Complete Issue June 21, 2018

More than 9 out of 10 Brazilians Search Online before Purchasing Travel

According to a new survey, 92 percent of Brazilians are looking for price and destination information before making package purchases.

One of the segments that most generate research by travelers, said the results of the survey, which was conducted by Mind Miners for Paypal Brazil, is airfare—53 percent of travelers collect airline ticket information on the internet. Also:

—Four out of 10 researchers (41 percent) opt for meta search engines

—27 percent go directly to company websites, suggesting that brand loyalty could be a factor for some researchers.

—The remaining 35 percent in the survey focus on price, preferring to do their research directly at travel agencies.

In another Paypal-sponsored survey—this one conducted by Big Data Corporation—about one out of every eight tourism-related websites are for travel agencies. Specifically, there are more than 21 million websites in Brazil, with nerly 340,000 dedicated to the tourism sector; 19 percent of them conduct some kind of electronic sales transaction. (For the survey, Big Data considered as ‘travel agency’ site all those who sell packages and not necessarily big companies). Also:

—Tourism sites are represented by hotels (20 percent), travel agencies (12 percent), ticket sales (7 percent), a wide range of travel blogs (41 percent) and corporate sites (14 percent).

—All totaled, about 24 percent have physical stores.

—Nearly two-thirds (64 percent) of the travelers consulted guarantee-to-hire services through the internet (37 percent of them in shopping sites and 13 percent directly with the company), while 29 percent still prefer to go to the travel agency to make purchases.

Tour Operators and Travel Agencies are a €60 Billion Industry in Germany

The latest report to come out of the German travel trade publication fvw’s dossier shows that last year, tour operators and travel agencies together comprised an industry with annual sales of €60.1 billion ($69.8 billion).

The publication said that the German tour operator market, which accounts for a large proportion of travel agency sales, grew by a higher 8 percent last year to €33.7 ($39.1 billion) billion last year. In addition, online travel agencies (OTAs) and tour operator websites increased revenues by as much as 14 percent, according to the dossier as traditional travel agencies are continuing to lose market share in a growing market.

Travel agents increased their combined sales by 4.6 percent to €26.4 billion ($30.6 billion) last year, according to the annual fvw “German travel sales” dossier based on company figures and calculations by the German Travel Industry Association (DRV). This helped to make up for a 2.4 percent decline in 2016 and took revenues above 2015 levels.

Tourism sales increased by 5 percent to €14.8 billion ($17.2 billion), which did not fully recover from a 5.6 percent slump in 2016.The number of full-time and part-time travel agencies dropped by 306 (or 2.75 percent) to 11,116, according to the dossier.

Meanwhile, It Was a Busy Month: According to the latest monthly analysis by the Nuremberg-based research group GfK (Gesellschaft für Konsumforschung, or Society for Consumer Research), travel agency sales for May increased by 8 percent. The cumulate seasonal increase vs. last year is now 14 percent, as 83 percent of last year’s summer booking levels have been achieved.

It is still difficult to determine what the year is producing for German tour operators who buy Visit USA product. Early reports from operators who were at last month’s IPW trade show in Denver were mixed, with no one particularly enthusiastic in their outlook for the year.

Top 10 Most Popular Destinations Among Canadians

While the highlighted numbers in the last report from Destination Canada show that—based on just-released data covering the First Quarter of 2018—the country is experiencing another year of record inbound traffic, it is also increasing its tally of visitors to the United States in healthy numbers, ending a slump that saw Canadian arrivals to the U.S. fall by about 3.7 million visitors from 2014 through 2016.

Because the U.S. National Travel and Tourism Office (NTTO) earlier this year halted the release of inbound visitor numbers pending work on to correct problems with the way that the Department of Homeland Security was tallying the information, there are no similar NTTO data for Q1 2018. However, the NTTO figure for Q1 visitors from Canada to the United States was 4,610,202. The 6.2 percent increase reported by Destination Canada for the same periods would translate into a number—4.9 million*—that is just about the same as the 4.9 million in the table above.

* (4,896,034: Source: U.S. Department of Commerce, International Trade Administration, National Travel and Tourism Office—from Summary of International Travel to the U.S. (I-94) report. I-94 March 2017 monthly arrivals data are preliminary, with these data subject to revisions that may be possible with improved solutions and/or sources discovered during the reported calendar year. Released August 2017.)

