Market and Trade Profile: USA USA
Overview Chapter 1: Inbound market statistics provides insights on key statistics about American travellers and who they are. It takes a look at Britain and its competitive set as well as activities of American visitors in the UK. Chapter 2: Understanding the market takes a close look at American consumer trends, booking, planning and further travel behaviour of this source market. Perceptions of Britain held by Americans are also highlighted. Chapter 3: Access and travel trade shows how Americans travel to the UK, how to best cater for their needs and wants during their stay and gives insights into the American travel trade. Further ways of working with VisitBritain and other useful research resources are pointed out. 2
Contents Chapter 1: Inbound market statistics 1.1 Key statistics 6 1.2 Visitor demographics 17 1.3 Britain & competitors 21 1.4 Inbound activities 23 Chapter 2: Understanding the market 2.1 Structural drivers 31 2.2 Consumer trends 35 2.3 Booking and planning 38 2.4 Reaching the consumer 41 2.5 Perceptions of Britain 45 Chapter 3: Access and travel trade 3.1 Access 52 3.2 Travel Trade 56 3.3 Caring for the consumer 62 3.4 Working with VisitBritain 64 3.5 Useful research resources 65 3
Chapter 1: Inbound market statistics 4
Chapter 1: Inbound market statistics Chapter summary The American outbound market is forecasted to account for 131 million trips abroad with at least one overnight stay by 2020. The UK was the 2 nd most popular European destination for American overnight visitors in 2016, holding a market share of 17%, behind France in 1 st place (18%). Americans rank globally in 2 nd place for international tourism expenditure with more than US$123.6bn. The USA was the 2 nd largest inbound source market for the UK for volume and the most valuable source market for visitor spending in the UK in 2016. France (57%), Italy (47%), Germany (45%) and Spain (44%) were the most considered competitor holiday destinations by American holidaymakers to Britain. Almost six out of ten departing American travellers would be very likely to recommend Britain for a holiday or short-break, which is significantly higher than average (45%). The USA is the UK s most valuable source market for visitor spending Source: International Passenger Survey by ONS, Oxford Economics, UNWTO, VisitBritain/IPSOS 2016, CAA 2016 5
Chapter 1.1: Key statistics Key insights Almost 3.5 million Americans visited the UK in 2016, which is an increase of 6% compared to the previous year. This makes the USA the second largest source market. Holiday visits continue to lead in terms of volume of visits from the American market. 45% of all visits to the UK from the USA were made for holiday purposes, followed by 25% which were visits to friends and/or relatives in 2016. American visitors spent an average of 8 nights per visit in the UK in 2016, longer than the global average. London is the leading destination for a trip to Britain, based on the number of nights, but Scotland and the South East of England are also popular. Two forms of accommodation dominate the picture with 39% of nights spent in a hotel or a guest house and 38% of nights spent for free with relatives or friends. The USA was the UK s 2 nd largest source market for visits in 2016 Source: International Passenger Survey by ONS 6
1.1 Key statistics: global context and 10 year trend Global context Inbound travel to the UK overview Measure 2016 Measure Visits (000s) Nights (000s) Spend ( m) International tourism expenditure (US$bn) Global rank for international tourism expenditure Number of outbound overnight visits (m) Most visited destination 123.6 2 104.7 Mexico 10 year trend 2007 3,551 28,856 2,537 2008 2,950 24,742 2,223 2009 2,877 23,771 2,173 2010 2,711 22,739 2,133 2011 2,846 23,333 2,362 2012 2,840 23,568 2,436 2013 2,778 21,927 2,539 2014 2,976 27,975 2,944 2015 3,266 27,239 3,010 2016 3,455 28,394 3,354 Share of UK total in 2016 9.2% 10.2% 14.9% Source: International Passenger Survey by ONS, UNWTO, Oxford Economics 7
1.1 Key statistics volume and value Inbound volume and value Nights per visit, spend Measure 2016 Change vs. 2015 Rank out of UK top markets Averages by journey purpose in 2016 Nights per visit Spend per night Spend per visit Visits (000s) 3,455 6% 2 Holiday 7 125 915 Nights (000s) 28,394 4% 1 Business 6 257 1,505 Spend ( m) 3,354 11% 1 Visiting Friends/ Relatives 11 52 578 Study* 42 122 5,108 All visits 8 118 971 Source: International Passenger Survey by ONS, *small base 8
Share of visits Market and Trade Profile USA 1.1 Key statistics: journey purpose Journey purpose 2016 Journey purpose trend (visits 000s) 60% 50% 40% 30% 20% 10% 0% 45% 37% 31% 24% 25% 20% 8% 6% 2% 1% Holiday Business VFR Study Misc. 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 1,563 860 688 288 56 USA All markets Holiday Business VFR Study Misc. 45% of all visits to the UK from the USA were made for holiday purposes, followed by 25% which were visits to visit friends and/or relatives, in 2016. 58% of holiday visits from the USA to the UK (excl. UK nationals) in 2015 were made by repeat visitors. On average an American holidaymaker came 2.6 times to the UK in the past 10 years. Business visitors and those coming to visit friends or relatives who live in the UK are more likely to be repeat visitors (87% and 84% respectively). Holiday visits continue to lead in terms of volume of visits from the American market. This segment has shown strong growth since 2013, resulting in almost 1.6 million holidays from the USA in 2016. The number of VFR and business trips is still lower than it was at the higher level in 2006 prior to the financial crisis. Source: International Passenger Survey by ONS; repeat / first time visitors question asked in 2015 9
Share of visits Market and Trade Profile USA 1.1 Key statistics: seasonality Seasonality 2016 40% 35% 30% 25% 20% 15% 10% 5% 0% 16% 20% 26% 27% 35% 28% 22% Jan-Mar Apr-Jun Jul-Sep Oct-Dec USA Seasonality trend (visits 000s) 1,400 1,200 1,000 800 600 400 200 0 All markets 25% The summer quarter remains the most important period for Americans to visit the UK. In 2016, 35% of visits from the USA to the UK were made in this third quarter, followed by 26% in the spring quarter. Americans visit the UK less often in the low seasons compared to the average international visitor. The volume in the third quarter has recovered more strongly than the other quarters since the decline immediately following the financial crisis. Despite this positive development the number of American summer visits to the UK remains below the level in 2006. 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1,222 914 768 552 Source: International Passenger Survey by ONS Jan - Mar Apr - Jun Jul - Sep Oct - Dec 10
1.1 Key statistics: length of stay and accommodation Accommodation stayed in, 2016 (nights, %share) 0.5% 0.3% 1% 2% 5% 7% 8% 39% Duration of stay trend (visits 000s) 1,500 1,000 500 0 1,234 1,108 735 355 23 Nil nights 1-3 nights 4-7 nights 8-14 nights 15+ nights 38% Hotel/guest house Hostel/university/school Bed & Breakfast Paying guest family or friends house Other Source: International Passenger Survey by ONS Free guest with relatives or friends Rented house/flat Own home Camping/caravan American visitors spent on average 8 nights per visit in the UK in 2016. The most common length of stay for US travellers in the UK was 4-7 nights, followed by short trips of 1-3 nights. Two forms of accommodation dominate the picture with 39% of nights spent in a hotel or a guest house and 38% of nights spent for free in the house of relatives or friends. 11
