TRAVEL TRENDS REPORT 2017 Created by
T R AV E L M E D I A
The Latin American Travel Association Travel Trends Report 2017 www.lata.travel
email: info@lata.travel website: www.lata.travel Facebook: www.facebook.com/ LatinAmericanTravelAssociation Twitter: https://twitter.com/latauk All text © Latin American Travel Association. Infographics designed by Freepik & Wanderlust. LATA is a trade organisation and we welcome membership from any company or individual who shares our aims and objectives. Cover images © Dreamstime & © Shutterstock
Researched, analysed, designed and published by: Wanderlust Travel Media www.wanderlusttravelmedia.co.uk Printing by Turville Press, High Wycombe All rights are reserved. Reproduction in any manner, in whole or in part, is strictly forbidden without the prior written consent of the publishers. No responsibility for incorrect information can be accepted. The views expressed in this report are not necessarily those of the publishers. First published 06/2017. Official partner of the FCO’s Know Before You Go Campaign
Welcome to the second edition of the Latin American Travel Association Travel Trends Report. This report draws on market information as well as new research conducted by LATA reflecting on a challenging yet positive year for travel and looking forward to the prospects for travel to Latin America in 2017 and beyond. As the leading organisation for travel to Latin America, LATA has unrivalled access to travel agents and tour operators, plus those organisations’ consumers, making the LATA Travel Trends Report the authoritative piece of research into the UK outbound market. The report looks at how the travel sector is holding up in the wake of the Brexit vote, as well as looking at how Latin America compares as a destination to other parts of the world, and where the opportunities to grow travel to Latin America are. I hope you find the report useful and that it gives you an insight into how you can reach new customers and, ultimately, grow the number of people travelling to and experiencing Latin America.
Tony Mason
Tony Mason, LATA CEO
2 THE LATA TRAVEL TRENDS REPORT 2017
www.lata.travel
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DUTCH ST VINCENT BARBADOS CARIBBEAN GRENADA TRINIDAD CARACAS & TOBAGO VENEZUELA
GEORGETOWN PARAMARIBO
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PARAGUAY
Atacama Desert
São Paulo
ASUNCIÓN
Rio de Janeiro
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CHILE Easter Island
Porto Alegre Córdoba Mendoza
MONTEVIDEO
SANTIAGO Juan Fernández Islands
BUENOS AIRES
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Punta Arenas
O C E A N
FALKLAND ISLANDS/ ISLAS MALVINAS
Ushuaia South Georgia
Cape Horn
4 8 10 12 13 14 15
Overview of the UK outbound market Consumer respondent demographic data Consumer data on travel to Latin America Comparative data on travel to Asia Comparative data on travel to Africa Comparative data on travel to Europe Comparative data on travel to North America
www.lata.travel
16 Comparative data on travel to the Caribbean 17 Comparative data on travel to Australasia 18 Consumer perceptions of Latin America 20 Consumer data analysis 22 Tour Operator feedback 26 Travel Agent feedback 30 Summary THE LATA TRAVEL TRENDS REPORT 2017 3
4000
THE3500UK OUTBOUND 3000 TRAVEL MARKET
Lat Afr Mi Asi No Ca Au
2500 2000
4.6 1500 million
4000 UK residents made 4.6 million visits abroad in March 2017; this has increased by 5% when compared with March 2016*. 3500
1000
3000
Latin America UK residents spent £3 billion on their visits abroad in March 2017, Africa 2500 * a 13% increase when compared with March 2016 . Middle East Asia 2000 North America 0 Caribbean 1500 70.8 2011 Australasia 2012spent £43.8 2013billion on2014 2015 UK residents visits overseas in 2016,2016 which million was 100012% more than in 2015*.
£3 500 billion
500
£43.8 billion
0 There were 70.8 million visits overseas by UK residents in 2016, 2011 2012 2013 2014 2015 2016 which was 8% more than in 2015*.
