PROFILES AND BEHAVIOUR OF CLIENTELE FROM THE UK, GERMANY AND SPAIN

AVRIL 2008 11, RUE DU FAUBOURG POISSONNIÈRE - 75009 PARIS - TÉL. 01 73 00 77 00 CITY BREAKS PROFILES AND BEHAVIOUR OF CLIENTELE FROM THE UK, GERMANY AND SPAIN CRT Paris Ile-de-France IPSOS Marketing With nearly 33 million hotel check-ins in 2007, Paris Ile-de-France (Paris and its surrounding region) remains the leading worldwide tourist destination. The Comité Régional du Tourisme (CRT - Regional Tourist Board), while pleased with this excellent result, is still seeking to do better. How? By developing visitors' loyalty with an updated, enhanced and appealing range of tourist products, and through a communication program adapted to the visitors' requirements. This loyalty-development programme requires detailed analysis of the behaviour of different clienteles and of the potential they represent. Leveraging these results, the CRT and its professional partners in Ile-de-France can implement activities that are perfectly focused, and therefore more effective. To this end, the CRT conducted a study based on its three top-priority European markets: the United Kingdom, Spain and Germany. 800 people from each of these countries were interviewed in autumn 2007, with the objective of defining their profiles, their attitudes with respect to travel and their behaviour in the context of city breaks (short duration urban holidays), in Europe and in particular in Paris. 1. LESÉTUDES

P. 2 Paris, the leading European city break destination More than a third of German and UK travellers took between three and five city breaks in Europe over the last five years. The leading consumers of city breaks abroad are the residents of Germany and the UK. One third of them take such trips two or three times annually. The residents of Germany and the UK are also the most frequent travellers: 5% travel in Europe at least once a month. On the other hand, the Spanish are more oriented toward domestic tourism. A majority take only one city break during the year. THE IMAGES OF MAJOR CITIES Although most of those polled say that they intend to visit Rome, the fact is that Paris, the "City of Light", is the top city break destination, ahead of Amsterdam and Barcelona for the UK travellers, Prague and Vienna for the Germans, and Lisbon and Rome for the Spanish. For a majority of UK and Spanish travellers, Paris is the most recent city break destination, while for Germans, Paris is listed after Prague, tied with London, Rome and Vienna. Rome is described as a romantic destination, abounding in monuments and museums. It is considered the ideal destination for those who love classical art, and, well ahead of Paris, the most "quintessential" of major European cities. The image of Paris is more comparable to that of London, even though Paris is perceived as being somewhat less modern. However, compared to the English capital, Paris benefits from an image that is stronger in terms of cultural heritage. The City of Light retains its reputation as a "romantic" destination, trendy and cutting edge. The quality of its shopping and its gastronomy is much appreciated, but Paris is considered expensive (primarily by the Spanish). But London does not escape this criticism either, according to the three different clienteles surveyed. On the other hand, the English capital has a strong reputation for its profusion of musical activities. Finally, Paris and London have a comparable image in terms of shopping. Meanwhile, Barcelona and Amsterdam are considered first off as festive. As for Berlin, those surveyed consider it to combine tradition and modernity, describing it simultaneously as a festive, musical destination, with abundant museums and monuments, well-suited to those who appreciate contemporary art and design. Perception of Paris and London by Germans Nothing in particular An incomparable art de vivre Profusion of musical activities of classical art A place to live it up A combination of tradition and modernity A romantic destination 68 13 7 46 12 33 11 2 14 10 33 33 31 36 9 45 42 13 43 78 49 43 A dream destination Perception of Paris and London by Spaniards Nothing in particular An incomparable art de vivre Profusion of musical activities of classical art A place to live it up A combination of tradition and modernity A romantic destination 67 45 A dream destination 53 54 57 62 53 35 38 40 14 8 6 14 13 1 7 45 46 17 12 54 29 27 54 30 24 12 29 25 30 42 40 69 Trendy of gastronomy For shopping An expensive city Abundant museums, monuments of contemporary art, design Trendy of gastronomy For shopping An expensive city Abundant museums, monuments of contemporary art, design Paris London Paris London 2. LESÉTUDES