1.1 Key statistics: regional spread Nights (% share) Visits to the UK in 2016 Region* Nights stayed (000) Total 28,394 3,455 Scotland (SC) 4,109 451 Wales (WA) 410 85 Northern Ireland (NI) 316 54 London (LDN) 12,435 2,322 North East (NE) 612 39 North West (NW) 1,833 191 Yorkshire (YO) 484 99 West Midlands (WM) 926 149 East Midlands (EM) 657 74 East of England (EoE) 1,526 191 South West (SW) 1,513 214 South East (SE) 3,339 427 Nil nights (Nil)* N/A 23 Visits (000) Source: International Passenger Survey by ONS * The region is based on the location in which the visitor stayed overnight 12
Share of nights Market and Trade Profile USA 1.1 Key statistics: regional spread and top towns and cities Top towns and cities visited 2016 London is the leading destination for a trip to Britain, Town London 2,322 Edinburgh 305 Glasgow 102 Inverness 95 Manchester 82 Regional spread 2016 60% 50% 40% 30% 20% 10% 0% 14% 8% 1% 3% Overnight visits (000s) 44% 40% 38% 49% Scotland Wales London Rest Of England 1% 1% Northern Ireland accounting for 44% of visitor nights. This share is even higher among business travellers (55%) and holiday makers (50%). Scotland is relatively popular among American travellers: 14% of nights were spent in Scotland, compared to a global average of 8% of all international nights spent in the UK. South East is the most popular region in England, outside London (more information can be found on the previous page). Visits from the USA have an above average propensity to feature rural and coastal areas of Britain (see next page for more information). USA All markets Source: International Passenger Survey by ONS 13
1.1 Key statistics: visits to coast, countryside and villages Propensity to visit coast, countryside and villages VFR: Went to the coast or beaches 13% 18% VFR: Went to countryside or villages 17% 27% Business: Went to the coast or beaches Business: Went to countryside or villages 2% 2% 4% 2% Holiday: Went to the coast or beaches 14% 18% Holiday: Went to countryside or villages 18% 27% All journey purposes: Went to the coast or beaches 10% 13% All journey purposes: Went to countryside or villages 13% 20% 0% 5% 10% 15% 20% 25% 30% Source: International Passenger Survey by ONS 2016 USA All markets 14
1.1 Key statistics: use of internal modes of transport Propensity to use internal modes of transport Ferry/boat Car/vehicle you/group brought to the UK Hired self-drive car/vehicle Private coach/minibus (for group only) Public bus/coach (outside town/city) Taxi Train (outside town/city) Bus, Tube, Tram or Metro Train (within town/city) Domestic flight 3% 2% 2% 5% 4% 4% 2% 8% 9% 8% 12% 15% 30% 28% 32% 48% 53% 60% 0% 10% 20% 30% 40% 50% 60% 70% Source: International Passenger Survey by ONS 2013 USA All markets 15
1.1 Key statistics: purchase of transport and package tours Transport services purchased before or during trip (%) 70% 60% 50% 50% 40% 30% 20% 10% 0% 26% 52% 51% 33% 63% 31% 27% 22% 36% 13% 29% 49% 12% 52% 24%25% 27% International Passenger Survey by ONS, VisitBritain/IPSOS 2016, base: visitors 20% 15% Pre During Pre During Pre During Pre During Pre During Transport within London Train Travel USA Airport transfer All markets Coach travel Car hire Proportion of visits that are bought as part of a package or all-inclusive tour in 2016 16% 14% 12% 10% 8% 6% 4% 2% 0% 1% 1% 11% 14% 1% 1% 5% 9% 2% 6% 6% 6% Business Holiday VFR Study Misc. All journey purposes USA All markets To be defined as a package, a trip must be sold at an inclusive price covering both fares to and from the UK and the cost of at least some accommodation. While some respondents may not know the separate costs of their fares and their hotel because they bought several air tickets and several sets of hotel accommodation from their travel agent, the ONS definition of a package is that the costs cannot be separated. 16
1.2 Visitor demographics Visitor characteristics Business visitors are more than two times as likely to be men than women. American visitors tend to be older than the average visitor to the UK: 49% of American visitors were aged 45+ compared to a total average of 39% Within the USA, the states of California and New York are the largest source markets for visitors to the UK. 85% of visits from American residents to the UK were made by American nationals, 7% by British nationals. Almost 6 out of 10 American holiday visitors (excl. UK nationals) are making a repeat visit to Britain. 93% of departing American travellers are either very or extremely likely to recommend Britain for a holiday or short-break. 91% of departing Americans felt very or extremely welcome in Britain. 93% very or extremely likely to recommend Britain in 2016 Source: International Passenger Survey by ONS, CAA 2016 17
Visits (000s) Market and Trade Profile USA 1.2 Visitor demographics: gender and age groups Visitor demographics: Gender ratio of visits from the USA: 46% women, 54% men 80% 60% 40% 20% 0% Women (% share of visits by journey purpose) 28% 20% 50% 53% 58% 51% 56% 53% 47% 42% Business Holiday VFR Study Misc. USA All markets Age group trend 900 800 700 600 500 400 300 818 713 670 531 353 309 Men (share of visits by journey purpose) 200 100% 80% 80% 72% 50% 49% 47% 53% 56% 60% 44% 42% 47% 40% 20% 0% Business Holiday VFR Study Misc. USA All markets Source: International Passenger Survey by ONS 100 0 2002 2005 2008 2011 2014 0-15 16-24 25-34 35-44 45-54 55-64 65+ 57 18
1.2 Visitor demographics: origin Visits to the UK in 2014 (000s) The largest proportion of American visitors who came to the UK reside in California and New York. These two states generate almost a quarter of all inbound visits. Connectivity reflects these key American source states. Visits in 000s % share of visits High Medium Low Unknown: 314 Source: International Passenger Survey by ONS 19
1.2 Visitor demographics: welcome and recommending Britain Feeling of welcome in Britain Likelihood to recommend Britain 60% 70% 50% 50% 49% 60% 59% 40% 39% 41% 50% 45% 45% 30% 40% 34% 30% 20% 10% 0% Extremely welcome Very welcome 8% 12% Quite welcome 0.3% 0.3% 0.2% 0.1% Not very welcome Not at all welcome 20% 10% 0% Extremely likely 6% 9% Very likely Quiet likely 1% 1% 0.1% 0.4% Not very likely Not at all likely USA All markets USA All markets Source: CAA 2016 20
1.3 Britain and competitors Market size, share and growth potential Britain was the 4th most visited destination by American tourists in 2016, behind Mexico, Canada and France. The visit forecast implies ongoing growth in the number of American overnight visits to Britain in the next decade. Of those who came to Britain for a holiday, 57% considered France, 47% Italy, 45% Germany and 44% Spain as an alternative holiday destination. Among competitor set the countries Ireland, Spain and Australia recorded the highest growth percentage in the past decade in terms of American visits, although their market share remains relatively low. Britain ranks 4 th for American outbound destinations by volume Source: Oxford Economics, VisitBritain/IPSOS 2016 21
1.3 Britain and competitors Britain s market share of American overnight visits among competitor set Historic and potential overnight visits to Britain (000s) France 18% 20% United Kingdom 17% 17% Italy 16% 17% Germany 13% 13% China 11% 13% Spain 9% 7% India 7% 6% Ireland 7% 5% Australia 3% 3% 0% 5% 10% 15% 20% 25% 2016 2011 6,000 5,000 4,000 3,000 2,000 1,000 0 4,770 Source: Oxford Economics 22
1.4 Inbound activities Inbound Britain activities Dining in restaurants, shopping and going to a pub are the most popular activities for American visitors while in the UK, with 74%, 57% and 55% doing so. American visitors are more likely than the average UK visitor to go to built heritage sites and museums. Four out of ten visits involve time in a park or garden. About 56,000 visits per annum feature time watching football. American visitors are less likely than the average UK visitor to cycle. Source: International Passenger Survey by ONS 23
