Nevada Governors Conference 2019 Uk Market

NEVADA GOVERNORS CONFERENCE 2019

UK MARKET UPDATE & FY19 ACTIVITY

MMGY HILLS BALFOUR COMPANY BACKGROUND

Hills Balfour President Amanda Hills with MMGY Global CEO Clayton Reid

MMGY Hills Balfour is Europe’s leading integrated marketing and communications agency specialising in tourism. Based in central London with network offices across Europe and the Middle East, we are a next generation, full-service agency for the travel sector that knows how to help travel brands grow.

For more than 20 years, we have worked with a diverse range of clients including cities, regions and countries, as well as tour operators, hotel groups and travel services companies. As a result, we know travel and tourism better than anyone else in the market, evidenced by our world-class client list, deep- rooted relationships and solid industry reputation. We are also proud strategic industry partners for the World Travel & Tourism Council (WTTC), whose role it is to quantify the economic contribution of the travel and tourism sector to governments around the world.

As a creative solutions, media and marketing specialist agency, we have unparalleled experience in executing stand-out campaigns for travel brands using the latest targeting, data and creative technology. We are completely results-focused, and we take our role as brand protectors very seriously. Our PR, marketing, design, development, creative, social, research, and media planning teams have extensive knowledge in bringing outstanding, results-driven campaigns to market, integrated across all channels.

Hills Balfour was created in 1998 by Amanda Hills-Balfour as a specialist tourism and marketing representation company to promote destinations in the UK and Ireland. Today we work across every continent in the world, with a drive to promote every facet of travel whether it be a destination, airline, global hotel brand or ancillary product.

In 2016, Hills Balfour opened its first international footprint, Hills Balfour Dubai. Its creative media agency background and brand architecture work for clients including Jumeirah Hotels and the Executive Council of Dubai is second to none.

In 2018, Hills Balfour was acquired by U.S. company MMGY Global, the world’s largest integrated marketing company specializing in the travel, hospitality and entertainment industries.

QUICK FACTS ON THE UK MARKET

Demography of the United Kingdom, according to the Office of National Statistics (ONS) ● Total population: 66.4 million ● Area: 242,514 sq. km ● Currency: Pound sterling ● Population growth: 0.6% from mid-2017 to mid-2018, slower than any year since mid-2004 ● Unemployment rate: 3.8% ● Employment rate: 76.1% ● Average weekly earnings: £542 ● The median age in the United Kingdom is 40.1 years ● Life expectancy: 79.2 years for men and 82.9 years for women

(ONS, 2019a)

United Kingdom outbound tourism overview ● Britons are still firmly committed to their holidays, with 88% of people saying that they took a holiday (in the UK or abroad) in the past 12 months ● In the 12 months to July 2019, almost two thirds of UK residents took a foreign holiday (64%), an increase of 4% year-on-year and 11% more than five years ago ● During these visits, UK residents spent £45.4 billion, an increase of 1% or £595 million ● UK nationals have cut back on what they spend before they go on holiday and while they are away. Compared to 2017, people are spending a combined £98 less before and whilst away on a short overseas break and £94 less on a longer overseas break ● Last year, there was a slight dip in UK holiday-taking, after two strong years of growth for domestic holidays, and the figures for 2019 show a return to pre-2018 figures

(ABTA, 2019a)

Average number of holidays taken by UK nationals 2017 – 2019 (Source: ABTA, 2019a)

THE UK ECONOMY & TRAVEL INDUSTRY

Economic Summary ● UK interest rates at 0.75% - the highest level since March 2009 ● GST/VAT: remains at 20% ● The Consumer Prices Index including owner occupiers’ housing costs (CPIH) 12-month inflation rate was 1.7% in August 2019, down from 2.0% in July 2019 ● The average house price in England increased by 0.3% over the year to July 2019, down from 1.1% in the year to June 2019, with the average house price in England now £249,000 ● PricewaterhouseCoopers (PwC) predicts 1.4% GDP growth for 2019, 1.3% in 2020 ● Household spending grew by 1.1% in Quarter 2 2019, when compared with Quarter 2 2018

Economic Review UK gross domestic product (GDP) in volume terms was estimated to have fallen by 0.2% in Quarter 2 (April to June) 2019, having grown by 0.5% in the first quarter (January to March) of the year.

When compared with the same quarter a year ago, UK GDP increased by 1.2% in Quarter 2 2019; a slowing from 1.8% in Quarter 1 (January to March) 2019. Services sector output provided a positive contribution to GDP growth, although growth in this sector slowed to 0.1% in Quarter 2 2019.

The production sector contracted by 1.4% in Quarter 2 2019; reflective of increased volatility in the first half of 2019. Nominal GDP increased by 0.4% in Quarter 2 2019, down from 0.9% in Quarter 1 2019.

The WTTC reports that UK travel and tourism industry plays a vastly important role in the UK economy, contributing around 9% of total economic activity. Britain will have a tourism industry worth over £257 billion by 2025 – just under 10% of UK GDP and supporting almost 3.8 million jobs, which is around 11% of the total UK number.

Outbound travel’s economic contribution to the UK totals £37.1 billion in Gross Value Added (GVA), which amounts to around 1.8% of UK Gross Domestic Product (GDP). This includes a direct contribution of £15.9 billion (GVA), which is equivalent to around 1% of GDP. The sector directly sustains 221,000 UK jobs.

Key research from the WTTC’s ‘Travel & Tourism Economic Impact 2019’ report highlights the below: ● While the global economy grew by 3.2%, Travel & Tourism grew by 3.9% ● One in five new jobs were created by Travel & Tourism over the last five years ● Travel and Tourism contributes 11% of total UK economy ● Travel and Tourism contributes to 11.9% of total UK employment

(ONS, 2019a; ONS, 2019b; WTTC, 2019a)

UK POLITICS, BREXIT & OUTBOUND UK TOURISM

Summary of UK politics ● Government type: Constitutional Monarchy ● Ruling party: Conservative government ● Prime Minister: Boris Johnson MP (leader of the Conservative Party) ● Chancellor of The Exchequer (Finance Ministry): Sajid Javid MP ● Secretary of State for Foreign and Commonwealth Affairs: Dominic Raab MP ● Secretary of State for Exiting the European Union: Steve Barclay MP ● Secretary of State for International Trade & President of the Board of Trade: Elizabeth Truss MP ● Secretary of State at the Department for Digital, Culture, Media and Sport: Nicky Morgan MP ● Minister for Arts, Heritage and Tourism: Helen Whately MP (sits within Department for Digital, Culture, Media and Sport) ● Leader of Opposition: Jeremy Corbyn MP (leader of the Labour Party) ● Mayor of London: Sadiq Khan (member of the Labour Party) ● Head of State: HM Queen Elizabeth II (1952)

Brexit background and conservative Party leadership 2019 Brexit (Great Britain’s exit from the European Union) has remained at the forefront of UK politics for the past five years. On 23rd June 2016, 52% of the UK public voted to leave the UK in an ‘in-or-out’ European Union (EU) referendum. This event saw David Cameron stand down after six years as Prime Minister.

