Issue 26 January/February 2009 £2.75
Pound prompts rise in visitors
Tourists may force change in charging By Nicola Hyde TOURISM businesses could soon have to overhaul the way they charge for holidays in order to attract cash-conscious travellers. Studies have revealed that potential tourists are making the most of a squeezed market – and expect many operators to give them something for nothing. According to the Global Trends Report, in association with Euromonitor International, clients will be naming their own price or expecting services for free. Fiona Jeffery, chairman of World Travel Market, said: “As economic activity is likely to slow until 2010, innovative means of saving money will become more attractive. “However, free or bargain price offers that receive a positive reaction hopefully spark clients to return and make profitable product buys. "These new pricing models making waves include 'pay what you want,' auctions and 'core free goods.' “They often pose a threat to competitors, but also give brands the chance to engage with consumers
and build loyalty. “Profitability remains the most important underlying factor – protecting revenues in uncertain economic times.” Fiona said that free city tours are geared to generate business for the paid ones and there can be nearly 50 per cent referral rates. Innovative marketing and pricing changes already hitting the UK market include: A network of 320 hotels where accommodation is free, but guests are required to pay for breakfast and dinner. A super saver scheme started in the United States which lets hotels invite tourists to ‘name their own price’ via blind auctions. Social networking sites such as couchsurfing.com showcases the ‘no-cost, full-service’ offer and predominately appeals to single under 30s( 75 per cent) and almost 50 per cent of below 25s. The report predicts that travel networking websites and activities are expected to grow steadily over the next five years and should become a major trend for the industry.
Actor Sean Connery has done the voiceover for a film which aims to encourage more golf tourism to Scotland. The Scotland: Home of Golf movie premiered at the Ryder Cup in Kentucky and promotes the country’s position as host to the Ryder Cup in 2014. Enterprise minister Jim Mather said the US is Scotland's number one market for golf visitors, with an annual estimate of 45,000 visitors spending £70m. First minister Alex Salmond said: “In our drive to build economic opportunities in America, this film will be crucial in helping us to spread the message that Scotland, the home of golf, is open for business.”
NEW research has shown a resurgence in the number of Americans visiting the UK after the dollar strengthened against the pound. Cheapflights Ltd said figures for October and November showed a reversal in trends – inbound trips to London and Manchester had improved while outbound trips to New York and Orlando have dropped. It revealed searches for inbound flights have rocketed by 23 per cent but outbound queries have dropped 21 per cent. Cheapflights CEO Chris Cuddy said: “Last year it was sale time for Brits visiting the US and now the trend has reversed. “Americans are returning to the UK and have promoted London once again to a top ten searched destination.”