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The British - and the Rest of the World - Are Coming!

The British - and the Rest of the World - Are Coming!. Why Market to International Visitors? (2004 Statistics). Have 4-6 Weeks of Vacation Annually Visit US 2 or More Times Annually Stay Longer (Average of 14 Nights) 83% of Nights Spent in Hotels

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The British - and the Rest of the World - Are Coming!

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  1. The British - and the Rest of the World - Are Coming! © 2005 ACRO Corporation

  2. Why Market to International Visitors?(2004 Statistics) • Have 4-6 Weeks of Vacation Annually • Visit US 2 or More Times Annually • Stay Longer (Average of 14 Nights) • 83% of Nights Spent in Hotels • Spend 58% More Than Domestic Travelers: Average $1,431 Per Visitor Per Trip • Many Come in Fall Shoulder Season • Plan Early (95 Days), Book Early (67 Days), Prepay, Don’t Change Plans © 2005 ACRO Corporation

  3. US Destinations Visited by Region2004 • New England 6% • Middle Atlantic 31% • Central 18% • South Atlantic 30% • Mountain 12% • Pacific and Islands 38% © 2005 ACRO Corporation

  4. International Visitors to US by Month (2004) © 2005 ACRO Corporation

  5. Overseas Travelers to the US (2004)Demographics • 55% Male, 45% Female • Average Age: 40 • Occupation: • Professional, Technical, Managerial: 55% • Average Household Income: $83,900 • Nights Spent in US: 14 • US Trips in Last 12 Months: 2 © 2005 ACRO Corporation

  6. Overseas Travelers to the US (2004)Top 5 Activities • Shopping 93% • Dining in Restaurants 86% • Sightseeing in Cities 51% • Visiting Historic Sites 39% • Visiting Amusement/Theme Parks 35% © 2005 ACRO Corporation

  7. Overseas Travelers to the US (2004)US Expenditures by Category • Gifts/Souvenirs 24% • Lodging 22% • Food/Beverage 21% • Transportation 13% • Entertainment 12% • Other 8% © 2005 ACRO Corporation

  8. Top 5 US International Markets2004 Visitors • Canada: 13,854,000 • Mexico: 11,906,000 • United Kingdom: 4,302,737 • Japan: 3,747,620 • Germany: 1,319,904 © 2005 ACRO Corporation

  9. Barriers to US Incoming Tourism • “Fortress America” • 27 Visa-Waiver Countries: Fingerprints, Digital Photographs (to 10/26/06) • Biometric Passports • Proposed North America Passport Requirement • Airline Security • Coming to US a Hassle • Unpopularity of US/G.W. Bush Posture vis-à-vis Iraq © 2005 ACRO Corporation

  10. Top New England International Markets • Canada • United Kingdom • Germany © 2005 ACRO Corporation

  11. America in Microcosm Perceived as Safe, Friendly Common European Heritage Relative Proximity Permits Lower Airfares Rich in History, Culture Perceived as Upscale Destination Famous Fall Foliage Plentiful Outlet Shopping Destination Package Opportunities Competitive Advantages of New England © 2005 ACRO Corporation

  12. States/DMOs Have Relatively Small Tourism Marketing Budgets Travel Agents Only Know About Fall Foliage Distance Makes Beach and Ski Holidays Uncompetitive for Europeans Short Summer Season Little or No Spring Product but Airfares Are the Same as Fall High Boston City Hotel Prices Discourage Gateway Entry Unreliable Weather Competitive Disadvantages of New England © 2005 ACRO Corporation

  13. Competitors to New England • US (Primary): New York, Florida, California • US (Secondary): D.C./Maryland/Virginia, Great Lakes, Carolinas, Pennsylvania • Europeans Take 80% of Leisure Trips Within Europe • South Africa • Australia • Canada – To Launch Major European Campaign 11/05 © 2005 ACRO Corporation

  14. Effect of Currency Exchange Rates On Tourism • Weak US Dollar Favors Exports, Including Tourism • Very Significant Psychologically; Travelers Favor Lower-Cost Destinations © 2005 ACRO Corporation

  15. Exchange Rates (As Of Oct. 19, 2005) 1 Canadian $ = $.85 US 1 British Pound = $1.76 US 1 Euro = $1.19 US © 2005 ACRO Corporation

  16. Canadian Traveler Characteristics • Sensitive to Currency Exchange Rate • Most Who Visit New England Are Within Driving Distance • Proportionately Fewer Overnight Visits • Shorter Overnight Visits • Many Visits to Friends and Family • Spend Less Per Night, Per Visit © 2005 ACRO Corporation

