IPW Countdown—New Numbers on Top Source Markets
“We’re facing the continued strength of the dollar,” Erin Francis-Cummings, president and CEO of Destination Analysts, told delegates attending the NAJ’s recent RTO Summit East in New York. She nonetheless showed that about half the traveling population in some key markets plan to either travel more or spend more on travel this year, and that the United States is still the most desired destination of international travelers.
For her report, The State of the International Traveler, Francis-Cummings drew upon the results of her San Francisco-based company’s just completed survey, which features 15 major global markets (of the Top 15 international source markets listed by the U.S. National Travel and Tourism Office, all but Colombia and Spain were included in the survey) over a wide range of travel-related activities as they related to the U.S.
In sum, said Sallie Berry, tourism sales and marketing manager at Corning Museum of Glass and emcee for the Summit’s program, said after hearing the presentation, “Despite the exchange rate, people still want to come to the USA.” The tables that follow are from the presentation of Francis-Cummings. (A second selection of tables from Destination Analysts, focusing on travel planning and sources of information, will appear in the next issue of The Inbound Report.)
Intent to Travel: International
(% that expect to travel more in the next 12 months)
| Country | 2014 | 2015 | 2016 |
|---|---|---|---|
| Brazil | 66.90% | 66.40% | 72.50% |
| Mexico | 69.30% | 61.00% | 66.40% |
| China | 77.10% | 68.40% | 65.10% |
| Argentina | - - | - - | 61.00% |
| India | 52.40% | 58.70% | 52.80% |
| Italy | 32.90% | 39.60% | 46.60% |
| South Korea | 45.30% | 48.40% | 46.40% |
| UK | 24.20% | 32.20% | 33.70% |
| France | 28.80% | 32.70% | 32.80% |
| Australia | 32.30% | 33.40% | 31.50% |
| Canada | 26.70% | 33.50% | 31.20% |
| Germany | 25.70% | 29.60% | 31.10% |
| Netherlands | - - | - - | 27.50% |
| Japan | 23.80% | 24.40% | 24.30% |
| Russia | - - | 33.70% | - - |
| Source: Destination Analysts |
Expected Travel Spending: International
(% expect to spend more in the next 12 months)
| Country | 2014 | 2015 | 2016 |
|---|---|---|---|
| China | 75.20% | 65.00% | 63.10% |
| Brazil | 55.90% | 58.80% | 61.10% |
| India | 56.10% | 58.90% | 56.40% |
| Mexico | 47.00% | 46.80% | 54.00% |
| South Korea | 52.90% | 52.50% | 51.20% |
| Argentina | - - | - - | 45.60% |
| Italy | 32.80% | 34.70% | 43.40% |
| UK | 29.80% | 38.90% | 37.30% |
| Australia | 33.20% | 35.80% | 34.70% |
| France | 25.70% | 33.30% | 34.60% |
| Canada | 28.10% | 35.20% | 33.00% |
| Germany | 26.70% | 30.50% | 25.40% |
| Japan | 26.60% | 25.90% | 29.30% |
| Netherlands | - - | - - | - - |
| Russia | - - | 44.40% | - - |
| Source: Destination Analysts |
Days Available for International Travel
(Average expected number of days available for international travel)
| Country | Number of Travel Days Available |
|---|---|
| Netherlands | 22.9 |
| Australia | 22.1 |
| Brazil | 20.9 |
| UK | 20.4 |
| Argentina | 20 |
| Germany | 19 |
| Canada | 16.4 |
| Italy | 16.4 |
| Mexico | 16.2 |
| France | 15 |
| China | 14.2 |
| India | 13.9 |
| South Korea | 10.8 |
| Japan | 7.2 |
| Source: Destination Analysts | |
Budget Available for International Travel
| Country | 2015 | 2016 | Change |
|---|---|---|---|
| China | $6,070 | $6,154 | 1.40% |
| Australia | $5,674 | $5,600 | -1.30% |
| India | $5,451 | $4,549 | -16.50% |
| Brazil | $3,990 | $4,497 | 12.70% |
| UK | $3,684 | $4,200 | 14.00% |
| South Korea | $4,190 | $3,718 | -11.30% |
| Germany | $3,188 | $3,346 | 5.00% |
| Argentina | - - | $3,244 | - - |
| France | $3,623 | $3,198 | -11.70% |
| Mexico | $3.40 | $3,170 | -6.70% |
| Japan | $3,157 | $3,150 | -0.20% |
| Canada | $3,592 | $2,969 | -17.30% |
| Netherlands | - - | $2,880 | - - |
| Italy | $3,023 | $2,791 | -7.70% |
| Source: Destination Analysts |
Question: What are the three foreign countries that you would most like to visit in the next 12 months? (Write in up to three)
Most Desired Global Destinations: United States
(Percentage Writing in United States)
| Country | 2015 | 2016 | Rank |
|---|---|---|---|
| Mexico | 65.20% | 58.20% | #1 |
| Brazil | 61.80% | 64.20% | #1 |
| India | 56.10% | 45.00% | #1 |
| Canada | 53.50% | 40.90% | #1 |
| Japan | 47.10% | 43.80% | #1 |
| UK | 44.30% | 28.50% | #2 |
| South Korea | 43.60% | 33.40% | #2 |
| Australia | 41.90% | 27.80% | #1 |