UK residents nights on holiday abroad (excluding Europe) 2011 - 2016*. 30
Latin America Africa Middle East Asia North America Caribbean Australasia
Million
30
20
20 10
10 0
2011
2012
2013
2014
2015
2016
0
2011
2012
2013
2014
2015
2016
Source – Office of National Statistics International Passenger Survey. *# Source – Adventure Travel Conference 2017. Survey carried out in January 2017. 4 THE LATA TRAVEL TRENDS REPORT 2017
www.lata.travel
3000
Latin America Africa Middle East Asia North America Caribbean Australasia
2500 2000 1500 1000 500 0
2011 2012spend 2013 on2014 2015 2016 UK residents holidays abroad (excluding Europe) 2011 - 2016*.
4000 3500 3000
Latin Am Latin America Africa Africa Middle EastMiddle E Asia Asia North America Caribbean North Am AustralasiaCaribbea
30
£Million
2500 20
2000 10
1500
0
2011
2012
2013
2014
2015
Australa
2016
1000 500 0
2011
2012
2013
Data from the Office for National Statistics (ONS) suggests that consumer spending on holiday travel remains strong, with all overseas regions, except Africa, faring well. Travel to Latin America is showing similar growth rates to other parts of the world. Consumer spending on non-essentials 30 continues to be more robust than might have been expected. Barclaycard’s Q120Consumer Spending Report shows that although spending on essential
2014
2015
2016
items is increasing, driven by inflation and exchange rates, March was an especially strong month for non-essential spending, particularly leisure activities, which are seeing growth at the expense of spending on physical goods, with a decline in spend on electronics and in department stores. Paul Lockstone, Managing Director at Barclaycard, said “Robust growth in spending on ‘niceto-haves’ suggests consumers are still willing to treat themselves, especially on experiences with friends and family.”
10 www.lata.travel 0
THE LATA TRAVEL TRENDS REPORT 2017 5
Lat Afr Mid Asi No Car Aus
THE UK OUTBOUND TRAVEL MARKET Passenger expenditure with Tour Operators 2016 vs 2015#. Greater The same Less Data not available 10
20
30
40
50
60
70
How do your forward bookings compare to this time last year?# Up on this time last year The same Down on this time last year 10
20
30
40
50
60
70
How does your business confidence for 2017 compare to 2016?# More confident The same Less confident 10
20
Source – Office of National Statistics International Passenger Survey. *# Source – Adventure Travel Conference 2017. Survey carried out in January 2017. 6 THE LATA TRAVEL TRENDS REPORT 2017
30
40
50
60
70
www.lata.travel
Tour operators are reporting what are, on the whole, positive results for 2016 and a good start to 2017 with bookings still increasing year-on-year. This has spurred operators into investing in their business, seeking further growth:
75%
of UK tour operators introduced new
itineraries during 2016 .
70%
of UK tour operators invested in staff
training during 2016 .
55%
of UK tour operators increased their marketing during 2016#.
52%
of UK tour operators recruited
#
#
additional staff during 2016 . #
Tour operators surveyed at the start of the year were asked about their expectations for 2017, with 62% expecting bookings to be higher than during 2016. They also expected the investment in their businesses to continue, with further recruitment and staff training, plus an expectation that more itineraries would be introduced. Around half the operators said that their business confidence for 2017 was higher than for 2016. Consumers that were surveyed at the same time reiterated their intention to travel more and spend more in 2017, despite higher prices due to currency fluctuations and the generally uncertain political landscape that Brexit has caused.
www.lata.travel
THE LATA TRAVEL TRENDS REPORT 2017 7
CONSUMER RESPONDENT DEMOGRAPHICS
3,641 consumer
61% Female
respondents 39% Male
Age 65+
18-24
Employment status 64% Employed
17% 55-64
3%
25%
29% Retired
13% 23%
45-54
8 THE LATA TRAVEL TRENDS REPORT 2017
25-34
2% Student 5% Unemployed
19%
35-44
www.lata.travel
How do you typically travel? SOLO
AS A COUPLE
20%
7%
56%
17%
AS A FAMILY
IN A GROUP
What type of holidays do you typically take? All inclusive Beach Cruise Culinary/gastronomic adventure Culture, history & heritage Cycling Diving Family travel Luxury Resort-based Self drive Walking & trekking Wellness Wildlife & nature 10
www.lata.travel
20
30
40
50
60
70
THE LATA TRAVEL TRENDS REPORT 2017 9
RESPONDENTS WHO HAVE TRAVELLED IN LATIN AMERICA Have you ever taken a holiday in Latin America? No – 59%
Yes – 41%
If not, what has deterred you?
