Understanding Our Key Markets

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Understanding our key markets for Midlothian & Scottish Borders SUMMARY OF REPORT The following market report will give you route to market for the tourism businesses in insights into tourism figures in Scotland and our area. details around our key target markets into Scotland and more specifically into the area of Our priority markets: Midlothian and the Scottish Borders. Links to The UK represents the largest market into further detailed resources have been given in Scotland, staycations are expected to be each section to allow readers to delve deeper on the rise; particularly in view of decreased should they wish to. value of the pound. Without language barriers, easy access to information and booking tools This report will keep linking back to the travel this target group will be willing recipients of trade, which provides not only a powerful social media and PR activities of an area. They marketing and distribution channel but also are very open to explore off the beaten track gives very specific insights into their target destinations. groups – allowing for a potentially lucrative

The USA has been deemed to be one of the priority markets for Midlothian and Borders. • Largest market into Scotland overall in terms of trips and spend • High number of repeat visitors who should be open to explore lesser known regions • Motivators for coming to Scotland • History & Culture • Scenery & Landscape • Scottish ancestry & family connection • To visit cities • Film & TV CONTENT • Ports of entry: • Scotland: Edinburgh, Glasgow, Aberdeen (2%) Summary of Report • Other: Heathrow, Dublin, Schiphol (9%) • Average length of stay in Scotland 8.7 nights Who are the Travel Trade? • Booking period exceeds mostly 6 months in advance of travel • Main travel period April to September Scotland Overview Our activities will concentrate on the entire North American market which includes Canada, Markets smaller in size but similar in characteristics. International Visitors Germany is a strong number two, a loyal market for Scotland with consumers who have a great fondness and connection to Scottish landscapes and traditions. Market Behaviour for our Key Markets • Second largest market in terms of trips and spend • High number of repeat visitors with particular interest in touring holidays by car, open to Booking Behaviour explore new areas. • Motivators for coming to Scotland Market Trends & Megatrends • Scenery & Landscapes • History & culture Future Trends • Cities Product Development • Getting away from it all • Ports of entry: • Scotland: Edinburgh, Glasgow, Aberdeen (5%) • Other: Heathrow, Schipol • Boat/Ferry (15%): Newcastle, Hull • Average length of stay 7 nights • Booking period exceeds mostly 6 months in advance of travel • Main travel period April to September

1 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 2 WHO ARE THE TRAVEL TRADE?

In Summary Key take outs from the trade: Tour Operators as well as Wholesalers distribute • Volume and short-term prospects are looking through Travel Agents. Travel Agents are B2C, Tour positive. The travel trade is generally positive Operators B2B and B2C and wholesalers only B2C. about short term prospects with the majority reporting recent and anticipated increases in The structure of the travel trade: business to the UK. • Travel agents organise personal travel and accommodation for travellers. They provide • Brexit is having an impact on booking numbers travel and tourism services on behalf of suppliers from the cautious German market. Many including airlines, hotels, cruise lines, railways, and consumers have in the early part of the year package tour operators. taken the decision to delay travel to the UK. The concern raised repeatedly is lack of clarity around • Tour operators build a package for the elements entry processes into the country. that make up a holiday or a tour, often dealing with travel, accommodation, transfers and booking • Customisation of trips is on the increase, not only activities at the destination. Tour operators often for individual journeys but also groups tours. specialise in planning for large groups or events, Clients are looking to personalise their travel such as for conferences. An increasing number experience, put their own stamp on it. work online. • Tour operators are working on differentiating from OTAs (third • Wholesalers develop and market inclusive tours through travel agencies. party websites) through value added products and have moved They generally sell to other elements of the travel trade rather than to away from selling accommodation only but instead focus on the public. creating more elaborate programmes to differentiate from the • Tour guides and couriers travel with tourists, and work to ensure OTAs/ third party accommodation websites. travellers’ needs are met, and that their visit runs smoothly. Their work often involves researching on behalf of the traveller, making travel • Increasing demand for experiential trips is a key trend. There is arrangements for accommodation and sightseeing, and organising a growth in special interest and academic groups, and bespoke excursions. Many travel couriers are freelance, and work for tour exclusive, high quality, special experiences. operators. • There is still strong demand for seeing classic sites and • Short break operators offer accommodation packages, usually between attractions but, even in more standard packages, consumers are one and four nights. looking for experiential moments that go beyond the ordinary tourist experience and create a sense of place - “sight-doing not • The work of handling agents, incoming tour operators and ground sightseeing”. handlers begins when overseas travellers step onto British soil and ends when they leave it. Their work involves managing the visitors’ experience • Going to ‘off-the-beaten track’ destinations is a major trend with while they are in the country. Many of these belong to the trade body clients looking for special experiences, hidden gems, to combine UKinbound. the classics with the unusual. However, products are consumer driven – especially in the US markets. Operators will not feature a • Hotel booking agencies specialise in procuring accommodation product that has no proven demand with implications of bringing facilities and services on behalf of their clients. They range from large new products to market. organisations run by global hotel brands, to independent properties.

• As with hotel booking agencies, coach operators range from small • Booking through the trade is a strong trend in Germany however driver-owned companies, to large operators, publishing their own an emerging trend amongst the US and Dutch markets which brochures of coaching holidays. sees an increase in millennials – a segment that is time poor - booking FIT packages through travel agents. • Conference and incentive organisers manage all aspects of conference organisation on behalf of their clients, and often offer tourism-based • For all markets there is a keen interest in scenic driving and incentives for companies looking to reward, encourage and recognise touring to explore the country and the desire to meet locals and high performance. have authentic experiences.

