Search Results for: Travel Weekly Power List

Is it Possible? New York City International Traffic was Really UP Last Year

China Rises to Position of NYC’sNumber 2 International Source Market: During the first quarter of 2017, it had almost become written in stone that, for a variety of reasons—the most commonly mentioned one being a dislike of U.S. President Donald Trump—visitation to the United States from Mexico, Canada and overseas source markets would decline by at least single-digit percentages. Such was the case with New York City, the top international gateway for visitors to the U.S., with one widely reported study indicating that international visitation would likely be off by 300,000 vs. 2016.

Wrong. While the news did not receive the attention that did the projections of decline, there was actually an increase of more than 3 percent in international visitors in 2017 to the USA’s largest and business international gateway. Moreover, says NYC & Company, in its recently released 2017-2018 Summary, international visitation, is projected to enjoy another increase of more than 3 percent in 2018.

As Reported by NYC & Company, Highlights of 2017-2018 Summary:

• Despite strong political headwinds facing our industry at the start of 2017, New York City welcomed a record 62.8 million visitors last year. This marks the eighth consecutive year of visitation growth. Domestic travel increased by almost 2 million person trips, from 47.8 to 49.7 million, a 3.9 percent gain over 2016. Particularly strong performance in the overnight visitor market helped push these results up.

• International visitors lagged at the start of the year, but ultimately surpassed the 13 million mark—a 3.4 percent increase—driven by regional growth from Asia and South America, together with a turnaround from Canada. (It is important to note, however, that as forecast, several key markets like the UK, Germany, Scandinavia, the Netherlands and the Middle East were down due to a variety of challenges including currency exchange rates and concerns about the welcoming nature of the U.S.)

• Forecast for 2018: The city should see another year of growth in 2018 as global economic conditions support increased domestic and international travel. The current forecast anticipates 65.1 million visitors (Up 3.7 percent year-on-year), as domestic visitation breaks the 50 million mark with 51.4 million visitors, and international visitation breaks another record with 13.7 million visitors. Domestic visitation is forecast to continue at an above 3 percent growth rate in 2018. High consumer confidence levels, low unemployment and rising wages are expected to increase domestic demand for travel to the City. International travel growth is expected to outpace domestic visitation growth if current global economic and policy conditions hold.

How Has the Ranking of Top 20 UK Tour Operators Changed This Year?

The UK’s Civil Aviation Authority (CAA) has released the latest figures for Atol license holders in the UK travel industry following the latest April renewals (some companies renew six months later, in October) and they suggest that, overall, sales of tour packages should likely increase overall outbound travel—but not necessarily to the U.S.

Some notes on the renewal figures for the Top 20 tour operators, based on seats to be sold, include the following (For purposes of comparison, we’ve posted the Top 20 list for last year below.).

The Top 3 tour operators, TUI Group, Jet2holidays and Thomas Cook continue to dominate the list in terms of number of licensed seats. (Jet2holidays has surpassed Thomas Cook for the Number 2 position.)

TUI has grown its Atol license total by just under one percent, from 5,344,076 to 5,386,845, adding more than 40,000 more passengers to its annual total since April 2017.

Jet2holidays, an package tour holiday provider with NYC as it’s only US destination, as increased its Atol license inventory by nearly a third (29.2 percent) vs. last April—from 2,272,178 to 2,936,420.

Thomas Cook is listed as the third highest Atol holder, with a total of 2,389,227, which is down 2.5 percent vs. 2,450,181 at the same time last year.

Online travel agent Expedia, with 1,416,227, reduced its numbers by 0.4 percent while On the Beach, a UK OTA, On the Beach, added more than 200,000 seats to its license, going from 1,100,951 to 1,302,261.

British Airways Holidays saw its numbers drop nearly 12 percent—from 893,000 to 786,000, while Love Holidays parent We Love Holidays jumped from 9th on the list last year to 6th this year, more than doubling its numbers from 400,093 to 804,618.

Loveholidays.com is licensed to carry 804,618, up 27.5 percent year-on-year), has now overtaken British Airways Holidays (786,000, down 12 percent going from eighth to sixth place after more than doubling its capacity in just two years.

Meanwhile, Kuoni, which renews this fall, indicated that it had changed the name under which it renews its Atol. Last year, Kuoni’s license at this time of year was for 84,688 passengers. This year, reporting under the name of parent company Der Touristik UK, it was 55,019.

Virgin Holidays also moved into the Top Ten, ahead of Southall Travel, with its numbers increasing from 337,623 to 388,249.

UnionPay v Alipay v WeChat Pay: An Objective Comparison

What delegates to NAJ’s recent Active America China Summit in Atlanta heard from Daniel Crain, managing director of global ready education for the BRIC Marketing Group is that a case can be made for tying into any or the component(s) of the “Trifecta” of payment systems: China’s UnionPay bankcard/credit card; Alipay; and WeChat Pay.

Each of the three have user numbers in the hundreds of millions and each has a suite of services to which a travel supplier can tie into. What might tilt one toward WeChat vs. the other two is the penetration of the WeChat into so much of its Chinese user based through the range of activities, such as messaging, that are a part of a user’s every day life.

We’ve assembled some of the key elements of Crain’s presentation and augmented it with information we gathered on our own to illustrate what the Trifecta is all about.

The Trifecta …

China Union Pay:Founded in 2002, the Shanghai-based company’s bank card has grown exponentially in its number of users: In an article last summer on finextra.com, it was reported that, according to RBR’s Global Payment Cards Data and Forecasts to 2022 study, the continued rapid expansion of the Chinese cards market has helped UnionPay to increase its share of cards to 43 percent in 2016, and extend its lead over Visa and Mastercard. UnionPay has been the largest scheme globally for card numbers since 2010 and, by the end of 2016, there were more than six billion UnionPay-branded cards in circulation. RBR also found that UnionPay, Visa and Mastercard collectively account for 80 percent of cards worldwide.

AliPay: It was founded in established in 2004 in Hangzhou, China in February 2004 by the Alibaba Group and its founder, Jack Ma—China’s richest person. Alipay moved its headquarters to Shanghai, although its parent company, Ant Financial, remains Hangzhou-based. As far as we could determine, Alipay, which overtook PayPal as the world’s largest mobile payment platform in 2013 had about 450 million users at the end of 2016.

WeChat Pay is a digital wallet service for users of WeChat, which was founded in 2011. It is owned by Tencent, China’s largest technology company. WeChat has grown exponentially and at latest count the number of WeChat users was near a billion. The number who use WeChat Pay was around 340 million at the end of 2016.

Usage—Crain expands upon the ways in which the three payment systems can be used:

—In terms of various  uses, WeChat Pay closely follows AliPay. It can be used to pay bills, buy goods online and offline, order tickets, grocery deliveries, hail a cab and do just about everything else. In addition, WeChat Pay powers the rapidly growing WeChat ecosystem. In addition, WeChat Pay powers the rapidly growing WeChat ecommerce ecosystem, making buying and selling products with WeChat online stores a smooth and secure experience.

—Moreover, WeChat continues to expand its services to various financial products—from investment funds to insurance, allowing users paying for that wth WeChat Pay and from within the app.

—In offline settings, WeChat Pay works pretty much in the same way as AliPay—using a system-generate dynamic QR code. In fact, both systems have become so popular that it’s a common site to see WeChatPay and AliPay QR codes next to each other at points of sale.

—Although Union Pay issues credit cards, it is better known as China’s primary debit card provider. It is always linked to a user’s bank account and requires using the physical car to process a transaction. Up until the introduction of the QR payment systems and a mobile app, this was the only way to go to process a payment.

—UnionPay is still the most commonly accepted payment in China with nearly every business being the network’s member. Most government services also accept Union Pay.

—Unfortunately, the reliance on magnetic strip and the security PIN makes Union Pay a less secure payment method.

For a destinations or travel suppliers who want to know more before committing to a partnership with UnionPay, AliPay or WeChat Pay, they should consult with one of the firms that specialize in the Chinese market before determining the level of commitment they want to make before venturing into this area of partnering and promoting.

New Airline Service

—Air China has launched twice-weekly service from Beijing to Panama City via HoustonIntercontinental. The Chinese carrier was already operating direct to Houston Intercontinental from Beijing, a route it currently serves with five weekly flights on Tuesdays, Thursdays, Fridays, Saturdays and Sundays. On Thursdays and Sundays, the aircraft will now operate Beijing-Houston-Panama City-Houston-Beijing, with seats also available to purchase on the sector to and from Houston Intercontinental and Panama City

—Just prior to IPW next month (May 19-23) in Denver, Norwegian on April 9 launched service connecting Paris and Denver. The new service will operate twice-weekly, (Mondays and Fridays) between Paris De Gaulle.

—Delta Air Lines began a daily service between Orlando (MCO) and Amsterdam on March 30th. The route is Delta’s only transatlantic service from the Florida airport. TUI Airlines Netherlandscurrently provides a twice-weekly (Mondays and Fridays) service between Amsterdam and Orlando Sanford.

—Beginning June 1st, Canada’s Westjet will, for the first time, provide service between Paris-Charles de Gaulle and Halifax, Nova Scotia . The Paris-Halifax line then continues to Calgary, Alberta. For its first year of operation, it will be seasonal, from June 1 to October 27.

—On March 27, British Airways launched service from London Gatwick to Las Vegas. The flight from Gatwick to Las Vegas marks a return to a route that the airline last operated in 2016. It faces direct competition from Virgin Atlantic Airways which provides daily flights between the two airports.

—Norwegian began non-stop service on 27 March from London Gatwick to Austin. The new route to the U.S. launched just two days after the airline launched flights to Chicago O’Hare. The new service to Austin will operate year-round, three times weekly.

Future of MICE: Beds and Meeting Space Coming to Airlines in 2020

We used to joke about such things, but Airbus and Zodiac Aerospace—the global aerospace equipment and systems supplier—are planning on creating sleeping pods, lounges and meeting space to put in the cargo holds of aircraft by 2020.How? Carriers will be able to include pre-constructed beds that will be separate from the main economy and business class seating areas.

There will also be bookable meeting roomspace, lounges and areas for children to play. Instead of taking space from established seating spaces, Airbus and supplier Zodiac Aerospace will put the areas below the usual seating classes—in the cargo hold. For more on this possibility, which was first announced last week in travel trade publications in Europe and elsewhere, read here:

http://www.wired.co.uk/article/airbus-sleeping-pods-naps-cargo-hold-zodiac-330

Celebrating IPW at 50 Years: What Was Your Most Memorable Moment?

As we prepare to gather in Denver next month for the 50th edition of IPW—the most important event on the inbound tour and travel industry’s calendar—the INBOUND Report shares recollections of and about the event from those who have been a part of IPW (formerly Pow Wow) over the years. This week, we feature the recollections of two veteran tour and travel industry professionals:Jackie Ennis, head of international marketing for the Massachusetts Office of Travel and Tourism, and Jorge Franz, vice president of international sales and tourism at the Greater Houston Convention and Visitors Bureau.

Jackie Ennis: “IPW in Las Vegas. I had never been to Las Vegas before. As I stepped into the elevator from my hotel to go down to the show, a nicely dressed woman came out of the elevator and proceeded to vomit into her hands. Horrified, I ran back to the room to get the poor girl a towel and I got the elevator, the door clicked shut and I missed the moment.” Welcome to Las Vegas.

Jorge Franz: “Ten years ago, I was so desperate to get CityPass to choose Houston as their next city,  I followed Mike Gallagher (co-chairman and co-founder of CityPass) into a bathroom and said ‘You need to come to Houston to check us out’ He said, ‘If I go will you leave me alone?’ And he finally came. The results have exceeded our wildest expectations.”

At a Glance” Illinois’ Heritage Corridor

For full information Click Here

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

Less than a week after it merged with The Mark Travel Corporation, Apple Leisure Group has named Lynn Torrent as its new executive vice president and president of distribution. In this new role, Torrent will report to John Hutchinson, president of Apple Leisure Group, and will be responsible for all aspects of Apple Leisure Group’s tour and destination management businesses. Before joining Apple, Torrent came to apple from Carnival Cruise Lines, where she had most recently served as executive vice president-commercial operations.

