Pandemic Has Changed Int’l. Market Shares
Reading the numbers—Western European share plummets; South and Central America increases. While they likely do not represent a lasting shift or have any real long-term meaning, the latest monthly data posted by the U.S. Department of Commerce’s National Travel and Tourism Office (NTT0) offer a snapshot of what the anemic pandemic-era overseas travel market has done to the overseas arrivals.
Released last month at about the same time as the last issue of INBOUND, the data for April 2021 tell us that a full year of the COVID-18 virus and the global pandemic that it brought about have produced the worst one-year period of overseas arrivals ever. But, as the tables below indicate, some country markets have actually improved their share of the U.S. overseas inbound travel market. Following are some notes from the expanded number of NTTO tables we feature for the month:
⦁ The year-on-year increases shown for the year ending with April are not errors. They show what happen when one compares an extraordinarily weak market from no market a year ago. (For most countries, the pandemic did not hit the global population until April 2020.)
⦁ The combination of Western Europe and Asia, which sent two-thirds of all overseas arrivals to the U.S. in April 2019 and almost 72 percent in 2020, this April produced less than 22 percent of all overseas arrivals.
⦁ Meanwhile, the regional markets of South America and Central America combined, which in April 2019 generated just more than 17 percent of overseas arrivals, and 16.5 percent in April 2020, produced more than 55 percent of overseas arrivals to the U.S. among world regions.
⦁ Of course, these numbers don’t represent a trend. They are, as has been noted, for a single month during the worst one-year period the inbound tourism industry in the United States has ever experienced. Given the amount of booking activity recently reported in some country markets as more nations opened their borders and created some two-way international traffic, there could be some meaningful recovery to report toward the end of the third quarter of 2021.
Normalcy A Step Closer for Brand USA
A small wave of “first-time-since-the-pandemic-face-to-face-and-live” conferences bringing together USA travel buyers, suppliers, DMOs and other travel and tourism industry players partly obscured the hybrid (Zoom and face-to-face in the same place) gathering of Brand USA for its regularly scheduled spring board of directors meeting.
Held just prior to the release of the last issue of INBOUND, the event marked the first time in well over a year that Brand USA leadership and staff were inside its downtown Washington, D.C. headquarters, with some 15 participants in place.
There wasn’t much discussion given over to the “back-to-business” symbolism of the session, which moved along crisply and ended within an hour. This seemed to comport with the agency’s oft-noted message since the spring of 2020 that, whenever the time would arrive—and it has—Brand USA would be ready.
Christopher Thompson, Brand USA’s president and CEO reported to the directors attending from all parts of the U.S. as well as key staff taking part on the eighth floor of 1725 Eye Street, NW, in Washington, D.C. to show that the organization and in-region representatives at key points throughout the world have indeed been ready.
“There are three basic things that we have to prove,” said Thompson. “One is that we’re ready. Two is extend that welcome mat again and reach out and let everybody know that they are welcome … and not only keeping the inspiration alive, but trying to force that inspiration into conversion.” These three are outlined, again, below.
(All dates are pending market conditions)
—Phase 1: Prove we’re ready by moving quickly into messaging. This starts August 1, and will be ongoing.
—Phase 2: “Welcome Back” phase to those seeking and interacting with BUSA. This phase begins on
October 1 and will be ongoing.
—Phase 3: This will be the “Entice and Convert” phase. It also begins October 1, and will be ongoing.
Which markets are top priority? Brand USA’s monthly consumer survey has indicated that the following four markets may be the first to return to international travel: UK, Germany, Mexico and Canada. (The UK and Germany are the top two European source markets for visitors to the United States, and Canada and Mexico are the top two source markets for overall international visitation.) The following four charts show the basic “who, what, when and where” of these four phase-one recovery markets.
Brand USA Travel Week is Back! In a sign of confidence in the future, Tracy Lanza , Brand USA’s senior vice president, integrated marketing, concluded her presentation with a brief announcement that “Travel Week 2021 will be revived! Originally held in September of 2019 in London as a Europe-USA marketplace. The 2020 edition was cancelled due to the pandemic.
More details to be announced. Stay tuned.
