Gesamtbericht

ETC Study on Latin American Outbound Travel

Report on the Argentinean Market

conducted on behalf of the European Travel Commission

Munich, July 2000

IPK International Gottfried-Keller-Strasse 20 D-81245 Munich tel: +49-89-8292370 fax: +49-89-82923726 e-mail: [email protected] http://www.ipkinternational.com

Table of Contents

INTRODUCTION...... 1

EXECUTIVE SUMMARY...... 3

I. MARKET OVERVIEW

1. The Country ...... 12 1.1 Basic information ...... 12 1.2 Population...... 14 1.3 Economic situation...... 16 1.4 Summary of the main economic trends...... 21

2. Internet: A New Technology in Tourism Activity...... 22

3. The Argentinean Outbound Travel...... 28 3.1 Argentinean outbound tourism by flights...... 28 3.2 Argentinean travel volume to ETC-member countries ...... 31 3.3 Number of trips and profile of Argentinean tourists that travel to the United States...... 33

4. The Argentinean travel trade market...... 35 4.1 Airlines operating European destinations...... 35 4.2 Travel agencies...... 37 4.3 Tour operators ...... 39

II. RESULTS OF THE SURVEY ON THE ARGENTINEAN TRAVEL TRADE

Preliminary remarks ...... 41

Methodology...... 42

1. Description of clients who currently book trips to Europe...... 48

2. Market development of trips to Europe ...... 55 2.1 Market development within the last three years...... 55 2.2 Changes with regard to target groups within the last three years ...... 59 2.3 Changes with regard to travel characteristics within the last three years ...... 61 2.4 Market development within the next three years...... 63 2.5 Changes with regard to target groups within the next three years ...... 68 2.6 Changes with regard to travel characteristics within the next three years ...... 70

3. Type of trips to Europe...... 72 3.1 Purpose of trips to Europe ...... 72 3.2 Present types of vacation trips to Europe ...... 74 3.3 Types of vacation trips to Europe with best market prospects ...... 78

4. Travel characteristics of trips to Europe...... 81 4.1 Travel season ...... 81 4.2 Length of trips ...... 82 4.3 Travel party...... 84 4.4 Types of accommodation...... 85 4.5 Preferred means of transportation within Europe...... 86 4.6 Booking method for trips to Europe...... 88

4.7 Time of booking ...... 89

5. Price aspects of trips to Europe ...... 90 5.1 Price ranges which have good market prospects...... 90 5.2 Current Price levels for packages and flights to Europe ...... 92

6. Satisfaction with trips to Europe...... 93 6.1 General level of satisfaction with trips to Europe ...... 93 6.2 Aspects that travelers found of the most/least satisfaction during their trips to Europe...... 94 6.3 Level of requirements of Argentinean tourists traveling to Europe...... 98

7. Image and attractiveness of European countries...... 100 7.1 Image of European countries...... 100 7.2 Tourist attractiveness of European destinations ...... 103 7.3 Main tour attractions in Europe ...... 106 7.4 European destinations with the best market prospects...... 108 7.5 Most sold destinations in Europe ...... 111

8. Difficulties encountered in selling Europe ...... 118

9. Route analysis ...... 121 9.1 Main outbound airports to Europe...... 121 9.2 Main inbound airports in Europe ...... 122 9.3 Favorite connections in Europe...... 123

10. European national tourist boards ...... 125 10.1 Awareness of European national tourist boards...... 125 10.2 Expectations towards European national tourist boards ...... 127

10.3 Activities which could be carried out together with the travel trade...... 128 10.4 Concrete support from European national tourist boards...... 129

11. Media to promote Europe in Argentina...... 130 11.1 Relevant measures to promote Europe in Argentina...... 130 11.2 Possible changes in used information sources ...... 132

12. Cooperation with service-rendering companies in Europe ...133 11.1 Most booked hotel chains...... 133 11.2 Most used airlines ...... 135 11.3 Most used tour operators ...... 136

III. INFORMATION ON EUROPE PRESENTED IN THE CATALOGUES AND IN THE ARGENTINEAN MEDIA

1. Analysis of the cataloges of tour operators ...... 138 1.1 Countries, cities and regions offered...... 140 1.2 Themes of packages offered ...... 145 1.3 Types of packages offered...... 146

2. The Argentinean media...... 147 2.1 General remarks ...... 147 2.2 Newspapers...... 149 2.3 Travel magazines...... 150 2.4 Trade publications...... 151 2.5 Analysis of advertisements and articles published in the relevant newspapers and travel magazines...... 152

Appendix: Questionnaire

INTRODUCTION

In January 2000 the European Travel Commission (ETC) commis- sioned IPK International and its partner in Brazil, Ruschmann Con- sultants, to conduct a study of the Brazilian and Argentinean outbound travel market.

The objective of this study is to provide the National Tourist Offices united in the ETC with basic information based on reliable data for their future marketing work in Brazil and Argentina.

The study of the Latin American tourist outbound market for the countries participating in the European Travel Commission (ETC), with an emphasis on the data related to the flows from Brazil and Ar- gentina, aims to: q Determine quantitative and qualitative data about the outbound tourism of these countries for the purpose of providing ETC and its members with more detailed information about these markets; q Provide subsidies for future marketing actions in these markets by ETC members’ National Tourism Organizations (NTOs).

In order to accomplish the objectives proposed, the study applies qualified data collection and analysis methods in Brazil and Argentina gathering information related to the: q Number of tourists that travel: to countries in Europe (ETC members), and to the USA

q Characteristics of tourists who have traveled to Europe: Bio - social - economic profile Travel characteristics of those tourists Satisfaction levels of those tourists with their trips q Data from tour operators, travel agents and airlines about tourists and the kinds of trips currently taken (status quo), and their future potential: Most relevant aspects of clients and tour flow trends Difficulties encountered in organizing European trips.

To fulfill all of the ETC's information needs, the study was conducted according the following work steps:

Desk research on available data concerning outbound travel from Brazil and Argentina to Europe and North America

Field Research in the form of expert interviews with representatives of the travel industry (tour operators, travel agencies and airlines) in Argentina and Brazil.

Munich, July 2000

EXECUTIVE SUMMARY

Executive Summary

The quantification of tourist demand from Argentina to Europe is necessary to understand the limits and tendencies in the studied markets. For the ETC members, the delimitation of the current demand universe is important so that they are able to better understand the economic, environmental, cultural and social impacts of these visitors, which will serve as a basis for an appropriate planning process, within social-economic and environmental controls, aimed at optimizing travel to Europe.

Travel to Europe

It can be assumed that currently about 300,000 trips to Europe are undertaken by Argentineans. The main destination countries in Europe are Spain (about 170,000 trips), Italy (110,000 trips), France (90,000 trips) and the United King- dom (70,000 trips). The incoming volume for trips from Argentina is decidedly less than 50,000 trips per year for all other ETC member countries.

Travel to United States of America

The number of Argentinean tourists that traveled to the United States in the year 1999, according to data from the National Institute of Statistics and Census (IDEC), reached the 370,000 mark.

The Argentinean trade

As in Brazil, the Argentinean tour operators and travel agencies are currently going through profound changes. The Argentinean Association of Travel Agents (AAAVyT) counts 730 members.

Currently, there are 26 airline companies that operate international flights, of which 15 go to Europe.

In general, there are international tour operators who manage the travel market to Europe in Argentina. Many of the national tour operators work with the same international Operator, and therefore only carry out the role of intermediaries or retailers. As in Brazil, many of the national tour operators only commercialize products that come ready from Europe.

Packages offered in the catalogues of tour operators

Regarding the packages offered in the operators catalogues, three countries stood out: Spain, Italy and France. Differently from Brazil, the tour packages offered in Argentina seem more homogeneous, including less cities and focusing more on the capitals and consecrated cities.

In general, the cities that stand out most are the Spanish in the first place, followed by Italian and French. Paris is the most advertised city.

In Argentina, most of the packages to Europe have as their main theme history and culture (sightseeing). There is a low incidence of packages featuring sun and beach holidays, as European beaches end up experiencing very strong competition with the Brazilian and Caribbean ones.

The most frequently offered lodgings in the catalogues are the Deluxe Class hotels, followed by Intermediary and Economy hotels. According to the information given by the trade survey, the most requested lodgings are the intermediary (3-star) hotels.

The main image of Europe presented in the catalogues refers mainly to its cultural aspects, with emphasis on urban architecture, castles and monasteries, and folklore events.

Expert survey with the Argentinean travel trade

The main findings of the expert interviews carried out with representatives of 10 Argentinean tour operators, 30 Argentinean travel agencies and 4 airlines can be summarized as follows:

According to the Argentinean travel trade surveyed, the sales of trips to Europe are based on two segments: leisure trips and business trips. The first represents an average of 75% of trips, while the second reaches an average of 25%.

Concerning the profile of the tourists that travel to Europe, it is observed that people with a higher average annual income, higher educational level and that are of the age range between 31 and 49 years old stand out.

The development of the market for trips to Europe during the last three years has shown an increase in the total sales. According to the travel trade surveyed, 1999 was a difficult year due to the recession and to the fact that since it was an election year, there were some doubts about the conversion plan’s continuity. However, the decrease in air tariffs and the credit plans put Europe within everyone’s reach. The number of business trips also grew, due to the fact that many private companies are owned by Europeans, especially Spanish.

It was observed that there was a modification in the clients' profile. Despite the fact that Europe can still be considered as an expensive destination for most of the Argentineans, there were modifications in the market that made it possible for tourists with lower age and income levels to have better access to this destination.

Concerning the market’s future, it hopes for an increase in the total sales. The interest for Europe could grow due to a broader presentation of Europe in the mass media, especially in magazines and the tourism sections of the major newspapers. However, cable TV shows outstanding aspects of different places in Europe, especially through channels like the Travel Channel, Discovery Channel, People and Arts etc. These programs not only refer to landscapes, but also show outstanding aspects of gastronomy, culture, history, etc.

The USA will continue to be the major competitor to Europe. There is basically no difference between the tariffs to Miami and New York and those that have the European capitals as destinations. The fact that electronic products have almost the same price in USA as in Argentina (the difference is compensated with the service obtained buying in the country) is making the shopping motivation disappear more each day. This trip reason, major attraction of the USA, is disappearing. But it is still considered that in the Duty Free Shops of the major airports – including Ezeiza, Buenos Aires – one can get the products that usually would be acquired in Miami for a good price.

The majority of tourists travel in couples or as individuals. A reduction in the participation of people who travel in formal or informal (forfait / package) groups has been observed. In the opinion of the travel agents, the current market tendency are for personalized trips that do not favour the formation of those groups.

Concerning the duration of the trip, the interviewed pointed out the current tendency of shorter vacations (an average of 20 days).

The general average package price obtained from tour operators and travel agents was about US$ 1,800 for a three-week package. The payment facilitation practice is also common in Argentina, in which the total is divided up into equal instalments (interest-free).

In general, the trips are concentrated during the period from April to Sep- tember. However, there is a market tendency for the lengthening of the season, as a function of differential price promotions between high and low seasons and methods of payment. Another important factor to consider is the tendency in leisure trips to travel to Europe during the Argentinean winter, and during the summer go to the beach resorts on the Argentinean coast, or to the south of the country.

Concerning the type of trip, tours thorugh several countries or to a particular country visiting different places of interest stand out. The short distances make it possible for the visitor to become familiar with many attractions in a reliatively short period of time.

The main motivation that leads a person to choose Europe as destination is the historical/cultural aspects: museums, urban sites and tourism highlights that are typical of each city (or sometimes the country). The Argentinean en- joys contact with local communities, typical gastronomy and seeing each city’s architecture. One of the most valued aspects of European cities is the order and infrastructure provided for the tourist, and also the efficiency of urban transportation.

In relation to what Argentineans who travel to Europe dislike the most are the high prices and also language difficulties.

The main destinations in Europe are Spain, Italy, France and United King- dom.

Paris is the “best seller” city in Europe. Madrid, Rome and London follow it in importance.

According to the travel trade surveyed, Spain, France, Italy, United King- dom, Czech Republic, Greece and Germany constitute countries that could count with a potential in the future.

Concerning the general image of European countries, France, Italy and the United Kingdom have a great image, followed by Spain and Germany.

In what concerns the attraction level, France, Italy and Spain are pointed out again, followed by the United Kingdom, Greece and Germany. Among the countries classified as being of medium attraction, The Netherlands, Turkey, Austria, Switzerland, Czech Republic, Belgium, Monaco, Sweden and Nor- way are pointed out.

It was observed that there is a great lack of knowledge from the travel agents about several countries, amongst which it is worth mentioning Esto- nia, Cyprus, Slovenia, Iceland, Malta, Croatia and Bulgaria.

The information handed by the tourism representations to the Argentinean travel trade is not totally satisfactory. The Argentinean travel trade is asking for more promotional and advertising material. They also request more workshops or conferences about aspects of the destinations oriented to the travel agencies.

It is recognized that the most effective way to make some type of advertisement activity of the European countries in Argentina is through written press.

Recommendations

Taking into consideration the analyzed aspects of the outbound market of tourists from Argentina to the ETC member countries, it is considered that: o Argentina faces serious problems in its economy which, besides causing impacts in all socio-economic aspects, are also reflected in tourism, in both the inbound and outbound flows; o The Argentinean economy has suffered temporary financial adjustments due to the demands of international financial organizations (IMF) or to compen- sate the internal balance of payments. Argentina can be described as a market with unpredictable short term economic reactions, causing changes which are reflected intensively in the outbound tourist flow; o The expectation of a positive economic recovery in the long term, has led to a tendency for tourist flows to increase, both inbound as well as outbound; o The price factor constitutes the main obstacle to the increase of tourist trips to the European continent; o The strong competition with the Caribbean countries and the USA is a point to be overcome in the activities aimed at increasing the flows of Argentine- ans. The Caribbean and the USA are also represented to a greater extent on the Argentinean market.

o According to assessments by the interviewed Argentinean travel trade members, an increase of about 10% for trips to Europe could be expected under favorable economic conditions; however, the air fare (through which demand could be activated on a short-term basis) is at any rate decisive; o Regarding market strategies to increase Argentinean tourist flows to the ETC member countries, it is recommended to concentrate on the following factors:

¾ The main motivation for trips to Europe is sightseeing-culture-history;

¾ The prospects of pure sun + beach destinations must be characterized as limited for Europe on the whole;

¾ In increase in the commercial relationships between the countries' representatives and the Argentinean operators in the delivery of information, promotional material and in the sales efforts (workshops, familiarisation tours, seminars, trade fairs, regional festivals, etc.);

¾ A competitive policy in the price of airline tickets, through bilateral agreements on the development of charter flights, in adequate forms of installments and in the negotiation of promotional tariffs;

¾ The creation of packages especially for the Argentinean market and not the adoption of packages originally conceived for the European market;

¾ 3-star (intermediary) offerings should be promoted to a greater extent than de-luxe offers;

¾ Since round trips through several European countries will be the primary offer for the Brazilian as well as the Argentinean market in future, joint campaigns by the ETC countries would be the obvious choice, both as regards the combination of the packages and of promotional activities;

¾ As regards the market prospects, of the two investigated countries Brazil ultimately seems to be more promising than Argentina.

I. MARKET OVERVIEW

1. The Country

1.1 Basic information

Argentina is located in the extreme south of the American continent. It has a territory of 3.7 million km2, including 964,000 km2 of the Ant- arctic territory and the islands in the South Atlantic.

The national territory has a population of 36.2 million inhabitants and integrates 23 provinces and the federal capital, which is settled in the city of Buenos Aires.

Argentina

Geographic Situation: Currency of the Country: • South America • Argentinean Peso Population in 2000: Currency rate in march /2000: • 36.2 million • US$1.00 = $1.00 Territory: GNP (1998) : 298.1 million pesos • 3.7mil Km2 Annual Inflation (1998) : Government System: • 0.3% • Presidential

The country has boundaries with Bolivia in the north, Paraguay in the northeast, Brazil, Uruguay and the Atlantic Ocean in the east, and Chile in the west. It features an extensive seacoast from Rio Del Plata to the so-called Terra del Fuego.

Through constitutional disposition, Argentina adopted for its Govern- ment the representative, republican and federative form. The Consti- tution in force since 1853 was last modified in 1994, which kept the Central Government in three powers: executive, legislative and judi- ciary. The executive is performed by the President and Vice- President of the Republic for a period of 4 years. The current president, Fernando de La Rua, elected in October 1999, beating the candidate of the previous president, Carlos Menem, whose policy led to the internationalization of the Argentinean economy and to the strictness of the exchange in relation to the American dollar.

The new President received the support of the International Monetary Fund that showed it through a loan of US$27.0 billion to face the current problems of exchange reserves and the Argentinean balance of payments. His speech pointed to the cut in public costs and high aus- terity in the economy, warning Argentineans that hard times are coming, so that this economy can recover and start to grow again at rates compatible with the necessary development for the nation’s welfare.

The country's currency is the Argentinean Peso, whose exchange rate in relation to the American dollar is 1.00 peso for US$1.00 (pegged to the US$ since 1991).

The Argentinean per capita GNP, used as a reference of the relative wealth of the country, is the highest of the South American countries, reaching US$9,700 in 1998.

1.2 Population

The urbanization rate is 88.0%. The population living in the country has been increasing at an annual rate of 1.1%, and the estimate for the year 2015 is of a total of 43.5 million inhabitants. 46% of the Ar- gentinean population live in the city of Buenos Aires and in the province of Buenos Aires.

Characteristics of the Argentinean Population in 1997 Population Absolute (millions) Yearly Growth (%) Total 36.1 1.10 PEA(1) Urban 14.2 2.20 PEA Rural 1.6 - 0.60 Buenos Aires 11.8 -

Source: INDEC/1997 (1) Economically Active Population

Most of the total population is in the age group of 15 to 64 years old (60%), 29% are younger than 15 years and people aged over 65 years old represent 11% of the total population. An increase in life expectation over the last 10 years has been observed, now reaching 73 years of age, following the world tendency towards a better quality of life. It is worth adding that the human development index in this country is the highest in South America, reaching 0.888 and featuring the 30th position in the world ranking.

The workforce in the country is currently 15.8 million inhabitants, of which 87.6% are effectively employed as follows: 17.9% in the Proc- essing industry; 18.5% in the Trade of Goods; 7.2% in Civil Construc- tion; 11.9% in the Financial, Real Estate & Entrepreneurial Services and Real Estate Rental; 2.9% in Hotels & Restaurants; 8.6% in Transport; and 5.5% in the Public Administration.

Percentage of Employed Workers by Professional Qualification (October 1998) Level of Qualification Percentage out of the Total (%) Total of Workers Professional 10.4 1,439,443 Technical 18.3 2,532,866 Operational 42.2 5,840,817 No Qualification 28.1 3,889,265 No information 1.0 138,408 Total 100.0 13,840,799

Source: INDEC / 1998

The consumption needs of this population, and where they spend their income to cover them, can be summarized as follows: they spend 54% on basic needs (food, habitation, clothing); 4% on education; 9% on health; 14% on transport and communications; trips, leisure and culture account for 8%; 12% on other expenses, according to statistics obtained in the Family Budget survey in the year 1996/1997 carried out by the official agency of the Argentinean Gov- ernment, INDEC (National Institute of Statistics and Census).

