VISIT FLANDERS Promo&ng Flanders-‐Brussels to the US & Canadian leisure market. 25 October 2011
Some sta&s&cs and informa&on about our market 1. OUR MARKET
1. American travel to Flanders – Brussels in 2010 265,000 arrivals 561.000 overnights Americans stay on average 2.1 nights Source: Tourism Flanders – Tourism in ﬁgures 2010
1. American travel to Flanders – Brussels in 2010 # 6 The US is ranked as the 6th most important market aJer the neighbouring countries and Spain Source: Tourism Flanders – Tourism in ﬁgures 2010
1. American travel to Flanders – Brussels in 2010 The American overnights by region 2010 42% Flemish region 58% Brussels region Source: Tourism Flanders – Tourism in ﬁgures 2010
1. American travel to Flanders – Brussels in 2010 The American overnights in Flanders 2010 1% Flanders 13% 86% coast Kust historic cities Kunststeden Flemish countryside Vlaamse regio’s ___________________________________________________________________________ Walloon Wallonië Region NRIT Trendsymposium Source: Tourism Flanders – Tourism in ﬁgures 2010
1. American travel to Flanders – Brussels in 2010 The American overnights in the historic ciNes 2010 350.000 321.245 300.000 250.000 200.000 150.000 100.000 78.975 45.147 50.000 24.867 10.245 2.873 0 Antwerp Bruges Brussels Ghent Leuven Mechelen Source: Tourism Flanders – Tourism in ﬁgures 2010
1. American travel to Flanders – Brussels in 2010 Trend of the American overnights in Flanders-‐Brussels 1994-‐2010 800,000 ‘94-‐’10: +11% 700,000600,000 2010:+10% 500,000400,000300,000200,000100,000 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Tourism Flanders – Tourism in ﬁgures 2010
1. American travel to Flanders – Brussels in 2010 Trend of the American overnights in Brussels 2006-‐2010 350.000 300.000250.000200.000150.000100.000 50.000 0 2006 2007 2008 2009 2010 Source: Tourism Flanders – Tourism in ﬁgures 2010
1. American travel to Flanders – Brussels in 2010 Trend of the American overnights in the other historic ciNes 2006-‐2010 90.000 80.000 70.000 60.000 50.000 40.000 30.000 20.000 10.000 0 2006 2007 2008 2009 2010 Antwerp Ghent Leuven Mechelen Bruges Source: Tourism Flanders – Tourism in ﬁgures 2010
1. American travel to Flanders – Brussels in 2010 Trend of the American overnights in the ﬂemish regions 2006-‐2010 100.000 90.000 80.000 70.000 60.000 50.000 40.000 60% in ‘Groene Gordel’ 30.000 20.000 10.000 0 2006 2007 2008 2009 2010 Source: Tourism Flanders – Tourism in ﬁgures 2010
1. American travel to Flanders – Brussels in 2010 The American overnights by moNve of stay 13% 45% 42% Leisure Congress, conference and seminar Other business Source: Tourism Flanders – Tourism in ﬁgures 2010
1. American travel to Flanders – Brussels in 2010 The American overnights by type of accommodaNon 0% 1% 4% 95% Hotel Camp site Holiday park Acc. for groups Source: Tourism Flanders – Tourism in ﬁgures 2010
1. American travel to Flanders – Brussels in 2010 Seasonality -‐ American overnights in the Flemish and Brussel Region 40000350003000025000200001500010000 5000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Flemish region Brussels region Source: Tourism Flanders – Tourism in ﬁgures 2010
1. American travel to Flanders – Brussels in 2010 Seasonality – American overnights in Antwerp, Bruges, Ghent, Leuven, Mechelen 14.000 12.00010.0008.0006.0004.0002.000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Antwerp Bruges Ghent Leuven Mechelen Source: Tourism Flanders – Tourism in ﬁgures 2009