NOTES ON GERMANY
Agency sales down for April vs. April 2020, but outlook is more promising. For the first couple of months of 2021, the ta.ts* travel agency mirror, which reports on travel agency sales for the key tourism sectors showed that, compared to last 2020, sales this year were down 90 percent or more across the board. Now, however, in the latest monthly ta.ts report (for April), one learns that key sectors are not performing as badly as there were in January and April and that, in some sectors, activity is even greater than a year ago. The stats for April follow:
—The total invoiced turnover of the travel agencies recorded in the “ta.ts travel agency mirror” is minus 52.5 percent in April 2021 compared to the same month last year.
—The billed tourism turnover shows a minus of 76.5 percent in April.
—Air traffic revenue was down 20.1 percent in April.
—The “other” sales are plus up 26.9 percent.
—The number of tickets for entertainment, tours, etc. is plus 18.2 percent.
—Sales from the tourism sub-division cruises were down 58.0 percent in April. This is not surprising, since this sub-sector has struggled harder than any other throughout the pandemic.
—Viewed cumulatively, the total invoiced travel agency turnover in the months from January to April is minus 78.5 percent.
—Tourism recorded a decline of 88.1 percent.
—Air traffic recorded a minus of 79.0 percent.
—“Other” sales showed a minus of 59.6 percent.
—The number of tickets were minus 82.1 percent.
—Cruises segment recorded a minus of -84.5 percent.
* ta.ts (Travel Agency Technologies & Services) is a travel industry research company headquartered in Frankfurt.
⦁ Longing for long-haul: Meanwhile, from across the German travel trade, reports indicate that holiday bookings have been increasingly at a quick pace, as destinations in Europe and overseas are-opening for international visitors. A majority of Germans still want to take a holiday this year. And while domestic destinations lead bookings totals, foreign destinations are the destinations of choice.
⦁ Positive news for those Germans who favor rail travel: A new YouGov survey said that almost one out of every four Germans support a ban of short-haul flights. While it does seem that this issue would have any immediate impact on long-haul travel, it seems that it is emerging as a key environmental issue—one that could affect air travel on a broader scale. Consider some of the other findings from the survey:
—A third of (34 percent) favor the of raising taxes on flights to make them less attractive.
—One in four (26 percent) of those surveyed opposed any change to short-haul flights.
—Half of the respondents said they would support a speed limit of 130 kilometers (81 miles) per hour or less.
—43 percent of those surveyed would be in favor of a speed limit of 130 km per hour on highways, and
—7 percent would be in favor of a speed limit that is even lower.
—17 percent would be in favor of a limit above 130 kilometers per hour.
—A little more than one in four (27 percent) reject a general speed limit.
⦁ “The recovery of the market is not just beginning, it is already in full swing,” Tourcontact managing director Dirk Bender told the German travel trade publication fvw /TravelTalk that is why the company which works with more than 100 travel agencies, called on offices several weeks ago to end short-time work as soon as possible.
Short-term work, or Kurzarbeit, is a social insurance program whereby employers reduce their employees’ working hours instead of laying them off. Under Kurzarbeit, the government normally provides an income “replacement rate” of 60 percent (more for workers with children).
That is, a worker receives 60 percent of his or her pay for the hours not worked, while receiving full pay for the hours worked. So, for example, a worker would only experience a 10 percent salary loss for a 30 percent reduction in hours. The program usually runs for a maximum of 6 months consecutively. But it has been going on much longer due to the lasting nature of the global pandemic.
⦁ Tourcontact suggests the end of short-time work. “The recovery of the market is not just beginning, it is already in full swing,” says Tourcontact managing director Dirk Bender. That is why the company, which works with more than 100 travel agencies, has called on offices to end short-time work (or Kurzarbeit) as soon as possible.
Kurzarbeit is a social insurance program whereby employers reduce their employees’ working hours instead of laying them off. Under Kurzarbeit, the government normally provides an income “replacement rate” of 60 percent (more for workers with children).
That is, a worker receives 60 percent of his or her pay for the hours not worked, while receiving full pay for the hours worked. So, for example, a worker would only experience a 10 percent salary loss for a 30 percent reduction in hours. The program usually runs for a maximum of 6 months consecutively. But it has been going on much longer due to the lasting nature of the global pandemic.