Consumer Habits in 1996/1997

Groups of Expenses Average Monthly Family Expenses (%) Basic needs 54.0 Education 3.7 Health 8.6 Travel/ Leisure 8.0 Transport & Communications 13.9 Others 11.8 Total 100.0

Source: INDEC – 1996/ 1997

1.3 Economic situation

Argentina, together with the other Mercosul member countries, has felt the effects of the world financial crisis which began in 1997 with its events and impacts on the less developed economies, and mainly on those which depend on external investments to balance their balance of payments.

Factors such as the restriction to external credit for financing, the devaluation of the Brazilian currency in relation to the American dollar, and the fall in the prices of commodities in the international market have influenced the Argentinean economy very much, and certainly will influence the increase of the Gross National Product and its main components.

In this case, the Gross National Product (at 1993 prices), after pre- senting positive annual increase rates in 1997 (8.1%) and 1998 (3.9%), started to decrease in the first two quarters of 1999 (-3.0% and –4.9%). It resulted in a decrease of –3.1% in that year according to estimates of the International Monetary Fund in its Global Eco- nomic Panorama released in March 2000.

Annual Variation Rates of the Gross National Product at Argentinean Market Prices and Consumer Prices (%) 1997- 1999 Year Gross National Product Consumption 1997 8.1 7.9 1998 3.9 3.3 1999 -3.1 -

Source: INDEC/2000

As to the monetary aspects, the value of the Gross National Product, at market prices, for the year 1998 and released by the Secretary of Economic & Regional Planning of Argentina was 298.1 billion pesos. The service rendering accounted for 61% in this composition and the goods producers accounted for 32%.

As a result of this recessive picture, the open unemployment, meas- ured on the economically active population was of 13.8% in October 1999, revealing an increase, if we take into account this rate in the same month of the previous year (12.4%).

Activity and Unemployment Rates (%) - Urban Zones (October 1994-1999) Year Activity Unemployment 1994 40.8 12.1 1995 41.4 16.6 1996 41.9 17,4 1997 42.3 13.7 1998 42.1 12.4 1999 42.7 13.8

Source: INDEC/2000

The historic series presented in the table above shows a reversion in the fall of unemployment in Argentina as of 1999 because of the world economic picture, causing social effects and consequently leading to a retraction of the consumption of goods and services offered in the economy.

As with Brazil, this conjectural scenario variable in the emerging economies reaches a significant part of the workers, and makes the access to goods that demand a higher financial disbursement more difficult, among them, we can mention travel and tourism.

Another consequence of the strong de-acceleration of the economy was the deflation of prices in the last six months (October 1999 to March 2000), which went down 1.49% a month on average. The groups with more influence in this behavior were food and beverage, clothing and habitation.

Unlike this tendency, the indices that reflect a price variation of goods and services correlated to travel and tourism revealed an increase of 3.6% in the last 5 years.

Annual Consumer Price Variation in Argentina (%) / 1994-1998

Year General Food/Beverages Clothing Housing 1994 4.2 1.4 -2.5 8.4 1995 3.4 2.8 -2.0 5.0 1996 0.2 -0.5 -3.8 0.3 1997 0.5 -0.7 -2.9 -0.6 1998 0.9 1.7 -2.5 -0.8 Source: INDEC/ 1998

As to the foreign sector and the exchange policy, Argentina has kept its exchange rate fixed in relation to the American dollar. This fact, in a certain way makes its foreign trade situation more difficult in the Mercosul, mainly for the position of Brazil in relation to this variable. However, up to 1998, the balance of the trade balance with the member countries was positive. However, it started to go down as of 1996, despite the increase in the volume of transactions – that went from US$13.7 billion in that year up to US$17.3 billion in the end of the period.

In the world, Argentina had a negative balance of US$4.0 billion in 1997 and US$4.9 billion in 1998 in its trade balance, in which the imports accounted for US$30.4 and US$31.4 and the exports accounted for US$26.4.

Trade Balance (US$ million) – Argentina / 1994–1998

Year Exports (FOB) Imports (CIF) Balance 1996 23,811 23,762 49 1997 26,431 30,450 -4,019 1998 26,441 31,404 -4,963

Source: INDEC/ 1998

The data presented for the first semester of 1999 indicates clearly the effects of the recessive context in the emerging countries, including Argentina. During the first six months of that year, the exports were of US$11.5 billion, resulting in a fall of 15.3% in comparison with 1998. On the other hand, imports went more intensely down, accounting for 24.7%, which totals US$11.8 billion.

The current tendency of the foreign trade indicators show an increase in exports of 5.0% and in imports of 6.0% in the month of January 2000, confirming the negative results of the Argentinean trade balance.

The super-valuation of the Argentinean peso is estimated at 6.1%, if we take into account its main commercial partners, such as Brazil, Chile, the United States, Germany, Japan and Italy, which favors the increase of imports by Argentina and makes the exports of this country to the others more difficult.

As to travel and tourism, this super-valuation stimulates tourist imports, that is, Argentines traveling to other countries.

We should ask now what is the position of the Ministry of the new Government to face the balance problems in the balance of payments, so that it can stem the capital outflow and stimulate the foreign investment inflow.

It is believed that, because of the cultural heritage of the Argentinean people, the travel and tourism market is little affected by this recessive picture, alerting for the fact that the world conjuncture forecast for the year 2000, according to estimates of the International Mone- tary Fund, will show an increase in the world GNP of 4.2%, whereas the Argentinean GNP will increase 3.4%, as well as the recovery of commodities prices in 3.4% in the same year.

These factors cherish the expectation of the emerging countries, such as Brazil and Argentina, towards the strengthening of their economies through the reduction of unemployment and the price stabilization with the consequent maintenance of the purchasing power, compatible actual interest rates with the need for economic increase, and an exchange policy that allows a real gain to exporters and that is compatible with the foreign trade in the exchange of goods and services.

1.4 Summary of the main economic trends

Taking into account the positive expectations of the Global Economic Panorama edited by the International Monetary Fund in March 2000, as well as the struggle of the new Argentinean Government to balance its internal and external finances, some trends are presented with some caution, once that country is passing through a political and economic transition process in relation to the globalization of the economy and its impacts on the markets of the emerging countries.

The main trends to be mentioned are :

Increase in the GNP of 3.4% for 2000 and 3.7% for 2001, according to estimates of the International Monetary Fund;

Increase in Exports as a consequence of the commodities price recovery in the international market;

Gradual reduction of imports aiming at the elimination of the defi- cit in the Argentinean trade balance;

Reduction of the unemployment rate, as a consequence of the economic increase proposed for the next years;

Increase in the aggregated demand for basic goods and services and for travel and tourism;

The reduction of international interests as a consequence of the fall in the increase of the American economy that, according to the International Monetary Fund, the United States will increase 4.4% this year, and 3% in 2001. This fact contributes for the decrease of the pressure exercised by this variable on the Argentin- ean external debt;

Stabilization of consumer prices and the exchange parity between peso and the American dollar;

2. Internet: A New Technology in Tourism Activity

The world has lately been witnessing an information revolution since the advent of Internet, a tool invented by Americans, and that has generated numerous economic impacts and drawn the attention of millions of people in search of more efficient channels, not only information channels but also product distribution and trade channels without the physical barriers previously existing.

In Latin America, according to North-American studies, the number of users has been increasing at a rate of approximately 32% a year - higher than in the United States. According to research carried out by IBOPE – the Brazilian Institute of Surveys and Research, Brazil had 3.5 million users in December 1999, and in February 2000, only two months later, the number of users was already 4.5 million.

Argentina, in its turn, registered a number of 330,000 users in 1998 and 590,000 in 1999. It is estimated that, by the end of the year 2000, the number of Argentineans accessing Internet will reach one million, according to the American consulting firm, Raúl Bauer Inter- national Data Corp.

These numbers drew the attention of numerous investors to the Web, as they see the possibility to make fast profit in an environment with great growth potential, but which is still in need of rules and regulatory mechanisms. Nevertheless, whether this growth will keep its pace is doubtful, both in the Brazilian and Argentine market.

In Brazil, experts consistently raise arguments justifying an atypical growth due to a process observed in the country: the phenomenon of free Internet access, whose motto in the market is “Every Brazilian has the right to free access to the Web, just as they have the right to watch TV by paying only electricity”, which was launched by companies and greatly advertised in the media.

On the other hand, Argentina expects a more significant growth as of the end of 2001 on the occasion of the total deregulation of the tele- communications sector. It is expected that 155 access providers will render services to 80 Argentinean cities, out of which the small- and medium-sized companies absorb 60% of the market and the remaining 40% is held by a small group of large-sized companies.

Yet either in a larger or smaller volume, what we can now observe is a growth tendency in internet access, and not only in the social classes with higher purchasing power: Brazilians ranked in social class C increased their participation up to 50%, and those in classes D and E nearly doubled. This development has been supported by the decrease in computer prices, in addition to financial incentives offered by the banks and even computer manufacturers. In February 2000, users in Brazil were ranked as follows: 78% are in classes A and B, 18% in C, and 4% in classes D and E.

In its turn, the effects of the new information technologies on product distribution, mainly tourism products (by airlines, tour operators and travel agencies from Brazil and Argentina) indicate an accelerated change process in current and future market activity.

This current scenario of changes demands accurate perception in the elaboration of competitive strategies to face the new market forces, by trying to identify the segments in which these activities will have an impact.

Airlines, for example, are making a move, started in the Northern Hemisphere (mainly the United States and Great Britain), to reduce costs by using the Internet. This action affected the travel agency sector that was informed about the reduction of commissions paid by those companies.

The fact is that airlines do not fear a boycott (despite the fact that

their sales are based approximately 70% to 90% in the travel agency sector), since they are increasingly investing in sites to offer an efficient reservation system. According to newspaper articles, the airlines VASP, TRANSBRASIL, UNITED AIRLINES, TAM and VARIG, will in the coming months begin to sell flight tickets on-line, which is expected to account for 5% of the total revenue, a reduced index but with a great growth potential in the near future.

Company On-line Sales Revenue/ Estimate Investment Launch TAM December/99 R$1.5 million US$1.5 million VARIG January/98 US$ 5 million US$100 thousand* VASP March/2000 - US$10 million ** Transbrasil February/2000 R$ 48 million - United Airlines March/2000 US$ 2 million -

Source: Gazeta Mercantil, 01/28/2000, C-6 *In the homepage restructuring **In the restructuring of the whole corporate network

As to travel agencies and tour operators, Internet is not expected to cut them out of the market, but soon they will have to pass through a restructuring, to adapt to the new reality. One of the possibilities is travel consulting services. In other words, travel agencies should be more and more aware of their role which goes beyond selling flight tickets. Also, travel agencies and tour operators should start to invest in the on-line market, preparing sites of value-added services, such as flight ticket, hotel and car rental reservations.

We should emphasize, however, that the purchase volume through Internet is still low, mainly in relation to tour packages. A significant part of the “internauts” (internet surfers) still feel the need for a personal contact, some physical evidence of the company with which they are doing business, because it is difficult to choose a complex

product without the human presence, and also to run the risk of giv- ing the credit card number in an environment where security is still doubtful. The alternatives that have been used to surpass this barrier range from the installation of call centers to the opportunity to visit the companies’ facilities in order to close the deal.

In Argentina, according to Mercado Magazine Sector Report (June 1999), businesses via Internet in the country reached US$12 million.

According to research carried out by the Brazilian Association of Travel Agencies – ABAV – in 1999, some critical points could be identified in the Brazilian sector, which can be generically extended to the Argentinean sector:

Knowledge about and access to Internet: Among the group of travel agencies and tour operators, a significant part (45%) does not yet show any concern about the new technology, whereas another part, in an uncertainty mood, does not know how to fit their market actions in this segment. Therefore, nationally speak- ing, Internet is still little used as a working tool, since 71.4% of the sector is not present on the Web yet. The situation becomes even clearer when we take into account the use time of this tool:

Internet Use Time Relative Participation % Not Connected 71.4 One year 17.5 Two Years 8.5 Three Years 2.3 Four Years 0.3 Five Years 0.1 Source: ABAV, 1999.

Product Trade and Sales:

As to the trade of tour products via Internet, only 17.9% of the distributors make use of this means. In national terms, this number is restricted and concentrated on the big urban centers, and only very few of them operate exclusively through Internet. That is the reason why we can affirm that its use is still strategic and seen as a complementary means of sales and expecting future capacity.

Among the distributors not trading their products, 56% intend to do it, whereas 44% do not show any interest in the virtual market.

As to sales on-line, it is necessary to note that, among the distributors that did businesses through Internet in 1998, 63.2% used to have a revenue in this modality of over US$100,000 a year, an index that in 1999 reached 67%.

A fundamental factor refers to the creation of sites on the Internet. It is important to take into account that internet surfers demand qualified, objective and easy-to-access sites. The most usual process in the search of information about a tour destination is to access search engines that provide correct addresses, or to access specific tourism channels inside these engines. It is still very unusual, if we consider leisure tourism, that users know exactly the right address to look for, and even more unusual that they buy services via Internet. This characteristic is much more frequent in business tourism.

In the Brazilian and Argentinean search engines, most of the information found in the specific travel and tourism channels is about national destinations. Information about international destinations is more commonly found in the sites of travel agencies and tour operators, as well as in the official sites of such destinations, usually spon- sored by the State. Another interesting source is personal pages or statement sites, where one can find tips, tour itineraries and curiosi- ties, always seen through the eyes of tourists visiting the place.

In the research of sites specifically about Europe, some of them pre-

sented very interesting contents, such as information about customs, how to get a visa and a passport, packages, itineraries, travel tips, and even the opportunity to register on-line to receive bulletins or to make reservations.

Among the sites designed for hobby, non-profit or non-commercial activities, some stand out for their quality and organization, such as “Enjoying Paris” (www.curtindoparis.com), in Portuguese, and “More Italy than ever” (www.piuitalia2000.it), in Spanish, Portuguese, Ger- man, Italian and Polish.

Other very interesting sites are those designed by Consulates and Embassies of European countries which portray the country not only in terms of tourism, but also in terms of politics, economy, commerce, culture, among others. It is relevant to notice that some of these, however, lack indispensable information such as the need for a visa, maximum visit time permitted in the country, tour information centers, useful telephone numbers, or even the services rendered by them.

Thus, we can verify an extremely fertile scenario for the development and growth of European destinations in the Internet, which depend exclusively on avant-garde technological actions, being noteworthy for the diversity of products and service rendering quality. In the short term the advertising of destinations, tour attractions and travel tips to Europe will have faster penetration in the market, but e-commerce has showed high growth rates. So it is that out of the 56% of Ameri- cans browsing in the Internet before travelling, 5% purchases through the Internet and, in 90% of the cases, they buy on-line again. Therefore, the rush for this new product that features proportions only compared with the Industrial Revolution, according to some re- searchers, has already begun, and it is Europe’s task to decide how to participate in this process.

3. The Argentinean outbound travel

3.1 Argentinean outbound tourism by flights

The data of the National Institute of Statistics and Census (INDEC) on Argentinean international outbound tourist flights provides the basis for calculating the volume of Argentine visitors to the individual ETC member countries.

INDEC shows the following figures for Argentine international outbound tourist flights for the years 1997 to 1999:

Outbound tourist flow of Argentineans by flights 1997-1999 (Thousand) Caribbean U.S. and Year Mercosul Chile Europe Others Total Index Islands Canada 1997 1,435.8 139.1 124.5 373.0 223.2 123.9 2,419.5 100.0 1998 1,355.2 148.0 134.2 374.9 260.9 156.6 2,429.8 100.4 1999 1,357.8 151.9 117.1 370.7 292.8 154.5 2,444.8 101.0

Source: INDEC / January – 2000.

Within this context, South America reveals itself to be the first destination chosen, followed by the United States and Europe. This fact is closely related to the thesis that supports a higher incidence of cross- frontier tourism in relation to long-distance tourism (intercontinental).

In 1999, Mercosul (Brazil, Uruguay, Paraguay) received 56% of the Argentinean outbound tourism by flights. Brazil is the main destination, followed by Uruguay.

North America, accounting for 15% of the Argentinean outbound demand by flights, which amounts to a travel volume of about 370,000 trips per year, has experienced a slight decrease in 1999 compared to 1998.

Europe, accounting for 12% of the Argentinean outbound demand by flights which amounts to a travel volume of about 290,000 trips per year, has shown a continuous growth over the past years: 17% between 1997 and 1998, and again 12% between 1998 and 1999.

We should add that in the last three years the total outbound tourist flow of Argentineans to other countries by flight has shown only a modest increase of 0.4% between 1998 and 1997, and of 1.0% between 1999 and 1997.

This result may be reflecting the retraction in the flow of Argentinean tourists visiting other countries, as a consequence of the world economic conjuncture that has been affecting the less developed countries since the Asian crisis of 1997.

In the last years, Argentineans have preferred to take one-week vacations on average due to costs and climatic conditions, and one or two more weeks during the year. This behavior, according to the opinion of tour operators, is related to the total cost composition of annual trips, since the prices of tourist products go up to 40% on average in the high season. For this reason, the distribution of trips in two phases, one in the high season and the other in the low season, influences the average final cost to be paid.

Outbound tourist flow of Argentineans by flights 1999

Others 6% Europe 12%

North America 15% Mercosul 56%

Caribbean 5% Chile 6%

Source: INDEC / January – 2000.

3.2 Argentinean travel volume to ETC-member countries

To obtain the total number of trips to each ETC – European Travel Commission – member country, due to the inexistence of official data which answers the question, it was necessary to make an estimation based on the:

Total number of Argentineans who traveled to Europe by flights (year basis 1999), provided by the National Institute of Statistics and Census (INDEC): 292,800;

To those countries that demand the issuing of a visa, the number of visas issued in 1997;

And the general average of the sales flow for the countries that do not demand the issuing of visas, based on the trade survey.

To each individual ETC member country the number of trips by Ar- gentineans can be allocated as follows:

Countries Number of trips Spain 170,000 Italy 110,000 France 90,000 United Kingdom 70,000 Germany 35,000 Greece 20,000 Austria 15,000 Czech Republic 15,000 Netherlands 15,000 Switzerland 15,000 Belgium 10,000 Portugal 10,000 Turkey 10,000 Denmark 5,000-10,000 Finland 5,000-10,000 Norway 5,000-10,000 Sweden 5,000-10,000 Bulgaria 1,000-5,000 Croatia 1,000-5,000 Hungary 1,000-5,000 Poland 1,000-5,000 Cyprus Less than 1,000 Estonia Less than 1,000 Iceland Less than 1,000 Ireland Less than 1,000 Luxembourg Less than 1,000 Malta Less than 1,000 Monaco Less than 1,000 Slovenia Less than 1,000 Source: Estimation based on study results

3.3 Number of trips and profile of the Argentinean tourists that travel to the United States

In Argentina, there is not much recorded data concerning the volume of trips abroad, including trips to Europe and the United States. The difficulty of obtaining data points to a certain ignorance of the market.

According to the INDEC – National Institute of Statistics and Census, the number of Argentineans that traveled to the United States in 1999 was 370,700, showing a decrease of 1.1% in relation to 1998

From information taken from some Argentinean travel agencies and published in an article from the newspaper “Gazeta Mercantil” (Feb- ruary 24th, 2000), the United States and Europe remained as stable destinations in January 2000, in relation to 1999, even with a decrease of 40% in the packages prices.

