Look for complete coverage of the 2015 ipw in Orlando next week’s issue of the Inbound Report.. For now, here is a day-by-day sampler of images we have assembled.
Covering the Inbound Tourism Industry Since 1996
by Tom Berrigan
by Tom Berrigan
Test your tour operator-IQ with this simple 10 question IPW-Orlando Pop Quiz. Print out and bring your answers to thetouroperator.com booth #855 at IPW. Those answering all questions correctly will receive a prize. Correct answers will be posted in the post-ipw issue.
1. Which collateral is best to leave behind for your appointments with tour operators at IPW?
2. What % of your ipw appointment time should ideally be spent “pitching” vs “listening”?
3. If you meet with an operator who has no interest in your product, what should you do?
4. How soon should you expect to see materialized from a tour operator that you are meeting for the first time?
5. If you are meeting with a tour operator interested in your MICE product or services, which of the following should NOT be included in your presentation
6. When meeting with someone already familiar with your product or destination, which of the following is most important to highlight?
7. As a supplier what are the range of discount rates acceptable to international tour operators?
8. You’re an hotelier and your appointment requests rates for 2015-16 season, which you do not yet have. How should you respond?
9. An operator tells you that Euro exchange rate is making your destination/product too expensive. Should you…
10. As an attraction, which of the following is least appropriate to mention during your appointments?
NOTE: Bring your answers to thetouroperator.com booth #855 at IPW. Those answering all questions correctly will receive a prize.\
by Tom Berrigan
EDITOR’S NOTE: Inbound readers are welcome to visit NAJ staff at www.THETOUROPERATOR.Com booth at IPW (Booth #855, next to Disney). Also, watch for THE TOUR OPERATOR, our annual state-of-the industry magazine, which will be distributed with Monday’s ipw Daily.
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Since the last time ipw was held in Orlando—five years ago in 2010—the number of tour operators from China at this year’s event, which launches on Saturday, May 30, will have increased 400 percent! This is what Malcolm Smith senior vice president of business development and general manager of ipw for the U.S. Travel Association, revealed when he discussed “What’s New for ipw in 2015” at NAJ’s recent RTO Summit East in New York. There were just over 20 operators from China five years ago and now, Smith said, 109 are expected to attend the trade show (May 30-June 3) in Orlando.
While China is on track to become the largest overseas source market for inbound tourism to the USA within the next several years, tour operators from the UK, he current top overseas market, seem to be ensuring that the British will strengthen its position as a leading market: In what Smith described as “an explosion out of the UK” since 2010, the number of British tour operators is expected to increase 40 percent—from 123 delegates five years ago to 172 this year. The No. 3 delegation in international buyers this year will come from Brazil, whose numbers will increase 30 percent—from 56 in 2010 to 73 this year.
The following two tables show the top ten buyer delegations to ipw in Orlando in 2010 and 2015.
Other numbers presented by Smith at the RTO Summit East seem to reflect the profile of an industry in recovery, as 2009 was a trough year following the global economic recession of 2008-09. Overall, it is reflected in the total number of international delegates–both buyers and journalists.
In addition to increases in the number of international buyers and journalists, the makeup of the event and its branding as changed as well, Smith noted, explaining that it is more about Brand USA and less about US Travel. As a result, it is identified as “ipw, powered by US Travel,” while Brand USA represents the U.S. as a destination.
Perhaps the key change to the show’s identification since 2010 has been the disposal of “International Pow Wow” as the name of the show, selecting instead the “ipw” brand just after the 2013 show took place. US Travel will soon announce host cities through the year 2024—a move that will help travel companies worldwide to build their own calendars around the event. At the moment, the host cities (following Orlando) will be:
-New Orleans, Louisiana – 2016 (last hosted in 2002)
-Washington, D.C. – 2017 (first-time host)
-Denver, Colorado – 2018 (last hosted in 1991)
-Anaheim, California – 2019 (last hosted in 2007)
-Las Vegas, Nevada – 2020 (last hosted in 2013)
by Tom Berrigan
As we lead up to the industry’s largest and most important trade event, INBOUND REPORT offers its take on this year’s trends.
At mid-May 2014, the euro was pegged at US $1.37. It then fell 23 percent (to US $1.06) as ITB took place in Berlin a little more than two months ago. By mid-May this year, it had floated upwards to $1.12—still down from its level of a year ago.
Click on this link for an up-to-date presentation of the euro’s trend line vs. the U.S. dollar over the past year: https://www.ecb.europa.eu/stats/exchange/eurofxref/html/eurofxref-graph-usd.en.html.
What, exactly, will the impact of a 10-to-20 percent year-over-year decline in the value of the euro vs. the dollar mean? Carol Rheem, vice president, research and analytics at Brand USA, told a March 12 meeting of the organization’s board of directors that, for every 10 percent decline in the value of a currency vs. the dollar, there is roughly a two percent decline in visitors, which suggests a two-to-four percent decline in visitor arrivals from markets in the Eurozone. “We do expect to see some impact on arrivals for the next year,” said Rheem, adding, “We are expecting lower arrivals.”
And during a panel discussion regarding the euro-dollar exchange rate and its impact on business at the recent NAJ RTO Summit in Manhattan, Uschi Brunner, director of groups and incentives for New World Travel and Janice Becker, managing director, Reis Tour & Travel-RTT Services–indicated that there was sense among receptive last year that Euro was and would soft against the dollar, and both companies began taking hedging actions.
For New World, which is a part of DerTour, the second largest travel company in Germany, it has meant diversifying into Scandinavia, Brazil, Australia … and “a little in the Middle East.” It has also meant, Brunner and Becker said, servicing smaller groups and relying more on CVBs to find new product. They are now asking hotel partners to maintain group rates at groups as low as five passengers.
DerTour, TUI and Kuoni-owned brands will not be impacted in summer 2015 for escorted or FIT as their ability to hedge may result in having the lower prices than those of OTA’s or smaller operators who did not hedge.
Orlando is already the number one destination for British travelers to the USA many of whom traditionally stay two weeks or longer . The number of tour operators coming to ipw is at an all time high (170 vs. 123 five years ago). Also, a group of travel agents is taking part in the second Mega Fam trip that covers destinations in 22 states.
EDITOR’S NOTE: Inbound readers are welcome to visit NAJ staff at www.THETOUROPERATOR.Com booth at IPW (booth 855, next to Disney). Also, watch for THE TOUR OPERATOR, our annual state-of-the industry magazine, which will be distributed with Monday’s ipw Daily.
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