2008 / 2009 UK & EUROPEAN MARKETING UPDATE
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1 2008 / 2009 UK & EUROPEAN MARKETING UPDATE Presented by Carol Hay Director of Marketing UK & Europe Caribbean Week, New York 9-12 June 2009
2 ROUND-UP OF 2008 External Factors XL Airways, UK third largest tour operator group collapsed in September 2008 bmi announced plans to pull out of the Caribbean in April 2009 Government to increase APD in 2009 / 2010 Unemployment continues to rise in the UK to 1.86 million
3 ROUND-UP OF 2008 Internal Factors Strong Caribbean participation at 29 th WTM London Five Journalist recognised at Annual Host and Reward the Media held during WTM Shared stand at International Luxury Travel Market - ILTM Cannes CTO European websites launched
4 EUROPEAN VISITOR ARRIVALS TO THE CARIBBEAN by source market 2008 Source: CTO Statistics April 2009, The Bahamas Tourist Office and the Cuba Tourist Board April NB: Figures excludes the British Virgin Islands, Dominica, the French West Indies, Haiti, St. Kitts & Nevis, Turks & Caicos and Venezuela, and are not all for the same time period.
5 EUROPEAN VISITOR ARRIVALS TO THE CARIBBEAN by destination 2008 Source: CTO Statistics April 2009, The Bahamas Tourist Office and the Cuba Tourist Board April NB: Figures excludes the British Virgin Islands, Dominica, the French West Indies, Haiti, St. Kitts & Nevis, Turks & Caicos and Venezuela, and are not all for the same time period.
6 THE FIRST QUARTER 2009 Soaring fuel prices Global recession Currency exchange rates Increased unemployment 7.1% (2.2 million people out of work in the UK for the first quarter of 2009)
7 THE SECOND QUARTER 2009 Swine Flu outbreak Impacted heavily on European tour operators with charter flights to Mexico Airline Passenger Duty (APD)
8 AIRLINE PASSENGER DUTY The tax was introduced in the 1980 s by Minister Ken Clark as a Green Tax. The Tax is currently set a four different rates: 10 - Lowest class of travel 20 - Economic European Area 40 - Other Destinations 80 - Other Destinations
9 THE REVISED APD The new system will be based on banding, determined by the distance from London to the capital city of an individual country. The Caribbean is placed in Band C because capitals are miles from London The entire USA (Alaska, Hawaii and California) is based on Washington which is 4,000 miles!
10 BANDING Band & approx Distance in miles from In the lowest class of travel (Reduced rate) In other than the lowest class of travel* (Standard rate) Band A (0-2000) Band B ( ) Band C ( ) Band D (over 6000) *(However, if only one class of travel is available and that class provides for seating in excess of 40 then the standard (rather than the reduced) rate of APD applies)
11 CTO s STRATEGY FOR THE FIRST SIX MONTHS 2009 Developed full programme of trade and consumer activities Cultivated good support from the public and private sector through joint participation at European events Implemented new initiatives both online and offline Maintained strong media relationships resulting in good P.R. coverage
12 TWO MAJOR PUBLICATIONS Distributed to over 50, 000 travel trade and trade and consumer exhibitions in UK & Europe Distributed to 1.25 million homes in the U.K. and also trade and consumer exhibitions
13 MAJOR TRADE & CONSUMER FAIRS 2009 Vakantiebeurs, Holland Holiday and Travel Show, Manchester Holiday World, Dublin FITUR, Madrid Destinations, London BIT, Milan ITB, Berlin TUR, Sweden Dive Shows, London
14 SPECIAL OFFERS FLYER Circulated to over 25,000 consumers and 6,000 travel agents and homeworkers Self-financing
15 TRAVEL AGENTS NEWSLETTER AND TRAINING PROGRAMME Agents Newsletter now available online Circulated to over 1000 agents on a bi-monthly basis 870 agents are currently enrolled in the Caribbean Training Programme
16 NETWORKING Media Reception held on 2 June saw an unprecedented 62 journalist and 49 representatives (representing 39 chapter members)! The Annual Caribbean Ball to be held at The Dorchester Hotel London, on 18 June is almost sold out! Annual Golf tournament will be held on 30 June, and is a highly regarded competitive networking event attended by all sectors of the industry. Self-financed by chapter members
17 REPRESENTATION UK BGB Communications Richard Rigby Debbie Hindle
18 2009 CTO Board Members
19 UK CHAPTER THINK TANK Chapter members benefited from a dynamic and timely presentation by Tom Buncle (former Chief Executive for Visit Scotland and International Marketing Director for VisitBritain). The members were presented with a number of questions regarding the current position of the Caribbean brand; their buoyant participation drew the following responses:
20 CARIBBEAN STRENGTHS Climate and geography People Location/access air and sea ports Language Cost Political stability Culturally comfortable for Europeans Diversity of cultures and geography Eco-focus Historical links Music/events/festivals
21 CARIBBEAN WEAKNESSES Adverse weather Perception of crime Location and access Perception of service Negative stereotyping Infrastructure
22 COMPETITORS STRENGTHS Asia service Mediterranean proximity, climate and culture Indian ocean fly and flop Australasia adventure Florida location/cost/comfort Mexico culture South America culture, diversity Africa culture, adventure, authenticity
23 CHANGING CUSTOMER PROFILE Ten years ago More wealthy, older, discerning, sophisticated, cultured Now Affluent, discerning and niche plus more mainstream
24 CHANGING CUSTOMER PROFILE FUTURE More knowledgeable Less tolerant and demanding higher standards More mainstream travellers More families More green and environmentally aware More independent Niche travellers
25 IMPROVING THE CARIBBEAN IMAGE Communicate warmth of the Caribbean in addition to sun and sand imagery e.g. music, people and culture. Communicate diversity of the region e.g. mountains, activities, island hopping, boutique to five-star hotels. Communicate a customer experience which resonates throughout the region e.g. Change your Rhythm.