Edison Rivas has been named regional market manager for the Dominican Republic, Mexico and Latin America for Secret Escapes in New York City. Before joining the company, Rivas held senior sales positions in New York for some well-known receptive tour operators including JacTravel, GTA and Tourico Holidays.

NYC & Company has announced the selection of Brands Travel as its new representative office in Mexico. Based in Mexico City, the agency will lead travel trade, communications, marketing, and MICE efforts across Mexico, New York City’s ninth-largest international visitor market. The account is led by Brands Travel CEO Carlos Ulibarri, with Carlos Baruki and Mauricio Castillo overseeing trade activity, and Rodrigo Medina managing public relations and marketing efforts in market.

G2 Travel is expanding its team for the Western US and Canada. The company has hired Hiromi Celis (left) as destination manager for Las Vegas and the Nevada Region.  Celis was previously business development director of CHD, Inc. (Chinese Host). Prior to that, she worked at companies such as The Mirage, Treasure Island and AlliedTPro. Celis will be based in Las Vegas. Stella Wang, has joined G2 as the destination manager for the Mountain States in an effort to expand G2 Travel’s supplier partnerships throughout the popular National Parks areas.Wang has over 10 years of experience in the travel industry and comes from a strong background in hotel sales and with tour operators such as ATI and Destination America. Wang is based at G2’s Los Angeles office.

Belinda Vazquez, currently director of Ireland and ancillaries for TUI UK, has been named the company’s new retail director for TUI UK & Ireland. She starts her new job on May 1st.She will head up TUI UK & Ireland’s retail division and team across its 600 stores, as well as take responsibility for the company’s commercial relations and retail business support functions.Vazquez, who is a 20-year veteran of TUI, replaces Mark Bather.

Philipp Holzinger, now head of key account management at Thomas Cook Germany, has been named successor to RüdigerBlaek as senior sales manager, who is retiring after more than 40 years with the company. Holzinger will begin his new role on July 1st.

TUI Germany’s cultural holidays specialist Gebeco is changing its sales and marketing structure. In the future, the former sales manager Jens Hulvershorn(right) will be responsible for marketing, while the sales department will be headed by BjörnOberländer. The classic distribution and the special group distribution have combined into one unit. In the future, the sales department will also be responsible for stationary travel agency sales as well as new and digital distribution channels.

Ali Brewer, manager of membership sales and promotions, American Bus Association (ABA)has left the association after serving it for eight years. She started at ABA as an intern. In an online post to friends announcing her move, she did not indicate what her future plans are.

An Appeal from the Editor-in-Chief:

“I don’t know if you are in a position to do this. Might you be able to share this story? It’s about Victor Yu.  He is a seasoned veteran in the tourism industry having been employed at CYTS for Canada’s operation for a number of years and  now for the last four years and he is the sales manager at the Sheraton Vancouver airport hotel.  He specializes in Asia Pacific (China) business development. This is the hotel that hosted Active America China in Canada. He is well loved. Gentle. Kind. His wife gave birth last Sunday to twin daughters.

ITB Report: Are German operators suffering from PTSD—President Trump Stress Disorder?

On the first day of ITB, the trade publication FvW Daily show contained news that demand from the German market to the USA had dropped dramatically as the Nuremburg-based research company GfK reported that bookings to the USA in 2018 has plummeted by 20 percent!  Basically, the market seemed to be suffering from a form of PTSD—President Trump Stress Disorder—that, according to conversations we had with over 30 DMOs, German tour operators, receptive operators and suppliers, has resulted in an ITB that, as one hotelier told me, “the elephant in the room is really an ass.”  Everyone knew what he meant. From last week’s INBOUND, here is the word cloud from a question that San Francisco-based Destination Analysts asked German consumers to describe one word that came to mind about Donald Trump.

.

Surprised that there was so much animosity toward the USA, we asked one operator “Why?” He told us that, although they did not live through the period, they feel that this is what could have been like in 1930.  “We have a sensitivity in that regard,” he said

Regardless of what you hear, read or see about American politics, “We Welcome You.” Everyone from Brand USA, US Travel and DMOs and tripped over themselves in often redundant ways to let operators and media know that they were welcome to the USA.  Only AmericaTours International CEO Noel Irwin Hentschel, roaming the floor with what appeared to be a red yoga mat, but was actually a piece of carpeting, used a novel approach. Every time a client entered her booth, she would unfurl it and say, “We are rolling out the red carpet for you…” welcoming them to America.

Basically, USA sellers at ITB were in damage control mode—reiterating to anyone who would listen that they are welcome to the USA and were using personal relationships to maintain existing business. Germany’s chancellor, Angela Merkel, opened ITB with a charm offensive as she implored the travel industry to adopt more sustainable tourism products in the future and how travel had the opportunity to eliminate prejudices. Leveraging the strength of the country’s techno-music roots, she suggested that one way to attract more millennials to the country would be increasing the number of electronic music festivals.

2017 was a challenging year for German travel to the USA. As Tilo Krause, owner of Canusa, told INBOUND, Germany is an early booking country and during the fall of 2017, when travelers begin to book their US trips, the strong dollar; hurricanes in Florida and Texas; wildfires in California; and our administration’s anti-immigration policies were all dominating media coverage during a period that was usually a harbinger for 2018 later bookings.  By the end of the show some distinct trends seemed to emerge.

1. The U.S. has fallen out of favor. Short-haul beach destinations such as Turkey and Egypt, which had experienced drastic declines in German travel last year after terrorist attacks spooked tourists, have rebounded strongly with tour operators.
2. Large operators bet against the drop in the U.S. dollar. The large operators such as TUI and DER, both of which hedge their downside by purchasing currency futures up were caught with higher pricing than the OTA’s and smaller agencies—once the U.S. dollar began to soften in late 2017. This affects mostly New York and Miami, where major operators now have direct contracts with hotels. Small niche operators and American specialists were less affected than others as they usually had both wholesale and direct sell options to consumers. The specialists that we met with such as Canusa and America Unlimited told us that their USA business was slightly down but Canadian bookings were increase to the point where they are nearly even with the previous year overall.
3. Receptive operators stress service and trust as competitive advantages. Many of the receptive tour operators were unsure as to how the merger last year of Tourico and GTA with Hotelbeds was going to affect them in the future—especially since static FIT rate structures have been discouraged by chain hotels who are compelling them to directly connect to their own booking systems, leaving them with trusted relationships with groups and a growing importance of service. Hotel aggregators such as the newly constituted Hotelbeds, JAC Travel, Miki Travel and others now have a formidable competitor as Expedia expands their wholesale division in Europe.
4.  The U.S. is definitely losing market share, particularly with special groups. We spoke with several small, niche receptive group operators whose bookings are off by as much as 30 percent. “Basically, our German clients have many other destination options and it’s their way of expressing their feelings about the USA…they’re boycotting us,” one operator complained.

Other news from the Show:

• Brand USA consolidates European Representation with one company, Hills Balfour. While several American partners failed to understand how one representation company can cover all of Europe, others understood that was a way for Brand USA to consolidate representation in a mature market so they have to manage one entity and concentrate their development efforts to emerging markets such as India and China that may have greater ROI capabilities. Hills Balfour, meanwhile, will probably sub-contract with other representation entities to cover the market.  Also announced at ITB, MMGY Global, acquired Hills Balfour and will now be able to offer European clients representation, research and marketing services.
• Buyer traffic at the show was strong the first day when the most important operators were present, continued to taper off the next two days. By the afternoon of the third day, half the booths and counters seemed to be empty as more and more buyers deserted the show.

(It’s hard to understand why any companies or destinations that do not have long-standing relationship in place, continue to invest in these shows without someone on the ground assisting with appointments. Even those that occupy counters within states were generally idle more than they were busy. )
• We caught up with Brian Said, vice president, global development, for Choose Chicago, who told us about a couple of recent developments in Chicago:
—Entertainment Cruises will be adding a glass enclosed dinner cruise along the Chicago river that will launch nightly…rain or shine.
—Hilton is developing its first “triplex” hotel near McCormick Place convention center in Chicago. It will be the first hotel that contains three corporate brands within the same structure: Hilton Garden Inn, Hampton Inn and home2suites. With so much hotel development going up near the convention center, it’s siphoning off convention business from downtown leaving downtown developing new hotels with a leisure focus.

• Alfred Gonzalez, formerly with Brand USA, Visit Florida and the Ft. Lauderdale CVB, has struck out on his own as AG Hospitality. One of his first efforts is partnering with Terry Selk, executive director of the Yosemite/Mariposa County CVB, on a “Mexico Cup” golf outing and schmooze fest  where tour operators and media and suppliers network and bond over five days of golf.

Latest NTTO Arrivals Data Awash in Red

We Said Last Month that it couldn’t go on like this; it didn’t. It got worse.

The U.S. Department of Commerce’s National Travel and Tourism Office (NTT0) last week released preliminary data on international arrivals through the first three quarters of 2017 which suggest that, if the global market performance of the U.S. as a destination continues as it did through September, it will fall short of the number of international visitors who came to the U.S. in 2016—meaning two straight years of decline.

Just about every measure in the monthly arrivals report (for September 2017) just released by the U.S. Department of Commerce’s National Travel and Tourism Office (NTTO) was the same as, if not worse than, it was for the previous month.

In terms of overall international visitor arrivals, the trend line established in the first three quarters of 2017 suggest that it will continue through the end of the year. In addition, the fourth quarter of the year usually produces the second-lowest quarter for the number of international visitors the United States. It is very unlikely, then, that the fourth quarter of 2017 will produce a turnaround sufficient to make the year a better one than 2016.

Europe Bouncing Back? Midst the falling numbers in most world regions, the oldest overseas source market, Europe, is doing fairly well. Of the five core markets in the Eurozone—Germany, France, Italy, Spain and the Netherlands—all but Germany showed small, single-digit percentage increases through September 2017. And Germany was almost at the same level as it was the year before. Perhaps this is because of a slow, but steady increase in the value of the euro vs. the U.S. dollar, which was trading at $1.04 in December 2016, but lately has been at or near $1.24—a 19 percent increase.

IPW 50—What’s Your Most Memorable IPW Moment?

Editor’s Note: Beginning with this issue, the INBOUND Report shares recollections of and about the event from those who were a part of IPW—formerly Pow Wow—over the years. This week’s memory comes from Jorge Herrera, former vice president of tourism for the Dallas Convention and Visitors Bureau, (now Visit Dallas,) who attended the very first IPW in 1969 at the Commodore Hotel in New York City. There were 69 travel suppliers who met with 67 buyers from 10 European countries at the event. At the time, he was director of agency and tour sales for Hilton Hotels. He later worked for Fairmont Hotels before joining the Dallas bureau in 1987. While with Dallas, he was a key part of the team that brought IPW to Dallas in 1988 and again in 2000. He left the CVB several years later, having attended IPW more than 30 times.

“I think that the first Pow Wow was in New York City at the Commodore Hotel in 1969. I can’t tell for sure. At that first Pow Wow we had no idea of what we needed to bring to the meeting … I don´t remember having any group rates or FIT rates. We were just pushing brochures of our hotels. While working at the Fairmont Hotels in Dallas, I pushed and was successful in securing the Pow Wow for Dallas in 1988 and later on while at the bureau we secured the Pow Wow for the year 2000.

“I moved to Cartagena in 2012 and I am now living in Bogota as of a year ago. I am close to my family and am enjoying this stage in my life but I do miss my Dallas and all my friends … I always believed that tourism may be the ultimate opportunity for understanding and World Peace and that the concept of Travel was the Ultimate Freedom.”

Brazil’s Senate Approves Open Skies Air Deal with US—30% Bump in USA-Brazil Traffic Expected

Measure would Strengthen Dominant Position of LATAM airlines and American Airlines.

