (food, music, etc.) 41 Reputation/popularity as a travel destination 35 AVERAGE 43 Demotivators Inconvenience of travel to the destination (no direct flights) 13 Distance from home 5 Crowdedness 24 Visa requirements/entry procedures 16 Safety concerns/political instability 22 Lack of visitor resources/support in the destination 10 Unfamiliarity with local customs/language 3 High prices 23 AVERAGE 14 <~25 = Not a factor ~25 - ~50 = A contributing factor ~50+ = A strong factor Question: When considering the following countries as holiday destinations, how would you rate each on the following characteristics? Please rate each characteristic on a scale from 1 to 5 (1 being poor, 3 being adequate and 5 being excellent); How would you rate each characteristic that might discourage you from considering it. Please rate each characteristic on a scale from 1 to 5 (1 being not at all discouraging/not applicable, 3 being moderately discouraging and 5 being extremely discouraging). Base: Germany intercontinental travelers (N=1089) Source: Brand USA Custom Study

19 BRAND USA Initiatives Project Phoenix

20 Research & Analytics: Special Projects Project Phoenix Dreamcatcher Explorer Narrator Consumer focus groups on perceptions of the USA and the DMO value proposition Quantitative study focused on guiding website development Creative development workshops

21 Dreamcatcher Objectives General travel to USA What triggers action? What triggers desire? How can we deliver value? Where do DMOs fit in? What problem can we solve? DMO specific

22 Dreamcatcher Markets Australia Brazil Canada China Germany India Japan Mexico UK Methodology 4 Sessions 2 Markets 4 Sessions 2 Markets 6 Sessions 3 Markets 6 Sessions 3 Markets 4 Sessions 2 Markets 4 Sessions 2 Markets 4 Sessions 2 Markets 4 Sessions 2 Markets 4 Sessions 2 Markets Market Sydney Melbourne Rio de Janeiro Sao Paulo Toronto Vancouver Montreal Beijing Shanghai Guangzhou Frankfurt Munich Mumbai Delhi Tokyo Osaka Mexico City Guadalajara London Manchester Details 90 minutes sessions Recruiting for 8 completes per group Held on one or two days per city 9 countries 20 markets 40total focus groups

23 Celebrity test Research Coop Programs

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