Bordeaux
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  • 1. Bordeaux Cape Town Firenze Mendoza PortoBilbao Rioja Christchurch Sousth Island Mainz Rheinhessen San Francisco Napa Valley Valparaiso Casablanca Valley 2013 Great Wine Capitals Global Network Market Survey “The Pillars Of Wine Tourism Performance” Executive Summary For Bordeaux Bordeaux Cape Town Firenze Mendoza PortoBilbao Rioja Christchurch Sousth Island Mainz Rheinhessen San Francisco Napa Valley Valparaiso Casablanca Valley
  • 2. 2013 This summary report highlights the wine tourism performance of Bordeaux, a member of the GREAT WINE CAPITALS GLOBAL NETWORK (GWCGN). We collected data from the GWCGN capitals during the summer of 2013. The number of survey responses for Bordeaux was 123, which was an increase of about 25% compared to the 2012 survey. Bordeaux Cape Town Firenze Mendoza PortoBilbao Rioja Christchurch Sousth Island Mainz Rheinhessen San Francisco Napa Valley Valparaiso Casablanca Valley
  • 3. Among all great capitals, Bordeaux has the largest percentage of revenues coming from Wine Sales. From the standpoint of Bordeaux wineries' main activities, Accommodations is the second major source of revenues. Wine Tourism Revenues Break­up Wine Tourism Revenues and Top Sources of Profits Wine Tourism Revenues Break−up Wine sales 79 % Accomadation 12 % Food 0 % Tastingfees 2 % Merchandising 2 % Hosting / Rest 5 % For the 2013 survey, we find that low­end wines (price less than $15/bottle) represent a top source of profits in Bordeaux. The following top two sources of profits are mid­price wines (bottle between 15 and 25 dollars) and Accommodations. Top Sources of Wine Tourism Profit 15 % Greater $ 25 each Merchandising Btwn $ 15 and $ 25 each Tasting fees Accommodation Mixed wine Food services Cross selling Hosting events Well­being activities Less $ 15 each 2 % 29 % 16 % 67 % 21 % 17 % 6 % 4 % 9 % 1 % Top Sources of Profit Bordeaux Cape Town Firenze Mendoza PortoBilbao Rioja Christchurch Sousth Island Mainz Rheinhessen San Francisco Napa Valley Valparaiso Casablanca Valley
  • 4. Infrastructure is the top invest­ ment category for the 2012­2013 period in Bordeaux. The next top categories are Market Positioning, Cultural Entertainment and Improving Services. Investments in Wine Tourism Wine Tourism Investments and Marketing Just like in the 2012 survey, we again find that the top marketing tool used across the sample of all great wine capitals is a winery’s Own Website, which is the top category for Bordeaux. For the specific sample of Bordeaux wineries the top two categories closely behind are Tourism Offices and Mailings/Newsletters. Top Marketing Tools Used 39 % Infrastructure Imp services Market positioning Training emp Cultural Entert. None Strategic partn. 32 % 35 % 29 % 27 % 33 % 18 % Top Investments 12%Mentionedotherwebsites Borchures SocialNetworks Spclzedmedia TourOp. Appelation Tourismxhib TravelAgencies 14% 17% 3% 41% 4% 7% 9% 10% 3% 7% 7%Sustainable Citations Referrals AuthenticExperience Mailing/Newsletter CulturalFestivals Winefairs WineContests Regionfame Usemobileapps 16% 3% 1% 3% 27% 4% 18% 42% 8% 16% Ownwebsite TourismOff TraditionalAd TastingEvents Bordeaux Cape Town Firenze Mendoza PortoBilbao Rioja Christchurch Sousth Island Mainz Rheinhessen San Francisco Napa Valley Valparaiso Casablanca Valley
  • 5. In terms of Numbers of Visitors per winery, Bordeaux is in the middle of the pack among all great capitals. Nevertheless, it ranks as the second highest capital in terms of Spending per Visitor. In terms of origin, 45% of tourists are nationals, almost 50% are middle­aged people and about 45% are women. Tourists Characteristics Nationals 45 % Internationals 37 % Locals 18 % 36 to 55 49 % Above 56 % 18 to 35 20 % Bordeaux Cape Town Firenze Mendoza PortoBilbao Rioja Christchurch Sousth Island Mainz Rheinhessen San Francisco Napa Valley Valparaiso Casablanca Valley
  • 6. Regarding the External Factors perceived to help wineries, Bordeaux wineries testify that the Natural Beauty and of the region is a key positive factor, as well as Internet use. Consistent with the findings of the 2012 survey they report that Signage, uneasy Access, lack of Local Facilities and Public Infrastructures can be factors that impede business. Positive and Negative Factors for Business Landmark Natural B Location Access OtherAct LocalFacilities CoopwBus MarkTO PublicInf Signage Totally negative Somewhat negative Neutral Somewhat positive Totally positive 50% 0% 10% 20% 30% 40% 60% GWCmenber Association ChamberorBusA Tousism A TourOp CoopWineries Internet FameRegion TourismPolicy 50% 0% 10% 20% 30% 40% 60% Bordeaux Cape Town Firenze Mendoza PortoBilbao Rioja Christchurch Sousth Island Mainz Rheinhessen San Francisco Napa Valley Valparaiso Casablanca Valley
