The Inbound Report

Covering the Inbound Tourism Industry Since 1996

Complete Issue April 30, 2015

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INBOUND INTERVIEW: Myth vs. Reality in Selling to India

Sheema VohraKey Takeaways:  Following a discussion with Sheema Vohra†, who heads up New Delhia-based Sartha Global Marketing and represents various U.S. DMOs in India, INBOUND came away with several key takeaways: She wants those of us in the U.S. to work with the travel trade in India, have a good PR program in place, and educate the travel trade in our own destination. She made that clear several times during our talk. It is also seemed pretty clear, as we spoke, that the world’s second largest nation, India (1.27 billion) has a travel distribution system that is still maturing. It’s somewhat disorganized, very relationship-based and one’s success depends on how works with a handful of components. And things that have generally been regarded as challenges—lengthy wait periods for those applying for visas to travel to the USA, limited lift capacity, a demand/need for vegetarian cuisine for its travelers—have been or are being addressed as the profile of the traveler from India is changing to that of one who is younger, more independent and desires new travel experiences.

 

Why Are There so Few U.S. Receptives Who Sell India? “I don’t know,” confessed Vohra, who speculated that it is probably that the trade is in India not as mature and organized as it is other key markets. (The Indian Association of Tour Operators, for instance, is only 33 years old and has over 1,500 members, but international members are only a small component of the membership, which also includes domestic tour operators and allied members.) She also declined to comment on the matter, frustrating to the U.S. suppliers who have told INBOUND about it, of last-minute cancellations by operators; for example, an operator will put together a package tour, then cancel at the last minute due to customers who reportedly were unable to get a visa in time or because of some other matter.

Travel agents play a large role. DMOs should understand that, said Vohra. And, a point that she  emphasized,  working with the travel trade it is a relationship based enterprise. As such, one can work with just a handful of operators to start cultivating the market.

 

What about the Absence of Any Real Direct Lift between India and the USA? There are five regularly scheduled non-stop flights between the U.S. and India, operated by Air India and United. (Small, wonder. A non-stop flight is at least 17½ hours long.) How does this impact the chances for growth of the market to the USA, we wondered. Vohra quickly pointed out that Qatar Airways, Emirates and Eitihad all depart from India and have connecting service to U.S. Also, U.S. bound passengers connecting through Abu Dhabi Airport—it is the hub for Eitihad, the dominant Middle East carrier serving India—are allowed to undertake all immigration and customs inspections prior to departure. As well, Vohra pointed out, Eastbound traffic from India is served by carriers operating or connecting out of Hong Kong, Singapore, Thailand and other Asian hubs. So, lift capacity is not an issue.

 

Doesn’t the Need to Have Vegetarian Meals for Indian Travelers Discourage Potential Suppliers? This might have been a greater issue a decade ago, Vohra said, but she indicated that the reality has changed—changed to the point that “there is no place in the U.S. that you don’t have Indian food … even in small places.” Also, she noted, while there is still a segment of Indian travelers that counts on having vegetarian meals where they visit, newer travelers who are very educated and very informed, are more interested in experiencing new cuisine, American cuisine, when they visit the U.S. Asked to estimate what proportion of the travel market is vegetarian and what is not, she put it at “about 50-50.”

 

What about Those Long Waits to Interview for a Visa … and to Have it Processed? That has changed—Vohra was emphatic about this—as in the past several years, the U.S. has increased the number of locations at which visa interviews take place from a couple to five (at the U.S. embassy in New Delhi, as well as at consulates in Mumbai, Chennai, Hyderbad and Kolkata), and has reduced wait times from months to a several days. Also, she noted, Indians have 10-year visas, allowing them to forego return visits for interviews when one wants to take another trip with a year, as is the case for some countries.

 

Arrivals to USA from India 

2013-2019

(000s)

YearArrivals/Change
2013859,000
2014962,000
20151,011,000*
20191,265,000*
Total Change406,000
Total Change (%)47%
CAGR6.70%

* Forecast

Source: U.S. Department of Commerce, International Trade Administration, National Travel and Tourism Office (NTTO)

 

Changing Markets—The MICE and Student Factors: Vohra sees the student market growth as a major factor in the overall outlook for increased travel to the U.S.  (India, with more than 100,000 students in the U.S., is No. 2, behind only China in this tally.). Not only do students take group trips from India to the U.S. They take trips as groups while in the U.S.—during holiday periods and during school breaks. And they often have parents visit them to join them on such travels. Vohra has a personal reference here—her own parents visited her when she was studying at the University of Nevada Las Vegas.

Vohra sees the MICE market growing at a dramatic rate—for several reasons. Among them is the increase in the number of multinational corporations with offices in multiple countries, with many of those having a U.S. base or headquarters. They rotate conferences at various locations, assuring travel to the U.S. for some of these conferences. This brings a new kind of MICE traveler to the USA. Plus, she noted, the U.S. has so many destinations that “have everything a MICE market desires—locations, venues for special events, entertainment …”

 

And We Speak the Same Language: While the market from India may seem distant for some U.S. DMOs and suppliers, the U.S. traveler marketer has a distinct advantage; that is, India is the second largest English speaking market in the world, behind only the U.S. with more than 125 million people who speak the language. And almost all of the travel-ready population is familiar with U.S. popular culture, idiomatic expressions and slang. This means, Vohra explained, that US. Suppliers don have to recast their advertising, their collateral or their websites in catering to potential travelers from India.

 

Finally … Where It’s Going on: While numbers from the U.S. National Travel and Tourism Office tell us where travelers from India have gone and why, Vohra—in response to our asking—told us where she thought the outlook is good for the near future:  California, New York (the city and state), Las Vegas, Orlando, Miami, Philadelphia, Boston, New Orleans, Nevada, New Mexico and Texas, to mention a few. She stressed again, as she did on several occasions during our talk, that the key for U.S. DMOs and suppliers is to … work with the travel trade in India, have a good PR program in place, and educate the travel trade in our own destination

###

†Sheema Vohra, who heads Sartha Global Marketing is based in India, but she has strong ties to the U.S. After her schooling in India, she came to the U.S. to study hotel administration at the University of Nevada Las Vegas. She subsequently served as sales manager, international travel, and director India & subcontinent international sales for Marriott International.  Her firm, Sartha, is only eight years old, but it represents some of the key players in the U.S. inbound tourism industry: Brand USA, Visit California, San Francisco Travel, the Las Vegas CVA and the Philadelphia CVB.

What’s the Most Popular Language for German Language Tours?

German Students in USAAccording to the latest annual market survey by the Association of German Language Holiday Tour Operators (Fachverband Deutscher Sprachreise-Veranstalter, or FDSV), English language tours are predominant among vacationers from Germany who take language tours. And among those who take English-speaking tours, the German travel trade publication, the UK is the favored destination. The latter probably has more to do with the proximity of the UK to Germany. The  distance from London to Cologne, for example, is 367 miles—this less than the distance from Memphis to Knoxville, Tennessee (391 miles).

Almost two-thirds (64 percent) of Germans speak English. That’s 52 million people out of a population of 82 million. This makes Germany the sixth largest English-speaking country in the world, after the USA, India, Pakistan, Nigeria, the UK and the Philippines.† Some numbers from the FDSV survey report:

About 160,000 Germans went on a language holiday in 2014—a drop-off of 1.4 percent drop from 2013,

  • The average length of a language holiday was 2.1 weeks
  • The average cost of a 2014 language holiday was €1,308 ($1,422), an increase of 8.5 percent over 2013.
  • Almost three out of five (not quite 59 percent) of these trips were made by young people of school age.
  • 42 percent of such tours were made by teenagers (14-17), who comprise the largest market segment
  • 17 percent of all trips were made by children aged 6-13.
  • Despite the strength of the student and youth market, there was an increase in the number of adults going on language trips. Their share of the market increased by nearly 10 percentage points to a little more than 41 percent in 2014.
  • About half of the adults were young adults (18-30), who represented 22.5 percent of all trips,
  • The over 50 segment represented 6 percent of language holidays.
  • English is the favored language, accounting for nearly 84 percent of all booked language holidays.
  • About 90 percent of schoolchildren and 70 percent of adults went on an English language trip.
  • The UK was the destination for every second-language holiday trip (53 percent) well ahead of Malta (14.6 percent). Other popular language holiday destinations were the USA, France, Spain, Ireland, Canada and Italy.
  • There are about 140 companies and organizations in Germany offering language holidays, FDSV said, including some 70 professional tour operators.

For more reports and other information from Fachverband Deutscher Sprachreise-Veranstalter, visit: www.fdsv.de.

† http://en.wikipedia.org/wiki/List_of_countries_by_English-speaking_population

CVC Wants Brazilians to Learn English

Guilherme PaulusThe once overheated Brazilian outbound market now a stagnant force, the country’s largest tour operator-travel agency, is backing efforts to expand and strengthen foreign language exchange programs so that Brazil’s outbound tourism business—especially that which visits the USA—does not contract. According to a recent Bloomberg News item, CVC’s founder and chairman, billionaire Guilherme Paulus Jesus, the current weakness in the nation’s economy is curtailing the ability to travel of Brazil’s middle  class, which represents more than half of the nation’s population, as well as half of CVC’s clientele. Especially threatened is the company’s business to destinations such as Florida and Orlando.

Paulus is counting on his company’s consumer base to increase the numbers of student age adults  who are English-speaking, explaining that “Brazilians will sacrifice everything to send their children to learn English abroad … It’s an investment.”

CVC served about 4 million travelers last year, with its outbound clients favoring the USA, Canada and the UK. In addition to a national economy that some economists have predicted will actually contract this year, Brazil’s currency, the real, has dropped 15 percent versus the U.S. dollar in the past year. According to CVC, the stronger dollar has made more Brazilians take their holidays within Brazil. Domestic trips, it said, grew in January to 70 percent of total holidays vs.60 percent a year ago.

In addition to its support of increased exchange student travel—the company disclosed no figures regarding the amount it is investing in this venture—CVC plans to open a 100 new stores a year; the total should exceed 1,000 this year. In early 2014, the company had 800-plus agency locations. CVC’s owner/largest shareholder is the Washington, D.C.-based global asset manager firm, the Carlyle Group, which was ranked last year in the Private Equity International 300 as the largest private equity firm in the world.

Hershey Launches New Gifting Product for the Sweetest Travel Market on Earth

Widely known as a conservative organization that markets its candy and confectionary product line in a deliberate, no-Hershey Kisses Deluxesurprises approach, Hershey has announced a special derivation of its signature Hershey Kisses Chocolates  product—Hershey Kisses Deluxe—in a gift pack that will debut next month at the TFWA 20th Annual Duty Free & Travel Retail Asia Pacific Summit May 10-14 in Singapore. (TWFA is the world’s biggest duty free and travel retail association.)

The move follows a finding from research commissioned by Hershey World Travel Retail that 65 percent of purchases by Asian category buyers are for gift-giving purposes.