NEW PRODUCT
⦁ The Bob Dylan Center® is slated to open on May 10, 2022 in Tulsa, Oklahoma. The facility, designed by Olson Kundig, an American architectural firm based in Seattle, will be located near the Woody Guthrie Center in the Tulsa Arts District, the center will feature over 100,000 exclusive artifacts covering 60 years of Dylan’s career. This will include handwritten lyric manuscripts, previously unreleased recordings and film performances, rare photographs, and more. A secret archive of Dylan’s works that was sold to the George Kaiser Family Foundation and the University of Tulsa in 2016. The center will be the primary public venue for the Bob Dylan Archive and will feature permanent, temporary, and traveling exhibitions. For more information, visit: https://www.bobdylancenter.com/
⦁ Dinosaur World was scheduled to open on June 9 at Sweet Valley Ranch in Fayetteville, North Carolina. Once inside, guests will take a shuttle ride to the ¼-mile, woodsy, paved Dinosaur Trail. The trail has 25 animatronic dinosaurs (large and small), an abandoned research lab, observation booths and plenty of special effect props. “We take pride in not being one of those ‘parking lot dinosaur attractions,’” says Fred Surgeon, owner of Sweet Valley Ranch. “We spared no details in taking guests back to a time when dinosaurs roamed the earth.” Once inside the attraction, guests will take a shuttle ride to the ¼-mile, woodsy, paved Dinosaur Trail. The trail has 25 animatronic dinosaurs (large and small), an abandoned research lab, observation booths and plenty of special effect props. For the price of admission, guests can also enjoy a fossil museum, a reptile house, a fossil dig, a Dinosaur Playland and walking the grounds to view the hundreds of animals on site. Dinosaur World opens June 9th and closes August 8th and is open weekly from Wednesday through Sunday. It opens at 10 a.m. each day. Tickets range from $16 to $39 for adults and $8 to $19 for children from 3 through 12. For more information, visit: www.sweetvalleyranchnc.com.
⦁ Canada’s Street Art: For operators and their clients who are looking for a free attraction to fold into their itineraries, look no further than the recent (May 26th) issue of Travelier magazine which has a spread, “Street Art Crawl: Canadas Best Murals and Graffiti.” The piece discusses how “walking around in a city allows for a slow study of the streetscape, the best way to discover the expanding galleries of street art found in Vancouver, Edmonton, Winnipeg, Toronto and Montreal.”
Courtesy Destination Toronto: Philip Cote is an Indigenous artist from Moose Deer Point First Nation, Ontario, exploring storytelling traditions through murals. This one is at Thirtieth Street and Lake Shore Boulevard West, Toronto. Click here to read the complete article.
⦁ A Mexican Bar Travels the Hudson River: Just opened off in New City is La Barca Cantina, which offers Mexican fare and cocktails afloat. Patrons can hop on board the three-story boat at Pier 81 on the Hudson River and sail around the city for skyline and sunset views with New York Cruise Lines. The boat offers custom artwork by Tlisza Jaurique, the first Mexican-American woman to exhibit at the Metropolitan Museum of Art, and a top deck for guests to take in the scenery, and an expansive agave-based spirits menu. Craig Kanarick, CEO of New York Cruise Lines, told the insiders travel guide, SecretNY, “it’s a thrill to cast a spotlight on a beverage category that is just as diverse and terroir-driven, yet not as well-known, as wine. We are so excited to bring this culture to life this summer on the Hudson River.” For more info, visit https://labarcacantina.com/
CHINA NOTES
⦁ Really? China wants to build high-speed train from China to the United States. According to an item by Jack Dunhill in IFLScience.com, which serves the science community, the basic facts are these: China wants to build a high-speed 13,000-kilometer (8,078-mile) train that goes from mainland China, through Siberia in Eastern Russia, under the ocean through the Bering Strait into Alaska, across the mountains of the Canadian Yukon and British Columbia, and into the U.S. Estimated Cost? $200 billion.
The article continued: “The plans emerged in 2014, when multiple news outlets covered a report by the Beijing Times that outlined plans for China to build the 8,000-mile super train. It would be called the ‘China-Russia-Canada-America’ line (catchy, we know) and stretch across all four nations, connecting them together for a trade, tourism, and economic boom. Stretching across the Bering Strait, it would require an underwater tunnel four times larger than the Channel Tunnel, and far more high-tech to boot.” Click here to read the complete article.
