2008 UK & EUROPEAN MARKETING UPDATE

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1 2008 UK & EUROPEAN MARKETING UPDATE Presented by Julia Hendry Director of Marketing UK & Europe Annual Caribbean Tourism Summit, Washington DC June

2 2008 OFF TO A GOOD START Full programme of trade and consumer activities Good support from the public and private sector New initiatives both online and offline Good P.R. coverage First quarter sales positive Good advance bookings for winter 2008/2009 2

3 EUROPEAN VISITOR ARRIVALS 400, , ,000 TO THE CARIBBEAN by source market , , , ,000 50,000 0 United Kingdom France Germany Spain Italy Holland Sweden Other Source: CTO Statistics supplied 17 June 2008, the Bahamas Tourist Office, June 2008 and the Cuba Tourist Board [UK & Ireland figures only], June

4 600, ,000 EUROPEAN VISITOR ARRIVALS TO THE CARIBBEAN by Destination , , , ,000 0 Dominican Republic Barbados Cuba Jamaica Antigua & Barbuda St. Lucia Curacao Bahamas Grenada Trinidad & Tobago Source: CTO Statistics supplied 17 June 2008, the Bahamas Tourist Office, June 2008 and the Cuba Tourist Board [UK & Ireland figures only], June

5 CTO UK & EUROPE 2008 SNAPSHOT OF ACTIVITIES TO DATE 5

6 RELEASED - 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 Self-financed through advertising 6

7 ORGANISED - EUROPEAN TRADE VISITS Paris, Milan & Moscow Attended by 35 public and private sector exhibitors Attended by 250 trade visitors First joint Caribbean trade initiative to Russia Cost effective way for exhibitors to reach wide audience Time efficient for visitors to gain wide product knowledge and contacts Self-financed by exhibitors 7

8 RAISED PROFILE AT THE MAJOR TRADE & CONSUMER FAIRS Vakantiebeurs, Holland BIT, Milan FITUR, Madrid ITB, Berlin TUR, Sweden WTM, London Dive Shows, London & Birmingham Destinations, London Holiday World, Dublin Holiday and Travel Show, Manchester ILTM, Cannes 8

9 FACILITATED - NETWORKING The Caribbean Ball The Dorchester Hotel London, a complete sell out. Meet the Media Events informal networking with the press for public and private sector members. Chapter Chin Wags informal networking events attended by all sectors of the industry. Golf tournament competitive networking event attended by all sectors of the industry. Self-financed by chapter members 9

10 EXPANDED EUROPEAN COVERAGE Introduced new representation in Paris to raise profile in the French, Italian and Spanish source markets. Sub contracted representation in Moscow on a project only basis to explore new emerging market. Sub contracted representation in Scandinavia on a project only basis to promote the Caribbean in Northern Europe. 10

11 DEVELOPED - IMAGE LIBRARY One stop shop for media and trade for high res Caribbean images. All member countries represented. (still awaiting Venezuela, St. Baths, Martinique & Bermuda) Search facilitated by theme & destination. Factsheets on each destination included. Back office management enables tracking of visitors, destinations and themes. 11

12 ONE STOP SHOP CARIBBEAN IMAGE LIBRARY 12

13 TRACKING - IMAGE LIBRARY 13

14 BUILDING A DATABASE Competitions Publications Viral games Generated approximately 20,000 addresses 14

15 EUROPEAN LANGUAGE SITES French Italian Spanish Dutch German 15

16 ENCOURAGED FEEDBACK INDUSTRY THINK TANK (ALL SECTORS) 16

17 RISING TO THE CHALLENGES IN 2008 Strong competition from other destinations Economic slowdown Seasonality Shorter lead in times Dollar budgets/resources Airlift Leveraging funds Diverse membership Reaching all stakeholders Getting commitment How can the Chapter work together 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 get the involvement of a wider audience? 17

18 EXERCISE 1 WHAT WE DID Brainstorm - Prioritised in order of importance five key areas which the UK Chapter members, both public and private sector believed will have most impact on business in

19 EXERCISE 2 WHAT WE DID Brainstorm - Deliver 5 key activities (and how they can be funded) the UK Chapter can introduce into the 2008 Calendar of Activities to address the key challenges. Prioritised in order of importance. 19

20 FEEDBACK IN ORDER OF IMPORTANCE 1. Economy 1. Increased cost of living 2. Credit Crunch 2. Airlift 1. Green lobby / Carbon Footprint 2. Lack of airlift / sustainability of aircraft schedules 3. Competition 1. Perceived value for money 2. Awareness of Caribbean region 3. Strong promotion of competitor destinations 4. Technology 1. Online availability 2. Internet marketing capabilities 3. Adapting to the growth of e-commerce 5. Late Bookings (last minute) 1. Lates and reduced pricing devaluing destinations Destinations less exclusive to regular visitors 20

21 FEEDBACK 1. Brand Caribbean 1. Need for consistency 2. Product differentiation 3. Promotion of brand by members in all marketing collateral 2. Research 1. Understand the customer profile 2. Defined e-commerce strategy 3. Training on the internet & in e-commerce 3. Aviation Committee 1. Develop an airline committee to support future growth and sustain current airlift 2. Airline seminar/conference requested 4. Niche Tourism 1. Develop Diaspora Tourism 2. VFR Market targeting third generation, colleges encourage gap year in the Caribbean 3. Increase marketing of niches 5. Utilising Celebrity PR s Aspirational awareness 21

22 ACTION Brand Caribbean Raise profile Promote usage of logo to members and travel agents; encourage usage in all promotions BGB press release on strengthening the brand Encourage use of celebrity PR (BGB) Seek out partners to leverage advertising spend Research Conduct consumer survey Ecommerce Organise ecommerce and web 2 training event for members Recruitment drive for online members 22

23 ACTION/cont. Aviation Increase awareness and participation in routes Solicit charter airlines for membership Feedback regional initiatives Introduce airline sub committee Niche markets Develop new niche market supplements and micro sites Diaspora work more closely with black press and encourage membership 23

24 IN CONCLUSION 24

25 Quote: Anyone who has previously never considered a cruise has become a prime target for holidaying at sea. Quote: Come on, land resorts, at least give our industry something to worry about. Jo Rzymowska Royal Caribbean Cruise Line CRUISING 25

26 COMPETITION This year 22 properties will open in Dubai adding 10, 000 rooms with a further 93, 867 planned by Dubai can become as popular as Florida in the theme park market. UK visitor numbers to rise from 700,000 a year to 1.4 million by

27 INCREASED FARES/CUT CAPACITY Fares will rise and capacity will shrink this winter. Airfares will rise in line with fuel and it is only a matter of time before that affects demand, say airline bosses. 27

28 THE ENVIRONMENT & SOCIALLY RESPONSIBLE TRAVEL In 2006, British travellers took over a million responsible holidays (Mintel Responsible Tourism Report, January 2007) 28

29 BUDGET 1200 $Budget Exchange Rate Sterling Amount 200 ( 000s) $Budget Exchange Rate Sterling

30 Thank you from the London Office Representing UK & Europe 30

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