Tried & True Markets: France Germany UK

Tried & True Markets: France Germany UK

Agenda Facts & Figures: France Germany UK A huge piece of the European cake! The characteristic travelers from France, Germany & UK Summary & general tips Questions

Facts & Figures: France Germany UK A huge piece of the European cake!

So just how big is France, Germany & UK? Within Europe: Germany has the biggest population France is the largest in size The UK has invaded more countries than anyone else over the centuries (almost 200!)

Potential Travelers from F DE UK France 66.03 million Germany 80.62 million UK 64.2 million Total of nearly 211 million potential travelers That accounts for just under 42% of the entire European population

Total Visitors to the USA in 2014 from F DE UK France 1.625 million up 8% Germany 1.969 million up 3% UK 3.973 million up 4% Total of 7.567 million

Total Visitors to CRUSA in 2014 from F DE UK France 130,000 up 36.8% Germany 173,000 up 1.2% UK 258,000 up 5.3% Total of 561,000

Total Direct Spending 2014 in CRUSA from F DE UK France $65 million Germany $55 million UK $185 million Total of $305 million

When do the Europeans Travel? October, August and April are the top three months for the British to visit the U.S. August, October and September are the top three months for visits from Germany. The French tend to visit a little earlier with July, August and April as their top months for travel to the United States.

Daily nonstop flights to CRUSA (IAD & BWI) Up to 4 daily non-stop flights from France 28 flights/week 6 daily non-stop flights from Germany 42 flights a week (summer season: 45 flights a week) 8 daily non-stop flights from the UK - 49 flights a week In total up to 122 non-stop flights a week Of the top 10 Foreign Airports producing Passenger Traffic to/from US in 2014: London is #1 Frankfurt is #5 Paris is #6 British Airways, Lufthansa and Air France all feature in the top 10 airlines serving U.S. gateways.

Europe vs. China/Brazil In 2014 the number of arrivals from Europe to the USA = 13.732 million compared to 2.188 million from China and 2.264 from Brazil. By 2019 arrivals from Europe are projected to be 15.4 million. The largest growth from Europe will come from the U.K. (+569,000), France (+343,000), and Germany (+242,000). These growth forecasts reflect low growth rates based on large volume bases. China is expected to increase a total of 3.1 million visitors, or 172 percent through 2019. Brazil is expected to increase to 3 million visitors, or 43 percent through 2019. Each market is unique and changing. BRIC markets certainly have the stronger growth but the traditional markets are not going away!

The characteristic travelers from France Germany UK There is much more to know about us!

The characteristic travelers from France Germany UK What do you know already?

Where are we?

How do the French research and book their holiday? Nearly 50% rely on the internet to research for their next vacation (blogs, Trip Advisor, social media, etc). 60% purchase one or more travel guides (Michelin, Routard, Lonely Planet) to find their inspiration. In 2014, 40% booked their vacation online. Three quarters booked directly on the suppliers websites (hotel, attraction, etc.) and one quarter booked via OTAs (Expedia or Opodo). 11% book their vacation via a traditional travel agency (retailer).

How do the Germans research and book their holiday? Top 6 sources of information: Internet, including social media, mobile apps, etc. Catalogues of tour operators Travel agents (more important for long-haul travel) Personal Experience (repeat travelers) Recommendation of friends Magazines and daily newspapers, TV and radio Good to know: Minimum vacation entitlement by law in Germany: 24 days Germans book nearly four months before travel More than 31% of all trips are booked through a travel agency 35% of all vacations booked via internet (especially city-trips)

How do the Brits research and book their holiday? 8.5 out of every 10 people research &/or buy travel online. 58% of all travel last year was booked online. 43% of Brits turn to TripAdvisor for inspiration prior to booking - this has had a huge impact on travel agents, with less than a quarter of Brits (22%) now looking at travel brochures. Not all bad news for travel agents as they are still popular with package holidaymakers 37% who booked a package holiday in the last two years booked offline with a travel agent.

So where are the French travelling? In 2014, 74.3% of the French population took at least one vacation trip. 65% of them stayed in France (French Riviera, Atlantic Coast, Normandy, Alps, Corsica and Provence), 35% took a trip abroad. Top international destinations Top short haul destinations: Spain, Italy, Morocco, Turkey and Greece Top city break destinations: London, Rome, Barcelona, Amsterdam, Prague, New York City, Venice and Berlin Top long haul destinations: USA (#1 every year), Canada, Mexico, Thailand, China, India, Mauritius, Australia Top 3 U.S. destinations for the French: #1: New York City #2: Southwest (CA, UT, AZ and NV) #3: Florida

So where are the Germans travelling? 70 million trips in 2014 Over 1.96 million visited the United States in 2014 an increase of 2.7% compared to 2013 The most popular overseas destinations in 2014 were: Spain, Italy, Turkey, Austria, France, Croatia, Greece, Netherlands, Poland and the U.S. USA is the only long-haul destination in the Top 10

So where are the Brits travelling? 60+ million trips abroad in 2014 An increase of 4% (visits to North America rose by 8%) on 2013 and expenditures on these visits rose by 3% to $56 billion. The most popular overseas destinations in 2014 were: Spain, France, Italy, USA, Portugal, Greece, Turkey, The Netherlands, Belgium and Ireland. USA is the only long-haul destination in the Top 10

What kind of French are coming to CRUSA? The typical French traveler to CRUSA is a family of 4 or 5 Family travel represents a large majority of the French travelers in the summer months. Retirees the baby boomer generation in particular are more and more significant. They travel in larger numbers every year, have higher disposable incomes and like to travel off the beaten path.