3 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 4 SCOTLAND OVERVIEW Tourism in Scotland in 2017 welcomed 166 record year for international visitor numbers million tourism visits – International, Domestic to Scotland. Overnight and Domestic Day Trips – taken, generating over £11, billion in expenditure. Europe provided the largest single market area Compared to 2016 this represents an increase for visitors, 59% of all international visitors in of 6% in trips and 17% growth in spend. 2017. North American visitors totalled 681,00 trips, with an increase of 13.4%. Visitors from GB residents took 11.7 million trips to Scotland, other countries – Australia, New Zealand, China a 1.3% increase from 2016. By contrast though, and India also grew in 2017 and accounted for UK residents took 72.3 million visits abroad in 638,00 trips delivering an increase of 21% in 2017 – 2.4% more than in 2016. The main reason trips. for domestic visitors to Scotland is indeed Holidays were the most popular reason for holidays, rather than VFF (Visiting Friends & international visitors to come to Scotland Family) and Business Travel. representing 58% of all trips.

International Inbound Markets to Scotland for the year 2017 increased 16.9% in terms of trips in 23% in expenditure. This provides a

period and down by 11.62% for spend. SCOTLAND’S Given the importance of Scottish and English markets, especially in terms of volume, one TOURISM MARKET hopes that this trend can be reversed. There is Globally, tourism is a massive industry, and one good growth in international markets, which is that is growing at a healthy rate. International partly driven by a cheaper pound. tourist arrivals grew by 6% to 1.4 billion in 2018. This has been brought about by stronger global The Scottish tourism industry, has set ambitious economic growth, more affordable air travel, targets for growth, most notably to grow technological changes, new business models the direct value/spend of Scottish tourism to and greater visa facilitation around the world. between £5.5bn and £6.5bn by 2020. However the growth is patchy, with some markets show strong growth (e.g.Middle East, Africa) Now the industry is looking beyond this, and a whilst others are much flatter (e.g. Americas, newly formed Strategy Steering Group has been northern Europe). set up, consisting of a range of leading industry experts and representatives. It is a partnership The position for Scotland is perhaps less between industry, Scottish Government and encouraging. Although 2017 was a very positive public agencies to collectively aim to produce Source: Visit Scotland Scotland’s Tourism Performance Summary Report 2017 – Please note this is tourism an ambitious updated strategy for the future visits – when noted as trips – same applies. year, the latest data from Q3 in 2018, shows signs that the market seems to be stalling. For of Scotland’s tourism industry - called ‘Beyond example the first three quarters of 2018 trips 2020’. were down by 2.64% on the previous period, and there is a more worrying decline in spend The group has only just been formed but it will of 6.94%. This indicates that there is still much be interesting to see which direction the strategy work to be done for Scotland to punch above takes. its weight in a global and extremely competitive industry. (It also shows that media and general 1 Source: Scottish Government website. public perceptions are perhaps out of step with 2 Source: VisitScotland Annual Report 2018. the reality, as news coverage tends to focus on 3 Source: Travel Weekly - 23.01.2019. ‘good news’ stories and the notion that somehow 4 Source: VisitScotland - Q3 2018. Scotland is swamped with too many tourists.) 5 Source: Scottish Tourism Alliance website. Analysing the trips data by geography shows that there must be some concern that ‘domestic’ trips are down considerably - by 7.4% over the

5 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 6 AN A-Z OF IRRESISTIBLE FORCES, UNDERSTANDING THE BIGGER PICTURE TRENDS AND OPPORTUNITIES

We know that if we are to the ability to pay contactless match expectations whilst capitalise on the world’s is key. respecting local traditions and ability and desire to travel in sensibilities? a way that leaves everybody ECO-TOURISM happy and hungry for more As headline after headline we need to be smarter about highlights the plight of the THE TOURIST TAX how we do it. Our research planet we are well placed to It’s coming. What will be has highlighted some trends in be leading in eco-tourism. the impact - and how do we how people travel in Scotland. How do get the message out support the rationale and The trends outlined below to more of the right people manage the narrative so that is by no means exhaustive, and locals? it is seen as a price worth more of an abridged pocket paying? guide to what’s coming and the questions that we need to EXPLORERS NOT TOURISTS Narrative to reflect the reality address. Almost nobody sees and improve the welcome. themselves as a tourist today. Surprise and delight. We know this, but do the AUTHENTICITY majority of people in Scotland? The need to keep it real. We need to change this. INFRASTRUCTURE The quest for authenticity The smarter management is only going to grow, this of. How do we fuel demand should benefit those roads SHORT STAYS - MAKE THEM without over-stressing the less travelled and bring the LONGER. infrastructure, the supply tourist dividend to places off Whilst Edinburgh is groaning chain and the goodwill the beaten track. But are we in July and August the nearby of the hosts? From Skye, prepared, are we really open Scottish Borders would NC500, and Edinburgh in the for business? welcome this problem. How Summer/Hogmanay we need do we encourage more people to get smarter spreading the Scottish Borders & Midlothian seek to inspire to explore, to extend their stay load. For every selfie of the Scotland’s visitor prospects, new, lapsed and repeat, BY LAND, BY SEA, BY AIR by just one day? How can we Fairy Pools we need to start with the exciting and enriching experiences a vacation As more planes and trains land help to spread the people and showcasing alternative sites, in Scotland has to offer. The ultimate success of all we need to make the welcome spread the wealth further? the next new thing on Pinterest your activity, in which digital content plays a central easy, the navigation simpler and Instagram. role, will demonstrable conversion of visitors and the and the journey more joined Retired - but more alive than downstream impact of visitor spend in Scotland. up. (APD & Visas/Immigration SMARTPHONE IS ever. queues are all part of our KING/QUEEN Yes, Scotland obviously needs to attract more visitors, product and welcome whether Are we smartphone friendly? The golden pension is the pot but it also needs to: we like it or not.) With 5G around the corner that keeps on giving. How do • Extend visitors’ overnight stays and stimulate more we have whole swathes of the we do more to tap into this visitor spend on ‘land’ activities. country that struggle to get a global reservoir that often CHINA mobile signal. How do we work seeks culture and creature • Drive year-round visitation, with a focus on capacity Only 1% of passport holders with partners and Government comforts in equal measure? utilisation during shoulder and off-peak months. are currently exploring the to address this fast? wider world on a regular basis. • A further imperative to drive capacity utilisation If we think we’re busy now… is dispersal of visitors across Scotland’s regions. hold on tight. From whisky SORRY WE’RE CLOSED This strategy also extends overnight stays and adds to wilderness and designer A Nation that isn’t open all further diversity to Scotland’s visitor propositions. Tweeds we have it all but do hours or all seasons. The we sell it? Cultural nuances, tourist clock does not respect • Attract more high net worth visitors from the UK and the importance of service, and 5.30pm closing. How do we overseas to stay longer and repeat more frequently.