Flights between Brazil and the United States are expected to increase by 30 percent as a result of Open Skies, says Embratur (The Brazilian Tourism Board—Brazil’s equivalent of Brand USA). This was one of the first responses to the March 7 approval by Brazil’s Senate of an Open Skies agreement between Brazil and the United States. The legislation was sent on to President Michel Temer, who was expected to sign it into law. (The Open Skies treaty was signed in 2011 but had faced opposition for the next six years from lawmakers lobbied by local airline interests in Brazil who feared competition from U.S. carriers. Those who stressed its national economic benefits eventually prevailed.)

The agreement between Brazil and the United States opens up airline slots between the two nations, allowing an unlimited number of flights between the two nations; one effect of the deal is that it cleared the way for a partnership between American Airlines Group Inc. and the LATAM Airlines Group. In January 2016, the two carriers had applied for permission to form a Joint Business operation. Such an agreement was a requirement for the U.S. Department of Transportation to approve the business deal between American Airlines and LATAM, the two largest carriers in the region, which would see them coordinating schedules and offering more connections.

In a related move, Brazil’s government last September approved a plan by American Airlines to build a maintenance center at Sao Paulo’s Guarulhos Airport, a $100 million investment that will help the carrier consolidate its South American operations.

Although headquartered in Santiago, Chile, LATAM—it is the result of a 2012 merger between Chile’s national carrier, LAN Chile airlines, and Brazil’s TAM airlines—is the dominant carrier in Brazil, where it has offices in São Paulo. In fact, according to consumer surveys conducted the past two years in Brazil, the name “TAM” remains the most popular airline brand. LATAM also has as subsidiaries LATAM Colombia, LATAM Ecuador, LATAM Paraguay, LATAM Argentina and LATAM Perú.

For Brazil, the Open Skies agreement is expected to lead to increased interest in Brazil as a destination by the U.S. airline industry in the potentially huge Brazilian market. The number of Americans traveling to Brazil has also increased 70 percent since Brazil introduced an electronic visa system in January, according to preliminary data gathered by the Brazilian government.

From the perspective of the U.S. inbound tourism industry, the Open Skies agreement can only help improve a dismal situation in which arrivals from Brazil to the United States have fallen 30 percent from 2014 to 2017, according to the latest figures supplied by the U.S. Department of Commerce’s National Travel and Tourism Office.

MMGY Global Grows even more  Global

Kansas City-headquartered MMGY Global, which positions itself as the world’s largest integrated marketing company specializing in travel and hospitality, announced that it has acquired the high-profile British travel and travel and tourism public relations firm of Hills Balfour. Terms were not disclosed.

MMGY, which is headed by Clayton Reid, was founded in 1981. It grew steadily over the years, with Reid continuing to take part in the travel and tourism community in Kansas City along the way. (He is an emeritus member of Visit KC’s board of directors.)

In 2011, MMG, as it was then known became a national powerhouse with global reach when it merged with the Y Partnership, the brand used by what used to be Yesawich, Pepperdine, Brown & Russell (YPB&R), the Orlando-based firm that was led by Peter Yesawich, a well known tour and travel industry figure who is a much sought-after speaker and authority cited by the news media. YesawIch is listed as a partner in MMGY Global, which counts among its clients such familiar destinations as Cleveland, Bermuda, Visit KC, Beaches of Fort Myers & Sanibel and Destination DC.

In February 2016, Peninsula Capital Partners and Fine Equity Partners made an equity investment in MMGY, and a series of mergers and acquisitions have taken place since then, including MMGY Global’s acquisitions of DK Shifflet & Associates, Nancy J. Friedman Public Relations, Myriad Marketing and Spring O’Brien, as well as that of Hills Balfour.

Amanda Hills, Hills Balfour founder and chief executive, will remain with the business, overseeing the London and Dubai firms’ overall operations. She will assume the new role of president, HB and MMGY London and Dubai, partnering with the MMGY Global senior management team to increase the agency’s European presence.

Commenting on the acquisition, Reid said: “Expanding our presence beyond Madrid, Hills Balfour is the right step into Europe for us, and we see our foothold in the UK market as an excellent base to expand across the key European and Middle East tourism markets.

“Their (Hills Balfour’s) reputation in-market, along with an exceptional senior management team and a loyal and long-standing client base, made our merger of operations an easy one.”

German Trade Sees “At Least a Stable Year for the USA”

If one looks at the volume of German arrivals to the USA with a longer perspective than that of two or three years, one will see that the market, with zig-zag annual totals going up and down, back to 1996—this is when Germany sent almost 2 million visitors to the United States—it shows that the market is basically the same as it was for 20 years. Last year, 20 years after 1996, the number of German travelers who came to the U.S. totaled 2,037,000—a 1.9 percent increase after two decades. To help put this increase in perspective, we’ve prepared the following table.

At ITB last week in Berlin, the German travel trade publication FVW released its Destination Ranking 2018, which gives a region-by-region and major country destination analysis that covers the world. Here are some highlights from its section on North America:

• (There is a) slowdown in the slump of German visitor numbers to the USA. The German market appears relatively stable. Based on the (NTTO) figures up to August, a slight drop to about two million guests appears likely for 2017.This would still be the fourth-best result ever, though.
• Recall that, after the attacks of September 11, 2001, and the economic and financial crises, it took more than a decade to beat the former records from the end of 1990s. In 2014, the two million visitor barrier was broken for the first time; and in 2015 anew record was set with nearly 2.3million German visitors. Under the effects of the weak euro, which made travel spending in the USA significantly more expensive, there was even a double-digit (-10.4 per cent) fall in2016.
• With only a slight decline in 2017, an end of the downturn therefore looks in sight. In addition, the exchange rate situation has calmed down. In the first quarter, the euro has risen significantly to over$1.20.³ This will also have an effect on tour operator package prices in the medium-term. They are relatively relaxed about the situation and expect for 2018 at least a stable year for the USA.
• In comparison with other source markets, Germany–which, by the way, has the highest proportion of business travelers among visitor numbers at 24per cent –has performed relatively well. Among the top ten source markets for the USA, only Canada, South Korea and France have reported growth; all others are showing declines, and quite substantial in some cases. Echoing what the INBOUND Report has suggested, Overall, the USA is therefore likely to close 2017 with another decline, after the slight fall in the previous year, and drop significantly below the level of 75 million visitors.
• The consequences of the downturn are serious. In the USA as a whole, tourism industry revenues declined by as much as 3.3 percent to $4.6 billion up to the end of November.

###

³ INBOUND checked and found that from the first day of ITB 2017 to the first day of ITB 2018, the Euro went from a value of $1.05 to $1.24, an increase of 18 percent.

WeChat Pay – the Mobile Wallet that’s Coming Your Way

WeChat pay is the social media platform that has taken Asia by storm and is slowly becoming a popular tool around the rest of the world as well. WeChat began as a messaging service and was originally compared to Facebook and Twitter, both of which are not accessible in China. But WeChat has quickly evolved to an entire platform that can also conduct business transactions easily and quickly. If you are in the tourism industry, becoming familiar with WeChat, and WeChat pay will give you an advantage in securing more business from the Chinese visitor market.

WeChat basics

As regular readers of my blog know, I love teaching others how to use WeChat. Like any tool, it feels a bit daunting at first but can become second nature pretty easily. And Chinese tour operators are still impressed when they realize you know how to exchange business information through the app. Check out my WeChat basics tutorial and WeChat tips and tricks video to learn how to get comfortable using this in your professional life.

How the Wallet Works
Every WeChat account comes with a wallet. ( At this point U.S. based accounts can’t set up a wallet, but I am sure that will be changing). Individuals can attach bank accounts to their wallet, or a credit card. Credit cards are still a relatively new product in China, so WeChat basically eliminated the need for them by tying a bank account to a form of payment. Why should U.S. vendors consider accepting WeChat pay?

This article says: Silicon Valley-based Citcon provides hardware, a free API, and customer service to U.S. vendors who are willing to take WeChat or Alipay payments from Chinese customers. Chinese tourists simply have to take out their mobile phone and scan their QR code to pay merchants from their WeChat accounts. WeChat Pay’s U.S. expansion makes perfect sense. Tencent can keep traveling users on their platform while tapping into a very lucrative market. Chinese outbound tourism spending reached over $260 billion last year, according to the World Tourism Organization, and there were hundreds of thousands of Chinese students in the United States. Citcon says that it is already working with around 300 merchants including hotels, airports, museums, restaurants, and amusement parks.

The QR code is back?
One of the basic tools in WeChat is the QR code. It wasn’t that long ago that tourism marketers declared the QR code a failed tool and stopped using it in advertising. Well, it’s back with a vengeance on the WeChat platform. There is a QR code reader embedded in the app, and sharing contact information with others is as easy as scanning a QR code. WeChat pay takes it a step further and gives each users wallet a QR code for transactions. The QR code tied to the wallet changes constantly so there is little chance of accessing someone’s wallet.

How common is it in China? Last year I traveled to a historic tourism site outside Shanghai. This gentleman was selling a traditional frozen dessert out of his insulated box. But he took payment only with WeChat pay! So if this very small business accepts mobile payments, you can believe that street vendors, stores, and everyone else does as well!

WeChat pay – an entire e-commerce platform in your pocket
These recent videos will show how ubiquitous this app is:
CBS Video on WeChat pay
China’s Great Leap to Wallet free living

Final Thoughts: Mobile payment options through Apple Pay and Samsung Pay and Android pay do exist in the U.S. So I started adding credit cards to my Apple pay wallet and have started using it when I buy groceries. Not only do I feel cool, but it is helping me get comfortable with using my phone for payments. Add a payment method to your phone and test it out. Then when it’s time for your destination or attraction to start taking WeChat pay, you will already know what mobile payments are about.

Interested in having your destination become WeChat ready? I do trainings that will help your attractions understand the importance of the Chinese market and learn how to use WeChat to build business. Contact me at sally@theattractionscoach.com for more information.
The post WeChat Pay – the mobile wallet that’s coming your way appeared first on The Attractions Coach.

(This article/post appeared first on The Attractions Coach)

NEW AIR SERVICE

• Latvian budget airline Primera Air has announced it will launch flights from London Stansted to Washington Dulles airport just days after revealing that it is ditching plans for a Birmingham to Boston service, which was due to start in June. The airline is also cutting back frequency on its new Birmingham to New York Newark service, which will launch on May 18. Instead, it will fly five times a week from Stansted to Washington, starting on August 22. Fares will start at £199 one way.• Beginning April 26, Norwegian is starting additional twice-daily service using new 189-seat Boeing 737MAX aircraft between Dublin International Airport and Stewart International Airport, which is 70 miles north of Times Square in New York City. A new early morning departure at 8.10 am will be the earliest flight from Dublin to New York, which lands at 10:30 am local time. The flight schedule will give passengers several hours to shop at Woodbury Common Premium Outlets in New York State and depart for Dublin at 8:30pm the same evening.

Travelers from Dublin arriving at Stewart International have the option of direct shuttle bus services into New York City timed to meet Norwegian’s flight arrivals. A new shuttle service will be offered to Woodbury Common for passengers arriving on the new morning flight from Dublin. Shuttle buses departing Woodbury Common will be timed for passengers to arrive at the airport three hours before Norwegian’s evening flight departures from March 24.

Stewart International will be renamed New York Stewart International airport as part of a $37 million upgrade to better handle increased international passenger numbers.

• WOW air, Iceland’s low-fare transatlantic airline, will officially begin service out of New York JFK on April 27. Travelers still have the option to fly out of Newark (EWR) as well, with a total of 20 weekly flights from both JFK and EWR. As of spring 2018, the airline will service 38 destinations across Europe and North America, including Dublin, London, Paris, Berlin, Copenhagen and Tel Aviv.

• On Feb. 28, Norwegianopened its second route between Paris and New York, starting a six times weekly service from Paris Orly to Newark (EWR). The route complements the carrier’s six times weekly operation between Paris Charles De Gaulle airport.