P. 3 THE CHOICE OF DESTINATION How do tourists obtain information? Parents or friends, Internet, guidebooks... these are the principal sources of information. However, each nationality has its own tendencies. UK tourists rely primarily on the Internet, while Germans are more likely to consult brochures and guidebooks. The Spanish tend to trust the advice of family and friends, as well as that of travel agents. What kind of Internet sites do they visit? Search engines and city information sites are the most widely used. In third place are discount travel sites for UK and Spanish tourists, and hotel chain sites for Germans. While Spanish travellers most often refer to newsletters, forums and blogs, UK travellers who are rather adept Internet users are the least numerous to consult these types of sites. How do travellers choose their destination? The principal criteria shared by the three clienteles when choosing their destination are the art de vivre and gastronomy, a warm welcome, discovering unique aspects of local life, museums and monuments, and prices. Cultural and sporting events are also important, rated even higher than shopping. While Germans are not particularly attracted by promotional offers, 81% of Spanish and 65% of UK residents consider them important. Have they already visited their destination? Germans are the most likely to plan a city break where they have been before, and Spanish the least likely. If Rome is the destination that tourists most long to visit, it is also the city with the highest proportion of first-time visitors. On the other hand, Paris is the top city for frequent return visits. The figures bear this out: UK tourists have already come to Paris Ile-de-France 2.6 times, Germans 2.8 times and Spanish 1.5 times. What has inspired their travel plans? Cultural visits are most important for a large majority of travellers. The other reasons cited differ depending on their nationality. UK tourists trust their experience; the Spanish trust recommendations and other advice. Germans are motivated by gastronomy and art de vivre. PURCHASING A CITY BREAK When do travellers make their reservations? If, in general, Germans make travel reservations early (over two months in advance), they reserve somewhat later for their visit to Paris. UK and Spanish travellers make reservations less than a month before the trip begins. How much do they spend? Over 40% of UK and German tourists spend less than 500 per person (transportation and accommodation included). The Spanish spend more: from 500 to 999 for 38% of them. What type of trip do they choose? How do they purchase it? The majority of UK (63%) and German tourists (47%) prefer individual travel. The Spanish are equally content with individual and group travel (38% and 37%). While a third of tourists choose a package including transportation and accommodations, 38% of those from the UK, 22% of Germans and 20% of Spanish prefer to purchase their transportation and accommodation separately. 55% of UK residents and 47% of Germans purchase their transportation and accommodations directly from a provider. The Spanish have a higher tendency to go to a travel agent (48%). Finally, UK residents are the most likely to make their travel purchases online. 3. LESÉTUDES

P. 4 THE COURSE OF THE VISIT What mode of transport do they use? UK and Spanish residents travel mainly by air, while Germans prefer road transport (automobile and coach). UK residents take the train more frequently and more of them use this transport mode when they come to Paris, which is logical in view of the high-speed rail service linking the two capitals. With whom do they travel? In general, they travel with their partner (over 40%), or with friends (less than a third). These figures are independent of nationality or destination. What type of accommodation do they choose? No matter what the destination, over three quarters of those surveyed stayed in commercial accommodations. More than six travellers out of 10 chose to stay in a hotel. The proportion is even higher in Paris. For all destinations, the three clienteles readily selected top-of-the-range hotels. In Paris, 3* hotels are preferred by UK and German visitors, while Spanish visitors prefer to stay in 4* hotels. 20% of Spanish and 10% of German and UK visitors stayed in parents' or friends' homes (the main type of non-commercial accommodations). Meanwhile, UK travellers are the most likely to stay in chambres d hôtes (bed and breakfasts) (9%) and to make apartment exchanges (2%). Approximately two thirds of UK and Spanish visitors, and more than half of Germans have stayed in Paris proper. When the accommodations are located outside of Paris, in 7 out of 10 cases they are located in the inner suburbs. How long do they stay? The average length of stay is 4.3 nights for UK visitors, 4.4 for Germans and 4.5 for Spanish. In Paris Ile-de-France, the average stay is shorter: 3.5 nights for UK visitors, 3.8 for Germans and 4.4 for Spanish. What are their activities? Outings, exploring the city and shopping are the three favourite activities of UK tourists. This is independent of their destination. German and Spanish tourists are primarily interested in exploring the city. This is followed in order by gastronomy, art de vivre and outings. Markets, flea markets, second-hand markets and guided tours of neighbourhoods are, on a smaller scale, attractive for all three clienteles. Over 4 out of 10 German and Spanish tourists travel "to live it up". Finally, UK and Spanish tourists are the most likely to participate in themed workshops (nearly 2 out of 10). In Paris Île-de-France UK clientele German clientele Spanish clientele Average number of activities 5.1 Average number of activities 5.5 Average number of activities 5.9 1. Exploring the city (77%) 2. Outings (75%) 3. Shopping (66%) 4. Gastronomy and art de vivre (61%) 5. Cultural activities (54%) 1. Exploring the city (91 %) 2. Gastronomy and art de vivre (82 %) 3. Outings (75 %) 4. Cultural activities (68 %) 5. Shopping (54 %) 1. Exploring the city (93 %) 2. Gastronomy and art de vivre (72 %) 3. Outings (72 %) 4. Shopping (68 %) 5. Cultural activities (64 %) 4. LESÉTUDES