1. American travel to Flanders – Brussels in 2010 Benchmark – trend American arrivals in Flanders compared to compeNtors 2005-‐2015 15,0% 10,0% 5,0% 0,0% 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 -5,0%-10,0% Western Europe sum competitors Flanders Source: Tourism Decision Metrics
1. American travel to Flanders – Brussels in 2010 Benchmark – trend American arrivals in Flanders compared to compeNtors 2005-‐2015 20,0% 15,0%10,0% 5,0% 0,0% 05-06 06-07 07-08 08-09 09-10 10-11 11-12 12-13 13-14 14-15 -5,0%-10,0%-15,0%-20,0% Flanders Netherlands UK France Germany Spain Italy Czech Republic Source: Tourism Decision Metrics
1. American travel to Flanders – Brussels in 2011 The American market shows great growth rates in 2011: jan feb mrt apr may jun volume 6 volume 6 Trend 10-11 months 2010 months 2011 6 months +12,5% +9,1% +22,3% +22,5% +18,0% +11,5% 265.629 308.987 +16,3% = biggest absolute growth compared to other markets in 2011 Source: Tourism Decision Metrics
1. American travel to Flanders – Brussels in 2011 The American market shows great growth rates in 2011: Source: Tourism Decision Metrics
1. American travel to Flanders It’s the economy, stupid.
1. American travel to Flanders – Brussels in 2010 12 (+1) daily direct ﬂights from North America Carrier New Washington Chicago Atlanta Philadelphia Montreal Toronto York (Canada) (Canada) American Airlines (AA) JFK ORD United / Con&nental EWR IAD ORD (UA/CO) Jet Airways JFK/ (9W) YYZ EWR Delta (DL) JFK (bigger ATL plane) US Airways (US) PHL Air Canada (AC) YUL YYZ Brussels JFK Airlines (2012) New !
1. American travel to Flanders – Brussels in 2010
1. The American traveler to Flanders GEOGRAPHICALLY WE FOCUS ON: Americans who travel to Europe live mostly in the Middle AtlanNc states (30%), the South Atlan&c states (25%) and Paciﬁc states (14%). New York is the largest source of visitors to Europe (17%), followed by California (10.7%).
1. The American traveler to Flanders GEOGRAPHICALLY WE FOCUS ON: ddd FOCUS for now on DIRECT FLIGHTS ONLY From Montreal & Toronto BUT ALSO: Tap into HUGE POTENTIAL of WWI Centenary
1. American travel to Flanders – Brussels in 2010 CONSUMER TRENDS & DEMOGRAPHICS United States demographics are changing: the number of people whose ancestral aﬃlia&ons lie in Europe is declining as a propor&on of the United States popula&on, while others – and par&cularly those with Hispanic roots – are growing. • U.S. adult popula&on 226 million – Age 18-‐24 31% – Age 25-‐34 56% – Age 35-‐50 38% – Age 50+ 41% • Hispanic popula&on on the rise !!! • Passport holders 36%
1. American travel to Flanders – Brussels in 2010 TRAVEL TRENDS & PROSPECTS for the US • J Interna&onal travel con&nues to rebound • J strong growth in arrivals from the US + 16% • J slightly beier Euro-‐dollar exchange rate • L average length of stay is declining > indicates mulN-‐leg European trips with shorter stays in each desNnaNon • L weak economy, slow US growth (jobs and housing markets) • L high airfaires • Cruises are an important segment of the American travel market and cruises remain popular, though in decline since some years ago. • River cruises are the next big hit on the travel market!