| China | 41.50% | 35.30% | #1 |
| Italy | 40.20% | 32.80% | #1 |
| France | 31.50% | 24.80% | #3 |
| Argentina | - - | 34.10% | #2 |
| Germany | 16.50% | 14.40% | #5 |
| Netherlands | - - | 11.20% | #7 |
| Source: Destination Analysts | |||
Most Desired International Destinations (Overall)
| Destination | 2015 | 2016 | % Change |
|---|---|---|---|
| USA | 37.30% | 35.30% | -5.5 |
| France | 18.40% | 18.10% | -1.6 |
| Spain | 15.10% | 16.90% | 12.5 |
| Italy | 16.00% | 15.00% | -6.3 |
| UK | 15.10% | 14.50% | -3.7 |
| Source: Destination Analysts |
Likely Visitation to the U.S. (Next Two Years)
| Source Market/Country | % |
|---|---|
| Brazil | 77.50% |
| India | 73.20% |
| Mexico | 70.30% |
| China | 62.50% |
| Canada | 59.10% |
| German | 51.30% |
| Italy | 45.50% |
| UK | 36.80% |
| South Korea | 33.50% |
| Argentina | 32.80% |
| France | 32.70% |
| Australia | 29.50% |
| Japan | 27.60% |
| Netherlands | 15.80% |
| Source: Destination Analysts |
What Will Tui Get Rid of Next?
Less than two weeks after announcing that it had agreed to sell Hotelbeds—its profitable, global bedbank operation—Tui broke the news that it is continuing the process of consolidating its brand identity by selling off its Specialist Group portfolio, which comprises 50 brands. Not included in this sale, said chief executive Fritz Joussen, are Crystal Ski and Thomson Lakes & Mountains, which will be transferred back into the main company, which is headquartered in Hannover, Germany.
The brands in the Specialist Group (it is now known Travelopia) are successful operations, explained Joussen, who added, however, “there is little vertical integration with the core tourism businesses.” In addition, he said, the potential impact on profitability and the large amount of brands are strong strategic arguments not to combine the portfolio under the Tui brand.
The decision to divest itself of the specialist brands is the latest move in a strategic direction announced by the Tui travel group following its merger with its parent company, Tui AG in December 2014. Five months later, the company announced that all of its operations would be brought under a single Tui brand, including its most well-known European companies—the UK’s Thomson and First Choice brands. At the time of the announcement, Tui’s portfolio of brands totaled more than 200.
Also last year, Tui sold its UK hotel booking website, Laterooms and closed its AsiaRooms site. In November, reports began to circulate that Tui was ready to sell Hotelbeds, which it did at the end of last month—for $1.3 billion—to the UK-based private equity firm Cinven and the Canada Pension Plan Investment Board.
But the Tui strategic vision is not entirely about divesting parts of its portfolio. When it announced that it was selling its Specialist Group, it also announced that it had reached an agreement to acquire Transat’s French tour operating company for $61 million as it seeks to increase its French business. According to the German trade publication fvw, “By acquiring fourth-placed Transat, TUI will rise from second to first place with 21 percent of the French market ahead of Fram and Club Med.”
New and Interesting Product
Who They Gonna Call? Madame Tussauds NYC Calls on the Ghostbusters for Unique Experience: In advance of the July 15th release of Ghostbusters, one of the most highly anticipated films of the summer, Sony Pictures, Madame Tussauds New York, Ghost Corps and THE VOID have teamed up to bring the paranormal battlers to life in a multi-sensory, all-immersive environment—Ghostbusters: Dimension, a first-of-its-kind, virtual reality (VR) experience based on the Sony movie. In Ghostbusters: Dimension, developed by THE VOID in collaboration with Ivan Reitman, Paul Feig and Sony Pictures, audiences will experience what it is like to be a Ghostbuster, tracking and trapping a supernatural foe through a New York apartment complex in an environment that combines physical props and sets, real-time interactive effects, and virtual reality technology designed by THE VOID. Schedule to open on July 1st, the VR experience will launch exclusively as part of the Ghostbusters Experience at Madame Tussauds New York in its Times Square attraction. The construction of this multi-layered and sensory environment is already underway and is designed to fully immerse visitors into the fantastical and spirited world of the new film. For more information about Ghostbusters Experience, visit www.ghostbusters.madametussauds.com.