Hershey’s Kisses Deluxe Chocolates are billed as “sophisticated, premium chocolate treats” and twice the size of original Hershey’s Kisses Chocolates. The confections feature “a whole roasted hazelnut center, layered with delicate crisps and smooth chocolate, and enrobed in creamy milk chocolate.” The new product will be available in a 15-count stand-up bag (for those interesting in eating the treats themselves) or a 35-count acrylic box which designed as gift to bring back home for family and friends. Customer shipments will begin this coming August.

Additionally, The Hershey Company will be featuring two new travel-retail-exclusive America-themed tins at the Singapore show: The Stars & Stripes version contains Hershey’s Kisses Chocolates and the Sunrise in America version features Reese’s Peanut Butter Cup Miniatures. Customer shipments begin next month.

In addition to gifting insights, results from the  global confectionery study conducted by Counter Retail Intelligence in 2014 with Asian buyers, reveal that buying for snacking for one’s own consumption remain a focus as they represent more than 30 percent of all purchases.

The Perfect American Road Trip—Produced by an Algorithm and Michigan State

Road Trip MapThe Discovery Channel’s  Discovery News unit recently partnered with Randy Olson, a doctoral candidate at Michigan State University and, through a sophisticated algorithm, came up with the perfect American road trip. It allows travelers to visit all 48 continental USA states and 50 famous destination/attractions in an unbroken route—there are two small backtracks involved—that enables the motorist to enter the itinerary at any of the 50 stops. The fifty landmarks in the itinerary are as follows.

  1. Grand Canyon, AZ
  2. Bryce Canyon National Park, UT
  3. Craters of the Moon National Monument, ID
  4. Yellowstone National Park, WY
  5. Pikes Peak, CO
  6. Carlsbad Caverns National Park, NM
  7. The Alamo, TX
  8. The Platt Historic District, OK
  9. Toltec Mounds, AR
  10. Elvis Presley’s Graceland, TN
  11. Vicksburg National Military Park, MS
  12. French Quarter, New Orleans, LA
  13. USS Alabama, AL
  14. Cape Canaveral Air Force Station, FL
  15. Okefenokee Swamp Park, GA
  16. Fort Sumter National Monument, SC
  17. Lost World Caverns, WV
  18. Wright Brothers National Memorial Visitor Center, NC
  19. Mount Vernon, VA
  20. White House, Washington, DC
  21. Colonial Annapolis Historic District, MD
  22. New Castle Historic District, Delaware
  23. Cape May Historic District, NJ
  24. Liberty Bell, PA
  25. Statue of Liberty, NY
  26. The Mark Twain House & Museum, CT
  27. The Breakers, RI
  28. USS Constitution, MA
  29. Acadia National Park, ME
  30. Mount Washington Hotel, NH
  31. Shelburne Farms, VT
  32. Fox Theater, Detroit, MI
  33. Spring Grove Cemetery, OH
  34. Mammoth Cave National Park, KY
  35. West Baden Springs Hotel, IN
  36. Abraham Lincoln’s Home, IL
  37. Gateway Arch, MO
  38. C. W. Parker Carousel Museum, KS
  39. Terrace Hill Governor’s Mansion, IA
  40. Taliesin, WI
  41. Fort Snelling, MN
  42. Ashfall Fossil Bed, NE
  43. Mount Rushmore, SD
  44. Fort Union Trading Post, ND
  45. Glacier National Park, MT
  46. Hanford Site, WA
  47. Columbia River Highway, OR
  48. San Francisco Cable Cars, CA
  49. San Andreas Fault, CA
  50. Hoover Dam, NV

(To see the illustrated map, visit: http://www.shareably.net/perfect-road-trip-map/)

Connecticut’s Mohegan Tribe to Develop Casino at Incheon Airport in South Korea

Mohegan Hotel CasinoIn an ambitious effort that will introduce its product at one of the world’s major East-West connecting airports and possibly introduce a layover component to inbound tour packages to the U.S., the Mohegan Tribal Gaming Authority—it’s part of the Mohegan Tribe of Indians of Connecticut—has announced a partnership with the Incheon International Airport Corporation (IIAC) to build a hotel-casino resort midst an 800-acre parcel of land on airport grounds. It will include the world’s first and only private jet terminal connected to an integrate resort.

The development is expected to include; two-tower luxury hotel complexes with 1,000 guest rooms; the first and only private jet terminal in the world connected to an integrated casino resort; more than 18,500 square meters of retail, food, art and music entertainment experiences; a Korean cosmetics and beauty hub; entertainment arena with capacity for up to 20,000 attendants; an indoor-outdoor amusement park and more than 12 outdoor attractions, as well as  and an 18,500 square meter casino with 250 tables and 1,500 slot machines.

For many of airline passengers traveling to and through South Korea, layovers of six to eight hours or more are not uncommon. Not long after in opened in 2001, Incheon Airport launched a series of free tours (transit and transfers included) designed to introduce layover travelers to South Korean culture, attractions and shopping. Currently, the airport offers: a one-hour tour of Yonggungsa Temple; a 2-hour tour of Incheon Temple; a 3-hour Incheon Culture Tour;  a 3 .5 hour Incheon City Tour; a 5-hour Seoul City Tour; a 5-hour Seoul Culture Tour; and a 5-hour Seoul Shopping Tour. There also self-guided tours  that travelers can take on their own. The airport also has a golf course, spa, private sleeping rooms, ice skating rink, indoor gardens and a Museum of Korean Culture.

In addition to making the property at Seoul International Airport a profit making entity, the venture by the Mohegan Tribe will expand the reach of its brand internationally. It is now confined to Connecticut, Atlantic City and the Poconos in Pennsylvania, where it has gaming and hotel properties.

NEW ATTRACTIONS—A Sampler of New Places and Experiences for the Visitor to the USA

Pawn StarsTV’s “Pawn Stars” Launch Pawn Plaza Next to Their Las Vegas Pawn Shop: Ostensibly seeking a medium in which to accommodate the growing numbers of visitors (an estimated 4,000 a day) who stop by their modest pawn shop business on Las Vegas Boulevard about two miles north of The Strip, Rick Harrison and family, stars of the History Channel’s “Pawn Stars” program, which tracks the buying, selling and dealing of three generations of the same family, has opened Pawn Plaza right next to the World Famous Gold & Silver Pawn Shop just north of the Las Vegas Strip on Las Vegas Boulevard.

A $4 million venture that uses the Xtreme Cubes System as its design signature, Pawn Plaza, when completed, will comprise 72 Cubes combining for 36 structures and as many as 16 retail spaces. Most of the tenants, including the restaurants already announced at the location (Rick’s Rollin’ Smoke BBQ and Tavern, Smoke’s Coutinerie of Quebec and Rita’s Italian Ice) will take up more than one Cube. For more information, visit www.gspawn.com, or call 702.385.7912.

 

Firemen's LandingFire Fighter-Themed Attraction Opens in Branson: Hundreds of firefighters from across the country gathered April 10-12 in Branson, Missouri for the grand opening ceremonies of Silver Dollar City‘s Fireman’s Landing, a new $8 million area with 10 family adventures, modeled after a community fair of a century ago and showcasing mock training activities of volunteer firefighters. The storyline creates the atmosphere of the rides serving as “training” adventures for recruits for the Silver Dollar City Fire Brigade. For more information, visit www.silverdollarcity.com.

 

INBOUND Symposium Agenda Set for May 6

rtoSummitLogoMainLeading tour and travel industry leaders, from both the buyer and supplier side, will explore a number of current issues of interest at the NAJ’s RTO Summit East, May 6 and 7 at the Wyndham New Yorker hotel in Manhattan. The agenda for Symposium, which takes place for the first day of the Summit, is as follows.

8:45-9:00 am: Opening Remarks, Crystal Ballroom

9:00-9:45 am: Educating the Clueless Revenue Manager. Or how 26 million room nights are sold through a channel few of the numbers nerds dictating allotments have ever heard of. Presenter: Jake Steinman, Founder and CEO, NAJ Events and Media.

9:45-10:05 am: An Inside Look at The Brazilian Tour Operator Market.  A long time independent expert on the Brazilian market provide a candid assessment of the leading tour operators in the country.   Presenter: Celyta Jackson, Partner, Alban Communications (Ms. Jackson, in a previous life, was VP Tourism for what is now NYC & Company).

10:05-10:25 am: What’s New for IPW in Orlando in 2015?   Presenter: Malcolm Smith, General Manager, US Travel Association 

10:25-11:00 am: Coffee Break sponsored by The INBOUND REPORT

11:00-12:00 noon: Hotel Rate Parity Debate: “There are Two Sides to Every Story.

Rate Parity is an “Offense to Mankind” that and punishes the consumer by not allowing prices to reflect volume and demand. Presenter: Uri Argov, Founder and CEO, Tourico Holidays

Rate Parity is Saving Hotel’s You-know-What. It is the only way hotels can prevent their brands from being commoditized by third party intermediaries. Presenter: Bob Gilbert, VP Sales and Marketing, Exotics Racing (and formerly VP Worldwide Marketing Sales for both Best Western International and Choice Hotels.)

GRAMERCY PARK SUITE

12:00 noon-1:30 pm: Luncheon sponsored by NYC & Company and TheTourOperator.com.   The newest attractions and hotels in New York City and the outer boroughs.  Presenter: Fred Dixon, CEO, NYC & Company

CRYSTAL BALLROOM

1:30-1:50 pm: The State of the International Traveler. This groundbreaking American travel research, conducted twice a year, delves into behaviors and perceptions of international travelers, including leisure travel sentiment. Presenter: Erin Cummings, Partner, Destination Analysts

1:50-2:10 pm Could This Be the Receptive Operator of Future?   Presenter: Mel Tye, President of Tye’s Top Tours, a small New England based tour operator is expecting to triple HODGE PODGE—Shifts, Shakeups and Occasional Shaftings in the Tour and Travel Industry

Andrea KendalAndrea Kendal, group commercial director for Hays Travel, has left the company and is now managing director of Affordable Car Hire. Kendal had been with Hays since June 2006.

 

 

Titus JohnsonThomas Cook Airlines has appointed former airberlin vice-president Titus Johnson as vice president,  North America & Caribbean. Johnson was with airberlin from 2012 until September 2014, when he joined Qatar Airways, leaving the latter earlier this year.Prior to joining airberlin Johnson held roles at British Airways, VLM Airlines and Australian Airlines.

 

Grace HanlonThe state tourism director for New Jersey is stepping down. Grace Hanlon, executive director of New Jersey’s Division of Travel and Tourism, has announced that she is resigning, effective June 1st. Hanlon, 47, explained that she has a newborn daughter, and was ready for the next chapter in her life. Hanlon was appointed executive director of the state’s tourism agency in 2010 by Gov. Chris Christie.  Previously, Hanlon was president of Edvantage Media Group, an educational media production company that she founded in 1994.

 

Steve RathjeAs part of an ongoing structural reorganization that began two years ago, the Anaheim/Orange County Visitor & Convention Bureau has announced a series of changes to its senior leadership team, including the transition of Steve Rathje, marketing director, to build a business intelligence team within the marketing department. Rathje has been with the bureau since December 2011.

