Canada’s Outbound Travel Market

1. Canada’s Outbound Travel Market David Redekop The Conference Board of Canada

2. What we are going to talk about • Canada’s travel market performance • How Massachusetts has performed • Characteristics of Canadians visiting Massachusetts • Opportunities and prospects

3. Canadians 3 times more likely to take overseas leisure trip The number of overseas leisure trips taken by Canadians in 2011 was equal to 23% of the population. Sources: USTTI, Statistics Canada and CBoC.

4. Americans would have made 85 million overseas trips in 2011 if they travelled as much as Canadians(Millions of overseas trips made in 2011 vs. would have made if ratio of trips to population were same as in Canada) Source: US OTTI; Statistics Canada and the Conference Board of Canada calculations

5. Canada: Total Outbound leisure trips(‘000 of outbound leisure trips, all destinations) Recession 5% CAAGR

6. Canada: Outbound leisure trips(% share outbound leisure trips)

7. Seniors will out number children by 2017 – first time in history Thousands of Canadians 14 and under and 65+ by year Sources: Statistics Canada and CBoC calculations

8. % of Total Outbound Leisure Trips made to US by age group The older Canadians get, the more likely they are to visit the US when travelling outbound for leisure purposes.

9. Share of Trips by Air to US Growing(% share of trips to US from Canada by mode) Forecast Source: Statistics Canada; CBoC

10. US on five year upward trend(‘000 of 1+ nights leisure trips to US from Canada) 2009 Recession 5% - 6% Source: Statistics Canada; CBoC

11. Performance of Massachusetts vs. other US N.E. States

12. Massachusetts has performed well since 2003 CAAGR visits 2003 to 2011 Sources: Statistics Canada and CBoC.

13. Canadian Visits to Massachusetts 3%-4% Recession

14. Quebec & Ontario Key Geographic Travel Markets Sources: Statistics Canada and CBoC.

15. Quebec/Auto; Ontario/Plane % of visits to Mass. In 2011 by mode CAA Carriers

16. PAX from Canada to Logan Int’l. +6.4% 74% 71% 67% 62% 57% 74% of PAX to Logan came from YYZ in 2012 – up from 57% in 2008 or pre Porter. Source: US BTS 2008-July 2012; CBoC forecast from August 2012 through 2013

17. Modest Economic Growth forecast for Main Source Markets % growth in Real GDP Sources: CBoC forecast

18. 63% of Mass. visits from Ontario by travellers 45+; 44% from Quebec % of visits in 2011 by age group Quebec Source: Statistics Canada and CBoC

19. Mainly Adult Visit Market • Quebec: 66% of visits to Mass. by adults only, 21% by adults and children • Ontario: 84% of visits to Mass. by adults only; 10% by adults with children

20. 2 in 3 staying in Commercial Accommodation

21. Short Stay Travel Market8 in10 stay 1-6 nights Share of visits to Mass. in 2011 by # of nights stayed

22. ‘000 of Canadians that visited N.E. USA at least once past 3 years by household income High Income Canadians Key Travel Market Source: PMB 2012

23. Spend $400 - $500 per visit when visiting Mass. • Quebec: $383 CDN per person visit; $105 per person visit night when visiting Massachusetts • Ontario: $544 CDN per person visit; $125 per person visit night when visiting Massachusetts • Maine: $366 CDN per person visit • N.Y.: $372 CDN per person visit • Vermont: $216 CDN per person visit • N.E. $332 CDN per person visit Source: 2011 Statistics Canada and CBoC

24. The Opportunities for Massachusetts

25. Leisure main purpose for Quebec; Business travel important for Ont. Purpose of visit to Mass. in 2011

26. Activities Quebec & Ontario Visitors engaged in while in Mass. Source: Statistics Canada 2011 and CBoC

27. Q2 & 3 key visit periods for Quebec & Ontario Share of visits to Mass. in 2011 by quarter of visit

28. Geographic Markets • Ontario and in particular Toronto and south • Air more than auto market in Ontario • Quebec and in particular Montreal but auto more than air market

29. Demographic Segments • 45+ in all geographic markets • Professionals, managers • High income $100k+ • Mainly adults without children – singles, couples, adults travelling with friends

30. Activity Based Segments

31. Sports: Armchair Athletes Armchair athletes like sports, but only through the media. They follow their chosen sport through the season. They rarely exercise and do not consider themselves well informed about nutrition. • Toronto 940k fall in the “armchair athletes” category • Montreal 663k “armchair athletes” • Ottawa 236k “armchair athletes”

32. Sports and Active Segment • Spectator sports – professional hockey, basketball, baseball, football • Baseball: 29k watched baseball 10+ times in Toronto; 20K in Montreal. • Basketball: 22k watched basketball 10+ times in Toronto; 14k in Montreal. • Hockey: 39k watched hockey 10+ times, 66k in Montreal • Boating: 84k own a sail boat in Toronto – more than in Vancouver • Toronto and Montreal residents twice as likely to watch baseball or basketball as average Canadian resident (PMB)

33. Culture Segments This group reads a lot about travel and vacations, and enjoy trip planning. They are likely to choose exotic destinations. Their interests revolve around concerts and galleries, crafts and gourmet cooking. Market Size of “Cultured & Active” segment: • Toronto 1.2 million residents • Montreal 650 thousand residents • Ottawa 240 thousand residents

34. Culture Segments • Live theatre: 65k attended a live theatre event 10+ times in Toronto; 58K in Montreal. • Classical music: 31k attended a classical music event 10+ times in Toronto; 16k in Montreal. • Art gallery: 349k attended an art gallery 10+ times, 35k in Montreal • High quality restaurants: 260k in Toronto ate in a high quality restaurant 10+ times past 12 months – 193k Montreal residents.

35. LGBT Market • Toronto – 136, 000 same sex partners • Montreal – 96,000 same sex partners • Ottawa – 20,000 same sex partners

36. Luxury and Adventure This is an adventurous group who vacation in new and exotic destinations and are influenced by articles in magazines and newspapers. They fly business class and are likely to do active things on vacation, such as skiing, golfing, sailing and playing tennis. • Toronto – 1.4 million in category • Montreal – 918 thousand • Ottawa – 328 thousand

37. Reaching key markets • Work with major partners – they know the market, how to distribute and approach them • Canada’s travel trade is more like Europe’s than the US • National in scope, vertically integrated • Porter’s “Escapes” an exciting beginning to better package and market key US destinations like Massachusetts.

38. Reaching your key markets • Online niche marketing for specific target groups is a must – Canadians are connected. • Mobile apps of growing importance – 51% of Canadians visiting the US on vacation last summer carried a smart phone – 23% a tablet. • 37% of these “smart” travellers were going to use their device to research what to see and do; • 34% were likely/very likely to purchase something wit their smart device while visiting the US last summer on vacation.

39. Summing Up • Canada stronger outbound travel market than Europe or the US. • Massachusetts has performed better than average • Toronto air travellers key market due to distance and travel interests • Montreal auto travellers key market due to distance travel interests • Canadian boomers aged 45+ with HH incomes of $100k and who travel without children are key demographic market.

40. Summing Up • Spectator sport a key market, particularly for Toronto area • Sailing and water sports huge market in Ontario in particular. • Culture & Active – more than 1 million in Toronto over 600 thousand in Montreal. • Market exists to attract lovers of music, opera, art in S. Ontario and Montreal area. • LGBT market is a growth market – particularly downtown Toronto.