The Brand USA View: The upbeat report from Destination Canada seems to buttress the report on Canada recently released by Brand USA and its regional director for Canada, Karly Melo.

First, some background info:

First time Canadian visitors to the U.S. comprise 12 percent of the total. (2016)

Repeat Canadian visitors to the U.S. comprise 88 percent of the total.

Source: NTTO

The Top 10 Popular Destinations among Canadians (Most searched for destinations on KAYAK) are:

Orlando; (2) Fort Lauderdale, Florida; (3) Cancun, Mexico; (4) Honolulu, Hawaii; (5) San Jose, Costa Rica; (6) Las Vegas, Nevada; (7) Puerto Vallarta; (8) Miami, Florida; (9) Los Angeles; (10) Kahului, Hawaii

Source: Kayak.com

Where They Travel

Source: Long-Haul Destination Market Share, Oxford Economics 2016-2021 (Projected)

Drivers of Growth

—Canada is in a period of economic growth

—Baby-boomers represent a significant portion of the population

—Canadian residents from various ethnic communities travel to their country of origin to visit friends and family

—Canadians are familiar with digital marketing and are among the most active populations on social media

Source: Trading Economics 2017

Travel Interests

—Beaches/seaside attractions

—Cultural/historical attractions

—Local lifestyle

—Dining/gastronomy

—Shopping

—Sporting events Travel Interests

Source: Transport Canada

Air Service: Canada has 26 national airports, 71 regional and local airports which handle 62 million aircraft movements and more than 140 million passengers. As of 2016, regularly scheduled Canadian airlines serviced 90 U.S. Cities. (Source: Transport Canada)

NEW PRODUCT

Under Canvas Mount Rushmore: Combining pristine nature and luxury accommodations, the new Under Canvas Mount Rushmore in Keystone, South Dakota is situated among pine trees with views of the iconic Mount Rushmore National Memorial. Guests have luxury tents featuring in-tent bathrooms, showers, king size beds, sleeper sofas and resort-like luxuries including daily housekeeping. The site also feature an on-site restaurant that provides unique dining experience where glampers can experience leisurely breakfasts, expertly packed box lunches to go and pioneer inspired dinner options. For more information including trip at-a-glance itineraries visit https://www.undercanvas.com/camps/mount-rushmore, or call 406.551.9093.

The National Museum of African American Music will open its doors next year in downtown Nashville. The new attraction will be the only museum dedicated to preserving the legacy and celebrating the accomplishments of the many music genres created, influenced, or inspired by African Americans. Being built in Nashville, the Museum will share the story of the American Soundtrack, integrating history and interactive technology to bring the musical heroes of the past into the present. For more information, visit nmaam.org, or call 615.301.8724.

The opening of Academy Museum of Motion Pictures is now set for 2019, a date that seems within reach now that the organization has passed the $300 million mark in gifts from benefactors—the goal is $388 million—and will make the Academy Museum will be the world’s “premier institution dedicated to the art and science of movies.” Located on Wilshire and Fairfax in Los Angeles, the Museum, will be simultaneously immersive, experimental, educational, and entertaining. The venue’s two key structures include: the 1,000-seat state-of-the-art David Geffen Theater, which will host a range of performances, screenings, premieres, and events with the world’s leading filmmakers; and the six-story Saban Building, which will feature more than 50,000 square feet of exhibition galleries, a theatre, restaurant and a store. For the latest updates on the attraction, visit www.academymuseum.org, www.academymuseum.org.

The Museum of Ice Cream has a new location, its third, in San Francisco. Following an unprecedented demand in Los Angeles and New York City, Museum of Ice Cream opens its doors this September at the historic 1 Grant Avenue in the heart of the city. Museum of Ice Cream features ten thematically tailored, immersive installations produced entirely by its in-house design team. Interactive elements include a magical candy garden, psychedelic rainbow unicorns, a push pop installation, a cherry on top sky, the renowned Sprinkle Pool and new tastings, including an original Museum of Ice Cream flavor. The pricey attraction will have its curators presenting the best of California ice cream, and visitors will indulge in one “scoop of the week,” from a rotating cast of creameries. For more information, visit www.museumoficecream.com, or call 855.258.0719.