Theresa May took over as Leader of the Conservative Party on 13th July 2016 and served for three years. Boris Johnson, former Mayor of London and Foreign Secretary, became the new leader of the Conservatives on 24th July after being voted in by 66.4% of party members over rival Jeremy Hunt. Johnson backed the Brexit campaign and vowed to leave the EU with or without a deal on 31st October 2019.

For the UK to leave the EU, Article 50 of the Lisbon Treaty was evoked on 29th March 2017 giving both the UK and EU two years to agree to the terms outlined in the split.

A Brexit deal was agreed between the UK and the EU in early 2019, but the deal was not effectively passed through the UK parliament. Brexit was extended to 12th April 2019, before the UK and the EU agreed on the later date of 31st October 2019.

As at 21st October 2019, parliament has voted to rule out the possibility of the UK leaving the European Union without a prior agreed deal.

MMGY Hills Balfour will be producing a stand-alone Brexit update by 1st November 2019 to provide the very latest political updates ahead of WTM.

(The Guardian, 2019a; Institute for Government, 2019; BBC News, 2019a)

WHAT BREXIT MEANS FOR THE TOURISM INDUSTRY

Performance of the UK travel sector Despite some concerns about Brexit, the UK travel sector performed well in 2018. Consumers continue to prioritise their holiday spending and remain confident about travelling amid other world events. Looking ahead to 2019, the overall intention to take holidays will remain strong, despite economic uncertainty, not least relating to the UK’s EU exit. Changing demand for travel, and airlines and other travel companies will have to deal with simultaneous pressure on margins through increasing competition, excess capacity and rising fuel costs.

ABTA reconfirms advice for travellers According to ABTA’s most recent Advice for Travellers update, “the Brexit extension to 31st October 2019 has provided absolute certainty that all current arrangements for travel will remain as they are today”. Furthermore, “if the Government agrees a deal on or before that date, the UK will then enter a transition period and everything will continue to remain the same and you can continue to travel as you do now. There is still a possibility that the UK could leave the EU at the end of October without a deal… UK citizens can be reassured that regardless of the Brexit outcome planes will still fly between the UK and the EU: if a deal is agreed then we will be in a transition period, meaning everything will stay the same until the end of December 2020 and flights will continue as normal. Even if we are in a no-deal scenario, the European Commission has said that UK airlines will still be able to operate flights between the UK and the EU. The UK government has offered similar assurances for EU airlines.”

International tourism numbers and confidence on the rise The latest issue of the United National World Tourism Organisation (UNWTO) World Tourism Barometer shows that international tourism continued to grow over the first quarter of 2019, presenting an increase of 4%. The Middle East (+8%) and Asia and the Pacific (+6%) experienced the highest increase in international arrivals. Numbers in both Europe and Africa were up by 4%, and in the Americas, growth was recorded at 3%. Confidence in global tourism has started to pick up again after slowing down at the end of 2018, according to the latest UNWTO Confidence Index survey. The outlook for the May-August 2019 period, the peak season for many destinations in the Northern hemisphere, is more optimistic than in the recent periods and more than half of respondents are expecting a better performance in the coming four months. UNWTO forecasts growth of 3% to 4% in international tourist arrivals in 2019.

Rise of Domestic Tourism Staycations – if Brexit leads to more complex travel requirements for UK tourists visiting the EU, it is possible that domestic tourism (or ‘staycations’) will increase in popularity. Evidence collected by Travel Weekly suggests that uncertainty around travel requirements has increased interest in domestic holidays as an alternative to European holidays. The weaker pound (which generally makes travel abroad by UK residents more expensive) may also help to boost the popularity of domestic tourism.

(Deloitte, 2019; ABTA, 2019b; UNWTO, 2019a; Travel Weekly, 2019a)

2019 ACTIVITY

Adventure Travel Show

Adventure Travel Conference and Marketplace is the UK’s only travel trade event for the adventure and experiential travel industry. It attracts more than 250 delegates, exhibitors, buyers and media over two packed days.

For the 22nd year, the Adventure Travel Show (ATS) took place at Olympia London on January 19th and 20th 2019.

It is the UK’s only event dedicated to discovering the world by getting off the beaten track, with a chance to get face-to-face with the largest collection of specialist adventure travel companies under one roof for the latest, greatest travel ideas and inspiration, news on the hottest destinations, hidden gems, top tips and expert advice. The show covers a range of travel styles – small group, canoeing, volunteering, career break, trekking, diving, safari or cycling. Across the two days, there are dozens of free inspirational talks over four theatres.

Travel Nevada had its own stand, in a key location which capitalised on passing traffic, the talk theatres and the Adventure Café.

The stand was made up of an open shell scheme with Nevada mages and branding. The Travel Nevada UK team were on hand to educate consumers and create awareness of the state using our Nevada visitor guides, state maps, Highway 50 survival guide and using Virtual Reality 360 video to give the attendees a taste of Nevada.

Nevada Governors Summit

Travel Nevada UK hosted two operators from the UK at the 2018 summit. Garry Butcher – The Travel Portfolio and Scott McArthur Vegas Vacations.

Since attending the summit Garry has started his own tour operator under Merlin Travel Group Ltd with a focus on the USA. Nevada features heavily under their USA program having attended and established relationships with Nevada partners.

Scott continues to grow Vegas Vacations and has added multiple Nevada itineraries and an outskirts of Las Vegas itinerary to showcase what he state has to offer.

Travel Nevada UK continue to liaise with both on their Nevada offering.

The media team hosted Rupert Meyers and Emily Hodgkin, two freelance journalists -whose articles were released in the Express and Rupert has written for The Handbook in the UK, articles on Nevada are linked below: https://www.express.co.uk/travel/activity/1098816/nevada-reno-travel-holiday-mountains-USA- holidays

https://www.thehandbook.com/blog/2019/05/all-the-way-to-reno/

https://www.thehandbook.com/blog/2019/03/the-lakeside-paradise-youll-never-want-to-leave/

Visit USA Events

Visit USA Unite 2019

This ‘one-stop-shop’ event brings together UK based tour operators to hold pre-booked one-to-one meetings with tourist boards, airlines, hoteliers, attractions, tour providers, cruise and rail companies from throughout the United States in one place.

There were 72 delegates from 57 exhibiting companies representing around 130 hotels, airlines, tourist boards, associations and attractions. There were nearly 74 delegates from 62 tour operating companies from the UK.

There is no cost for the ‘Buyers’ (tour operators) and an affordable cost to the ‘Exhibitors’ (suppliers) – with a reduced rate to Visit USA members. Appointments are made using an on-line platform in advance of the event directly between the 'Buyer' and 'Exhibitor' and vice versa. Over 900 meetings took place during the day.

Visit USA Aspire Luxury Forum

Visit USA in collaborating with Aspire - the luxury division of the Travel Weekly Group - created and hosted a new one day destination specific event targeting 45 luxury agents who are interested in learning more about how the USA can fulfil their clients often bespoke needs.