7 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 8 MARKETS

INTERNATIONAL needs to be noted that trips (6%) and spend (5%) represent a remarkable drop compared 1. U SA has been the top international market the German market. for many years, a solid client group with a high number of repeat visitors which are 5. When matched against Australia figures open to exploring beyond the honey pot drop by 25% in trips compared to France, destinations. Particularly high spend in however the spend is higher. comparison to other markets and due to long haul approach the market tends to holiday 6. T he Netherlands which are in 5th place, for more nights than the European markets. have the same number of trips compared to Australia. However their spend drops to 4% 2. Canada has only a 4% share compared (Australia 6%), which is mainly due to the to 18% overall share of the USA, however Dutch markets love of travelling by camper characteristic of spend and length of stay and caravan, which reduces their spend in are comparable which makes the North accommodation. However leaves them with American market overall an attractive target more disposable spend for attractions and market. activities.

3. German y takes 12% of the international The USA and Germany are the international markets into Scotland. We have seen a steady priority markets for Midlothian and the Scottish increase in visitor numbers since 2011. Due Borders. This is due to their spending power to ease of access the German market will and visitor numbers. The Dutch market will travel for weekend breaks as well as touring receive attention also, it is a popular route of holidays in Scotland. With a 13% share of entry via the ferry ports in Newcastle or Hull spend they are together with the USA ahead that make this an obvious third contender. of the other international markets. 4. Fr ance can be found at 3rd place, however it

Looking closer to home, our UK market remains higher – so while 19% of the total number of the key for Scotland. trips made to Scotland in 2016 were by foreign visitors, this share provided around 39% of The UK remains our biggest market and is of total expenditure. great importance to us; representing 81 percent of trips and 61 percent of spend (2016). During 2017, GB residents took a total of 120.7m overnight tourism trips to destinations International markets are also extremely in England, Scotland or Wales; amounting to important to Scottish tourism. Foreign visitors 369.4m nights and £23.7bn was spent during tend to stay longer than domestic visitors, these trips. their total expenditure during their visit is

9 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 10 In Scotland, 11.7 million domestic tourism trips With the weakening of the pound since 2016 and Planning Main travel Length were taken during 2017 and 6.5 million of the Brexit uncertainty there is a yet to be proven Country Likes 11.7 million domestic tourism visits were holiday assumption that domestic tourism will increase period period of stay trips. The 11.7 million trips generated 39.1 million strongly in the current and coming year or indeed bednights in 2017, however looking at a longer years. view report it equates to a decline of -14.9% since Scotland’s vast and breath-taking 2006. The total spend attributed to domestic More information can be reviewed here from landscape is a key motivator for tourism trips in Scotland in 2017 was £3.0 billion, VisitScotland insights. Australian visitors to visit. History up from £2.9 billion in 2016. Australia and culture is also important, but 6 months + July – Sept 9.6 nights less so in comparison to North Type of accommodation, reasons for visiting & activities undertaken American markets. Ancestral links strong, repeat visitors high. Lothians Going shopping is the number For the source of this information please click here one activity which most Chinese visits will feature, followed by dining in restaurants, visiting Borders 2 – 3 parks or gardens, museums or months China galleries, and castles or historic July – Sept 6.4 nights prior to For the source of this information please click here houses. They are focussed on travel attractions which are well known in China such as Harry Potter related sites, Edinburgh Castle and other big name attractions. A destination full of “myths and legends”, Scotland is seen by French visitors as a place which April – France has much to offer. It is beheld as a 6 months + 8.6 nights SMALLER AND Sept place of vast natural beauty, lochs EMERGING MARKET and panoramic views, enhanced SNAPSHOT by its unique history and culture.