From TourOperatorLand.com … Our Featured Partner of the Week—Arizona Office of Tourism

Are you big on adventure? Or maybe you want to relax? Perhaps family fun is more your style? From outdoor adventures to quiet moments, ancient stories to family memories, Arizona is a place that inspires, revitalizes and reignites your sense of wonder.

http://www.touroperatorland.com/index.php/destinations/arizona_office_of_tourism

INBOUND’s Founder Interviewed about Receptive Market by German Trade Magazine

The German travel trade publication, fvw, recently interviewed Jake Steinman, founder and CEO of the NAJ Group, which publishes the INBOUND Report, for a feature on U.S. receptive tour operators (See above). Following is a translation of the Q&A session.

FVW: How would you characterize the receptive tour operator market in the US?

Jake Steinman: Healthy but fragile because of these factors: a.With Tourico and GTA consolidating into Hotelbeds new booking companies are entering the market from Europe based on the hope that no one wants to work with a monopoly. So we now have G2, World2Meet, OTS Globe as new booking companies who have hired former Tourico and GTA contracting staff to build product. B.Meanwhile, several of those who were part of downsizing over the past three years have formed their own companies focusing on groups. Operating out of their apartments or lower rent areas, they leverage the trusted relationships they had with overseas buyers and suppliers built over the years to form new companies. So the number of small companies have grown. c. Also, in recent years, RTO’s—with their international contacts and contracts with suppliers have become DMC’s for international MICE and incentive groups. d. And finally, suppliers and DMO’s are realizing that the RTO’s represent bottom of the b2b sales funnel—or actual point of sale– as operators that cannot provide volume necessary to get favorable rates are buying through the RTO channel.

FVW: How do smaller receptives position themselves successfully against the “big boys“such as ATI, New World Travel or Hotelbeds?

JS: They operate either in regional niches, or they specialize in a specific areas of expertise, or they work with source countries where they have deep historical relationships. Ten years ago international operators worked with one RTO, today many have contracts with between 6-8 RTOs to ensure availability and/or specific services or regional knowledge. Additionally, smaller international operators feel more comfortable doing business with companies their own size.

FVW: Inbound travel to the US has been down for 2 years now – how does that effect smaller incoming agencies?

JS: While business is down they are in some cases reducing staff, while others diversify into new source countries, new niche markets or even creating outbound divisions. Also, the smaller operators, some of whom operate from their kitchen tables, are working with very low fixed overhead.

FVW:What does TourOperatorLand.com offer receptives to make their business easier?

JS:In addition to over 100 itineraries that are auto-translated into 60 languages, touroperatorland.com has built many new tools specifically requested by travel buyers including: 3000 royalty-free high resolution photos for over 200 US destinations that have been curated and are constantly updated. This year we also added a g

Group D ining page, dining that allows them to book group dining four different ways and we have built a Receptivefinder that enables international buyers to search for RTO’s by languages spoken in their office or by destination. They can also find marketing tools such as videos as well as the destination and attraction contacts.

FVW:What’s the main advantage of smaller inbound operators in comparison to major receptives?

JS: They are more nimble and flexible and are more likely to offer personalized, more attentive service like their lives depend on it because in a way, it does.

FVW: Are there other challengers besides the traditional receptives, e.g. the large online travel agencies (OTAs)?

JS: The biggest challenges are: the fact that they no longer can compete for the best deals for hotel inventory (in some cases they need to buy from their bed bank competitors) for FIT’s, which comprise upwards of 80 percent of the inbound travelers; they also complete for group business quotes with chain hotel’s GSAs or overseas corporate sales staff. Additionally, the big bed banks now compete with Expedia’s new wholesaler division which offers over 700,000 hotels.

FVW: Generally spoken, how do smaller receptives keep up with the high speed of digitalization?

JS: The smaller ones can’t really compete for FIT’s market as they cannot afford to invest in enterprise booking technology, but there are now several tech providers that are beginning to offer pay-as-you-go solutions with smaller investments. There also have access to “Channel Managers,” technology intermediaries that automate independent hotel properties and attractions using a transactional payment model.

