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Title of Presentation Can Run Over Two Lines Market and Trade Profile USA Market and Trade Profile: USA USA Market and Trade Profile USA Overview • Chapter 1: Inbound market statistics provides insights on key statistics about American travellers and who they are. It takes a look at Britain and its competitive set as well as activities of American visitors in the UK. • Chapter 2: Understanding the market takes a close look at American consumer trends, booking, planning and further travel behaviour of this source market. Perceptions of Britain held by Americans are also highlighted. • Chapter 3: Access and travel trade shows how Americans travel to the UK, how to best cater for their needs and wants during their stay and gives insights into the American travel trade. Further ways of working with VisitBritain and other useful research resources are pointed out. 2 Market and Trade Profile USA Contents Chapter 1: Inbound market statistics 1.1 Key statistics 6 1.2 Visitor demographics 17 1.3 Britain & competitors 21 1.4 Inbound activities 23 Chapter 2: Understanding the market 2.1 Structural drivers 31 2.2 Consumer trends 35 2.3 Booking and planning 38 2.4 Reaching the consumer 41 2.5 Perceptions of Britain 45 Chapter 3: Access and travel trade 3.1 Access 52 3.2 Travel Trade 56 3.3 Caring for the consumer 62 3.4 Working with VisitBritain 64 3.5 Useful research resources 65 3 Market and Trade Profile USA Chapter 1: Inbound market statistics 4 Market and Trade Profile USA Chapter 1: Inbound market statistics Chapter summary • The American outbound market is forecasted to account for 131 million trips abroad with at least one overnight stay by 2020. The USA is the • The UK was the 2nd most popular European destination for UK’s most American overnight visitors in 2016, holding a market share of valuable source 17%, behind France in 1st place (18%). market for visitor • Americans rank globally in 2nd place for international tourism expenditure with more than US$123.6bn. spending • The USA was the 2nd largest inbound source market for the UK for volume and the most valuable source market for visitor spending in the UK in 2016. • France (57%), Italy (47%), Germany (45%) and Spain (44%) were the most considered competitor holiday destinations by American holidaymakers to Britain. • Almost six out of ten departing American travellers would be very likely to recommend Britain for a holiday or short-break, which is significantly higher than average (45%). Source: International Passenger Survey by ONS, Oxford Economics, UNWTO, VisitBritain/IPSOS 2016, CAA 2016 5 Market and Trade Profile USA Chapter 1.1: Key statistics Key insights • Almost 3.5 million Americans visited the UK in 2016, which is an increase of 6% compared to the previous year. This makes the The USA was the nd USA the second largest source market. UK’s 2 largest • Holiday visits continue to lead in terms of volume of visits from source market for the American market. 45% of all visits to the UK from the USA visits were made for holiday purposes, followed by 25% which were in 2016 visits to friends and/or relatives in 2016. • American visitors spent an average of 8 nights per visit in the UK in 2016, longer than the global average. London is the leading destination for a trip to Britain, based on the number of nights, but Scotland and the South East of England are also popular. • Two forms of accommodation dominate the picture with 39% of nights spent in a hotel or a guest house and 38% of nights spent for free with relatives or friends. Source: International Passenger Survey by ONS 6 Market and Trade Profile USA 1.1 Key statistics: global context and 10 year trend Global context Inbound travel to the UK overview Measure 2016 Measure Visits Nights Spend (000s) (000s) (£m) 10 year trend International tourism 123.6 expenditure (US$bn) 2007 3,551 28,856 2,537 2008 2,950 24,742 2,223 Global rank for international 2009 2,877 23,771 2,173 2 tourism expenditure 2010 2,711 22,739 2,133 2011 2,846 23,333 2,362 Number of outbound 104.7 2012 2,840 23,568 2,436 overnight visits (m) 2013 2,778 21,927 2,539 2014 2,976 27,975 2,944 Most visited destination Mexico 2015 3,266 27,239 3,010 2016 3,455 28,394 3,354 Share of UK total 9.2% 10.2% 14.9% in 2016 Source: International Passenger Survey by ONS, UNWTO, Oxford Economics 7 Market and Trade Profile USA 1.1 Key statistics – volume and value Inbound volume and value Nights