1.4 Inbound activities Propensity to visit museums and galleries Propensity to visit built heritage sites VFR Holiday Business All journey purposes 6% 15% 23% 28% 32% 39% 48% 58% 0% 20% 40% 60% 80% VFR: visited religious buildings VFR: visited castles/historic houses Holiday: visited religious buildings Holiday: visited castles/historic houses Business: visited religious buildings Business: visited castle/historic houses All journey purposes: visited religious buildings All journey purposes: visited castle/historic houses 9% 4% 13% 6% 27% 18% 23% 32% 20% 28% 37% 48% 35% 41% 61% 48% 0% 20% 40% 60% USA All markets USA All markets Source: International Passenger Survey by ONS 2016 24
1.4 Inbound activities Propensity to attend the performing arts Number who went to watch sport live during trip (000s) All journey purposes: Attended a festival All journey purposes: Went to the theatre/musical/opera/ballet VFR: Attended a festival VFR: Went to the theatre/musical/opera/ballet Business: Attended a festival Business: Went to the theatre/musical/opera/ballet Holiday: Attended a festival Holiday: Went to the theatre/musical/opera/ballet 5% 3% 5% 3% 1% 1% 6% 2% 15% 9% 13% 8% 7% 4% 23% 14% 0% 20% 40% Horse racing Cricket Rugby Golf Football 0.5 0.0 1.9 0.0 0.8 1.1 0.8 0.6 1.6 1.6 3.7 0.0 1.3 0.7 0.0 0.0 20.7 8.6 21.2 5.5 0 5 10 15 20 25 USA All markets Holiday Business VFR Misc. Source: International Passenger Survey by ONS 2011 and 2016 25
1.4 Inbound activities Propensity to go for a walk Holiday: Walking along the coast Holiday: Walking in the countryside Business: Walking along the coast Business: Walking in the countryside VFR: Walking along the coast VFR: Walking in the countryside All journey purposes: Walking along the coast All journey purposes: Walking in the countryside 2% 1% 5% 9% 9% 8% 11% 11% 15% 11% 24% 20% 29% 26% 28% 34% 0% 10% 20% 30% 40% Propensity to visit a park or garden and a National Park VFR: Visiting a National Park VFR: Visiting parks or gardens Holiday: Visiting a National Park Holiday: Visiting parks or gardens Business: Visiting a National Park Business: Visiting parks or gardens All journey purposes: Visiting a National Park All journey purposes: Visiting parks or gardens 2% 1% 9% 6% 7% 15% 11% 10% 7% 15% 32% 32% 41% 40% 54% 50% 0% 20% 40% 60% USA All markets USA All markets Source: International Passenger Survey by ONS 2007, 2010 and 2016 26
1.4 Inbound activities Propensity to go shopping during visits to the UK Propensity to purchase selected items 0% 10% 20% 30% 40% 50% Clothes or Shoes Personal accessories e.g. jewellery 10% 10% 32% 41% 57% Bags, purses etc 7% 9% 68% Cosmetics or toiletries e.g. perfume Books or stationery Games, toys or gifts for children 8% 12% 13% 13% 8% 9% 41% Food or drink CDs, DVDs, computer games etc 3% 5% 22% 24% 67% Electrical or electronic items e.g. camera Items for your home e.g. furnishing Other holiday souvenir (not mentioned above) None of these 2% 3% 3% 3% 20% 16% 42% 38% 0% 20% 40% 60% 80% All journey purposes VFR Business Holiday Source: International Passenger Survey by ONS 2011, 2013 USA All markets 27
1.4 Inbound activities Propensity to go to restaurants, pubs, night clubs and socialise with locals VFR: dining in restaurants 73% 62% VFR: socialising with the locals 59% 50% VFR: went to pub 59% 54% Holiday: dining in restaurants 82% 70% Holiday: socialising with the locals 46% 36% Holiday: went to pub 60% 50% Business: dining in restaurants 73% 49% Business: socialising with the locals 28% 15% Business: went to pub 52% 32% All journey purposes: dining in restaurants 74% 61% All journey purposes: socialising with the locals 43% 34% All journey purposes: went to pub 55% 46% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% USA All markets Source: International Passenger Survey by ONS 2007, 2008, 2011 and 2013 28
Chapter 2: Understanding the market 29
2.Understanding the market Chapter summary Trips for holiday purposes is a growing segment within the American overseas travel market. 60% of American holiday visitors tend to start thinking about their trip to Britain early, more than half a year in advance. Almost a third of American travellers booked their trip to Britain three to six months before arrival. A quarter booked last minute (within one month before arrival to Britain). Websites providing travellers' reviews, information from search engines and word-of-mouth influence the destination choice of most Americans. Cultural attractions and the ease of getting around are strong motivators for American visitors to choose Britain. Americans are positive about Great Britain: the nation is ranked 4 th among 50 nations for its overall image based on six dimensions (Tourism, Culture, People, Exports, Governance, Immigration & Investment). USA s outbound travel market is growing Source: Oxford Economcis, VisitBritain/IPSOS 2016, GfK Anholt Nation Brands Index 2016 30
2.1 Structural drivers Demographics & society With a population of around 324 million, the USA is the third most populated country in the world. The population is expected to increase gradually in the coming years. USA has the largest economy in the world (second in PPP terms) and the forecast for 2017 and 2018 are positive as well. Jobs growth is having a positive impact on consumer confidence and consumer spending. Uncertainties concerning policy issues should be noted as potential downside risks for economic growth. The US dollar is strong as of 2017, especially compared to the pound. This makes it more affordable for Americans to travel to Britain. English is the first language of 79% of Americans and Spanish the main language for 13%. In 2016, 132 million valid American passports were in circulation which equals about 41% of American population. The number of valid US passports in circulation has increased, with an annual average growth over the past decade of 6%. This implies that more and more Americans are able to travel abroad. The USA has the 2nd largest economy in the world Source: Oxford Economics, CIA World Factbook 2017, travel.state.gov 31
2.1 Structural drivers: population and economic indicators Population dynamics Measure 2016 estimate Economic indicators (% growth unless stated) Indicator 2016 2017 2018 Total population in 2016 323,996,000 Real GDP 1.6% 2.2% 2.4% Net No. migrants per 1,000 population in 2016 Average annual rate of population change in 2015-2020 3.9 0.8% Consumer spending 2.7% 2.6% 2.5% Unemployment rate 4.9% 4.4% 4.4% Disposable income 3.7% 3.6% 4.7% Consumer prices 1.3% 2.0% 1.9% Source: CIA World Factbook 2017, Oxford Economics 32
2.1 Structural drivers: general market overview General market conditions The USA was UK s second largest source market in terms of visits and most valuable market for visitor spending in 2016. Many Americans enjoy a high sandard of living with GDP per capita in purchasing power parity terms of over US$52,000, forecasted to increase in the years to come. Key demographic and economic data Measure 2016 Population (m) 324 GDP per capita PPP (US$) 52,055 Annual average GDP growth over past decade (%) 1.3 Annual GDP growth in 2016 (%) 1.6 Source: Oxford Economics, CIA World Factbook 2017, Capgemini World Wealth Report 2016, US Census Bureau The US has the largest economy in the world, and second in PPP terms behind China. The American economy is growing and the forecast for the coming years is also positive. Consumer confidence is strong, buoyed by employment growth, and consumer spending is rising. There is uncertainty though surrounding a lot of policy issues. According to Capgemini the USA has by far the highest number of High Net Worth Individuals (HNWI), almost 4.5 million in 2015; these are defined as people with investible assets worth more than $1 million. This group grew by 2% compared to the previous year. The country has a population of about 324 million with a median age of 38. Immigrants and their U.S.-born descendants are expected to provide most of the U.S. population growth in the decades ahead. Most Americans live in urban areas (82%). The most populous states in 2016 are California, Texas, Florida, New York and Illinois. The US counted approximately 57 million Hispanics in 2015, making this the nation s largest ethnic minority. 33