⦁ In China, sex isn’t selling like it used to: “Unfortunately, the distinction between femininity and sexualization is still a grey area for many luxury brands. But changing attitudes about sexuality and gender will determine which brands resonate with society’s values in the future,” Jing Daily recently reported, noting that an Ipsos Chinese survey revealed that “happiness, dignity, confidence, and kindness were the most important attributes in making a woman beautiful, and only 55 percent of respondents considered sexiness important.” For the full article, read here.
⦁ Do you speak Chinese? Something to think about if you’re marketing to China: “I’ve been teaching English for academic purposes at an international school in East China for the past four years. In that time, my school’s enrollment figures have soared, in no small part thanks to its increased emphasis on English-language learning and teaching. Today, it’s expected for even local teachers to exclusively speak English in the classroom, regardless of their accent or ability to express themselves. But is anybody actually benefitting from this embrace of English-language learning?” Read complete article here, courtesy of the Sixth Tone.
⦁ U.S. Organization Cites Unease over Business Conditions in China: The American Chamber of Commerce in China said in its recent annual report on business conditions, points to “growing unease among American and other foreign companies about the impact of economic and strategic tensions between Beijing and their home countries. Brands including Swedish retailer H&M, Adidas and Nike have been targeted by demands online for consumer boycotts. That came after state media criticized them for expressing concern about reports of possible forced labor by ethnic minorities in the Xinjiang region of China’s northwest.” The American Chamber said 78 percent of companies that responded to its survey cited “rising tensions” between Beijing and Washington as their top concern. (From the Arab News on the United States’ Memorial Day. Read here for the complete article.)
HODGE PODGE: Appointments, Changes & Openings
Reinhard Kotzaurek is the new managing director of Reisecenter Alltours as Alltours, one of the largest tour operators in German, wants to further expand the travel center chain belonging to the group Kotzaurek, who will take over the management of Reisecenter Alltours GmbH from August 15th. He will report directly to Alltours partner Willi Verhuven. Kotzaurek has been active in tourism for 25 years and has held management positions for more than 15 years. Previously, he was CEO at Thomas Cook Austria and implemented a direct sales model for TUI Austria in Austria. Kotzaurek succeeds Nils Jenssen, who will leave the company at the end of the year at his own request and for private reasons.
Meredith Rothstein-Rinn has been director of facility sales at the famous Apollo Theater in New York. This includes the Apollo and the newly constructed Victoria Theater which houses a 99 seat and a 199-seat theater, cafe and gallery in the lobby which is set to open later this year.
Annick Guérard has been appointed as president and chief executive officer of Transat. Guérard has been Transat’s chief operating officer since November 2017 and will be the only woman in charge of a national airline in Canada. She succeeds legendary Canadian businessman Jean-Marc Eustache, who is stepping down from his role at Transat. Eustache has been one of the principal architects of the creation of Transat in 1987. Guérard is a veteran of nearly 20 years with the company, having started with the company in 2002 as senior director, strategy/customer service.
Expedia Group has announced the appointment of Rathi Murthy as the company’s Chief Technology Officer and President of Expedia Services and Jon Gieselman as the company’s President of Expedia Brands. As part of Murthy and Gieselman joining, the company will evolve its operating structure into four key pillars: Expedia Services, Expedia Brands, Expedia Marketplace, and Expedia for Business. Murthy joins Expedia Group from Verizon Media and is a widely recognized transformative technology executive with deep experience and knowledge in platform environments at Fortune 500 e-commerce, financial services, telecommunications, and media companies Gieselman joins Expedia Group from Apple, where he led marketing for Services, a broad portfolio of businesses. While at Apple, Jon worked closely with product, engineering, and design to expand Services through his innovative brand, digital, and direct marketing approach
Jessica Roberts is the new president of the Blue Ridge Parkway Association, the promotional organization for the 469-mile scenic roadways that stretches from Afton, Virginia in the north to Cherokee, North Carolina in the south. Roberts already serves as executive director of the Mount Airy Tourism Development Authority and the Tourism Partnership of Surry County. Mount Airy, NC is the “real” version of Mayberry, NC, the fictional community in the popular Andy Griffith show. The late Andy Griffith is from Mount Airy and is still warmly regarded there, where visitors will find a museum and theatre group that bear his name.