There are a number of smaller and indeed Our close neighbours see Scotland as a short trip emerging markets which might be of 1 – 3 month Irish destination often to visit friends interest for engagement. The list below prior to Feb – Nov 3.2 nights gives a short indication with further more Republic and family. Visits centre around travel detailed information available on: the cities of Edinburgh or Glasgow. For the source of this information please click here The Indian inbound market to the UK is very much influenced and by visits to friends and relatives. 6 months + Dining in restaurants is the with a very For the source of this information number one activity which most April – India last minute 8.4 nights please click here visits from India will feature, Sept booking followed by going shopping, period. visiting parks or gardens, sightseeing famous monuments/ buildings.

11 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 12 INTERNATIONAL & DOMESTIC VISITORS

Since 2011, the Scottish Borders region has seen a decline in the volume and value of domestic overnight tourism, with the numbers of visitors from the UK falling by over a third. Encouragingly, 2017 showed an uplift in numbers of visitors, and their associated spend, on 2016 performance with business visitors levels 17% higher than seen in 2011.

The number of international visitors to the Scottish Borders has also dropped since 2011. This change has been driven by a halving of the number of international holidaymakers in the area and a significant drop in business visitor numbers now making up only 4% of international visitors to the region.

Source: For the source of this information please click here

International visitors to the Scottish shown Edinburgh and the Lothians for Borders (excluding Midlothian) the time being.

PLEASE NOTE THAT THIS DATA SET Domestic Visitors to the Scottish IS NOT AVAILABLE FOR MIDLOTHIAN Borders (excluding Midlothian) which AS IT IS CURRENTLY GROUPED INTO also gives insights into day visitors into EDINBURGH AND THE LOTHIANS BUT the region: WE ARE LOOKING AT WAYS IN WHICH WE CAN GATHER THIS DATA – we have

13 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 14 EDINBURGH AND THE LOTHIANS

Some key tips from VisitEngland on the future trends of the International Visitor can be found here: For the source of this information please click here

15 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 16 RESEARCH AND PLANNING MULTI COUNTRY TRIPS • Almost half (49%) of visitors to Britain started • While the majority of visits to the UK in 2016 thinking about their trip more than 6 months did not include a visit to another country in in advance of taking it. A further 31% started their travel itinerary, 13% did – or 4.2 million thinking between 3 and 6 months in advance visits. for the international visitor. • Our long haul markets such as Mexico, • More than 70% of visitors from our longest Australia and Brazil were most likely to haul markets - Australia and New Zealand – include a country before their UK stay. started thinking about their trip more than 6 months in advance. • Countries in the Asia Pacific region accounted for 7 of the top 10 markets for visiting another • When looking at responsibilities over the country after leaving the UK. holiday planning process, ‘researching’ and ‘booking’ are more likely to be done by the • The Eastern European countries of Hungary, individual, whereas shortlisting and finalising Romania, Bulgaria and Poland feature in a destination are done in consultation with the top 10 markets for those most likely to the travel companion. visit another country both on the way to the UK and after leaving. These visitors are • Globally, the biggest influence on destination dominated by lorry drivers. choice is word of mouth, with talking to friends and family key for 40% of visitors and Read our full report on Multi country visits considerers. (PDF, 618KB). Published October 2017. • Just over half (53%) of accommodation TECHNOLOGY AND SOCIAL MEDIA bookings were made directly, and just under • Britain’s cultural attractions remain the top • The most popular use for social media is to half were made via a third party agent or reason to visit Britain, with 42% of visitors access news (53%), followed by uploading comparison site. and 47% of considerers citing this as a key photos or videos (47%). reason for visiting or considering visiting. • The majority (62%) of holiday bookings • Over two thirds (69%) agree that they like were made via a travel agent, operator or Read our full report on Researching and to stay connected when on holiday. Three comparison site. Whilst two thirds of these Planning (PDF, 1.2MB). Published March 2017. quarters agree that their smartphone is bookings were made online, over a quarter essential when they travel, and 56% say the were still booked face to face (booking in a same for their tablets. travel agent). BOOKING • The majority of international travellers (61%) • Half of visitors to Britain booked their travel • Online travel agencies are used often, with have shared photos of a holiday online, and and accommodation separately, and the the main motivation being to compare prices 42% have done the same for video. other half booked as a package. (71%),and finding something within budget (67%). • Whilst on holiday, social media is most often • With the exception of Australia and New used to keep in touch with home, followed by Zealand, long-haul visitors were more likely • The products that are most often purchased posting or uploading photos. to book their trip to Britain as a package, and before travelling to Britain are airport transfers European visitors were more likely to book (36%) and tickets for tourist attractions (31%) • Whilst many are happy to use their their travel and accommodation separately. and theatre/musical/concerts (30%). smartphones abroad, an overwhelming proportion (83%) still wish that it was cheaper. • Almost two thirds (64%) of travel bookings Read our full report on Booking a holiday Read our full report on Technology and took place directly with the provider, and (PDF, 988KB). Published April 2017. Social Media (PDF, 1,118KB). Published April 36% were with a third party. 2017.

17 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 18 MARKET BEHAVIOUR FOR OUR KEY MARKETS

This section will look at the market UK behaviours of our key markets, Examining all overnight tourism trips in GB by their likes and dislikes, mode of region of residence and region visited, with the travel to Scotland what attracts exception of Wales and London, the largest them into the country. proportion of tourism trips in each region was made by residents of that particular region.

It is important to acknowledge the value of same country trips, in particular within Scotland wherein these trips account for around half of all domestic trips. Excluding Scotland itself, the largest proportion of all tourism trips to Scotland are from the North West of England.