per visit, spend Measure 2016 Change Rank out of Averages by Nights Spend Spend vs. 2015 UK top journey purpose per per per markets in 2016 visit night visit Visits (000s) 3,455 6% 2 Holiday 7 £125 £915 Nights (000s) 28,394 4% 1 Business 6 £257 £1,505 Visiting Friends/ Spend (£m) 3,354 11% 1 11 £52 £578 Relatives Study* 42 £122 £5,108 All visits 8 £118 £971 Source: International Passenger Survey by ONS, *small base 8 Market and Trade Profile USA 1.1 Key statistics: journey purpose Journey purpose 2016 Journey purpose trend (visits 000s) 60% 1,800 50% 45% 1,600 1,563 1,400 40% 37% 1,200 31% 1,000 30% 24% 25% 860 20% 800 20% 600 688 8% 6% 400 288 Share Share of visits 10% 2% 1% 200 56 0% 0 Holiday Business VFR Study Misc. Holiday Business VFR Study Misc. USA All markets • 45% of all visits to the UK from the USA were • Holiday visits continue to lead in terms of volume of made for holiday purposes, followed by 25% which visits from the American market. This segment has were visits to visit friends and/or relatives, in 2016. shown strong growth since 2013, resulting in almost • 58% of holiday visits from the USA to the UK (excl. 1.6 million holidays from the USA in 2016. UK nationals) in 2015 were made by repeat • The number of VFR and business trips is still lower visitors. On average an American holidaymaker than it was at the higher level in 2006 prior to the came 2.6 times to the UK in the past 10 years. financial crisis. • Business visitors and those coming to visit friends or relatives who live in the UK are more likely to be repeat visitors (87% and 84% respectively). Source: International Passenger Survey by ONS; repeat / first time visitors question asked in 2015 9 Market and Trade Profile USA 1.1 Key statistics: seasonality Seasonality 2016 40% 35% • The summer quarter remains the most important 35% 28% period for Americans to visit the UK. In 2016, 35% of 30% 26% 27% 25% 22% 25% 20% visits from the USA to the UK were made in this third 20% 16% quarter, followed by 26% in the spring quarter. 15% Americans visit the UK less often in the low seasons 10% Share Share of visits 5% compared to the average international visitor. 0% • The volume in the third quarter has recovered more Jan-Mar Apr-Jun Jul-Sep Oct-Dec strongly than the other quarters since the decline USA All markets immediately following the financial crisis. Despite this positive development the number of American summer Seasonality trend (visits 000s) visits to the UK remains below the level in 2006. 1,400 1,222 1,200 1,000 914 800 768 600 552 400 200 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: International Passenger Survey by ONS Jan - Mar Apr - Jun Jul - Sep Oct - Dec 10 Market and Trade Profile USA 1.1 Key statistics: length of stay and accommodation Accommodation stayed in, 2016 Duration of stay trend (visits 000s) (nights, %share) 1,500 0.5% 0.3% 1,234 1% 2% 1,000 1,108 5% 735 7% 500 355 8% 39% 0 23 Nil nights 1-3 nights 4-7 nights 8-14 nights 15+ nights • American visitors spent on average 8 nights per visit 38% in the UK in 2016. • The most common length of stay for US travellers in Hotel/guest house Free guest with relatives or friends the UK was 4-7 nights, followed by short trips of 1-3 Hostel/university/school Rented house/flat nights. Bed & Breakfast Own home • Two forms of accommodation dominate the picture Paying guest family or friends house Camping/caravan with 39% of nights spent in a hotel or a guest house Other and 38% of nights spent for free in the house of relatives or friends. Source: International Passenger Survey by ONS 11 Market and Trade Profile USA 1.1 Key statistics: regional spread Nights (% share) Visits to the UK in 2016 Region* Nights stayed Visits (000) (000) Total 28,394 3,455 Scotland (SC) 4,109 451 Wales (WA) 410 85 Northern Ireland (NI) 316 54 London (LDN) 12,435 2,322 North East (NE) 612 39 North West (NW) 1,833 191 Yorkshire (YO) 484 99 West Midlands (WM) 926 149 East Midlands (EM) 657 74 East of England (EoE) 1,526 191 South West (SW) 1,513 214 South East (SE) 3,339 427 Nil nights (Nil)* N/A 23 Source: International Passenger Survey by ONS * The region is based on the location in which the visitor stayed overnight 12 Market and Trade Profile USA 1.1 Key statistics: regional spread and top towns and cities Top towns and cities visited 2016 • London is the leading destination for a trip to Britain, accounting for 44% of visitor nights.
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