26 CARIBBEAN BRAND VALUES Each table was charged with suggesting five words with which they would describe the Caribbean to a friend. The five words were then placed into four categories: Vibrant colourful, warm seas, sun, beach, tropical, exotic, alive Chilled Laid back, escapism, relaxing, liming Rhythm the vibe, cool, romance, music Diverse Mountains, beaches, islands, natural, safe, cuisine, authentic, paradise
27 EUROPE CTO continues to create opportunities for our membership due to the excellent representation in Europe: Holland Germany France Italy Spain
28 REPRESENTATION HOLLAND Aviareps/ BrouwerBetist Rene van der Flink Mincke Pijpers Marthe van Leeuwen
29 REPRESENTATION- GERMANY INEX Communications Rolf Nieländer Julia Juckel
30 REPRESENTATION FRANCE AND ITALY INTERFACE TOURISM Annabelle Simon Delphine Camara Philippe Mugnier Gael de la Porte du Theil
31 REPRESENTATION SPAIN Moonshine Marketing Monica Bonilla Fernando Aroca Chris Pomeroy
32 EXPANDED EUROPEAN COVERAGE Continuously updating European websites (in French, Dutch, Italian, German and Spanish) to ensure that they remain current and interesting in European markets. Sub contracted representation in Scandinavia on a project only basis to promote the Caribbean in Northern Europe. Representation in France, Italy, Spain, Germany and Holland continues to raise the market profile of the Caribbean
33 EUROPEAN TRADE VISITS TO SCANDINAVIA Stockholm, Sweden 15 Caribbean exhibitors Attended by nearly 100 tour operators and journalist from the trade and consumer press Copenhagen, Denmark 16 Caribbean exhibitors Attended by over 100 delegates
34 THE NEXT SIX MONTHS JULY DECEMBER 2009 How can the European team work together with chapter members to overcome the challenges? How can we better leverage our funds, which are eroded by the current exchange rates? How can we meet the needs of our diverse membership? How can we enlist the involvement of a wider audience? How can we stay dynamic in one of the most challenging market environments in recent times?
35 UNITED KINGDOM UK Summer Networking Event focussing on tour operators Northern UK Unite Caribbean (mini powwow) Courses for the Caribbean London Courses for the Caribbean Ireland CTO Week UK Scottish Roadshow (Taking in Scottish Wedding Show)
36 UNITED KINGDOM UK Rum Experience European Marketing Forum 30 th World Travel Market 4 th Host and Reward the Media (more categories introduced) Update Travel Fax Manual Launch On-line Training Programme
37 EUROPE France Top Resa (Paris) Italy - TTG Incontri (Rimini) France ILTM (Cannes)
38 EUROPE Europe has so much more to offer! Somehow we need to leverage our funds to gain greater visibility There is the opportunity for increased destination features, tradeshow participation, roadshows, on-line training, press trips and fam trips We have a strong team in Europe and now is the time to go after the European market with increased aggression and $
39 CARIBBEAN PAVILION CONCEPT CTO is currently reviewing proposals for cost effective stands. At a recent meeting with NTO s it was agreed that this could be seen as a viable option for international shows in 2009 and UK shows from 2010 (as stand space was already committed for 2009 i.e. WTM)
40 CONCEPT 1
41 CONCEPT 2
42 CONCEPT 3
43 CONCEPT 4
44 CONCEPT 5
45 CONCEPT 6
46 IN CLOSING We pledge to Change our Rhythm By developing a strategic calendar that reflects the goals and objectives of our membership By leveraging our funds to multiply the returns to our membership By aggressively targeting Europe and presenting new market opportunities By living and promoting Caribbean Brand values!
47 Thank You On behalf of CTO UK & Europe
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