2.1 Structural drivers: exchange rate trends Exchange rate trends (cost of GBP in USD) 2.20 2.00 1.80 1.60 1.40 1.20 1.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Please find the most up-to-date exchange rate trend based on monthly averages at visitbritain.org/visitor-economy-facts. Source. Bank of England 34
2.2 Consumer trends The US is one of the only countries globally not to have statutory paid vacation. Americans have an average of 15 paid vacation days a year and on average do not use four of them. Despite this, the number of outbound visits from the USA increased with an annual average growth over the past decade of 2.1%. An important reason for the growing outbound travel market is recent economic growth, which boosts consumer confidence, as well as a strong dollar. Growth is driven by the middle aged groups still in work or baby boomers, who may be retired or coming to the end of their careers. Millennials, who currently have lower earning power, nonetheless typically have a strong interest in international travel. Smartphones and tablets are being used by Americans more often when searching for information or making bookings. It is estimated that more than a quarter of online travel transactions in the U.S. will be conducted on mobile devices in 2017. The outbound holiday market from the USA is growing Sources: Oxford Economics, Expedia, Phocuswright, International Passenger Survey by ONS 35
2.2 Consumer trends: overall travel trends Travel trends The number of overseas trips made by Americans has increased in the past few years, mostly due to growth in the number of holidays. More than half of all overseas trips are made for vacation/holiday purposes. This share increased significantly from 39% in 2011 to 53% in 2015, whereas the share of business travel declined from 18% to 10%. The number of international trips taken by US travellers averaged 2.6 in 2015 which is comparable to recent years. Seven percent of overseas travellers were on their first international trip in 2015. During their trip abroad Americans visited an average of 1.8 countries. Almost six out of ten Americans visited one destination and one out of five visited three or more destinations. Destination of overnight visits abroad in 2016 26% 12% 4% 57% Americas Europe Asia Pacific Africa & Middle East Slightly more than a quarter of all overnight visits were spent in Europe in 2016. This share is the same as five years earlier. Source: U.S. Department of Commerce, ITA, National Travel & Tourism Office, Oxford Economics 36
2.2 Consumer trends: reasons for holidays Most important things to look for in an international vacation (%) Experiencing different cultures New experiences Visiting famous landmarks Local food and drink Natural beauty Going somewhere new Rest/Relaxation A mixture of things to do Spending time with family/friends Easy to get around Sunny weather Somewhere family friendly Opportunities to be active Action/excitement Good nightlife Chance to live like a local 13% 13% 13% 11% 13% 13% 11% 13% 10% 9% 12% 44% 45% 44% 45% 38% 42% 35% 39% 35% 34% 32% 35% 33% 33% 30% 28% 20% 23% 19% 19% 23% Tri-State area California The top US states for UK visits can be found on the west and east coasts of the USA. California (15%) represents the largest state by volume followed by the New York Tri-State area: New York, New Jersey and Connecticut (13%). There are few significant differences in vacation motivations between these coasts. New experiences and different cultures are an important part of international vacations for both. Sunny Weather is much more important to travellers in the Tri-State area. Vacation activities: those in the Tri-State area are more likely to want to sunbathe or visit a spa / get pampered. Californians are more likely to want to visit museums/galleries and go walking/hiking. Vacation barriers are very similar for East vs West coast. Safety and security fears are the biggest barrier for both groups when choosing a destination. Source: VisitBritain US East vs West Coast Consumer Research, 2017. Results above 10% total agreement shown. Based on quantitative research among residents in California or the Tri-State area who: have taken a vacation of two nights or more to a foreign country in the last three years (beyond Mexico and Canada); are decision makers when choosing vacation destinations; have either visited Britain in the last three years or are a non-rejecter of visiting Britain in the next five years 37
2.3 Booking and planning A large proportion of American holiday visitors tend to start thinking about their trip early with 60% doing this as early as half a year or more in advance. 31% of travellers booked in the three to six months window before the arrival to Britain. A quarter of travellers booked last-minute (within one month before arrival). The majority of the American travellers to Britain book travel and accommodation together, mostly online. They are also more likely than the average visitor to purchase tickets for tourist attractions and guided sightseeing tours prior to their trip. 60% of American visitors start thinking about their trip 6+ months in advance Source: VisitBritain/IPSOS 2016, base: visitors 38
2.3 Booking and planning: booking channels and ticket sales How trips to Britain were booked Propensity to make a purchase before or during trip 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0% 0% 0.5% 5% 13% 15% 17% 83% 8% 11% 24% 66% 58% Travel Accommodation Holiday (travel and accommodation) Don t know Did not book stayed with friends / relatives By phone Face to face Online 60% 50% 40% 30% 20% 10% 0% 52% 48% 30% 25% 23% 24% 14% 11% 56% 28% 22% 20% 56% 28% 18% 19% 57% 31% 30% Pre During Pre During Pre During Pre During Pre During Theatre / Musical / Concert tickets Sporting event tickets USA Guided sightseeing tours in London All markets Guided sightseeing tours outside of London 41% Tickets / passes for other tourist attractions Most Americans book their trip to Britain online, especially when they book their transport (i.e. travel). The majority of online bookings are made via a laptop/desktop. American visitors to Britain still tend to book their travel and accommodation together (70% of visitors). About one in four bookings were made face to face for these holiday packages. This is similar to the global average of 27%. Many American visitors book holiday activities before they start their journey, especially for tickets to guided sightseeing tours and to miscellaneous tourist attractions. Also various tickets are booked during the trip by American visitors. Source: VisitBritain/IPSOS 2016, base: visitors (online survey) 39