Las Vegas Tour Company Adds Eldorado Mine Tour: DETOURS of Nevada is expanding its tour destinations to include the Techatticup Mine at Eldorado Canyon, one of the oldest gold mines in the United States. The half-day tour is open to individuals and small groups; it departs from the Las Vegas Strip. The Techatticup Mine at Eldorado Canyon is located in Clark County about 45 minutes southeast of Las Vegas. The tour begins after guests are picked up from their hotel on the Las Vegas Strip and driven just a short distance to the first photo stop at the Hoover Dam. After the one hour mine tour, guests will have time to shop and take photos of the surrounding mining town that appeared in a number of famous movies. At the conclusion of the mine tour, guests will be treated to one last photo opportunity at the Nelson Overlook. For more information, visit www.detoursnv.com, or call 702.458.0000.
Entertainment Cruises Expands D.C. Product: The Potomac Riverboat Company, which has been active in the Washington, D.C. marketing for more than 30 years, has joined the Entertainment Cruises family. The Potomac Riverboat Company has served the Washington, D.C., area with private charters, sightseeing and water taxi cruises for over 30 years. The addition of Potomac Riverboat means that Entertainment Cruises now has 38 vessels serving the USA: New York, Chicago, Washington, D.C., Boston, Baltimore, Philadelphia, Norfolk and South Florida. The company carries about 2 million guests annually. The Potomac Riverboat Company comprises more than a half dozen vessels that operate scheduled tours along the Potomac River, as well as water taxi service daily between Old Town Alexandria, Virginia, and National Harbor, Maryland. Entertainment Cruises’ existing family of brands in the D.C. area includes Odyssey, Spirit Cruises and Elite Private Yachts. Entertainment Cruises is a member of Pritzker Group Private Capital’s family of companies. For more information, visit www.entertainmentcruises.com, or call 800.700.0735.
Sleep-In Overnight Bus Service Offered between San Francisco to LA: A new bus service between Los Angeles and San Francisco has launched—the SleepBus—that departs from both San Francisco and Los Angeles at 11 p.m. and arrives at its destination six to six-and-a-half hours later, but allows passengers to sleep on before leaving the bus by 9 a.m. The bus, which is actually a retrofitted Volvo truck, has a sleeping pod for each passenger. Each pod has an electric socket (so passengers can power and charge your devices while under way) and there’s on-board WiFi, desks should guests prefer to sit up and work. There is also coffee and tea, and room for three bags and even a bicycle in the luggage compartment. There are discounted startup fares that will go up to $65 once the service expands. pickup and drop-off locations at the Caltrain station in San Francisco and the Santa Monica Pier in Los Angeles. For more information, visit www.sleepbus.co.
Among Global Tourism Destinations, the USA is Still the World’s Rock Star
This is what one learns from Sojern’s latest quarterly news on bookings and searches made by travel consumers worldwide in the first quarter of 2016: Most travelers would like to visit the USA, even if they do not ultimately do so. And as far as the people of North America are concerned, they like it even more than the rest of the world’s region’s according to the Sojern report. The following tables, charts and graphs help to illustrate the point.
The Enduring Appeal of the USA in Europe: Reviewing the Sojern report, one is struck by the popularity of the USA, or of one or two of its famous gateway cities, as travelers in every region of the world search for a destination. Nowhere is this more evident than in Europe, where the USA is the favored alternative destination for Europeans booking travel in their own continent.
(
Sojern’s quarterly insights reports are based on the analysis of more than a billion traveler intent data points, obtained through Sojern’s unique partnerships with some of the world’s top travel brands. The analysis is based on airport level data which is then aggregated to countries and regions. All of the insights are based on specific data sets as provided by Sojern’s data partners. Sojern’s data is rounded to the nearest whole number for readability and therefore not all charts and graphs will add up to 100 percent.
Younger Travelers Driving Chinese Shift to FIT Product
An increasing number of Chinese travelers are avoiding group tours and embracing independent travel, a new study has found. In its “China Unbounded: The Rapid Rise of China’s Outbound Millions” report, TripAdvisor found that China’s FIT market has grown dramatically, driven by a rising number of younger travelers. The study, which was conducted by Phocuswright and sponsored in part by TripAdvisor, surveyed more than 3,000 outbound Chinese travelers. In total, 120 million Chinese traveled overseas in 2015, spending $205.7 billion. Some key findings from the survey report results include the following:
—“More often than not,” TripAdvisor said, “China’s FITs are young, well-educated and relatively affluent”.