• Also from Norwegian: In the United States, Detroit, Philadelphia, and Minneapolis are among East Coast and Midwest destinations under consideration for eight new A321neo LR aircraft, due for delivery in 2019 for service from 2020. The aircraft may also be used on Middle East routes.

At a Glance: Sonoma County, CA

For full information CLICK HERE

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

G2 Travel has opened its second office in the United States in El Segundo California. Katja Jahn (left) has been appointed head of destination management Western US/Canada and will be leading the growing team out of this office. Jahn was previously with ATI and YMT, responsible for product development. G2 Travel’s U.S. division headquarters is located in New York City where Gary Vetri has been appointed head of destination management Eastern US/Canada, expanding his role within the company. Also,  Leann Visser, formerly operations manager for Kuoni USA was recently appointed general manager. The company was founded by David Babai and seven former managers from GTA in 2012 and will be expanding their custom group receptive operation in the U.S. and Canada significantly.

Marcelo Barone is the new commercial manager of Stella Barros Turismo. A 13-year veteran of the Brazilian tour and travel industry, Barone’s resume also includes a tenure at CVC, where he was manager of products for the United States and Canada. He takes on his new position at Stella Barros with the mission of expanding the brand in Brazil and expanding the number of licensed stores.

Paula Vlamings has been named the new CEO of Tourism Cares. She succeeds Mike Rea, who will serve as an integral partner during the transition process to support Vlamings and the goals of Tourism Cares as senior program advisor. Vlamings, who has broad experience in the tour and travel-related business, is the former executive director of the Planeterra Foundation with G Adventures and provided senior sustainability leadership to the Golden Gate National Parks Conservancy’s Institute at the Golden Gate.Vlamings will relocate to the Boston area to lead the staff from the organization’s headquarters in Norwood, Massachusetts.

In Germany, Frank Straka has been named the new managing director of Kurz Mal Weg (Short Time Away). In November 2016, Fit Reisen took over the travel portal Kurz Mal Weg from the insolvency estate of Unister. After completion of the reorganization, the company decided to start with the new managing director. Straka is currently working for the package travel specialist Kästl Ost-Touristik and will start his new job at Kurz Mal Weg on April 1st.

Trend Group‘s sales management in São Paulo now has a new executive: Noah Britto, who previously served as manager of Abracorp, which is now a part of CVC. Britto now leads a team of more than 20 people, including Sales executives and employees.

Lisa Messina has been named vice president of sales at Caesar’s Entertainment. In her new position, Messina will oversee Caesars’ sales strategy for meetings and events worldwide. She joins the company from Hilton Hotels, where she was executive director of intermediary group sales. Before her tenure at Hilton, Messina served as chief marketing officer at ConferenceDirect.

As part of the reorganization of its planning, purchasing and control divisions, DER Touristik has appointed Sven Schikarsky as the new head of capacity and revenue management for all tour operator brands. He takes his place on April 1st. Schikatsky was most recently managing director, touring packages, at FTI Touristik until the end of 2017.

Mary Twomey is the new vice president, global trade and consumer development for the Illinois office of Tourism. Twomey, well-known in the industry for the 25 years she spent with Chicago’s Essex Inn, was most recently with TimeZoneOne, a Chicago-based advertising and design company, for just over a year.

Updated Arrivals Data Tell a Sad Story for 2017 …

China, Mexico and South American Markets Tanking through First Eight Months of Year: The U.S. Department of Commerce’s National Travel and Tourism Office (NTT0) last week released preliminary data on international arrivals through the first eight months of 2017 which suggest that, if the global market performance of the U.S. as a destination continues as it did through August, it will fall short of NTTO’s own estimate for 2017. Issued three weeks ago, that estimate indicated that 2017 will produce an overall figure for international arrivals just a tenth of a percent lower than it was in 2016.

Some random notions that jump out of the tables of arrivals data for the Top 15 overseas source markets, as well as Canada and Mexico—these two markets furnish more than half of all international arrivals to the U.S.—include the following:

—China shows a year-to-date decline of 5.6 percent vs. 2016, even though NTTO’s estimate for full-year arrivals indicates an increase of 2 percent. This may have been a result of visa rejections early in the year when Embassy visa officials were more aggressively screening applicants.

—Mexico’s arrivals seem to track with what NTTO is projecting for 2017, which amounts to a major decrease vs. 2016. This means a decline of more than 1.5 million visitors.

—South America’s four top markets—Argentina, Brazil, Colombia and Venezuela—all show year-to-date declines.

—Meanwhile, of the top five source markets from the Eurozone—Germany, France, Italy, Spain and the Netherlands—only Germany showed a reduction in year-to-date arrivals for 2017 vs. 2016, and a small one at that: down just four tenths of a percent. The strength of the Eurozone block is due, possibly, to the Euro’s gain upon the U.S. dollar in 2016.

Here are the numbers, which speak for themselves.

How Attractions Can Prepare for Chinese New Year’s Visitors

Happy New Year! For Asian countries, the new year is not only celebrated on January 1st, but also on the traditional Chinese New Year which occurs between the end of January and middle of February each year. Here is a link to find the date and corresponding Zodiac animal for each year through 2030.

Also known as Spring Festival, it is becoming increasingly popular to take long-distance trips during this two week period. This bump in tourism in the winter is great for many of us. It is a slower season when we are happy to see any visitor come through the door! Over the years I have leveraged this business through some simple actions that anyone can take.

Decorate

Chinese New Year is a festive occasion with red lanterns, banners, and the Zodiac animal featured prominently. This article gives some great information on the most popular decorations.

I have been able to travel to Chinatown in NYC to get decorations at pop up shops that are sandwiched everywhere on the busy streets. I usually am lucky enough to get one of the office staff from my favorite tour operator to come with me and help me figure out what to buy.

One time when I went shopping alone, I ended up coming home with a poster that was particularly colorful and festive. I placed it prominently at our group check-in area, only to be told by a tour guide that it said ” Happy Marriage”! I ended up taking it down and giving it to a woman in my office who was getting married later that year. So unless you read Mandarin, its best to bring someone with you or choose items with no writing!

If you aren’t located near a major city, there are plenty of places online to shop for Chinese New Year decorations. We buy some that are generic and can be re-used, and then some that feature the Zodiac animal of the year. This is an inexpensive way to make Chinese guests feel welcome and special.

Offer Asian food

If you offer food, consider offering an Asian specialty during Chinese New Year. It is a good time to experiment since it typically isn’t busy, and your cafe can develop items that you might be able to offer full time as your Chinese visitor market grows.

One easy option- noodle cups. They are easy to display and there is a great sales margin on them. You will also see that customers tend to stock up- they will buy multiples so they can have them in their hotels. You do need to provide plenty of hot water. We learned quickly that the demand for noodle cups made it necessary to upgrade our hot water supply. But for starters, you can just use several urns that have never been used to hold coffee (that leaves the water with a coffee taste).

I have learned that the noodle cups that are popular in the U.S.( like Oodles of Noodles) are not what Chinese want. It is worth the effort to find noodle cups that are Chinese. We have gotten samples from our suppliers and asked tour guides to give us their opinion on which would be most popular. They appreciated being asked, and we got expert taste testers!

Try Something New

This can also be a good time to see if there is an activity that this market might enjoy – and pay for. Is there a hands-on element of your attraction that you can try? The Chinese tour operators are always eager for DIY projects (DIY is a more common term than ‘hands- on’ for the Chinese market) that they can sell to customers. The key is to make it easy, quick and something that won’t take up much room in the luggage. Pricing is important as well. Look for a future post on tour costs and the Chinese market.

Red money envelopes

These small envelopes traditionally contain money and are given out to friends and family. This article gives a great background. I have seen retailers such as the Mall of America give out Red envelopes that contained coupons for discounts, free passes to the rides, and other items. So smart! This small gesture shows that you are China ready. It would be easy to produce a discount card for your retail outlet and place them in an envelope. Red money envelopes are even available for digital distribution through WeChat! (If you aren’t familiar with WeChat, check out these posts.)

Retail products in form of Zodiac animal

Highlighting items in your gift shop that feature the zodiac animal of the year is another way to increase revenue. It is even better if your products can contain your destination or attractions name which will make it a great souvenir. Can you offer a product that has all the zodiac animals as options? I have seen people that would like to buy products that feature the animals of their family members. Or a whole set. Keep in mind that they have to be lightweight and easily packed.

Photo Opportunities

Social media is very popular with Chinese and everyone takes photos and posts them for friends and family to see. First, off, make sure you offer free wifi. That should be a basic amenity. Second, are there photo ops that also include the name of your destination, your logo or your website? Let your guests promote you at no cost. Make it special for New year by featuring the Zodiac animal as a photo opportunity!

Final thoughts

I have been offering workshops on becoming China ready, as well as trainings on how to use WeChat. As I often say, you don’t have to be fluent in Mandarin, but you do need to know WeChat to be successful in this market. Email me if you would like more information on the training and workshops.

I am looking to grow my subscriber list to 1000 by June 1. Can you forward this to a colleague or friend who might enjoy learning more about the tourism industry? Thank you!

The post Chinese New Year- a winter boost for Tourist attractions appeared first on The Attractions Coach.

(Sally Berry is tourism sales and marketing manager at the Corning Museum of Glass in Corning, New York. A veteran tour and travel industry marketing professional, she launched The Attractions Coach nearly two years ago. A frequent speaker and program panelist at industry conferences and workshops, she will be making a presentation on “How to Market on WeChat” at the upcoming Active America-China conference March 25-27 in Atlanta. For more information, visit www.activeamericachina.net.)

ATI’s Noel Irwin Hentschel and Bonotel CEO Faisal Sublaban tell their stories at RTO Summit West

Storytelling is the new Black: The program on the first day of NAJ’s RTO Summit West next week (Feb. 21-22 at the Ritz-Carlton Marina del Rey, California) will be feature with experts from different segments of tour and travel industry telling delegates their stories from matters as diverse as a look back at the 40-plus-year success of AmericanTours International to a day in the life of a tour operator (featuring the tour operator herself).

The presentations from the RTO Summit West will be covered in upcoming issues of INBOUND. Below is the agenda for the Summit program.

9:00 am-9:30 am:   Ch..ch…ch…Changes! The world of the receptive tour operator is evolving in several different directions that are both understandable and contradictory: Consolidation of the bed banks and fragmentation that has created a slew of new operators specializing in groups. NAJ’s INBOUND Report has tried to stay on top of it.

Jake Steinman, founder and CEO of NAJ, will present an updated look at the market.

9:30 am-9:50am: Forward Thinkers—Part 1: How tourism sales professionals can help operators sell their product by micro-targeting high-potential visitors.  While the industry focuses on relationship marketing, there are now numerous ways to micro-target potential travelers in an affordable way that tell your story in a way that will help operators sell your programs.

Case study presentations: Billie Moser, Vice President of Tourism, Travel Portland.

9:50-10:10 am: How to Use “Facebook Live” to Conduct a Fam Tour and Site Inspection. According to our research 66 percent of 2017 IPW buyers are on Facebook. Jason Hackett, CEO of digital agency Briar Katama, walks us through a Facebook Live Fam Tour developed for his client Gulliver’s Gate in New York.  (via Skype)  Using Facebook’s Custom Audience to reach IPW 2017 buyers in a new Way.  Custom Audience is like e-mailing on Facebook

10:10-10:25 am: They call it an “Uber for Live Interpreters: Meet OnVoy.  A new service that connects international visitors with language challenges (or hotels, attractions and restaurants) with live interpreters who can translate in real time.

Presenter: Kristen Brecht Baker, Founder and CEO, OnVoy.

10:25 am-10:45 am: Morning Break

10:45 -11:05 am. State of the International Traveler +How will Trump Influence Inbound Travel to the USA?  The most recent Annual State of the International Traveler from the San Francisco-based research and marketing firm, Destination Analysts, not only reveals valuable new insights into the factors that contribute to travelers selecting specific destinations, but also includes market-by-market perceptions of our President from the top 10 inbound source countries.

