Trends & Research

UK Vacation Prices Could Increase 15 to 20 Percent in 2017

December 21, 2016 by Tom Berrigan

Although figures and/or projections from the U.S. National Travel and Tourism Office and the UK’s Office for National Statistics show healthy increases in travel to the USA and for all outbound travel by Britons, a new report on key UK travel companies suggests that holidaymakers in the UK can expect price increases in the range of 15 to 20 percent this year.

Travelzoo said that almost a fifth of the 15 travel firms it had just surveyed believed the increase in holiday prices “could be as high as 15-20 percent” in the coming year. In addition, the company reported, 80 percent of the UK travel businesses questioned, said they were “bracing themselves” for price hikes in 2017.

Cited as reasons for the dim outlook were: the decline in the value of the British pound sterling vs. the U.S. dollar; continued uncertainty surrounding Brexit; the rising price of oil; and ongoing geopolitical fallout. Anyone of these factors, Travelzoo suggested, may create a rise in holiday prices during 2017.

Travelzoo’s UK managing director, Joel Brandon-Bravo, said: “The impact of sterling’s fall in particular has not really been felt in holiday pricing to date, however all the signs are pointing in the direction of price hikes for many popular holiday destinations in 2017.”

Indeed, the pound is at its lowest level against the U.S. dollar in more than 20 years—lower than it fell in the immediate aftermath of the Sept. 11, 2001 terrorist attacks in the U.S. or in the trough of the 2008-2009 economic recession.

Source: Macrotrends.net

During the past six months, data show that the pound fell from a high of $1.49 on June 23, 2016—the date of the UK vote to withdraw from the European Union (the “Brexit” vote)—to a recent low of $1.22 on Oct. 27, 2016.

“Until now British travel companies have been absorbing some price increases on costs such as hotel rates set in euros and many have been selling holidays at prices set before the June referendum,” explained Brandon-Bravo, adding, “Businesses cannot do this indefinitely however and we expect pricing for next year’s holidays to increase by at least 10 percent. For almost one fifth (17 percent) of those we spoke to the increase could be as high as 15-20 percent.”

And the news in the past week has provided few developments that would cause Travelzoo to change its mind; for instance, a decision by the U.S. Federal Reserve Bank to increase interest rates is seen as a move that will make the dollar stronger against all currencies, while decisions by OPEC and non-OPEC oil-producing nations to reduce output will only increase pressure on price points of products, including travel, that ae dependent on oil-based energy.

USA-to-Canada Traffic Soars to Best Level in a Decade

December 14, 2016 by Tom Berrigan

While inbound traffic to the USA from Canada is projected by the U.S. National Travel and Tourism Office (NTTO) by eight percent—it is down by 16 percent for the first four months of 2016—inbound traffic from the United States to Canada is up by nearly 10 percent, year-on-year, through September and air arrivals from the U.S. for the same period are up by more than 17 percent for the same period, according to figures released by Destination Canada (DC). The outlook is positive enough that the organization might achieve its goal of having 20 million international visitors a year by 2020 as early as this year.

About 1.4 million overnight visitors to Canada arrived from the US in September 2016, up 11.5 percent over September 2015, bringing total US arrivals in the first three quarters of 2016 up to 11.2 million (+9.7 percent over the same period of 2015). This was the best September for US arrivals since 2005, and the best January-September performance since 2006.

Overall, arrivals from all international markets, including Destination Canada’s 11 targeted international markets (USA, France, Germany, UK, Australia, China, India, Japan, South Korea, Brazil and Mexico), except for Brazil, are registering health increases in travel volume to Canada. From January to September 2016, Canada welcomed 16.1 million overnight visitors, including 14.3 million from the with several of these markets posting exceptional performances over the first three quarters of 2016, most notably South Korea (+32.8 percent, China (+23.7 percent), Mexico (+18.6 percent), the UK (+15.7 percent) and Australia (+13.6 percent).

Outbound Travel: The data furnished from Statistics Canada may be scored slightly differently than that furnished by NTTO, but those data we do have confirm—from both markets—that Canadian traffic to the U.S. is off by a significant amount in 2016. NTTO’s forecast has Canadian arrivals down 8 percent for the year, while Statistics Canada has the number at -8.9 percent through September.