1. Canadian travel to Flanders – Brussels in 2010 CONSUMER TRENDS & DEMOGRAPHICS for CANADA • Canadian popula&on: 33.6 million – just three people per km2. • Popula&on is increasing, but is ageing fast. • 55+ popula&on will increase by 16%, while 15-‐44 will decline slightly. • Strong net immigra&on (over 200,000/year) • More than 80% of Canada’s popula&on live in towns and ci&es within 250km of the US border. • 45% live in the largest metropolitan areas Source: MRI Fall 2009
1. Canadian travel to Flanders – Brussels in 2010 TRAVEL TRENDS & PROSPECTS for CANADA • J Canadians are more European centric than Americans and more culturally educated. • J Strong currency has caused outbound travel to rise strongly in recent years. • J One third of overseas trips were to Europe! • J Even with the crisis, travel to overseas des&na&ons has con&nued to rise. • Passport holders 50% and rising. Source: European Travel Commission: European Tourism 2010 -‐ Trends & Prospects Q3/2010
Who’s our target? And what makes them &ck? 2. OUR CUSTOMER
2. Traveler proﬁle & mo&va&ons Image of Europe 1. Europe’s history and historical airac&ons. 2. Culture. Europe oﬀers not only a culturally rich experience but also a diversity of cultures in close geographic proximity. 3. Gastronomy was another common theme. Europe’s great food, good wine, and ﬁne dining. 4. Oﬀering experiences that cannot be found in the US: Europe is diﬀerent, but not too diﬀerent—a comfortable desRnaRon for Americans. 5. Ancestral Nes and America’s shared values and history with Europe.
Name 5 words that describe Europe to you: Source:VisitEurope User Survey 2011, ……….but expensive! TEAM/Yellow Railroad/TNS-‐RI
EmoNonal associaNons with Europe: Source:VisitEurope User Survey 2011, TEAM/Yellow Railroad/TNS-‐RI
2. Traveler proﬁle & mo&va&ons Today, travelers are seeking…. • Experien&al travel – I am where I have been • « Bragging rights » • Authen&c experiences – cultural auten&ity and interac&on with locals – « honorary local » • New experiences – oﬀ-‐the-‐beaten track, insider &ps, money can’t buy Europe scores high on these aspects.
2. Traveler proﬁle & mo&va&ons Barriers for visiNng Europe • Cost – though ﬁnancially resilient • Time • Complexity / Fear of missing out • Safety • Compe&&on – growing popularity of Central and South America
2. Traveler proﬁle & mo&va&ons Image of Europe • Europe is a resilient des&na&on in the USA. • Europe is the region most selected by Americans travelling abroad (41% of total overseas travel). • Europe is an aspiraNonal “must-‐see” des&na&on. This enables Europe to bounce back auer economic shocks. • Europe’s appeal lies mainly in its history, followed by its diverse cultures, scenery and gastronomy, as well as its friendly people, with whom Americans can communicate (largely in English). • Europe is both sophisNcated and accessible. Europe oﬀers a lot in a small geographical space; and it is rela&vely safe. • Europe’s image is dominated by ciNes, par&cularly iconic ci&es in the most visited countries (e.g. London, Paris, Rome, Athens).
2. Traveler proﬁle & mo&va&ons INFORMATION SOURCES AND BOOKING TRENDS • Family and friends (52%) • Travel guidebooks (46%) • internet search engines (39%) – over 105 million Americans use the internet to plan travel … Also inﬂuenced by: • “Must-‐see world renowned des&na&ons” • Travel agency recommenda&on • Appealing adver&sing as preferred sources of "ideas and inspiraNon" when planning leisure travel.
