LINKING AVIATION DEVELOPMENT & TOURISM DEVELOPMENT. Karin Gert Nielsen, CEO/President Atlantic Link

Transcription

1 LINKING AVIATION DEVELOPMENT & TOURISM DEVELOPMENT Karin Gert Nielsen, CEO/President Atlantic Link

2 SHOW Your Successes # 1 Long Haul Destination Danish Travel Award Presentation 2. Case Studies 3. Implementation in Lapland

3 Atlantic Link Karin Gert Nielsen, CEO/Managing Director of Atlantic Link VISION Be the leading sales, marketing and PR agency in the Nordic Region for Tourism Development MISSION Increase business and revenue for our clients YOY 3 DEPARTMENTS Sales B2B Marketing & Partnerships PR & digital Social Media

4 Our clients

5 OUR WORLD IN AN EVEN BIGGER WORLD

6 LONG HAUL TRAVEL FROM SCANDINAVIA & FINLAND

7 SAMPLE flights to the US each week - reaches 17 US destinations - with over 100,000 seats. These flights will also transport a significant amount of Americans to the Nordic Region!!

8 CASE STUDIES 1. U.S Virgin Islands, San Francisco, 2012

9 U.S. VIRGIN ISLANDS - BACKGROUND US Virgin Islands Two islands, two airports, two key markets St. Thomas Primary tourist destination #1 Cruise destination in the Carribbean (800 port calls annually) St. Croix secondary destination DK #1 international market

10 US Virgin Islands, St. John, St.Thomas, St Croix

11 FROM IDEA TO EXECUTION MISSION Weekly direct flights between Denmark and U.S. Virgin Islands operated by charter VISION Increase tourism to 25,000 by 2012 Based on a diversified traveler profile (families and 3-generation travel) OBASTACLES One or two stop service from Europe to U.S. Virgin Islands No same day connections in USA (outbound am departures, inbound pm departures) Travel profile (senior travelers, not affluent in English)

12 EXECUTION 2007: Atlantic Link becomes representation office for U.S. Virgin Islands Department of Tourism : Researched and initiated a plan for establishing a direct flight Identified and contracted with charter operator Bravo Tours Lobbying, partnerships and engagements with the airports, Bravo Tours and Department of Tourism in U.S. Virgin Islands, Embassy, trade organisations and other stakeholders Engaged other tour operators to support the programs already in the market Promotion through PR and TV show Pitched idea of TV Christmas calendar to production company Organized and supported hotel and ground transport during research trip and filming.

13 ISLAND OF THE PIXIES (Christmas Calendar TV show) We brought Santa to the Caribbean to tell our story

14 ROI RESULTS Predicted increase in arrivals to U.S. Virgin Islands: 30% year over year Actual increase over the past three years: 129% General increase in visitors to U.S. Virgin Islands: 7000 (2007) 24,000 (2012).

15 ARRIVAL FIGURES From Denmark to USVI

16 INVESTMENT SOLUTION Bravo Tours (Matka-Vekka & Lomamatkat) started direct flights CPH STX Billund Airport, incentive package (landing, passenger fee reduction) Promotional activities through PR and TV show FINANCE Season Departures PAX Financial support $ Cost per tourist $ 2011/12 Weekly , /13 Weekly , /14 Bi-weekly , /15 8 departures , /16 Weekly (21 dep) ,000 (Norwegian) 150,000 (Tourism marketing) 50

17 AND THEN WHAT HAPPEND? Weekly charter 2011/12 bi-weekly 2012/13 & 2013/14 8 departures in 2014/15 Not a good trend REASON The risk factor for the charter operator (100% guaranteed seats) Reduction in marketing support ($300,000 to $150,000) based on passenger volume and frequency

18 The Value chain had to be adjusted to the need for a succesful direct flight, and spread the risk = more agencies selling on allotment basis 50% of seat capacity had to be guaranteed

19 2014 Include other source markets for scheduled flights connecting with Scandinavian hubs Conversation started with Norwegian