Note: The figures are preliminary estimates and are subject to change.

Source: Statistics Canada, International Travel Survey

What Does it Mean, and for Which Market? Those for whom national accounts are important have much statistical fodder to rummage through with the latest report from Destination Canada. But for much of the world, the USA and Canada comprise one North American market. And given the symbiotic relationship of the travel and tourism industry in the two countries, where there is cross ownership of tourism-related businesses as well as cross border itineraries, the disparity is less important. However, U.S. businesses clustered near key points along the U.S.-Canada border, or within day-trip range of Canadian travelers, have suffered substantially by the drop in visitors—especially among those who engage in shopping excursions—from Canada, due primarily to the weakened Canadian dollar (loon) vs. the U.S. dollar.

The loonie, which traded at about $1.03 in 2012, sunk to less than $0.70 near the end of 2015 and is still trading about $0.75. (See chart below)

Canadian Dollar vs. U.S. Dollar

Source: Xe.com

Proof! Travel is the Secret to True Happiness. The Toy Department of Life

December 14, 2016 by Tom Berrigan

Or, Possibly the Most Uplifting Survey Results ever to Come from a Study on Holidays and their Relationship to Happiness: New global research commissioned by Booking.com has revealed that travel gives us such an emotional boost, we consider planning and going away on holiday more vital for our happiness than other big life occasions—such as our own wedding day (49 percent), going on a date with your partner (51 percent), landing a new job (50 percent), getting engaged (45 percent), and even having a baby (29 percent). Furthermore, 77 percent say they book a holiday just when they’re in need of a happiness boost.

The research, which questioned 17,000 people from 17 countries, produced revelations such as the following:

—For the majority (70 percent), travel experiences bring more lasting happiness than material things.

—This explains why most people (56 percent) prioritize holidays over possessions such as clothes, jewelry and gadgets.

—Almost half (48 percent) rank travel over home improvements.

The emotional lift that travel brings hits at each stage of the travel process from planning, through booking to actually going on holiday. And it’s the planning stages that give the most immediate boosts in happiness:

—Nearly three quarters of people (72 percent) saying they get a kick of excitement just from researching where to go on holiday.

—Over half (56 percent) agree they then feel happiest when booking their holiday, underlining the importance of instant booking when it comes to securing an ideal stay.

—Almost half (49 people) of people say a holiday brings them more happiness than their wedding day.

—Over half (51 percent) prefer travelling over going on a date with their partner

—More than three quarters of people (77 percent) book a holiday to cheer themselves up when they’re in need of a happiness boost.

—Seven out of ten (70 percent) then have the best time on holiday when they can make themselves at home in their accommodation.

—Over two thirds of us find happiness staying in a hotel, hostel or villa (67 percent).

—Another third feel happiest staying in an apartment or home with local residents (33 percent).

Planning and Booking = Happiness during the Holiday: Author Shawn Achor, BA, MA, Harvard, and a leading expert on happiness, said that the data from this new study highlight how “there is a very significant correlation between enjoying the booking experience, and happiness during the actual trip – meaning that one of the best predictors of a happy vacation is to have an enjoyable booking process. Travel planned well and instantly booked with ease can dramatically improve your happiness, no matter what type of stay and trip you seek. This links to my previous researched published in Harvard Business Review indicating that, unlike the average vacation, well-planned, low stress vacations have a 94 percent chance of returning you to work with greater levels of energy, engagement and happiness.”

Anchor added, “In fact, we are so addicted to planning and booking our trips, that over a third admit to researching holidays months in advance (35 percent)–with an eager 5 percent planning over a year in advance.”

This is then followed, he said, by the anticipation of what’s to come:

—Between booking and actually travelling, over a third admit to chasing a happiness boost by thinking about their holiday one or more times a day (39 percent).

—In preparation, eight out of ten (80 percent) find happiness in looking at a map and researching places to visit, and over half (52 percent) like planning and shopping for their holiday wardrobe.

—Almost eight out of 10 people (79 percent) say scrolling through pictures of destinations and beautiful accommodations help them to feel happy in the run up to their holiday

—Another six out of ten (61 percent) enjoy continuing to read reviews of the accommodation they’ve just booked.

