Driving Customer Satisfaction

Driving Customer Satisfaction Getting the most out of the VE Brand & Satisfaction Tracker Jim Eccleston, TNS RI Travel & Tourism Destinations Conference 20 th October, 2011

Today s Coverage The context performance of the domestic tourism market Tracker Current domestic holiday behaviour Tracker Satisfaction and its drivers Tracker Growing visitor commitment to destinations Tracker development possibilities

The context performance of the domestic tourism markets

2011 a promising first five months Trips taken in England Jan-May Trips (Millions) Bednights (Millions) Expenditure ( Millions) 2010 2011 % Change 2010 2011 % Change 2010 2011 % Change Holidays 15.012 15.483 +3.1% 45.505 47.575 +4.5% 2,862 3,129 +9.3% VFR 14.551 14.422-0.9% 35.947 36.272 +0.9% 1,286 1,354 +5.3% Business 5.983 6.030 +0.8% 12.274 12.821 +4.5% 1,332 1,373 +3.1% All Tourism 36.669 37.181 +1.4% 96.326 101.469 +5.3% 5,647 6,023 +6.7%

Holiday trips, Jan-May 2011: What s driving the 470,000 additional trips? Largest net increases Largest net decreases

Apr-06 Jun-06 Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08 Jun-08 Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Trips (millions) 70 Long term trends Domestic Holiday Trips 60 50 40 30 20 Major recovery throughout 2009 but slow decline during 2010. Slight upward trend again during the first few months of 2011. Levels still significantly higher than pre-2009. 10 Rolling 12-month period ending.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May GB Residents Holidays: January 2008 May 2011 GB Outbound GB Domestic 2008 2009 2010 2011

47.8% 53.7% 54.0% 52.4% 53.1% 63.0% 61.7% 59.6% 55.3% 64.5% 59.9% 58.1% 57.5% 65.4% 52.2% 46.3% 46.0% 47.6% 46.9% 37.0% 38.3% 40.4% 44.7% 35.5% 40.1% 41.9% 42.5% 34.6% GB Residents Holidays: Quarterly shares GB Outbound GB Domestic Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Part Q2 2008 2009 2010 2011

VE s Brand and Satisfaction Tracker

VE Brand and Satisfaction tracker: What is it? What? Who? An online survey collecting information about brand England, VE campaigns and visitor satisfaction (running since October 2009) A representative sample of English residents who are holiday takers (at least one night in paid accommodation, anywhere in the world) and nonrejectors of England How Many? 100 per week, or 5000 over 12 months What s New? Survey refreshed and re-launched in July 2011 following tender Addition of the Attract brands reflects England's best known destinations based on visitor numbers and consumer perception information available about 40 destinations

Potential of the Tracker......to measure performance at destination level UNDERSTAND & MAINTAIN: Characteristics and profile of visitors at the destination level BETTER UNDERSTAND SATISFACTION DRIVERS: How are you performing how could we increase satisfaction? GROW YOUR VISITOR MARKETS: Characteristics and profile of potential visitors those of your competitors

Current domestic holiday behaviour

Profiling holiday takers to domestic destinations We have chosen three very different destinations to show how we can provide the information you need to profile current visitation to domestic destinations: SEASIDE CITY COUNTRYSIDE

Profiling holiday takers to domestic destinations Seaside Destination - Brighton City Destination - Manchester Countryside Destination - Lake District AGE: 18-34 55% 37% 37% 35-54 28% 42% 40% 55+ 17% 22% 23% KIDS IN HOUSEHOLD: Any kids 38% 32% 31% no kids 63% 68% 69% SOCIAL CLASS: ABC1 77% 77% 71% C2DE 23% 23% 29% HOLIDAY TYPE: A short break (1-3 nights) 74% 92% 61% A mid-length (4-7 nights) 24% 8% 37% A longer holiday of 8+ nights 2% 0% 3% Base Oct- 09 Jun 11 Trip takers last 12 months

What type of activities are undertaken whilst on holiday? Seaside Destination - Brighton City Destination - Manchester Countryside Destination - Lake District Went shopping 55% 65% 40% Explored a small town 29% 9% 60% Explored the countryside 14% 13% 72% Explored a large town / city 40% 62% 21% Went to the beach / seaside 59% 4% 15% Visited a castle/stately home/other historic site 12% 9% 37% Outdoor leisure pursuits (e.g. walking, cycling) 15% 6% 49% Visited a museum or art gallery 18% 29% 20% Visited a garden 14% 5% 24% Attended cinema, concert, theatre 18% 41% 9% Base Oct- 09 Jun 11 Trip takers last 12 months. Activities top ten most popular overall

What accommodation do they stay in? ACCOMMODATION TYPE: Seaside Destination - Brighton City Destination - Manchester Countryside Destination - Lake District Bed and breakfast / guest house 25% 10% 29% Hotel 51% 70% 22% Caravan 1% 5% Camping 1% 6% Rented house or flat 3% 4% 16% Holiday camp / village 2% 1% 6% STAR RATING: 1 star 2 star 7% 5% 3% 3 star 28% 30% 42% 4 star 30% 32% 23% 5 star 1% 3% 2% Unsure of rating 26% 19% 23% Base Oct- 09 Jun 11 Trip takers last 12 months