This can be explained due to the Argentineans' preference, around four years ago, in choosing short trips. Due to the costs and climatic conditions, the tourists prefer to take only one week of vacation in summer, high season, and one or two additional weeks during the rest of the year. This happens with tourists originating from the capital or its surroundings, however, the scenery still is of longer trips, when dealing with other provinces.

The ITA - International Trade Administration provides some information referring to the profile of the South-American tourist that travels to the United States:

In 1998, considering the general South-American profile, there was a great concentration of the flow in Florida State, with 61.5% of the total volume, followed by New York (25.4%), California (11.3%), Texas (4.2%), Illinois (4.0%) and Nevada (3.6%). Concerning the cities, the most visited by South-Americans were Miami (48,0%), New York City

(24,7%), Orlando (23,3%), Los Angeles (7,8%), Fort Lauderdale (6,4%), Columbia (4,7%), San Francisco (4,3%), Chicago (3,8%) e Las Vegas (3,6%).

The average of South-Americans that travel to the United States through tour packages is inferior to the Brazilian one (22%), re- cording a level of only 14% in 1998. The main motivation of the tourists were:

Motivation 1998 %* 1997 %* Vacations 63% 65% Business 32% 32% Visit to Friends and Relatives 29% 29% Conventions / Congresses 15% 14%

Source: ITA – International Trade Administration, 1997 e 1998. (*) Multiple answer

As the type of internal transportation used, great part, 49% uses rented cars, 28% aeroplane and 24% private cars (usually leasings). A very small part uses bus, differently from the scenery identified in Europe, confirming the informal character of most trips to the United States. The high level of displacement by air inside the United States can be justified by the greater distances between cities and low cost.

4. The Argentinean travel trade market

4.1 Airlines operating European destinations

The international air passenger transportation sector in Argentina has regular lines to 11 countries in Europe. However, using the codes shared between the airline companies that operate from Ezeize and other airlines, one can get to any country in the world.

In 1999, according to the National Institute of Statistics and Census (INDEC), the outbound trips of Argentineans growth was 0.6% in relation to 1998, reaching 2,445.061 people. This data compared with the that from 1997 reveals an increase of 1.1%. In this case, 63% left from Ezeiza’s airport.

Still, comparing the month of December 1999 (starting from the last season’s summer) with the same month of the previous year, a drop of 6.3% in the exist was observed. This decrease is explained by the effect caused by the preventive attitude of the airline companies and travelers with regard to the probable problems with the year 2000. One example of this was the canceling of third part of the entry and exit flights, and the decrease in the amount of people that left through the International Airport of Ezeiza in the last day of the year 1999 compared with the same day in the previous year.

In what refers to the destinations of Argentineans who traveled abroad, the main place is occupied by the Mercosul member countries and Chile (62%), followed by the United States and Canada (15%), Europe (12%) and the rest of Latin America, including the Caribbean (10%) (INDEC, 2000).

Definitively, to the INDEC in 1999, a number of 292,830 Argentine- ans traveled to countries in Europe, percentage superior than the 12% of the prior year, or the 31% more than in 1997.

Currently, there are 26 airline companies that operate international flights, of which 15 go to Europe. One of them - Aerolíneas Argenti- nas - is national; one belongs to the Mercosul - Mercosul Air Trans- portation, eight are European (Alitalia, KLM, British Airways, Iberia, Lufthansa, SAS, Spanair, and Swissair); three are Brazilian (Varig, VASP, and Transbrasil); and two are American, Canadian (flies only to Europe via Toronto) and Avianca (flies to Europe via Bogota).

The airline that handles the major part of the market that flies to Europe, besides having flights only to Spain and Italy, is Aerolíneas Argentinas. Through the information given by INDEC and also information given by representatives of the company, allocates to them 51.22% of the Argentinean market which travels to Europe.

The majority of the international companies operate only to their country of origin, except for the Americans, who usually operate with flights that have stopovers in their country, then following on to Europe.

It is worth mentioning that in 1999 the airline companies entered a survival phase inside the market which has transformed their structures and brought serious economic and financial inconvenience. The airlines' problems are centered on the great competition that exists at present, and in the decrease in tariffs, which has brought with it a 'logic power concentration' and the necessity to forge alliances between airline companies. In this way, companies who lack a strong economic background which has helped to keep them well-equipped, means that the situation of the sector has obliged them to turn to classical strategies to survive.

4.2 Travel agencies

The activity of Argentinean travel agents is regulated by law 18,859 of the year 1970 and its successive intervening regulatory adjustments. To obtain the 'ability licence', a guarantee fund must be con- stituted, indicating that the company members do not have any unfa- vourable antecedents and their personal suitability. Although, there is a difference between Travel and Tourism Companies (TTC), Travel Agencies (TA) and Ticket Agencies.

According to the law, the Travel and Tourism Companies are author- ized to perform wholesaler tasks, the Travel Agencies can be compared with retailer agencies, in an international context; and the Ticket Agencies, as the name suggests, are limited to sell tickets from airline companies, buses, trains etc. The Tour Operator status is not included in the Argentinean legislation.

The only legal difference between the TTC and the TA is the total amount of the guarantee fund. For this reason, many travel agencies which in practice only operate as retailers or simply as ticket sellers (usually airline tickets) register as TTC or TA. Although, and mainly in the countryside, many companies with ticket agency permits act, in practice, as retailers, selling tour packages elaborated by other agencies.

Due to this distortion of functions, in practice one tends to call 'Tour Operators' the TTC that work purely and exclusively as wholesalers, and 'Travel Agencies' those that serve the public without caring whether they belong to one or other category. Also, there may be the case where one agency operates as wholesaler to a given destination e.g. Brazil, and as retailer to the rest.

The Argentinean Association of Travel Agents (AAAVyT) is the entity that unites the travel agents of the country. It has 730 members, of which 220 refer to themselves as wholesalers, and as 410 retailers. According to the entity's declaration, the number of registered members decreased by about 8% during the period 1998/99 due to the closing of agencies.

Since 1998, travel agencies have found themselves going through a difficult period. Amongst the reasons for this is the reduction in airline tickets, to which is added a reduction in the percentage of the airline’s commissions. The critical point of the situation can be exempli- fied by pointing out that travel agencies were trying to compete amongst themselves by offering lower prices and sacrificing part of their commission, aiming thus to get clients.

Another great competitor of the traditional travel agencies is the Internet - the reason why emphasis is made that in the near future only those who add value to their services will survive. It is frequently mentioned that sitting behind a PC, one can now do almost every- thing from booking airline tickets, looking for lodgings, buying travel insurance, obtaining city and country maps, and even renting a car or ordering theatre tickets. However, Internet is still only popular in the youth segment, in which it is estimated that the “boom” will come in a couple of years.

Argentinean travel agencies’ activities have been regulated by law for around 30 years. The legal regulation and its respective decrees allow the competent bodies the right to control, inter alia, the fulfilment of the contracts with users and the commercial loyalty with which they should promote the activity. In this way, it stabilises the obligations of the agencies in relation to the State e.g. in communicating changes in their society etc. The regulation also establishes the relationship with hotel and transportation companies, the agent's respon- sibility etc.

4.3 Tour operators

The tour operators in Argentina functions alternate between wholesaler to retailer, from producers of organized trips to simple distributors. This report should begin by making clear that in Argentina, the wholesaler segment is not clearly defined. There is no figure about this type of tour operator.

The functions of wholesaler and retailer demand knowledge, financial resources and the means to operate very differently.

It is interesting to analyze the scale of operations according to the products sold in the agencies: tickets and all-inclusive trips. In the first of the extreme cases, if only one agency sells tickets, the relative simplicity of the operation makes it possible for the small agency to have advantages over intermediaries or large structures, even though the latter have better technological means and capacity for market penetration. But, of course, above a certain level of sales, the financial and technological capacity of the big agencies will prove to be an advantage over the smaller structures. In exchange, for all- inclusive trips, which demand two stages - production and distribution - the big structure is more capable of their production, but the distribution may be done by agencies of any size.

In practice, many Argentinean operators work as wholesalers for some destinations and retailers to others.

In general, the international Tour Operators manage the travel market to Europe in Argentina. Besides, many of the national TTOO work with the same international Operator, as the case of Trapsatur, which sells packages to several other operators. This points out that national operators only carry out the role of intermediaries or retailers.

It is a phenomenon of the Argentinean market that many of the

TTOO (tour operators) are nothing more than a branch of some European TTOOs, and what they really do in the local market is to commercialize products that come ready-made from Europe.

According to statistic known regarding the sector, there are a total of 37 tour operators in Argentina, amongst whom a sample of 10 cases was selected, and the correspondent interviews made.

II. RESULTS OF THE SURVEY ON THE ARGENTINEAN TRAVEL TRADE

Preliminary Remarks

In order to obtain the necessary information, expert interviews were carried out with the three involved travel industry sectors: tour operators, travel agencies and airlines.

In both countries - in Brazil as well as in Argentina - tour operators not only "create" tourism packages, but also sell them directly to clients (tourists) in addition to, of course, operating as wholesalers to travel agencies. The same activity occurs in agencies, which not only function as retailers to the tour operators, but also deal themselves with packages, according to the demand.

This is not very different from the situation with the airlines, which not only work as partners of travel agencies and tour operators, but also have their own points of direct sales to tourists, and produce their own packages like tour operators.

This situation was methodologically observed and treated in a manner suitable to the positioning of each outbound market travel trade sector with regard to the characterization of the research universe, and to the delimitation of the sample to be interviewed.

Methodology

The universe

As sample units, groups of companies operating in the “tourism trade” were defined – tour operators and travel agencies – as well as air transport companies. In the present case, for a more objective choice of samples, this study selected those which have a higher predominance and/or experience in European destinations and which are associated with “tour trade” representative entities in each country. Based on these sample conditions, a viable listing ensured those companies which could certainly be recommended to participate in tour destination advertising and promotional programs.

The sample

Considering the objectives of this study, whether in terms of its present results or the tendencies analyzed, the following sample sizes (below) were used because of their statistical representation, diversity, and for the intended use of the information gathered.

In Argentina 44 interviews have been realized, broken down into sectors as follows:

Tour Operators Tour Agencies Airlines Total

10 30 04 44

Interviewing method

The tool for the primary data research were standardized questionnaires with open and closed questions that provided basic and complementary information for the quantitative and qualitative evaluation of the demand.

Interviews were conducted by a team of Brazilian and Argentine field research- ers in the locations identified as having the highest outbound flow and according to the quantity and quality of the data necessary in order to meet the objectives of the study.

Travel agencies interviewed 30 travel agencies were interviewed, selected through a random sample following the criteria listed below:

Are a member of the Argentinean Association of Travel and Tourism Agen- cies (AAAVyT), the most representative entity in this sector, established in 1951

Sell to the public

Have a relatively broad clientele

Sell trips to Europe.

In Argentina there is not much information available about the characteristics of travel agencies. In addition, there is neither official data about the profile of travel agencies that work in Argentina, nor information about aspects related to billing, social capital etc.

The interviews were made during the month of March 2000, in person, including the following travel agencies:

1 American Express 16 Leiza Tur 2 Argenbras 17 Les Amis 3 Asatej Group 18 Lusitania Tours 4 Capalbo Turismo 19 Marbitours 5 Centenera Viajes 20 Media Tours 6 Consult House 21 Pezati 7 Cosulich 22 Scotland Travel 8 CRA Turismo 23 Sumatoria Travel 9 Delfino Turismo 24 Tomas Grainer Travel 10 Eves Turismo 25 Tourist Service International 11 Giorgotours 26 Tower Travel 12 Hilltours 27 Travel Up 13 Icaro Viajes 28 Ventana Tour 14 Lady Travel 29 Veromar 15 Lago Traful 30 Viajes Verger

All travel agencies interviewed are located in Buenos Aires.

It is interesting to notice that, despite the great amount of tickets that the interviewed agencies issue abroad, a few of them may have real recognition in the market they act, without having knowledge of even the volume of Argentineans that travel to Europe or to the USA.

Tour operators interviewed

10 tour operators were interviewed having the following characteristics:

Being member of AAVVYT (Argentinean Association of Travel and Tourism Agents).

Sell packages or tours to Europe to other agencies.

Appear frequently in the advertisements of the major national newspapers (Clarín y La Nación).

The visited operators were the following:

1 Bian Tours 6 Iberojet 2 Davos Tours 7 Petrabax 3 Eurotur 8 Roberto Pereira 4 Eurovips 9 Viajes Juliá 5 Excel 10 Viajes Marsans

Each interview was done in person, following a questionnaire with 23 questions, some open and others closed. The fieldwork was done during the months of March and April 2000.

The exploratory analysis showed that, in Argentina, many companies register themselves as wholesaler’s operators, but in reality end up working as retailers.

Airlines interviewed

4 representatives of the airlines were interviewed, which perform in the man- ager level in the areas related with the market analysis, sales and public relations.

The companies selected to define the sample were chosen using as basic criteria the operation of regular flights to Europe. The interviews were made in person during March and April 2000.

The following airline companies were selected: 1 Aerolíneas Argentinas (AR) 2 Iberia (IB) 3 Swissair (SR) 4 Varig (RG)

The company AR was selected because it is the only national company that travels to Europe; IB was selected as the Airline Company that represents one of the most important Earopean markets - the Spanish. Spain is the most important gateway to Europe for the Argentineans.

Likewise, SR was chosen as the sample of airline companies that were not considered to be leaders in the market. Finally, Varig represented the companies which had fewer sales to Europe - especially as their flights are not non- stop, but go via Brazil. This is the main sales obstacle for this company.

Questionnaire With the goal of knowing better its current characteristics, a questionnaire was prepared for interviews with travel agencies and tour operators, containing 23 open and closed questions, including topics related to the bio-socio-economic aspects of the demand, its motivations, the image of the tourist product 'Europe' and of the 29 ETC member countries, the sales difficulties. For the interviews with airline companies, a questionnaire was elaborated with 16 open and closed questions, contemplating themes related to the bio-socio-economical aspects of the demand, their motivations, the image of the tourist product 'Europe' and of the 29 ETC member countries, the operation difficulties and expansion possibilities, among others. (The questionnaires are enclosed in the appendix.)

The tabulation and data analysis was first made in Argentina and Brazil during the month of April/May, and then sent to Munich following completion of this report.

1. Description of clients who currently book trips to Europe

The interviewed Argentinean tour operators, travel agencies and airline companies describe the Argentineans traveling to Europe as follows:

Age

Main age groups All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Up to 18 years old 1 2% - - 1 3% - - From 19 to 30 years old 8 18% - - 6 20% 2 50% From 31 to 49 years old 32 73% 7 70% 21 70% 4 100% From 50 to 65 years old 16 36% 5 50% 10 33% 1 25% Over 65 years old - - - - 3 10% - -

Source: Expert survey on Argentinean travel trade. March/April 2000 Percentages based on number of answers given * multiple response

The prevalent age range is that between 31 and 49 years old, mentioned by about 70% of the interviewed. This occurs due to the fact that this group has a greater availability of economic resources, and that in this age range are found the businessmen, experts in different academic areas and people that want to visit Europe for work reasons.

This is followed in importance by the age range between 50 and 65 years old. In this case, these are usually couples with roots in Europe and who know the country in which they were born or where their relatives still live. It is composed in the main of “empty nesters”, who do not have so many responsibilities at home. The age range from 19 to 30 years old is composed of youth, mainly college students or recently graduated, who make a trip in the modern “Grand Tour” style, that is, to travel through Europe before to getting definitive jobs in the work market, but instead of belonging to the local elite they usually have limited resources and take the opportunity offered by Europe to make a low cost trip using Youth Hostels and economy passes in railroads.

80% 73% 70% 60% 50% 36% 40% 30% 18% 20% 10% 2% 0% 0% Up to 18 years 19-30 years 31-49 years 50-65 years Over 65 years

Source: Expert survey on Argentinean travel trade. March/April 2000 (Multiple response)

Gender

Gender All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Male 8 18% 1 10% 4 13% 3 75% Female 11 25% 4 40% 6 20% 1 25% Both 25 57% 5 50% 20 67% - -

Source: Expert survey on Argentinean travel trade. March/April 2000

The majority of the travel trade surveyed reported that there is no predominance in terms of their clients’ gender, male or female, who travel to Europe. This is due to the fact that the greatest volume of trips to Europe have leisure as the main motivation, and therefore include a large number of couples. In the remaining cases, females slightly predominated, due to the increase in the number of businesswoman and also of females that simply travel for leisure or to visit their children or relatives. The (male) Argentinean that travels by himself usually does it for business reasons. (Only airlines suppose a predominance of male tourists traveling to Europe for business reasons.)

Both 57% Female 25%

Male 18%

Source: Expert survey on Argentinean travel trade. March/April 2000

Level of education

Level of education All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 High 22 50% 1 10% 18 60% 3 75% Medium 22 50% 9 90% 12 40% 1 25% Low ------

Source: Expert survey on Argentinean travel trade. March/April 2000

Argentineans traveling to Europe basically come from medium and high educational levels (though there are differences in the assessments of their clients' educational level between the individual trade segments surveyed).

Europe is no longer an exclusive destination of a public with a high intellectual development level, but a destination that has become popular in the intermediary levels. It has left the intellectual circles to become an accessible place to other segments.

High 50%

Medium 50%

Low 0%

Source: Expert survey on Argentinean travel trade. March/April 2000

Income groups

Income groups All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Up to US$ 700 ------From US$ 701 to 1,800 6 14% 2 20% 4 13% - - From US$ 1,801 to 3,500 29 66% 7 70% 20 67% 2 50% From US$ 3,501 to 6,000 8 18% 1 10% 5 17% 2 50% Over US$ 6,000 1 2% - - 1 3% - -

Source: Expert survey on Argentinean travel trade. March/April 2000

The predominant income level is that between US$ 1,800 and US$ 3,500 per month (66% of the sample) with a prevalence, among tourists that go to Europe, of average family income of US$ 3,206 per month, or US$ 38,472 per year.

The average monthly income somehow allows us, together with the other indicators, to determine a socio-economic level. The result of this sample seems to indicate that the majority of travelers to Europe correspond to a medium-high socio-economic level. In lesser degree (20%) to a high level, and about 15% correspond to a medium-low level.

Occupation

Predominant occupation All Tour Travel Airlines groups interviewees Operators Agencies n=44 n=10 n=30 n=4 Entrepreneur 13 30% 6 60% 5 17% 2 50% Merchant 11 25% 1 10% 8 27% 2 50% Physician (medical) 2 5% 1 10% 1 3% - - Engineer ------Lawyer 6 14% 1 10% 5 17% - - Public servant ------Business administrator 1 2% 1 10% - - - - Teacher ------Pensioner 2 5% - -2 7% - - Housewife ------Student 3 7% - -3 10% - - Others 6 14% - -6 20% - -

Source: Expert survey on Argentinean travel trade. March/April 2000 Deviations from 100% due to rounding

Entrepreneurs and merchants are the most mentioned occupational groups traveling to Europe. Next mentioned are lawyers and professionals in general ("others"). Due to their occupation, Argentineans traveling to Europe come from medium to higher educational levels.