 

Ted BeattieThe president and CEO of Chicago’s Shedd Aquarium, Ted Beattie, has announced that he will retire in December 2016 after more than 20 years in the job. Beattie, 70, started his zoo and aquarium career as the Cincinnati Zoo‘s first marketing and development director, and he went on to hold directorships of the Knoxville, Tenn., and Fort Worth, Texas, zoos.

 

Complete Issue April 9, 2015

by

 

Beyond the Gateways Drive in UK Urges Trade to Boost Second-Tier Destinations

Beyond the GatewaysThe intensity of Brand USA’s Beyond the Gateways campaign—trying to get overseas travelers to visit non-gateway, second-and-third tier U.S. destinations—is more apparent than ever in the number one overseas source market for inbound tourism: the United Kingdom. As long as Inbound has been following the travel trade news outlets in the UK, it has never seen anything like the level of boosterism that has been urging travel agents to register for next month’s second annual USA mega FAM, which will break down a total of 100 agents into seven groups and take them on itineraries that will cover destinations in 22 states—about half of which have never been included on a Brand USA-sponsored fam before. The entry period for registering for the mega FAM ended April 3, following a two-week flurry of notices from trade journals urging agents to make sure that they have entered the pool of registrants. The mega FAM takes place May 14-21.

imagesBut the mega FAM is just one of the channels promoting the Beyond the Gateways campaign. The Visit USA Association UK, in its Travel News USA e-newsletter, devoted the landing page of its current issue to current products that, with the exception of some generic Visit USA pitches, plugged destinations such as Oklahoma City, The Beaches of Fort Myers & Sanibel, and Dutchess County, New York. (Hyde Park, in Dutchess County, is both the birth place and resting place of Franklin Delano Roosevelt, 32nd U.S. President.) Featured product that highlighted non-gateway itineraries included the following:

 

  • Bourbon TrailBourbon Country, which moves visitors along the Kentucky Bourbon Trail through the heart of bourbon country and stop in on eight of the state’s distilleries such as Maker’s Mark, Jim Beam and Woodford Reserve. Guests are able to experience the bourbon making process, view the facilities set in beautiful surrounding landscapes, and stick around for after-tour tastings of the best Kentucky bourbon. (http://www.kentuckytourism.com/dining/bourbon.aspx)

 

  • Self Drive Route 66A Self-Drive 17-Day Route 66 Tour— from £1,729 ($2,580) per person—from American Sky USA Holidays & Tour Specialist (www.americansky.co.uk). The self-drive itinerary takes travelers on a journey that includes through the classic Route 66 destinations that include: Chicago; Springfield (IL); St Louis; Springfield (MO); Oklahoma City; Amarillo; Santa Fe; Albuquerque; Holbrook (AZ); Williams (AZ) ; Las Vegas; and other stops before ending the trip with two nights in Santa Monica—the official end to U.S. Route 66.

 

 U.S. Hotel Rates “Going through the Roof”

hotelThe latest year-over-year data from the two principal hotel research firms in the country—STR and PKF Hospitality Research (PKF-HR)—show that, from February 2014 to February 2015, U.S. hotel supply has fallen behind demand, and that rates are going “through the roof.” In short, the key metrics for the hotel industry revealed the following.

MetricYoY Change—Feb. 2014 to Feb. 2015
Room demand4.60%
ADR4.60%
RevPAR8.50%
Room revenue9.40%
Supply0.90%
Occupancy3.70%

Sources: STR, PKF-HR

 

What Does A Club Sandwich Ordered from Room Service Cost in 15 Cities?

room serviceUsing data from a recent TripAdvisor report on room service costs, a Washington Post blogger produced a graphic illustrating the cost of five basic items common to all hotels in either their room service and mini-bar service: a standard club sandwich, a bottle of water, a bag/container of peanuts, a bottle/can of soda, and an individual serving of vodka. We’ve put the information in the table below.

Room Service & Mini Bar
Hotel Costs

DestinationClub SandwichWaterPeanutsSodaVodkaTotal
NYC$24.20$3.90$7.10$16.80$15.80$55.80
Las Vegas$16.70$6.70$12.00$12.70$12.70$53.30
Honolulu$16.30$6.00$11.50$10.70$10.70$50.50
Los Angeles$17.30$6.80$10.80$10.70$10.70$49.70
Atlanta$14.00$4.70$10.10$15.20$15.20$48.90
Boston$14.70$5.30$12.80$11.10$11.10$48.30
Washington, D.C.$19.00$5.00$7.30$9.30$9.30$48.00
New Orleans$16.30$5.20$10.20$9.20$9.20$45.10
Chicago$14.30$4.80$9.80$9.70$9.70$42.60
Orlando$14.00$4.30$9.50$9.70$9.70$41.20
San Francisco$17.00$4.80$6.00$8.80$8.80$41.20
Dallas$12.30$4.20$8.90$10.70$10.70$39.30
Minneapolis$12.00$3.50$8.40$9.10$9.10$36.60
Seattle$13.00$4.00$5.90$8.30$8.30$34.40
Denver$11.70$4.50$6.30$7.20$7.20$32.90

Source: Jody Sieradzki/TripAdvisor

New Multi-Purpose Entertainment and Attraction Destination Opening soon in Buena Park

SourceLocated about a mile away from the long-standing and popular Knotts Berry Farm along Beach Boulevard in Buena Park, California is The Source, opening some time in 2015. The Souce is a 450,000 square-foot urban center featuring shopping, dining options and cutting edge technology. The space is designed to reflect “the digital energy of Times Square, the visual energy of Tokyo and the avant-garde of Seoul.” In addition, visitors will have the opportunity to see some of their favorite musical artists at the 2,000 seat performance venue presented by YG Entertainment. In 2016, phase two of the project will see the construction of a 150 all-suite hotel that will feature meeting space, dining and a roof-top pool and bar. For more information, visit: www.sourceatbeach.com, or call 714.994.4300

USA is Clear Long-Haul Favorite for Travelers from Key APAC Markets 

PrintAnnual results of a member survey conducted by online travel company Travelzoo Asia Pacific shows that, despite the distance, the USA is a favored international long-haul destination of key APAC source markets. Destinations were selected from a list of 44 suggestion country markets. In releasing the survey results, the company said that the Nov. 12, 2014 visa agreement between China and the United States is expected to heighten mainland Chinese interest in U.S.-based holidays.

 

Top APAC Nations and Their Top Destinations by Market,

With Rank & Share

ChinaAustraliaJapanHong KongTaiwan
1. Japan (40%)1. Australia Domestic (50%)1. USA (38%)1. Japan (49%)1. Japan (56%)
2. USA (31%)2. USA (34%)2. Japan/domestic (28%)2. Australia (31%)2. Switz. (22%)
3. NZ (27%)3. UK (29%)3. Italy (22%)3. Korea (28%3. Italy (20%)
4. Australia (26%)4. NZ (27%)4. France (20%)4. Maldives (25%)4. USA (20%)
5. Taiwan (25%)5. Italy (22%)5. Spain (18%)5. Thailand (21%)5. Maldives (19%)


Source: The member survey is an annual initiative by Travelzoo Asia Pacific conducted in collaboration with WIMI, a consumer insights consultancy firm. More than 4,300 Travelzoo members in Australia, China, Hong Kong, Japan and Taiwan participated in the survey.

The Travelzoo study also revealed that Chinese members will travel the most in 2015, taking an average of 6.4 leisure trips and spending an estimated $8,558 on average. Japanese members plan to take 5.2 leisure trips and spend $4,605 on average, while Hong Kong and Taiwanese members both plan to take 4.2 leisure trips, and spend $6,674 and $5,799 on average respectively. While Australian members will travel the least in 2015 (3.8 leisure trips), they will be the biggest spenders ($10,483 on average).

 

Germany Notes: Thomas Cook Reducing Amount of Deposit For Package Tours and DER Appoints New Manager.

In separate moves that should make it easier for Germans to purchase their travel arrangements, fvw reports that:

 

  • Thomas Cook GermanyAs a result of a German Federal Administrative Court ruling last year, Thomas Cook Germany is reducing the amount of a deposit for brochure package holidays from 25 percent to 20 percent, and for last-minute trips from 30 percent to 20 percent;

 

  • The deadline for paying the remaining 80 percent of the vacation package price has been changed from 40 days to 30 days before departure; and

 

  • Alltours has increased the number of sales outlets in Germany by 10 percent by signing up 800 more travel agents following changes to its commission arrangement. The majority of the new agents are smaller outlets.

 

  • Sedat TatliMeanwhile, Sedat Tatli has been appointed to manage the DER Touristik brand, Meier’s Weltreisen, beginning in June. He has been promoted to the job from his current position as M-W’s product manager for Asia and the Indian Ocean. He succeeds Matthias Rotter, who has been appointed as managing director of the DER Touristik Frankfurt, which includes responsibility for Dertour and ADAC Reisen.

 

 

 

 

 

UK Hodge Podge—Product, Prognostications and Personnel Changes

  • dnata-69407Dubai-based dnata travel, part of the Emirates Group, has acquired a majority stake in Imagine Cruising, a UK-based holiday firm. Apart from its UK location, the company also has offices in Cape Town in South Africa. So does dnata, and the deal is still subject to regulatory approval in that company. The acquisition is dnata’s latest in the UK. It has previously acquired Travel Republic, Gold Medal and Stella Travel Services.

 

  • Casey HurfordPete BrudenellCasey Hurford, product manager for letsgo2, has joined Kenwood Travel as product manager. Also joining Kenwood is Pete Brudenell, former partnership marketing manager at British Airways Holidays.

 

  • Chris MottersheadThomas Cook has appointed former Tui UK managing director Chris Mottershead as business development director. Mottershead, who has been working for Tui in Russia for the last four years, started at Thomas Cook’s Peterborough headquarters on April 1.

 

  • Andrew CooperAndrew Cooper, CEO of the Owens Cooper consulting firm,, told a recent seminar held by McIntyre Hudson and Barclays travel, that he foresees a good year for travel in 2015, but warned the more risk-averse firms that hedged currency and fuel could suffer. The former Thomas Cook director of government and external affairs added that, although he was in a generally positive frame of mind because the number of people travelling overseas is rising, there are a number of indicators that are giving contradictory messages. Although oil prices have fallen, he said, the strong U.S. dollar is offsetting any advantages for those that buy their oil in dollars. The weak Euro is good news for the sector, however, but not for the likes of the main bedbanks that have bought their accommodation in advance.

 

  • Peter Clements, CEO, TotalStay Group, and Terry Williamson, CEO, JacTravel
    Peter Clements, CEO, TotalStay Group and Terry Williamson, CEO, JacTravel

    B2B hotel accommodation wholesaler JAC Travel has acquired accommodation provider TotalStay Group for an undisclosed sum. The transaction was supported by Vitruvian Par

 

 

 

 

City Tours, Visits to National Parks and Monuments are Most Popular Activities for North American Travel

A recent surveyNAJ Image commissioned by the NAJ Group, based on the response of 344 travel professionals comprising U.S. tour operators (domestic and receptive), international tour operators and travel agents found that city tours and visits to U.S. national parks and monuments are the most popular activities for North American travel.