2. Traveler proﬁle & mo&va&ons INFORMATION SOURCES AND BOOKING TRENDS • Most group travel, most cruises, many complicated i&neraries and even the majority of hotels are s&ll booked through a travel agent. • 62% of consumers rated their travel agents as very inﬂuenNal over their choice of vaca&on. • The home based channel is emerging as a force in travel distribu&on • Americans want ‘to do Europe properly’. Less a last-‐minute deal decision. Though we see later booking…
2. Traveler proﬁle & mo&va&ons FOUR MAJOR CHANNELS DOMINATE THE US TRAVEL MARKET Two online channels: • supplier-‐direct websites 23% • online travel agencies (OTAs) 16% Two oﬄine channels: • central reservaNon/walk-‐in 30% • travel agencies/travel management companies(TMCs) 31%
2. Traveler proﬁle & mo&va&ons Cruises remain popular • All-‐in package • Degree of luxury and indulgence • Gezng a taste of Europe – covering diﬀerent loca&ons and regions
2. Traveler proﬁle & mo&va&ons Americans travel to:
2. Traveler proﬁle & mo&va&ons Our compeNtors THE USUAL SUSPECTS THE NEW KIDS ON THE BLOCK • UK / London • Russia / Moscow • France / Paris • Ukraine / Kiev • Italy / Rome, Milan • Hungary / Budapest • Germany / Berlin, Frankfurt, • Scandinavia / Stockholm, Helsinki, Hamburg Kopenhagen • Spain / Barcelona, Madrid, Sevilla • Czech Republic / Prague • Ireland / Dublin • Bal&c countries: Estonia / Talinn • + Turkey!! 9 Counter the growing compeNton from desNnaNons in the East ! 9 And also: piggyback on other European (neighbouring) desNnaNons, such as Amsterdam, London and Paris !
2. Traveler proﬁle & mo&va&ons Who travels to Europe? Top ten emerging overseas desNnaNons, 2011 Rank DesNnaNon 1. Shanghai 2. Taipei 3. Beijing 4. Tokyo 5. Ho Chi Minh City 6. Moscow 7. Kiev 8. Kuala Lumpur 9. Singapore 10. Hong Kong
2. Traveler proﬁle & mo&va&ons Who travels to Europe? Most popular internaNonal desNnaNons of Virtuoso’s clients, 2011 1. Italy 2. France 3. South Africa 4. Australia 5. Mexico 6. England 7. Costa Rica 8. Turkey 9. Egypt 10. Argen&na
2. Traveler proﬁle & mo&va&ons Who travels to Europe? • Most Americans travel as couples, they tend to be middle-‐aged – older, wealthier and beier-‐educated than the average. • There is some evidence of a growth in mulN-‐generaNonal travel (i.e. grandparents, parents, children).
2. Traveler proﬁle & mo&va&ons P o 95% of all Americans stay in a hotel Americans have high expectaNon of rooms and service levels !
2. Traveler proﬁle & mo&va&ons SPENDING BEHAVIOUR Americans spend 140 dollar/day on a European trip
2. Traveler proﬁle & mo&va&ons Important for American travelers: • Americans want to feel safe, but they also want to travel oﬀ the beaten track – SAFE ADVENTURE • They seek value, which translates as cost-‐consciousness (not the same as cost reduc&on), but mostly they seek ADDED VALUE. • CONVENIENCE is important – take the complexity and the hassle out of travel eg. Cruises
2. Traveler proﬁle & mo&va&ons Focus on 2 target groups, each with their own needs/moNvaNons: 1. Babyboomers 2. Young travellers / students (on a secondary level)
2. Traveler proﬁle & mo&va&ons Babyboomers: 50+ (possibly extending towards 45+ ) “In the esRmaRon of U.S. travel trade representaRves, baby boomers are oVen repeat visitors to Europe and as such want to experience Europe in more depth by geWng oﬀ the beaten track and experiencing more sophisRcated acRviRes. Experiences such as wine tasRng, ﬁne dining, and spa visits are perceived as being appealing to this age segment.”
2. Traveler proﬁle & mo&va&ons Babyboomers: 45-‐50+ • They are big spenders. • They are ac&ve, highly educated and are looking for des&na&on with a lot of culture. • They have no living-‐in children. • They have more Nme to travel and are most likely to travel long-‐haul. • They have already some European travel experience, and are willing to try something new/diﬀerent. ( They are sophis&cated travelers looking for AUTHENTIC EXPERIENCES ( Catch their interest with themed i&neraries & exclusive and/or luxury oﬀers
2. Traveler proﬁle & mo&va&ons Students / young travelers “In the eyes of the travel trade, younger American travelers want a more dynamic European experience, focused on nightclubs, acRviRes, and interacRons with other young people. Respondents also noted that younger travelers are inclined to visit mulRple countries on a single trip and tend to choose less expensive travel opRons.”