Aspire has over 2,200 agents who have all been verified as ‘luxury’ sellers before they can formally join. Combined the club is responsible for £1.5billion of luxury travel spend per annum. All Forum attendees were vetted and these forums have a reputation for zero no-shows on the day, such is the relationship and trust between Aspire and its members.

Toni Bohane attended and discussed Nevada via timed presentations and also gave away tickets to Cirque Du Soleil in London to one lucky agent who won the Nevada quiz.

PR Key Highlights

Success in numbers:

Total number of journalists hosted on FAMs: 9

Total gross impressions from January 2019 – September 2019: 188,766,068

Total PR Value from January 2019 – September 2019: USD$516, 834

Media meetings held: 42

Events and media relations:

On behalf of Travel Nevada, Hills Balfour organised and hosted a media breakfast at The Ivy, Covent Garden on Friday 28th June 2019. Hills Balfour secured 15 media to attend the event and successfully updated all media on key focuses for the year and discussed both group and individual press trip opportunities. As an incentive for the media in attendance, Hills Balfour worked with Travel Planners to offer a prize to Nevada for one journalist. Richard Glynn from SUITCASE will be travelling to Nevada and will be encouraged to write about his experiences and post on social media

Media in attendance including a selection of top-tier media outlets, national publications and lifestyle journalists:

• Jane Anderson, editor of Family Traveller (average circ. 35,033) and Prima (average circ. 227,014)

• Helena Cartwright, features editor of Woman (average circ. 133,103), Woman&Home (average circ. 281,193) and Chat (average circ. 203,358) • Lauren Jarvis, freelance travel writer for Metro (average circ: 865,801), GRAZIA (average circ. 102,585), National Geographic Traveller (average circ. 39,939) • Linda Konde, commissioning editor of Culture Trip (average UMV. 18,000,000) • May Chong, freelance travel writer for Metro (average circ: 865,801) • Matt Charlton, freelance travel writer for VICE (average UMV. 45,600,000), Esquire (average circ. 59,002), Digital Spy UK (average UMV. 19,000,000) • Arion McNicoll, editor of The Week Online (average UMV. 1,650,000) • Richard Glynn, partnership manager at SUITCASE (average circ. 77,000) • Harriet Mallinson, digital travel reporter at Express.co.uk (average UMV. 39,618,314) • Yousif Nur, freelance travel writer for The Guardian (average circ. 132,821), Dazed (average circ: 89,636) and Notion Magazine (average circ: 57,000) • Steve Hartridge, editor at Selling Travel (average circ. 14,925) • Anna Selby, freelance travel writer for The Times (average circ. 399,672), The Daily Telegraph (average circ. 327,345), Daily Express (average circ. 302,622), Business Traveller (average circ. 69,544) and Conde Nast Traveller (average circ. 81,002) • Elizabeth Winding, freelance travel writer at Conde Nast Traveller (average circ. 81,002), High Life (average circ. 80,208) and The Week (average circ. 151,236)

Press trips:

Individual press trips secured with the following media:

● Jonathan Thompson, BA High Life ● Julia Buckley, I newspaper ● Laura Bartlett, House of Coco ● Alan Muir, The Scottish Sun

Secured journalists to attend the Travel Nevada international FAMs and from the following publications:

● Katie Burton, Geographical ● Felice Hardy, freelance travel journalist for The Daily Telegraph and Welove2ski

Coverage highlights:

Nevada Trade Campaign – Treasures of Nevada

TravelNevada UK are working on launching an online sales driving and awareness campaign to run during an extended sales period to cover key booking periods within the UK market. Activity will be in market during December 2019 and Jan to March 2020, to stimulate demand for holidays to Nevada through key tour operator partners.

The ‘Treasures of Nevada’ campaign will run over a 4-month period and be focused on creating unique and engaging destination video content, building awareness of the diverse options or ‘treasures’ that are available within Nevada, in order to drive sales and overnight visitation to the State.

The campaign will play on Nevada’s gold mining history by showcasing the state’s own natural treasures from its lakes and national parks to its canyons and wildlife reserves, as well as its unique experiences such as ghost towns, stargazing, basque inspired culinary options and wide range of outdoor activities.

Objectives

• Create new, unique, engaging video content across multiple ‘treasures’ within Nevada state. Showcasing activities, the natural beauties and locations unique to destination • Drive long term awareness of Nevada as a unique, must stop destination as part of a West Coast road trip or multi centre itinerary • Increase length of stay/room nights in Nevada by increasing awareness of lesser known areas/ activities • To bring a positive travel experience to the target audiences, urging them to discover each of the hidden treasures and escape the crowds in Nevada’s natural landscapes • Educate consumers on variety of attractions on offer • Real-time results through social media posts and the campaign microsite

Target markets

• Engaged Americana road trip audience • Adventure seekers and nature lovers • Families and couples • Sustainable, active and adventurous travellers

Two production teams have visited Nevada and captured unique 4K video content during their journey on a pre-set itinerary travelling from Las Vegas up to Lake Tahoe and Virginia City (See draft itineraries below).

These video assets will be showcased through a bespoke microsite which will inspire travellers to create their own self-drive itineraries which can be booked through the campaign tour operator partners.

Consumers will be able to view all of the video content and choose which cities/ towns and experiences they would most like to include in their next holiday. The microsite will be white labelled onto the tour operator partner’s website to offer a seamless booking process and increase conversion rates. Our tour operator partner for this campaign will be US Airtours and Travelplanners, who have already started their Nevada marketing messages in June.

US Airtours Marketing

Cut downs of the longer form video content will be produced and used across TravelNevada and campaign partner’s social channels where appropriate to further increase reach and drive consumers to the microsite landing page.

Route 1

Route 2

We have now produced the long form videos and the cut downs to showcase each stop, here is a link to our feature length video for itinerary one: https://vimeo.com/vidaworldwide/review/370757275/af7bc409a7

HEADLINE TRAVEL STORIES FROM 2019

Thomas Cook collapse should not be seen as a reflection of the “general health” of travel industry On 23rd September 2019, the Civil Aviation Authority (CAA) confirmed that travel brand Thomas Cook had gone into administration after 178 years in operation and all UK companies in its group have now ceased trading, including Thomas Cook Airlines. Former Chief Executive, Peter Fankhauser, concluded that “the absence of funding” was one of the main reasons the board opted for liquidation rather than administration. Grant Shapps, UK Transport Secretary, said Thomas Cook’s demise should not be seen as a reflection of the “general health” of the travel industry.

On 9th October 2019, independent travel agency Hays Travel pledged to save 555 Thomas Cook high street shops and 2,500 jobs. John and Irene Hays, who built their profitable travel agency with no debt, have said they can make a success of the business where Thomas Cook directors failed, pointing to rising sales of package holidays. Hays Travel outlets across the UK have now started to open in former Thomas Cook stores. John and Irene Hays recently commented, “colleagues we have now welcomed into the Hays Travel family are really keen to get back to finding everyone the holiday of their dreams as soon as possible”.