Presenter: David Reichbach, Destination Analysts.

 11:05-11:20 am: Where’s the Beef? Does “India Ready” mean Going Vegetarian?  According to NTTO research, India is tracking closely behind China to become as the next wave of inbound travelers. Contrary to popular myth, only 30 percent of Indians are vegetarians but what do destinations and attractions need to do to service and prepare for them?

Presenter: Larry Friedman, Global Ready Education Trainer, BRIC Marketing Group.

11:40-12:00 pm: Mark Ma, Director of Marketing, C-Tour Holidays (division of C-Trip).

 11:20-11:40 pm:  Forward Thinkers Part 2: In Conversation with… senior level receptive operators about their business, their newest initiatives and where they see the industry moving in 2019: Faisal Sublaban, CEO, Bonotel

12:00-12:25pm:  Forward Thinkers Part 3: In Conversation with…Noel Irwin Hentschel, Co-founder and CEO, AmericanTours International.  Last August, ATI celebrated its 40th Anniversary as an inbound receptive operator.  Join us as we honor ATI on this momentous anniversary and their co-founder as we look back at what they’ve accomplished and then look forward to what’s ahead.

12:30-2:00 pm:  Lunch on own

2:00-2:20 pm: We Chat Tips and Tricks.  Sally Berry, Corning Museum of Glass.

2:20-2:40 pm: A Day in the Life of a Tour Operator.  How do tour operators spend their day? Aniseh Dalju, CEO, Onward, will provide an hour-by-hour account of a typical day from the time when she awakens to when she retires to bed.

2:40-5:00 pm: Receptive Insight Roundtables: A series of rotating roundtables each led by a receptive operator hand selected for their area of specialization.  Confirmed companies include:

Table 1: Loni Feit, New World Travel

Table 2: Alma Alvarez, Best Day Holidays

Table 3: Aniseh Dalju, Onward

Table 4: Mark Ma, C-Tour

Table 5: Jesse Yang, Choose a Destination

Table 6: Daniel Shen, Lion Tours

Table 7: Tommy Hirahara, JTB and TPI. 

Table 8: Mark Goldberg, Ameribound Tours

Table 9: Patrick Swen, Lassen Tours

Table 10: Takeshi Sakakibara, TourAmerica

Table 11: AmericanTours International (TBA)

 How it will work: Each of the Insight roundtables will be led by one receptive operator and will include 7-8 suppliers and DMOs, organized geographically, who will introduce their products and discuss ways to make their offerings more sellable. Suppliers will rotate every 35 minutes to another receptive table.

What the Hell is a Flashpacker?

This headline was certainly attention grabbing. “No, we haven’t misspelled ‘backpacker’, but rather are shining a light on a whole new type of traveler,” explained Travel Weekly Australia last week when it ran the “Flashpacker” headline, “and they’re not schlepping around with giant packs and minimal spending money.”

The “flashpacker” is a new trend identified by Australia’s Tourism and Transport Forum (TTF), a CEO group that serves and represents the country’s tourism, transport and aviation sectors. TTF says that the “flashpacker” is the newest tourist that travel sellers and destinations ought to keep an eye out for.

Basically, they’re described as being the usual backpacking age—18 to 24 year old—but they have a high disposable income, and few major household expenses (“no mortgages or flashy cars”).

TTF’s chief executive, Margy Osmond, said these people are keen on spending their hard-earned cash on big holidays, and exploring the world in a way their parents never could.

“The days of young people travelling with little more than the shirts on their back are well and truly over,” said Osmond, explaining that “flashpackers” are “opting to take more extensive and adventurous holidays and to increasingly look to gain life experiences such as exploring different cultures, learning languages and gaining work experience through travel.”

New TTF research, she said, has shown that young people plan to spend more on their summer holiday than any other age bracket.

In partnership with Nielsen, TTF conducted research which shows that nearly one-quarter (21 per cent) of Aussies aged 18 to 24 plan to spend between $2000 and $5000 on their summer vacation, while 11 per cent intend to spend more than $5000.

This compares to just eight per cent of people aged 45—64 and 13 per cent of people aged 65 and over who plan to spend between $2000 and $5000. Most Australians (79 per cent) plan on spending less than $2000 on their holiday break, with four per cent planning on getting away with spending nothing.

DER Touristik is Buying the Last Kuoni Standing

It appears as if DER Touristik is in moving to acquire that last part of the Kuoni operation that is still standing operating as a national brand. According to travel trade publications in both France and Germany, DER Touristik is negotiating with the tour operator Travel Lab—it is known on the continent as Kuoni France. Reports indicate that negotiations should conclude by the end of February.

The deal would also include Travel Lab’s other brands: Vacances Fabuleuses, Scanditours, Celtictours, Donatello and Les Ateliers du Voyage. Current management of the company would remain in place for at least three years. Travel Lab has 220 French employees.

Until 2013, Kuoni France was part of the Kuoni Group. The tour operator has been owner-managed since a management buy-out. So, two years later, when DER Touristik Group took over the European tour operator business of Kuoni Group, Kuoni France was no longer one of them.

Kuoni Group has begun to sell off its assets in an effort to remain a viable entity, it sold its European assets in June 2015 to the Rewe Group, the mega supermarket brand that also includes DER Touristik among its components. A little more than seven months later, in early February 2016, the Swedish private equity firm, EQT Partners, announced that it had agreed to acquire the Kuoni Group in a deal that took the Zurich-based company private. Kuoni was been founded in Zurich in 1906.

The acquisition of Kuoni France will give DER Touristik a substantial share of the French travel market. Currently, DER Touristik is the Number 2 tour operator in Germany—behind TUI—although it claims to be Number 1 in long-haul business.

Where Chinese Tourists Go, Business and Economic Growth is Sure to Come Along

The professionals and influencers in the tour and travel industry realize that there are few reporters, columnists or commentators for business news organizations who really “get it” when they write about, or talk about, our industry. Most are still trapped with notions that hoteliers, airlines, rental car companies and attractions are vertical industries. They don’t quite understand reach of the industry. Every once in a while, we at INBOUND come across evidence that someone “gets it.” In this case, it’s Tracy Chen. A portfolio manager at Brandywine Global Investment Management, she also writes opinion pieces for Bloomberg. Her latest, “To Understand China’s Growth, Look at Its Tourists,” is a must- read that you will probably want to share with others. That’s why we’re sharing it with you here:

https://www.bloomberg.com/view/articles/2018-01-29/chinese-tourists-are-reshaping-world-economy

In Canada, Vision Travel Acquires Percy Hunt Travel Group

Brian Robertson, president of Vision Travel has announced his company’s agreement with the Percy Hunt Travel Group to acquire the latter as Vision Travel pursues its strategy to expand.

Vision Travel, which is a Direct Travel Company (Colorado-based Direct Travel ranked #15 on the most recent Travel Weekly Power List of agencies) is based in Toronto, while the Percy Hunt Travel Group is headquartered in Regina, Saskatchewan. The acquisition will have Vision Travel’s expand into key markets throughout Canada with 23 new offices added in Western Canada. The offices are located in Manitoba, Saskatchewan, Alberta and British Columbia.

The move “will provide greater access and support to agents across the country,” said Brian Robertson, president of Vision Travel (Ontario-West) making the company the “best of both worlds.”

In an interview with TravelPulse Canada, Robertson said, “This is the right fit for our organization, and allows us to expand our local offerings in secondary and regional markets across Canada. Such a large acquisition will allow agents to maintain the local feel, but give them access to leverage the benefits and support of a larger organization, which in turn, benefits our clients.”

Who Are the Tour and Travel Industry’s Best Networkers?

The foundation of our industry is formed around relationships and we are embarking on a drive to identify the tour and travel industry’s top networkers Great networkers have built loyalty among peers and customers based on their willingness to share advice, experience and even contacts in a way that helps them become successful.

At a Glance: Sarasota, FL

For full information Click Here

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

Barbara Adriano has been appointed senior group manager for AlliedTPro. She previously headed Adrian Planning & Consulting, primarily an events planning group in New York City. She also served as group manager for TeamAmerica for four years.

Brian Wright recently joined Santa Monica Travel & Tourism as director of global business development. Previously, Wright was director of DMO and executive relations for Visit California; prior to that, he was senior director of communications for the same organization. Wright also served as director of marketing for Delaware North Companies Parks & Resorts at Yosemite.

Daniel Gathercole is the new managing director of First Class Holidays. He succeeds Paul Ainsworth, who has become the company’s chairman. Previously, Ainsworth, co-founder of the business, was managing director. The appointment of Gathercole also sees director and co-founder Sharon Mason move into the new role of chief operating officer. Gathercole joins the company from outside the travel industry. He has spent the last five years as marketing director of golf retailer American Golf.

Simon Laneres recently joined World2Meet as contracts manager USA-West. A veteran of many years in the tour and travel industry, Laneres was previously market manager South USA for more than five years at GTA, Prior to that, he was product manager at AlliedTPro.

Brand USA has appointed two new regional directors: Karly Melo (left) is regional director in Canada; and Lourdes Berho (right) is regional director for Mexico. Melo, a public relations professional with experience in destination marketing will collaborate with the Toronto office of TimeZoneOne, a global creative-services and communications agency founded in New Zealand in 1994. Its global headquarters are in downtown Chicago, with an office in Christchurch, New Zealand and Toronto, Canada. Berho, founder of Mexico City-based Alchemia: In the Business of Transformation®, and former CEO of the Mexico Tourism Board has over 25 years’ experience as a leader of global companies; with expertise that spans brand development, integrated-marketing strategies, and travel and tourism.

Gina Gemberling has been named vice president of sales and services at the Little Rock CVB. Gemberling comes to the post from her job as executive director of the Springfield (Ill.) CVB.

Nick Longman has resigned his position as managing director of TUI UK and Ireland “to pursue new business challenges,” according to a company statement, which also noted  that all members of the UK and Ireland board will now report into David Burling until a new managing director for Tui UK and Ireland has been appointed. Longman has held various leadership roles in the business since 1998, joining as head of audit for First Choice. He later became the integration director for the merger of Thomson and First Choice in 2006 and UK distribution director in 2008. Longman took on the role of managing director for the group’s UK and Ireland business at the beginning of June 2015.

Caitlyn Mooney was recently named director of sales for group sales at Visit Champaign County (Ill.).  She was previously area director of sales and marketing for Hilton Garden Inn, Homewood Suites by Hilton, and Home2 by Hilton.

Bruno Sá’ has left his job as part of the regional sales team of Brazil’s MMTGapnet after five-and-a-half years with the tour operator, which is currently combining products and operations with Flytour Viagens. The two companies announced their merger late last year. Those interested in contacting Sá’ can do so via brunomourasa@gmail.com.

John Feenaghty has been appointed to the newly created position of chief operating officer at Goway Travel, which is headquartered in Toronto and has offices in Vancouver, Los Angeles, Sydney and Manila.  As COO, Feenaghty will focus on the development of a long-term plan which includes the gradual retirement of Bruce Hodge, Goway’s founder and president. A 25-year veteran of the tour and travel industry, Feenaghty was most recently with the Flight Centre Travel Group in Australia, where he held a number of senior roles over 14 years.

Ruth Hilton has been promoted to sales and business development director for The Travel Corporation (TTC) in the UK and Ireland, following the departure of Paul Melinis.  In the newly created position, Hilton will be responsible for the sales, marketing and business development of all four guided holiday brands in the UK & Ireland: Insight Vacations, Luxury Gold, Trafalgar and CostSaver.

Terry Williamson has become an executive director at the London-based Palatinate Group, which operates both Your Golf Travel and Spabreaks.com. Williamson is a former chief executive of JacTravel; He also held senior roles at Cosmos, Monarch Travel Group and Thomas Cook.