Yet, all the anticipation in the world can’t replace the happiness of actually being on holiday:

—Six out of ten (62 percent) feel a surge of happiness when they set their out of office and leave work.

—Almost nine out of ten (87 percent) say it’s the first day of a holiday and seeing their accommodation for the first time (83 percent) that are the happiest holiday moments.

—From then on, 70 percent say they have the best time on holiday when they can make themselves at home wherever they stay.

—Over two thirds find happiness when staying in a hotel, hostel or villa (67 percent), and another third feel happiest staying in an apartment or home with local residents (33 percent).

Concluded Achor: “Study after study has indicated that there is a huge boost to happiness in the “anticipatory phase” which occurs while planning and visualizing a trip. This new research shows how significant this boost really is–on par or better than getting engaged … Based on a decade of research, the greatest competitive advantage in the modern world is a positive and engaged brain. In fact, I recently found that people who take all of their vacation days are not only happier, they are 34 percent more likely to receive a bonus over the next three years. Happy travel pays.”

A Note on Methodology: Research commissioned by Booking.com and independently conducted among a nationally representative sample of 1,000 people from each of the 17 markets who had taken at least 1 domestic or international holiday in the past year. In total, 17,157 respondents (18yrs +) were surveyed from the UK, Germany, France, Netherlands, Italy, Spain, Croatia, Russia, USA, Canada, Brazil, China, Japan, India, Thailand, Australia and New Zealand. Data was collected from 9 September to 4 October 2016.

How to React to People at Trade Shows Trying to Sell you Ads?

December 14, 2016 by Tom Berrigan

Ugh. There is likely not a sales person for a U.S. supplier in the tour and travel industry nor a DMO who hasn’t dealt with the situation. It could be at IPW, it could be at World Travel Market, it could be at ITB or at any one of a number of international trade show at which it happens.

“It” is having a journalist, a publisher, a tour operator or, more likely, someone who has dual roles for an operator or a publication—online or otherwise—and has more than one business card (one for each role in which he or she is involved) showing up at your booth and, after an exchange of pleasantries and business cards, presenting you with a copy of the company’s latest brochure or magazine with a not-so-cleverly burnished request that you buy a page, or an ad, in the brochure or magazine.

“Wait a minute!” you think to yourself. “This is wrong. I am supposed to be selling them. What is wrong with this situation?”

Just What Do you do? The Answer: We’ll get to the answer following some background information and some preparatory techniques that follow. (Note: your PR person is probably familiar with the following, but the readers targeted here are the travel industry sales professionals who find themselves at a trade show without PR help.)

It’s a Different Playing Field, with Different Tactics: As explained in a presentation at NAJ’s recent RTO Summit in Orlando, Florida by Susan Wilson, president of Phoenix-based Susan Wilson Marketing and a public relations and promotions maven whose accomplishments are many, sales professionals who find themselves in such a predicament should look at the situation and consider it an opportunity, not as an annoying challenge.

Pinch-hitting for the PR professional who isn’t at the show makes you a more valuable asset, said Wilson, who went on to detail some of the basics of PR for sales professionals who are, of necessity, the PR person at the same time. Some of her do’s, don’ts, a bits of wisdom and best practices follow.

—Understand right from the start that there are new media channels of distribution.

—Not only are there new media, but they operate from different locations. They now work at a table in a Starbucks, on the side of the road or during their travel or commute to a shared office.

—With the new media, the nature of the messenger has changed: news distribution is now more streamlined, vertical and personal; trade shows have built-in news sharing platforms; and news is not always disseminated by a publication relations professional—in fact, sometimes it’s you.

— First off, review the dynamics of the upcoming show with your PR person or department beforehand. What do you know about the journalists who are coming to show vs. what you know about the operators. Do you want to make appointments with them? If so, let them know your booth number, as well as what to look for and where on the trade show floor.

—Remember that news outreach tools have changed. Use them. For instance, at IPW, TravMedia is the platform for distributing and reviewing the latest news releases and announcements; the service can deliver yours by region, if you want that done. If you can afford it, your company can hire a PR representative or firm to work the show for you. And don’t forget, if you are an attraction or hotel, those “Big Sister” DMOs who will promote your product.