On 17th October it was announced that the Travel Leaders Group has hired some of Thomas Cook’s most senior executives to lead the expansion of tour operator Barrhead by up to 100 stores in the UK. Jacqueline Dobson, the president of Barrhead Travel, said, “Chris Mottershead and the expansion team will bring valuable insights and experience to help extend Barrhead Travel’s quality service to new communities and we look forward to the first of many new store openings under this initiative. As well as taking on former Thomas Cook employees within our existing store network, we are actively recruiting in new areas across the UK. We have identified a number of locations and are currently in negotiations to secure premises. The former Thomas Cook employees are hugely talented and we are keen to work with them to reopen new state-of-the-art stores in their local communities”.

In June 2019 ABTA, the UK travel trade association, reported that package holidays still dominate the UK market, with 51% of people taking an overseas package holiday this year, up 3% on 2018.

In October 2019 ABTA commented that the collapse of Thomas Cook does not signify the end of the package holiday. Moreover, the fact that customers abroad were repatriated, and those with future bookings were protected, reaffirms the value that a traditional package holiday offers to consumers.

(ABTA, 2019c; The Guardian, 2019b; Travel Weekly, 2019b)

Travel to generate 100 million jobs by 2030 Travel and tourism is “the best industry partner for governments”, World Travel & Tourism Council (WTTC) president and chief executive Gloria Guevara told industry leaders in April 2019. Addressing the WTTC global summit in Seville, Guevara said; “our sector will generate 100 million jobs over the next decade, meaning one in four new jobs will be thanks to travel and tourism. “Our sector is truly the best partner for governments to generate economic growth, create jobs and reduce poverty.” Travel and tourism is the fastest growing sector in the UK accounting for 11.9% of all jobs, putting it ahead of financial services and banking.

(Travel Weekly, 2019c)

Virgin Atlantic plans 84 new routes from London Heathrow Virgin Atlantic released plans that show the airline could more than quadruple its current 19 routes from Heathrow if action is taken to break British Airways owner IAG’s stronghold of the airport. The plans would involve new routes, including 12 domestic services to airports including Belfast, Glasgow and Manchester. Other new route proposals include flights to 37 European cities, including Madrid and Dublin, along with 35 new mid to long-haul destinations including Jakarta and Buenos Aires.

(Bloomberg, 2019)

British Airways attempts to turn waste into jet fuel British Airways is one step closer to powering its future fleet with sustainable jet fuel made from everyday household waste. Plans have been submitted to develop Europe’s first plant to turn household and commercial solid waste into biojet fuel. The proposed state-of-the-art plant, located in Immingham, North East Lincolnshire would take over half-a-million tonnes per annum of non-recyclable household and commercial solid waste destined for landfill or incineration and convert it into clear burning sustainable aviation fuel. British Airways intends to purchase the jet fuel for use in its aircraft, marking an important step in the reduction of the airline’s carbon emissions towards the industry targets of carbon-neutral growth from 2020.

(Travel Daily, 2019)

Brand USA and Tourism Australia launch destination specific events in Europe Brand USA, the public-private destination marketing organisation for the United States, held its first ever ‘Brand USA Travel Week Europe’ from 9th to 13th September 2019, managed and delivered by MMGY Hills Balfour. The event took place at County Hall in London, connecting U.S. destinations and suppliers with buyers from major European markets to discuss trends, challenges and opportunities to increase visitation from the UK, Ireland and continental Europe. Similarly, Tourism Australia, the Government of Australia agency responsible for promoting Australia to the world as a destination, launches its first ‘Australia Marketplace UK & Europe’ event from 30th to 31st October 2019. The event will give Australian tourism representatives the opportunity to establish business relationships with key qualified travel agencies and tour operators from the UK and Europe.

(Brand USA Travel Week Europe, 2019; Tourism Australia, 2019)

Prince Harry launches new travel programme to encourage eco-friendly tourism Prince Harry’s new charitable foundation, Sussex Royal, has helped launch an initiative to raise awareness of, and promote, sustainable travel. Travalyst is a collaboration between five companies – Booking.com, Ctrip, Skyscanner, TripAdvisor and Visa – aimed at improving conservation efforts, protecting the environment and helping develop the economies of communities involved in the tourist industry. Speaking at the launch in Amsterdam, Harry said the project was partly inspired by a seven-year-old boy he met on a working trip to the Caribbean, who told him: “Because of your country, my country’s coral reef is dying.”

(Harper’s Bazaar, 2019)

GLOBAL TOURISM TRENDS

Responsible tourism goes mainstream Holidaymakers are increasingly aware of the impact they have on a destination, with 45% of people saying sustainability is an important element when booking a holiday, up 6% from last year. It is also increasingly a factor when choosing who they travel with, over a third (36%) of people would choose one travel company over another if they have a better environmental record – up 6% since last year. For quite some time the industry has been working across a range of sustainability issues, from waste management (including plastics) to carbon, as well as taking action to support the local economy and local workers. The impact on the communities they visit is becoming a mainstream consideration for travel companies and an integral part of business decisions and planning.

Wellness travel experiences rapid growth According to the latest Global Wellness Institute report, wellness tourism is worth an estimated $639 billion globally, growing more than twice as fast as general tourism. More people than ever are seeking new ways to alleviate stress, reduce illness and boost wellbeing – with trips globally up 20% since 2015; and travel companies – from adventure to youth to cruise brands – increasingly catering to the demand for wellness holidays.

Technology promises to make travellers’ lives easier Service based technology is making travellers lives easier – from the moment they leave their front door to their return to home soil. For a smoother journey through the airport, passengers travelling with airlines such as British Airways, Finnair and easyJet can now get their luggage collected from their home and checked in, avoiding the need to carry their cases or queue at Bag Drop. The emergence of facial recognition technology is replacing the need for passports at some airports. Heathrow Airport, Singapore’s Changi airport and Shanghai Hongqiao International Airport are already trialling this technology, with plans for it to be fully functioning in Dubai airport by the end of 2020.

Family sabbaticals As ‘modern nomadism’ gains momentum, 2019 has seen a rise in 'unschooling', 'edventure' and family gap years. Given that by 2020 it’s estimated that roughly half the UK and American workforce will be freelance and that 40 per cent more children were being home-schooled in 2017 than in 2014 (48,000 in total), it’s no surprise that parents will be embracing the freedom this provides.

Travellers maximise on the ‘experience economy’ The ‘experience economy’ has continued to thrive in 2019 as the focus for consumers becomes more about what they have done and where they have been, as opposed to the material objects they have acquired. With escape rooms, experiential cinema screenings and whole festivals dedicated to TV shows becoming increasingly popular, the travel industry continues to reap the benefits. Holidays during which travellers can learn a new skill are a key example of this, with people travelling across the globe to learn song writing, surfing and salsa dancing in destinations where these skills are native.

Sports tourism takes off Technavio predicts the global sports tourism market to post a compound annual growth rate of over 36% by 2023. Sport tourism has been defined as leisure-based tourism which temporarily takes people outside of their home environment to participate in, watch physical activities, or visit attractions associated with sport. These three primary types of sport tourism have been identified as ‘participatory’, taking part in physical activity including golf, skiing and marathon running; ‘event-based’, watching others participate in sport; and ‘celebratory’, visiting halls of fame, museums, stadiums and other places of remembrance.