Source For the source of this information please click here

19 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 20 A lot of work has been done previously around the UK market with particular emphasis on the different target segments within this very valuable The above slides are taken from the VisitScotland UK tourist report market. 2017 which has all the data from the GBTS survey For the source of this information please click here

21 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 22 These segments can be broken down as follows: Adventure Seekers / 9% of UK households Engaged Sightseers / 8% of target UK households

“Adventure Seekers want an active holiday where they can enjoy both outdoor and cultural activities. They will venture off the beaten track and will be engaged by trying “A love of holidays drives Engaged Sightseers new things and pushing their limits and to plan numerous breaks in a year. They experiences. Holidays will really energise enjoy general sightseeing and touring, them”. taking in historical places as well as scenery and nature. They relish engaging with Top 3 Factors when choosing friendly locals and seeking out an authentic a holiday destination: experience”. • Breath-taking scenery & landscape • Lots of new and interesting things to Top 3 Factors when choosing discover a holiday destination: •Great range of outdoor activities • New and interesting things to discover • Breath-taking scenery and landscape • Fascinating history & culture

Curious Travellers / 14% of targeted households

“Curious Travellers like to live life to the full and enjoy traveling as a hobby. They Food Loving Culturalists/ 12% have an overwhelming desire to explore new destinations and discover new things. of targeted UK households A holiday will often broaden their minds, educate and revitalise them”.

Top 3 Factors when choosing a holiday destination: • New and interesting things to discover • Breath-taking scenery and landscape “Food-Loving Culturalists will seek out a re- • Fascinating history & culture laxing holiday experience where they can enjoy great food and drink and engaging cultural activities. They enjoy short breaks in the UK and will recommend quality experiences when their host has gone the ‘extra mile”.

Top 3 Factors when choosing a holiday destination: • Great food and drink experiences • Fascinating history and culture • Breath-taking scenery and landscapes

23 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 24 Natural Advocates / 8% of targeted UK households

“Natural Advocates are passionate about Scotland as it offers everything they want from a holiday; breath-taking scenery, a connection with nature and the chance to get away from it all. A holiday in Scotland will really help them to unwind, recharge and enjoy quiet time”.

Top 3 Factors when choosing a holiday destination: • Unspoilt nature • Relaxing place to unwind • Breathtaking scenery and landscapes

*Northern Ireland USA

As of 2011, Northern Ireland trop to the UK are American visitors to Scotland continued to grow no longer collected in the domestic tourism in terms of both volume and value of visitors, monitor (GBTS). Information was provided by with Scotland welcoming over half a million the Northern Ireland Statistical and Research visitors from the USA for the first time in 2017 Agency (NISRA) – 200,000 Northern Ireland with a total spend of £566 million. residents took overnight tourism trips in Scotland, Scotland enjoys a 3 destinations visited, spending £87 million. Good flight connectivity between the American positive image amongst besides Greater Glasgow East Coast and Edinburgh and Glasgow, means US nationals. In general, and the Highlands & For a more detailed view of target segments, it’s easy to see why the USA remains our largest Scotland is viewed as a Islands. their likes, dislikes and preferences: single market. In line with the seasonal nature of country of great natural routes to Scotland, almost half (45%) of all trips beauty, rich in history and Further down the list For the source of this information by our American adventurers occur between culture, all of which are of activities, but notably please click here July and September, with only a quarter of trips explored within the top 5 higher for visitors from in October to March, the traditional low season. activities in Scotland. the USA than others is the To gain more insights into Visit Britain audience visiting of film locations. and understand the customer journey from the The long-haul nature of a trip from America to Scotland’s reputation Currently and very much initial inspiration stage through to booking a trip Scotland also means most visitors spend one to as the ‘Home of Golf’ is notable - Outlander Film and how they differ per follow this link: two weeks here, averaging at 8.7 nights. another inspiring factor Locations. for visitors from the USA For the source of this information and leads to the Lothians please click here to be amongst the top

25 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 26 BARRIERS TO TRAVEL

Although Scotland may enjoy a positive image a perception that Scotland is an expensive amongst consumers from the USA, we need to travel choice. be aware of the range of barriers which may be in the mind-set of visitors when considering • A lack of knowledge of multiplicity of locales their holiday destination. and range of activities to do in the evening may also hinder consideration. • The biggest barrier to consideration of Scotland is awareness. Locations closer to For more details visit the market factsheet home are often more top of mind for the provided by VisitScotland: traveller from the USA. For the source of this information • Cost is a critical factor in choosing a please click here holiday destination and there may also be

GERMANY

The German market, like the rest of the Euro markets, benefited from “It’s all about 3 things for me - castles, hills and sea - I good exchange rates in 2017. This favourable exchange rate could have want to escape the city and be in the vast, open beautiful been behind the increase of average landscapes” spend per trip of £597 in 2016 to £767 in 2017 and an overall growth “The castles, the wildlife, the in expenditure of 34% year-on-year. lakes, the pubs and the music” Arriving to Scotland by sea grew in popularity in 2017, with a growth of sea travellers increasing by 16% in The German market is as organised - when it real terms between 2016 and 2017. comes to booking their holiday, - as rumour Visitors that arrive by sea, generally has it. On average, visitors from Germany bring their own cars or campervans start to plan about 6 months ahead. They are and have a tendency to visit many likely to use multiple types of information in places in Scotland which benefits a planning their holiday, particularly brochures balanced regional spread. which are collected from one of the many major holiday shows which happen across Germany from November until February. They also are influenced by the internet and talking with friends and family. Despite many Germans having a good grasp of English which they like to apply while in the country, they prefer their travel information used for planning in German.