What kind of Germans are coming to CRUSA? Main target group is between 40 and 55 years old But two future trends: 1.) The target group is getting younger for city trips 2.) More families are travelling Average length of stay for U.S. vacations = 18.9 days

What kind of Brits are coming to CRUSA? The 50+ age group is a booming demographic in the UK and the primary traveller to the region. The number of fifty-somethings in Britain matches the population of Australia! They own 80% of the UK s wealth, worth more than $440 billion and represent a huge opportunity to the travel industry. Average length of stay in the US = 17.6 nights

How long and where do the French stay? Visited 2.8 states on average Average length of stay within the Capital Region USA: 6.2 nights 73.3% of the total French visitors to CRUSA stayed in hotels, representing a total of 323,986 room nights up 25% vs. 2013.

How long and where do the Germans stay? Visited 3 states on average Average length of stay for the German traveler within the Capital Region USA is 5.5 nights 69% stayed in hotels In general Germans prefer: 48 % hotels (trend: smaller hotels, Inns, B&B) 24 % vacation homes & apartments 6 % camping

How long and where do the Brits stay? Visited 2.5 states on average Average length of stay for the UK traveler within the Capital Region is 9.3 nights Of these, just under 70% stayed in hotels In 2014 an estimated 876,000 CRUSA room nights were sold to UK visitors up nearly 26% on last year

What are the French coming to see & do? Key drivers: #1 Shopping 86.4% #2 Sightseeing 77.2% #3 Art galleries/museums 66.8% #4 Natl. Parks/Monuments 58.4% #5 Historical locations 50.0% #6 Small towns/countryside 45.8% #7 Fine dining 41.0%

What are the Germans coming to see & do? Sightseeing: Monuments, National Parks, historical locations Beach and Outdoor Recreation Small Towns Germans also shop, but that is not the main reason why they choose a destination

What are the Brits coming to see & do? Shopping Sightseeing: National Park & Monuments Small Towns Countryside Historical locations

How do the French travel? Approximately 25% of the French visitors to CRUSA rent a car and are on a fly and drive itinerary. Other popular means of transportation: train (Amtrak on the northeast coast), subway and planes (flights from one city to another). Motorcycle trips are becoming more and more popular.

How do the Germans travel? 47% rented car 37% city subway/tram/bus 7% railroad (between cities)

How do the Brits travel? 33% rented car 32% city subway/tram/bus 22% air travel (between cities) 12% bus (between cities) 6% railroad (between cities)

What do the French expect? The French expect breakfast at their hotel. (it is standard in France) Free Wi-Fi (90% of the French travelers stay connected during their vacation) Hotel rooms that can accommodate up to 5 persons (2 adults + 3 kids) Rates that are inclusive of all tax (it takes a while before the French traveler gets used to the tip or service charge ) A French TV channel in their hotel room (usually TV5 Monde)

What do the Germans expect? Germans love to have breakfast room rates including breakfast Over 50% of the Germans would like to use their Smartphone or Tablet during the vacation

What do the Brits expect? Breakfast included in the room rate is always preferred, but not expected. Free Wi-Fi is now something they look for. Any other added bonuses wine receptions, cookies at check-in a Brit will queue for anything that is free!

What do the French spend their money on? $65,286,000 in direct spending to CRUSA in 2014, up 35.5% vs. 2013 Shopping Museums, attractions Restaurants

What do the Germans spend their money on? 2014 Germans spend 87 Billion Euro for their travels an increase of 5% compared to 2013 $55+ million in direct spending while visiting the Capital Region Shopping (outlet malls and also souvenirs), culinary experiences

What do the Brits spend their money on? $185 million in direct spending while visiting the Capital Region, up 12% and increasing by more than $20.4 million from 2013. Shopping Food & Wine Sightseeing

Summary & general tips

Summary French Traveler 130,000 French visitors to CRUSA 2014 Spending $65 million Visit 2.8 states on average 323,986 room nights in the region 73.3% stay in hotels Stay for 6.2 nights in the region Family traveler looking for the true American experience Primary families with 2 or 3 kids We LOVE: Shopping Sightseeing Art galleries National Parks

Summary German Traveler 173,000 German visitors to CRUSA 2014 Spending $55 million Visit 3 states on average 268,583 room nights in the region 69% stay in hotels Stay for 5.5 nights in the region The early booking and well-prepared road trip lover Primary travelers 40 55 We LOVE: Sightseeing Beaches Outdoor Recreation Small Towns

Summary UK Traveler 258,000 UK visitors to CRUSA 2014 Spending $185 million Visit 2.5 states on average 876,000 room nights in the region 70% stay in hotels Stay for 9.3 nights in the region Seasoned USA traveler looking for a great deal Primary traveler 50+ We LOVE: Shopping Sightseeing Small Towns Countryside History

What do we have in common? USA is the #1 long-haul destination Well established product in all three markets Lengthy holiday entitlements Great air service to the region Stable geo-politics English (American!) knowledge

How to get your products into our markets FAM TRIPS Showcase your products to key travel trade personnel and media RECEPTIVES The majority of tour operators buy through receptive operators CRUSA MARKETING Join one of the many in-market promotions SALES MISSIONS Media and trade contacts directly in the market INFORMATION Keep the CRUSA in-market reps updated on everything new

Tour Operator Product Example

Tour Operator Product Example

Tour Operator Co-op Example

Tour Operator Co-op Example

Tour Operator Product Example

Tour Operator Product Example

Tour Operator Product Example

Tour Operator Product Example

Tour Operator Co-op Example

Tour Operator Co-op Example

Questions

Merci, Danke & Thank You! Olivier, Maria & Lisa