2.3 Booking and planning: lead-times Decision lead-time for visiting Britain 70% 60% 50% 40% 30% 20% 10% 0% 60% 37% 36% 32% 31% 28% 6+ months before trip 20% 21% 3-6 months before 10% 15% 22% 17% 1-2 months before 9% 7% 14% 25% Less than 1 month before % starting to think about trip at each stage 7% 2% 3% 4% Don't know American travellers to Britain show a slightly higher tendency to start thinking earlier about their trip than the all market average. Six in ten of the American visitors tended to start thinking early about their trip to Britain, i.e. half a year or more in advance of their journey; 21% did this three to six months in advance. 37% made their decision to travel to Britain longer than six months before the actual journey, another 36% made their decision three to six months before departure. Almost one third of American visitors looked at options and prices between three and six months ahead of the trip and an almost equal share booked their trip in that same time frame. Americans are more likely to book directly with the airline / train / ferry operator or directly with the accommodation provider than the all market average. % deciding on the destination at each stage % looking at options/prices at each stage % booking the trip at each stage Source: VisitBritain/IPSOS 2016, base: visitors 40
2.4 Reaching the consumer Reviews play an important role for American travellers when choosing their destination. Other influential sources for destination choice are friends, family and colleagues followed by information from search engines. Younger Americans (18 to 34 years) are more likely to consume different types of content across a variety of devices. Total media consumption has increased significantly in 2016 especially due to a higher amount of time spent on aps or websites on tablets or smartphones and multimedia devices. Despite this development, the highest proportion of media time is still spent watching TV. Facebook dominates the social media platforms in the USA Source: VisitBritain/IPSOS 2016, Nielsen 41
2.4 Reaching the consumer Broadcast media TV (Live + DVR) reached 226 million users in 2016. On an average day in Q1 2016, Americans aged 18 and over watched TV for about five hours (live and DVR). Younger Americans (18 to 34 years) spent less time watching TV then those aged 50 and over, around three hours and seven hours per day respectively. Radio Radio reached 240 million users in 2016. Americans listen to the radio for an average of 1 hour and 52 minutes each day. Magazines AARP The Magazine is the world s largestcirculation magazine, with more than 47 million readers, targeting the 50+ audience. Other US magazines with a high circulation are AARP Bulletin, Better Homes And Gardens, Game Informer Magazine, Good Housekeeping, Family. Source: Nielsen, Cision, ComScore Mobile Metrix, Alliance for Audited Media Newspapers 169 million Americans read at least one newspaper each month. Readers of newspapers are relatively well educated and have a relatively high income. The digital distribution of newspapers has attracted more younger readers. Daily newspapers with the highest number of circulations in 2016 were USA Today, The New York Times, The Wall Street Journal, Los Angeles Times and New York Post. Newspaper circulation in print decreased in the past few years. Online media The growth in digital media usage time in the past few years is driven by smartphone usage. Mobile represented about two third of digital media time spent in June 2016. The apps with the highest number of unique US visitors (18+, June 2016) were Facebook, Facebook Messenger, YouTube, Google Maps and Google Search. Snapchat is becoming more popular across age groups. The social networks with the highest number of monthly users in the US are Facebook (171 million), Instagram (77 million) and Pinterest (69 million).
2.4 Reaching the consumer: social media on holiday Use of social media on holiday To keep in touch with people at home To post / upload photos of my holiday Look for recommendations for places to eat or drink I have not used social media at all on this type of holiday Share with others where you are / what you are doing while on holiday To let people know where I am at a given moment (e.g. checking in on Facebook) To help you plan / decide where to go or what to see or what to do Ask for advice on where to go or what to do Share my own advice or recommendations about visiting where I am USA 34% 25% 28% 23% 22% 20% 30% 29% 34% 29% 26% 19% 34% 30% 41% 44% 46% 39% 0% 20% 40% 60% All markets Staying connected when on a holiday is important for American travellers. 77% like to stay connected whilst they are on holiday and 81% regard a smartphone as essential whilst they are on holiday. In general, 64% tend to use the tablet/smartphone for general internet use rather than a laptop/desktop. Almost half use social media to post photos and keep in touch with people during their holiday. Facebook dominates the social media platforms in the USA in terms of daily usage, followed by YouTube, Instagram and Twitter. In general, 53% enjoy writing reviews of places they have been to on holiday on social media and 67% place trust in social media reviews from other tourists which is above average in comparison to other markets. Source: VisitBritain/IPSOS 2016, base: all respondents: Have you used social media in any of the following ways whilst on your last holiday to Britain (visitors) /on your last holiday to a foreign destination (considerers)? 43
2.4 Reaching the consumer: influences Influences on destination choice Talking to friends / relatives / colleagues 31% 40% Information from search engines [e.g. Google] 31% 33% Looking at prices of holidays/flights on price comparison websites 25% 31% Websites providing traveller reviews of destinations [e.g. TripAdvisor] 30% 32% Talking to friends or family in your social network (e.g. via Facebook / Twitter) 24% 26% An accommodation provider/ hotel website 25% 26% A travel guidebook 24% 25% Travel agent or tour operator website 20% 25% Travel blogs / forums 22% 22% Travel programme on TV 20% 19% A special offer or price deal you saw advertised online 18% 19% Travel agent or tour operator brochure 14% 18% An official tourist organisation website or social media site for the country or destination 17% 18% An official tourist brochure for the country / city / region 16% 17% A travel feature / article in a magazine or newspaper 17% 16% Direct advice from a travel agent/tour operator (face-to-face, over the phone) 15% 16% Images or videos your friends or family have posted to social media 16% 15% Images / information in online adverts 15% 17% A special offer or price deal you saw advertised offline e.g. in a newspaper, magazine or on TV 14% 15% Images or videos from a photo/video sharing social network site 14% 17% Travel app 14% 16% Images / information in adverts in a magazine or newspaper 12% 15% Articles on an online encyclopaedia e.g. Wikipedia, Wikitravel 12% 15% Images / information in TV adverts 11% 15% Seeing social media posts from celebrities talking about their holiday destinations 9% 12% Images / information on billboards / poster adverts 9% 11% Travel programme on radio 6% 9% Information in radio adverts 6% 11% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% USA All markets Source: VisitBritain/IPSOS 2016, base visitors & considerers. Which of the following sources influenced your choice of destination? (Market scores have been adjusted so that the sum of all influences for each market is equivalent to the global total, to enable meaningful comparisons) 44
2.5 Perceptions of Britain Americans rate Britain highly for contemporary culture and welcome but less for scenic natural beauty; Britain was rated 4th and 17th out of fifty nations respectively on these two attributes in 2016. Museums is the cultural product that is most strongly associated with Britain among Americans. A trip to Britain would be expected to be educational, exciting and/or fascinating by many Americans. Italy and Australia are the destinations that Americans consider the best place for delivering the things they most want from a holiday destination. However, the UK receives the highest score on the aspect that is perceived as the most important one during a holiday: having fun and laughter. Areas of strength for Britain include cultural attractions and ease of getting around. Britain is the 4th strongest nation brand among 50 nations Source: GfK Anholt Nation Brands Index 2013 and 2016, Arkenford 2013 45