Drivers of satisfaction in the destination Back to Contents

TRI*M measuring the visitor experience Going beyond traditional measures of satisfaction Satisfaction with the visitor experience across two sets of measures, trackable over time: Headline Satisfaction Index Understand what s driving satisfaction Key Performance Indicator amongst last 12 months visitors to benchmark and monitor the strength of visitor retention Identifying action areas for improvement: Satisfaction levels with specific elements of the tourism product High Customer Retention 90 86 90 78 79 70 50 Low Customer 30 Retention Segment 1 Segment 2 Segment 3 Segment 4 As the number of responses increases over time, this data will be replicable at the destination level

Visitor Experience TRI*M Index OVERALL ENGLAND 4,862 interviews: October 2009 August 2011 Overall Performance 85% excellent/ very good 90 70 TRI*M Index: Likelihood to Revisit 76% definitely/ probably 86% definitely/ probably Likelihood to Recommend 30 50 92 61% much/ slightly better Competitive Advantage

Improving Visitor Satisfaction Levels in 2010 more variable so far in 2011 High Visitor 105 Experience 100 95 90 92 92 94 93 92 92 92 91 92 92 93 94 94 96 95 95 90 91 91 94 94 93 85 80 75 Low Visitor 2009 2010 2011 Experience Overall Oct - Nov - Dec - Jan - Feb - Mar - Apr - May - Jun - Jul - Aug - Sep - Oct - Nov - Dec - Jan - Feb - Mar - Apr - May - Jun - Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug

The visitor experience varies widely by destination... Northumberland 100 Other Devon Lake District Peak District Cornwall Destinations Conference, Bristol, 20 th Isle of Wight October 2011 108 86 Bournemouth & Weymouth Driving Customer Satisfaction getting the most from VE s Brand Torquay & Satisfaction Tracker 97 107 81 Lancashire Coast 89 Somerset Manchester 85 86 Cheshire 93 North Yorkshire 105 Yorkshire Dales 106 Gloucs & the Cotswolds 94 Bristol & Bath Other Dorset 85 89 105 York 96 101 Yorkshire Coast 98 76 Birmingham Hampshire 89 London 95 Kent Brighton 94 81 Norfolk 94 Suffolk 91

...and broken down by destination types SEASIDE DESTINATIONS COUNTRYSIDE DESTINATIONS CITIES Base: Jul-Aug 2011 data

Seaside destinations - Key Strengths driving up satisfaction Welcoming and friendly people Very high levels of customer service Accommodation that offers value for money Good quality accommodation Good quality food, drink and dining Clean and tidy environment A place where I feel safe and secure Clean and well-maintained beaches Opportunities to eat/drink local food and produce? Variety of accommodation to choose from that suits my needs Easy to find useful information about the destination when planning the trip

Seaside destinations - Key Weaknesses driving down satisfaction Wide range of attractions and things to do Good range of water-based/beach activities

City destinations - Key Strengths driving up satisfaction Opportunities to visit museums/galleries and contemporary arts Opportunities to see famous buildings and monuments Good quality accommodation Good quality food, drink and dining Wide range of attractions and things to do Easy to find useful information about the destination when planning the trip Variety of accommodation to choose from that suits my needs Good range of shopping opportunities Easy to book your trip/different parts of your trip in advance A destination that doesn't take too long to get to A destination that is easy to get to by public transport

City destinations - Key Weaknesses driving down satisfaction Attractive/well maintained town/city centre Clean and tidy environment Clear signposting that helps you find your way around the destination Very high levels of customer service Availability of festivals, music, sporting and cultural events

Countryside destinations - Key Strengths driving up satisfaction Unspoilt countryside A place where I feel safe and secure Variety of accommodation to choose from that suits my needs Welcoming and friendly people Easy to find useful information about the destination when planning the trip Good quality accommodation Interesting towns and villages to visit Clean and tidy environment Very high levels of customer service

Countryside destinations - Key Weaknesses driving down satisfaction Clear signposting that helps you find your way around the destination Good value for money generally Accommodation that offers value for money Wide range of attractions and things to do Availability of reasonably priced car parking Easy to get around by public transport

Identifying the markets to help grow your destination

Why is aiming for destination commitment so important? Committed visitors to your destination: Are less price sensitive Will go out of their way to visit your destination Tend to ignore competitor destinations discounts or promotions Have a lower likelihood of defecting than other visitors Tend to give most of their share of holidays to your destination Need less persuading to make repeat visitation Are more likely to be enthusiastic about your advertising Are more likely than others to respond negatively to competitors advertising

There are four key stages to destination commitment in the market: Current visitors: Committed to your destination 4 Strongest relationship with the destination Maintenance strategy Current visitors: Uncommitted to your destination 3 More likely to look at alternatives Address perceived barriers Non-visitors: Open to your destination Non-visitors: Aware of your destination but not available 2 1 Haven t visited your destination at all/recently but are open to being acquired - also attracted to other destinations Reinforce what this group finds attractive about your destination in communications Prefer another destination May be available later on but now is not the time Would require significant communications effort to attract this group to you

How do we measure commitment to English holiday destinations? Overall destination rating How do people who are aware of your destination rate it? Attitude to alternatives How do other destinations compare: how are they perceived? Involvement in the category How important a decision is destination choice: how much does it matter for this category? Ambivalence Are there many, few or no reasons to change from destination currently visiting?