After serving nearly 22 years as president and CEO of Visit Fairbanks, Deb Hickok stepped down last month, and now serves as “Chief Germinator” of stratXcel, a consulting business which assists communities, destinations and businesses in planned growth through the melding of strategy and excellence.
Following some changes at the Aspen Chamber Resort Association (ACRA), Sarah Reynolds Lasser, senior director of business development, will expand her focus to the broader business community overseeing membership initiatives and group sales. Lasser has worked at ACRA for 10 years, selling Aspen as a meeting and event destination. In 2020, she was recognized by Smart Meetings as a “Smart Women in Meetings Stellar Performer” and received special recognition on behalf of ACRA as the Destination Colorado Member of the Year.
Fabiano Oliveira has been named the new commercial director of the startup Grupo Itapemirim’s ITA or Itapemirim (ITA) airline. He replaces who spent six months on the job for the startup air carrier. The company’s first flight is scheduled for June 29th between São Paulo-Guarulhos and Brasília, suggesting that the airline could feed domestic product to the long-haul international carriers who operate out of São Paulo.
Job Postings
From SearchWide Global:
—Visit Pittsburg has an opening for chief sales officer. More details here.
—Visit Carlsbad is searching for a president and CEO. More details here.
—Switch, An Experience Agency based in St. Louis whose product lines include digital marketing, business meetings and events, and trade shows, is looking for a president and CEO. More details here.
—There is an opening for a chief executive officer at Explore Skagit Valley in Washington State. More details here.
—Louisville Tourism is looking for a senior vice president of convention development. More details here.
—Travel Portland is searching for a vice president of diversity, equity and inclusion. More details here.
—The Pacific Hospitality Group has an opening for an area director of marketing. More details here.
—Visit Wichita is searching for a vice president of marketing. More details here.
—Visit Wichita has an opening for a vice president of sales. More details here.
—Destinations International is searching for a senior director, membership engagement. More details here.
—The tourism research and intelligence company Arrivalist has an opening for a chief sales officer. More details here.
—The Greater Miami Convention & Visitors Bureau is searching for a new president and CEO. More details here.
—Headquartered in Irving, Texas, the Promotional Products Association International, is searching for a president & chief executive officer. More details here.
—The Valdosta-Lowndes County Conference Center & Tourism Authority in Georgia is looking for a new executive director. More details here.
—Visit Florida is searching for a vice president of marketing. For more information, visit here.
—In the Charlotte/Concord area of North Carolina, Great Wolf Resorts has an opening for a director of sales and catering. For details, click here
—Georgia’s Valdosta-Lowndes County Conference Center & Tourism Authority is searching for a conference sales director. More details here.
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From Indeed.com: We’ve taken a look at this site (click here) which says that it has hundreds of new jobs listed, including a fair number in the travel, tourism and related industries. A sampler of what to expect is below.
—Sesame Place, located in Langhorne, PA, not far from Philadelphia, has an opening for a public relations manager. More details here.
—The Las Vegas Convention and Visitors Authority is looking for a vice president of guest experience. The salary range is $130,000 – $157,000 a year: More details here.
—Hill + Knowlton Strategies is seeking a talented vice president or senior vice president to lead key consumer client engagements with a focus on travel and tourism. More details here.
—The American Queen Steamboat Company has a temporary, remote location opening for a shore excursions logistics manager. Location cited is in Easton, Pennsylvania. More details here.
—The Academy of Motion Picture Arts and Sciences museum in Los Angeles is searching for a group sales manager. More details here.
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From LinkedIn Jobs: Known to many across the board in the travel and tourism industry, the LinkedIn list (click here) has numerous job opportunities posted. Following is a brief sample of some of those jobs currently listed.
—NYC & Company has an opening for a marketing coordinator. More details here.
—REI has an opening for an adventure travel program coordinator. More details here.
—Interdependence Public Relations in Denver is searching for a Managing Director to launch and build a travel, leisure and hospitality division at its rapidly growing PR firm. More details here.
—Ralph Lauren is search for a coordinator, brand activation (regional tourism – West). More details here.
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Have a job to offer in the travel and tourism industry? Let us know and we’ll post your notice—no cost to you. Email tom@tomberrigan.com.