Region of origin

Predominant region of All Tour Travel Airlines origin (first choice) interviewees Operators Agencies n=44 n=10 n=30 n=4 Buenos Aires 43 98% 10 100% 29 97% 4 100% Bonaerense Conurbation 1 2% - - 1 3% - -

Source: Expert survey on Argentinean travel trade. March/April 2000

The city of Buenos Aires and its metropolitan area (where there are around 5 million inhabitants) is the main area of residence of people who travel to Europe, followed by the cities of Buenos Aires Province, like Mar del Plata and La Plata. These last two cities each have a level of importance inside the Bue- nos Aires Province. La Plata is the provincial capital, located 70 km from Bue- nos Aires. Mar del Plata, 450 km away from the Federal Capital, is the major tourist pole in the Province and one of the cities with greatest economic development, followed by the provincial capital.*

Other emitting centers that appear in the interviews are the capital of Cordoba Province, San Rafael City (Mendoza Province) and Rosario (Santa Fe Prov- ince).

It is important to point out that, in the zones where the greatest number of travelers come from, are also where there are the greatest capital concentration in the country, are poles of commercial and political development and where the majority of the study centers are located. In some way, it is in these areas that those who have the highest consumption capacity and, consequently, possibility to travel, are clearly located. ______* According to the interviewees, their clients live mainly in Buenos Aires City and its metropolitan area. This answer is logical, once this study was limited to Buenos Ai- res City and its area of influence, where over 50% of the travel agencies are concentrated.

2. Market development of trips to Europe

2.1 Market development within the last three years

The market development of trips to Europe in the last three years was assessed by the Argentinean travel trade surveyed as follows:

Total market

With regard to the overall market, trips to Europe have undergone the following development within the last three years:

Overall market develop- All Tour Travel Airlines ment last three years interviewees Operators Agencies n=44 n=10 n=30 n=4 Significant increase (+10%) 16 36% 6 60% 8 27% 2 50% Discrete increase (+5-10%) 14 32% 2 20% 10 33% 2 50% Stagnation 5 11% 1 10%4 13% - - Discrete decrease (-5-10%) 3 7% 1 10% 2 7% - - Significant decrease (-10%) 6 14% - - 6 20% - -

Source: Expert survey on Argentinean travel trade. March/April 2000

According to the overall travel trade surveyed, most of the interviewees consider that tourism to Europe showed a growth during the last three years (1997, 98 and 99), slight or even significant growth of more than 10%. Nevertheless, one out of every five (above all travel agencies) registered even a significant decrease in tourism to Europe.

According to the interviewees, growth in the number of trips to Europe has been caused by the following:

The prices in Europe are more accessible to Argentineans; when the word 'price' is used, it is a general term that includes all the expenses of a trip: lodging, food and meals, transportation and other items e.g. tickets for shows, shopping, souvenirs.

Since the implementation of the conversion plan in Argentina (1991, since when an Argentinean peso is equal to an American dollar), the Argentinean peso became competitive at world level.

Associated to the aforementioned development is the economic stability achieved by Argentina for some years, including a sustainable growth. This growth and stability were reflected in an increase in the consumer capacity of the Argentineans, originating in a greater amount of business trips due to the commercial openings.

The growing experience of travel by the population has led to an improved offer, both in level and diversity. Cheaper and more affordable options are now on offer which try to satisfy the demand of distinct segments. It no longer “Europe 5*”, but alternatives can be seen e.g. more economic or non- traditional lodges, pensions, inns etc.

The decrease in air tariffs in intercontinental trips has been one of the most important stimuli. The prices of the air legs from Argentina to Europe and back have suffered a very important decrease. Added to this a greater number of companies that fly directly from Argentina, offering a flight without stopovers.

Leisure trips

Concerning leisure trips, two out of every three interviewed trade representatives reported slight or significant increases. However, every third declared that sales of trips to Europe was stagnating or even had a significant decrease. The decrease of leisure trips to Europe was also influenced by the combination of armed conflicts in Europe and to the Brazilian crisis, which led people to enjoy the sun on the beaches of closer destinations which made them feel safer than being in contact with ethnic conflicts in far away destinations.

Above all, for some of the interviewed travel agents, 1999 was a difficult year due to the recession that started to show itself, and because as it was an election year doubts started to arise about the economy’s future and the continua- tion of the conversion plan. However, a strong promotion of sun and beach destinations in the Caribbean and USA destinations, especially Miami with Disney- world, acted against trips to Europe. Despite low air tariffs, the more accessible prices and the payment facilities impelled the growth mentioned before.

Market development of leisure trips to Europe within the last three years

Market development All Tour Travel Airlines leisure trips within the interviewees Operators Agencies last three years n=44 n=10 n=30 n=4 Significant increase (+10%) 18 41% 7 70% 9 30% 2 50% Discrete increase (+5-10%) 12 27% - - 10 33% 2 50% Stagnation 6 14% 2 20%4 13% - - Discrete decrease (-5-10%) 1 2% 1 10% - - - - Significant decrease (-10%) 7 16% - - 7 23% - -

Source: Expert survey on Argentinean travel trade. March/April 2000 * Deviations from 100% due to rounding

Business trips

Most of the Argentinean travel trade interviewed reported an increase in relation to business trips. This growth is due to the installment of some European companies in the country, but especially to the business of Argentinean companies with their European partners.

Market development of business trips to Europe within the last three years

Market development All Tour Travel Airlines business trips within the interviewees Operators Agencies last three years n=44 n=10 n=30 n=4 Significant increase (+10%) 13 32% 6 60% 4 15% 3 75% Discrete increase (+5-10%) 15 37% 2 20% 12 44% 1 25% Stagnation 9 22% 2 20%7 26% - - Discrete decrease (-5-10%) 3 7% - - 3 11% - - Significant decrease (-10%) 1 2% - - 1 4% - - Do not sell 3 - 3 -

Source: Expert survey on Argentinean travel trade. March/April 2000 Percentages based on number of answers given

2.2 Changes with regard to target groups within the last three years

The Argentinean travel trade surveyed noticed changes with regard to target groups within the past three years:

With regard to target All Tour Travel Airlines groups there have been interviewees Operators Agencies ….. n=44 n=10 n=30 n=4 Changes 37 88% 7 88%26 87% 4 100% No changes 5 12% 1 12% 4 13% - - No opinion 2 2 - -

Source: Expert survey on Argentinean travel trade. March/April 2000 Percentages based on number of answers given

According to people who expressed that there were modifications in the profile of people who travel to Europe, the fact stands out that more and more people with minor income levels can afford to travel to Europe. Nowadays, those with a monthly installment of US$ 100 per year can travel to Europe, which makes these trips accessible to a great number of people.

It was also mentioned that the age range of tourists that visit Europe is decreasing, that is, youth who are in their last year at college often get a part time job and with the money they save, go to Europe.

Concerning the groups that travel less to Europe, some of the Argentinean travel trade representatives interviewed pointed out that this concerns the highest income groups. This is due to the fact that Europe is turning into a cheaper destination, and those who can pay for it prefer to go to more exclusive destinations in other continents. The people who have already made several trips to Europe prefer to take the possibilities to visit destinations located in Africa, Asia and Oceania, taking advantage of the current exchange equity between the Ar- gentinean peso and the American dollar, the direct flights to South Africa and

New Zealand or no-stopover flights - but with connections - to Malaysia, Austra- lia, the Orient, etc. It is important to emphasize that in Argentina there is an important market to far-flung destinations, and making Europe accessible to broad classes of the population and just a “couple of hours away” has led people to continue looking for destinations considered “exotic” in the past.

2.3 Changes with regard to travel characteristics within the last three years

The Argentinean travel trade surveyed noticed changes with regard to travel characteristics within the last three years:

With regard to travel All Tour Travel Airlines characteristics there have interviewees Operators Agencies been ….. n=44 n=10 n=30 n=4 Changes 25 57% 8 80% 16 54% 1 25% No changes 19 43% 2 20% 14 46% 3 75%

Source: Expert survey on Argentinean travel trade. March/April 2000

The travel trade representatives surveyed confirmed that there were changes in the trips to Europe, mentioning the following as the most important :

More trips related to business, studies & congresses

Period of the trip – tendency for high season to disappear

Preference of themed trips, like the Jubilee 2000

Packages that travel to countries for religious reasons related to Catholicism, including Turkey & Greece

Tendency to follow fashion. For example, currently it is considered that is indispensable to know how to speak English, and that this language can be learned only in England

Preference for individual trips with car rental for greater flexibility

People who go to Europe for leisure purposes are reducing the number of countries visited. They prefer to see less, and in more depth, and to enjoy the experience of walking through a city without help (e.g. a preference for using the subway to visit Madrid rather than paying for an excursion)

Given the low cost of travel to Europe and the high cost of other goods, people invest in what they can, and not what they want

It is important to point out that the airlines are introducing direct flights to the main European capitals, which shows that the continent is beginning to change its image of being a far-flung destination.

The new technologies (conferences on the Internet, etc.) have not had an influence on business displacements. For the Argentinean, personal contact has a great importance with reference to business as well as other professional am- bits (conferences, seminars, etc.). However, due to the high Argentinean cost of living, people prefer to travel aboard to participate in an event rather than to bring a foreigner to Argentina. Even so, Argentina is still an important destination for international events.

2.4 Market development within the next three years

For the forthcoming three years, the interviewed Argentinean travel trade representatives expect a market development for trips to Europe as follows:

Total market

With regard to the overall market, the following development in trips to Europe is expected for the forthcoming three years:

Overall market develop- All Tour Travel Airlines ment next three years interviewees Operators Agencies n=44 n=10 n=30 n=4 Significant increase (+10%) 19 44% 7 70% 11 38% 1 25% Discrete increase (+5-10%) 18 42% 3 30% 12 41% 3 75% Stagnation 4 9% - -4 14% Discrete decrease (-5-10%) 1 2% - - 1 3% Significant decrease (-10%) 1 2% - - 1 3% No opinion 1 - 1 -

Source: Expert survey on Argentinean travel trade. March/April 2000 Percentages based on number of answers given * Deviation from 100% due to rounding

The great majority of those interviewed from all sectors confirmed their hopes for a total increase in the sales of trips to Europe in the near future, if the country's economy stablilises and it starts participating more actively in the globalization process.

44% mentioned the wish that this increase is significant (over 10%) and 42% said that they considered that there will be a slight increase (from +5 to 10%).

This can be summarized as follows:

Growing world economic integration is generating more business opportunities, and it is anticipated that commercial chainlinks with the European continent will continue to follow the current growth rhythm. On the other hand, there is an ever-increasing number of companies of European origin in Ar- gentina. In both cases the companies send their employees to do business or follow courses at the company's headquarters in Europe. The tendency being observed is for companies to give incentives to their employees to combine the business trip with a short vacation in the country where he/she has to go, or in some other country in the surrounding area.

The privatization of Argentinean companies attracted European investors, leading us to estimate that business trips will continue to grow. The interest to participate in different events, courses, etc. will also keep growing.

The promotion of Europe in the printed media (tourism sections of the main newspapers and specialized magazines with a large circulation) and the cable channels (Travel Channel, Discovery Channel, Peoples and Arts, etc.) will keep arousing interest of Argentineans to travel to Europe, not only to see the classical aspects, but also to get to know other countries, culture, gastronomy, history etc. Globalization has allowed the social maturing of people so that, instead of fearing the contact between cultures, they are more interested in interacting. In this way globalization will allow easier access to all the information available (especially through the new technologies)

Even though there are no signs of an economic revival, it is expected that this will be evident in the near future and will stimulate more trips.

Continued decrease in the air tariffs is expected.

Also: Continued decrease in Europe’s prices in general.

Argentinean tourists will look for new destinations, and the European continent is the one that offers the greatest alternatives. Given the fact that the interest in shopping in the USA has decreased (due to the fact that there is no great difference in prices, since this is compensated by the guarantee of products that are bought inside the country; and that duty-free shops in all airports have electronic products), Europe is looked at with preponderance when one takes the decision to travel. To this should be added that there is no big difference between air tariffs to the USA or to Europe.

With reference to the interviewees who said that the number of tourists will keep stable, the following comments stand out :

There are no more State companies to be privatized, and the investors have a greater interest in Brazil, due to the devalued exchange.

Argentina’s recession does not allow a significant increase in the number of trips

The travel agents pointed out that the Argentinean first worries about a hon- eymoon in the Caribbean, then travels with the children to Disneyland, and by the time they have grown up, sends them to study English in London. When they are left alone, he takes his wife and travels to Europe.

Leisure trips

A strong growth is expected, above all for leisure trips. Every second Argentin- ean travel trade representative interviewed expects significant growth in the forthcoming years for leisure trips to Europe, and every third expects at least a slight increase.

Argentinean tourists will look for new destinations, and the European continent is the one that offers the greatest alternatives.

Market development of leisure trips to Europe next three years

Market development All Tour Travel Airlines leisure trips within the interviewees Operators Agencies last three years n=44 n=10 n=30 n=4 Significant increase (+10%) 20 47% 7 70% 12 41% 1 25% Discrete increase (+5-10%) 15 35% 3 30% 9 31% 3 75% Stagnation 6 14% - -6 21% Discrete decrease (-5-10%) 1 2% - - 1 3% Significant decrease (-10%) 1 2% - - 1 3% No opinion 1 - 1 -

Source: Expert survey on Argentinean travel trade. March/April 2000 Percentages based on number of answers given * Deviation from 100% due to rounding

Business trips

It is estimated that business trips will not increase as much as leisure trips. But nevertheless, also for business trips, remarkable growth is expected in the next few years due to the increase in the number of European companies installing in Argentina, as well as the growth in the participation at events outside the country, making an increase of this type of traveler possible.

Market development of business trips to Europe next three years

Market development All Tour Travel Airlines business trips within the interviewees Operators Agencies last three years n=44 n=10 n=30 n=4 Significant increase (+10%) 15 37% 8 80% 6 22% 1 25% Discrete increase (+5-10%) 17 41% 2 20% 12 44% 3 75% Stagnation 7 17% - -7 26% - - Discrete decrease (-5-10%) 1 2% - - 1 4% - - Significant decrease (-10%) 1 2% - - 1 4% - - No opinion 3 - 3 -

Source: Expert survey on Argentinean travel trade. March/April 2000 Percentages based on number of answers given * Deviation from 100% due to rounding

2.5 Changes with regard to target groups within the next three years

With regard to changes in target groups for the forthcoming years, the expectations of the Argentinean travel trade surveyed were :

With regard to target All Tour Travel Airlines groups there will be ….. interviewees Operators Agencies n=44 n=10 n=30 n=4 Changes 41 100% 7 100% 30 100% 4 100% No changes ------No opinion 3 3 - -

Source: Expert survey on Argentinean travel trade. March/April 2000 Percentages based on number of answers given

Most of the interviewed travel trade declared that they hoped to find changes in the profile of the tourists that travel to Europe during the next three years, if the tendency towards credit and cheap tariffs continue. Amongst them, they mentioned the following:

Smaller income level (who can choose a cheaper hotel or stay for a shorter length of time).

The clients will be younger. The tendency to travel first to the USA and to the Caribbean will be replaced by travel to Europe.

Females and seniors who look for more peaceful destinations.

Sun and beach tourism that interests the Argentinean so much will arouse the interest to travel by tourists who are not particularly interested in history and culture. Although if adequate marketing tools are used, Europe can cap- ture another interesting market segment, if the prices are competitive.

Due to their growing experience, Argentinean tourists are beginning to be more critical. The tourist currently has many options, and he is beginning to be more selective in relation to the prices and relative quality of offers. If they consider that if the travel agent is not well informed, greater numbers of tourists will turn to gathering information through the Internet. However, a decrease in ticket sales due to the Internet is not foreseen, since this system will be used more to gather information that the agent does not have.

The region of the capital, Buenos Aries, must remain the greatest consumer of Europe as a destination. This is due to the socio-economic and demo- graphic conditions existent in this area, with high income levels, responsible for a significant amount of Argentina’s GDP.

It is emphasized that, due to the fact that many important cities are in border areas, if people make a trip without going through Buenos Aires, they do it through an international operator (e.g. Santiago de Chile, if the area of residence is Mendoza).

2.6 Changes with regard to travel characteristics within the next three years

With regard to travel characteristics, the following changes in the forthcoming years are expected by the Argentinean travel trade surveyed:

With regard to travel All Tour Travel Airlines characteristics there will interviewees Operators Agencies be….. n=44 n=10 n=30 n=4 Changes 25 61% 7 100% 17 57% 1 25% No changes 16 39% - - 13 43% 3 75% No opinion 3 3 - -

Source: Expert survey on Argentinean travel trade. March/April 2000 Percentages based on number of answers given

Amongst the changes mentioned by those interviewed, it is worth mentioning the following:

People look for “experiences” during their leisure trips, in which they will look for a destination that allows them to interact more, and that is not limited to contemplation. There is a tendency to travel fewer kilometers, but to get to know the sites they visit better. Even though they will visit the same countries, they will not remain for a long time in the cities, but will tend to visit the surrounding areas. They will also look for non-traditional destinations.

The short duration (one week) trips to a specific destination will increase, once the tourists will use their long weekends or holidays.

Organized groups and family trips will tend to disappear.

The interest in nature and ecological tourism will make destinations currently not important better known, such as the Scandinavian countries.

The offer will grow, and the prices will be more accessible. The Internet will make the trip more accessible because one may get cheaper tickets.

Increase of individual trips, especially by youth, with a tendency to lodge in hostels. The wholesalers are already observing this development since they have added economy lodgings in some of the packages.

The trend towards language studies will continue in Europe. Therefore, Lon- don will be the main destination for studying English, although the great range of promotions offered by countries like Canada and Australia may decrease the number of trips to United Kingdom.

As the youth participation in the market grows, the Internet can perform the same tasks as a travel agency.

Europe will be an alternative to people who already know the Caribbean.

The Euro’s stability will decrease the air tariffs, and the trips will usually be more economical.

3. Type of trips to Europe

3.1 Purpose of trips to Europe

If one is to summarize the individual statements made by the surveyed Argen- tinean tour operators, travel agencies and airlines regarding the average relative value percentages for the different types of travel Argentineans make to Europe, the following picture emerges:

Purpose of trips to Europe

Purpose of trips to All Tour Travel Airlines Europe interviewees Operators Agencies n=44 n=10 n=30 n=4 Average Average Average Average relative value relative value relative value relative value Vacations 61% 73% 62% 49% Business 18% 8% 14% 31% Friends and Relatives 8% 4% 5% 17% Business and vacations 5% 6% 8% - Culture 5% 9% 5% - Conventions 2% - 3% 3% Study 1% - 2% - Incentive trip 0% 1% 0% - Religion 0% 1% 0% - Job in Europe 0% - 1% - Health - - - - Others 1% - - 2%

Source: Expert survey on Argentinean travel trade. March/April 2000 * Deviation from 100% due to rounding

The prevalent motivation to make a trip to Europe is leisure (vacation or culture) with a relative share of of 66% of all trips to Europe. In second place, a great distance behind, are business trips (purely or combined with vacation) with a relative share of 23% (the airlines interviewed suppose a greater share for business trips).

Visits to friends and relatives rank third (8%). All other possible reasons for trips to Europe (congresses and conventions, health, religion etc.) do not have high relative values.

