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MARKETING REPORT – UK EUROPE JUNE – OCTOBER 2010 Overview MARKETING REPORT – UK EUROPE JUNE – OCTOBER 2010 Overview of the European Travel Industry Global Tourism Trends The last quarter has been a challenging year for the travel industry globally; and although the ash cloud has gone from the skies above northern Europe, global tourism continues to see disruption from other causes, including industrial action, forest fires in Russia, the oil spill in the Gulf of Mexico and flooding in northwest Asia. 1 According to the latest European Travel Commission Quarterly Report on ‘Trends and Prospects for European Tourism’, European tourism is indeed improving from the declines seen a year ago, but recovery remains ‘modest’, and in part reflects strong domestic rather than cross-border travel. The Ipsos survey results revealed that even if the economic crisis affects summer booking trends, Europeans travellers still have a strong desire to travel abroad2. The study also shows that 80 % of Europeans will remain in Europe for their vacations whilst 48 % will remain in their own country. Destinations reporting healthy growth in international arrivals so far in 2010 include Singapore, Turkey, India, China and Australia. According to IATA, in June international air travel was 11.9% up on a year ago, though with sharp regional variations; traffic in Europe increased just 7.8% in comparison to 15.5% in Asia Pacific3. IATA continues to note that the aviation sector is recovering faster than predicted, especially outside of Europe. Long-haul business class travel continues to outperform non-premium and short-haul traffic. Within the UK market, the decline in outbound travel by UK residents that was a feature of 2009 appears to show no signs of abating. Figures for the first six 1 Visit Britain Tourism Trends Quarterly August 2010 ‐ http://www.visitbritain.org/Images/TTQ%20Aug10_tcm139‐ 194776.pdf 2 Summer trends Tourmag.com June 2010 3 Visit Britain Tourism Trends Quarterly August 2010 ‐ http://www.visitbritain.org/Images/TTQ%20Aug10_tcm139‐ 194776.pdf 37 months of 2010 reveal a 10% decline in outbound travel and 5% fall in spending on outbound trips4. Other factors such as the rise in fuel cost and VAT are expected to contribute to further decline in the UK outbound market. According to a research done by Mintel the increase of VAT from January 2011 and higher fuel costs will make holidays more expensive from next year, which could cause a further dip in the market5. "Higher holiday prices due to high VAT will hurt the market as the costs of low- cost flights are increased; and "changing exchange rates and higher fuel costs will play a major role in holiday prices in the coming years and higher prices will limit volume growth", says Mintel. The Caribbean travel industry also faces its own challenges. Visitors from the UK will see a further increase in Air Passenger Duty in November this year. UK arrivals to the Caribbean this year are down by as much as 10%, and on one island by 25%, following the rise in Air Passenger Duty (APD) last November6. The decline is causing alarm as the next APD increase on November 1 will trigger a further dive in the number of UK tourists after a survey found almost one-third of British visitors said they would not return if fares rose too much. Key Factors Impacting on Tourism • Demand for international air travel in July was 9.2% up on a year ago according to IATA; European carriers continue to lag those in other world regions with growth of 6.2%, by contrast Middle East carriers saw traffic 16.8% up on July 20097 • IATA report that in June business class airline travel increased globally at an annual rate of 16.6%, considerably faster than economy class travel at 9.5% • UK consumer confidence improves marginally during August • Euro zone inflation reaches its fastest rate for nearly two years • Euro zone unemployment remains at an average rate of 10.0% across the 16 country bloc • The European Central Bank ups its forecast for Euro zone economic growth in 2010 to between 1.4% and 1.8% and in 2011 to between 0.5% and 2.3% 4 Visit Britain Tourism Trends Quarterly August 2010: http://www.visitbritain.org/Images/TTQ%20Aug10_tcm139‐ 194776.pdf 5 TravelMole: “Holiday Market will take 5 years to Recover, says Mintel” http://www.travelmole.com/stories/1143890.php 6 Travel Weekly : “Alarm sounded over drop in UK visitors to Caribbean” http://www.travelweekly.co.uk/Articles/2010/09/09/34628/alarm‐sounded‐over‐drop‐in‐uk‐visitors‐to‐ caribbean.html 7 Visit Britain Trends Update 2 September 2010 http://www.visitbritain.org/insightsandstatistics/trendsandforecasts/trendsupdate/tu136.aspx 38 • Kiss Flights becomes the latest UK based budget outbound tour operator to collapse during the peak summer trading period • The German government has approved an air departure tax that passengers will