(ABTA 2019c; Conde Nast Traveller 2019; ONS, 2019c; BusinessWire, 2019)

GLOBAL TOURISM ANALYSIS

International tourism arrivals The year 2018 saw international tourist arrivals grow +5.4% to reach 1,401 million. The UNWTO reports that this figure was driven by a strong global economy, a growing middle class in emerging economies, technological advances, new business models, affordable travel costs and visa facilitation. These factors lead to international arrivals reaching above the 1,400 million mark two years ahead of the UNWTO forecast.

Across the regions in 2018, Europe remains as the most visited continent. With 5% year-on-year growth, Europe accounted for half of the world’s international arrivals. The Asia-Pacific region also remained a strong performer, growing by 5% to account for one in four international arrivals. North Africa’s performance – with 7% year-on-year growth – is particularly notable. This growth not only showcases the sector’s resilience and capacity to bounce back from security shocks, but also travel and tourism’s ability to spread its benefits widely across the world. (UNWTO 2019b)

Map of international arrivals (million) and tourism receipts (USD billion) (Source: UNWTOb)

International tourism spend International tourism receipts also grew well last year, reaching US$1,451 million, a +4.4% increase on the year 2017. This growth outpaced the growth of the global economy for the ninth consecutive year. The UNWTO states that this makes the sector a true global force for economic growth and development, driving the creation of more and better jobs and serving as catalyst for innovation and entrepreneurship. In short, tourism is helping build better lives for millions of individuals and transforming whole

23 communities. To this end, Ethiopia, Ecuador, St Kitts and Nevis, Egypt and Turkey led the world for the travel and tourism sector’s GDP growth in 2018.

The UNWTO reported that China, the USA, Germany, the UK and France were the top five spending source markets in 2018. China remains the world’s largest spender, generating one fifth of international tourism spending. The traditional source markets of the advanced economies were once again joined by the emerging economies in Asia, Central and Eastern Europe, the Middle East, Africa and Latin America, where fast growth is seen as a result of increasing levels of disposable incomes. Meanwhile France, Russia and Australia showed the highest growth in spending and in terms of trips taken, Europe accounts for nearly half of all outbound tourism.

(UNWTO, 2019b)

Top 10 countries by international tourism spending, 2018 (Source: UNWTO, 2019b)

Most popular global destinations Mastercard’s Global Destination Cities Index reports that the number of international overnight visitors has grown a staggering 76% since 2009, and that Bangkok remains the number one destination in 2018 with over 22 million international overnight stays. Paris came in second with 19.1 million overnight visitors and London was pushed to third place, welcoming just under 19.1 million. Dubai was the fourth most visited city with 15.9 million overnight visitors, and the top city for international visitor spend with an average of $553 USD being spent per visitor per day. The remainder of the top ten cities of 2018 by overnight stay were made up by Singapore (14.6 million), Kuala Lumpur (13.7 million), New York City (13.6 million), Istanbul (13.4 million), Tokyo (12.9 million) and Antalya, Turkey (12.4 million). (Mastercard 2019)

Domestic tourism Domestic tourism, which represented 71.2% of all tourism spending in 2018 and had the strongest growth in developing nations, continues to support opportunities by spreading development and regional economic benefits and building national pride. The continued rise in the number of middle-class households and the solid growth in global consumer spending once again enabled the travel and tourism sector to grow – increasing 3.9% year-on-year.

(WTTC 2019b)

REGIONAL TOURISM ANALYSIS

Europe Europe, the world’s most visited region, achieved a ninth consecutive year of sustained growth with 2018 showing an increase of 5%. This growth in arrivals came from source markets within and outside of the region. Southern and Mediterranean Europe led results, with most destinations enjoying double-digit growth. Italy, Greece, Portugal and Croatia saw robust performances. Turkey continued its strong recovery following terrorist threats. After several years of remarkable growth, Spain showed solid growth in tourism earnings. Russia hosted the 2018 FIFA World Cup and recorded a double-digit increase in international tourism receipts. Northern Europe recorded flat growth, with mixed performances amongst destinations, while Central and Eastern Europe grew in line with the region’s average.

Asia and the Pacific The 7% growth in international arrivals and tourism receipts in Asia reflects solid intra-regional demand particularly from China, South Korea and Australia. Other factors facilitating this growth include growing purchasing power in emerging economy markets, increased air connectivity, and enhanced visa facilitation. South Asia enjoyed the highest growth of all the sub-regions with a 19% rise in tourist arrivals driven by Iran, Nepal, Sri Lanka and India. In North-East Asia, Japan surpassed the 30 million mark in arrivals. In South-East Asia, most destinations posted strong growth, particularly Vietnam and Thailand. Fuelled by a more favourable Australian dollar and robust demand from North-East Asian source markets, the USA and the UK, the Oceania region reflected solid growth.

Americas The Americas saw a 2% increase in arrivals overall, with North America leading the growth which is attributed to a continued solid performance from Mexico and positive results from the United States. Following a strong 2017, South America posted mixed results with continued strong results in Colombia, Ecuador and Peru, while a decline from major outbound market Argentina affected some neighbouring destinations. In Central America, Belize, El Salvador and Guatemala stood out with robust growth while the Caribbean continued to show mixed results with some robust growth in Jamaica and the Dominican Republic and some declines in others as a result of hurricanes in 2017.

Africa It is estimated that international tourist arrivals increased to Africa by 7% in 2018. Tunisia continued to rebound strongly with an increase in visitor ﬂows from European source markets. Morocco, the subregion’s largest destination, also grew at a robust rate. In Sub-Saharan Africa, island destinations Reunion, Cabo Verde, Mauritius and Seychelles posted robust growth. Kenya recorded positive results, thanks to improved security and more air connectivity, as well as Togo, Uganda, Côte d’Ivoire and Zimbabwe. The subregion’s most visited destination, South Africa, reported moderate growth.

Middle East The Middle East region saw a 4% increase in income generated by tourism. Results were mixed across different territories, with tourism being a major pillar for some destinations, while some oil-based economies are opening up for strong tourism development. Egypt continued to enjoy a solid rebound with significant growth in arrivals and receipts. Jordan and Lebanon also performed well in 2018. Qatar started to recover in the second half of the year thanks to visa facilitation, investments and marketing in a number of source markets.

(UNWTO 2019b)

UK MARKET ANALYSIS

Overview of the UK outbound market In the 12 months prior to July 2019, almost two thirds of UK residents took a foreign holiday (64%), an increase of 4% year-on-year and 11% more than five years ago. During these visits, UK residents spent £45.4 billion, an increase of 1% on the previous year.

Despite Brexit concerns, ABTA research shows holidays remain a spending priority in the UK and 2019 saw an increase in positive sentiment about holiday spending. More than a quarter of people (27%) plan to spend more on their holiday in the year ahead, compared to 25% in the year to July 2019. The number of people who plan to spend less on their holiday next year remained consistent with last year and 2017, the main reason cited was having taken a major trip in the last year (24%). 2019 forward bookings were up 12% on the previous year at the same time. The increase in early bookings reflects that travellers want to get value for money.