NAJ asked those surveyed to select the most popular activities for travel in North America based on their clients’ purchasing history, nearly 60 percent reported city tours, and well over half reported visits to national parks on monuments as the most popular.

Most Popular Activities for North American Travel

ActivityPercentage
City tours57.30%
Visits to national parks, monuments55.10%
Historic, cultural tours36.80%
Theme parks/attractions29.70%
Shopping24.80%
Beaches18.60%
Live theater13.90%
Museums13.00%
Gaming7.70%
Outdoor activities7.70%
Technical industrial tours3.10%
Agritourism3.10%

Question: On the basis of what your clients are purchasing, which are the most popular activities for their travel in North America? (Choose your top three). Base: All Respondents. 319 completed surveys.

Conducted for NAJ by Destination Analysts

New Members Named for NAJ Strategic Advisory Council

NAJ founder and CEO Jake Steinman has announced that three more senior travel and tourism industry leaders have agreed to served on NAJ’s Strategic Advisory Council, an association of thought leaders and professionals from representing various sectors of the industry who will assist the NAJ Group in shaping its strategic vision for the future. The new council members are: Sharon Siskie, vice president, marketing and sales, international at Disney Destinations; Karen Kurth, sales director, international at Disney Destinations; and Bob Gilbert, vice president, sales and marketing at Exotics Racing. Following is the complete list of Strategic Advisory Council members.

 

 

NAJ Group Strategic Advisory Council

  • Uri Argov, founder and CEO, Tourico Holidays
  • Peter Dorner, president, New World Travel
  • Mike Gallagher, founder and chairman, CityPass
  • Sheelagh Wylie, head of trade sales, midway attractions, North America, Merlin Entertainments
  • Sally Davis Berry, tourism sales and marketing manager, Corning Museum of Glass
  • Malcolm Smith, vice president of business development and general manager of IPW, U.S. Travel Association
  • Evan Saunders, founder and CEO, Attract China
  • Mike Prejean, sales, international, contracts and missions, Louisiana Tourism
  • Teresa O’Neill, vice president, global sales, Travel Oregon
  • Alberto Cervera, head of specialized groups, tourism sales and loyalty groups, TUI/Hotelbeds
  • Robert Graff, vice president of marketing and international sales, Papillon Group
  • Sharon Siskie, vice president, marketing and sales, international at Disney Destinations
  • Karen Kurth, sales director, international at Disney Destinations
  • D.T. Minich, president and CEO, Experience Kissimmee
  • Bob Gilbert, vice president, sales and marketing at Exotics Racing

New CMO for Brand USA

jhhculz2.jpg.size.xxlarge.letterboxAfter the position had been officially vacant for months, Brand USA has announced the appointment of David Whitaker as its new chief marketing officer. A veteran of nearly three decades in the travel and tourism industry, Whitaker comes to the position from Tourism Toronto, where he has served as president and CEO for almost eight years. Prior to his tenure in Toronto, Whitaker spent 17 years with the Greater Miami CVB, lastly as executive vice president and chief marketing officer.

The last person to hold the title, Yvonne La Penotiere, held it for less than a year after she was appointed to the post in June 2013, just in time to attend ipw 2013 in Las Vegas. La Penotiere, who had spent most of her professional career in the Minneapolis area, left Washington, D.C. to return to the area for family-related reasons, according to reports. Then, she officially left Brand USA last June. In the interim, Tom Garzilli, senior vice president, global partner marketing, has handled many of the public duties of the CMO.

 

Notes from Canada—Actor Stars in Film Promo Targeting China, While Fam Tour Targets UK 

Fam TourWhile the registration process for the Brand USA mega FAM 2015 closed last week, registration is still open for UK travel agents seeking to be one of 50 agents who will be spread out among 11 fam tour itineraries across Canada Sept. 9-18, 2015. Organized by the Canadian Tourism Commission (CTC), the fam tour itineraries will take those who secure a spot among the chosen 50 to British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, Newfoundland & Labrador or the Yukon. Registration closes May 31, 2015. CTC’s airline partner in the fam tour is Air Canada.

 

Godfrey GaoGodfrey Gao, Taiwanese-born Canadian model and film and television actor, and also an ambassador for the CTC, pitches Canada in a new film short directed at Chinese travelers. The hope is that Gao—he is a widely known household name and image in Asia and his father is from Shanghai—will stimulate interest in Canada among the millions of Chinese who regularly go online to research travel information. More than 22 million people have viewed last year’s film on major Chinese streaming websites, such as Youku, Pptv, Sohu and LeTV, according to the CTC.

 

The U.S. might stand to benefit from the film’s impact, should Chinese visitors make Vancouver, which is Gao’s hometown, their point of entry, as Vancouver is also the point of entry for nearly 10 percent of the Chinese travelers who visit the U.S. following their arrival at Vancouver International Airport, which is just 28 miles from Blaine, Washington. Blaine borders Canada and is an international point of entry into the U.S.

 

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Is There any Merit to Yahoo’s Stereotypes?

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1408740930000-American-GothicAVenturing into the funny and not-so-funny business of attributing stereotypes of the people of each U.S. state, Yahoo Travel asserts that, “We’ve all heard them, and we’ve all done it. Even the most politically correct among us has thought at least one of the stereotypes on this list.”

With this preface, the Internet service provider has published its list of The Worst Stereotypes about Every U.S. State. “Not all stereotypes are necessarily bad. They’re really just generalizations about a group of people based on assumed shared qualities or behaviors,” adding, “as travelers, stereotypes can sometimes be helpful, but more often than not, they’re a hindrance to really getting to know the locals. Still, they’re good to know, at the very least so that you can avoid making a serious faux pas next time you land somewhere new and completely foreign to you.” The list is based on a poll of “experts, Yahoo Travel readers and residents” in order to “find out the worst misconception that the natives want you to know just isn’t true.”

List of Worst State Stereotypes

State

Stereotype
Alabamagty_03_nascar_fans_nt_130222_ssv

“They care about football, football, football… and NASCAR. Life revolves around one or the other.”

Alaska

“Many residents are simply burly, ice-fishing fur-wearers who club seals for sport.”

Arizona

“It’s filled with senior citizens who carry their own hot sauce everywhere and claim that finding a parking spot in the shade is more important than the birth of their first child.”

Arkansas

“One of the most common misperceptions of Arkansas is that everyone who lives here is a “hillbilly,” explains Leah DiPetro, communications manager for the Arkansas Department of Parks and Tourism. “This misperception was encouraged back in the 1930s through popular entertainment.”

California

“The state is filled with beach bums, bodybuilders, activists, and movie stars. “Everyone thinks we’re all a bunch of laid-back, easy-going surfers. Try visiting the tech hives of Silicon Valley or San Francisco these days and saying that,” says Yahoo Travel editor Greg Keraghosian.

Colorado

“Everyone is a stoner who loves to ski.”

Connecticut

“This state is made up of the country-club-loving, pastel-wearing, helicopter-flying part of the 1 percent.”

Delaware

“People travel here from other places just to shop and avoid paying taxes. That’s it.”

Florida

“Its population is basically made up of retirees, beach bums, and gator hunters.”

Georgia

“It’s overflowing with sweet Southern blond women and the kind of gentlemen who you’d want to bring home to mama.”

Hawaii

“ Everyone surfs — and that’s it. Also, the locals hate the mainlanders, with a passion.”
Idahopotato farmer

“Everyone is a potato farmer.”

Illinois

“Everyone talks like Mike Ditka and loves da Bears.”

Indiana

“People here think a tractor is the only necessary form of transport.”

Iowa

“The state is all about corn farmers and a caucus once every four years”

Kansas

“People always assume I live on a farm, am super-religious or racist, and own a gun. I also regularly get asked if I have ever been in a tornado. But the truth is, Kansas is an amazing place. It has great schools, a creative vibe, friendly people, great music, and great food,” says Julie Johansen, a Kansas native.

Kentucky

““Of course there are a lot of people who think we are rowdy, inbred hillbillies, blue-collar workers who don’t wear shoes, who live to fish and hunt. People think we are a decade behind regular social (and fashion) movements … “ says Thomas Jarboe, a Kentuckian.

Louisiana

“Everyone is into voodoo, and it’s home to gumbo-loving partiers who treat every day like Mardi Gras.”

Maine

“Residents of Maine are seafood snobs who mostly wear plaid and can’t pronounce the letter ‘R’ properly.”

Maryland

“Marylanders are known for their obsession with education and politics, at least where I grew up. The public schools are better than most out-of-state private ones. There are a lot of Ivy-Leaguers and preppy kids. But people are very family oriented and polite,” says Marylander Diana Carrier.
MassachusettsMass

“We are self-titled Mass-holes,” says Massachusetts native Melissa Rappaport. “And most people judge the accent. Even if you are from here, it sounds terrible. But we are the most hardcore sports fans. Just don’t mention the Yankees.”

Michigan

“Their hate for Ohio far outweighs their love of anything else. “

Minnesota

“Minnesotans love Prince and the movie ‘Fargo’.”

Mississippi

“Mississippi businessman Rick Looser actually funded an ad campaign to try to dispel stereotypes about his home state after being asked on a plane if he sees those Ku Klux Klan people on the streets every day’.”

Missouri

“Stereotypes I have heard about people from Missouri include the fact they are the kind to shoot first, ask questions later. Own camo furniture and a ‘good’ baseball cap for church. Oh, and they like to play deer-hunting video games,” says Susan Jack of Missouri.

Montana

“Hunting season is more important than Christmas to Montanans, they ride horses to school, and they are total badasses. The badass bit is true.”

Nebraska

“It’s full of call-center workers who love corn and corn-fed steaks and everyone lives on a farm. However, ‘we don’t ride cows to school, our cities have more than one stoplight, and we have indoor plumbing. The first time I touched livestock was at a petting zoo’,” says Yahoo Travel editor Brittany Jones Cooper.

Nevada

“Everyone works in a casino as a cocktail waitress or an Elvis impersonator. And they all have gambling problems. “

New Hampshire

“The people here are overtly happy, religion-shunning vegetable growers, whose No. 1 topic of conversation is taxes.”

New Jersey

“Home of the spray tan, the back-combed bouffant, the ‘Shore’ and steroid abuse.”

New Mexico

“This is the state where meth is made and where everyone has been abducted by aliens”.
New Yorknew york

“New Yorkers are rude!” Johanna Legaspi told Yahoo.

North Carolina

“North Carolinians will fight you over the best way to make barbecue, and their tea is never sweet enough.”

North Dakota

“People think that we all speak with a German/Scandinavian accent like in the movie and TV series Fargo,” claims Sarah Otte Coleman, director of tourism at the North Dakota Department of Commerce. “You have to look pretty hard to find accents like that in North Dakota!”

Ohio

“All Ohioans actually wish they lived somewhere else. Anywhere else. Especially during an election.”

Oklahoma

“The home of the deep-fat fryer — where people will fry everything from fish to rattlesnake, and everyone is overweight.”

