Background Knowledge
The European Economy •
Although there is uncertainty across Europe on the financial markets, with the recent interest rate cuts from the world’s key central banks, the mood seems to have calmed
•
With European equity markets bouncing back, there is some sense of normality
•
Consumer confidence is slowly returning
Credit Crunch – What Credit Crunch? “ We may be panicking about our mortgage, trading down at restaurants restaurants and fighting over our fuel bills, but however tough things get, we still wont give up our annual holiday.” •
Mail on Sunday 5th October 08
“The prospect recession grips everyone with a feeling of doom and gloom, but Brits have a tendency to embrace holidays as a cure to darker moods” •
The Times October 08
Holidays will be one of last things that people are willing to cut from their expenditure, They are a necessity rather than a optional requirement
European Audience •
There are over 3 million millionaires across Europe
•
In Britain alone 1.6 million people have a disposable income over £100,000 per year
•
Over five million people in the UK have a salary of more than £50,000 per annum
•
In 2006 there were 28,000 Ultra Net Worth individuals worth more than £18 million each
Luxury Travel • • • • •
The biggest growing market in travel with a growth rate of 50% per annum The global luxury travel industry now comprises an estimated 25 million annual arrivals accounting for 25% of international tourism spend 390 million trips taken in 2007 by Europeans Spending £300 billion Average spend £7,500 per holiday Bookings are still extremely strong for 2008 and the outlook for 2009 is very favourable for all markets
Opportunities • • • • • • • •
The UK and European markets are fully aware of the weakening dollar exchange rate Travellers are therefore planning to travel outside the euro zone to beat the currency exchange People looking for value for money destinations Desire for new experiences /destinations European travellers now taking one main long-haul holiday Increase of 4% annually in long-haul travel Increase in spend on high-end accommodation and localised activities Average stay increasing to 11 nights
Europe vUSA Europe • • • •
Population of 728 million Over 80% of Europeans own a passport 389 million Europeans will travel overseas Europe generates over 56% of the 639 million outbound trips taken worldwide
USA • • • •
Population of 301 million 20% of Americans own a passport 25.1 million Americans will travel overseas USA generates 24% of outbound trips taken worldwide
Visitor arrivals into the Caribbean 2007
• • • • • • • • •
European Arrivals
•
UK Arrivals
Anguilla 10,795 Antigua 115,448 Barbados 252,782 Caymans 20,267 Curacao 121,427 Grenada 41,792 Jamaica 288,894 Saint Lucia 88,828 Trinidad 60,846
• • • • • • • • •
4,568 97,000 223,906 15,206 2,801 33,827 185,657 79,180 43,738
Total Worldwide Arrivals - BVI 247,964 (2006) No breakdown of markets
Airlift Overview • • • • • •
•
All non direct flights to Antigua or San Juan Average of 2 stops Flight times- 23 to 33 hours to San Juan or 19 to 33 hours to Antigua Italy – British Airways, American Airlines, Delta Airlines, US Airways, Condor Air from Rome, Venice, Naples and Milan France – British Airways, Condor Air, Delta Airlines, American Airlines and Continental Airlines from Toulouse and Paris Scandinavia – SAS, American Airlines, British Airways, Virgin Atlantic, Condor Air from Copenhagen, Oslo and Helsinki Continental Airlines and Delta Airlines from Stockholm Delta and American Airlines from Prague, American Airlines via Budapest, Delta Airlines, American Airlines and Air Berlin from Warsaw
Italian Travel Trends • • • • • •
World’s 8th largest economy and 4th within Europe One of the Europe’s fastest growing markets in 2006, up 7% Key motivators include beach, spas, good quality hotels & culture Shift towards travel between October to December Tend to book their holidays 4 months in advance Increase in purchasing holidays using the internet
Italian Travel Trends cont. • • • • •
Italians receive 4 to 6 weeks annual leave entitlement Tend to fall into 25 to 55 year old age range Average expenditure per trip is Euro 1460 Average duration of stay is 9 nights The Northern regions of Italy generate the most outbound travel as they are the most industrialisedand affluent regions