The ABTA “Holiday Habits Report 2019” states that the average number of holidays taken has increased, rising to 3.9 breaks a year (June 2018 - July 2019) compared to 3.4 per person the previous year. For the first time since 2011 the average number of holidays taken abroad, 1.9 per person is nearly as high as the average number of UK breaks (2.0).

Portrait of UK Travellers™ In March 2019, research study “Portrait of UK Travellers™” was unveiled by MMGY Hills Balfour. Portrait of UK Travellers™ is compiled by MMGY Global, the world’s largest integrated tourism marketing organisation, and looks at the holiday motivations, preferences and behaviours of the 13.4 million travelling households in the UK in 2019.

Portrait of UK Travellers™ provides a comprehensive and up-to-date insight into the decision-making process of the UK traveller. The 2019 report proves that UK travellers of all ages consider holidays as an essential investment into their quality of life; and the situation is particularly bright when looking at the youngest group of travellers surveyed – those with the most travelling years ahead of them. Millennials show more enthusiasm and more diversity when it comes to their reasons for travelling, the destinations they want to visit, the activities they want to incorporate – even the companies they want to travel with – than their older counterparts. The outlook is optimistic and the opportunities are ripe for travel businesses and destinations ready to act on them. Visit www.mmgyglobal.com for further information on the Portrait of UK Travellers™ insights, or to subscribe to the 2019 MMGY Global Portrait white papers. Customisable options are also available.

(ABTA 2019a; ABTA 2019c; MMGY 2019; ONS 2019c)

How are Britons booking holidays? Consistent with the last few years, around four in five people are booking their holidays online (83%). Interestingly, 16% of Britons who book a holiday online now seek additional support such as a live chat service or speaking with a travel professional via social media. Phone bookings have seen a slight increase in 2019, 17% vs 15% however the number of people over 75 using this booking method nearly doubled, 44% in 2019 vs 23% in 2018.

In-store bookings have decreased three percent in 2019, falling from 15% to 12% of bookings. However, this top-line research ignores interesting 2019 in-store booking trend nuances. Foreign holidays are twice as likely to be booked in-store than domestic holidays and 18 to 24 year-olds are the age group booking

26 most holidays in-store, with an eight percent increase since 2018. Additionally, more than a quarter of affluent holidaymakers book in-store.

In 2019, there has been a 4% uplift in consumer’s consulting travel company websites and 3% uplift in consulting travel professionals from 2018. A 3% decrease has been reported in social media providing holiday inspiration and information, across friend or family posts and brand or influencer posts. This aligns with UK travellers interacting with travel professionals when booking online and suggests an increasing wariness of social media as a source of information. ABTA reported this may be attributable to higher awareness of ‘fake news’ and fake reviews.

(ABTA 2019a)

Who do Britons books with? In the last 12 months, more UK residents have been booking their overseas holidays through a holiday booking website, 44% in 2019 vs 41% in 2018. Booking directly through a service provider comes in a close second (falling five percent from the previous year) and through a travel company or travel agent (39%). This shows that holidaymakers are using a variety of these mediums to put together their holiday itineraries. Please see below for a clear breakdown, detailing differences between UK and overseas travel.

Who holidays have been booked with in 2019 (Source: ABTA 2019a)

ABTA’s 2019 “Travel Trend Report” highlighted one of the main reasons holidaymakers book with a travel professional is because they feel more confident (45%) and 59% of millennials state they would pay extra for a tailor-made holiday.

ABTA research highlights responsible tourism as a mainstream trend for 2019. UK holidaymakers are increasingly aware of the impact they have on a destination when they travel, with 45% of people saying sustainability is an important element when booking a holiday, up six percent from the previous yea. Also important to note, over a third of UK travellers (62%) would choose one travel company over another if they have a better environmental record. Increasing awareness among consumers means we can expect to see this trend continue beyond 2019.

(ABTA 2019a)

Where was most popular for UK tourists? The UNWTO report that Europe is the world’s most visited region and 2018 was the ninth year in a row of sustained growth in the region. In the 12 months to July 2019, 84% of British holidaymakers visited Europe.

Top ten countries visited by UK residents in 2019 (Source: ABTA 2019a)

The USA is the only country to appear in top ten countries visited by Britons, alongside nine European destinations. ABTA reports long-haul travel is increasingly popular with a 4% rise in UK travellers to North America and a 10% increase of people who said they flew to Asia. 6% of people went to South America and interestingly, nearly twice as many 25 – 34 year-olds visited in 2019 (13%) a rise from seven percent in 2018. The top destinations within South America were Mexico (72%), Argentina (29%) and Chile (20%).

(ABTA 2019a; ONS 2019c; UNWTO 2019b)

Where are Britons looking to go to? Looking ahead, Europe still tops the list of places Britons plan to travel to in the next 12 months. This aligns with ABTA research, conducted in late July 2019, which reports that attitudes to the impact of Brexit on travelling abroad have seen few significant changes since last year (ABTA 2019a).

Where UK holidaymakers are planning to go in the next 12 months (Source: ABTA 2019a)

What types of holidays are UK travellers booking? Almost one in five (18%) holidaymakers have taken an all-inclusive holiday in 2019, as people look to make the most of their budget. The overall package holiday market was up three percent in the year to July 2019 and the highest figure since 2016 (51Looking ahead, more travellers are planning an all-inclusive holiday in 2020, an increase of three percent again suggesting value for money and the ability to budget are strong drivers for some holidaymakers.

While city breaks remain the top type of holiday taken in the UK (with 46% of holidaymakers taking them in the past 12 months), a two percent drop in numbers taking city breaks has been registered in the last 12 months, and is down seven percent since 2017. These figures suggest that the trend in recent years of taking multiple shorter breaks may be slowing, with people focusing on preserving and investing in their longer holidays, particularly abroad.

In 2018, foreign holidays of seven nights or more increased in the year to August 2018. Beach holidays remain the nation’s second favourite type of holiday with 41% of people taking one in the last 12 months, consistent compared to 40% in 2018.

Popular Holidays in the past 12 months (Source: ABTA 2019a)

For the first time, ABTA surveyed holidaymaker’s attitudes to travel and accommodation standards. The data revealed a necessary spotlight placed on the ‘Affordable Luxury’ traveller. Many UK holidaymakers are becoming experienced travellers, know how to get the most for their money and have increasingly high expectations. Staying in high-end accommodation is no longer seen as a luxury but is often expected. More than half (55%) of people stayed in four star accommodation in the 12 months to July 2019 and a further 20% stayed in five star accommodation. Holidaymakers are also taking advantage of luxury transport options available, with more than a third of people (37%) travelling via premium economy or above in the past year.