It is particular to the German market, that following advance research they will approach a travel agent or tour operator to make the booking.

Length of stay will depend if it is a short break or the main holiday of the year. It will be from three nights to 14 day holidays that are frequently taken. However, the 8 day touring holiday is the norm from this market.

27 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 28 BARRIERS TO TRAVEL

Although Scotland enjoys a positive image food value for money being ranked below an amongst visitors from Germany, we need to be 8 out of 10 within the Scotland Visitor Survey. aware of the range of barriers which may be in the minds of visitors when considering their • Possible lack of awareness of different holiday destination. locales in Scotland, often perceived as “one destination” when there are many different • Cost is considered a critical factor in choosing regions and areas to discover. a holiday destination and some may perceive Scotland as being a more expensive choice, with satisfaction of accommodation and

For more details visit the market factsheet provided by VisitScotland: For the source of this information please click here

Or in more detail: For the source of this information please click here

BOOKING BEHAVIOUR UK

The UK market has easy access to the domestic to book their UK holiday through a travel product which sees it’s booking pattern to be company or travel agent this year, up 6% and vastly different to the international markets. 4% respectively. As were people in London, Wales, North East and the West Midlands (up, • Domestic main holidays or indeed trips centred 9%, 3%, 1% and 1% respectively). around a family event may be booked 6 months in advance whereas a range of shorter trip can Consumers generally seek information and be booked very much last minute. inspiration online via review sites such as TripAdviser. • The use of three main channels for booking holidays is consistent, with four in five people Where bookings are being made direct, the UK booking a holiday online (81% in 2018 vs 83% market will turn to their firm favourite third party in 2017). Phone bookings and booking in store sites: have also remained steady (both 15% in 2018 vs • Tripadvisor.com 16% and 17% in 2017 respectively). This suggests • Booking.com the shift towards booking online has stabilised. • Airbnb • For domestic holidays, people still prefer to • Expedia book through a holiday booking website (48%) • Trivago or directly with the service providers (46%). • Skyscanner • Hotels.com Source: www.geckoroutes.com • Interestingly there have been some changes among the most and least well-off travellers. People in these social groups were more likely

29 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 30 TRAVEL AGENTS AND THE UK HOLIDAY MARKET

Travel agents have to work hard and rething if they would like to get a look into the domestic market. However travel agents who are embracing domestic tourism as part of their business models are finding it a welcome boost for business.

More prone to cover low season business, unlike the international market which tends to travel in high season mainly, it can be lucrative business.

London, York and Edinburgh are the most popular cities for short breaks thanks to the convenience of the high-speed east coast train line.

Some operators, specifically coach tour operators, focus mainly on the older target group. Coach package are very successful across the UK, particularly during the week in the low season when prices are cheaper.

CTA – the Coach Travel Association - is a unique trade organisation of UK based coach tour operators which brings regular business from their member companies into Scotland.

Do we have more info here on who the main operators working across the regions? I.e. what operators are working in the different markets?

For more information on UK market booking patterns see: For the source of this information please click here

31 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 32 arrangement (i.e. travel and accommodation USA combined) which is higher than in many The experience of the operator is being used other source markets. as consumers increasingly seek to personalise their holidays. Off the shelf programmes Trips for holiday purposes is a growing segment than the all market average. • Prior to trip: Nearly one in five Germans may be used as the basis of a holiday and within the American overseas travel market booked theatre/musical/concert tickets then adjusted to suit the customer’s specific overall. Visit Britain research has concluded • About one in four bookings were made face before their journey and nearly one in four likes and interests. Alternatively, consumers that - to face for these holiday packages. This is bought tickets/passes for miscellaneous will book an existing package and add an similar to the global average of 27%. tourist attractions in advance. individual extension programme. They are • 60% of American holiday visitors tend to looking at putting their own stamp on a holiday. start thinking about their trip to Britain early, • During the trip: More than one in three bought Consumers rely on the trade to provide them more than half a year in advance. TRAVEL TRADE INSIGHTS tickets/passes for miscellaneous tourist with information on the ‘not to miss hidden attractions. One in four purchased guided gems’ a destination has to offer, as they seek a • Almost a third of American travellers booked Insights from tour operators from the US sightseeing tours outside of London. unique holiday experience. their trip to Britain three to six months before Market tell of a noticeable growth in millennials arrival. A quarter booked last minute (within booking FIT packages through travel agents. Brexit is a clear barrier to travel however one month before arrival to Britain). Their feeling is that this segment is time poor anecdotally it seems to have more of an and happy to have a professional company do TRAVEL TRADE INSIGHTS impact on booking numbers to England rather • Websites providing travellers’ reviews, the packaging for them. In addition, with global than Scotland. With consumers unsure about information from search engines and word- uncertainty a reality, having the security of a The German pattern of booking via a Travel procedures and requirements of entering of-mouth influence the destination choice of travel agent to help them out is an attractive Agent remains strong. There is an increased the country many have taken the decision most Americans. proposition. sense of need for safety in terms of wanting to delay travel for a year from 2019 to 2020. to discuss holiday plans with an experienced The devaluation of the pound following the travel professional and have a point of contact • The majority of the American travellers to In the luxury segment, operators reported referendum in 2016 had a positive impact Britain (70%) book travel and accommodation that 70% plus are still booking through travel together, mostly online. They are also more agents and they expect this trend to continue. likely than the average visitor to purchase tickets for tourist attractions and guided Later booking cycles continue to be a trend sightseeing tours prior to their trip. across all destinations. • However, Americans are more likely to book directly with the airline / train / ferry operator or directly with the accommodation provider