Oregon

“This is the land of overly polite drivers of Priuses who live in communes.”

Pennsylvania

“Everyone thinks we are blue-collar, Rocky-loving, loudmouths who will fight you if you dare say anything negative about the Eagles or cheesesteaks,” says Philly native, Yahoo Travel Managing Editor Jo Piazza.

Rhode Island

“The state where everyone is all up in each other’s business. And they all sound like Peter Griffin from Family Guy. ‘The thing about Rhode Island is that you can get from anywhere in the state to anywhere else in the state in under an hour. So the stereotype is that people think that everyone from Rhode Island considers any drive over an hour a VERY, VERY long road trip,’” says Rhode Island native, Yahoo Travel community manager Annie Daly.”

South Carolina

“Fireball shots for breakfast and cigarettes for lunch? ‘I’m in South Carolina, and I want to banish the belief that we’re all racist and homophobic. Oh, and that we all dress like we’re featured in ‘People of Walmart’,” Eva Fridy Rector told Yahoo.

South Dakota

“People here are simple-minded and easily entertained.”
Tennesseefried chicken

“Stereotypes about Tennessee are all kinds of country. People think we all wear cowboy boots, jean shorts, and graphic T-shirts with Garth Brooks’s face on it. Our drinks of choice are fireball, more fireball, and cheap beer, and we eat fried chicken, hot chicken, and rotisserie chicken.”

Texas

“Everyone in Texas wears cowboy boots and rides horses.”

Utah

“This is the center of the Mormon universe, where it is OK to cheat on your wife with your other wife.”

Vermont

“In this state, it’s legal to inject maple syrup into your bloodstream, or should be. And everyone talks funny — about cows mostly.”

Virginia

(Apparently,  Yahoo could not come up with stereotypes about Virginians.)

Washington

“People who live here clearly love rain and trees and Big Foot.”
West VirginiaOMG

“Most people think Deliverance was filmed here. The state has long had a reputation of inbreeding, which isn’t helped by several suggestive Hollywood movies and documentaries.”

Wisconsin

“Someone once asked me if we get fat in the winter to stay warm. And people think that all we do is drink beer and eat cheese. Well that is probably true in some cases. And I guess people think we all have this awful Midwest accent,” says Wisconsin native and Packers fan Rebecca Soper.

Wyoming

“The people here are all right-wing horse lovers who hate anyone and anything that comes from Colorado.”

Source: Yahoo! Travel

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Complete Issue March 26, 2015

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Mixed Reports for 2015 Summer Bookings from Germany—Will it be Another Flat Year?

downloadAccording to a couple of regularly released travel trade surveys, bookings for summer holidays have picked up, reports the German travel trade publication FVW, belying the sense of hesitation and anxiety that one sensed at ITB earlier this month in Berlin, and in the longer trend line for German arrivals in the U.S. over the past several years.

 

U.S. Arrivals from Germany

2012-2015

YearUSA Arrivals (000s)% Change vs. Previous Year
20151,994††1%
20141,9693%
20131,9162%
20121,8763%

† Forecast

Source: U.S. Department of Commerce, International Trade Administration, U.S. National Travel and Tourism Administration

The Nuremberg-based market research firm GfK reported that, based on its monthly survey of 1,200 leisure travel-focused agencies, holiday bookings for summer 2015 were 10 percent higher year-on-year in February, although it should be noted that February of last year began a period of weak bookings that continued up until the summer of 2014. Cumulative summer sales are now 6.4 percent ahead of last year. Bookings were particularly strong for departures in May and July, said GfK, and there was good demand for June.

Another monthly survey—this one by Frankfurt-based Travel Agency Technology & Service (TATS)—had less upbeat numbers. It showed a sales increase of just 2.5 percent for leisure travel in February, resulting in a cumulative increase of 4.5 percent for the first two months of 2015. The TATs figures suggest a growth in business that is closer to the NTTO arrivals forecast in the above table.

 

Brand USA’s DMO DNA Shows … and More Info Bytes from Brand USA’s Board Meetings

awesome_usa640

From the March 12 Meeting of the Brand USA Board of Directors …  

  • New Marketing Committee Has Three out of Five Members with DMO Connection: At its recent board meeting, the DMO signature of Brand USA was more and more apparent—something that ought not come as a surprise: it should be noted that the Travel Promotion Act that established Brand USA called for two of BUSA’s eleven board members to represent state tourism offices and one to have CVB expertise. At its meeting, Board Chairman Arne M. Sorenson, president and CEO of Marriott International, Inc., announced the makeup of BUSA’s standing committees. On the marketing committee, which elicits the most interest from U.S. travel suppliers and DMOs who are Brand USA partners, three out of the five members on the committee have a DMO background: Caroline Beteta, president and CEO of Visit California; John Edman, director of Explore Minnesota Tourism; and George Fertitta, formerly the president and CEO of New York City & Company, and now CEO of Bloomberg Associates, a global consultancy founded by former New York City Mayor Michael Bloomberg. Chairing the committee is Barbara Richardson, chief of staff of the Washington Metropolitan Area Transit Authority (Metro). The remaining member is Randy Garfield, who retired last year from his post executive vice president of worldwide sales & travel operations for Disney Destinations after serving more than 20 years with the Walt Disney Company. As well, Christopher Thompson, headed Visit Florida prior to becoming president and CEO of Brand USA.

Also, Tom Garzilli, senior vice president reported that, in a just-completed partner feedback study of nearly 70 partners, the largest segment comprised DMOs. The smaller partners, including DMOs, rely on Brand USA, explained Garzilli, for the bulk of their international marketing and see great value in it. Most, he added, indicate that they will continue to contribute to Brand USA and—a sure sign of smaller DMO involvement—are looking to BUSA for help in the results of their international marketing efforts and measuring ROI.

  • FY 2014 ROI Study Near Completion: Results of its second major Return on Investment (ROI) study will be released next month. The results are expected to be in line with the original, projected impact of Brand USA prior to enactment of the Travel Promotion Act, which was signed into law on March 4, 2010: i.e., a marketing ROI of 20:1 within five years of full deployment.

This should help to quell some of the skepticism that greeted BUSA’s first ROI study, completed and released in February 2014. In that study, Oxford Economics, in coordination with its Tourism Economics subsidiary company, conducted an analysis of Brand USA’s marketing in its 2013 fiscal year (October 1, 2012-September 30, 2013), basing it on an econometric model of how the eight markets in which Brand USA was fully active would have performed without its investments in marketing compared with actual performance. The markets included Canada, Mexico, Japan, South Korea, the United Kingdom, Germany, Brazil and Australia. Following is what the report revealed.

 ROI Estimates

Net Revenue Generated$3,401,951,199
Total Marketing Expenses$72,740,306
Total Budget, Including Start-up costs & Overhead$99,022.80
Estimated Marketing ROI47:01:00
Total Budget ROI34:01:00

Source: Oxford Economics, The Return on Investment of Brand USA Marketing: 2013 Fiscal Year Analysis

 

  • New to Brand USA: It was announced that several individuals have new positions on the organization’s staff, including Cassady Bailey as director of partner services, and Mark Lapidus as digital and social media director. Bailey, who joined BUSA in October 2012, was promoted from her post as manager, partner services. She takes over the position previously held by Patricia S. McNally, who left the agency last December. Prior to his appointment, Lapidus served for nearly seven years as vice president of Comcast SportsNet, Mid Atlantic (NBC Universal).

UK Trade and Trend Talk

 

  • British Grandparents (1)Seniors Planning Holidays around Caring for Their Grandchildren: More grandparents seem to be scheduling their holidays around childcare responsibilities—this is one of the key findings of a new study conducted by Mintel, the market research and intelligence company, for Warner Leisure Hotels, which specializes in holidays for over-55 travelers.

The study report, “Great Expectations: Balancing the Benefits and Burdens of Modern Retirement,” had other key findings that included the following:

— Travel is still the number one priority for people in retirement.

— Many grandparents are central to making their family work, so they are often depended on for childcare.

–A trend has developed in which those in retirement take breaks when the school term resumes. This is referred to as “The Grey Escape.”

—Over 55s are showing an increased interest in active holidays, as their priorities are changing and they want to stay fit and healthy during their holidays.

  • STA TravelSTA Travel Launches “Bleisure Travel” Brand: The 18-to-35 specialist, STA Travel is expanding the product it provides its core student-and-youth market group by offering business travelers an online booking tool, account management and other benefits, along with the standard packages it has available. STA has had a B2B business travel component for more than 15 years, but the new offering marks the first time it has targeted business travelers directly. STA said it plans to benefit from what it calls a “bleisure” travel blend; it referred to recent research showing that 69 percent of business travelers in the 18-to-35 age group add a leisure component to a business trip.

Harriet Kerr, STA’s business development director said: “We’ve worked in this sphere behind the scenes for some time, and in recent years we’ve noticed not only a surge in younger people making business trips, but also a shift in the sorts of travel they’re booking.” An example of the type of product offered is a Multiflex Pass, which enables customers to change a ticket without fees.  For more information, visit: http://www.statravel.com/corporate-travel.htmhttp://www.statravel.com/corporate-travel.htm

  • Thomson Design StoreThomson Opening a Holiday Design Store in London: Driven by the apparent desire of many Brits for an in-store experience, as well as the success of a half-dozen “design” travel stores elsewhere in the UK, Thomson Holidays is opening a new Holiday Design Store in London this summer at Westfield Stratford City. Similar stores have opened in the past year-and-a-half in Gateshead’s Metrocentre, Bluewater Shopping Centre and Sheffield Meadowhall as well as Liverpool, Bristol and Glasgow in the last 18 months.

The stores feature HD screens and projections featuring destination and hotel content. An 84-inch touch screen interactive map, a Top Ten 10 holiday list and live weather information will be available at the new store together with reviews and destination videos. As well, social media feeds will be streamed onto screens, with customers encouraged tweet their name and holiday destination. The store will be zoned with specially designed areas for customers to browse for holidays on their own devices or by using interactive screens.

“Our existing Holiday Design Stores have been a huge success with excellent feedback from both customers and staff,” said Jill Carter, UK & Ireland director for TUI (Thomson is a TUI brand), “and we have already started to introduce elements from these new stores to our existing ones and have implemented changes to 24 so far.”  

American for Fair SkiesNasty War of Words between Airlines and U.S. Travel over Gulf Air Carriers Making Headway into USA: Blunt, harsh and contentious language from lobbyists in official Washington is not unusual, but it is unusual to see or hear it as opposed to the polite prose usually employed by the representatives of the U.S. travel industry and its components who, by the nature of their business, serve a bipartisan constituency.

But the third-person courtesy has been abandoned during the past month as major airlines in the USA contend that airlines in the Persian Gulf—specifically, Etihad, Emirates and Qatar Airways—are being subsidized by the United Arab Emirates and Qatar and therefore have an unfair advantage in operating lucrative flights from the Persian Gulf area into the U.S. (It should be noted that Etihad and Emirates, which operate out of Abu Dhabi City and Dubai, respectively, have greatly expanded the number of connecting flights to and through these cities from points in Asia—especially India—to destinations in the U.S.). Emirates is a subsidiary of The Emirates Group, which is wholly owned by the government of Dubai’s Investment Corporation of Dubai, while Etihad was established by royal decree in 2003. Its CEO is Australian James Hogan, former CEO of Gulf Air, who took over at Etihad in 2006.