Cruising holidays are also one to watch, as Cruise Lines International Association (CLIA) announced the number of UK cruise passengers reached over two million for the first time last year. Interestingly, there was a 22% increase of 18 – 34 year-olds who have taken a cruise in the last 12 months (28%). ABTA attributes this trend to the broad range of choice and specialist cruises on offer. This potential has been capitalised on by various cruise companies who are beginning to offer activities and experiences catering to the Millennial and Generation Z market. 78% of cruise travellers state the quality of food and drink is

29 the most important factor when booking, overtaking the chance to see multiple destinations. Cruise companies have reflected this change in on-board preferences with award winning chef partnerships and a wider selections of cuisine on offer.

While classic holiday types such as beach breaks are still very popular, UK travellers are diversifying their choices and increasingly taking experience led breaks. This trend saw a three percent rise in lake and mountain holidays in 2019, and seven percent of UK travellers took a camping trip or holiday ‘off the beaten track’. Adventure holidays have also been increasing in popularity with 18 – 24 year olds, 13% took one in 2019 compared to six percent in 2018.

Another key trend amongst UK travellers is the rise in wellness travel. The Global Wellness Institute Report stated wellness tourism is worth an estimated $639 billion globally, growing more than twice as fast as general tourism. Wellness trips, to alleviate stress, reduce illness and boost wellbeing, are up globally 20% since 2015, ratifying the trend of experience led travel. Travel companies, from cruise lines to escorted tours, are increasingly catering to the demand for wellness holidays.

(ABTA 2019a; ABTA 2019c)

LUXURY TRAVEL

The luxury travel market is growing and diversifying, and what was once considered to be ‘luxury’ may not necessarily be the same today. According to Amadeus’ “Shaping the Future of Luxury Travel”, immersive, authentic experiences and sustainability are taking centre stage and this desire for life experiences means that the luxury travel market is fast outpacing the rest of the travel industry.

According to the study, over the next 10 years, the growth rate in outbound luxury trips is projected at 6.2%, almost a third greater than overall travel (4.8%). Currently, North America and Western Europe account for 64% of global outbound luxury trips, despite making up only 18% of the world’s population.

Interestingly, the study suggests that a traveller’s perception of luxury not only changes throughout their lifetime, but it can change over the duration of their holiday, based on relevant circumstances which requires brands to constantly monitor their expectations and adapt to deliver accordingly.

A key trend the industry is noticing is a shift from material to experiential luxury and thus the need to create bespoke itineraries for the individual. Travellers want to feel in control by including personal preferences and are happy to pay extra to give their travel experience an element of exclusivity.

Within the past year, both in the UK and worldwide, consumers have placed huge importance on sustainability and reducing their carbon footprint, with many travel brands stepping up to show off their green credentials. Travellers are now looking at how they can off-set their carbon emissions by considering alternative transport options.

Whilst eco-travelling affects travellers across the spectrum, huge steps are being made within the luxury sector in particular to promote sustainability and green initiatives to their audience, who have a higher disposable income to pay for these experiences.

(Amadeus, 2019)

UK MEDIA PROFILE

TRADE MEDIA

The UK has a competitive trade media landscape, with magazines, websites and e-newsletters remaining an important element when training agents about the travel industry.

Weekly print titles include Travel Weekly (circulation 15,362), TTG (circulation 17,098) and Travel Bulletin (circulation 6,177) – all of which also offer full websites updated with the latest industry news updates. Luxury focussed magazines are also published quarterly from both Travel Weekly, titled Aspire (circulation 6,000), and TTG Luxury (circulation 9,700).

Selling Travel (circulation 14,925) is issued monthly, whilst the association magazine ABTA Magazine (circulation 12,216) is published bi-monthly. Other titles include the online Breaking Travel News website (unique monthly users 202,042) and TravelMole (unique monthly users 101,000). There is also a wealth of niche travel trade outlets covering business travel, cruise, golf and weddings.

These outlets provide an update to agents on the key industry news, appointments, tips on how to sell a product or destination, agent events, competitions and fam trip reviews.

(Gorkana, 2019)

CONSUMER MEDIA

The UK consumer media consists of a number of media communication types, including newspapers, magazines, websites, television and radio. In recent years, the publishing industry has seen a flux of new outlets opening and stalwarts closing, with a lean towards digital subscription, leaving publishers looking for new ways to drive revenue and present their content.

In total, 94% of adults (aged 15+) in the UK, (that being 49.8 million people) consume news brands across mobile, print, desktop, and tablet every month, with 69% using their phones and 64% using desktop.

Total Market Reach of Published Media (Source: PAMCo, 2019)

Newspapers Newspapers in the UK can be divided into two categories; the broadsheets and the tabloids. Broadsheet newspapers are collectively known as ‘the quality press’, focussing on political subjects and reporting on current affairs, such as The Daily Telegraph, The Guardian and The Times. Tabloid newspapers are often referred to as ‘popular press’ and tend to focus on celebrity culture and human interest. These newspapers include the Daily Mail, The Sun and the Daily Mirror. The Publishers Audience Measurement Company (PAMCo) is the governing body which oversees audience measurement for the published media industry.

The latest data shows that 91% of the nation are reading news brands on a multi-platform basis: 68% on their phone, 51% in print, 33% desktop and 19% tablet. Whilst phone use has increased, print still remains strong.

Across the board there has been an increase in newspapers utilising online content and finding new ways to ensure a successful business model. The Guardian recorded an operating profit for the first time in two decades, between 2018 and 2019, thanks largely to its decision to ask readers to contribute financially. The newspaper also went on to record the smallest year-on-year circulation decline in the summer of 2019, with a 5% drop. The Sun (circulation: 1,268,839) remains the best-selling national newspaper, followed by the Daily Mail (circulation: 1,164,025) – both of which are tabloid papers. However, the largest circulation is that of the free Metro (circulation: 1,420,000), which is distributed in London and other major UK cities.

(PAMCo, 2019; BBC News, 2019b; Press Gazette, 2019)

Magazines Traditionally in the UK, magazines are divided into a monthly and weekly distribution, with a focus for specialist topics such as women’s and men’s lifestyle, luxury, travel, arts and culture. In total, the market reach of all magazine content reaches 78% of the UK adult population, an increase on 2018 figures, amounting to a mass readership of 41.3 million people. At 39%, women’s monthly magazines occupy a high proportion of the magazine readership space, reaching an average 20.5 million adults.

For the past decade, the demise of printed guidebooks, maps and travel magazines has been evident – a consequence of the boom in blogs, apps, user-generated content and the swathes of online top-10 lists. Much like news brands, the digital wave has engulfed the magazine industry, leading to print closures and digital-only relaunches. Whilst 2019 has seen the closure of Marie Claire’s UK print magazine, The Face has relaunched following its heyday in the 1980s and 90s and a new UK women’s magazine called Platinum will be hitting the shelves this autumn targeting the over 55s. Platinum is first big women's magazine launch in over a decade.

In the travel sphere, the leading magazines continue to remain strong. These include Conde Nast Traveller (circulation 81,075), Sunday Times Travel Magazine (circulation 57,856), Wanderlust (circulation 40,240), National Geographic Traveller (circulation 39,939) and Lonely Planet Magazine (circulation 35,537). In addition, there are numerous niche travel outlets, focusing on adventure, cruise, millennial travel and luxury.