U.S. Company Acquires UK’s Barrhead Travel

The Minnesota-headquartered Travel Leaders Group, has acquired Barrhead Travel, the Glasgow-based travel agency which is one of the UK’s biggest retail travel firms. The Travel Leaders Group, according to last year’s Travel Weeky USA Power List of the top ($100 million or more in annual business) travel agencies operating in the U.S., ranked 9th, with sales for the previous year totaling $4.39 billion and 8,360 employees. Travel Leaders has some 7,000 owned, franchised or affiliated agencies.

Founded in 1975, the Barrhead Travel Group grew from a single high street shop to a travel giant with 900 employees across 61 UK outlets, including travel agencies, business travel offices and contact centers. The company says on its website that it is the UK’s leading independent travel group, booking more than 300,000 people on holidays each year. It emphasized that point that “it is proud of its relationship with the world’s leading tour operators.”

The acquisition came as a surprise in the tour and travel industry in the UK, as it had been expanding beyond its base in Scotland and into all parts of the UK. However, in 2016, Barrhead did appoint the accounting and financial counseling firm BDO to help it seek new investments for future growth. At the time, it had said the company was not for sale but was looking for financial backing to expand in England and globally. At the time, it had said the company was not for sale but was looking for financial backing to expand in England and globally.

Bill Munro, Barrhead’s founder and Chairman, and his daughter, Sharon Munro, chief executive, will maintain their roles in the company. No major changes in operations were anticipated, said Barrhead.

Travel Leaders Group CEO Ninan Chacko said: “Barrhead is a great addition to our family of brands. It’s an innovative, award-winning travel business that is on a trajectory for continued growth.

“Bill and Sharon Munro have devoted their careers to building this extraordinary business. We’re pleased that the Munro family is entrusting the future of Barrhead, its employees, agents and customers to our organization. We’re excited about this chance to expand our presence in Scotland and the UK overall and the opportunities this affords both companies.”

Florida’s now Cheaper than Short-Haul Spain for British Vacationers

The two-year decline in the number of international travelers visiting the United States has, according to one report, resulted in holiday prices for British travelers dropping by up to one-third. Researchers for Travelsupermarket said last week that a typical family could save up to £1,000 ($1,400) by opting for the U.S. over Spain as hoteliers drop prices.

As reported by Travel Weekly UK, the price differential has been exacerbated by demand for Spain forcing up prices in recent years due to demand switching from Turkey and northern Africa, according Travelsupermarket. The study also found that parts of the Middle East have become cheaper than Mediterranean destinations due to booming hotel room supply.

“Package holiday prices to Florida have dropped by as much as 35% year on year, following a slump in the sterling to dollar exchange rate in 2016, the Brexit referendum and a dip in worldwide visitor numbers after Trump’s inauguration,” said Travelsupermarket’s Emma Coulthurst, who added: “Brits have always been one of the US’s biggest markets and Florida, particularly Orlando, relies heavily on tourism and can’t afford for us not to go there. Hoteliers, tour operators and airlines have reduced their prices significantly in the hope of encouraging us back.”

As the table below suggests, the cost of purchases of goods and travel by British consumers in the Eurozone has increased in the past two years. Recall that “Brexit,” when the British voted to leave the European Union in June 2016, has resulted in a weakening of the British pound vs. the Euro), while the pound has regained its strength against the U.S. dollar following a post-Brexit decline.

Travelsupermarket studied the cost of a seven-day package for a family of four with school-age children during the half-term holidays at the end of May. It looked at prices to destinations in the western Mediterranean and the Canary Islands, along with Florida and the Middle East.

Hey, Big Spender! Chinese Millennials “Earn it and Burn it”

China is Responsible for a Third of Global Luxury Sales: A new survey shows that Chinese youth will continue to splurge on big brands, even as the country accounts for nearly a third (32 percent) of global luxury sales last year. There are a number of first-of-their-kind findings in the report on the survey, conducted by Boston-headquartered Bain & Company, the global management and consulting firm that also has offices in Shanghai, Beijing and Hong Kong.

Some of the more interesting revelations from the findings—they are based on a survey of 1,170 Chinese consumers—include the following:

—Mainland Chinese consumers start to purchase luxury goods at an earlier age than their peers in the West–and they buy more frequently.

—The average age of mainland spenders on luxury goods is about 35, which is 10 years younger than those in developed economies.

—Chinese shoppers account for 32 per cent of the total of $319.6 billion luxury sales consumption worldwide.

—The sales to Chinese shoppers include luxury consumption outside the mainland during their overseas travels and business trips.

(Bain said the young shoppers’ habits are typical of “Moonlight Clan” – those who spend all their monthly salaries, while looking to express their unique personality through distinctive looks. The young adults represent an economic departure from the spending habits of their parents in a country which has been known for its high savings rate.)

—The survey showed that 93 per cent of millennials (individuals 20 to 44 years old) will tend to buy more luxury goods in the next three years.

—Unable to provide a clear-cut figure for the total luxury spending by millennials, Bruno Lannes, a Bain partner, said that their average number of luxury purchases in 2017 hit eight, compared to five by other shoppers.

—Brands also aggressively increased the share of digital marketing spending on millennials in 2017 to woo the digital-savvy young shoppers. Digital marketing spending accounts for about 50 per cent of their total, compared to 35 per cent two years ago, the Bain report said.

For the complete article on the above, visit:

http://www.scmp.com/business/global-economy/article/2128741/chinese-millennials-give-luxury-brands-boost-they-earn-and

INBOUND on the ROAD: International Media Marketplace

INBOUND took part in the recent International Media Marketplace at the Jacob Javits Convention Center in New York City. Some 600 travel suppliers andjournalists attended the event, which is hosted by TravMedia, and is one of a series of seven such marketplaces held annually in locations in Asia, South America, Europe and North America. Following is a photo sampler of the tour and travel professionals who were part of the New York event.

Cathy Reynolds, manager, media relations and lead manager, IPW press operations,
U.S. Travel Association

Inbound’s next event: Connect Travel Marketplace

Vive les États-Unis! French Inbound Market up 5% in 2017

According to France’s authoritative Orchestra Gestour barometer for travel businesses, tourist departures in December 2017 were equivalent to those realized in 2016. And for the year (the period from January to December 2017 vs. 2016) is up, passenger departures were up 3 percent.

For long-haul departures, the Dominican Republic remained the leading long-haul destination for French travelers, despite a sharp drop (down 31 percent) in the number of passengers, while Thailand (+ 12 percent) and the United States (+ 5 percent) ranked 2nd and 3rd respectively are in an upward trend. Cuba (down 26 percent) and Mexico (down 20 percent) struggled last year, while Canada and Vietnam are growing by 20 percent in passenger numbers.

Most of the barometer’s numbers had to do with travel from France to European and short- and medium-haul destinations, where the figures were mixed, although there seemed to be recovery in passenger traffic to northern Africa.

While is not generally a safe practice to compare one organization’s long-haul travel numbers with that of another (differences in sample sizes and methodology can vary), the Orchestra Gestour barometer agreed, somewhat, with the latest estimate for 2017 furnished by the U.S. Department of Commerce’s National Travel and Tourism Office (NTT0) in the latter’s long-term forecast, which was released last month.

The NTTO estimate had 2017 traffic from France to the U.S. increasing 3 percent over 2016—1,677 million visitors vs. 1,628 million.  The broader picture for inbound travel from France is encouraging.

Note: In our own 2018 Market Outlook, INBOUND predicted that inbound arrivals from France would increase “by at least two percent” this year. To access this document, click on the following link:

https://drive.google.com/file/d/1UJ5PU0Vj2w27aa7QuXyk-5HzFm9Gdlbf/view

New Brand USA IMAX Film Debuts Next Week in D.C

Brand USA’s second IMAX® and giant-screen documentary, America’s Musical Journey, will have a premiere screening in Washington, D.C. on February 15, 2018 at the Smithsonian Air and Space Museum. Narrated by Academy Award winning actor Morgran Freeman, and featuring visits to a number of U.S. destinations famous for their music, America’s Musical Journey celebrates  “the diverse music and creative risk-taking spirit that characterize America.”

Grammy-nominated singer/songwriter Aloe Blacc serves as the de fact host of the film, as he traces Louis Armstrong’s footsteps through the colorful locales where America’s music was born—cities like New Orleans, Chicago, Detroit, New York City, Nashville, Miami and more—and meet the artists, music makers, storytellers, and innovators who are shaping America’s culture today.

America’s Musical Journey is Brand USA’s second giant-screen production. The first, featuring America’s national parks, premiered in February 2016 and was a popular hit among overseas visitors to the U.S. It is still playing at some venues. Brand USA has already given the go ahead for a third giant-screen film by MacGillivray Freeman Films. It is scheduled to debut in 2020.

Based in Laguna Beach, California, MacGillivrary Freeman Films was founded in the mid-1960s by GregMacGillivray and Jim Freeman. It has produced documentaries, feature films, and IMAX films. In 2010, MacGillivray Freeman Films became the first documentary film producer to ever cross the $1 billion mark in gross box office.

For more information, visit www.americasmusicaljourney.com

114 Buyers Confirmed at Sold-Out RTO Summit West

NAJ’s RTO Summit West, the first of the RTO Summit series that bring together receptive tour operators and travel suppliers for a day of face-to-face business meetings, as well as a day of education programs and networking time, is a now sold out. 

Scheduled to take place Feb. 21-22 at the Ritz-Carlton, Marina del Rey, California, the event proved so popular this year that NAJ had to re-configure conference space in order to accommodate the record number of receptive tour operators who have signed up to attend the Summit.

Jake Steinman, NAJ’s founder and CEO, said that 121 suppliers and 114 receptives/buyers (see list here http://www.rtosummit.com/west/attendees/) have confirmed for the Summit, exceeding the numbers for each year since the RTO Summit was launched in 2004.

“The RTO Summit West has established itself a must-see and must-do conference and trade show for U.S. travel suppliers who want to tap into the opportunity to do overseas business with receptive tour operators based primarily in southern California. explained Steinman. “On the basis of the way the pre-scheduling of business appointments has progressed, it appears that the second day of the Summit, the day on which the appointments take place, is booked solid.”

“The intensity of the interest on the part of both buyers and suppliers is indicative of a strong travel market in 2019 for Visit USA product in key Asian destinations,” said Steinman.

In addition to the RTO Summit West, NAJ also hosts the RTO Summit East (April 17-18 at the Wyndham New Yorker in New York City) and the RTO Summit Orlando, October 24-25, 2018 at the Omni Hotel and Resort in Kissimmee, FL.

###

First “Buy the Minute” Luncheon Program Debuts at RTO West also sold out. At this year’s RTO Summit West is the luncheon program, NAJ decided to forgo the practice of having a single sponsor, opting instead to make presentations available to multiple sponsors by offering the opportunity to purchase by the minute. All 10 minutes of the luncheon showcase will feature the following sponsors in a short but sweet “edutainment” format mixing video with live presentations.

Here’s Showcase Program.

1:15-1:17 PM: Robert Graff, Papillon Grand Canyon Helicopters

1:17-1:18 PM: Donald Contursi, Lip Smacking Foodie Tours

1:18-1:21: PM: Chryl Collins, Sonoma Tourism Bureau

1:21-1:23: PM: Harry Wade: Duty Free Americas

1:23-1:25: PM: LaToya Grant, City Sightseeing

1:25-1:35: PM: Betsy Cooper, TourOperatorland.com Presented by: Betsy Cooper

Who Are the Industry’s Best Networkers?

The NAJ Group, publisher of the INBOUND Report as well as the TourOperatorLand magazine which is distributed every year to all delegates at the U.S. Travel Association’s IPW, is seeking entries to determine the top networkers in the tour and travel industry.

“The foundation of our industry is relationships. The quantity and quality of those relationships with buyers and, in some cases, colleagues, is the key to success,” explained Jake Steinman, founder and CEO of the NAJ Group, in announcing the competition.  “So we wanted to showcase the industry’s top networkers and profile them in an article in TourOperatorland .

