Market Updates. United Kingdom. Louise Evans. Lisa Chamberlain
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1 Market Updates United Kingdom Lisa Chamberlain Director UK & Ireland Sales Link House, 140 The Broadway Tolworth, Surrey KT6 7 JE Tel Lisa.chamberlain@btinternet.co m Louise Evans Director UK & Ireland Media KBC PR & Marketing 3 Falmer Court, London Road, Uckfield East Sussex TN22 1HN Tel Louise.evans@kbc-pr.com Value is still an area of importance for the UK & Irish media as travelers look to make the most of their money. Participatory experiences are a good way to grab an editor s attention. Good quality photos and video content are important for print and online activity. Social media are looking for quirky & interesting market-ready products or events that will make for good tweets, etc. To showcase their product, partners should consider participation in media visits and promotions along with providing the UK office with any news that will attract the UK visitor Ongoing tour operator sales calls and marketing activity, product development, consumer promotions, FAM trips and training are the key elements of how we go about selling CRUSA in the UK. UK visitors are looking for history, iconic sites, scenic drives, culinary experiences and great shopping. Partners should consider any opportunities to get involved in promotions, fam trips and tour operator co-op activity in order to increase international business. The UK is seeing a later booking trend in that consumers are making enquiries much closer to their planned departure date than has previously been the case. Consumers are really shopping around, not necessarily to get the cheapest deal but to get the best value on offer in the marketplace. Internet continues to dominate the supply of information about holidays and travel destinations with almost 70% of UK travelers using this method to book. 1
2 Germany Maria Greiner Manager Sales & Media Claasen Communication Hindenburgstr. 2 D Alsbach Tel. 49 (0) maria.greiner@claasen.de Germans traveling a lot The U.S. is under the Top 10 destinations for German travelers and it is the long haul destination # % of the German population in 2016 booked at least one vacation with a minimum duration of 5 days. Germans continue to book nearly four months before travel. Germany has nearly 10,000 traditional travel agencies. 41 % of all trips are booked through a travel agency, 38 % online. 43 % of all booked vacations were holiday packages. Minimum vacation entitlement by law in Germany: 24 days Top 3 favorite accommodations (2016) 46 % hotels 26 % vacation home & apartments 6 % camping Favorite type of vacations Beach & vacation by the sea Recreation Nature Family Adventure Sightseeing Activities Top 5 sources of information Internet, including social media, mobile apps, etc. Catalogues of tour operators Travel agents (more important for long-haul travel with multiple trip components) Personal Experience (repeat travelers) Recommendation of friends Nonstop services to the United Airlines: FRA-IAD 2x daily; MUC-IAD daily Lufthansa: FRA-IAD 2x daily; MUC-IAD daily Condor: seasonal service FRA-BWI between May and September, four times a week (every Monday, Wednesday, Thursday and Saturday) 2
3 France Olivier Barthez Manager Sales & Media Duxin Com 4 bis rue Descombes Paris Tel olivier@duxin.com Emmanuelle Blondin Account Executive Duxin Com 4 bis rue Descombes Paris Tel emmanuelle@duxin.com Profile of French Traveler to the Capital Region Highly educated, affluent families The French visit the whole CRUSA region, from major cities to the smallest towns More & more French visitors to CRUSA are repeater travelers who want to stay longer and visit more regions within DC, MD and VA. Interests of French Travelers Small towns and local life farmers markets wineries, etc. Culture museums, art galleries, history Outdoor recreation hiking, biking, kayaking, horseback riding, etc. Cuisine the French dine in restaurant twice a day Shopping, especially at Outlet Malls! Hotels, Inns, B&Bs, no RVs or camping Markets Trends UA launched their new B787 Dreamliner on the CDG-IAD route, year-round. The USD remains strong vs. the EUR, making Canada our toughest competitor. French economy slightly improving in terms of GDP; unemployment rate is down. French families still choose the U.S. for their summer vacation, as the country is still seen as one of the most secure long haul destinations. 3
4 Brazil Daniela Bergamini Manager Sales & Media Imaginadora Alameda Imaginadora Jau, 1177, 3 andar Jardins Alameda São Jau, Paulo 1177, 3 andar Tel. Jardins São Paulo ext 12 Danielabergamini@imaginadora.com.br Tel ext 12 Danielabergamini@imaginadora.com.br What Brazilians enjoy doing while visiting the United States? 1. Shopping 2. Sightseeing in Cities 3. Theme Parks / Amusement 4. Visit national Parks and Monuments 5. Nightlife / Dancing 6. Art Gallery, Museum 7. Concert, Play, Musical 8. Historical Locations 9. Experience Fine Dining 10. Guide Tours Source: US Depart of Commerce, National Travel and Tourism Office Salaried Brazilian employees earn an average of 30 days of paid vacation per year. Most workers also receive a 13 th month salary in the end of the year and a vacation bonus. That s the reason many Brazilians wait for this period of the year to purchase their vacation travels. The decision period for the majority of travelers takes between one and three months. But because of the economic crisis, most of the Airline Companies are doing promotions at the last minute, so the travelers are taking advantage of that to book their travels 15 (or less) days before the trip. Primary Travel Periods Winter Holidays: four weeks school vacation July Summer Holidays: six weeks school vacation December to February Christmas Holidays: two weeks in December January Travel agents continue to be the primary means of booking air travels, but the online tools are growing. The OTAs represent about 20% of the sales in the Brazilian tourism market and the internet users are increasingly using mobile devices to book their travels. 4