Cost Distance/flight length 56%
21%
27%
Concerns over safety
Concerns over health 9% 4%
Not interested in Latin America
Note - consumers could select multiple answers
10 THE LATA TRAVEL TRENDS REPORT 2017
www.lata.travel
Have holidayed in Latin America in the last two years
19%
All inclusive
What elements did your holiday include?
Beach Cruise
Culinary/gastronomic adventure Culture, history & heritage Cycling Diving Family travel Luxury Resort-based Self drive Walking & trekking Wellness Wildlife & nature 10
Percentage of each age group that has holidayed in Latin America in the last two years
20
40
50
60
65+
18-24
25% 55-64
45-54
16%
18%
21% 16%
www.lata.travel
30
25-34
17%
35-44 THE LATA TRAVEL TRENDS REPORT 2017 11
RESPONDENTS WHO HAVE TRAVELLED IN ASIA Have you travelled to Asia for a week or more for leisure purposes in the last 2 years?
What elements did your trip (or trips) include? All inclusive Beach Cruise
32%
Culinary/gastronomic adventure Culture, history & heritage Cycling Diving
Did you consider any Latin American destinations as an alternative for this trip?
Family travel
21% 21% ‘yes’ ‘yes’
Luxury Resort-based Self drive Walking & trekking
If you did consider a Latin American destination, why did you ultimately decide against it?
Wellness Wildlife & nature 10
43%
Price
28%
Availability of suitable holiday
20
30
Length of time travelling
12%
39%
If you didn’t consider Latin American destinations, why not?
70
32%
32%
38% 27%
25-34
30%
86% 45-54
Thought it would be too expensive
7%
Don’t tend to think of Latin American destinations
7%
12 THE LATA TRAVEL TRENDS REPORT 2017
60
18-24
Health or security concerns 55-64
Wanted to go to a specific destination
50
Percentage of each age group that has holidayed in Asia in the last two years 65+
17%
40
35-44
www.lata.travel
RESPONDENTS WHO HAVE TRAVELLED IN AFRICA Have you travelled to Africa for a week or more for leisure purposes in the last 2 years?
What elements did your trip (or trips) include? All inclusive Beach Cruise
18%
Culinary/gastronomic adventure Culture, history & heritage Cycling Diving
Did you consider any Latin American destinations as an alternative for this trip?
11% 11% ‘yes’ ‘yes’
Family travel Luxury Resort-based Self drive Walking & trekking
If you did consider a Latin American destination, why did you ultimately decide against it?
Wellness Wildlife & nature 10
32%
Price
32%
Availability of suitable holiday
20
30
40
50
Length of time travelling
9%
18-24
Health or security concerns
22% 55-64
If you didn’t consider Latin American destinations, why not?
16%
25-34
16%
66% 45-54
Thought it would be too expensive
31%
Don’t tend to think of Latin American destinations
3%
www.lata.travel
17%
20% 17%
Wanted to go to a specific destination
70
Percentage of each age group that has holidayed in Africa in the last two years 65+
27%
60
35-44
THE LATA TRAVEL TRENDS REPORT 2017 13
RESPONDENTS WHO HAVE TRAVELLED IN EUROPE Have you travelled to Europe for a week or more for leisure purposes in the last 2 years?
What elements did your trip (or trips) include? All inclusive Beach Cruise
73%
Culinary/gastronomic adventure Culture, history & heritage Cycling
Did you consider any Latin American destinations as an alternative for this trip?
Diving Family travel
6% ‘yes’
Luxury Resort-based Self drive Walking & trekking Wellness
If you did consider a Latin American destination, why did you ultimately decide against it?
Wildlife & nature 10
46%
Price
20%
Availability of suitable holiday
20
Length of time travelling
9%
74%
If you didn’t consider Latin American destinations, why not?
72%
75%
74% 70%
25-34
71%
63% 45-54
Thought it would be too expensive
25%
Don’t tend to think of Latin American destinations
12%
14 THE LATA TRAVEL TRENDS REPORT 2017
50
18-24
Health or security concerns 55-64
Wanted to go to a specific destination
40
Percentage of each age group that has holidayed in Europe in the last two years 65+
25%
30
35-44
www.lata.travel
RESPONDENTS WHO HAVE TRAVELLED IN NORTH AMERICA Have you travelled to North America for a week or more for leisure purposes in the last 2 years?