GERMANY

Visit Britain insights tell us that German visitors as a package 71% chose to book it through tend to have a long lead-in time in comparison a travel agent, tour operator or travel to other markets. They start thinking about comparison website. before, during and after the holiday with the for the German market with the destination their trip early with the majority as early as half ability to turn to a contact person or company seeming to be more affordable, satisfying the a year or more in advance - • Most bookings to Britain were made online; with questions and, especially, problems. very strong demand of value for money. however, when travel and accommodation The terror attacks of recent years in Europe • Almost half of German visitors looked at are booked together, one in three visitors and general political situation have only The Dutch market is very similar in terms of options and prices between three and six made the booking face-to-face. This is a fairly strengthened this consumer pattern. booking characteristics to the German market. months ahead of their trip and 44% also large share in comparison to other European The internet seems to be used mainly as an This market has a high prevalence to travelling made the booking in the same time frame. markets. information tool, consumers using sites such in a motorhome and caravan which sees Only one in five were more spontaneous and as tourist boards, TripAdvisor and also the tour the spend, due to reduced accommodation booked the trip to Britain less than a month • German visitors have become increasingly operator website to gather information, look bookings. On the upside this means that the before travelling to Britain. comfortable with booking their trips to at price guidelines and then turn to a travel Dutch market has more disposable income to Britain online – through tour operator sites agency or the operators booking centre for spend on sightseeing and experiences. • The majority of Germans who booked travel - especially when they booked travel (i.e. the booking. and accommodation separately booked it transport to Britain). directly with the service provider e.g. airline ‘The German traveller to Britain plans their trip (80% and 63% respectively). When they • More than one in three bookings were well in advance, the UK is not a spur of the bought travel and accommodation together made face to face when booking a holiday moment destination.’ Quote from a German Tour Operator.

33 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 34 MARKET TRENDS GERMANY

Market and travel trends provided by the travel trade show remarkable similarities across a range of • There seems to be a resurgence of coach for experiential travel. Consumers are wanting international and indeed domestic markets. holidays, with group travel being a strong seller to experience rather than just see. Classic at the start of the booking season (November). visitor attractions are still in high demand and Coach bus tours which start in Germany with represent the framework of a good programme, companies taking clients across to the UK by but this is now supplemented by soft activities USA ferry have been particularly popular. This type such as taking a walk, ditching the car/ coach of holiday satisfies a certain need for travel for a train journey, or experiences such as a safety, allowing customers to avoid airports distillery visit with a tasting or other hands on • There is a strong demand for authentic • Multi-generational travel has been reported which have been terrorism targets in recent experience. years. experiences as part of the visit and this is by several operators as being a key trend. • Operators are expecting a steady growing a strong driver in consumer choice – as one Consumers are increasingly keen to share big • There has also been a trend for smaller group demand for ‘safe and green’ destinations and operator put it “sightdoing not sightseeing”. moments with their loved ones. The trend tours in recent years. One operator specialising expansion plans are built around this increased Even in more ‘standard’ packages, consumers has a significant impact on accommodation in study tours has seen unprecedented demand demand. Hotel only sales are becoming less are looking for experiential moments that go needs and how tours are being packaged. for a new product type which offers small important with the tour operators not willing beyond the ordinary tourist experience and group holidays at a relaxed pace with hands on to enter a losing battle with online reservation create a sense of place, such as sampling local • Culinary tourism is in increasingly popular experiences and activities. agents. Instead their focus will be on well fare or meeting local people. In addition to trend and will receive a warm welcome from researched holiday experiences, packaged for being enriching and fulfilling, for millennials the trade. A growing demand has been • The trend of seeking ‘Quality at an affordable individual travellers and groups which allow these are valuable social media moments detected year on year for experiences that price’ remains strong on the German market. customers to experience their travel destination which they can share with their networks and allow consumers to get beneath the skin of a Clients will compare prices not only of packages at a relaxed pace. gain kudos. At least one operator felt that destination through its culinary experiences. available within the county but also across this was a real opportunity for secondary international travel destinations. The UK overall • It has been suggested that the biggest change destinations. • Travelling ‘off the beaten track’ destinations is considered to be an expensive destination in in the market is the way holidays are being are on the increase as customers want to go comparison, with the quality being below that marketed. With greater emphasis on social • Soft adventure is now being included in beyond the traditional tourist destinations. of other destinations, specifically in terms of media there has been a real shift in their target many packages from US operators. It is This is reflected in both escorted tours and accommodation. group which in turn will be reflected in future important that there is an understanding that FIT programs. product development. • Another notable trend is the increased demand soft adventure can mean different things to different people and will very much be target • Terrorism and global crises are a concern groups dependant. To some it may be a short on the US market with reported short-term UK domestic market trends walk in the countryside, to others a few hours negative impact. However, consumers have of kayaking along the Scottish Coast, or proven to be resilient and destinations indeed an action-packed week-long cycling bounce back more quickly than they used to. holiday. The impact of Brexit on this market is viewed by operators as a short-term opportunity to • Value for money from this market considered offer consumers better value. There were to be high spending plays an important no concerns about access to the UK as a role still - the concept of value is very destination or instability. much in the eye of the beholder. For some it is about a low price and some operators Source: pointed to consumers increasingly booking the ‘bare bones’ and then adding on extras For the source of this information themselves. Other consumers are more focused on ensuring that they get the best please click here experience, ‘bang for their buck’ and that there are special touches which add value and make them feel taken care of – the wow factor. The current exchange rate in the US is also a significant value factor in Scotland’s favour right now.