Vacations 66% Business 23%

Other 11%

Source: Expert survey on Argentinean travel trade. March/April 2000

3.2 Present types of vacation trips to Europe

The statements made by the surveyed Argentinean travel trade on the percentage breakdown of individual types of vacations made by Argentineans to Europe yield the following allotment:

Today's predominant type of vacations

Type of vacation All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Average Average Average Average relative value relative value relative value relative value Tours through several countries 49% 53% 56% 39% Tour in one specific country 13% 15% 13% 10% Cultural vacations 10% 9% 5% 17% Vacations combined with visits to friends & relatives 8% 10% 7% 6% Tour in one specific city 4% 1% 2% 8% Combination tours & leisure 3% 2% 4% 4% Vacations for a special event 3% 3% 4% 1% Vacations of sun & beach 2% 5% 2% - Ethnic trip / search for roots 1% 1% 3% - Vacations combined with health motivation 1% - 0% 2% Winter sports vacation 0% - 0% 1% Vacations leisure in the countryside or mountains 0% - 0% - Summer sports vacations 0% - 0% - Vacations with a lot of fun, nightlife & social life - - - - Vacations for shopping - - 0% - Other types of sports vacations, such as golf - - - - Other types 5% 2% 1% 12% Source: Expert survey on Argentinean travel trade. March/April 2000 * Deviation from 100% due to rounding

Amongst the most important types of vacation, the tours through several countries stand out. This is the main segment for Argentinean vacation trips to Europe. According to the Argentinean travel trade surveyed, every second vacation trip is a tour through several countries.

Second ranks (but with great distance behind) tours in one specific country (average share 13%). This type of vacation is usually selected by those who already know Europe and who wish to return to a particular country to get to know it better. Besides, the current tendency is to see less cities and countries, but with deeper experiences. Tourists do not want their trip to Europe to be a series of “flashes” like some tour packages promote.

In the opinion of the Argentinean travel trade, culture-oriented vacations account for an average share of 10%, followed by vacations combined with visits to friends & relatives at 8%. All other retrieved types of vacation have a share of less than 5% in the total market.

The occurrence of the "tour" type of trip is explained by the short distance between the countries in Europe, what favors and incites the tourist to visit more than one destination in each trip. It is emphasized, however, that the tendency is no longer to visit 20 countries in 15 days but, on the contrary, to get to know a few places on each trip, in such a way that the tourist may have a richer interac- tion. This implies more trips, and is due to the fact that Europe is no longer as expensive a destination as it was in the past, especially due to the decrease in air tariff prices.

Most Important Type of Vacation at Present

Tour/one country 13% Cultural vacation 10%

Tour/several Vacation+VFR countries 8% 49% Tour in one city 4% Tour+leisure 3% Special event 3% Sun&beach Others Ethnic trip 2% 5% 1%

Source: Expert survey on Argentinean travel trade. March/April 2000

Based on the experience and assessment of the Argentinean travel trade, sightseeing is definitely the main interest of Argentineans taking a vacation in Europe. 68% of the interviewed Argentinean tour operators and travel agents stated culture and history (sightseeing) as the main reason for a vacation in Europe.

Main motives for vacation trips to Europe

Main motives for vacation All Tour Travel trips to Europe interviewees Operators Agencies n=40 n=10 n=30 Culture and history 27 68% 8 80% 19 63% Get to know people & cities 4 10% 1 10% 3 10% Search for roots 4 10% - -% 4 13% To relax 3 8% 3 30% - - Vacation & congresses 2 5% 2 20% - - Friends &/or relatives 2 5% - - 2 7% Shopping 1 2% 1 10%- - Study 1 2% 1 10%- -

Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

3.3 Types of vacation trips to Europe with best market prospects

The question of which type of vacation can be given the best market prospects with respect to vacation trips made to Europe, the Argentinean travel trade surveyed indicated the following types of vacations:

Type of vacation with best market prospects

Type of vacation All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Tours through several countries 24 55% 7 70% 14 47% 3 75% Tour in one specific country 17 39% 5 50% 11 37% 1 25% Vacations for a special event 13 30% 2 20% 11 37% - - Vacations combined with visit to friends & relatives 10 23% 5 50% 4 13% 1 25% Combination of tours & leisure 7 16% 1 10% 6 20% - - Cultural vacations 6 14% - - 4 13% 2 50% Vacations of sun & beach, to relax by the sea 5 11% 2 20% 2 7% 1 25% Ethnic trip / search for roots 5 11% 1 10% 2 7% - - Tour in one specific city 4 9% 1 10% 3 10% - - Winter sports vacation 2 5% 1 10% 1 3% - - Vacations leisure in the countryside or mountains 2 5% - - 2 7% - - Vacations with a lot of fun, nightlife & social life 1 2% - - 1 3% - - Vacations combined with health motivation 1 2% - - - - 1 25% Vacations for shopping ------Summer sports vacations ------Other types of sports vacations, such as golf ------

Others types: 5 11% - - 4 13% 1 25% Congresses & leisure 3 7% - - 3 10% - - Adventure tourism 1 2% - - 1 3%

Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

The “tour through several countries” is the type of vacation with the greatest potential for the future, despite the fact that previous data showed that tourists prefer short tours to a few countries so that they can enjoy each place in more depth. Nevertheless, the number of countries was not specified.

According to data obtained during the research, the tourist is reluctant to take a tour of only the capitals of Europe - which is a classic tour - but prefers to travel with alternative itineraries. This does no mean that he/she travels to Europe to visit only one country.

The “tour to a specific country”, indicated as the second greatest motivational tendency, comes from the fact that people want to get to know each destination visited in more depth, discovering picturesque regions that are not part of the itineraries in general, and are not concentrated only in the main capitals.

The “cultural vacation” appears in third place on the table of types of vacation which have the highest market potential. Definitely, Europe is a destination characterized essentially by its historical, architectural and artistic richness.

Type of Vacations with the Greatest Potential

70% 55% 60% 50% 39% 40% 30% 30% 23% 20% 16% 14% 11% 11% 9% 5% 5% 10% 2% 2% 0% 0% 0% 0% T T S V T C S E T W R E H S S G o o p a o u u th o i e n e h u o ur ur ec ca ur ltu n& n ur nt cr te al op m lf /s /s ia ti s+ ra b ic in er ea rta th p m ev in l on le l e tr o s ti in m in er e gl ev s is ac ip n po on m o g s ra e e +V u h e rt i e tiv po l c co nt F re ci s n n e r o u R ty co t, s ts un nt u nig tr ry nt h ie ry tli s si fe de

Source: Expert survey on Argentinean travel trade. March/April 2000 (Multiple response)

4. Travel characteristics of trips to Europe

4.1 Travel season

In general, trips are concentrated during the period from April to September. However, the market tendency is for the diversification of the season of travel as a function of promotions of high and low seasons and advantageous payment facilities.

Another important factor to consider is the tendency, in leisure trips, to travel to Europe during the Argentinean winter and during summer go to the beach resorts on the Argentinean coast or to the south of the country. However, since the devaluation of the Brazilian currency, Brazil has become one of the most important holiday destinations for the Argentineans.

Travel season

Travel season All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 January to March 11 25% 3 30% 6 20% 2 50% April to June 33 75% 7 70% 24 80% 2 50% July to September 34 77% 7 70% 24 80% 3 75% October to December 5 11% 5 50% - - - - All year long 2 5% 1 10% 1 3% - -

Source: Expert survey of the Argentinean travel trade. March/April 2000 * multiple response

4.2 Length of trips

The average duration of trips to Europe is 20.2 days, with a 7-day minimum and 30-day maximum. This is related to the air tariffs offered, which allow a minimum stay of 7 days and a maximum of 30. In any other cases the ticket price doubles. For business trips, it also looks for a stay of one week in which the businessman tries to carry out many appointments during one trip instead of making several trips. An example mentioned is that, if one business traveler makes two 4-day trips, he tries to compress the two trips into one of 8 days' duration.

There is a general tendency, already pointed out, to prefer promotional tariffs (i.e. between 7 and 30 days), with the length of stay being related to the tariffs on offer. Therefore almost all of the programmed excursions from Argentina are of 20 days' duration.

An average duration of 20 days is enough time to enjoy the destination, visit cities and take a free day to rest; on the other hand, it leads to the traveler being absent from his obligations for too long. According to the operators, travelers are increasingly worried about leaving their work position, even for vacations, as they do not know whether they may find their jobs when they return.

According to the airlines interviewed, the average duration of the trip has decreased as a function of the fact that the tourists prefer to bet to know only one country, or not more than three, in a deeper way. Therefore they can fulfill their objectives perfectly in two weeks. People are no longer paying to travel for over a month to fulfill “the dream of travel to Europe”, since the accessibility that trips present today will allow them many opportunities to go back during their lifetime.

Average length of trips to Europe

Length of trip All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Up to 7 days 1 2% - - - - 1 25% From 8 to 14 days 2 5% - - 2 7% - - From 15 to 21 days 30 68% 7 70% 20 67% 3 75% Over 21 days 11 25% 3 30% 8 27% - - Average 20.2 21.5 20.5 14.3

Source: Expert survey on Argentinean travel trade. March/April 2000 * Deviation from 100% due to rounding

4.3 Travel party

Argentineans predominantly travel to Europe as a "couple". The couples in the age range from 31 to 49 years old are usually in a phase of economic development, and probably established couples.

Differently from the USA (Disneyland), apparently families do not generally travel to Europe - at least in the last three years - and, according to those interviewed, will not be a group which offers growth possibilities in the next few years. The different attractions which are more strongly associated with the continent are not very interesting for families, especially those with children of school age. On the other hand, families with grown children do not travel together either, because the children prefer to travel with their own friends, which is part of their growing up process.

The participation in group trips (formal or informal) is not considered to be very high (not even by tour operators).

Travel party

Composition of travel All Tour Travel Airlines party interviewees Operators Agencies n=44 n=10 n=30 n=4 Couple 32 73% 8 80% 22 73% 2 50% Individual 7 16% 1 10% 4 13% 2 50% Family 3 7% - -3 10% - - Formal group 2 5% - - 1 3% 1 25% Informal group (package) 1 2% 1 10% - - - -

Source: Expert survey on the Argentinean travel trade. March/April 2000 * multiple response

4.4 Types of accommodation

The most frequently used type of lodging is Intermediary Class hotels (3*), indicated by the great majority of interviewees as the first lodging option, price being an important factor in the decision to choose this category. The Economy category ranked second. Deluxe class is less requested.

Types of accommodation Type of accommodation All Tour Travel interviewees Operators Agencies n=40 n=10 n=30 Deluxe Class (5* to 4*) 4 10% - - 4 13% Intermediary Class (3*) 29 73% 10 100% 19 63% Economy Class 7 17% - - 7 23% Special types of Hotels (charm/castles) ------Time Sharing ------Hostel or Family house ------Vacation Club ------Bed & Breakfast ------Relatives’ and friends’ house ------Boat, Ship, Yacht - - - - Tent, Trailer, Camping ------Others ------

Source: Expert survey on Argentinean travel trade. March/April 2000

4.5 Preferred means of transportation within Europe

The means of transportation most used by Argentinean tourists in Europe is the train, followed by plane and rented car.

The following explanations were given: The Argentineans like to move inside Europe by train, which is a safe, picturesque and economic means of transport which allows the visitor to rest, and which is efficient regarding the destination to which it is headed, as well as time and comfort on board.

If the trip is being made by a couple or a small group visiting a destination that obliges them to travel long distances, then it is preferable to rent a car. This type of transportation is the favorite amongst those wishing to travel to countries to visit places that are not on the traditional circuits, and it is a form of tranpsport which helps them to feel that they are really getting to know the country and the people. Besides, this type of transportation allows the most independence; the difficulty is in some cities like Rome, where it is not easy to circulate by car, which in this case must remain in a car park. The problem of traffic congestion and parking in the city is not exclusive to Rome, but also to other European cities.

In the case of organized or formal groups, the best means of transportation is the bus.

Preferred means of transportation

Means of transportation All Tour Travel interviewees Operators Agencies n=40 n=10 n=30 Train 20 51% 6 60% 14 48% Aeroplane 10 26% - - 10 34% Rented car 6 15% 2 20% 4 14% Bus 3 8% 2 20% 1 3% Leasing ------Ferry boat ------Ship ------Bicycle/motorbike ------No opinion 1 - 1

Source: Expert survey on Argentinean travel trade. March/April 2000 Percentages based on number of answers given * Deviation from 100% due to rounding

4.6 Booking method for trips to Europe

With reference to the booking method most used by clients, it was reported that for travel agencies, bookings via telephone / fax or visits to the companies were the most mentioned as the main type and, no doubt, the most used. In relation to the tour operators, the method most frequently used to book a trip is through travel agencies and/or other tour operators, showing the importance of those intermediaries to the commercialization of their products.

As far as the airline companies are concerned, the booking method most used, indicated by all the companies, is travel agencies and tour operators, because these are present in the whole country and can concentrate their requests, making the contact with the client more personal.

Despite the spread the Internet has on a world level, in Argentina it is still not very much used for this type of operation. The traditional methods are those which still prevail as booking methods.

The most used booking methods

Booking method All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Telephone / Fax 15 34% 2 20% 13 43% - - Via (other) agencies / operators 13 30% 5 50% 4 13% 4 100% Visit to agency / operator / airline 17 39% 3 30% 12 40% 2 50% Internet 2 5% - -1 3% 1 25% Others ------

Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

4.7 Time of booking

The Argentinean tour operators and travel agents interviewed indicated that bookings for trips to Europe are usually made within a period of 2 months prior to the trip.

Time of booking prior to trip

Booking time before trip All Tour Travel interviewees Operators Agencies n=40 n=10 n=30 Up to 2 weeks 12 30% 2 20% 10 33% From 3 to 4 weeks 19 48% 5 50% 14 47% 2 months 8 20% 3 30% 5 17% 3 months 1 2% - - 1 3% From 4 to 6 months ------7 months and over ------

Source: Expert survey on Argentinean travel trade. March/April 2000

Every second Argentinean tour operator and travel agent interviewed declared that bookings are normally made within a time frame of 3 to 4 weeks prior to travel. Every third respondent mentioned shorter periods for booking - two weeks prior to the trip. Often these are business trips that can not be booked too far in advance of the trip, which is why the booking for this type is so close to the departure date.

The trips that are booked longer in advance - 2 months prior to the departure date - are usually programmed trips, planned vacations and tourists who wish to be certain of the availability of the services desired on the date they wish to travel. (The agencies interviewed even declared that they do not make reservations over 4 months in advance.)

5. Price aspects of trips to Europe

5.1 Price ranges which have good market prospects

In relation to the adequate price levels for tour packages to Europe – including air fares – to travel agents and tour operators which would have the greatest sales possibility, the range most mentioned was between US$ 1,101 and US$ 2,000 per person. According to the persons interviewed, the price of the tour package depends not only on the services offered, but also on the destinations visited, the period of stay and other terms e.g. including some meals or not.

In general, packages to Europe should not exceed US$ 2,000.

Price levels for packages to Europe Price level All Tour Travel interviewees Operators Agencies n=40 n=10 n=30 Under US$ 500 per person ------US$ 501 to 800 per person 1 3% - - 1 3% US$ 801 to 1,100 per person 4 10% 3 30% 1 3% US$ 1,101 to 1,500 per person 5 13% 3 30% 2 7% US$ 1,501 to 2,000 per person 20 50% 3 30% 17 57% US$ 2,001 to 2,500 per person 9 23% 1 10% 8 27% US$ 2,501 to 3,000 per person 7 18% 1 10% 6 20% US$ 3,001 to 4,000 per person 2 5% 1 10% 1 3% US$ 4,001 or more per person 1 3% - - 1 3% Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

The type of tickets that will be most issued to passengers going to Europe in the next years will be the reduced or promotional tariffs with 75% of the total, followed by the Economy Class (16%), Business Class (6%) and First Class (3%). This is justified by the tendency towards reductions on the tourist or Economy Class tariffs, due to the increase in the market’s competition.

Flight tickets predominantly booked in future Type of flight ticket booked Airlines n=4

First class 3% Executive class 6% Economic class 16% Reduced or promotional prices 75%

Source: Expert survey on Argentinean travel trade. March/April 2000

5.2 Current Price levels for packages and flights to Europe

Regarding the actual prices (including air tickets) charged by the Argentinean tour operators and travel agencies for packages to Europe, the following average package prices were mentioned : - by the Argentinean tour operators surveyed US$ 1,750 for 21 nights - by the Argentinean travel agents surveyed US$ 1,943 for 17 nights

Current prices for packages to Europe (including flight tickets)

Tour operators Travel agencies Lowest price mentioned US$ 1,200 15 nights US$ 800 10 nights Highest price mentioned US$ 2,500 30 nights US$ 3,500 30 nights Average price mentioned US$ 1,750 21 nights US$ 1,943 17 nights

Source: Expert survey on Argentinean travel trade. March/April 2000

According to the interviewed airlines, they charge the following prices for the different types of air tickets:

Current prices of flight tickets to Europe

First class Executive Economy Reduced class class tickets

Lowest price mentioned US$ 3,100 US$ 1,440 US$ 1,050 US$ 850 Highest price mentioned US$ 6,200 US$ 4,000 US$ 2,600 US$ 1,100 Average price mentioned US$ 4,625 US$ 3,010 US$ 1,787 US$ 937

Source: Expert survey on Argentinean travel trade. March/April 2000

The payment facilitation practice (in interest-free installments) is also common in Argentina, and also extends to include trips abroad. However, it is not common that this item is specified in the advertisements (in 99% of these there were no references to the possibility of paying in installments).

6. Satisfaction with trips to Europe

6.1 General level of satisfaction with trips to Europe

Two out of every three tour operators and travel agents interviewed stated that their clients are "satisfied" with their trips to Europe. Only every third said that tourists are "very satisfied".

The indication of a slightly lower level of satisfaction is explained by the fact that often the tourist is not satisfied with some particular aspect of the trip. Some- times a service is sold with specific characteristics which are often lacking at the destination. This is often the case with hotels, or when airline companies have a delay. These little things are damaging to the level of tourist satisfaction.

Level of satisfaction of tourists with their trips

Level of satisfaction All Tour Travel interviewees Operators Agencies n=40 n=10 n=30 Very satisfied 13 32% 4 40% 9 30% Satisfied 27 68% 6 60% 21 70% Little satisfied ------Unsatisfied ------Source: Expert survey on Argentinean travel trade. March/April 2000

6.2 Aspects that travelers found of the most / least satisfaction during their trips to Europe

According to the Argentinean travel trade surveyed, Argentinean tourists most liked the following aspects of their trips to Europe:

Likes All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Culture, customs, history 38 86% 8 80% 29 97% 1 25% Monuments & museums 16 36% 4 40% 11 37% 1 25% Receptive services in general 9 20% 3 30% 6 20% - - Organization, Cleanliness, Good facilities, Security, 8 18% 3 30% 3 10% 2 50% Architecture of cities 5 11% 2 20% 3 10% - - Landscape & environment 4 9% - - 2 7% 2 50% Efficiency of urban transportation 3 7% - - 3 10% - - European lifestyle 2 5% 2 20% - - - - Distance between cities 1 2% - - - - 1 25%

Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

What Argentinean tourists like the most when traveling to Europe are the aspects related to culture and history, which are considered by the interviewees to be the strong product of Europe. Special emphasis is given to visits to monuments and museums (sightseeing).

After this, the next strongest point mentioned is the receptive infrastructure related to the organization and cleanliness of the cities, safety and efficient services.