On February 15th, a “Call for nominations” will be sent out and industry members and responses will be collected. Those industry professionals receiving the most nominations will be contacted to assess their personal networks and social networks with buyers and colleagues, as well as their insights on networking.

“While measurable qualities such as the number of industry associations and professional groups that a person belongs to, his or her level of participation in national and international trade shows, number of friends on Facebook, number of connections on LinkedIn, recommendations and endorsements are important, remarked Steinman. “The best networkers are those who have helped others—whether they are buyers or peers—become successful.”

The exact time and place of the announcement will be announced later. More details will soon be available in an upcoming issue of the INBOUND Report.

At a Glance: Anchorage, Alaska

For full information Click Here

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

Steve Hill has been named president and chief operating officer of the Las Vegas Convention and Visitors Authority. Hill, who comes to the job from his position as executive director of the Nevada Governor’s Office of Economic Development, takes over the president’s slot from Rossi Ralenkotter, who remains as CEO. The move is part of a five-year vision plan put into place by the CVA’s board of directors in January 2016 which called for the hiring of four “C-suite” executives, including a chief operating officer, to support Ralenkotter. Ralenkotter has been with the CVA for more than 40 years and has been president and CEO since 2004.

Effective March 5, Josh D’Amaro, a 20-year Disney veteran and former Disneyland executive, will become president of the Disneyland Resort. He replaces Michael Colglazier, who will become president and managing director, Asia Pacific, Walt Disney Parks and Resorts. D’Amaro, 46, most recently served as senior vice president at Walt Disney World Resort where he oversaw marketing strategy, sales and business development. He began his Disney career in 1998 as a senior business planner at the Disneyland Resort. Prior to his role at Walt Disney World, D’Amaro served as senior vice president, Resorts and Transportation, from 2014 to 2017, where he was responsible for the operation of Walt Disney World’s 26 resort hotels and the resort-wide transportation system.

Scott Warren has been appointed as a sales manager at the Virginia Beach CVB. Most recently, he was manager of the Virginia Beach Information Center. Warren has been with the bureau since the summer of 2003.

Tim Croyle, vice president, WestJet Vacations, has been appointed the new chairman of the Canadian Association of Tour Operators (CATO) and Brett Walker, General Manager Canada, Collette, has been appointed as vice chair for the 2018-2019 term.

Darren Neylon has been named the new CEO of the Ski Club, the UK-based operator that features ski product in a number of destinations, including many in the U.S., after a “robust” five-month recruitment process. Neylon replaces Frank McCusker who died of a heart attack while on a cycling trip last June. Neylon previously worked as managing director in finance, tourism and retail sectors with companies including Coopers & Lybrand, Macquarie Bank in Australia), SuperBreak and The Original Tour.

Amir Eylon, president of the tour and travel industry research organization Longwoods International, has also become a partner in the organization, which he joined in 2015. Previously, Eylon had been a senior official at Brand USA, as well as state tourism director for Ohio. Longwoods has offices throughout North America; its head office is in Toronto.

Adventure and activity specialist Exodus Travels has appointed a new managing director—Sam Seward, previously managing director of Gullivers Sports Travel and Travelopia’s schools travel business. He’ll take over from Pete Burrell, who retires in the spring after a handover period.

The Mexican airline Aeromar has announced that Dieter Holtz Wedde is joining the company, effective March 1st, as CEO  to continue the process of consolidation and internationalization of the airline’s activities. He succeeds Andrés Fabre, who leaves the company after two years. Holtz previously served as president and CEO of Laureate Education Mexico. He has also served as general manager of national brands in the United States of Monsanto. Aeromar operates scheduled domestic services in Mexico and international services to the United States.

John Nixon, a veteran of more than 20 years with Carlson Wagonlit, most recently as global director of the company’s technical service centers, has joined the travel management and events company, ATPI, as global director of operations.

Hugo Lagares is leaving his position as sales manager with the Brazilian tour operator MMTGapnet. Lagares, who had been with the company for 10 years, gave no indication of his next professional stop. Rafael Magalhães has temporarily taken the place of Lagares.

Jane Chang, a long-time fixture in the tour and travel industry in southern California, is joining the Millennium Biltmore hotel in downtown Los Angeles, as ​executive assistant manager in charge of sales & marketing. Chan, who had with the Best Western International Executive Inn in Rowland Heights, California, and had launched her own consultancy several years ago, Chang is widely known in the industry for her expertise on the Chinese market and is a frequent speaker on the subject at tour and travel industry conferences and events. She starts her new position on March 1st.

Oleg Likhashkin, who had been the general manager for Inbound USA and Canada for G2 Travel, a company founded in 2012 by David Babai the former owner of GTA, returned to GTA last week to take over the position of senior market manager.

Ctrip Expands with Big Bus Tours Partnership and Trip.com Acquisition

China’s largest travel company, Ctrip, announced at the end of November a strategic partnership with London-based Big Bus Tours, which operates hop-on-hop-off tours in 19 cities (Budapest, Istanbul, London, Paris, Rome, Vienna, Chicago, Las Vegas, Miami, New York, Philadelphia, San Francisco, Washington DC, Abu Dhabi, Dubai, Muscat, Darwin, Hong Kong, Shanghai and Sydney) across four continents. Some points that come to mind with the announcement include the following:

—The partnership gives Ctrip a global reach and equips both Ctrip and Big Bus Tours with the opportunity to pursue marketing opportunities that would otherwise not be possible. For instance, Big Bus Tours can leverage its connection to Merlin Entertainments¹—it the world’s second largest attractions operator, behind only Disney, with such well-known brands as Legoland and Madame Tussauds—so that the partnership can package and sell all components of a travel holiday, both to and from China.

—Underscoring the latter point was Ctrip’s launch, just prior to the announcement of its Big Bus Tours partnership, of Trip.com—a new website that debuted after Ctrip had acquired the site, a travel recommendation service formerly known as Gogobot. There seems to be a belief among tour and travel industry observers that Trip.com will be a version of Ctrip for business outside the Chinese-speaking world.

—The Ctrip-Trip.com news came just about a year after Ctrip’s November 2016 acquisition, for $1.75 billion, of Skyscanner, the Edinburgh, Scotland-based fare comparison and meta-search site which has a strong presence in Europe, but also has offices in China and the U.S.

—It was a busy month last year as, at the end of October, Ctrip signed a partnership agreement with L&L, Ctour, (formerly Seagull Holidays), a Los Angeles-based receptive operator that has China’s largest Visit USA market share on the West Coast; and Tours for Fun, a Los-Angeles based OTA that focuses on the Chinese market. That agreement gave the trio of U.S.-based companies access to Ctrip’s more than 250 million online users.

A Different Bottom Line: As Ctrip becomes more of a global market force, its management practices have become somewhat of a new standard, relying as they do on scientific practices in its decision making. One example of this was its use of a randomized control trial the company ran on telecommuting. Given the uncertainty over the impact of telecommuting on company profits they decided to rigorously evaluate its impact before making any management decisions. Ctrip conducted an experiment on 242 employees, sponsored by professors at Stanford University and Peking University. The experiment found that employees randomly assigned to work at home for 9 months increased their output by 13.5% versus the office-based control group, and their turnover rates fell by almost 50 percent. Adding in the savings from cutting office space telecommuting was found to have substantially reduced costs, leading Ctrip to roll this practice out across the firm.

¹ In February 2016, Merlin invested $34.4 million in Big Bus Tours for a total participation of 15 percent in the company.

As Stagnant German Population Ages, Industry Finds Growth in Senior Market

“The number of older Germans going on holidays and other leisure trips will rise significantly in the coming years, making them more important to the travel industry than ever before,” reports the German travel trade publication FVW, citing data in the just released results of the annual FUR Reiseanalyse market survey.

For those who have been following trends in the German population for the past decade, the development comes as no surprise and it signals to travel suppliers worldwide who have sold to the German market—this includes the United States, for whom Germany is the Number 4 overseas source market—that they will have to dig deeper into the base of traveling Germans, whose overall numbers are stuck in a “no growth-slow growth” path, as the following data suggest.

Now, here is the population of Germany that overlaps the same period. It has remained essentially unchanged.

The reason for the static population is that the birth rate among Germans is the lowest among the world’s developed countries. Two years ago, Germany’s birth rate fell below that of Japan, the previous holder of the distinction of having the lowest birth rate. In Germany, an average of 8.2 children were born per 1,000 inhabitants during the five year period of 2010-2015, according to a study by German auditing firm BDO with the Hamburg Institute of International Economics. It said Japan saw 8.4 children born per 1,000 inhabitants over the same time period.

And, according to the CIA’s World Factbook, in 2016, Germany had the world’s third-highest median age (46.8 years), just behind that of Japan (46.9 years) and Monaco (52.4 years) among 227 countries.

The Growing Silver Travel Market: As a consequence of its aging population, more German seniors are traveling more. Here are some highlights from the FUR Reiseanalyse:

—Germans aged between 65 and 74 went on 8.65 million trips last year. In comparison, working people aged 55 to 64 undertook 7.1 million vacation trips last year.

—By 2025, 60-69 year-olds will account for 17 percent (vs. 14 percent now) of travelers.

—By 2025, people aged 70 over will account for 19 percent (vs. 16 percent now) of all holiday trips.

—Put another way, older travelers will comprise well over one third of the German travel market by 2025.

At the same time, the FUR Reiseanalyse predicted a decline in the share of all other age groups, except for 30-39 year-olds whose share could rise slightly to 14 percent.

What Does This Say About German Seniors? The managing director of the Institute for Tourism and Spa Research in Northern Europe (NIT), and FUR’s lead researcher, Martin Lohmann, told FVW: “The importance of pensioners will increase in the coming years due to demographic trends … Older people today are more flexible, fitter and more accustomed to traveling than they used to be.”

USA as a Brand Drops Dramatically in World Ranking

 Germany has taken over the top spot of the Anholt-GfK Nations Brand Index^SM study, which is based on six indices, from the United States. The U.S. was the only country among the 50 nations surveyed whose overall brand declined in 2017. The survey’s ranking relies on measurements in the following categories: exports, governance, culture, people, tourism and immigration/investment (more on the categories below).

“The USA’s fall in the governance category suggests that we are witnessing a ‘Trump effect’, following President Trump’s focused political message of ‘America First,’” said Professor Simon Anholt, who created the study in 2005. “However, Americans’ assessment of their own country is notably more positive this year than last.”

Anholt pointed out that the United States suffered a similar drop after the 2000 election of George W. Bush, when its ranking declined to seventh. However, the setback was only temporary. “Previously, America has never stayed outside the top ranking for more than a year at a time,” he noted. “It will be interesting to see whether this holds true in the 2018 ranking.”

Germany moved into the top spot even thought it did not rank first in any individual category but did make the top five in all categories save tourism. The United States placed in the top five in exports, culture and immigration/investment.

More on the Index: The Anholt-GfK Nation Brands Index^SM—it helps governments, organizations and businesses understand, measure and ultimately build a strong national image and reputation—measures the power and quality of each country‘s “brand image” by combining the following six categories:

—Public opinion about national government competency and fairness, as well as its perceived commitment to global issues.

—The public’s image of products and services from each country.

—The level of interesting in visiting a country and the draw of natural and man-made tourist attractions.

—The power to attract people to live, work or study in each country and how people perceive a country’s quality of life and business environment.

—Global perceptions of each nation’s heritage and its appreciation for its contemporary culture.

—The population’s reputation for competence, openness and friendliness and other qualities such as tolerance.

Following are the 50 nations measured in 2017:

—North America: Canada, the U.S.

— Western Europe: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Holland, Ireland, Italy, Northern Ireland, Norway*, Scotland, Spain, Sweden, Switzerland, UK

—Central/Eastern Europe: Czech Republic, Hungary, Poland, Russia, Turkey, Ukraine*

— Asia-Pacific: Australia, China, India, Indonesia, Japan, New Zealand, Singapore, South Korea, Taiwan, Thailand

—Latin America: Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, Peru

—Middle East/Africa: Botswana*, Egypt, Kenya, Nigeria, Qatar, Saudi Arabia, South Africa, United Arab Emirates.