  17. British Traveler Characteristics • Take 4 Holidays/Year • 73% Want Sun • Average Length of Stay in US: 13 nights • On Trips Abroad Spend $1,133/Week on Travel Expenses Plus $696/Person on Incidentals © 2005 ACRO Corporation

  18. German Traveler Characteristics • Visit New England Primarily for Fall Foliage • Interested in History and Culture • Average Length of Stay in US: 20 nights • Daily Visitor Spending in US (per capita): $79 © 2005 ACRO Corporation

  19. International Channels/Partners for Hotels • DMOs • Travel Agents • Tour Operators • Receptive Operators • Hotel Web Site • 3rd-Party Travel Web Sites • Advertising and PR • Trade and Consumer Shows © 2005 ACRO Corporation

  20. Destination Marketing Organizations (DMOs) • Travelers Research and Select Destinations First, Carriers and Lodging Properties Later • 56% of Online Travelers Use DMO Sites for Earliest Trip Research and Planning • Larger DMOs Participate in International Consumer Travel Shows • DMOs Key to Selling Your City as a Destination © 2005 ACRO Corporation

  21. Travel Agents • Usually Located in Traveler’s Country of Origin • 75-80% of European Visitors Use Travel Agents • In Most Cases, Sell Package Holidays Bought from Tour Operators • Traditionally Paid by Commission From Tour Operators, Airlines, Etc. • Consumer Service Fees Increasingly Prevalent © 2005 ACRO Corporation

  22. Overseas Travelers to the US (2004)If Pre-Booked Lodging Pre-Booked Through: Travel Agent 55% Hotel Directly 15% Tour Operator 15% Other 15% © 2005 ACRO Corporation

  23. Tour Operators • Usually Located in Traveler’s Country of Origin • Develop Transportation and Lodging Packages to be Wholesaled to Travel Agents • Major European Operators Have Health and Safety Inspections Done of Lodging Properties • Paid by Travel Agent © 2005 ACRO Corporation

  24. Receptive Operators • Located Near US Destination • Coordinate Between Tour Operator and US Lodging Properties and Other Suppliers • Paid by Tour Operator © 2005 ACRO Corporation

  25. Pro and Con for Hotels of Using Agents and Operators • PRO - A Way to Get Heads Into Beds That Would Otherwise be Empty • CON – Commissions Cut Into Hotel Revenue and Margin © 2005 ACRO Corporation

  26. Example: Working With Travel Agents, Tour Operators and Receptives • Hotel Guest pays $200 to Travel Agent • Travel Agent pays $180 to Tour Operator (10% Commission) • Tour Operator pays $160 to Receptive Operator (11% commission) • Receptive Operator Pays $144 to Hotel (10% Commission) • Hotel Sees 28% Reduction from Rack Rate © 2005 ACRO Corporation

  27. Internet • Most International Travelers Research Online, then Book Through Travel Agents • Online Research Drives Demand for Product • Online Booking Displacing Travel Agents and Tour Operators Who Don’t Add Value • In 2005, Online Will Have 30% Share of Travel Sales • 22% of Brits and 11% of Germans Book All Travel Online • Tradeoff: 3rd-Party Sites, Chain Sites, Hotel Web Site © 2005 ACRO Corporation

  28. Hotel Web Sites • For Internet Success: Be Likable, Be Trustworthy and Make the Right Offers • Site Localized for Target Markets • Index Page Must Make Good First Impression • Number One Factor in Making Hotel Choice is an Attractive Exterior Photo of the Hotel • Offer Good Value • Lowest-Rate Guarantee • Clear Unique Selling Proposition (Differentiation) • Clear Call to Action © 2005 ACRO Corporation

  29. Advertising and Publicity • Print Media More Important Outside US • European Media Tend to be Class-Oriented • Target Regions With Direct Flights Into Your Gateway • Targeted and Relevant Press Releases • FAM Trips For Travel Writers © 2005 ACRO Corporation

  30. Travel Shows • Consumer • Manchester (UK) Holiday and Travel Show – January • Bournemouth (UK) Holiday Show – February • Montreal (Canada) International Tourism & Travel Show – October • Toronto (Canada) Travel & Leisure Show – November • Trade • World Travel Market – London - November • International Pow Wow – US - May • ITB – Berlin - March © 2005 ACRO Corporation

  31. Your Competitive Edge on the Internet • Internet Marketing Strategy and Consulting for Travel, Tourism and Hospitality • Web Metrics, Analytics, Conversion-Rate Optimization • Localization and Translation • Expert Usability Testing • Organic and Pay-Per-Click Search Marketing ACRO Global 36 Sea Street Boothbay Harbor, Maine 04538 USA In North America: 207-633-3934 Overseas: 00 1 207 633 3934 http://www.acroglobal.com David Boggs dhboggs@acroglobal.com © 2005 ACRO Corporation

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