What elements did your trip (or trips) include? All inclusive Beach Cruise
23%
Culinary/gastronomic adventure Culture, history & heritage Cycling Diving
Did you consider any Latin American destinations as an alternative for this trip?
7% ‘yes’
Family travel Luxury Resort-based Self drive Walking & trekking Wellness
If you did consider a Latin American destination, why did you ultimately decide against it?
Wildlife & nature 10
28%
Price
32%
Availability of suitable holiday
20%
Length of time travelling
20%
Health or security concerns
Wanted to go to a specific destination
65+
6%
Don’t tend to think of Latin American destinations
7%
www.lata.travel
55-64
40
50
60
18-24
45-54
18%
23%
27% 21%
89%
Thought it would be too expensive
30
Percentage of each age group that has holidayed in North America in the last two years
22%
If you didn’t consider Latin American destinations, why not?
20
25-34
22%
35-44
THE LATA TRAVEL TRENDS REPORT 2017 15
RESPONDENTS WHO HAVE TRAVELLED IN THE CARIBBEAN Have you travelled to the Caribbean for a week or more for leisure purposes in the last 2 years?
What elements did your trip (or trips) include? All inclusive Beach Cruise
12%
Culinary/gastronomic adventure Culture, history & heritage Cycling Diving
Did you consider any Latin American destinations as an alternative for this trip?
Family travel
21% 13% ‘yes’ ‘yes’
Luxury Resort-based Self drive Walking & trekking Wellness
If you did consider a Latin American destination, why did you ultimately decide against it?
Wildlife & nature 10
37%
Price
49%
Availability of suitable holiday
20
30
Length of time travelling
4%
16%
If you didn’t consider Latin American destinations, why not?
9%
13%
10% 12%
25-34
9%
84% 45-54
Thought it would be too expensive
7%
Don’t tend to think of Latin American destinations
9%
16 THE LATA TRAVEL TRENDS REPORT 2017
60
18-24
Health or security concerns 55-64
Wanted to go to a specific destination
50
Percentage of each age group that has holidayed in the Caribbean in the last two years 65+
10%
40
35-44
www.lata.travel
RESPONDENTS WHO HAVE TRAVELLED IN AUSTRALASIA Have you travelled to Australasia for a week or more for leisure purposes in the last 2 years?
What elements did your trip (or trips) include? All inclusive Beach Cruise
10%
Culinary/gastronomic adventure Culture, history & heritage Cycling Diving
Did you consider any Latin American destinations as an alternative for this trip?
Family travel
21% 7% ‘yes’
Luxury Resort-based Self drive Walking & trekking Wellness
If you did consider a Latin American destination, why did you ultimately decide against it?
Wildlife & nature 10
44%
Price
13%
Length of time travelling
30%
Availability of suitable holiday
13%
Health or security concerns
Wanted to go to a specific destination
65+
5%
Don’t tend to think of Latin American destinations
5%
www.lata.travel
55-64
40
50
18-24
45-54
7%
13%
10% 7%
90%
Thought it would be too expensive
30
Percentage of each age group that has holidayed in Australasia in the last two years
15%
If you didn’t consider Latin American destinations, why not?