P. 5 RATING THE PARIS ILE-DE-FRANCE DESTINATION 96% of Spanish and UK visitors are "satisfied" with their holidays in Paris Ile-de-France; 75% and 68% profess to be "very satisfied". The same holds for Germans, of whom 97% are "satisfied". On the other hand, the proportion of "very satisfied" Germans is only 44%. Nearly one person out of four considers that there is no potential improvement that could make Paris Ile-de-France more attractive. UK visitors cite some problems with public transportation. Germans tend to reproach the quality of services (communication problems, language barrier, lack of publicity material, etc.). Spanish visitors are more critical: they consider prices to be too high (in particular for hotels), and berate the quality of services and public transportation. POTENTIAL OF THE PARIS ILE-DE-FRANCE DESTINATION UK residents Germans Spanish Have you already gone on holiday to Paris Ile-de-France? (based on city break travellers)* Have you already gone on holiday to Paris Ile-de-France? (based on city break travellers)* Have you already gone on holiday to Paris Ile-de-France? (based on city break travellers)* Yes 44 % 79 % No 56 % 50 % Yes 38 % 66 % No 62 % 41 % Yes 49 % 74 % No 51 % 61 % > > > PARIS ILE-DE-FRANCE, DEVELOPING VISITOR LOYALTY The top European city break destination A destination with extremely high satisfaction rates The city where tourists return most often 5. LESÉTUDES

SEGMENTATION Typology of the UK clientele Travel frequently High potential for loyalty development What is "typology"? Typology is a method that allows classification of individuals into the most uniform groups possible in terms of profiles and behaviour. How is it carried out? Typology simultaneously considers attitudes and motivations (explanatory variables: I am interested in architecture and design) and behaviours (explained variables: I have already stayed in Paris Ile-de-France). Why is it useful? Typology is directly operational: a group corresponds to a marketing target. We therefore distinguish groups of clients having: - a potential for conversion (tourists who have never come to Paris Ile-de-France but who would like to) - a potential for loyalty development (tourists who have already stayed in Paris Ile-de-France and who intend to return). Therefore, the results allow us to design a product fitting the needs of each group of clients and to create a specific communications campaign. How do I interpret these charts? A circle represents a homogeneous group of tourists, based on two axes: - the frequency of departure on city breaks in Europe - the intention Ile-de- France. The size of the circles is proportional to the magnitude of the group. Their position in the chart indicates the potential that the group represents for our destination. Example: the green area of the chart corresponds to a strong potential for developing customer loyalty. Weak intention Passives 31 % Weak potential for conversion Well-off travel oriented families 24 % Travel infrequently Young people, not yet independent 17 % Inspired young people 28 % Inspired young people (28%) Single (age 25-34), high-income group, highly educated. They are interested in architecture and design, leave on their own, are inquisitive and independent in their information searches and reserve at the last minute on the Internet. They frequently take city breaks in Europe, notably to meet parents or friends. They have already visited Paris Ile-de-France and expect to come back. > Strong potential for loyalty development Well-off travel oriented families (24%) Well-off clientele who leave frequently for city breaks in different places, interested in culture and exploring the city. With no particular budgetary constraints, they prefer all-inclusive holidays. They have already visited Paris Ile-de-France but do not have a firm intention to return. > A real potential, but loyalty development is difficult (capricious clientele) Young people, not yet independent (17%) Aged 16-24 and living in London, they face strict budget constraints. They travel infrequently, mainly with their family, and stay at the home of parents or friends. They are highly attuned to promotional offers and prefer package or all-inclusive holidays. They have never visited Paris Ile-de-France but have a strong intention to do so. > Interesting potential from a conversion perspective (levers: shopping and amusement parks) Strong intention 6. LESÉTUDES