5 China Cynthia Wang Executive - Travel Trade BrandStory T: 86 (21) Mobile: E: cynthia.wang@brandstory.asia Room 2503, No.138 Middle Huaihai Road, Shanghai Square Shanghai, China, CHINA TRAVEL MARKET SNAPSHOT The Big Picture Economic Outlook China s economy grew 6.7 percent year-on-year in 2016, the slowest pace of growth in 26 years but still within the government's target range set for the year. The government target was 6.5 to 7 percent growth for The World Tourism Organization (UNWTO) projected that China s tourism industry has contributed 11% to China s national economy and 10.25% to the country s employment in 2016, which are at similar levels as world averages. China's per capita disposable income stood at 23,821 yuan (3,469 U.S. dollars) in 2016, up 6.3 percent year on year in real terms. Yuan again USD Exchange Rate in 2016 Chinese Outbound Travel In 2016, Outbound travel also showed steady growth of 4.3% YoY to a total of 122 million outbound trips during the period. Chinese outbound visitors spent USD billion in China's outbound tourism industry is expected to see slower but steady growth in the next five years. Visits by Chinese outbound tourists are forecast to reach 150 million in 2020 from 117 million in 2015, with an estimated average annual growth rate of 5.09 percent, according to the China National Tourism Administration. 5
6 Chinese Outbound Visitors to the U.S. Chinese tourists made million overseas trips to the US as first stop of their journeys in January to August, 2016, up 15.5% year-on-year, according to data from China National Tourism Administration (CNTA). In 2016, a record of 1.3 million people booked air tickets to the United States on Ctrip. The company served in 2016 more than 160,000 Chinese tourists who traveled to the U.S. by providing package tours and other tour products. CHINA NORTH AMERICA 2016 CAPACITY SHARE BY TOP 10 CARRIERS 1. Air China 2. China Eastern Airlines 3. United Airlines 4. China Southern Airlines 5. Air Canada 6. Delta 7. Hainan Airlines 8. American Airlines 9. Hawaiian Airlines 10. Sichuan Airlines and Xiamen Airlines (Source: OAG schedules analyser) Key China Trends As of January 2017, 61 countries and districts offer visa-free travel for Chinese citizens however, only about six percent of Chinese possess a passport. Chinese aviation market Overview 2016 will be the first year in which carriers have added more capacity in international markets than domestically, with OAG data for 2016 showing an additional 19m international seats compared to 13m extra domestic seats. International capacity growth has averaged 12% each year for the last five years while the domestic market has grown by an average of 8% per annum. Despite a moderating economy, China remains one of the fastest growing business travel markets in the world. In 2016, total business travel spending is expected to grow 9.2 percent reaching $317.9 billion USD. On average, a high net worth individual (HNWI) in China has been to 10 countries, according to a Hurun Report. Chinese HNWIs travel abroad 3 times per year. Each trip takes 10 days and costs about 50,000 yuan. The number of ultra-high net worth individuals (UHNWI) in China reached 1.34 million, an additional 130,000 compared to 2015 as of May 2016 according to Hurun Research. Holidays and Seasonality The Golden Weeks (National Day and Chinese New Year) are major seasons for Chinese tourists travel abroad as well in
7 Public holidays for 2017 New Year 31Dec - 2 Jan Chinese New Year Qingming Festival Labor Day (May Day) Dragon Boat Festival Mid-Autumn Festival &National Day 27 Jan 2 Feb 2-4 Apr 29 Apr 1 May May 1-8 Oct China Travel Trade Landscapes China National Travel Service Group Corporation (CTS Group), now China's largest state-owned travel group resulting from the merger of HKCTS and CITS. The future directions of the two companies are defined as such that CITS will focus on tour operation and duty-free stores while parent CTS Group will concentrate on investments and strategies for cultural tourism, travel finance and property-related business. Alibaba rebranded its online travel platform from Alitrip to Fliggy to re-focus on Chinese millennial. Ctrip appointed Jane Jie Sun as CEO and a director while chairman and former CEO James Jianzhang Liang will serve as executive chairman and focus on Ctrip's innovation and expansion strategies. Top 10 travel agencies in 2015: Beijing UTour International Travel Service Co., Ltd. Shanghai Spring International Travel Service Co., Ltd China CYTS Tours Holding Co., Ltd. CAISSA Touristic Beijing Branch Shanghai Ctrip International Travel Service Co., Ltd. China Bamboo Garden International Travel Service Co., Ltd GZL International Travel Service Ltd Bravolinks Integrated Marketing Co., Ltd. China International Travel Service Limited, Head Office Guangdong China Travel Service Co., Ltd (Source: China National Tourism Administration) Top OTAs: Ctrip Tuniu LY.com Top MICE agencies: CITS MICE CYTS MICE CTS MICE 7
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