2.5 Perceptions of Britain Britain s ranking (out of 50 nations) Measure American respondents All respondents Overall Nation Brand 4 3 Culture (overall) 5 5 The country has a rich cultural heritage 6 7 The country is an interesting and exciting place for contemporary culture such as music, films, art and literature 4 4 The country excels at sports 5 5 People (overall) 4 7 If I visited the country, the people would make me feel welcome 5 12 Tourism (overall) 6 5 Would like to visit the country if money was no object 5 5 The country is rich in natural beauty 17 24 The country is rich in historic buildings and monuments 7 5 The country has a vibrant city life and urban attractions 5 4 Source: GfK Anholt Nation Brands Index 2016 46
2.5 Perceptions of Britain Cultural associations Museums 46% 47% Music 33% 39% Films 33% 39% Sports 29% 36% Modern Design 25% 29% Pop videos 26% 29% Opera 21% 24% Sculpture 21% 24% None 16% 26% Street Carnival 13% 15% Circus 11% 13% 0% 10% 20% 30% 40% 50% Adjectives describing a potential trip to Britain Educational Fascinating Exciting Romantic Relaxing Spiritual Stressful Boring Risky Depressing 5% 7% 4% 6% 4% 5% 10% 8% 7% 7% 17% 16% 15% 21% 35% 31% 30% 39% 34% 36% 0% 10% 20% 30% 40% 50% United States All respondents United States All respondents Source: GfK Anholt Nation Brands Index 2016 47
2.5 Perceptions of Britain Holiday wants and % saying destination is best place for Importance GB FR IT AU GE NL 6.25 Have fun and laughter 26% 17% 18% 15% 11% 8% 6.16 Enjoy the beauty of the landscape 30% 45% 58% 57% 31% 33% 6.15 Offers good value for money 20% 20% 24% 20% 17% 15% 6.10 Explore the place 33% 22% 43% 40% 18% 8% 6.07 Experience things that are new to me 28% 27% 46% 45% 20% 24% 6.06 The people are friendly and welcoming 31% 24% 37% 48% 23% 29% 6.03 See world famous sites and places 54% 61% 70% 30% 39% 20% 6.02 Do something the children would really enjoy 37% 33% 37% 43% 26% 23% 6.01 Enjoy local specialities (food and drink) 26% 60% 68% 27% 36% 15% 5.98 It offers unique holiday experiences 37% 46% 53% 59% 33% 34% 5.95 Soak up the atmosphere 20% 31% 47% 29% 20% 8% 5.92 Provides a wide range of holiday experiences 38% 41% 50% 52% 31% 25% 5.87 Broaden my mind/ Stimulate my thinking 33% 43% 49% 39% 33% 26% 5.83 Experience activities/places with a wow factor 33% 45% 58% 43% 20% 18% 5.80 Have dedicated time with my other half 36% 48% 52% 41% 31% 29% 5.80 Visit a place with a lot of history/historic sites 57% 54% 66% 16% 43% 21% 5.78 Enjoy peace & quiet 19% 18% 27% 34% 15% 26% 5.77 Enjoy high quality food and drink (gourmet food) 24% 66% 72% 13% 28% 11% 5.73 Do what I want when I want spontaneously 39% 33% 32% 22% 17% 14% 5.64 Chill/ slow down to a different pace of life 14% 21% 29% 27% 11% 15% 5.64 A good place to visit at any time of year 21% 27% 35% 38% 17% 15% 5.63 Easy to get around by public transport 45% 38% 31% 21% 29% 21% 5.59 Be physically healthier 24% 28% 32% 41% 22% 26% 5.55 Get some sun 11% 17% 25% 45% 8% 8% 5.42 Feel connected to nature 19% 14% 30% 53% 11% 24% 5.36 Revisit places of nostalgic importance to me 27% 25% 23% 14% 27% 6% 5.31 Get off the beaten track 29% 18% 21% 51% 17% 8% 5.29 Feel special or spoilt 25% 43% 38% 31% 12% 14% 5.23 Good shopping 36% 56% 59% 27% 26% 13% 5.17 Meet the locals 15% 15% 29% 39% 14% 11% 5.17 Visit places important to my family's history 36% 23% 28% 19% 26% 14% 4.96 Experience adrenalin filled adventures 18% 23% 32% 65% 28% 14% 4.89 Go somewhere that provided lots of laid on entertainment/nightlife 43% 45% 48% 41% 36% 34% 4.85 Meet and have fun with other tourists 47% 14% 37% 39% 33% 18% 4.76 To participate in an active pastime or sport 19% 21% 31% 31% 11% 13% 4.65 Do something environmentally sustainable/ green 6% 27% 21% 49% 23% 14% 4.59 Party 30% 38% 28% 36% 41% 25% 4.54 Watch a sporting event 29% 27% 36% 24% 25% 10% 4.53 Fashionable destination 30% 62% 57% 26% 19% 15% 4.32 Do something useful like volunteering to help on a project 42% 36% 31% 35% 33% 30% Source: VisitBritain/Arkenford 2013 48
2.5 Perceptions of Britain Motivations for choosing Britain as a holiday destination Cultural attractions Wide variety of places to visit Wanted to go somewhere new Vibrant cities Countryside/natural beauty Easy to get around Somewhere English-spoken Visiting friends or relatives Ease of getting to the country A culture different from own A mix of old and new Contemporary culture Try local food and drink A good deal Security / safety Accommodation (variety & quality) Easy to get plan/organise Meeting locals Wide range of holiday activities The climate / weather Cost of staying in the destination Watching sport Visit a film/tv location Easy to visit with children Source: VisitBritain/IPSOS 2016, base: visitors (Market scores have been adjusted so that the sum of all motivations for each market is equivalent to the global total, to enable meaningful comparisons) 17% 23% 23% 20% 22% 22% 22% 22% 23% 22% 18% 22% 15% 21% 15% 19% 18% 19% 19% 18% 18% 18% 16% 18% 22% 17% 18% 16% 20% 16% 16% 13% 12% 13% 14% 12% 12% 12% 17% 10% 12% 9% 12% 8% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% USA 25% 26% 33% All markets 42% 49
Chapter 3: Access and travel trade 50
3. Access and travel trade 31 airports in the USA were connected to the UK via direct flights in 2016 with an average weekly capacity of almost 240,000 seats. This is the highest level that has been measured since 2006. Airline capacity is very important as 85% of American visits to the UK were made by plane in 2016. London Heathrow has 78% of this seat capacity, followed by London Gatwick and Manchester International. The travel trade structure in the US is made up of tour operators, online travel agents (OTA s) and front-line retail travel agents. 70% of American visitors to Britain book their travel and accommodation together. This is higher than the average international visitor (50%). Seat capacity from the USA to the UK has reached its highest level in 2016 since 2006 Source: Apex Rdc 2016, VisitBritain/IPSOS 2016, base: visitors 51
3.1 Access: key facts 85% of American visitors travel to the United Kingdom by plane. Another 12% arrive through the Channel Tunnel as part of a multi-country trip and 3% by ferry. Annual seat capacity from the USA has increased year on year since 2013 and has reached its highest level since 2006. Three airports in the UK welcome 92% of US direct flights into the UK. London Heathrow received more than 3 in 4 direct flights in 2016, followed by Manchester International and London Gatwick with 8% and 7% respectively. 85% of American visitors travel to the UK by plane. Access to Britain* Measure 2016 Weekly aircraft departures 901 Weekly aircraft seat capacity 239,376 Airports with direct routes in the USA 31 Airports with direct routes in Britain 14 Source: International Passenger Survey by ONS, GOV.UK, Apex RdC 2016 * non-stop flights only 52
Visits (000) Visits (000) Market and Trade Profile USA 3.1 Access: mode of transport Visits by mode of transport Sea and tunnel travel (000s) in 2016 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 2,933 405 118 Foot 84 384 16 Air Sea Tunnel Annual share by mode (2016) Coach 24 100% 80% 60% 40% 20% 0% 85% 74% 3% Source: International Passenger Survey by ONS 14% 12% 12% Air Sea Tunnel USA All markets Private Vehicle 5 9 0 200 400 600 Tunnel Sea 53