20
25-34
8%
35-44
THE LATA TRAVEL TRENDS REPORT 2017 17
CONSUMER PERCEPTIONS OF LATIN AMERICA
Strongly disagree
Neither agree nor disagree
Strongly agree
I usually consider Latin American destinations when looking for a long-haul holiday
26%
56%
18%
I find it easy to get good quality information on Latin American destinations
11%
62%
27%
I understand what Latin American destinations have to offer
17%
51%
32%
Holidays to Latin America offer good value for money
9%
76%
15%
Holidays to Latin America offer good value for money – consumers that have not visited Latin America
11%
83%
6%
Holidays to Latin America offer good value for money – consumers that have visited Latin America
7%
66%
27%
18 THE LATA TRAVEL TRENDS REPORT 2017
www.lata.travel
Which of these words and phrases do you feel apply to Latin America? Authentic Consumers that have travelled to Latin America
Beautiful Breath-taking
Consumers that have not travelled to Latin America
Comfortable Distinct culture Easy to get to Exciting Good for families For all seasons Friendly Fun Modern More for the old More for the young Out of the ordinary Quality accommodation Relaxing Romantic Safe Stylish Surprising Traditional Upmarket Value for money 10
www.lata.travel
20
30
40
50
60
70
80
90
100
THE LATA TRAVEL TRENDS REPORT 2017 19
ANALYSIS OF CONSUMER DATA
Consumer respondents were surveyed through April and May of 2017, accessed through various sources including LATA members’ and Wanderlust travel magazine’s consumer lists. In total 3,641 consumers filled out the survey, giving a great insight into travel habits and consumer perceptions. The advantage of such a large number of participants is that there were a good number of consumers that fell into each camp – those that have travelled in Latin America, and those that haven’t. This gives us an insight into how perceptions of Latin America differ between the two groups, and give a steer on where the most significant gaps in perception are, and where tourist boards, tour operators and travel agents need to challenge those perceptions to attract more visitors to Latin America. One recurring theme from consumers and trade is the problem of cost. There is no escaping the fact that holidaying in Latin America comes at a price due to the cost of actually getting to the destination. While there is no easy way to improve the headline price, especially with the pound being so much weaker than in previous years, where there does seem to be an opportunity is in getting across the value for money. There is a noticeable difference in how consumers that have travelled in Latin America rate the value of money of
20 THE LATA TRAVEL TRENDS REPORT 2017
their trip – around 4 times higher than those that haven’t visited Latin America. This is encouraging in that there is scope for improving the justification for paying to go to Latin America. Another area of interest is the idea of ‘friendliness’. There seems to be an idea among the consumers that haven’t visited that Latin America isn’t going to be ‘friendly’, whereas visitors have found that not to be the case, scoring it much higher. Again, this is a key point to pick up on when marketing Latin America. When asked to rank the statement ‘I understand what Latin America has to offer’, 32% strongly agreed. However, when filtering the data and looking only at people that have never travelled to the area, only 15% strongly agreed that they know what Latin America has to offer and 25% strongly disagreed. This suggests a real lack of knowledge about Latin America and that is, undoubtedly, feeding into these ideas of ‘unfriendliness’ and poor value for money. Not surprisingly there are concerns around health and safety, although maybe not as big a concern as expected. There were comments from tour operators and travel agents that often the perceived risks far outweigh the reality – no doubt the relentless race to the bottom of 24-hour news fuels this problem to some extent.
www.lata.travel
It is noticeable that, among the consumers surveyed, Latin America fares very well compared to other parts of the world. Obviously Europe scores very highly in terms of numbers of visits due to it being on the doorstep, but Latin America has seen very similar numbers of visitors to Africa and North America, and significantly more than the Caribbean and Australasia. The breakdown across the various age groups is also fairly consistent with other destinations. The destination that really stands out is Asia – around a third of respondents have holidayed in Asia in the last two years, with over 20% having considered, and discounted, a Latin American alternative. The types of trips taken bear a striking similarity to the types of trips taken in Latin America, with big numbers of Culture, history & heritage trips, Walking & trekking trips and Wildlife & nature trips. It’s undeniable that Asia is more accessible, especially cost-wise, but it also could serve as a useful target audience for marketing. Consumers that have made the step to go on a trip to Asia have shown a willingness to get out of their comfort zone, and shown an interest in the types of activities and experiences that Latin America has to offer.
www.lata.travel
Nearly half of those that did consider a Latin American alternative to Asia quoted cost as a reason for deciding against that alternative – if the poor perception over the value for money of Latin American trips could be overcome, then maybe it might be easier to tempt customers to spend a little extra, which is probably a few hundred pounds rather than thousands, to take a trip to Latin America. It’s worth remembering that a significant proportion of the market for travel to more adventurous destinations are in the over50 age bracket. According to Silver Travel Adviser they account for over 60% of the spend on travel and tourism. They also account for 80% of the UK’s wealth, giving them a huge amount of spending power on discretionary items, travel included. The natural conclusion is that this age group aren’t discounting Latin America simply because they can’t afford it, but because they don’t consider it value for money. It does seem that if Latin America is to grow its tourism from the UK, then a campaign aimed at just how much of an experience you get for your money might go a long way to getting travellers to book!