2. Traveler proﬁle & mo&va&ons Students / young travelers • They are the travelers of tomorrow. • They have Nme to travel (pre-‐ﬁrst job) but have less money. • Low cost/VFM is a good selling point. • They want to discover Europe. • They are highly mobile, visit mul&ple countries ! • University students travel to Europe for a rela&vely long stay + travel around by public transport (they are very mobile). • They are probably ﬁrst Nme travelers to Europe. ( They look for VALUE ( Make it aﬀordable for them to come to Flanders as the crossroads of Europe.
2. Traveler proﬁle & mo&va&ons SOME QUOTES • “I think there’s a constant herewith Europe as one of the more a[racRve places to go in the world. What you have is safety, comfort and value.” Europe is and will remain a popular desRnaRon
2. Traveler proﬁle & mo&va&ons SOME QUOTES • Americans like to go to places they already ‘know’, not necessarily having travelled there before. We also love having the security of an iRnerary that lists out Rome, Florence and Venice, because we have heard of those places and the icons associated with it. The real highlights of that tour will probably be Sienna and those li[le places that people have never heard of – places to discover. But they will never buy a whole tour of places to discover. You do have to sell the icons.” Flanders is not an iconic desRnaRon (yet).
2. Traveler proﬁle & mo&va&ons SOME QUOTES • “The average traveller, for instance to the Caribbean, is going to say: ‘I want to go to the Caribbean’, and my staﬀ will say, ‘What is the experience you are looking for? Are you looking for swimming, beach, culture?’ Finding everything out about the client and then saying, ‘Ok, St.Barts or St. MarRn would be perfect for you. In Europe, usually, people usually come in and say, ‘I’m interested in a Tuscan vacaRon’,or ‘I’m interested in the Amalﬁ coast,or I’m interested in going to Provence.” Experience and themaRc approach is a prerequisite (speciﬁc needs)
2. Traveler proﬁle & mo&va&ons SOME QUOTES • “The most incredible thing to me, and several of us – the € vs. the $. You would think the traveller to Europe would lessen year aVer year. We are not seeing that at all. If we had 100 more villas in Italy, we could sell them.” Financially resilient travellers
2. Traveler proﬁle & mo&va&ons SOME QUOTES • “It’s the experience that Europe can bring. It really inspires you. I’ve been and it was very interesRng. Like the cooking class in Italy. In Luca I found a wine cellar that was 200 yrs old. Walking down you saw wines from the 1800s. That is stuﬀ that people look at and go wow! It’s about the experience that the European market can create for the American traveller. It’s almost second to none.” Make it real!
2. Traveler proﬁle & mo&va&ons SOME QUOTES “One thing that some of the people in the package business have talked about: the tradiRonal bus tour is not strong as it was, where you do 3,4,5 countries in 2 weeks. What is surprising is, what is successful is river cruising. And it’s the river bus tour. You’re taken care of, you unpack once, there’s a program. No stress. It too is compeRRvely priced. So that’s a shiV in what people are looking for. There is a trend to shorter trips, like a 1-‐week trip to Europe.” River cruising on the rise
2. Traveler proﬁle & mo&va&ons SOME QUOTES “We don’t teach geography very well. The idea of place, distance and relaRonship. When you have something like Chernobyl, people tend to think it was in the suburbs of Berlin.” Explain where Flanders is.