The open skies policies supported by both U.S. political parties in the past have come under attack from United Continental Holdings, Delta Air Lines and American Airlines groups, as well as by a coalition that includes the Air Line Pilots Association, the Allied Pilots Association; the Airline Division of the International Brotherhood of Teamsters; the Association of Flight Attendants; the Association of Professional Flight Attendants and the Communications Workers of America.  

The crux of the position of the latter is included in a statement they directed at U.S. Travel which said, “The Gulf carriers claim that their subsidized expansion into the U.S. market is delivering economic benefits to the U.S. but the truth is that every roundtrip international flight that is lost to the Gulf airlines results in a net loss of more than 800 U.S. jobs. Furthermore, if U.S. carriers are pushed off of international routes, they’ll be forced to cut back on domestic routes to small and mid-sized communities too, cutting off millions of businesses and leisure travelers from the networks that connect them to destinations across the world. The Gulf nations’ subsidies are threatening a legacy and a service that our members are proud to provide the American public.”

Roger DowBut U.S. Travel President and CEO Roger Dow would have none of it, replying, “Unfortunately, having carefully scrutinized the Big Three airlines’ and their unions’ recent position on Open Skies, we arrive at a diametrically opposite conclusion: contravening these open and transparent agreements that were negotiated in good faith holds dire consequences for sustaining the U.S. economic recovery and recent encouraging job growth. I say this on behalf of the industry that has restored jobs 33 percent faster than the rest of the economy since the ’07-’08 downturn, and is now responsible for 10 percent of all U.S. exports—partially thanks to Open Skies.”

Outlook: US Travel should prevail on this issue—despite all-channel campaign by open skies opens that has even placed ads in the Washington Metro system. As important as it may be to the travel industry, this is not a front burner issue, which means that Dow and the US Travel government affairs team has an advantage: They do their best work out of the public eye, through back channels and make certain to take no credit, encouraging their legislative partners to do so. Also, as some news accounts indicate, even some legislators who would normally be supportive of union positions are not sympathetic because they believe that the airlines have not reduced ticket prices or passed along to consumers the benefits of reduced fuel oil prices they’ve experienced since last year.

How Reliable is NTTO’s Forecast for Inbound Travel?

NTTO ForecastIt turns out that the NTTO forecasts are pretty reliable. Since the U.S. Department of Commerce’s National Travel and Tourism Office (NTTO) ended the contracting out of its semi-annual forecasts in early 2010, the agency has been able to increase the input provided for the process, as well as expand the number of sources and  the diversity of information configured into the development and fine-tuning of the model for the forecast, which has proved to be a valuable planning tool for U.S. travel suppliers and DMOs that are marketing and promoting the U.S. travel experience internationally.

There are two reasons why. First, it has become increasingly accurate. A look at the last semi-annual forecast, which was released last November—at the time, NTTO has just released international arrivals data for up to, and including, August 2014—shows why. (Final figures for 2014 did not come out until earlier this month.) By the time a year finally happens, Mark Brown, the Department of Commerce economist who heads the forecast team, NTTO will have forecasted volume for that year up to 12 times as it deals with a fluid set of metrics in its calculations.

And, second, it is free.

INBOUND recalled the projections NTTO made last November for 2014 arrivals from the then-top 20 international markets  and compared them in the table below to the actual 2014 arrival numbers posted earlier this month. What they show is that a fairly conservative NTTO was dead-on accurate or near-dead on accurate for the key markets of the UK, Japan, Germany, France, South Korea, Australia, India, Italy, Colombia, Sweden and Taiwan.

Overall, the government agency was off by percentages that are small: international arrivals off by +1 percent and overseas arrivals off by +2 percent. Other key markets registered as follows: China (-2 percent); Spain (+2.6 percent); Brazil (+2.6 percent); India (+2.7 percent) and Mexico (+4 percent).

Forecast and Final Arrivals Figures for 2014

For International Arrivals to the USA

(000s)

Country/Market & Rank for Full Year 20132013 Arrivals-Actual2014 Arrivals Forecast in November 20142014 Arrivals-Actual
(date from March 15)
1. Canada23,38723,62122,975
2. Mexico14,34316,63817,334
3. UK3,8353,9503,972
4. Japan3,7303,6183,580
5. Brazil2,0602,2052,264
6. Germany1,9161,9551,969
7. China1,8072,2402,188
8. France1,5051,6251,625
9. South Korea1,3601,4421,450
10. Australia1,3051,2771,276
11. India859936962
12. Italy839948934
13. Venezuela788670616
14. Colombia748875881
15. Argentina686720685
16. Spain620682700
17. Netherlands589619616
18. Sweden477534543
19. Switzerland473506487
20. Taiwan385404413
Overseas Total32,02833,62934,419
International Total69,76873,87774,729

Source: U.S. Department of Commerce, International Trade Administration, U.S. National Travel and Tourism Administration; Secretaria de Turismo—Mexico; Statistics Canada

Where the agency was off—in the case of Venezuela (-8 percent), Argentina (-4.9) and Switzerland (-3.8)—the impact was not that great, except for Canada in which a slightly off-mark projection (-2.7 percent) translated into more than 640,000 arrivals.

But, there were unforeseen factors that help to explain the divergence between forecast and final figures. For Venezuela, a bad situation got worse toward the end of 2014 as airline lift capacity was reduced by major airlines that, in some instances, are still waiting to convert into dollars the Venezuelan currency (bolivares) they hold that was used to pay for billions of dollars worth of travel. Also, out-of-control inflation and a nearly worthless bolivar ruined the opportunity for many Venezuelans to take any international trips during the last third of the year. The outlook for 2015 is not much better than the outcome of 2014—an outlook made even cloudier by the Venezuelan government’s decision to force the U.S. embassy to cut its staff by 80 percent, which will make the review and approval of visa applications a slow and lengthy process. Argentina, too, has been plagued by inflation and currency devaluation so bad that it has had an impact on international travel for the past six months.

In the matter of Canada’s Q4 falloff, the slide of the loonie vs. the dollar was so dramatic in the past 30 months that, toward the end of 2014, short-haul overnight travel to the U.S.—the sort of travel used for overnight shopping trips—fell off precipitously. Instead, there was a spike in short-haul travel from the U.S. to Canada.

Toward the Future: Perhaps the public or private sector will come up with a mechanism that is able to track, in real time, data based on the input of the receptive tour operators who are the point of contact for the tour international tour operators who are buying, assembling and selling USA travel product. Such a mechanism would be a valuable addition to the NTTO information already available. (In the meantime, until that happens, read INBOUND.)

Oregon Takes Domestic Campaign and Extends it to UK

So successful was Travel Oregon’s “Seven Wonders of Oregon” campaign last year—it targeted in-state travelers and in-close drive markets—that it is has re-launched it for 2015 and extendTravel Oregon Logoed it overseas, to the UK. Introduced last spring, the campaign contributed to a nearly 10 percent growth in statewide lodging revenue in 2014 over 2013, according to the research firm STR, Inc.  In addition, Travel Oregon’s online fan base grew by more than 120,000 and the state’s tourism website, TravelOregon.com, experienced a record number of unique visitors during the campaign, giving a new audience a view of Oregon’s diverse natural attractions.

So, with the beginning of March, the Seven Wonders campaign featured seven well-known natural wonders of Oregon as the focus of destination travel: the Oregon Coast, Mt. Hood, the Columbia River Gorge, Crater Lake, the Painted Hills, the Wallowas and Smith Rock.

Linea Gagliano, Travel Oregon’s manager for industry and public affairs, told INBOUND that it was able to extend its presence into the UK with a Tripadvisor buy that was enhanced by the Brand USA presence in the market and in the campaign. From March 5 to March 20, the agency served up “7 Wonders of Oregon” banner ads to 357,955 UK consumers who were on Tripadvisor searching for Oregon, Washington, Idaho and/or for outdoor, ski or beach-related content. Total cost for the UK venture was a modest $7,500.

Following its previous format, the campaign also includes a sixty-second “anthem” video featuring all Seven Wonders of Oregon. The spot will air in cinemas and on television in the key markets of Portland, Seattle, San Francisco, Boise, Vancouver B.C. and, now, the UK.

Additional 30-second spots will showcase the unique experiences to explore around each individual wonder. Along with Portland-based Wieden+Kennedy, Travel Oregon worked with a team of agencies to bring this campaign to life, including LANE, MEDIAmerica, Sparkloft and Substance.  For more about the campaign, contact Linea Gagliano, manager, industry and public affairs, Travel Oregon at 503.729.6021, or Linea@TravelOregon.com.

Survey Profiles NAJ User Community

The results from a rNAJ Surveyecent survey conducted for the NAJ Group by San Francisco-based Destination Analysts show a strong presence of tour operators—domestic, international and receptive. The online survey was sent out in late October and early November to more than 4,800 recipients comprising travel trade professionals who make up NAJ’s subscriber base and use its website, TheTourOperator.com. Highlights from the results of the survey include the following:

  • More than a third (35.3 percent) of respondents are domestic tour operators.
  • Almost half (46.4 percent) are international operators, travel agents or inbound receptives.
  • More than three out of four (78.6 percent) sell leisure group tours, and more than half (52.6 percent) sell FIT independent tours, while Fly-Drive and MICE business are sold by 31 percent and 21.4 percent, respectively.
  • The tour operator segment is generally comprised of small businesses—more than three quarters of this segment’s survey respondents were an organization with 10 or fewer employees (49.8 percent) or 11-50 employees (27.9 percent).
  • During the survey period, nearly half of the respondents (48.7 percent) said that there 2015 bookings were about the same as their 2014 bookings at the same point in the previous year, while 43.4 percent reported that their bookings were “greater than last year.”

For the complete slide show illustrating the survey results, click on:

http://www.slideshare.net/jakes92294/naj-tour-operator-survey-preliminary-findings-12-914?related=1

HODGE PODGE

Kevin TriplettTennessee has a new state tourism director as Gov. Bill Haslam has appointed Kevin Triplett as commissioner of the state’s Department of Tourist Development. Triplett, 49, will leave his post as vice president of public affairs for Bristol Motor Speedway (BMS). Prior to joining BMS in 2005, he worked in various roles for NASCAR, ultimately serving as managing director of business operations, guiding the operation and administration of NASCAR’s Sprint Cup Series, Nationwide Series, and Camping World Truck Series. Triplett succeeds Susan Whitaker, who announced her departure in December. She is a former Dollywood executive who served as commissioner during Gov. Phil Bredesen‘s administration, as well as during Haslam’s first term.