Other characteristics that were pointed out as being satisfactory are:

The landscape

The cities’ architecture, their architectural style, the monuments

The organization of the cities, efficient urban transportation, cleanliness

The European lifestyle

The proximity of the destinations, which does not require the tourist to travel great distances to get to know the main sites of interest.

Aspects which Argentinean tourists found less satisfying during their trips to Europe refer to:

Dislikes All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 High prices 9 20% - - 7 23% 2 50% Difficulties with the language 8 18% - - 8 27% - - Tours with many cities in a few days 4 9% 1 10% 3 10% - - Xenophobia 3 7% - -2 7% 1 25% Wars 1 2% - -- - 1 25% Services 1 2% - -1 3% - - Local inhabitants do not collaborate with tourists 1 2% - - 1 3% - - Flight delays 1 2% - - 1 3% - - Hotels far from downtown 1 2% 1 10% - - - - Very structured trips which do not allow contact with local people 1 2% 1 10% - - - - Gastronomy service of some tours with half board 1 2% 1 10% - - - - Guides who are not familiar - - with historical details 1 2% 1 10% Guides who do not give correct information (e.g. about shopping or gastronomy) 1 1 1 10% No opinion 3 7% 3 30% - - - -

Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

In what concerns the least satisfactory aspects to the tourists that visit Europe, two aspects are outstanding:

the high price of services

the language difficulties.

Concerning the aspects that Argentinean tourists like the least on their trips to Europe, outstanding is the high price of services (hotels, museums, meals) reported by the great majority of those interviewed, emphasizing that tourists complain about the relationship between price and quality of lodgings, amongst other services. In general, the clients know the Caribbean, where lodging quality is very high and the prices are more accessible. The second (and more frequently referred to) characteristic is the relationship between quality and price of the tourist services i.e. the Argentinean visitor to Europe is not satisfied with the prices charged on the services / products offered.

Besides these, the following negative aspects are also mentioned:

The lack of collaboration between the residents and the tourists, who describe them as little hospitable, especially the French

Air transportation: flight delays are one of the things that bother Argentine- ans

Packages with too many activities: doing too many things during the tours

Fulfilment of the conditions and services offered in the package: it bothers them to change hotels, and if the agency does not fulfill what was sold

The discrimination of some Europeans (e.g. it bothers them that the Spanish refer to them as “sudacas”).

6.3 Level of requirements of Argentinean tourists traveling to Europe

The Argentinean travel trade were asked about the level of requirements (de- mans) of Argentinean tourists traveling to Europe in relation to the following services: transport companies, lodging, food and entertainment. According to the opinion of the travel trade surveyed, the requirements of Argentinean tourists can be described as medium on a three-point-scale. It is about optimizing the cost-benefit relationship, and travelling, resting and eating well, without paying an excessive price for these benefits.

Level of requirements of Argentinean tourists traveling to Europe

Services All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 MV MV MV MV Transport 2.6 2.4 2.7 2.5 Lodging 2.2 2.0 2.3 2.3 Food 2.2 2.1 2.2 2.0 Entertainment 1.9 2.0 1.8 2.0

Source: Expert survey on Argentinean travel trade. March/April 2000 MV=mean value: 3=High, 2=Medium, 3=Low

The travel trade's assessment of Argentinean tourists is based on following jus- tifications:

Transport companies: The service with the highest demand level is transportation. The high level is associated with: security, fulfilling the proposed timetable, good on-board services. This is why people decide to travel with recognized companies, preferably European ones. For those who demand a more medium service level, the ticket price is the first consideration, and the great variety of tariffs existent nowadays allow them to travel comfortably for a lower price.

Lodging: Concerning lodging, they demand good quality at an accessible price, especially as they compare the European lodgings industry with the Caribbean, which presents superior quality and lower price. The lodging should be downtown, close to the attractions, clean and comfortable.

Food: With reference to meals, their level of demand is medium since the main purpose of their trip is not gastronomy. They therefore select fast and cheap meals, but do try typical foods. According to the analysis regarding the meal theme, Argentinian tourists select good breakfasts and half-board packages.

Entertainment: Their requirements regarding entertainment is medium, since the trip itself is essentially entertainment. On the other hand, there is not much time to spend it. People are more interested in traveling through cities and museums.

7. Image and attractiveness of European countries

7.1 Image of European countries

With regard to the overall image they have with the Argentinean travel trade, the European countries can be classified as follows:

Overall image of European countries (all interviewees)

Country Overall image: Cannot say Positive Negative France 44 100% - - - - Italy 44 100% - - - - United Kingdom 44 100% - - - - Spain 43 98% - -1 2% Germany 40 91% 1 2% 3 7% Greece 39 89% 2 5% 3 7% The Netherlands 38 86% - - 6 14% Switzerland 37 84% 1 2%6 14% Belgium 37 84% 2 5%5 11% Austria 35 80% 5 11%4 9% Portugal 32 73% 1 2%11 25% Monaco 31 70% 1 2%12 27% Sweden 31 70% 1 2%12 27% Denmark 30 68% 1 2%13 30% Czech Republic 30 68% 4 9% 10 23% Turkey 30 68% 6 14% 8 18% Norway 28 64% - -16 36% Ireland 25 57% 1 2%18 41% Hungary 23 52% 3 7%18 41%

100

Finland 20 45% 2 5%22 50% Luxembourg 19 43% 1 2%24 55% Poland 11 25% 9 20% 24 55% Malta 7 16% 2 5%35 80% Bulgaria 7 16% 7 16% 30 68% Croatia 4 9% 8 18% 32 73% Iceland 3 7% 4 9%37 84% Cyprus 1 2% 3 7%40 91% Slovenia 1 2% 4 9%39 89% Estonia - - 3 7%41 93%

Source: Expert survey on Argentinean travel trade. March/April 2000 * Deviation from 100% due to rounding For assessments segmented by tour operators, travel agencies, airlines see Appendix

France, Italy and the United Kingdom are the most outstanding countries which are not only known by 100%, but also have a 100% positive image. This is followed by Spain with also an almost 100% positive image (98%).

Predominantly positive images also exist for Germany, Greece, The Nether- lands, Switzerland, Belgium and Austria (despite some negative estimates given for Austria).

In general, European countries do have positive images with the Argentinean trade. The negative evaluation of the overall image of the countries did not in any case exceed 20%. The countries who have stronger negative image components are: Poland, Croatia and Bulgaria - and to a certain degree also Turkey and Austria.

As regards image, a number of countries are less concerned with overcoming a negative image with the Argentinean travel trade as with handling the fact that the Argentineans have little idea of what to expect in many countries. These countries include: Estonia, Cyprus, Slovenia, Iceland, Malta, Croatia, Bulgaria, but also Poland, Luxembourg and Finland.

101

Indications given with regard to different countries' images:

Mediterranean countries: The Argentinean tour operators mention that Argen- tineans particularly like the Mediterranean; there is a certain cultural affinity which does not exist with the Nordic and Central European countries. The Medi- terranean is warm, speaks the same language and eats like at home. Some of those countries have special implications for Argentina, and it should be re- membered that it was populated early on and received strong immigration flows, especially from Italy and Spain. The migratory flows from and to these countries by Argentineans continued throughout the last century, and this has generated a great number of trips to relatives living in these countries. The bonds with these countries have not been lost, and Spain as well as Italy are an important part of Argentina's society. They therefore represent not just 'one more destination to visit', but rather going back to the roots or a reunion with the family that stayed in Europe.

Greece: In particular the islands, presents a positive image that seems to leave no doubt that it is a 'classic'. According to those interviewed, it is one of the European tourist destinations that pleases most of the travelers, whether visiting or not.

France: “Everybody likes Paris” and “France is Paris” - this affirmation seems a little extreme, but represents what was obtained from the interviews.

United Kingdom: Even though, in some sectors of society, a certain animosity to this country can be observed as a by-product of the historical antecedents that linked both countries, it seems that tourism has not been affected or - if it has - it has changed. Nowadays tour operators have a good image of this destination.

Croatia: Specially, has a negative image that arose from the conflicts during the last decade.

102

7.2 Tourist attractiveness of European destinations

The tourist attractiveness of the different European destination was assessed by the Argentinean travel trade surveyed as follows:

Tourist attractiveness of European countries

Country All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Attrac- Know- Attrac- Know- Attrac- Know- Attrac- Know- tive- ledge tive- ledge tive- ledge tive- ledge ness ness ness ness France 3.0 100% 3.0 100% 3.0 100% 3.0 100% Italy 3.0 100% 3.0 100% 2.9 100% 3.0 100% Spain 3.0 98% 3.0 100%3.0 97% 3.0 100% United Kingdom 2.9 100% 2.7 100% 2.9 100% 3.0 100% Greece 2.8 93% 3.0 100% 2.7 93% 3.0 75% Germany 2.7 91% 2.4 90%2.7 90% 3.0 100% The Netherlands 2.6 86% 2.7 90% 2.6 90% 3.0 50% Turkey 2.6 82% 2.7 90% 2.6 83% 2.0 50% Austria 2.5 91% 2.5 100% 2.4 90% 2.7 75% Switzerland 2.4 86% 2.4 90% 2.4 87% 2.7 75% Czech Republic 2.4 77% 2.5 80% 2.4 80% 2.0 50% Belgium 2.3 89% 2.5 100% 2.2 87% 2.7 75% Monaco 2.3 75% 2.7 70% 2.2 80% 2.0 50% Sweden 2.3 73% 2.4 70% 2.3 73% 2.3 75% Norway 2.2 68% 2.2 60% 2.3 73% 1.5 50% Hungary 2.1 61% 2.4 70% 2.1 60% 1.5 50% Portugal 2.0 77% 2.3 90% 1.8 77% 2.5 50% Denmark 2.0 64% 2.5 60% 1.8 67% 2.5 50%

103

Ireland 2.0 59% 2.0 50% 2.1 67% 1.0 25% Luxembourg 2.0 48% 2.0 50% 1.9 50% 2.0 25% Malta 1.9 30% 2.6 50% 1.6 23% 1.0 25% Finland 1.8 48% 2.3 40% 1.8 53% 1.0 25% Poland 1.7 48% 1.6 50% 1.8 50% 1.0 25% Bulgaria 1.5 32% 2.0 40% 1.3 30% 1.0 25% Croatia 1.5 25% 1.3 30% 1.7 23% 1.0 25% Slovenia 1.5 14% 1.0 10% 1.8 13% 1.0 25% Iceland 1.3 20% 1.0 20% 1.5 20% 1.0 25% Cyprus 1.3 9% 2.0 10%1.0 7% 1.0 25% Estonia 1.0 7% 1.0 10%1.0 3% 1.0 25%

Source: Expert survey of the Argentinean travel trade. March/April 2000 * For the calculation of the attractiveness (mean value), it was determined that a high level of attractiveness was equivalent to 3 points, medium attractiveness to 2 points, low to 1 point. Knowledge: % of interviewees who were able to assess the country's attractiveness

Among the countries classified as having the highest level of attractiveness, France, Italy, Spain and the United Kingdom stand out. These are the same countries which were identified as owners of the highest positive image.

Next to these countries come Greece, Germany, The Netherlands and Turkey which are to be considered as countries with a medium-high level of attractiveness.

Among the countries classified as destinations of medium level of attractiveness are found Austria, Switzerland, Czech Republic, Belgium, Monaco, Sweden, Norway, Hungary, Portugal, Denmark, Ireland and Luxembourg.

The lowest level of attractiveness was attributed to Estonia, Cyprus, Iceland, Slovenia, Croatia, Bulgaria, Poland, Finland and Malta – with the majority of interviewees having no knowledge about these countries.

104

The destinations evaluated as having high attractiveness have a variety of attractions such as monuments, museums, natural resources, climate, etc.; have their image well-advertised through their Tourism Representation Offices and / or by articles published in travel-specialist magazines; and because they con- vey a feeling of safety to the visitor.

105

7.3 Main tour attractions in Europe

The following were defined as the main tour attractions of Europe by the Argen- tinean travel trade surveyed:

Main tour attractions in Europe

Main tour attractions All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Paris 22 50% 8 80% 13 43% 1 25% Madrid 14 32% 4 40% 9 30% 1 25% London 14 32% 3 30% 9 30% 2 50% Italy and its attractions 12 27% 4 40% 7 23% 1 25% Rome 11 25% 4 40% 5 17% 2 50% Spain and its attractions 10 23% 3 30% 6 20% 1 25% Florence 8 18% 1 10% 6 20% 1 25% Prague 8 18% 3 30% 4 13% 1 25% France and its attractions 6 14% 2 20% 4 13% - - Barcelona 5 11% 2 20%3 10% - - The main capitals 5 11% - - 5 17% - - Bruges 4 9% 2 20%2 7% - - Venice 4 9% - - 3 10% 1 25% Greece / Greek islands 4 9% 2 20% 2 7% - - Coast of Mediterranean 4 9% - - 4 13% - - Vienna 3 7% 3 30%- - - - Amsterdam 3 7% - -3 10% - - United Kingdom 3 7% - - 3 10% - - Germany and its attractions 2 5% 1 10% 1 3% - - Budapest 2 5% 1 10%- - 1 25% Costa del Sol 2 5% - - 2 7% - - Eastern countries 2 5% - - 2 7% - - Czech Republic 1 2% 1 5% - - - - Athens 1 2% 1 10%- - - - Scandinavian countries 1 2% - - 1 3% - -

106

Zurich 1 2% - -- - 1 25% Western Europe 1 2% - - - - 1 25% Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

The most important tourist highlights of Europe are the cities themselves; it is worth mentioning that those interviewed did not limit themselves to the Louvre in Paris, El Prado in Madrid, but mentioned the city as a whole, together with its attractions. Again, the best-seller cities and countries appear as those which have the best image or greatest potential.

Paris is in first place, even though nothing is specified besides its major tourist attraction, Disney, as it is shown in the Embassies' brochures; the Eiffel Tower, as some pictures in the advertisements show; and the Louvre Museum.

In second place are London and Madrid. Again, nobody specified the aspect that makes it attractive or stands out the most.

Then there are Spain and Italy, with their respective attractions, although with regard to Italy, many Italian cities were named. For Argentineans, Italy and its cities is one of the tourist highlights of Europe.

Greece, like the Scandinavian countries, was mentioned as a whole rather than any outstanding attractions.

107

7.4 European destinations with the best market prospects

The best market prospects were noted by the Argentinean travel trade surveyed for the following European destinations:

Countries with the highest market potential

Countries All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Spain 33 75% 9 90%20 67% 4 100% France 27 61% 9 90% 16 53% 2 50% Italy 26 59% 9 90%13 43% 4 100% United Kingdom 19 43% 4 40% 13 43% 2 50% Czech Republic 18 41% 3 30% 15 50% - - Greece 14 32% 4 40% 9 30% 1 25% Germany 13 30% 3 30% 8 27% 2 50% Austria 8 18% 3 30% 4 13% 1 25% Turkey 5 11% 2 20%3 10% - - Belgium 5 11% 1 10%4 13% - - Norway 5 11% 1 10%4 13% - - Hungary 5 11% - -5 17% - - Denmark 5 11% - -5 17% - - Switzerland 4 9% 1 10%2 7% 1 25% Portugal 4 9% 1 10%2 7% 1 25% Finland 4 9% 2 20%1 3% 1 25% The Netherlands 4 9% 1 10% 3 10% - - Sweden 4 9% 1 10%3 10% - - Poland 3 7% - -3 10% - - Ireland 3 7% - -3 10% - - Bulgaria 1 2% - -1 3% - - Iceland 1 2% - -1 3% - - Croatia 1 2% 1 10%- - - - Malta 1 2% 1 10%- - - -

108

Monaco 1 2% 1 10%- - - - Cyprus ------Estonia ------Luxembourg ------Slovenia ------Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

The countries that stand out as having the greatest potential for the future are: Spain, France and Italy - the same three which were top of most of the lists (image, attractions, importance). These are also the countries that have their own tourist offices in Argentina, and which the operators knew best.

Concerning the countries with greatest potential that follow these three, the United Kingdom, Czech Republic, Greece and Germany are the countries which are currently of a certain importance. Only the Czech Republic shows a potential clearly higher then the current market position.

It is interesting to notice that the trade vision is for greater focus on some itineraries located in already consecrated destinations, like Spain and France, pre- senting, however, an apparent interest in developing products in new destinations such as the Czech Republic and Finland.

109

Country with the Highest Market Potential

100%

90% 75% 80%

70% 61% 59% 60%

50% 43% 41% 40% 32% 30% 30% 18% 20% 11% 11% 11% 11% 11% 9% 9% 9% 9% 9% 7% 7% 10% 2% 2% 2% 2% 2% 0% 0% 0% 0% 0%

S F It U C G G A T B N H D S P F T S P Ir B Ic C M M C E L S p ra al n z re e u ur e o u e w o in he w o e u e ro a o y s ux lo ai n y ite ec e rm st k lg rw ng nm itz rtu la ed la la lg la a lta na pr to e v n ce d h ce a ria ey iu a a a e g nd Ne e nd nd ar nd tia c us ni m en K R n m y ry rk rla al th n ia o a bo ia in ep y n e u gd u d rla rg o bl n m ic ds

Source: Expert survey on Argentinean travel trade. March/April 2000 (Multiple response)

110

7.5 Most sold destinations in Europe

According to the Argentinean travel trade surveyed, the most important Euro- pean countries (described by the relative share they have on a company's business to Europe) are :

Most sold destinations in Europe

Countries All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Average Average Average Average relative value relative value relative value relative value Spain 63% 79% 55% 56% Italy 40% 46% 45% 30% France 34% 56% 40% 5% United Kingdom 22% 22% 28% 15% Greece 13% 27% 12% - Germany 13% 10% 17% 11% Switzerland 11% 12% 6% 14% Austria 10% 24% 6% - Turkey 8% 14% 4% 5% Czech Republic 8% 14% 9% - Belgium 5% 11% 4% - Portugal 5% 7% 3% 5% The Netherlands 4% 6% 5% - Finland 3% 2% 4% 3% Denmark 3% 2% 4% 1% Sweden 2% 3% 2% 3% Norway 2% 2% 4% - Hungary 2% 3% 2% - Croatia 1% - 2% - Poland 1% 1% 1% - Iceland 0% - 1% - Ireland 0% - 1% -

111

Luxembourg 0% 1% - - Monaco 0% 1% - - Bulgaria - - - - Cyprus - - - - Estonia - - - - Malta - - - - Slovenia - - - - Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

The current “best seller” European country in Argentina is Spain, comprising about 63% of the total number of trips commercialized. Noticeable, however, is a certain hegemony of the destination Spain, due to the language identity, to its deep historical connections, and for the country's excellent tourism communication channels, since it is the gateway to Europe in relation to Argentina, and for the lower air tariffs.

Spain is followed in importance by Italy (40%), France (34%) and the United Kingdom (22%), and then by Greece (13%), Germany (13%), Switzerland (11%), Austria (10%), Turkey and the Czech Republic (8% each).

All other European countries do not have a relative share which exceeds 5%.

There are some countries that are of little importance to the operators, coinci- dentally these are the countries which have an image which is more negative or unknown, and of which it is very little known about their attractions: Bulgaria, Cyprus, Estonia, Malta and Slovenia.