* Indicates the three nations newly added into the NBI in 2017. Also, three nations (Cuba, Iran, and Kazakhstan) were measured in 2016 but not in 2017.

The Results: Western market economies, along with Japan, continue to dominate the top 10 countries as ranked in the Nation Brands Index^SM. In the wake of a substantial drop in global perception of the USA, Germany retakes the top overall ranking, while France climbs to second place. The UK has regained the ground lost last year after the Brexit vote to hold onto third place, while Japan jumps into the top five for the first time since 2011, standing fourth-equal with Canada.

Just-Launched Site Offers Service Comparing Escorted Tours

A new UK-based website is now offering its users a place where travelers—mostly Britons for time being—can compare what escorted tours have to offer. The site is TourHound (www.tourhound.co.uk) and it enables holiday makers to compare the components of a tour not currently covered in travel websites.

As veteran travel writer Fred Mawer describes it in a piece for the Daily Mail, “There are plenty of websites that will help you find and compare flights and hotel deals, but TourHound is the first to provide a one-stop search of touring options … The tours shown are all available, and prices are clearly displayed – you can include flights where offered, and amend the prices so they are for a single traveler. And results are shown in an unbiased way. A neatly presented summary of each tour is given, and you can click through to the relevant company to book.”

While Europe understandably leads the world regions featured on the site (Europe, Asia, Australasia, Africa, South America and North America), North America leads other regions in long-haul product, with 710 tours featured.

To illustrate the ease with which one can navigate the TourHound site, Mawer said that it took him “less than a minute to find a digestible 11 tours, offered by three companies, for cultural and foodie small-group tours to Italy next May,” and that he was able “to pare down more than 100 cultural tours of the USA in May 2018 to seven that visit New Orleans.”

All tours show are all available, and prices are clearly displayed. A visitor to the site can include flights where offered, and adapt prices for a single traveler. And results are shown in an unbiased way. A neatly presented summary of each tour is given, and one can click through to the relevant company to book.

For the moment, the new site is a bit of a work in progress, as TourHound doesn’t provide background information on the variety of tours, or guidance on choosing a suitable tour. But that should change as the site grows.

CVC Poised to Benefit from any Recovery in Brazil

Tour and Travel Industry Indicators also Positive: For the first time since the economy of Brazil crashed into its deepest and longest recession ever in the middle of 2015, there are some positive, though tentative, numbers which suggest that the nation’s economy, including its tour and travel industry, is in recovery.

What makes a recovery? To quote Ed Dolan, a blogger for EconoMonitor, “The logical way to start … would be to cite an official definition of ‘economic recovery,’ but it turns out there isn’t one. The Business Cycle Dating Committee of the National Bureau of Economic Research, which is the group that calls the economy’s cyclical turning points, does not use the term ‘recovery’ at all. In the committee’s words, ‘a recession is a period between a peak and a trough, and an expansion is a period between a trough and a peak.’ That leaves no room anywhere for ‘recovery.’”

It is clear that the economic crisis—Brazilians refer to the economic situation simply as “The Crisis”—has taken its toll on the ability of many traveling Brazilians to visit the United States during the recession.

The Latest Numbers: The most recent quarterly data, for Q3 2017, show the following.

—The revenue of tourism companies revenues grow 4.3% in 3Q17 compared to the same period in 2016.

—Two thirds (66 percent) of the companies show the intention of making new investments in 2017.

—The most significant increases were in the segments of parks and tourist attractions (+ 11.4 percent), air transport (+ 11.2 percent), operators (+ 10. percent) and travel agencies (+ 9.3 percent).

—Of the companies that intend to invest part of the revenues, 15.2 percent are receptive, followed by events (8.1 percent), lodging (5.2 percent) and air transportation (4.7 percent).

—Overall, GDP closed the third quarter of 2017 with a rise of 0.1 percent compared to the second quarter, in the seasonally adjusted series. Compared to the third quarter of last year, GDP growth was 1.4 percent. (Even so, GDP accumulated in the last four quarters, however, remains negative, closing at 0.2 percent in relation to the immediately preceding four quarters.)

What the data suggest is that, should Q4 show a second consecutive quarter of GDP growth, it appears that the Brazilian economy will have entered a period of recovery—even if the U.S. National Bureau of Economic Research doesn’t use the term.

A Speculative Note: Should the Brazilian economy—and the performance of its tour and travel industry—have bottomed out, and should it be in a recovery mode, one winner is CVC, the largest tour operator/travel agency in the country, which will be well positioned to benefit. While a number of tour and travel businesses shut down or curtailed their operations during The Crisis, CVC made acquisitions and launched a campaign at the beginning of 2016 to build a 100 news agency stores a year through 2018. According to the latest reports, the company has built 200 new stores (It now has 1,200 nationwide) with a 100 to go. All of the new stores were built in less-populated or rural parts of the country, as CVC pushed to get the country’s residents to travel domestically, while awaiting better conditions to push for outbound international travel, for which it is already the industry leader.

 New International Air Service

—Air Canada is dramatically expanding its North American footprint in order to drive USA travelers to its key international connecting airports of Toronto, Montreal, Vancouver and Edmonton. New routes scheduled to launch next spring include:

• Toronto to Eppley Airfield (OMA) in Omaha, Nebraska, daily service starting May 1, 2018
• Toronto to Green Airport (PVD) in Providence, Rhode Island (seasonal), daily service starting May 17, 2018
• Montreal to Baltimore–Washington International Airport (BWI) in Baltimore, Maryland, daily service starting May 17, 2018
• Montreal to Pittsburgh International Airport (PIT) in Pittsburgh, Pennsylvania, daily service starting May 17, 2018
• Vancouver to Sacramento International Airport (SMF) in Sacramento, California, daily service starting May 17, 2018
• Edmonton to San Francisco International Airport (SFO) in San Francisco, California, daily service starting May 1, 2018

—Azul airlines has launched a new route from Belém, the capital of the state of Pará in the northern part of Brazil to Fort Lauderdale. The new service is offered on Mondays, Wednesdays, Fridays and Sundays, landing at 4:20 am and departing at 1:30 p.m.

—LEVEL, the long haul low cost airline brand of the International Airlines Group (IAG)—it includes British Airways— will operate three weekly flights between Paris Orly and Montreal starting on July 2, 2018. One way flights start at $199 (Canadian). The IAG brand, based in Barcelona and operated by IAG’s Iberia and OpenSkies, is establishing a base in Paris and will also be introducing four weekly flights to Newark (New York) on September 4 from the French capital.

—On Dec. 1st, Aeroméxico began flights from the Merida to Atlanta. Aeromexico Is emphasizing the point that the flight to the home base of its partner, Delta Air Lines, now gives passengers from the state of Yucatan access to 148 destinations in the United States and Canada.

—Also on Dec. 1st, Air Canada began service between Vancouver and Melbourne, Australia marking the first ever direct, non-stop flight from Canada to the Australian city. The new route offers a seasonal four times weekly service until 4 February, before beginning a year-round service in June 2018.

—Aeroméxico has begun operating a new route from Mexico City to Portland, Oregon. The daily leaves Mexico at 6:05 p.m, arriving in Portland at 9:05 p.m. The return flight leaves Portland at 11:20 p.m. and arrive in Mexico at 6:40.

Gray-and-Silver Haired Brits Like to Look for New Travel Product Launches

But They Still Like TV over Online Launches: Results from a new demographic study of British travelers show that one out of eight (12 percent) of Baby Boomers (aged 53 – 73 years) and 14 percent of Traditionalists (aged 74 and over) say they’re most likely to be on the lookout for new travel brands or experiences. This is one of the key findings derived from a study commissioned by the UK-based launch marketing specialist agency, Five by Five.

While travel brand launches are important to what Five by Five describes as “The Grey Pound,” the picture is different for other groups:

—Only 9 percent of UK consumers overall say that travel launches are what they look out for most,

—Almost one in five (19 percent) most anticipate new technology products.

—Only 5 percent of Millennials say that travel launches are their number one focus.

—In addition, one in ten Traditionalists say the travel industry delivers the most memorable launches, compared to only 3 percent overall.

The survey also found that in a world of digital and social media, TV is still the main medium by which older consumers learn about new product launches:

—Fifty-three percent of Baby Boomers say they first noticed new products when they appeared on television

—Fifty-one percent of Traditionalists say they first noticed new products when they appeared on television, while

—Only 3 percent of Baby Boomers saw them on social media and 5 percent in online ads.

James Roles, sales and marketing director for Five by Five noted that “shareable content and social buzz allow travel brands to generate pre-launch engagement in a way no other medium can hope to match. However, it seems many brands have been launching online with the product in mind and not the customer. A lot of older people still rely on TV and print ads to learn about new holiday destinations and opportunities.”

Most Don’t Seem to Notice at All: The new research also found that 61 percent of UK consumers – rising to 74 percent of Baby Boomers – are not aware of any new launches from the past 12 months at all.

—In addition, only 3 percent believe celebrity endorsement makes launches stand out.

—Just one in 14 people (7 percent) said they actually noticed a launch because a celebrity or influencer mentioned it.

—On social platforms: Only one-quarter of consumers (and only one in five Baby Boomers) say they would share branded content or information about a new product or service launch in return for a promotional offer  while less than one-quarter (23 percent) would share branded content if they felt it met a friend or family member’s needs.

At a Glance: The Countryside of Philadelphia

For full information Click Here

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

Ron Erdmann, the U.S. National Travel and Tourism Office’s (NTTO) deputy director for research and analysis, has announced his retirement, effective at the end of December. Erdmann, known by virtually anyone who has prepared a table of numbers on inbound travel to the United States, is leaving NTTO after 30 years of service as a federal employee. He is known universally as a professional truly dedicated to his duties—he once returned a phone call on a Saturday night to a recorded message left by INBOUND’s editor—and helpful to anyone with an inquiry.

Dan Lincoln, president and CEO of the Cincinnati USA CVB, and a highly respected and beloved industry professional will retire at the end of the year due to unspecified health concerns, the bureau has announced. The CVB has hired a national search firm to find a replacement. Mike Laatsch, CVB’s chief operating officer, will serve as Interim CEO until a successor is named. Lincoln has served in position since May 2006.

The United States Tour Operators Association named its 2018 board of directors, five of whom serve as the associations’ Executive Committee, at its Annual Conference & Marketplace, Nov. 27-Dec. 1 in Hollywood, Fla. Heading the Executive Committee as newly-appointed chairman will be Dana Santucci, vice president of development at EF Education First, who will joined by Harry Dalgaard, president of Avanti Destinations, as vice chair; Charlie Ball, executive vice president, Princess Cruises & Tours, as treasurer; Scott Wiseman, president, Travel Impressions, as secretary; and Paula Twidale, executive vice president, Collette, as immediate past chair.

Helen Parry is leaving her post as regional sales manager for trade at Jet2holidays to start her own travel agency. Parry had worked at Jet2holidays since 2013. Prior to that, she had worked for 18 years at TUI in various roles, lastly as general manager for TUI UK & Ireland.

Kyle Edmiston is leaving his post as assistant secretary for the Louisiana Office of Tourism to become as the new chief operations officer/deputy director of the Lake Charles/Southwest Louisiana CVB. Edmiston, who had held his post as assistant secretary for nearly six years, was previously president and CEO of the Ruston Lincoln Parish CVB. Active in numerous tour and travel industry organizations, Edmiston currently sits on the board of directors of Brand USA.

The board of directors of Visit Mississippi Gulf Coast has tapped Milton Segarra, currently CEO of Meet Puerto Rico, to be the new executive director of the organization. Segarra, who starts his new position on Jan. 8, succeeds Renee Areng after the board seven months ago did not renew her contract. Segarra has been with Meet Puerto Rico for almost five years. Previously, he held high-level marketing and business development positions with several different organizations.