Cordova-Micek (l) and Goetz (r)
Cordova-Micek (l) and Goetz (r)

Hyatt Hotels Corp. has announced two key appointments: Debra Goetz has been named senior vice president, corporate marketing and global communications; and Sandra Cordova Micek has been appointed senior vice president, global brands. Goetz joins Hyatt with more than 20 years of brand marketing expertise, including most recently as vice president of corporate marketing for the Gannett Company where she led marketing and communications initiatives. Prior to Gannett, she served as vice president at NBC Universal where she led the company’s Healthy at NBCU and Green is Universal initiatives, and as vice president for Univision Communications Inc. Cordova Micek brings more than 20 years of brand-building experience to the role, most recently as senior vice president of marketing for USA TODAY . Prior to USA TODAY, she was a vice president at NBC Universal, where she led cross NBCU sales and marketing and ran Women at NBCU.

Joel ManbySeaWorld Entertainment has announced the selection of a new president and CEO: He is Joel Manby, who most recently spent a decade as president and CEO of Herschend Enterprises, the largest family-owned theme-park and entertainment company in the country, with more than 20 entertainment attractions includes Silver Dollar City in Branson, Mo.; Wild Adventures Theme Park in Valdosta, Ga.; and the Harlem Globetrotters franchise. Manby, 55, succeeds Jim Atchison, who stepped down as CEO in January.

 

Marc AndersonMarc Anderson was recently named chief sales officer and senior vice president for Choose Chicago. Before joining Choose Chicago, Anderson served as regional director of marketing for the U.S. and Canada for Peninsula Hotels. Anderson is, in effect, returning to the tourism agency. Prior to his work with Peninsula, Anderson worked for the Chicago Convention and Tourism Bureau, which was renamed Choose Chicago. During his previous tenure, he served as assistant vice president of sales.

 

Christine Ourmieres-WidenerAmerican Express Global Business Travel has announced the appointment of Christine Ourmieres-Widener as chief global sales officer. She joins the company after leaving her post as CEO of CityJet. She will start her new position in June.

 

 

Richard FrancisCosmos Holidays has announced the appointment of a new managing director, Richard Francis, to replace Phil Boggon, who will be leaving the business at the end of April. Francis, who is currently finance director, and has been with the tour operator for more than 14 years. He will also join the company’s group executive committee.

 

 

 

Possible Dig Me ad

Complete Issue March 5, 2015

by

AlibabaWhile discussing his company’s profile during a presentation at NAJ’s recent RTO Summit-West in Marina del Rey, Calif., Bill Chambers, regional vice president of product development, Tourico Holidays, casually mentioned the fact that the company is meeting with officials of Alibaba, the giant online retailer based in Hangzhou, China—it also has a headquarters branch in Hong Kong—to discuss selling travel for the latter.

Alibaba “is huge,” said Chambers, noting that the online powerhouse has about 500 million users compared to 220 million for Amazon.com. Founded in 1998 in the apartment of Jack Ma, Alibaba’s executive chairman, the company’s market value was measured at $231 billion (vs. Amazon’s $165 billion).

Chambers provided no details regarding the discussions the company was having with Alibaba, which has more than a dozen other corporate entities that it operates, but the simple disclosure shows that the company’s global reach makes it a serious contender in providing travel product worldwide.

Bill Chambers (left) and Jeff Hentz, chief advisor, NAJ Group at RTO Summit
Bill Chambers (left) and Jeff Hentz, chief advisor, NAJ Group at RTO Summit

Last summer, Tourico closed the deal to become the booking engine for the travel division of Sam’s Club, the warehouse store component of Wal-Mart, the largest retailer in the world (interestingly, it is expected to be eclipsed by Alibaba in 2016, according to Forbes).

Tourico is also the exclusive travel provider for Air Miles Canada. Air Miles Canada is a loyalty program with a commanding presence in Canada. There are more than ten million active collector accounts across Canada; approximately two-thirds of Canadian households participate in Air Miles. The program has more than 100 partners, including Bank of Montreal, American Express, Shell Canada, grocery chains, drug store chains and more. Consumers collect Air Miles reward miles from sponsors, which can be redeemed for 1,200 reward choices, including (and especially) travel products.

As ITB Convenes, Not Everyone is Upbeat about the Outlook for Europe

Last week, the NAJ Group convened its RTO Summit West, one of three symposia held annually in the U.S. Gateway destinations (Los Angeles, New York and Orlando) that feature the market insights and outlook of receptive tour operators (RTOs), who bring to the discussion both a point of view and the most current information gleaned from their day-to-day updates of their sales data and personal contacts with other travel professionals. The RTO Summit symposia comprise the only conference series that focus on the USA’s international inbound tourism industry from the point of view of the RTO sector. 

###

 LogoActualiteSiteAs ITB Convenes, Not Everyone is Upbeat about the Outlook for Europe: Officials from two of the largest RTO companies with operations in North America who spoke about the outlook for inbound tourism from Europe during the NAJ’s recently convened RTO Summit West in Marina del Rey, Calif. were hesitant to sound the same tone of optimism found in the data-driven reports of  various government-sponsored research organizations and necessarily optimistic reports of the European travel trade, particularly that of Germany (See “In Germany, Consumers, Travel Trade in Buoyant Mood for ITB 2015”).

While acknowledging that the sales numbers for 2014 were better than they were for 2013, both Sanya Hamilton, head of leisure groups for Kuoni-owned AlliedTPro, and Sevil Arnavutoglu-Le, regional director, USA West, Hotelbeds (its parent company is Tui) reminded Summit delegates that a significant portion of the 28 EU nations have been slow to a recover from a recession that peaked in 2012 and had an especially damaging impact on the economies of Italy and Spain, both Top 15 overseas source markets for the U.S.

Sanya, Sevil, and Jeff Hentz, chief advisor, NAJ Group
Sanya, Sevil, and Jeff Hentz, chief advisor, NAJ Group

Hamilton said that 2014 was a better year for AlliedTPro, especially in key markets such as Italy, as it experienced a 20 percent year-over-year increase in sales volume; however, key markets were still only slowly emerging from recession. Hamilton should know: her key markets, which she monitors daily, include Italy, Denmark and Belgium, followed by the South American market of Brazil. For Hotelbeds, Arnavutoglu-Le noted, 2013 was a good year, and 2014 was even better, with a 25 percent increase in room nights sold last year. Such a spike has not necessarily translated across the range of Tui brands, as the company, overall, reported a relatively flat year.

Asked about the impact on business of the recent decline of the euro† versus the U.S. dollar Arnavutoglu-Le pointed out that, since Hotelbeds is a European company (it is headquartered in Palma de Mallorca, Spain) a decline in value of the euro has an effect. (Over the course of the last six months, the euro’s value, on a year-over-year basis, has declined by 12 to 20 percent against the U.S. dollar). She seemed more concerned, however, with the situation in Argentina and Brazil—both key source markets for Hotelbeds—where the national economies have experienced higher-than-usual rates of inflation and slowdowns in the growth. She added, however, that room night booking levels for 2015 from the two markets were already running at more than 60 percent of 2014 levels.

In addition to coping with changing economic forces, Hamilton reminded Summit delegates that her company is “going through a lot of changes,” an oblique reference to the news earlier this year that AlliedTPro’s owner, Zurich-based Kuoni, has put its tour operator division up for sale. Overall, she said, “there are many indications that things are getting better,” explaining that the company’s group bookings ahead of last year and key markets are rebounding.  

Where is the Group Market Trending? In response to this question Hamilton first explained that AlliedTPro has gone after groups more aggressively in the past two years and is generating more MICE groups, with many coming from Latin America and Europe. Hotelbeds, meanwhile, had earlier developed a separate division within its structure just for groups, because the company believes in group business.

What are the Emerging Secondary Markets in U.S. for Group and FIT? Referring to her company’s market of Spain Arnavutoglu-Le answered this question by telling delegates. “It’s difficult to educate the Spanish people to come to Fresno and Chattanooga.” She was quick to add, however, that Hotelbeds will be sending clients beyond gateway because (she San Francisco as example) “there are no new hotels in San Francisco, so we’re shifting the focus to secondary markets.”

† (The euro is the sole currency of 19 of the 28 European member nations, most notably the key source markets of Germany, Franc, Italy, Spain and The Netherlands. Overall, the countries that use the euro have a population (2013) of more than 330 million, a little larger than the U.S. popular of nearly 320 million.)

In Germany, Consumers, Travel Trade in Buoyant Mood for ITB 2015

This week’s ITB—the world’s largest travel show—in Berlin takes place just as the news comes that the nation’s consumer confidence in the economy is high and as the German travel trade is registering bullish numbers for the summer travel season. Travelers from Germany comprise the USA’s largest overseas source market in continental Europe and ITB historically has served as a barometer on how the tour and travel industry in Germany and, to a great extent, in the Eurozone will perform in the coming year.

  • First, from the research firm GfK comes the news that that consumer confidence in Germany could reach a level of 9.7 in March, up from February’s 9.3 rating.  If so, this would be the highest reading in more than 13 years—since it reached the 11.0 mark in October 2001.

A GfK statement on the numbers said, “Despite the ongoing crisis in eastern Ukraine and uncertainty as to whether Greece will remain in the Eurozone, Germans remain confident that their economy is clearly on course for growth.” However, acknowledging that other factors in the global economy must be considered, the firm said that, “If developments in these areas cause uncertainty among German consumers, this will also have a severe impact on the consumer mood and therefore also consumption.”  

  • Second, Deutscher ReiseVerband (DRV)—the German Travel Association—reported Feb. 26 that bookings for summer holidays this year increased about five percent, year-over-year, in January, with DRV President Norbert Fiebig observing, “We expect further growth at a high level for the whole tourism year.”
  • Possible Dig Me ad

 

DRV pointed out that, for the 2013-14 year that ended last October, the German tourism market once again hit record levels—Germany is the only European market that did not decline in the immediate wake of the 2008-09 global economic recession—with tour operators increasing their combined revenues by nearly 4 percent to €26.3 billion ($29.4 billion), which was about €1 billion ($1.2 billion) more revenues than in 2012/13. Growth was driven by cruises and demand for higher-value and higher-priced holidays. And while revenues grew by almost 4 percent, the number of customers increased by 2.5 percent, indicating that there was an increase in average prizes.

(Just before ITB was to open, ITB officials indicated that more than 110,000 trade visitors were expected at the event, held annually at the 1.7 million square-foot Messe Berlin convention center complex.)

Untitled

 

 Exchange Rate Plunge Leads to Bump in U.S. Travel to Canada

Decline of Canadian DollarThe most recent release of key tourism numbers by Statistics Canada suggests that a decline of 20 percent in the value of the Canadian dollar—the loonie—vs. the U.S. dollar over the past few years has something to do with a healthy uptick in the number of U.S. visitors to Canada, particularly among day-trippers (a sure sign that U.S. residents are crossing the border to do some shopping). Here is what the latest data from Statistic Canada say:

  • Overall travel to Canada rose 3.6 percent in December compared with November. This was entirely the result of more trips made by U.S. travelers to Canada—as travel to Canada from overseas countries decreased 0.5 percent in December to 441,000 trips.
  • Travel from the United States to Canada increased 4.7 percent to 1.7 million trips. Same-day car travel posted the largest percentage increase, up 6.5 percent to 618,000 trips, followed by overnight car travel, up 6.3 percent to 584,000 trips.
  • Canadian residents made 5.2 million trips abroad, up just 0.2 percent from November.
  • The number of trips made by Canadian residents to the United States rose 0.3 percent to 4.3 million. This gain was largely attributable to a 0.4 percent increase in same-day car travel to 2.4 million trips.
  • The number of trips made by Canadians to overseas countries decreased 0.6 percent to 922,000.