—Here’s a sample of how one might prepare for an upcoming show by seeking to secure an appointment with a buyer:

—You’ll have to deal with bloggers. Twenty years ago, they didn’t exist. Now they’re major media messengers. Ask them their plans for the show. Do they include a feature on, or a visit to your destination? If you’re already working with the blogger or vlogger (video blogger), what will they accept–hosting, financial support? Talk about the matter of trust, especially with top influencers. Does the content they produce engender trust in the mind of the reader? Readers can detect “copy-and-paste” journalists who merely re-write press releases.

—What about the traditional travel editor? Twenty years ago, when print journalism still ruled, they were responsible for content. Not anymore, but rare as they are—especially outside of the USA—they still exist. If you are selling an attraction, a travel experience or a hotel, find out if your destination will be expected to help house and transport the journalist(s) or travel editors. What is the journalist looking for in meeting with you? Perhaps your destination has a standard media assistance form – Sonoma County Tourism in California has an excellent example of how partners can help in hosting, but be sure, as it might not be the rule in your destination that it should host a journalist you invited.

A final note on preparations: Whether it is via e-mail or in the form of hard copy, make sure your material is in Word format, not PDF. Word can be used right away. Converting material from a PDF takes longer.

The Dreaded Ask for Advertising Dollars—Yep, It is Going to Happen. You Need to Plan on it.

So, you’re talking business to a journalist, a publisher, an in-country rep, or an operator who just happens to mention the availability of space in a brochure, magazine, newsletter or some other medium. What do you do?

The answer, said Susan Wilson is “become more valuable to them than an ad buy.”

Ask them every key question about their product … other than what’s on a rate card. You want to know: the circulation breakdown; the demographics of the readership (are you looking to have them as travelers—for instance, not everyone is seeking backpackers); information on the reach of the publication; do readers or viewers expect your attraction, hotel or tour to speak their language; and has the person making the pitch ever visited you in the past.

Also, ask them if there are any additional “merchandising” benefits to buying ad space such as equivalent space devoted to editorial, an online promotion or sweepstakes they can throw in to maximize your investment. Where possible, ask them if there are ways to tie in tour operators as the call to action.

More often lately, due to tight budgets, you are approached by tour operators who have already included you in their programs and use the appointment as an opportunity to SELL you advertising.

In this situation you lack leverage as their implied approach is that you can be eliminated in favor of someone else. In that case you should try to extract information such as annual bookings/room nights. At least try to obtain circulation of brochures and website views and prepare for your management a “media equivalency” estimate based on a cost per thousand model.

Susan Wilson can help you by answering other questions you might have on this subject. You can reach her by contacting: susan.wilson@susanwilsonmarketing.com

For French, Germans & Brits, Most Important Reason for Choosing a Destination is …

December 7, 2016 by Tom Berrigan

Delegates to NAJ’s recent RTO Summit in Orlando received a school semester’s worth of information during the first day of the Summit, which was named International Digital Day because of the latter’s emphasis on program content designed to equip international sales professionals with more digital tools and techniques for selling their product.

Carol Johnson, TripAdvisor’s destination marketing manager, Latin America, head of destination marketing and Latin America discussed “Key Travel Trends from UK, Germany and France,” based on findings from the company’s 2016 Trip Barometer, a work that was conducted using 34,026 participants worldwide.

The five main overall findings from the Barometer were:

—The path to purchase journeys differ by demographic. Most travelers start by deciding on their destination. Research and booking take place rapidly once travelers have committed to a trop, but female travelers tend to spend longer researching before booking.

—Culture is the most important reason for selecting a destination. However, motivations for choosing destinations differ markedly among different groups.

—While TripAdvisor is predominantly used for researching accommodation and destination information, other information sources tend to be heavily used by travelers to research either accommodation or destination information.

—Needs-based typologies demonstrate a diverse set of traveler characteristics—understanding travelers’ emotions and hoe they influence travel patterns reveals a diverse set of behaviors.

—Different types of trips lead to a different emphasis on booking behavior. On shorter breaks, accommodation is more important and tends to be researched and booked first, but on longer trips, transport is prioritized.

Johnson led delegates through various country-specific charts, graphs and tables, which used Barometer findings and other source materials. A selection of some of the illustrated material follows:

Most trips are destination led.