Departing seats Market and Trade Profile USA 3.1 Access: capacity Annual airline seat capacity trends Origin airport annual seat capacity (2016) 14,000,000 12,000,000 12,447,549 31% 20% 10,000,000 8% 8,000,000 6,000,000 4,000,000 2,000,000 5% 5% 5% 5% New York - John F. Kennedy International New York - Newark Liberty International Chicago - O'Hare International 8% 7% 6% Los Angeles International Orlando International Miami International 0 2006 2008 2010 2012 2014 2016 Source: Apex Rdc 2016: non-stop flights only San Francisco International Boston - Logan International Washington - Dulles International Other* *Airports with less than 5% annual seat share grouped in other: Hartsfield-Jackson Atlanta International, Las Vegas - McCarran International, Philadelphia International, Dallas/Ft. Worth International, Houston - George Bush Intercontinental, Seattle/Tacoma International, Charlotte - Douglas, Detroit - Wayne County, Phoenix - Sky Harbor International, Denver International, San Diego International, Tampa International, Orlando Sanford Intl, Minneapolis - St Paul International, Austin-Bergstrom International, Raleigh/Durham, Baltimore/Washington International Thurgood Marshall, San Jose - Norman Y. Mineta International, Salt Lake City International, Metropolitan Oakland International, Fort Lauderdale-Hollywood International, New Orleans - Louis Armstrong International 54
3.1 Access: capacity Destination airport annual seat capacity (2016) 8% 1% 1% 1% 1% Airline seat capacity by carrier (2016) 1% 1% 1% 3% 3% 7% 9% 14% 35% 78% 17% 19% London - Heathrow Manchester International Glasgow International Other* London - Gatwick Edinburgh Birmingham International British Airways American Airlines Delta Air Lines Norwegian Virgin Atlantic Airways United Airlines Thomas Cook Airlines Air New Zealand Thomson Airways Other Source: Apex Rdc 2016: non-stop flights only *Airports with less than 1% annual seat share grouped in other: Belfast International London Stansted, Newcastle, London - Luton, London City, East Midlands, Leeds/Bradford, Cardiff 55
3.2 Travel trade: general overview The travel trade structure in the US is made up of tour operators, online travel agents (OTAs) and front-line retail travel agents: Tour operators: this category covers escorted tours, FITs and Special Interest (which can incorporate both niche interests, such as antiques, gardening tours through to University Alumni large escorted group tours). Retail travel agents: this category covers independent and / or home based agents, consortia co-ops and franchise networks. Online travel agents: this category is dominated by Expedia and The Priceline Group with many subsidiaries being searched by the consumer, such as Priceline, Travelocity, Booking.com, Hotels.com and Kayak. It is a relatively complex mix as operators can sell consumer-direct or via travel agents; whilst travel agents compete head to head with OTAs mainly on air and accommodation and yet offer a more detailed and tailored service for those consumers wishing to book a more complex trip. 56
3.2 Travel trade: general overview American travellers seek off the beaten track and authentic experiences. Even in more standard packages, consumers are looking for experiential moments that go beyond the ordinary tourist experience and create a sense of place. Other growth areas in the American travel market include culinary tourism and soft adventure, which covers a wide spectrum of activities that are low risk and require little or no experience. Many US outbound travel audiences are 50+ but the multi-generational and Millennial travel segments are growing. Millennials are mostly interested in FIT packages. There is a recognition among the US trade of the need to diversify with new experiences and destinations. However, the trade are consumerdata driven and unlikely to develop new product / packages unless there is proven consumer demand. Seven out of ten American visitors to Britain book their travel and accommodation together. 30% 70% Booked travel & accommodation together Booked travel & accommodation separately 57
3.2 Travel trade: American holidays National public holidays 2017 2018 National public holidays 2 January 1 January New Year s Day 16 January 15 January Martin Luther King Jr. Day 20 February 19 February Presidents Day 29 May 28 May Memorial Day 4 July 4 July Independence Day 4 September 3 September Labor Day 9 October 8 October Columbus Day (most regions) Major Jewish holidays Rosh Hashana 21 September 2017 10 September 2018 Yom Kippur 30 September 2017 19 September 2018 Chanukah/Hanukkah 13 December 2017 3 December 2018 10 November 12 November Veterans Day 23 November 22 November Thanksgiving Day 25 December 25 December Christmas Day Source: www.timeanddate.com/holidays/us/ 58
3.2 Travel trade: practical information General practical information Standard business hours are Monday to Friday, 9am-5pm local time. Note that many businesses will close early on the day prior to a major public holiday. The US operates on 4 time zones; Eastern Standard Time (EST), Central Standard Time (CST), Mountain Standard Time (MST) and Pacific Standard Time (PST). They are respectively 5, 6, 7 and 8 hours behind GMT. When making appointments it is best to avoid Monday mornings and Friday afternoons. It is also recommended to check dates for major Christian & Jewish Holidays as this can affect attendance at events and/or meetings. Direct eye contact is important and in most situations you can call people by their first names. However, in formal circumstances, you may want to use titles and surnames as a courtesy until you are invited to move to a first name basis, which will happen quickly. Business cards are exchanged without formal ritual. Americans tend to speak clearly and in a straightforward manner. Your own business delivery should be polite and yet mirror the US expectations displayed during the meeting. Do research on the company and be knowledgeable of what travel agency consortia they may prefer. Identify the opportunity for business and discuss the point in hand and if follow-up is required this should be done in a timely fashion and within a 24-hour turnaround period. When calling on wholesalers, quote net prices, sufficient to allow them a 20%-25% mark-up, as they will have to relinquish at least 10% to a travel agent. The best times of the year to call are between January and April for travel agents and between April and June for wholesalers. Lead time with tour operators varies from 6 months to 2 years to see a new product come online. UK suppliers can also sell through a representative in the US. This is an effective method and normally the most costly means of selling your product overseas. 59
3.2 Travel trade: Planning cycle Planning cycle The planning cycle for operators depends on the size of the company and business focus. Many do have main season and off-season product, so will engage in the buying process with suppliers in spring for the following year. Generally speaking, we suggest a minimum of 2 years lead time for an escorted operator to get new product on the shelf and out to the consumer or travel agent. Alternatively, FIT/independent travel product can be more flexible and allow for shorter lead time (6 months to 1 year) for integration into their existing business model. Operators will need time for planning, sourcing product, costing and pricing. Be prepared to consider offering co-operative marketing dollars to support the marketing necessary to promote this new product. For the most part, contracting for the following year can start any time from the fall (World Travel Market) through until June. Brochure production time is mainly September/October in order to release Early Bird special offers, in the fall, for promotion for the following season. Although the planning cycle is shared here, some independent operators will develop product at various times throughout the year as many no longer publish printed brochures. This allows more flexibility with developing and promoting new offers online. 60