As for the value of the loonie vs. the U.S. dollar, here is a snapshot of its decline over the past few years.

 

The Decline of the Loonie:

Value of the Canadian Dollar vs. U.S. Dollar

Past Two-and-a-Half Years

DateLoonie = $
Current (2-26-15)$0.80
Six Months Ago (8-26-14)$0.91
One Year Ago (2-26-14)$0.90
18 Months Ago (8-26-13)$0.95
Two Years Ago (2-26-13)$0.97
Two-and-a-Half Years Ago (8-26-12)$1.01

Source: xe.com; prepared by NAJ

Japan is Top Country Brand for 2014-15, USA is 7th

Despite its economic woes of late, Japan is received well abroad; for the first time in the ranking’s history, it has earned first place in the annual Country Brand Index by global brand consultancy FutureBrand. The index measures perceptions of countries around the world according to guidelines similar to those used to evaluate the strength of various consumer brands. (In “other findings” section of the country brand report, FutureBrand said that New York, London and Beijing will be the most influential global cities.)

Seventy-five countries were reviewed in this year’s ranking process, with 22 meeting the criteria laid out for a “country brand.” The FutureBrand report said that, “to qualify as a ‘country brand, people need to want to consume your products and services and prefer you as a place to live and learn.”

A key finding in the research that led to the ranking reveals that when respondents rank a country highly as a brand, it increases the likelihood that they will “visit, recommend and do business with it” than other countries on the list. Other findings include the following:

  • Awareness alone does not make a strong country brand.
  • Country brand strength is connected to how many consumer brands you are known for.
  • Strong country brands are seen to have expertise across multiple consumer categories.
  • Country brands have most momentum in technology, innovation and sustainability.
  • An influential city is not enough to make a strong country brand (but it helps).

Top 20 Country Brands

1. Japan11. New Zealand
2. Switzerland12. UK
3. Germany13. Finland
4. Sweden14. Singapore
5. Canada15. Iceland
6. Norway16. Netherlands
7. USA17. France
8. Australia18. Italy
9. Denmark19. UAE
10. Austria20. South Korea

Source: FutureBrand

Other findings from the FutureBrand Report include:

  1. Awareness does not make a country brand: For example, Italy enjoys higher awareness levels than Japan (89 percent compared to 84 percent) but is seventeen places lower in the rankings. \
  2. Country brands are associated with consumer brands: On average, respondents demonstrated awareness of a larger number of consumer brands across more categories for the 22 country brands. For example, Japan elicited associations with Toyota, Nintendo, Honda, Sony, Toshiba and Panasonic.
  3. Country brands are seen to have expertise across categories: France is most strongly associated with Fashion (65 percent), Germany with Automotive (77 percent) and Japan with Technology (78 percent – the highest score of a country in a category).
  4. Country brands have most momentum in technology, innovation and sustainability: Top country brands are seen to have more momentum in technology and innovation or environmental friendliness than political, economic or cultural significance.
  5. New York, London and Beijing will be the most influential global cities: There is often a correlation between perceptions of city influence and country brand strength, but not always. The ranking of the twenty most influential cities does not include any in Norway or Denmark – both top ten country brands. And seven of the most influential cities are not in the top twenty country brands.
www.activeamericachina.net
www.activeamericachina.net

Growth Market Travelers Have Money, Will Visit, Will Spend

Erin CummingsGiving an up-to-date statistical portrait to the changing profile of the USA’s international visitors to delegates at NAJ’s recent RTO Summit West in Marina del Rey, Calif., Erin Cummings, president and CEO of the San Francisco-based tourism research and marketing company, Destination Analysts, explained that visitors to the U.S. from China, the soon-to-be top overseas source market for the USA, also intend to spend more than any other traveling population has ever spent.

The note on China was just one of a number of data points presented by Cummings; the numbers came from her company’s recent work, The State of the International Traveler Study, whose results were drawn from an online survey of a random, representative sample of likely international travelers in a dozen countries contributing the highest visitor volume to the USA: Canada, Mexico, the UK, Japan, Germany, Brazil, China, India, S. Korea, Australia, France, Italy and Russia. (All the national surveys were conducted in the native language of each country.)

Destination Analysts tables showing the percentage of those showing the intent to travel in the next year, as well as those who expect to spend more show the following:

slide 5

 

Perhaps the most reassuring of the data sets presented by Cummings was that which shows the popularity of the U.S. as a travel destination; i.e., the respondents in a solid majority of top international markets pick the United States as the destination they would most like to visit.

slide9

 

At least as encouraging to those who already market to, or plan to market to, the key countries of Brazil, China and India are the numbers showing that about two-thirds of those surveyed in each of the three markets are “very likely” to visit or “will certainly visit” the U.S. in the next two years.

slide 10

 

And when it comes to the experiences important to the traveler from the select dozen countries, more than two-thirds consider visits to famous and iconic American landmarks and attractions, as well as sightseeing in U.S. cities “important” or “very important.”

slide13

Finally,   show that the group tour is still a staple among travelers, especially among the growth markets of Brazil, China and India.

slide 15

 

Here is contact information for those who wish to know more about Destination: @DA_Research, @ErinCummings, DestinationAnalysts.com

What is a Receptive Tour Operator (\ri-ˈsep-tiv\ˈtu̇r\ˈä-pə-ˌrā-tər\)?

Receptive OperatorHere is How to Educate Your Revenue Manager with an Answer: Using NAJ’s RTO Summit West in Marina del Rey as a both a forum and opportunity, NAJ’s founder and CEO, Jake Steinman, launched a day-long series of presentations, seminars and panel discussions with a presentation of his own: “Educating the Clueless Revenue Manager.” Predictably, the target of the lesson was not in attendance, but the message might get through, nonetheless, because of the presence of hotel and DMO sales professionals whose goal is to bring visitors to destinations and its hotel properties year-round.

Steinman’s “RTO 101” offering covered the following points: What RTOs are; The RTO Landscape; RTO Statistics; Pros and Cons of Working with RTOs; and How it Works.

What is a Receptive Tour Operator (RTO)? The straight definition. An RTO is:

  • A B2B gateway to international visitors/travelers through the trade
  • A wholesaler to wholesalers and travel agents
  • A financial intermediary between U.S. suppliers and international wholesalers
  • A hotel room aggregator for resale via overseas travel agents

RTOs offer:

  • FIT online booking systems
  • Escorted group tours
  • Fly-Drive programs
  • M.I.C.E. tour programs
  • Meet and greet and ground servicesSteinman broke down the types of RTOs into four subsectors—there are: bedbanks; traditional “Legacy” receptive; subsidiaries; and niche or regional businesses. Broken down, the numbers in these subsectors are as follows:11 tour 

    Group business is still what RTOs are about.  And a breakdown of that business for 2013—the year for which complete data are available—is as follows

    16tour

  • Their Share of the International Market: Steinman advised RTO Summit delegates that the two numbers that sales and marketing professionals can point to are those showing the share of total room nights sold. Based on NAJ’s proprietary data—the figures that have been provided to NAJ since 2007 from the top receptive tour operators in the USA—receptive tour operators are responsible for about half, plus or minus a few percentage points, of total group nights and total overseas leisure nights sold internationally. (The data are compiled into NAJ’s Trax™ Report, which is developed from reports by 11 receptive tour operators that, collectively, book more than half of the international room nights sold for U.S. hotels.)20tour21tour
  • 21tourUntitled 

    Strong and Steady Growth: During the period for which NAJ has gathered data on the room sales registered by RTOs, the destination-by-destination breakdown shows solid improvement. In a sample of 19 destinations comprising small, medium and large-size destination markets, the mean Compounded Annual Growth rate in the sample markets from 2007 to 2013 was 40 percent.

    Advantages and Disadvantages of Working With Receptive Tour Operators—Advantages:

  • The RTO assumes currency and financial risk of collections
  • The RTO delivers business during off-peak times
  • The RTO has access to international groups and M.I.C.E.
  • The RTO requires issuing relatively few contracts
  • The RTO moves distressed inventory at higher yields than OTAs

Advantages and Disadvantages of Working With Receptive Tour Operators—Disadvantages:

  • The RTO is just another middleman
  • The RTO deeds rates 18 months in advance (in the case of traditional operators/national operators)
  • There is the perception of the RTO’s business as low-yield tourism class business (rarely true)
  • The RTO ‘s tiered rate discount can seem unnecessary in strong economy
  • Sales from traditional brochure wholesalers can take 2-3 years to materialize

Finally—How it All Works as Part of the Distribution System:

33tour

 

In sum, explained Steinman, DMOs and travel suppliers have to think of the receptive tour operator as their international distribution team and consider themselves as the RTO’s travel product resource. “It’s a win-win relationship,” he said, urging sales and marketing executives to make the case for the relationship to their revenue managers, who never seem to spend face-to-face time with their RTO partners.

Top 25 U.S. Beaches for 2015 Named

siesta-key_beachHere is the list of Top 25 Beaches in the U.S. The list comprises the results TripAdvisor’s annual Travelers Choice Awards, which are based on TripAdvisor reader reviews and other factors.

 Top U.S. Beaches 2015

Beach and RankLocation
1. Siesta BeachSiesta Key, Fla.
2.. Saint Pete BeachSaint Petersburg, Fla.
3. Ka’anapali BeachLahaina, Hawaii
4. Wai’anapanapa State ParkMaui, Hawaii
5. Pensacola BeachPensacola, Fla.
6. La Jolla CoveLa Jolla,Calif.
7. Kailua Beach ParkOahu, Hawaii
8. Clearwater BeachClearwater, Fla.
9. St. Augustine BeachSt. Augustine, Fla.
10. Beach at Panama CityPanama City, Fla.
11. Hanauma Bay Nature PreserveHonolulu, Hawaii
12. Poipu Beach ParkPoipu, Hawaii
13. Ogunquit BeachOgunquit, Maine
14. Hunting Island State ParkBeaufort, S.C.
15. Manini’owali Beach (Kua Bay)Kailua-Kona, Hawaii
16. Race Point BeachProvincetown, Mass.
17. Newport BeachNewport, Calif.
18. Fort Myers BeachFort Myers,Fla.
19. Coronado Municipal BeachCoronado, Calif.
20. Hollywood BeachHollywood, Fla.
21. South BeachMiami Beach, Fla.
22. Hanalei BeachHanalei, Hawaii
23. Carlsbad State BeachCarlsbad, Calif.
24. Crystal Cove State ParkLaguna Beach, Calif.
25. Ocean City BeachOcean City, Md.

Source: TripAdvisor

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