need to pay from 1 January 2011; the fee will be €8 on short-haul flights, €25 on medium-haul and €45 on long-haul flights CTO UK ACTIVITIES CTO UK operates a vibrant chapter which currently stands at 98 members. In order to ensure that members are provided with continuous marketing and networking opportunities a comprehensive programme of activities is coordinated annually. June-September 2010 Dive Guide The 2011 Dive Guide is currently in circulation. It is a 24 page, full colour, glossy guide with information on all 34 member destinations. The cost of the publication was covered through the sale of advertising. Caribbean Ball The UK Chapter hosted its successful and ever popular annual summer ball, at the five-star Dorchester Hotel, on London’s Park Lane, on Thursday 17 June 2010. Attended by 350 guests, the black tie event began with a Champagne reception, with a steel band. There were four key sponsors this year: Travel Weekly, British Airways, Virgin Atlantic Airways and exposure4. Proceeds from the raffle on the night raised will be shared between The CTO Scholarship Foundation and CTO’s Relief Fund for Haiti. Online Marketing Seminar The CTO hosted two free one-day online marketing seminars facilitated by Leadgenerators, one of the UK’s leading online marketing agencies, on 15 June and 8 July 2010. The seminars were designed to help members develop stronger and more effective online campaigns. CTO Charity Golf Day On 14 July the CTO organised its annual golf tournament at the Silvermere Golf Club in Cobham, Surrey, welcoming 60 golf enthusiasts. This year a donation on each ticket sold went to the CTO Haiti Relief fund. Sponsors for the day included Virgin Atlantic and Fotoseeker. Guide to the Caribbean The CTO UK worked with BMI Publications for the fifth year, to produce the 2011 Guide to the Caribbean. This is a full colour, glossy publication, which 39 was previously 52 pages, but for the 2011 edition, it was increased to 60 pages of information, targeting the UK market, with a circulation of 50,000. The cost of the publication was covered through advertising. Special Offers Brochure The CTO worked with its members to highlight available special offers for the winter months. An 8 page brochure was produced and distributed to 20,000 consumers and trade, to highlight and promote the Caribbean destinations. Northern Ball In an effort to promote membership of the CTO UK, the Chapter will have a presence at the Northern Ball. This event, organised by leading trade publication Travel Weekly, will be held at the DeVere Whites Hotel in Bolton and is a key travel trade networking event for the North of England. CTO UK Chapter Networking Meeting CTO UK Chapter Members will celebrate Caribbean Month at the Commonwealth Club, London on Tuesday 28th September. Membership update 2010/2011 The CTO UK Chapter has finalised the renewal subscriptions for the 2010- 2011 Membership period. There are currently 98 Chapter members – with 4 new members joining recently. Courses in the Caribbean – new for 2010 The CTO will move its regular agent training events to the region; it will begin a series of ‘Courses in the Caribbean’ familiarisation trips, which will include a 7 night twin-centre trip to showcase 2 or more of the member countries. The first of these trips will take place at the end of September 2010, travelling to Saint Lucia and Trinidad & Tobago. The group will consist of 14 travel agents with escorts from the CTO and Saint Lucia and Trinidad & Tobago. There are also plans for a Trade Journalist to accompany the group. Caribbean Training Programme UK travel agents continue to support the Caribbean Training Programme by working their way through the modules to achieve their certificates. The Caribbean Training Programme was revised to coincide with the new and updated TravelFax. Upcoming Activities October - December 2010 Wedding Shows The CTO will participate in the National Wedding Show, London and the Scottish Wedding Show, Glasgow, in October this year. The CTO will once again launch its annual Wedding & Honeymoon Guide 2011 at the London Show. The Guide will be distributed at all UK Wedding Shows, within goody 40 bags and from the CTO stand in 2010 and 2011, and also at other upcoming trade and consumer shows. Top Resa CTO will be participating in the 32nd edition of Top Resa on 21-24 September and will be sharing a Caribbean stand with Barbados, Cayman Islands, AM Resorts, and Superclubs. Other exhibitors in the Caribbean area include Cuba, Dominican Republic, Martinique, Guadeloupe, Jamaica, Bahamas and Saint Lucia. Rum & Rhythms The CTO will host its second consumer event showcasing Caribbean cuisine, rum and music at London’s Vinopolis. The event will give visitors the chance to sample a wide selection of Caribbean rums plus a range of gastronomic specialities from 20 exhibiting partners.
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