The current domestic landscape in order of commitment Committed Uncommitted Open Aware Unavailable Visitors (past 2 years) Non-visitors London Lake District Devon Cornwall Yorkshire Dales Blackpool Norfolk Dorset York Kent Manchester Birmingham Isle of Wight Cotswolds Brighton Somerset Bournemouth Bath 11 9 7 9 5 3 23 17 18 15 13 15 4 5 2 3 2 1 5 3 3 2 2 3 13 12 12 10 11 12 8 9 9 10 9 8 21 35 34 34 33 19 27 36 37 29 17 14 32 39 31 36 28 37 44 40 41 42 49 64 56 48 49 58 70 74 55 49 57 52 61 53 Base Jul-Aug 2011)

A large proportion of open non-visitors to capitalise on for each destination Committed Uncommitted Open Aware Unavailable Visitors (past 2 years) Non-visitors Peak District Portsmouth Cambridge Yorkshire Moors New Forest Liverpool Bristol Scarborough Oxford Stratford upon Avon Leeds Northumberland Chester Newcastle upon Tyne Nottingham Skegness Wiltshire Durham Suffolk Lincoln Warwick 2 2 2 3 2 1 1 2 2 1 1 2 1 1 9 9 8 7 7 8 8 6 7 7 6 6 6 6 1 5 1 4 15 05 13 13 13 25 25 42 38 37 20 27 27 31 32 20 31 29 24 25 23 31 26 26 21 29 47 65 65 52 55 72 64 65 61 60 73 62 64 70 70 72 64 69 70 75 68 Base Jul-Aug 2011

Who are open non-visitors? They haven t visited your destination at all or recently (past 2 years) Are attracted to your destination and have started forming a relationship with it alongside other destinations Easiest group of non-visitors to shift into visiting your destination and then to commitment to your destination The way to attract these people is to reinforce what this group finds attractive about your destination in communications

Profiling the open non-visitors We have chosen the same three destinations to show how we can provide the information you need to target these non-visitors who are open to your destination: SEASIDE CITY COUNTRYSIDE

What are the demographics of the non-visitors open to these destinations? Open to: Seaside Destination - Brighton City Destination - Manchester Countryside Destination - Lake District AGE: 18-34 46% 41% 39% 35-54 33% 32% 33% 55+ 21% 27% 28% KIDS IN PARTY: Any kids 31% 35% 34% no kids 69% 65% 66% SOCIAL CLASS: ABC1 67% 72% 60% C2DE 33% 28% 40% Base Oct- 09 Jun 11 Trip takers last 12 months

At what point is there potential to target these open non-visitors? Open to: HOLIDAY TYPES: Seaside Destination - Brighton City Destination - Manchester Countryside Destination - Lake District England short break taken (last 3 months) 50% 45% 44% England long break taken (last 3 months) 23% 21% 19% HOLIDAY PLANNING: Planning a day trip 27% 17% 32% Planning a short break 58% 65% 46% Planning a mid length break 26% 32% 28% Base Jul-Aug 2011)

And how do these open non-visitors feel about England generally for holidays? Seaside Destination - Brighton Open to: City Destination - Manchester Countryside - Lake District Agreement with statements about England Delights and surprises 24% 18% 19% Is no hassle 20% 14% 23% Makes me feel proud of what our country has to offer 30% 21% 35% Is interesting to explore 39% 27% 37% Has a sense of excitement and adventure 15% 9% 19% Offers a range of choice of different types of breaks 34% 29% 30% Has beautiful countryside 45% 33% 49% Has good places to stay 29% 30% 34% Is good for families with kids 26% 18% 30% Is good for couples 30% 24% 36% Is good for people my age 26% 20% 27% Is good value 16% 15% 23%

Destination Booster

How you could get even more from the Tracker: Destination Booster VisitEngland are currently developing a Destination Module for the brand tracker This will allow individual destinations to buy in to the VE brand and satisfaction tracker, to fund c. 5 minutes of additional questions which wil Provide imagery data for individual destinations (i.e. what image do visitors and non-visitors have of the destination? What are the perceived barriers to visiting?) Increase the base sizes for the satisfaction module (interview all those having visited in the past 2 years, not just those whose most recent trip was to the destination) To be cost efficient, the module will need to be consistent for all participating destinations VisitEngland currently working with a pilot group of 5 destinations to refine and agree content Proposals for the agreed approach will then be made available to all destinations, likely to be late this year / early next year Costs will depend on numbers participating and final specification, but likely to be in the region of 6,000 per year

Thank You!.