THE LATA TRAVEL TRENDS REPORT 2017 21
TOUR OPERATOR FEEDBACK Are you a Latin America specialist (more than 90% of trips are to Latin America)? No – 41%
What types of trips do you offer?
Yes – 59%
All inclusive Beach Cruise
Culinary/gastronomic adventure Culture, history & heritage Cycling Diving Family travel Luxury Resort-based Self drive Walking & trekking Wellness Wildlife & nature 10
22 THE LATA TRAVEL TRENDS REPORT 2017
20
30
40
50
60
70
80
90
100
www.lata.travel
What percentage of your Latin American clients fall into the following age groups?
65+
18-24
20% 55-64
2%
29%
10% 23%
25-34
16%
35-44
45-54
How do your clients travel? SOLO
AS A COUPLE
13%
52%
18%
AS A FAMILY
17%
IN A GROUP
Please rank these types of trip in terms of the number of bookings you make to Latin America
Tailor-made itinerary Multi-destination Highlights tour Single destination Group holidays Cruise
All-inclusive
www.lata.travel
THE LATA TRAVEL TRENDS REPORT 2017 23
TOUR OPERATOR FEEDBACK
How do the Latin America bookings you received during 2016 compare to 2015? Up on 2015 The same Down on 2015 10
20
30
40
50
60
70
How do the Latin America bookings you received during Q1 2017 compare to Q1 2016? Up on Q1 2016 The same Down on Q1 2016 10
20
30
40
50
60
70
80
90
100
90
100
What percentage of your Latin America bookings are direct, rather than through travel agents? 0 – 20% 21 – 40% 41 – 60% 61 – 80% 81 – 100% 10
24 THE LATA TRAVEL TRENDS REPORT 2017
20
30
40
50
60
70
80
www.lata.travel
What is the one thing that deters clients from booking holidays to Latin America?
18%
47% cost of
distance/ length of travel
15%
concerns over Zika
trips
6%
other safety/ health concerns
What is the one thing that could help you sell more holidays to Latin America?
27% cheaper
prices/better exchange rate
22%
Destinations showing the most growth over the last 12 months:
Costa Rica Chile
Argentina Peru
13%
better marketing by the destination/ more positive press coverage
better flight connections/ more direct flights
Destinations showing the biggest decline over the last 12 months:
Brazil
Ecuador Mexico
Colombia www.lata.travel
THE LATA TRAVEL TRENDS REPORT 2017 25
TRAVEL AGENT FEEDBACK
254 travel
agents responded
Please rank the following statements: Strongly disagree
Neither agree nor disagree
Strongly agree
I usually consider Latin American destinations when looking for a long-haul holiday for a client who has no fixed destination in mind
15%
55%
30%
I suggest Latin American destinations as possible alternatives when a client already has a destination in mind
22%
58%
20%
I find it easy to get good quality information on Latin American destinations
17%
46%
37%
I understand what Latin American destinations have to offer
20%
47%
33%
9%
62%
29%
Holidays to Latin America offer good value for money
26 THE LATA TRAVEL TRENDS REPORT 2017
www.lata.travel
How confident are you when selling trips of a week or more to the following destinations? Latin America Africa (inc North Africa) Asia Australasia Caribbean Europe North America 10
20
30
40
50
60
70
80
90
100
Rank these destinations in terms of ease of earning commission:
Asia
Europe
North America Caribbean Australasia Africa
Latin America www.lata.travel
THE LATA TRAVEL TRENDS REPORT 2017 27
TRAVEL AGENT FEEDBACK
Which phrases do you most associate with Latin America?
Please rank these types of trip in terms of the number of bookings you make to Latin America
Multi-destination trips Tailor-made itinerary Highlights Tour All-inclusive
Single destination Group holidays Cruise
28 THE LATA TRAVEL TRENDS REPORT 2017
www.lata.travel
What one factor most deters clients from booking holidays to Latin America? 33%
The journey – length of flights, distance, time spent travelling, lack of direct flights
26%
Lack of knowledge about Latin America and what it has to offer
26%
Concerns over safety and health
15%
The cost of holidays to Latin America
What one factor could help you sell more holidays to Latin America?
