GERMANY & VISITBRITAIN CAMPAIGNS Holger Lenz, Manager Central Europe 2 nd November 2016 1
Key UK inbound market facts Visits' 3,249,000' To'UK:'%,'rank' 9.0%' 3 rd '' Spending' To'UK:'%,'rank' 1,378,000' 6.2%' 3 rd '' Source: International Passenger Survey, 2015 2
Context of German travel market In 2015 Germans took more than 97 million trips abroad with at least one overnight, an increase of 4% YoY. This volume of outbound trips is forecast to exceed 116 million such trips by 2020. Domestic trips were 20 million in 2015 Germans rank globally in 3rd place for international tourism expenditure with more than US$ 77.5 in 2015 following Chinese and US travellers Their most visited destination was France, followed by Austria, Spain and Italy in 2015. The UK ranked in 8th place in the same year The German economy is generally speaking fairly robust and remains on track to grow at a solid pace in the near term before slowing in the medium term. The unemployment is currently on a record low and consumer spending up Sources: Oxford Economics, UNWTO, Bank of England, FUR Reiseanalyse 2016 2017 is election year in Germany Germany is in the Eurozone. GBP has since the EU referendum depreciated sharply against the Euro; in the month ending 31st October 2016 the cost of GBP was down 15% YoY: GBP1 = EUR1.17 68% of Germans think that Britain is welcoming to visitor post-brexit, improved value is outweighing negative perception of welcome Difficult year for German tour operators as classic tour operator destinations were suffering Very strong bookings for green destinations as they were perceived to be safe Mixed year for German Britain operators Strong year for domestic travel 3
Regional spread and journey purpose Regional Spread: German %-share of nights in 2015 6%' 6%' 11%' 4%' 3%' 3%' 1%' 0.1%' 4%' 13%' Sources: IPS by ONS, FUR Reiseanalyse 16%' 32%' London' South'East' Scotland' South'West' North'West' East'Of'England' Yorkshire' West'Midlands' Wales' East'Midlands' North'East' Northern'Ireland' London is the leading destination for nights-share for visits from Germany followed by the South East, Scotland and the South West. This is also favoured by the many regional flights. Holiday visits have grown over the years, business visits are yet to recover to pre-financial crisis levels. Visiting friends or relatives, cultural travel and visiting events are the most important reasons for a short trip to a Britain, outside of London. Visits from Germany by Journey Purpose (000s) 1500 1000 500 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Holiday Business VFR Study Misc. 4
Regional spread potential In which of the regions would you like to spend a holiday in the next 5 years? (multiple choice, base: considerers) The South of England ranks 3rd with 26% of German considerers stating they would like to spend a holiday here in the next 5 years. Holiday visits from Germany have an above average propensity to feature rural and coastal areas of Britain. Sources: IPS by ONS, FUR Reiseanalyse, NBI GfK 2015, 5
Motivations, perceptions & activities Top Motivations for choosing Britain for a Holiday 50% 45% 44%' 42%' 40% 35% 33%' 31%' 31%' 30% 24%' 25% 21%' 20%' 18%' 20% 18%' 17%' 16%' 15% 10% 5% 0% 16%' Germans rate Britain highly for built heritage and contemporary culture, but less so for scenic natural beauty and welcome, rated 18th and 16th out of fifty nations respectively on these two attributes in 2015. A trip to Britain would be expected to be educational but Germans are more likely than others to think it would be relaxing. Britain is seen as the no.1 destination for cultural trips and study holidays. Culture is the biggest draw. Countryside & natural beauty resonates mainly with the older age groups whilst the ease of planning is a top motivation for 1 in 3 18-34 year olds. Sources: Ipsos/VisitBritain, 2016. Visitors to Britain. Normalised data., IPS by ONS, NBI GfK 2015, FUR Reiseanalyse 6
German planning and booking behaviour Germans start thinking about their holidays to Britain early, most of the visitors 6+ months before so there is often a long lead-in time which campaign activity should consider. 44% of visitors book 3-6 months before their trip, 15% even 6+ months before. 57% of visitors booked transport and accommodation combined, 42% separately. 26% of holiday visits from Germany were part of a package or all-inclusive tour in 2015. The majority of holiday visits is organised independently. % Starting to think about the trip at each stage 4% 1% 9% 6+ months before trip 3-6 months before 28% 57% 1-2 months before A few weeks before 1 week before Base: Visitors Sources: Ipsos/VisitBritain, 2016. IPS by ONS % Booking the trip at each stage 4% 15% 15% 17% 44% Base: Visitors 7
German booking behaviour How did you book your travel and accommodation to Britain? (Visitors) 82% of visitors who booked transport separately booked it online, 14% face to face. 72% of those who booked accommodation separately booked it online, 10% face to face, 13% stayed with friends or relatives. 58% of those who booked transport and accommodation together booked it online, 36% face to face (e.g. travel agency) a high proportion compared to other markets! How did you book travel and accommodation? (All Respondents) The majority of respondents who booked travel and accommodation separately booked it directly with the service provider e.g. Airline (65% and 62% respectively) When they bought travel and accommodation together 75% chose to book it through a travel agent, tour operator or travel comparison website. Sources: Ipsos/VisitBritain, 2016. 8
Activity & Campaigns Home of Amazing Moments #OMGB VisitBritain brand campaign with commercial partners to drive conversion Australia, US, GCC, India, France & Germany Campaign hub/website presenting unique moments and touring itineraries Comprehensive online and social elements Newspaper inserts in Germany & France to target older segments Tuesday, 6 December 16 9
Activity & Campaigns Expedia 360 degree campaign US, Germany & France, Spain, Italy & Netherlands September to March STA Travel Digital content partnership in the US, Australia & Germany Music as a hook to reach Millenials February & March 2017 Tuesday, 6 December 16 10
Activity & Campaigns King Arthur Film Campaign US, Australia Germany & France Online & social media campaign targetting younger segments Global competition February & March P&O Campaign On- and online campaign Germany & Netherlands December to February Tuesday, 6 December 16 11
Activity & Campaigns esayjet Campaign Main airline partner for Europe Spain, Italy, France & Germany OOH & online easyjet channels February & March 2017 Tuesday, 6 December 16 12
Discover England Fund Projects South West Coast Path Amazing Experiences and Making Memories Aims and objectives To address identified demand from overseas visitors to improve ease of access to explore the South West Coast How Creation of a range of 3, 5 and 7 day visitor itineraries with eat, drink, see, do options along the way Supported with new digital resources, promotion on DMO and Visit England websites, attendance at Trade/Travel Shows and PR and advertising in country Target audience Free and independent traveller looking to mix and match itineraries and book own accommodation and travel web sites will provide details of members in the area of the itinerary (DMOs and SWCPA) Visitors looking for a single point of booking partnership with Walking Tour Companies Tour operators in Germany and the Netherlands to encourage them to promote the itineraries to their customers Trade Shows Vakantie-Beurs Utrecht, Netherlands (January) Fiets en Wandelbeurs Utrecht, Netherlands (February) ITB Berlin (March) Tuesday, 6 December 16 13
ANY QUESTIONS? 14