  • 7. First, we isolate the candidate factors that explain or at least correlate with more tourist visits. The Table below shows the most impactful factors for the overall sample. The variable we try to explain here is the Number of Tourists visiting a given winery. The factors highly correlated with increased number of tourists are shown in the left hand side column. These factors are ranked in descending order of impact. In the category Investments in Wine Tourism, Improved Services is the only significant factor. In the category Activities Offered, Factors Correlated with Attracting More Tourists For the 2013 survey, we find that low­end wines (price less than $15/bottle) represent a top source of profits in Bordeaux. The following top two sources of profits are mid­price wines (bottle between 15 and 25 dollars) and Accommodations. Most Significant and Impactful Factors Improved Services 2 % 71 Investments in Wine tourism+ + Sports and Social + + Gastronomy + + Conferences + Specialized Media + + Sustainably Friendly ­ ­ Travel Agencies + Tour Operators + Landmark + + Cooperation / other business ­ ­ GWC Menbership + + Local Facilities + Effect Factor Categories TableshowsresultsfromQuantileRegrassions.Correctedforsizeeffect Pseudo B and Observations 2 3 % 78 4 % 76 2 % 67 Activities Offered Promotional Tools External Factors Bordeaux Cape Town Firenze Mendoza PortoBilbao Rioja Christchurch Sousth Island Mainz Rheinhessen San Francisco Napa Valley Valparaiso Casablanca Valley
  • 8. The factors correlated with higher spending per tourist are now analyzed. Amongst the category of Investments in Wine Tourism, Market Positioning has the strongest positive impact. Within the dimension of Activities Offered, Lodging is the only factor having a significant impact. In the category of Promotional Tools, wineries expressing that they benefit more from Referrals from wholesalers and perhaps importers are also generating higher revenues per visitor. Again, promoting Sustainably Friendly practices is correlated with les spending per tourist. Factors Correlated with Higher Spending/Tourist In the category of External Factors, Location is the most impactful factor. Use of Internet, easier Access and more Local Facilities are all correlated with a better performance in terms of revenues per visitor. Again, surprisingly, wineries that highly rate Cooperation with Other Businesses have also visitors that spend less. Most Significant and Impactful Factors Market Positioning 6 % 83 Investments in Wine tourism+ + Lodging Activities Offered+ + Referrals from Importers / Wholesalers + + Festivals + Brochures in Hotels + Rely on AOC + Wine Contests + Tourism Exhibits + Sustainably Friendly ­ Effect Factor Categories TableshowsresultsfromQuantileRegrassions.Correctedforsizeeffectandusingcapitalsdummyvariables Pseudo B and Observations 2 Promotional Tools8 % 91 Lacation + + Landmark ­­ Cooperation with other Business ­­ Internet + Access + Local Facilities + External Factors14 % 79 Bordeaux Cape Town Firenze Mendoza PortoBilbao Rioja Christchurch Sousth Island Mainz Rheinhessen San Francisco Napa Valley Valparaiso Casablanca Valley
  • 9. The 2013 edition of the GWC survey has produced some interesting findings for the wineries of Bordeaux. Bordeaux attracts a majority of older tourists and one third of visitors are foreigners. Bordeaux welcomes a smaller percentage of women than other great wine capitals. Cultural investments remain a strong suit and a specificity of Bordeaux wineries. By comparison to 2012, Bordeaux wineries have demonstrated a continued commit­ ment to invest in Infrastructure. At the margin, we find that investments in Market Positioning bring in more revenues per visitor and Improved Services more visitors. Activities that bring in more tourists and spending are strongly complementary to wine tasting and while they seem to be fairly standard in other wine capitals (Gastronomy and Lodging) they may indeed be rare enough in Bordeaux to make a difference at the margin for a number of wineries that use them. Overall, Bordeaux wineries use fairly traditional promotional tools, and the tools that make the most impact in 2013 are promotional tools with "special access", that is "specialized media" and "referrals from wholesalers". The latter category is a bit of a surprise. Managerial Implications and Conclusion Bordeaux Cape Town Firenze Mendoza PortoBilbao Rioja Christchurch Sousth Island Mainz Rheinhessen San Francisco Napa Valley Valparaiso Casablanca Valley
  • 10. Copyright GWCGN. No part of the content of this document is to be reproduced in any media without the expressed consent of GWCGN ­ For any further information: gwc@greatwinecapitals.com One must exercise caution when trying to extend managerial implications from a small sample of wineries to the whole the region. Nevertheless, it appears that there is perhaps room for Bordeaux Wineries to adopt strategies that bring in a younger clientele to the Châteaux. The 2013 findings point already to the success that offering diverse social activities has on increasing the number of visitors. Bordeaux wineries continue to rely enormously on the fame of the region, and testify that Location and the presence of nearby Landmarks can be tourist attractors. But the latter may cannibalize sales linked to wine tourism, as seen in the performance analysis. Paradoxically, wineries that are part of a network of (tourism related) businesses seem to bring in less tourists and revenues per tourist. The latter could be due to fixed (tourist) budgets that get itemized amongst the various trip related activities. This could also be due to an inherent size effect; that is, wineries of a certain size tend to ally with other businesses, to help with promoting their wineries as part of a package. Bordeaux Cape Town Firenze Mendoza PortoBilbao Rioja Christchurch Sousth Island Mainz Rheinhessen San Francisco Napa Valley Valparaiso Casablanca Valley