(Gorkana, 2019; PAMCo, 2019)

Television and video The UK has a range of providers, the most well-known being the state-owned public service broadcaster, the British Broadcasting Corporation (BBC), with key terrestrial channels including ITV and Chanel 4, plus digital TV services such as Sky and Freeview.

In recent years there has been a shift in viewing habits towards global video providers, with more than half of UK households now connecting their TV to the internet and eight in 10 adults streaming through their smartphone. According to Ofcom’s ‘Media Nations: UK 2019’ report, around half of UK households now subscribe to at least one subscription video-on-demand (SVoD) service (such as Netflix or Amazon Prime Video) and UK adults watch, on average, half an hour of YouTube per day.

Broadcast television, and public service broadcasting in particular, remains valued and accounts for the majority of people’s viewing, but its use is falling as viewers take up online services. Britons watched on average 3 hours 12 minutes of broadcast television per person per day in 2018, but this was 49 minutes less than in 2012, and the fall in younger viewers has been much steeper. Four in ten viewers now say that online video services are their main way of watching television and film.

Timeline of key launches and events in UK TV and video (Source: Ofcom Media Nations, 2019)

Radio The UK market consumes a range of audio content including live radio, streamed music, recorded music and podcasts, on various devices. Live radio continues to remain strong, with commercial stations particularly popular, resulting in 89% of UK adults listening to at least five minutes of live radio each week. Local radio has gradually been losing out to UK-wide radio, with just over half of adults listening to local radio (54%) compared to 73% listening to national output.

Digital listening continues to grow rapidly, with the overall digital share of listening across the UK now standing at 56%, up from 53% in late 2018. This includes digital audio broadcasting (DAB), online and TV set listening. Young people are spending more time using online music streaming services (41%), with less than a third of their listening time being spent listening to radio.

In the last couple of years there has been an increasing popularity for podcasts, with one in eight adults now listening to a podcast each week. The average age of this listener is 39 – around 10 years younger than a typical radio listener. (Ofcom Media Nations, 2019)

IRISH MEDIA PROFILE

TRADE MEDIA

A number of the UK travel trade outlets are used within Ireland by agents, alongside Irish-only outlets including Travel Extra (circulation 9,500), Irish Travel Trade News (circulation 2,200) and Travelbiz.ie (unique monthly users 2,044).

CONSUMER MEDIA

Ireland has a competitive print media landscape, which is divided into daily national newspapers and weekly regional newspapers, as well as national Sunday editions. The strength of the British press is a unique feature within the Irish print media scene, with the availability of a wide selection of British published newspapers and magazines available to Irish readers too.

The primary media outlets in Ireland are the Irish Independent (circulation 83,900), The Irish Times (circulation 56,518), The Irish Sun (circulation 47,989), Irish Daily Mail (circulation 27,262) and Irish Examiner (circulation 25,419).

Radio remains the most popular source of news in the morning for Irish consumers, with TV and printed newspaper usage remaining similar to 2018 statistics. The majority of Irish consumers have one online subscription, with the number of people paying for online news rising over recent years to 12% in 2019. The under 35s are most likely to pay and that number has also increased slightly.

The smartphone continues to grow in importance for news with over half (56%) now using the device to access news weekly, well ahead of the EU average (50%). Like Britons, Irish nationals prefer to spend their budget on entertainment subscriptions (for example Netflix and Spotify) and these stats continue to rise.

(Gorkana, 2019; Reuters, 2019)

SOCIAL AND DIGITAL TRENDS

Online access in the UK There are now 4.39 billion people around the world using the internet, which is over half the world’s population. This is also an increase of 366 million people (or 9%) since 2018, with more than one million people coming online for the first time each day over the last year.

In 2019, 54% of people aged 65 years and over shopped online in the UK. The percentage of people who make video or voice calls over the internet has more than trebled over the past decade, to 50% in 2019.

In 2019 82% of people bought goods or services online, an increase of 5% since 2018. This is seen mainly in people aged 35+, with a 6% increase since 2018. In comparison, there was little change in the under 35s who shopped online, at 1% since 2018.

(ONS, 2019d)

Social media use in the UK There are now 45 million social media users in the UK which equates to 67% of the entire population. Of these, 39 million are mobile social media users. 32% of the British population access the internet most often via a smartphone, with 51% of British people visiting a social network from their smartphone at least once per week while 38% access via a computer.

Facebook continues to dominate, reaching 83% of millennials and 62% of all adults each week, but year on year growth for the network is slowing. The number of UK Facebook users remains steady at around 30 million, but Instagram numbers in the UK have spiked to more than 14 million. Despite Instagram’s rapid growth, Twitter and YouTube are ranked as the UK’s second and third most popular social media channels. With an average viewing session of 40 minutes – which is up 50% from 2018 – more brands are using YouTube to host longer form content and engaging videos, ensuring that users are not passively scrolling.

96% of UK social media users visited a social network or messaging service in the past month, and of these, 77% actively engaged or contributed to the networks.

(Avocado Social, 2019)

UK users on social media in 2018 (Revive Digital, 2019)

The drive for authenticity Consumers are becoming increasingly demanding for brands to have an authentic social media presence, a personality and a conscience. 91% of consumers want brands to be ‘authentic’ on social media, creating an environment of trust and a genuine tone behind messaging. This is the most impactful way for brands to use the social space.

Following the worldwide exposure of ‘fake news’, there has been a demand for companies and organisations to be upfront about disclosing what content has been created organically and what has been paid for. Laws for influencers to clearly declare paid-for brand partnerships are tightening up, with an increasing display of #ad and #gifted posts being evidence of this. With the resulting rise in consumer complaints, both brands and influencers have been fined and publicly shamed for activity that does not adhere to the ASA’s guidelines.

Instagram recently announced a clampdown on all third-party apps that help creators attain inauthentic followers, fake likes and comments, meaning that influencers with a high following yet low engagement rate are diminishing. The EConsultancy Influencer Marketing 2020 study found that ‘fake followers’ ranks as the number one concern for marketers, highlighting the need for influencers to be properly vetted with a close eye being kept on the volume and tone of engagement.

The definition of ‘Instagrammable’ changes ‘Instagrammability’ has previously been considered as synonymous with ‘photogenic’, but the rise of Instagram Stories has played a big part in changing this. The quicker-to-create ‘Stories’ that are shared via Instagram are growing at 15 times the rate of Instagram posts, giving users an opportunity to make their everyday experiences ‘Instagrammable’. This trend means that Instagram is becoming more of a storytelling platform, with less curated content and more of a ‘genuine’ feel.

Mobile-first content Since the vast majority of time spent digitally is spent on a smartphone, more and more content is being created as smartphone-native with a vertical view that makes for the optimum mobile viewing experience. The completion rate for vertical videos is nine times higher than other views, demonstrating that vertical content is the way forward where reach is concerned. Instagram’s IGTV video platform and Spotify’s Vertical Videos are key examples of this trend coming into fruition.

(AdvertisingWeek360, 2019; The EConsultancy, 2019)

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