35 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 36 postponed and even repeated, consumers are For more detailed information and to gaze into experiencing living on ones own across any the future follow this link: number of points in their life - bringing with them all the related consequences of single For the source of this information living into their leisure activities. please click here Consumer trends are transforming the travel journey.

MEGATRENDS

Global tourism experts refer to twelve 3. EVOLVING TRAVELLER – recognising Megatrends happening today. By merging the many different types of visitors, both these original twelve, four key Megatrends culturally and demographically. evolved into the most relevant for Scotland looking forward to 2025. 4. TECHNOLOGY TO STIMULATE AND INFORM – using widely available technology In a nutshell these are the four – and data capture to improve and influence the visitor experience. 1. EXPERIENCE MORE – offering more genuine experiences and helping visitors to be more For details on the trends please follow this link: than ‘tourists’. Taste, see, feel the experience, i.e. Harris Gin, waterside activity holiday in For the source of this information a converted oil rig, food market as a place please click here This is taken from the UK tourist report 2017 which has all the data from the GBTS survey to meet, eat and be entertained. Immerse For the source of this information please click here yourself and make a sense of place your own, Future Trends – You can also read more on i.e. bush craft in a Swedish Forest, staying in the selected that are already relevant today a tree house, eat with the locals. but most importantly, will have a significant impact on how consumers will approach the GENERAL TRAVEL TRENDS 2. LIMITLESS DISCOVERIES – marketing the travel journey in the next 5-10 years. whole of Scotland, not just the favourite places. Developing experiential itineraries For the source of this information Future travel and market trends are influenced the main factor for the number of European on routes off the beaten track, i.e. Iceland please click here by a number of factors. These include the visitors to the UK and connectivity is key when no 1 route, reinventing areas previously economy, with the middle-class growing considering inbound visitors from long-haul undiscovered in the county and cities. in size across the world, which will lead to a destinations. higher demand in tourism from middle-class consumers. The face of the global consumer landscape is rapidly evolving as developed markets become Globalisation which gives access to ageing societies. This is changing consumer international media, food and brands, has behaviour, causing individuals to delay major driven cultural commercial change – consumer milestones until later in life, or to repeat them choice has exploded across the world with no and to live in more mixed generation or solo borders and no limits. households. As people are living longer and more active lives, while adhering less and less Research done in 2016 showed that all of 21 to a traditional order of key life stages, it is nationalities questioned, unanimously strongly becoming less relevant to think about travellers agreed that they would like to immerse in terms of their age and more in terms of their themselves in the culture of the destination interests. they travel to and feel like a local. It used to be the case that in most consumers’ lives periods of solo living were concentrated Connectivity is a significant factor in the in young adulthood and later life. However, process of consumers deciding where to today, as life stages become more flexible and take a holiday. Geographical proximity is traditional milestones like marriage get shuffled,

37 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 38 ACTIVITY TRENDS

Activity Trends for Scotland – key heritage related activities than anywhere else insights in Britain, with castles, museums and famous buildings especially popular. • Scotland sees relatively long stays and visitors are likely to go on tours giving them • Local contemporary culture is often also part opportunity to undertake a wide range of of a visit to Scotland, with visitors more likely activities. to include going to art galleries, live music, festivals and pubs than those going to many • Scotland has broad appeal, although a other regions of Britain. notably high proportion of visitors are from Germany and the USA. Scotland is especially • There is a high degree of seasonality with known in the US and there is strong interest many visiting in the summer. Around half of but there may be opportunity to develop visits include visiting the countryside and / growth from northern Europe. or walking whilst Scotland is also the most popular area in Britain for golf. • Scotland’s heritage is a huge draw. Scotland sees higher proportions of visits including

39 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 40 PRODUCT DEVELOPMENT

It is evidenced through many reports and cook and eat the lobster on the beach, with a insights that the traveller now books holidays local chef. Or something showcasing our local and trips based on experiences they want to agriculture by creating farm tours, or electric try, go to places they haven’t been to before bike holidays to even bringing the history alive and to immerse themselves in the local through augmented and virtual reality. culture and history. They want to experience these things first hand. They want something Here are examples of case studies that have authentic, unique and memorable. There is been done here: a real opportunity to develop collaborative products that bring this destination alive. For the source of this information Whether it be going out to catch lobster with please click here the fisherman and coming back to shore to

There has also been some excellent product development in Phase 1 of MBTAG through the Ideas Fund and other initiatives and would only encourage more as this is what the visitor and travel trade are looking for.

You can also look at the MBTAG website www.mbtag.uk for more information on insights / reports and trends to the destination.

41 Understanding our key markets for Midlothian & Scottish Borders Understanding our key markets for Midlothian & Scottish Borders 42 For more information please contact:

Jemma Reid Project Manager MBTAG [email protected]

Yvonne Wagoun Travel Trade Specialist [email protected]