FVW: Is this a pretty much stable market, or do you see a lot of start-ups. mergers and bankruptcies?

JS: The last one to close their doors was CTN, which happened in late 2016, but many more have opened up as the barriers to entry are quite low if one plans to focus on group business.

FVW: Are there any major challenges for the inbound industry, or do you see any coming up in the near future?

JS:Trump’s travel ban and other actions seems to have dampened enthusiasm for travel to the US from almost all of Western Europe. The positive aspects include more baby boomers retiring who want to travel to the US and Millennials are more DIY than ever and now have new sharing economy tools such as Evanoes and High Guides (China) that can open up many second and third tier destinations than ever before.

FVW: Do you have any recommendation for me – a US receptive with a unique product, an innovative idea or a great success story?

JS: Regional specialists: Rocky Mountain Holiday Tours (Western USA), and Rey Royal (South); TourMappers (began in New England and now expanded their product North America wide with innovative self-driving product- (Julie Katz); TeamAmerica (very innovative with offering a variety of product; Bonotel (upscale and the CEO, Faisal Sublaban, has become a social media maven supplying hotels with international social media marketing through his “Hotelboss” persona; America and Beyond, (Yves Fore) former AlliedTPro/Tourico/ATI groups person who left Tourico three years ago and struck out on his own.

At a Glance: Myrtle Beach, SC

For full information Click Here

HODGE PODGE: Shifts, Shakeups and Occasional Shaftings in the Tour and Travel Industry

Rossi Ralenkotter has confirmed reports that he will be retiring as CEO of the Las Vegas Convention and Visitors Authority. In making the confirmation, he gave no specific date. Ralenkotter has been with the CVA for nearly 45 years.

Eric Thomas, a long-time veteran of the receptive tour operator industry in the U.S. who most recently has operated his own tour company in New York, has joined Orlando-based GM Solution travel, a firm that specializes in groups and, in particular, the quinceañera market. Thomas, who will remain in the New York area, will be responsible for business development and industry relations as the company plans to grow its presence and expand into other U.S. destinations. Thomas was for many years a part of City Tours, a northern New Jersey RTO founded by his father and now headed by his brother Ray.

Marcela Andreta has announced that she is leaving Prime Consolidadora, where she worked for two years, to join the LTM Group in Alphaville. She notes that there are five companies under the umbrella of LTM, and that she will be in the marketing and products department of LTM Viagens.”

Rolf-Dieter Malzahn, managing director of DER Touristik-Marken in Cologne, has left the company at his own request in order to devote himself to new professional tasks. Maltzahn, a former TUI manager, spent a total of 10 years at DER Touristik, including four years in the company’s management. In 2014, he was appointed managing director of then-DER Touristik Köln, which last year—along with the branch in Frankfurt—became today’s DER Touristik Deutschland.

The tour operator FTI Voyages, a French subsidiary of FTI Group, has announced the appointment of Franck Gomes as group sales manager. His mission will be to double group sales next year. Formerly with MSC Cruises, Marsans, Look Voyages and Jet Tours, Gomes will report to Axel Mazerolles, general manager.

Bennish Brown, president and CEO of Travel Tacoma + Pierce County, has been named president and CEO of the Augusta CVB. He succeeds Barry White, who left the post earlier this year to head up the Chattanooga CVB. Before joining the Travel Tacoma + Pierce County, Brown was executive director of the Rock Hill/York County CVB in Rock Hill, South Carolina.

Bill Fitzgerald has been appointed vice president of marketing and communications for the Little Rock CVB. A 30-year veteran in the advertising and marketing industry, Fitzgerald’s resume includes tenures as creative director for Thoma Thoma in Little Rock; CJRW, where he worked on creative efforts for the Arkansas Department of Parks and Tourism; and Heifer International.

In Mexico, Sylvia Esquivel has been named to head up Viajes Palacio. She takes over from Gustavo Cantu, who had held the position for less than a year after he succeeded Luis Torres who had the position for 15 years. A veteran of more than 25 years in the tour and travel industry, Esquivel comes to the new post from Almundo.com, where she served as country manager of Mexico for just over three years.