112

Best-Seller Countries

80%

70% 63%

60%

50% 40% 40% 32% 30% 22% 20% 13% 13% 11% 10% 8% 8% 10% 5% 5% 4% 3% 3% 2% 2% 2% 1% 1% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

S It F U G G S A T C B P T F D S N H C P Ic Ir L M B C E M S p al ra n re e w u ur z e o he in e w o u ro o e e ux o u y s a lo ai y n ite e rm itz st k ec lg rtu la nm ed rw ng a la la la e na lg pr to lta v n ce d ce a e ria ey h iu g Ne nd a e a a tia nd nd nd m c ar us ni en K n rla R m al th rk n y ry bo o ia a ia in y n ep e u gd d u rla rg o bl n m ic ds

Source: Expert survey on Argentinean travel trade. March/April 2000 (Multiple response)

Paris and Madrid are Europe's “best-seller” cities on the Argentinean market - being mentioned by 86% (Paris) and 82% (Madrid) of those interviewed, followed by Rome (61%) and London (59%). It is necessary to emphasize that the “best-seller” cities can be divided into two groups: the ones that are federal capitals like Madrid and Paris, or those already consecrated for their attractions, like Barcelona and Florence. These are basically concentrated in Spain, France and Italy.

113

Most sold European cities

Cities All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Paris 38 86% 8 80% 29 97% 1 25% Madrid 36 82% 7 70%25 83% 4 100% Rome 27 61% 5 50% 21 70% 1 25% London 26 59% 5 50% 19 63% 2 50% Amsterdam 7 16% 1 10%6 20% - - Barcelona 7 16% 1 10% 5 17% 1 25% Florence 5 11% 1 10%4 13% - - Venice 4 9% 1 10%3 10% - - Frankfurt 3 7% - -2 7% 1 25% Milan 3 7% - -3 10% - - Prague 3 7% - -3 10% - - Berlin 1 2% - -1 3% - - Brussels 1 2% - -1 3% - - Zagreb 1 2% - -1 3% - - Zurich 1 2% - -1 3% - - Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

Most sold cities

100% 86% 90% 82% 80% 70% 61% 59% 60% 50% 40% 30% 16% 16% 20% 11% 9% 7% 7% 7% 10% 2% 2% 2% 2% 0% P M R L A B F V F M P B B Z Z a a o o m a lo e ra i ra e ru a u ris d m nd s rc re ni n la g rli s gr ric rid e o te e n ce kf n u n se e h n rd lon ce ur e ls b am a t

Source: Expert survey on Argentinean travel trade. March/April 2000 (Multiple response)

114

Trips are offered to almost all of the ETC member countries by the Argentinean tour operators and travel agencies surveyed, except Bulgaria, Cyprus, Estonia, Iceland and Slovenia.

The most frequently offered countries are Spain in first place, followed by Italy, France and the United Kingdom. These countries are the classical destinations offered by at least three out of every four interviewed tour operators or travel agents. The impression is that this tendency will keep functioning, since the companies do not show interest in imposing new products on the market.

115

Countries with offered itineraries

Countries All Tour Travel interviewees Operators Agencies n=40 n=10 n=30 Spain 35 88% 10 100%25 83% Italy 32 80% 9 90% 23 77% France 30 75% 9 90% 21 70% United Kingdom 30 75% 7 70% 23 77% Czech Republic 25 63% 8 80% 17 57% Greece 21 53% 7 70% 14 47% Austria 20 50% 8 80% 12 40% Germany 20 50% 4 40% 16 53% Turkey 16 40% 6 60% 10 33% Switzerland 16 40% 6 60% 10 33% The Netherlands 11 28% 4 40% 7 23% Belgium 11 28% 2 20% 9 30% Hungary 11 28% 4 40% 7 23% Sweden 9 23% 3 30% 6 20% Finland 7 18% 3 30% 4 13% Portugal 7 18% 4 40% 3 10% Norway 7 18% 2 20% 5 17% Denmark 6 15% 1 10% 5 17% Poland 3 8% 1 10%2 7% Luxembourg 3 8% 2 20%1 3% Monaco 2 5% 1 10%1 3% Croatia 2 5% - -2 7% Ireland 1 2% - -1 3% Malta 1 2% - -1 3% Bulgaria ------Cyprus ------Estonia ------Iceland ------Slovenia ------Source: Expert survey on Argentinean travel trade. March/April 2000 / multiple response

116

All the airline companies interviewed offer direct flights to Spain and Italy that coincide with the major sales destinations, considering clearly that Spain is one of the most important gateways to Europe for Argentineans.

Out of the 4 interviewed airline companies, two also offer flights to the United Kingdom, Germany and Switzerland (considering that one of the sample's airline companies is Swissair).

Countries to where direct flights are offered

Countries Airlines n=4 Spain 4 100% Italy 4 100% Germany 2 50% United Kingdom 2 50% Switzerland 2 50% Denmark 1 25% Finland 1 25% France 1 25% Portugal 1 25% Sweden 1 25% Turkey 1 25% Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

117

8. Difficulties encountered in selling Europe

The main problems in selling vacation trips to Europe, as determined by the Ar- gentinean travel trade surveyed, are as follows:

Main difficulties/problems/barriers to selling holiday trips to Europe

Difficulties All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Price level 18 41% 2 20% 15 50% 1 25% Lack of Information 14 32% 4 40% 9 30% 1 25% Lack of Promotion in general 6 14% 2 10% 3 10% 1 25% Lack of promotional material 5 11% 1 10% 4 13% - - Relationship with local operators 4 9% 2 20% 2 7% - - Entry formalities ------Others 4 - Not going to all destinations 2 5% - - - - 2 50% Lack of familiarity with the continent 1 2% 1 3% Lack of hability of the salesman 1 2% 1 3% High season in Europe is contrary to high season in Argentina 1 2% 1 3% Tours with many cities and few days 1 2% 1 3% Local problems (fear to loose the job) 1 2% 1 3% People want destinations without having to look for information (sun & beach like the Caribbean) 1 2% 1 3% European operators delay in sending budget and confirmations 1 2% 1 3% Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

118

Despite the fact that trips to Europe have become more accessible to medium- medium income class, and that air tariffs have been markedly reduced, the main sales obstacle for this destination is the price levels.

A second main problem is the lack of information. According to the interviewees, the official organisations do not develop too much activity that tends to inform about the countries; there is no data. There are many European countries that one knows nothing about, and others that only the classical tourist points are known.

There are very few places where one can get correct information about events which may be of interest for travelers e.g. example fairs.

Maybe one of the major inconveniences faced by operators is the lack of stability in Argentina’s economy which makes it difficult for them to take medium term measures, and that most of them end up solving without evaluating other alternatives efficiently.

119

The following sectors were mentioned when asking the Argentinean tour operators and travel agents surveyed in which service-rendering sectors price reductions would imply a better result in the market:

Service rendering All Tour Travel interviewees Operators Agencies n=40 n=10 n=30 Intercontinental air transportation 36 90% 9 90% 27 90% Lodging 15 38% 6 60% 9 30% Internal Transportation 2 5% 1 10% 1 3% Entertainment ------Food ------Others ------

Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

According to the Argentinean tour operators and travel agents interviewed, if there was a price reduction in intercontinental air transportation, Europe’s sales would certainly increase. Each of them stated that this has already been verified with the great competition that there is in the air market which has allowed tariffs to go down.

In second place is the lodging. This is significant since in the majority of the selected samples the high European lodging price is specified, and is compared with the Caribbean lodging which presents high quality and accessible prices.

120

9. Route analysis

9.1 Main outbound airports to Europe

The International Airport Ministro Pizzarini – Ezeiza (EZE), located next to the capital, is the only International Airport in Argentina from which all the international flights going to Europe depart. On some occasions Aerolíneas Argentinas operates from the Airport of Cordoba (in the center of the country), but these at- tempts last only a short time due to the lack of infrastructure of the airport. Likewise, the airlines from border countries (Uruguay and Chile) make connections to Europe from the Jorge Newery Airport (Buenos Aires) and the El Plumerillo Airport (Mendoza) through the main airports of their respective countries.

121

9.2 Main inbound airports in Europe

The airport most mentioned by the interviewees as the preferred airport of their clients is Madrid Airport, with 68% of the indications. A great distance behind this is Paris, Frankfurt and Amsterdam. It is important to point out that Madrid is the gateway for Europe, both for Iberia as well as for Aerolíneas Argentinas, which account for the greater part of the market of trips to Europe. This data coincides with the European country most visited by the Argentineans, due to the high percentage of Argentinean cultural roots from Spain, and of course, the language is a factor that influences this choice. However, some of those interviewed declared that the entrance airport has no importance, but that what mat- ter are the tariffs and the possibilities of connections to other destinations in Europe.

Main inbound airports in Europe

Cities All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Madrid 30 68% 9 90% 19 63% 2 50% Paris 4 9% - - 3 10% 1 25% Frankfurt 3 7% - -3 10% - - Amsterdam 3 7% - -3 10% - - London 2 5% - -1 3% 1 25% Rome 1 2% - -1 3% - - Zürich 1 2% 1 10%- - - -

Source: Expert survey on Argentinean travel trade. March/April 2000 Percentages based on number of answers given for 1. choice

The importance of Madrid as the leading inbound airport has been confirmed through the analysis of packages offered: 48% of the packages present Madrid as the main gateway to Europe.

122

9.3 Favorite connections in Europe

The travel trade surveyed emphasized that their clients prefer, in general, non- stop flights, direct and without connections. In case a connection is necessary, they choose the airports by the ticket price and the ones that offer more conven- ience to get to the destination as quickly as possible.

It is pointed out, still, that Madrid is one of the cities indicated as the main tourist sites of Europe to the Argentinean, who prefers this city above others, and is also the most favoured connecting airport. Airline companies often offer a free night in the city, allowing the tourist to have at least a brief city tour of a city which may not have been in the foreseen itinerary.

Favorite connections in Europe

Favorite airports All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Madrid 29 66% 9 90%20 67% - - Zürich 2 5% 1 10%- - 1 25% London 2 5% - -2 7% - - Frankfurt 2 5% - -2 7% - - Paris 1 2% - -1 3% - - Rome 1 2% - -- - 1 25% Copenhagen 1 2% - -- - 1 25% Milan 1 2% - -- - 1 25% Amsterdam 1 2% - -1 3% - -

Source: Expert survey on Argentinean travel trade. March/April 2000

123

Airlines have been asked if they have plans to improve their capacities to Europe and/or if they intend to include new European airports into their business.

3 out of the 4 airline companies interviewed (75%) intend to improve their flight capacity. They not only mentioned their intention to increase the capacities of destinations belonging to them, but also their intention to add new destinations to this.

One company interviewed intends to start operating to other European airports (Heathrow and Charles de Gaulle Airports). However, it is clear that the answer was more an expression of desire than of intention.

124

10. European national tourist boards

10.1 Awareness of European national tourist boards

From all those interviewed, more than 90% claimed to be familiar with some of the Representation Offices of European countries in Argentina.

Awareness of European national tourist boards

European national tourist All Tour Travel Airlines boards known: interviewees Operators Agencies n=44 n=10 n=30 n=4 No 3 7% 1 10%1 3% 1 25% Yes 41 93% 9 90% 29 97% 3 75% Namely: Spain 39 95% 9 90% 27 93% 3 75% Italy 22 54% 2 20%20 69% - - United Kingdom 15 37% 2 20% 13 45% - - France 13 32% - - 11 38% 2 50% Germany 4 10% - -4 14% - - Greece 3 7% - -1 3% 2 50% Czech Republic 3 7% - - 3 10% - - Austria 2 5% - -2 7% - - Croatia 1 2% - -1 3% - - Denmark 1 2% - -1 3% - - Hungary 1 2% - -1 3% - - Netherlands 1 2% - -1 3% - - Norway 1 2% - -1 3% - - Portugal 1 2% - -1 3% - - Sweden 1 2% - -1 3% - - Switzerland 1 2% - -1 3% - - Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

125

Amongst the representative offices, the Tourism Representation Office of Spain, which is very well organized and provides a good supply of information, stands out in particular.

In second place comes Italy, even though the attention and material provided were less satisfactory. In third place is the United Kingdom, where there is more information about Scotland - a little commercialized destination - than about England. In fourth place is France, where information is very upsetting: Disney and snow, two products that agents do not sell in that destination.

However, there is no smooth relation between these entities and the tourist services companies, which have a series of expectations about the consulates and embassies that up to now are not fulfilled.

126

10.2 Expectations towards European national tourist boards

When asked about the expectations in relation to the Promotion Offices of European countries in Argentina, the following were mentioned:

Expectations in relation to the Promotion Offices of the European countries

Expectations All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 General marketing & promotional activities 21 48% - - 19 63% 2 50% Workshops / conferences for agents 6 14% - - 6 20% - - Work jointly to the destinations' divulgation 1 2% 1 10% - - - - Improve the relationship with agents 1 2% - - 1 3% - - More Tourism Offices 1 2% - - 1 3% - - None: is not satisfied 8 18% 7 70% 1 3% - - Is satisfied 1 2% - - - - 1 25% None 3 7% - - 3 10% 1 25% No answer 5 1 4 - Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

Regarding the expectations in relation to the Tourism Promotion Offices of the European countries in Argentina, it is necessary to emphasize that a part of the travel agencies interviewed showed certain differences, alleging that they do not have up-to-date information, that they do not share the information they have with the operators, and do not show a pro-active attitude. Beside this, the necessity of greater assistance in the country standing out in terms of what concerns marketing, publicity and promotion, and pro-action of activities in general.

10.3 Activities which could be carried out together with the

127

travel trade

When asked about the activities the promotional offices of European countries could carry out together with the Argentinean travel trade, the following were mentioned:

Activities which promotional offices of European countries could carry out together with Argentinean travel trade

Activities to be developed to- All Tour Travel Airlines gether interviewees Operators Agencies n=44 n=10 n=30 n=4 None (do not believe they could develop any activity) 11 25% 7 70% 3 10% 1 25% Workshops, courses 2 5% 2 20% 2 7% - - Promotion & advertising 2 5% - - - - 2 50% Joint publicity (co-op) 2 5% 2 20% - - - - Don't know 26 59% - - 25 83% 1 25%

Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

A part of the tourism trade, despite understanding the development of joint activities as important, shows a certain skepticism concerning the type of activities that could be developed together with the official organisms of each country.

However, suggestions included running courses, workshops and familiarization trips which help to inform and improve the relations. In addition, publicity campaigns could be developed in collaboration.

128

10.4 Concrete support from European national tourist boards

When asked about concrete support from the promotional offices of European countries, the following measures were mentioned:

Support desired from the Promotion Offices of Europe

Support desired All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Consumer-centered promotional material 19 43% 2 20% 16 53% 1 25% Brochures 5 11% 2 20% - - 3 75% Fam. trips for employees 2 5% - - 2 7% - - Videotapes 2 5%- -- - 2 50% Catalogues / sales manuals ------Personal advice 1 2% - - 1 25% Others - - Workshops 5 11%2 20%3 10% - - Maps of cities and roads 4 9% 4 13% - - Events information 3 7% 3 10% - - Conferences 3 7% 3 10% - - Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

When asked about the type of support desired from the tourism promotional offices of Europe, the most frequent answer was that a European tourism promotional office should provide promotional material to hand to the consumer.

Brochures were mentioned by airlines and tour operators, explaining that in this way the clients could have a clear image of the place to which they wish to travel. "Other" support demanded refers, above all, to workshops and the need for road and city maps.

11. Media to promote Europe in Argentina

129

11.1 Relevant measures to promote Europe in Argentina

According to the Argentinean travel trade, the most efficient measures to promote Europe as a vacation destination are the following:

The most efficient measures for the promotion of Europe in Argentina today

Measures All Tour Travel Airlines interviewees Operators Agencies n=44 n=10 n=30 n=4 Report on printed media, TV and radio 41 93% 10 100% 28 93% 3 75% Publicity on printed media, TV and radio 6 14% 3 30% 2 7% 1 25% Material for distribution in agencies 9 20% 1 10% 8 27% - - Publicity or report on electronic media (Internet) 14 32% 3 30% 11 37% - - Material for distribution in tour operators 8 18% 2 20% 5 17% 1 25% Films and videos ------Tourist guides 4 9% 1 10% 2 7% 1 25% Direct mailing 5 11% - - 4 13% 1 25% Posters and Billboards ------Others 1 2% - - 1 3% - -

Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

130

According to the Argentinean travel trade, the most efficient media to promote Europe in Argentina are the printed media - newspapers and magazines with paid publicity or articles about the destinations are considered the best way to promote a tourist destination. The most mentioned were the press (printed) media, since the reader can continue to enjoy the images of the destination until the moment he/she decides to travel. Neither radio nor television present this characteristic as both are 'immediate' means of communication, and the greater part of the information that they present is 'lost' after broadcasting.

Furthermore, the handing out of promotional material in agencies is an efficient method of promoting the country, if the company can has a sufficient quantity of brochures. It is therefore necessary that the Foreign Representations are en- couraged to send the agencies sufficient promotional material on each country.

The Internet was mention by every third person interviewed. The Argentinean trade do not see the electronic means as a competitor, but as a means to help spread information about the destination 'Europe' and, in this way, to help increase sales.

131

11.2 Possible changes in used information sources

According to the tour operators and travel agents surveyed, there will be some change in the way their clients get to know about Europe as a tour destination, with half of the interviewees answering affirmatively to this question.

Changes will occur due to the development of the Internet. In practice, it is the travel agent that suggests to the client to visit a site when he/she does not have the requested information. The lack of information is due to the scarcity of material with which the travel agents are provided to solve practical questions on non-conventional destinations, but which are being asked for more and more. Internet allows the passenger as well as the travel agent to obtain generic as well as specific information on Europe as a destination.

Changes in the means of advertisement Chances in the means All Tour Travel of advertising interviewees Operators Agencies n=40 n=10 n=30 Yes 22 55% 5 50% 17 57% No 12 30% 4 40% 8 27% No opinion 6 15% 1 10% 5 17% If Yes: Internet 19 86% 4 80% 15 88% More promotion/publicity 4 18% 1 20% 3 18%

Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

132

12. Cooperation with service-rendering companies in Europe

12.1 Most booked hotel chains

The Argentinean tour operators and travel agencies surveyed book mostly with the following hotels:

Most mentioned hotel chains

Hotel chains All Tour Travel interviewees Operators Agencies n=40 n=10 n=30 Meliá 11 28% 7 70% 4 13% Sol 6 15% 6 60% - - NH Hoteles 5 12% 4 40% 1 3% Riu 4 10% 4 40% - - Utell 4 10% - - 4 13% Sheraton 3 8% - - 3 10% Sofitel 3 8% 3 30% - - Accor 2 5% - - 2 7% Frantour 2 5% 2 20% - - Hilton 2 5% - - 2 7% SRS Worldhotels 2 5% - - 2 7% Caesar 1 2% - - 1 3% Concorde Line 1 2% - - 1 3% Europamundo 1 2% - - 1 3% Forte 1 2% 1 10% - - Gulliver London 1 2% 1 10% - - Holiday Inn 1 2% - - 1 3% Husa 1 2% 1 10% - - Hyatt 1 2% - - 1 3% Intercontinental 1 2% - - 1 3% Jolie 1 2% - - 1 3% Residencias Orion 1 2% - - 1 3%

133

STA 1 2% - - 1 3% Tizla 1 2% - - 1 3% Trips 1 2% - - 1 3% All hotel chains 8 20% - - 3 10% Independent hotels 6 15% - - 6 20% Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

The hotel chains that stand out were Meliá followed by Sol and NH Hotels, Riu, Utell, Sheraton and Accor (Sofitel).