Typology of the German clientele Travel frequently High potential for loyalty development Frequent travellers 15 % Weak intention Weak potential for conversion Working-class families 20 % Young people into nightlife 16 % Opportunists 10 % Trendy families 19 % Organized senior citizens 20 % Strong intention Travel infrequently Frequent travellers (15%) Single and without children (aged 65 and over), they live in Hamburg or Berlin. Inquisitive, open-minded and independent, they frequently travel with friends for city breaks, like to come back to the same place, and make reservations on the Internet. They have already visited Paris and intend to come back. > Strong potential for loyalty development Trendy families (19%) Married couples with a dependent child, they frequently travel to the same place, are independent with the reservation process (Internet) and attuned to promotional offers. They are particularly interested by cultural activities, design and shopping. They have already visited Paris and have a strong intention to come back. > Strong potential for loyalty development Organized senior citizens (20%) Retired (aged 65-70), living in the Mayence region. They travel with their family and have a conservative, safe mentality. Therefore, they purchase all-inclusive holidays and organize them long in advance. They have never visited Paris Ile-de-France but have the intention to do so. > Strong potential for conversion (through all-inclusive holidays) 7. LESÉTUDES

Typology of the Spanish clientele Travel frequently High potential for loyalty development Weak intention Wandering senior citizens 21 % Dynamic young people 19 % Trendy families 22 % Nationals 17 % Weak potential for conversion Young people, not yet independent 12 % Passives 9 % Strong intention Travel infrequently Trendy families (22%) Married couples (aged 35-44) with two children, high-income group, live in the northeast of Spain, in Barcelona. They have numerous centres of interest, travel frequently for city breaks in Europe and do not hesitate to return to places they liked. Attentive to promotional offers, they prefer last-minute trips, generally reserved on the Internet. They have already visited Paris Ile-de-France and intend to return. > Strong potential for loyalty development Dynamic young people (19%) Under 35 years of age, they travel with friends, have a certain level of budget constraints, are sensitive to last-minute promotional offers and reserve on the Internet. They have never visited Paris Ile-de-France and have the intention to do so. > Strong potential for conversion (levers: shopping, art de vivre and gastronomy, festivals, discovering current day local and cultural life) Passives (9%) Aged 45-54, living in the Valencia region, they travel as a couple and do not frequently leave in Europe. They buy all-inclusive holidays, do not have a well-established set of criteria and do not favour any particular activity. They have never visited Paris Ile-de-France but have a strong intention to do so. > Real potential for conversion but difficult to implement METHODOLOGY 1. An omnibus survey allowing estimation of the proportion of tourists in the general population who have already visited Paris Ile-de-France. 2. A telephone survey of 800 people per country, aged 15-70, who have taken a city break in Europe during the last five years. Document édité par le Comité Régional du Tourisme Paris Ile-de-France, Direction de la Communication. Directrice de la Publication : Henriette Zoughebi, Présidente du Comté Régional du Tourisme Paris Ile-de-France et de l Espace du Tourisme d Ile-de-France. Contact : Sandrine Chausson, Direction Marketing, Responsable Pôle Etudes - Observation - schausson@nouveau-paris-idf.com. Photos CRT : Maisant, Larrayadieu, Charaffi, Tripelon-Jarry, Thierry. Marceau Bastille. Maquette, réalisation : www.bp-art.com. ISSN 1956-2322. www.new-paris-idf.com 8. LESÉTUDES