20 BACKGROUND Increase in Caribbean cruise business from all Scandinavian countries Development of Norwegian route network and connection with Jet Blue (hub SJU) to serve the Carribbean Three markets, OSL, STO, CPH to feed both cruise (SJU) and STX = one stone three birds Flipside Caribbean is not an online destination (85% book via travel agency to US Virgin Islands, full packages) Hotels operate manually, very little online booking access, and packages only available through tour operators Criteria from Norwegian 50% of the seats had to be guaranteed by tour operators before considering financial support

21 BACKGROUND Result Norwegian had to accept that without the travel industry to sell and guarantee the product, this will not be succesful and we/dot will not support this Tour operator round table meeting 5 agencies incl. Bravo Tours guaranteed 50% of the total seats for 15/16 operation MS $150,000 to Norwegian and 150,000 to tour operators In my dreams Year round: travel agencies receive incentive packages for selling summer months (low season caribbean, high season Scandinavia) = Result / dream: create demand for a succesful year round route

22 NORWEGIAN TRIANGLE FLIGHT, CPH AS HUB LGW OSL STO CPH SJU STX

23 VALUE CHAIN FOR A SUCCESFUL OPERATION Hotels Airline Airports (CPH, SJU, STX) Local DMC s, transportation, incoming sightseeing etc OTA s Travel agents, Tour operators Destination Cruise Line Port Authorities, Border control, immigration Its all about financial support and who signs the bills

24 SAN FRANCISCO VALUE CHAIN, 100% It s a two way street COMMERCIAL FLIGHT GOAL Daily direct route Copenhagen-San Francisco with Scandinavian Airlines (SAS), April Forecasts predict the service will carry 62,500 passengers / 125,000 seats annually. STAKEHOLDERS INVOLVED Cruise port Copenhagen & Malmö, American cruise agents in the SF Bay area Global Connect, Visit Denmark, Visit Sweden, Innovation Norway, CPH, SFO, San Francisco Travel, Visit California, American Chamber of Commerce, Embassies and many others EXECUTION Organized a three-day fam trip in cooperation with SAS and other marketing activities Supported through newsletters, press releases and social media for San Francisco Travel, SFO Airport and Visit California.

25 Tourism organisations PATA, Pacific Area Tourism Association Hotels Airline ASIA READY? Embassies, chamber of commerce Local DMC s, transportation, incoming sightseeing etc Lap Land Airports Airports Asia Business communities, organisations, influencers OTA s Travel agents, Tour operators Cruise Line Port Authorities Border control, immigration

26 ASIAN OVERNIGHTS IN NORDIC COUNTRIES Asian overnights in Sweden overpassed Finland s overnights last year Overnighs from Asia in the Nordic countries 2014 and change compared to ,2 % ,2 % ,1 % ,3 % TOP 10 SOURCE MARKETS IN THE NORDIC COUNTRIES AND FINLAND S MARKET SHARE Ruotsi Suomi Norja Tanska 1. GERMANY 8 % 2. UK 19 % 3. RUSSIA 75 % 4. TheNETHERLANDS 9% USA FRANCE ITALY CHINA SPAIN 13% 21 % 15 % 19 % 17 % 10. JAPAN 42 %

27 CHINESE OVERNIGHTS IN FINLAND Metropolitan Area Coast and Archipelago Lakeland Lapland

28

29 China Natural sceneries (eg greeneries, blue sky) Public security (eg low crime rates, safe for tourists) Clean environment (eg clean streets, low air pollution) Convenience of arrival/departure A good variety of food (eg food catered to my taste, local cuisine to try) Source: Mintel/Holiday lifestyles China,

30

31 READY for more visitors? Combine cruise destinations/experience with Lapland experience: Asia/US Lapland Nordic Asia/US High season for your target markets could be low season in your region Involve the travel industry, in- and outbound Transparency Storytelling Bring Asian Santa to Lapland to tell your story