3.2 Travel trade: hospitality etiquette Meeting etiquette Plan your travel schedule in advance. In major US cities where traffic is heavy, it is recommended to double the estimated travel time just to be safe. Arrive on time, call ahead if running late. Be prepared with your objectives you wish to accomplish from a face to face meeting. If you arrive unprepared, remember there is probably another product supplier hot on your heels and next in line. At certain key contracting times, it is not uncommon for VisitBritain to know of 3+ British suppliers to be in a city at any one time, all undertaking independent sales calls to the same tour operators / travel agents. Hospitality etiquette When hosting a US client for dinner or drinks you should be prepared for the check (bill) to arrive either inclusiveof or subject-to a gratuity. This can vary from 15 to 20% dependent on the service. It is not advisable to dismiss the addition of a gratuity as it is common practice, and an expectation in the US service industry, and you would embarrass a US client if you did not make the gratuity addition. A hosted client may stay for the minimum time it takes to dine and conduct a business discussion but do not be surprised if they make their excuses to leave after that point. Unlike many British people whom may extend the evening to get better acquainted and have access to good public transport in all cities, Americans may have to drive home or travel long distances and so time can be precious. 61
3.3 Caring for the consumer Accommodation As many will arrive in Britain on overnight flights from the US consideration for early check-in at hotels/accommodation is always appreciated. If you are their first port of call from the airport, try and arrange for some form of hospitality and services when they arrive, especially if their accommodation is not ready. This mainly applies to business visitors and those on upscale FIT trips. Americans are used to larger rooms than are generally found in Britain and, without exception, to having private bathroom facilities. Americans view accommodation as an important part of the travel experience. They will put a premium on staying at a historic/grand property or a hotel that reflects the local culture. The majority of Americans will want to stay in a 3-star plus property in a good/central location. They are used to larger beds. Health and wellness is trending in the USA. More Americans are looking for destinations that cater to that interest (e.g. yoga, meditation, spa, staying active). Language The old adage Two nations separated by one common language holds true to a certain extent. American English does differ in many common words, and Americans find the British accent very interesting. This may cause confusion and yet at the same time serve as an ice-breaker for visitors and locals alike! It forms part of the charm and intrigue that Americans appreciate about Britain and adds to the authenticity of the travel experience. According to the Central Intelligence Agency 79% of Americans first language is English. Spanish is for 13% the main language. Source: CIA Worldfactbook 2017 62
3.3 Caring for the Consumer Food and drink For American travellers food is not considered a priority factor in planning a holiday. Food is seen as a secondary consideration behind price, safety, historical landmarks and cultural experiences. While existing stereotypes mean there is a lack of excitement about British cuisine pre-visit, perceptions improve after having visited due to the culturally diverse range of foods available and the modern food scene. 89% of American visitors to the UK were satisfied with their food and drink and 53% were very satisfied; both scores are above average for all visitors to the UK. 71% of American international travellers think that British food products are good quality. American travellers want food experiences that are off the beaten path; they seek authentic and unique experiences. Recommendations by locals are highly valued. There is a particular interest in locally sourced and organic produce and vegan and Gluten Free food is becoming more and more popular as a dietary choice. Americans will tend to eat an evening meal fairly early, especially those with families. Visitors from metropolitan cities may have more flexible eating habits as restaurants tend to open late. Americans are very comfortable paying for goods and services with a credit card. America has a tipping culture when it comes to service, and tipping between 15-20% of the food total bill is standard. As a result of this they will expect good service from restaurants, even on the budget side, with tap water provided and refilled as happens routinely in most US restaurants. Source: International Passenger Survey by ONS, VisitBritain/ICM A taste of Britain 2017, VisitBritain/ORC qualitative research 2017 63
3.4 Working with VisitBritain We can help you extend your reach through: Digital and social media such as through Twitter, our Facebook page Love GREAT Britain, or Pinterest Press and PR by sending us your newsworthy stories or hosting our journalists and broadcast crew Leisure, and the business travel trade via our programme of sales missions, workshops and exhibitions or promotion to our qualified Britagents and supplier directory Print advertising in targeted media/britain supplements Retailing your product through the VisitBritain shop Or as a major campaign partner We are here to support you and look forward to working with you. To find out more browse our opportunity search (visitbritain.org/opportunities) or trade website (trade.visitbritain.com) or contact the B2B events team (Email: events@visitbritain.org) or campaign partnerships team (Email: partnerships@visitbritain.org) or trade support team (Email: tradesupport@visitbritain.org) 64
3.5 Useful research resources We have dedicated research and insights available which include: Latest monthly and quarterly data from the International Passenger Survey by ONS (visitbritain.org/latest-monthly-data visitbritain.org/latest-quarterly-data-uk-overall visitbritain.org/latest-quarterly-data-area) Inbound Tourism Trends by Market visitbritain.org/inbound-tourism-trends Sector-specific research visitbritain.org/sector-specifc-research 2017 Inbound Tourism Forecast visitbritain.org/forecast Britain s competitiveness visitbritain.org/britains-competitiveness We are here to support you and look forward to working with you. To find out more about the USA or other inbound markets browse our markets & segments pages (visitbritain.org/markets-segments) or our inbound research & insights (visitbritain.org/inbound-research-insights) or contact us directly (Email: research@visitbritain.org) 65
3.5 Useful market-specific research resources We have dedicated research and insights available which include: Planning, decision-making and booking cycle of international leisure visitors to Britain https://www.visitbritain.org/understandinginternational-visitors Technology and social media https://www.visitbritain.org/understandinginternational-visitors Gateways in England, insights on overseas visitors to England's regions, participation in leisure activities, multi-destination trips and more visitbritain.org/visitor-characteristics-andbehaviour We are here to support you and look forward to working with you. To find out more the USA or other inbound markets browse our markets & segments pages or (visitbritain.org/markets-segments) our inbound research & insights or (visitbritain.org/inbound-research-insights) contact us directly (Email: research@visitbritain.org) 66
Market and Trade Profile: USA Market and Trade Profile USA