French Travel Trends • • • • • •
World’s 5th top market in terms of international spend 20% increase in Long Haul holidays last year French demand more personalised travel according to their particular lifestyles and values One in every five Euros spent online is booking travel Key motivators include good weather, culture, high quality hotels Luxury Travel doubled in 2007
French Travel Trends cont. • • • • • •
Five to six weeks annual leave entitlement Average holiday duration is 10 nights The French tend to travel between May and August 53% tend to book their long haul travel in advance, usually after New Year 21% will book their travel online Travel agents are still an important method of booking and source of recommendation
Scandinavian Travel Trends • • • • • •
Currently one of Europe’s largest source markets to Southeast Asia representing over one million travellers per year to the region Desire for new experiential/eco friendly destinations Tend to be from major urban cities Relaxation and the beach are the key reasons for taking a holiday Very environmentally conscious, highly independent and experienced travellers Expect value for money and have very high expectations of standards for accommodation and attractions
Scandinavian Travel Trends cont. • • • •
Receive four to six weeks annual leave entitlement Average duration of stay is 9 nights Tend to travel from May to September Most holidays are researched and booked online although the travel trade still plays an important role
Czech Republic, Hungary and Poland Travel Trends •
• • •
Now established members of the EU, outbound travel has been increasing due to the greater freedom offered by EU membership - Poland (17%), Czech Republic (7%) and Hungary (5%) Poland is the 23rd largest economy in the world and the 6th in Europe Beach destinations remain the most popular type of holiday Residents of the major urban areas and the more affluent tend to travel
Czech Republic, Hungary and Poland Travel Trends cont. • • •
Average duration of stay is 10 nights The peak time for holidays is July and August, although the shoulder months of May, June and September are gaining popularity Over 50% of Eastern Europeans use the internet to plan and book their travel
Key Trade Shows in Europe • •
• • •
Holiday World, Prague - Central Europe’s premier Tourism event is held at InchebaExpo Prague Exhibition Grounds over 5 to 8February ITB (International Tourism Bourse), Berlin – the world’s largest travel trade show, held at the fairgrounds of MesseBerlin over 11 to 15 March Top Resa , Paris – the key meeting place for tourism and travel professionals, held at Porte de Versailles over 22 – 25 September WTM, London – the second largest trade show, held at Excel over 9 – 12 November International Luxury Travel Market, Cannes – the leading annual trade event for the global luxury travel community, held at Palais des Festivals de Cannes in December
Key Consumer Shows in Europe • •
•
•
London International Boat Show, London– celebrates it’s 55th anniversary in 2009, held at Excel over 9 - 18 January Vakantiebeurs, Netherlands– regarded as the top trade and consumer travel fair in the Netherlands – attracts over 135,768 visitors. Held in Utrecht over 14 -18 January Holiday & Travel Show, UK– the UK’s leading holiday and travel exhibition attracts over 120,000 visitors. Held at Manchester Central (16 - 18 Jan) and Glasgow’s SECC (13 - 15 Feb) FITUR 2009 , Spain – is Spain’s premier travel and tourism fair. It is also the third largest in Europe after ITB and WTM, attracting some 150,000 professional visitors every year. Held in Madrid over Jan 28 to February 1
Key Consumer Shows in Europe • • • •
•
Destinations UK - Held at Earls Court, London over 5 to 8 February and Birmingham’s NEC from 27 Feb to 1 March National Wedding Show, UK – the UK’s biggest “wedding department store” held at Olympia over 22 - 24 February LIDS 2009 (London International Dive Show), UK – over 13,611 visitors, held at Excel over 28 - 29 March Holiday World Dublin – Trade and Consumer Show, leading Irish Holiday show in excess of 58,000 visitors. Held at RDS over 23 - 25 January TT Warsaw Tour & Travel – second largest international travel and tourism show in Poland held over 24 – 26 September