52% better
knowledge, training, fam trips...
10% better flight options
5% more
cost-effective
options
What could the trade (Tourist Boards, Tour Operators, etc) do to help you sell more holidays to Latin America?
52% training, fam 15% better
marketing/ publicity
www.lata.travel
trips, better product knowledge
12% better
marketing collateral & brochures
THE LATA TRAVEL TRENDS REPORT 2017 29
SUMMARY
Overall the feedback from the trade is fairly positive, with bookings to Latin America continuing to increase year-on-year. Both tour operators and travel agents are finding that cost and distance are a barrier to bookings.
“My lack of knowledge...” When looking at the feedback from operators and agents there seems to be a clear opportunity to increase sales to Latin America. Over 50% of travel agents cite their own lack of knowledge as a major factor when trying to sell Latin America. There is a demonstrable desire to learn about the destination and to have tourist boards and tour operators engage with them to help drive sales. They aren’t just looking for fam trips, but want meaningful training.
“We held a Latin America event a couple of weeks ago and approached the Tourist Boards for any advertising they could provide – pictures, maps, etc, but didn't get any response.” The tour operators that took part in the research indicated that the overwhelming majority of trips are sold direct, suggesting a significant untapped market among travel agent clients.
30 THE LATA TRAVEL TRENDS REPORT 2017
“...greater public awareness – best achieved through well-funded and effectively co-ordinated tourist board efforts, rooted in an understanding of the UK market.” Both agents and operators feel that they would benefit from more tourist board support, particularly in getting over positive messages about Latin America, and trying to counter any bad press that the region gets, which like much news is often out of all proportion to the reality.
“We’ve had to surcharge some existing trips” One of the biggest challenges that operators have faced over the last year has been the fall in the value of sterling and the consequent additional cost of running overseas trips. However, some operators have turned this into a positive marketing message, using no-surcharge guarantees to woo consumers. Anecdotal evidence suggests that even where trips have been surcharged, consumers have been fairly accepting, understanding that this is the result of a matters far beyond the control of the tour operator.
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VIEW FROM LATA Tony Mason, LATA CEO
While Brexit has dominated the headlines over the last year, it has not had an immediate impact on holiday bookings. The full ramifications of Brexit may not be known for many years but in the short term, ONS data shows that customer confidence has held up well with positive year-on-year growth in overseas visitation and tourism spending. The report shows that travel to Latin America is showing similar growth rates to other parts of the world but the perceived cost and distance still remain barriers to booking. The findings demonstrate an appetite for travel to Latin America, particularly among the senior market, representing the largest share of those who have travelled to Latin America in the last two years. This presents a considerable opportunity with the 60+ market now accounting for the UK’s largest share of tourism expenditure as well as over 80% of the UK’s wealth. In a year of change and uncertainty, it is not surprising to see people seek the support and protection offered by a tour operator. The UK travel industry reports an increase in year-on-year bookings to Latin America as well as increases in passenger expenditure and business confidence. Despite positive gains, the industry claims that the main barrier to bookings is the lack of knowledge with over 50% of travel
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agents citing their lack of knowledge as a major deterrent when trying to sell holidays to Latin America. There is a demonstrable desire among the travel trade to learn about the destination offering a valuable opportunity for tourist boards and tour operators to deliver meaningful training sessions to help drive sales and visitation. Looking at competitor destinations, Asia stands out with over 20% of those who have holidayed in Asia over the last two years having considered, and discounted, a Latin American alternative. The types of trips taken bear a striking similarity to the types of trips taken in Latin America, with key themes including Culture, history & heritage, Walking & trekking and Wildlife & nature. Looking forward, if Latin America is to grow its tourism from the UK, a suggestion would be to develop a campaign aimed at just how much of an experience you can get for your money in Latin America while educating the UK travel trade to ensure that they have the tools and product knowledge to convert sales. In the current climate, there are many unknown factors ahead but this research indicates that adopting these two strategies would be a major stepping stone to success.
Tony Mason THE LATA TRAVEL TRENDS REPORT 2017 31
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