2. Traveler proﬁle & mo&va&ons SOME QUOTES “I read recently that across the US, Americans had, on average, 18 vacaRon days in 2010 and took 14. Most of what we do now is less than 14 days. 14 of 18 – in tough Rmes people don’t wanna be away from the oﬃce for too long. They don’t want to be not needed!” “Even 15 years ago, selling an 8-‐day tour to Europe was somewhat unheard of. Now, 8 or 9 days is not just the norm, but one of the be[er selling things. The grand excursion is oﬀ the books.” 1 week package to Europe (5-‐7 nights)
What do we focus on to sell Flanders-‐Brussels? 3. DESTINATION FLANDERS
3. Des&na&on Flanders The American traveler is geographically – and someRmes culturally -‐ challenged.
3. Des&na&on Flanders I’m thinking of going Flanders is the to Bruges or Brussels. Flanders… isn’t that in region in the North Let’s have a look on England, Germany, of Belgium. www.visi|landers.us Holland…? I have been to I know Belgian Bruges. But I have I had a great &me in chocolate. But I never been to Flanders, superb food, have never heard of Flanders. and such beau&ful Flanders. ci&es !
3. Des&na&on Flanders ImplicaNons for product development: Ò 1. Oﬀer authenNc experiences – make it real 2. Claim what we do best – we own it because we say so 3. Think out of the box – make it exciNng
An overview of our trade strategy & ac&vi&es 4. STRUCTURE OF THE TRAVEL MARKET
4. Structure of the US travel market WE FOCUS ON: 1. Tour operators 2. On-‐Line Tour Operators 3. Travel Agents (& Consor&a) 4. Aﬃnity (special interest) Groups
4. Structure of the US travel market 1. TOUR OPERATORS • Tour operators are the DECISION MAKERS. • Essen&ally, they are the ones we want to target. • Building and expanding our trade book • STRATEGY • Target TO’s with Flanders in their por|olios > encourage to increase oﬀer. • TO’s already oﬀering Europe > persuade them of the value of oﬀering Flanders. Some of the key TOUR OPERATORS include…
4. Structure of the US travel market 2. ON-‐LINE TOUR OPERATORS • Used for researching des&na&on and booking • Growing popularity of on-‐line • Though many people s&ll prefer to use the services of a travel agent • BIGGEST ON-‐LINE TOUR OPERATORS include:
4. Structure of the US travel market WorldWide Unique Visitors (000) 4.8m 3.9 0.9 4.5 7.1 43.7m 9.4m
4. Structure of the US travel market 3. TRAVEL AGENTS (CONSORTIA) • Travel agents are the INFLUENCERS. • They are also easier to target. • Travel agents’ sales represent 41% of the total travel market ! • Travel agents book: – 77% of all cruises – 73% of all packaged travel – 55% of all airline &ckets • Use of Travel Agents is up among aﬄuent users – 54% used an agent to select a des&na&on – 33% counted on their travel agent to help select a tour company/ vaca&on • Also: strong home-‐based travel agent channel
4. Structure of the US travel market 3. TRAVEL AGENTS (CONSORTIA) A consorNum is a middleman who creates economies of scale for travel retailers and suppliers. In exchange for the consolidated sales volume of the group’s membership, suppliers oﬀer a more lucra&ve commission structure. – VIRTUOSO (members 350 agencies with 600 loca&ons in 22 countries) – Signature (members 190) – Ensemble Travel Group (members 850 in US and Canada) – Vaca&on.com (members 5000) – NEST (members 600)
4. Structure of the US travel market 4. AFFINITY GROUPS & SPECIAL INTEREST • Tap into niche segments – forces us to be speciﬁc about our product • Special interest tour operators are LOW HANGING FRUIT. • They represent very interested – and cultured – travelers. • Focus on ‘special’ experiences, lecturers, entrance, behind the scenes… • Travel programs of museums: – Metropolian Museum of Art – The Natural History Museum – The WWI Museum – … • Academic Arrangements Abroad
5. The Media Landscape -‐ SPECIALIST CONSUMER
5. The Media Landscape -‐ ON-‐LINE Too many to menNon…. Tripadvisor etc… We need to stay abreast with the move from print to on-‐line 1. PRINTED PRESS > bloggers (clipping report!) 2. MEDIA & CAMPAIGNS> websites, social media, communi&es eg. Beer Advocate, AFAR community, but also Google and Facebook ads 3. C2C: our own Facebook page, website and Twiier