—Almost nine out of 10 (89 percent) Chinese FITs are aged 18-44.
—Two out of five (41 percent) fall into the 25-34 age bracket.
—More than three-quarters (77 percent) have an undergraduate degree or higher.
—44 percent earn a monthly income of approximately $2,300 or more.
—41 percent they can understand English.
—A larger share of Chinese FITs comes from first tier cities, with Guangdong province reporting the highest number, followed by Shanghai, Sichuan province, Beijing and Jiangsu province.
—On average, Chinese FITs have taken 5.5 international trips in their lifetime, higher than the overall Chinese average of 5.2.
—These travelers have a short travel planning cycle, with nearly one-third (32 percent) choosing their destination just one or two weeks prior to departure.
—Preferred destinations? Short-haul travel to neighboring countries continues to dominate outbound trips.
—More than 90 percent of Chinese FIT trips were to destinations in Greater China, North Asia and Southeast Asia, with Japan, Thailand and South Korea the top three countries.
—The USA, France and UK were the top long-haul destinations.
—Chinese FITs spend on average $2,729 per trip,
—29 percent spent $3,062 or more on their last overseas trip.
—Chinese FITs from bigger cities spent the most per trip, and the biggest spenders were found to be from Beijing ($4,047).
—Shopping (42 percent) is the most popular activity for travelers, especially on short-haul trips.
HODGE PODGE: Shifts, Shakeups and Occasional Shaftings in the Tour and Travel Industry
Kathy McKillip was suspended from her job as director of the Nebraska Tourism Commission on May 13th pending completion of an investigation into a number of issues uncovered in a state audit that was brutally critical of the way she has handled finances. McKillip, state tourism director for the past five years, will be paid during the “investigatory suspension” but must turn in her office keys and have no access to her office or agency computers. The board that oversees the Tourism Commission voted unanimously for the suspension following the release of a state audit that cited the commission and its director for overspending an advertising contract by $4.4 million, hiring a convention speaker for $44,000 for a 90-minute speech and for using McKillip’s daughter as a model in its advertising campaign.
The new CEO of L’tur will be Marek Andryszak, who has been head of Tui Poland since 2008. He will be replaced by Marcin Dymnicki, Tui Poland’s finance chief since 2009. In other moves at the Polish tour operator, Lukasz Lysiak, formerly with Amazon, is the new commercial manager and Pawel Bienkowski has been named as sales and marketing manager.
Direct sales specialist Berge & Meer, a Tui subsidiary, has named Torge Petersen as head of dynamic packaging with responsibility for expanding its beach holidays and city trips businesses to complement its sales of tours and cruises. Petersen was previously with dynamic packaging specialist Vtours and prior to that, with Thomas Cook.
In France, the HRS Group, the hotel portal that has inventory worldwide, including the USA, has undergone a reorganization in which HRS France has appointed Benedict Poron to the newly created position of director of business development, France. He will also be in charge of Belgium, Switzerland and Luxembourg markets.
Jeff Hillenmayer has joined the U.S. sourcing team at HRS as head of corporate sourcing. Its role will be to promote HRS sourcing solutions in the U.S. market. Before going to HRS, Hllenmayer served as vice president of enterprise services at Lanyon. He has also worked in revenue management positions at Hilton and Marriott.
Travelport has announced the appointment of Peggy Bianco as vice president, head of hotel sourcing, globally. A veteran of more than 25 years in the travel and tourism industry, Bianco was previously group vice president, global hotel services at Orbitz Worldwide, a job she had for seven years. Prior to this, Bianco held two other senior management roles at Orbitz: vice president, business development; and, before that, director of hotel sales & market management. Before joining Orbitz, Bianco held senior roles at Starwood Hotels & Resorts Worldwide and Hyatt Hotels Corporation.
At Thomas Cook India, Rajeev Kale, president and country head, MICE, will now be in charge of the company’s outbound leisure tour division, in addition to the domestic and meeting-incentive tour segment. Kale has been with the company since 2007. He joined Thomas Cook as associate vice president, focusing on the MICE market.
Helen Caron is moving up to become director for distribution and cruise at Tui UK to take over for Fraser Ellacott, who is leaving Tui UK and Ireland to take up a new position at Rentalcars.com. Caron joined the Tui Group in 2000 and has served in a series of managerial positions. Ellacott had been at the company for 11 years.
New York City & Company has named a new representative to serve the travel trade in Brazil. He is Rafael Gonçalves, who is part of the Brazil-based Interamerican Network team. Gonçalves joins the agency after tenures at several tour operators, including MMT Gapnet, Flytour Travel and New Line. To contact him, send an e-mail to Rafael@interamericanetwork.com.