It is still noticed that a significant part of those interviewed indicated that they use independent lodging services, that is, hotels that do not belong to a chain, but which offer services consistent with those demanded by the client.

134

12.2 Most used airlines

The Argentinean tour operators and travel agencies surveyed mostly operate with the following airlines:

Most mentioned airlines

Most mentioned airlines All Tour Travel interviewees Operators Agencies n=40 n=10 n=30 Ibéria 22 55% 8 80% 14 47% Alitalia 22 55% 9 90% 13 43% British Airways 22 55% 5 50% 17 57% Aerolíneas Argentinas 16 40% 6 60% 10 33% Lufthansa 14 35% 1 10% 13 43% Air France 10 25% 1 10% 9 30% KLM 8 20% 2 20% 6 20% Varig 7 18% 3 30% 4 13% Swissair 2 5% 1 10% 1 3% Lan Chile 1 2% - - 1 3% TAP 1 2% - - 1 3% Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

With regard to the airlines, the most frequently mentioned were: Ibéria, Alitalia and British Airways followed by Aerolíneas Argentinas and Lufthansa.

135

12.3 Most used tour operators

As far as local tour operators are concerned, the Argentinean tour operators and travel agencies surveyed work mostly with the following:

Most mentioned tour operators in Europe

Tour operators All Tour Travel interviewees Operators Agencies n=40 n=10 n=30 Juliá Tours 13 33% 1 10% 12 40% Piamonte 11 28% - - 11 37% Trapsa Tours 9 23% 7 70% 2 7% Eurovip's 6 15% 1 10% 5 17% Iberojet 6 15% 1 10% 5 17% Marsans 6 15% 1 10% 5 17% Special Tours 6 15% 3 30% 3 10% Petrabax 6 15% - - 6 20% Paditours 5 12% 3 30% 2 7% Turavia 4 10% - - 4 13% Sato 3 7% 2 20% 1 3% Surland 3 7% 2 20% 1 3% Viajes Verger 3 7% - - 3 10% All seasons 2 5% - - 2 7% Dorothy 2 5% 1 10% 1 3% Pullmann Tours 2 5% 2 20% - - Bian Tour 1 2% - - 1 3% CIT 1 2% - - 1 3% Citirama 1 2% - - 1 3% Contiki 1 2% - - 1 3% Cosulich 1 2% - - 1 3% Emotion 1 2% - - 1 3% Europa Mundo 1 2% - - 1 3% Davos Tours 1 2% 1 10% - - Gulliver Travel 1 2% 1 10% - -

136

Horizon 1 2% - - 1 3% Ibero America 1 2% - - 1 3% Mundicolor 1 2% 1 10% - - Omvesa 1 2% - - 1 3% Oremar 1 2% - - 1 3% Panavision 1 2% 1 10% - - Tourstar 1 2% - - 1 3% Travelclub 1 2% - - 1 3% Travelook 1 2% - - 1 3% Travel Tours 1 2% - - 1 3% UTA 1 2% 1 10% - - Veramundo 1 2% - - 1 3% Source: Expert survey on Argentinean travel trade. March/April 2000 * multiple response

The tour operators most frequently mentioned by those interviewed were Juliá Tours, Piamonte and Trapsa Tours. Every third travel company interviewed works with Juliá Tours and every fourth with Piamonte and/or Trapsa Tours.

It should also be noted that there is no one tour operator that holds hegemony in the market, which is very fragmented and competitive.

However, it should be pointed out that many packages to Europe are organized by European operators who only have the role of reseller, which is why they sometimes end up not knowing about all the services included in the package.

137

III. INFORMATION ON EUROPE PRESENTED IN THE CATALOGUES AND IN THE ARGENTINEAN MEDIA

1. Analysis of the catalogues of tour operators

Within the framework of the desk research for the Argentinean market, the catalogues of the following important tour operators were analysed:

National Operators or with Representation International Operators Marsans (Spanish) Trapsatur, Pullmantur Petrabax (Spanish) Petrabax Juliá Tours (Spanish) Juliá Tours EuroVip’s (Spanish) Trapsatur, EuroVip’s Iberojet Iberojet Eurotur Special Tour Bian Tour Trapsatur Excel Viajes Panavisión Davos Grupo Bopa Roberto Pereyra Trapsatur, Liberty

In total, 990 packages were analysed, of which 88% are destined only to Europe, 5% present mixed destinations, and the remaining 6% refer to destinations outside Europe.

Four out of the 10 National Operators that were taken as a sample work with Trapsatur. These are: Marsans, Eurovip’s, Bian Tours and Roberto Pereyra. It can be said, that in function to the sample, Trapsatur is responsible for 35% of the European offer in Argentina.

The exact percentage of packages which are bought directly from Europe and prepared in Argentina could not be established, but according to estimates of the Argentinean Association of Travel and Tourism Agents, almost 85% of the packages are imported, once the costs are lower.

138

The 3 to 5 day circuits that are offered for weekends in Europe, are sold as ex- tensions to the bigger packages in Argentina.

In general, the Tour Operators' catalogues present the information using high quality graphics, with attractive pictures and many colors and images. In addition, they also feature maps illustrating the itineraries.

The offer for the year 2000 does not vary too much from the year 1999. How- ever, the range of options has grown. For example, Iberojet included an itinerary in Europe by train with lodging in hotels that start at US$ 39.00. Petrabax, on the other hand, took advantage of year 2000 to add religious circuits, with the Jubileo.

This trend to offer more economic options coincides with the growth in travel by youth, students and people with more restricted economic resources.

Regarding the destinations, it is noticed that the TTOO count with a big general catalogue of Europe, and with some small catalogues addressed to regions (Scandinavia) or countries, the most frequent being Spain and Italy. There are also catalogues of specific regions inside a country, like Andalusia. It should be considered that the great majority of the International Operators with which Ar- gentina works are Spanish.

The great majority of packages are addressed only to Europe, and the percentages of mixed tours and trips to other countries are similar. Usually Europe is combined with The Holy Land or Morocco.

All the catalogues are valid for the whole year 2000. Most of the packages include a general price and an addition for the high season only. There is no mid- season, and the differences between high and low season tend to disappear.

139

1.1 Countries, cities and regions offered

The countries most mentioned in the catalogues are Spain (70%), France (65%), Italy (60%) and Austria (60%). The results are not surprising since in all fields of this investigation these are the leading countries, except for Austria,.

Surprising is the percentage of mentions of the Czech Republic in the catalogues (55%), always as a part of a circuit of many European cities.

Meanwhile, countries like Bulgaria, Slovenia, Estonia and Croatia do not appear in the sales catalogues, which probably contributes to the lack of information that exists in Argentina about these countries which are associated with wars, misery and pain. There was also no information about Croatia in the analyzed means.

Monaco and Malta also do not appear. However, both are destinations that the common Argentinean travelers wish to visit. Monaco is associated with glamour, and Malta with the charming landscape and the Mediterranean atmosphere. Moreover, Malta is a destination that appears frequently in the media and that provides good pamphlets via the Representation Office. This is not the case with Monaco, which does not have a Representation Office.

Finally, Ireland and Iceland also have 'frequency zero' in the catalogues. Ac- cording to the information provided by the Embassies of both countries, they do not have a tourist exploration. However, in Argentina the image of Ireland has been established through the adoption of its culture as social fashion. In Buenos Aires, a circuit of Irish pubs has appeared where people go to enjoy the “best beer” and which are frequented mainly by English students who practice the language with foreigners who are commonly found there. Besides this, CD’s of Celtic music have a distinguished place in the sales ranking. Increasing this cultural adoption, in 2000 the stores have been invaded by Irish style sweaters.

140

Countries identified in the catalogues

Countries Frequency % Spain 14 70% France 13 65% Austria 12 60% Italy 12 60% Czech Republic 11 55% Germany 11 55% Portugal 11 55% Belgium 10 50% Hungary 10 50% Switzerland 10 50% United Kingdom 10 50% Netherlands 9 45% Norway 9 45% Sweden 9 45% Denmark 7 35% Greece 7 35% Turkey 6 30% Poland 5 25% Finland 4 20% Luxembourg 4 20% Cyprus 1 5% Bulgaria 0 0% Croatia 0 5% Slovenia 0 0% Estonia 0 0% Ireland 0 0% Iceland 0 0% Malta 0 0% Monaco 0 0% Source: Analysis of catalogues of tour operators

141

Regarding the European cities offered in the packages, in most cases these are the capitals of each country.

In first place is Paris, followed by Milan, Rome, Venice and Madrid.

Amongst the first five cities, the prevalent country is Italy, while among the first ten countries are Italy, Spain, France, the United Kingdom and Austria.

Once again, these results are not surprising, but are in keeping with the rest of the samples. Even though the country with most the mentions in the catalogues is Spain, when analyzing the cities it slips down to fifth place.

Differently from Brazil, the tour packages offered in Argentina seem more homogeneous, including less cities and focusing more on the capitals and consecrated cities.

Cities and regions identified in the package

Cities Countries Frequency % Paris France 337 36.15% Milan Italy 322 34.54% Rome Italy 301 32.29% Venice Italy 285 30.57% Madrid Spain 283 30.36% Barcelona Spain 215 23.06% Vienna Austria 193 20.70% London United Kingdom 185 19.84% Bordeaux France 158 16.95% Granada Spain 135 14.48% Innsbruck Austria 133 14.27% Zurich Switzerland 119 12.76% Cordoba Spain 117 12.55% Nice France 117 12.55% Frankfurt Germany 110 11.80% Salzburg Austria 110 11.80%

142

Seville Spain 100 10.72% Budapest Hungary 99 10.62% Prague Czech Republic 99 10.62% Asissi Italy 98 10.51% Zaragoza Spain 90 9.65% Brussels Belgium 77 8.26% Amsterdam Netherlands 75 8.04% Toledo Spain 73 7.83% Lisbon Portugal 63 6.75% Munich Germany 61 6.54% Pisa Italy 61 6.54% Dover United Kingdom 60 6.43% Berlin Germany 52 5.57% Naples Italy 51 5.47% Athens Greece 49 5.25% Calais France 49 5.25% Copenhagen Denmark 47 5.04% Freiburg Germany 46 4.93% Stockholm Sweden 45 4.82% Bruges Belgium 44 4.72% Oslo Norway 41 4.39% Orleans France 37 3.96% Costa del Sol Spain 36 3.86% Istanbul Turkey 36 3.86% Lourdes France 35 3.75% Zaragoza Spain 35 3.75% Lucerne Switzerland 30 3.21% Merida Spain 28 3.0% Bergen Norway 27 2.89% Fatima Portugal 27 2.89% Kusadasi Turkey 26 2.78% Santiago de Spain 25 2.68% Compostela Mykonos Greece 24 2.57%

143

Canterbury United Kingdom 23 2.46% Patmos Greece 22 2.36% Graz Austria 21 2.5%% Helsinki Finland 20 2.14% Capadoccia Turkey 19 2.03% Santorini Greece 19 2.03% Lillehammer Norway 18 1.93% Cracow Poland 15 1.60% Heraklión Greece 14 1.5% Ankara Turkey 13 1.39% San Sebastián Spain 12 1.28% Liverpool United Kingdom 11 1.18% Warsaw Poland 11 1.18% Brno Czech Republic 8 0.85% Hannover Germany 8 0.85% Karlovy Vary Czech Republic 3 0.32% Source: Analysis of catologues of tour operators

144

1.2 Themes of packages offered

The prevalence of packages related to History and Culture - 90% of the total - once again shows the true motivation of tourists that travel to Europe.

Regarding the data concerning Sun & Beach, of the 932 packages that were analyzed, only one presents the theme Sun & Beach. Argentinean tourists that look for this kind of trip tend to go to the Caribbean or to Brazil, and during the Argentinean summer they enjoy the national beaches.

Themes of Packages

Predominant Themes in the Packages % History & Culture 90.0% Cruises 4.4% Nature & Landscape 0.5% Sun & Beach 0.1% Sports 0.0% Health & Hot Springs 0.0% Adventure 0.0% Others 5.0% Source: Analysis of catalogues of tour operators

145

1.3 Types of packages offered

Only 20% of the packages include airline ticket in the price, which means that 80% do not include the additional value of the ticket, so that the price of the airline ticket remains invisible. The problem is that, in most of the catalogues there is no information that the prices they are offering do not include the airline ticket, and then the consumer might get confused about the price of the trip.

Meanwhile, 70% of the packages are offered with breakfast. Only 20% of them include half board, and 10% include breakfast and some food.

146

2. The Argentinean media

2.1 General remarks

In Argentina, differently from Brazil, the main difficulty in spreading the word about the tourism destination 'Europe' is not the price of the advertisements (which are not low), but the lack of information offered by the Embassies, Con- sulates and other kinds of foreign representation. These are institutions, in most cases, which exist to try and solve the problems of residents or descendents of immigrants. They usually have specialized publications, like magazines or tourist guides, that are only distributed among association’s members. Most of those individuals practice a strictly closed communications policy.

If a tourist demands more information, he/she is directed to search the web pages, and the Argentinean reality points out that there are only 590,000 Inter- net users (Data Corp, 1999) in the country. Here the problem is not about a economic block, since one hour of internet connection costs between US$ 2.00 and US$ 7.00, according to the additional service that is offered; but the lack of capability. Simply, there are very few Argentineans that are prepared to use the Internet.

On the other hand, people over 40 years old are not used to and do not want to see the information on a screen, but on a sheet of paper.

Therefore, divulging information on the destination 'Europe' to the general public generally happens via the tourism supplements of the newspapers which reach the whole national territory, and in travel-specialized magazines.

Television and radio are also not good methods of spreading information about this destination. In open television there are no tourism programs, and those that do exist are on cable television, which becomes another obstacle, since it does not have a massive arrival.

147

Concerning radio programs, there are no more than five, and the ratings are not really very significant. Many are prepared or produced by the Embassies or Consulates and are only directed at a specific small target group. This is true in the case of the city of Buenos Aires, but also in many countryside towns which have been settled by European groups e.g. ‘Tres Arroyos’ (Buenos Aires), where one can listen in AM to ‘La Hora Danesa’ (Danish Hour), but which are not particularly useful for tourist aims.

In general, in Argentina, this particular means of communication presents a low level of professionalism, which is true in the case of both radio and television.

148

2.2 Newspapers

The two most important newspapers in Argentina are

Diario Clárín

Diario La Nacion

These two newspapers are from Buenos Aires City, and its edition reaches all the national territory. Both have a daily circulation and feature general interest content.

1.) Diario Clárín: It has an average daily circulation of 699,000 copies during weekdays and 1,200,000 on Sundays. It is the most important newspaper in the country. It publishes the tourism section on Sundays, in color, with a varying number of pages, and content similar to that of a tourism brochure. There are no analysis notes about the tourism industry, but only descriptive articles regarding different places in the world, together with an significant quantity of pictures. Another special feature of this supplement is the recommendation of places by famous people.

Nevertheless, it gathers a great quantity of advertisements, and only one page about news in the tourism sector. Clarín is a popular newspaper, radical, directed to classes A, B and C.

2.) Diario La Nacion: It is Argentina’s most traditional newspaper, and has an average daily circulation of 230,000 copies during weekdays and about 310,00 on Sundays. It also publishes the tourism section on Sundays, and presents the same composition as that described in Clarín, with the difference that its speci- ality is not a famous person’s trip, but a cultural advertisement of different countries in Europe and the United States. In its title, a different country is emphasized every Sunday. Its readers belong to A and B classes. It is a right oriented newspaper.

149

2.3 Travel magazines

The two most important travel magazines in Argentina, which reach the whole national territory, despite being published in Buenos Aires, are:

Revista Lugares

Revista Buenos Viajes

Both of them have discontinuous circulation, and have a content addressed to tourists in general. In Argentina they are the two most sold tourism magazines, since most of the publications are turned to weekend, fishing and minitourism trips.

1.) Revista Lugares: It is the most important publication for people who like to travel, and is the most sold among the specialized magazines. Its circulation is around 35,000 copies. The content is composed of a variety of notes regarding different destinations, but Argentina (especially Patagonia), boundary countries and the United States are the most frequent. The most important point of the magazine is its excellent, abundant, and high quality photographs. The text is subjective, like a family report of a trip. However, the magazine is widely con- sumed, thanks to a continuous marketing campaign, even though it features only a few advertisements in its pages.

2.) Revista Buenos Viajes: It is the second travel-specialized magazine in importance, if the sale numbers as taken into consideration as a parameter. It has a circulation of about 21,000 copies monthly. Buenos Viajes also features outstanding photographs, even though the quality is inferior to that of Lugares; it also contains general information about tourism, particularly articles dedicated to descriptions of destinations.

Regarding the destination 'Europe', taking as a sample the November 1998 edition - which has 92 pages - 19 of them are devoted to Europe. The most important European report has 15 pages, of which 3 are dedicated to the text and 15 to photographs.

150

2.4 Trade publications

The most important publication in the tourism sector is Repport Gata, which gives up-to-date news in the tourism sector and has a high percentage of advertisements. The magazine is a weekly periodical, distributed by mail.

In second place is Ladevi (the Travel Agency), which has the same characteristics as above.

Finally, there is also El Mensajero and GIT (International Traffic Guide). Both of these are monthly publications. El Mensajero has the same characteristics as aforementioned magazines. However, GIT does not have any periodical information, excepting for a guide with useful data.

151

2.5 Analysis of advertisements and articles published in the relevant newspapers and travel magazines

Tourism articles and advertisements are published in Diario Clárín, Diario La Nacion, Revista Lugares, Revista Buenos Viajes. 198 advertisements and 192 tourism articles were analyzed in the four aforementioned publications.

In general only a few ETC (European Travel Commission) countries are more frequently present in Argentinean media. Among them can be pointed out Italy, France and Spain. The United Kingdom appears less frequently, standing in fourth place,

Italy, Spain and France are very popular destinations in Argentina, mainly because the country’s culture is a mixture of these three as a result of the great in- flux of immigrants that arrived from those countries at the end of the 19th century. On the other hand, considering that in other fields of investigation the language difference emerged as one of the main factors that Argentinean tourists most disliked about Europe, it is understood that those countries are less prob- lematic for the tourist’s communication.

The countries that do not appear - neither in advertisements nor in articles - are Bulgaria, Cyprus, Croatia, Slovenia, Estonia and Ireland. In the case of Iceland, the only tourism article that appears has a romantic character, with the country being associated with the writer Jorge Luis Borges, emphasizing the mythologi- cal richness, but not tourist, and the powers of the country, since the writer was inspired to write some of his tales in Iceland.

Differently from Brazil, in Argentina most of the tourism articles are clearly in- formative, and in some cases the writers travel to the destination to write the article. Foreign representations or travel agencies with which they make advertising exchanges cover these costs in many cases, but in other cases the writer composes the article using the information that he/she has at hand.

152

However, as in Brazil, the trend to elaborate the tourism articles is to provide the reader with the largest amount of data possible so that he/she can plan the trip by themselves.

In the analysis of the newspapers’ contents, there were no suggestion of agencies or packages, but rather of airlines. This changes when the magazines’ content is analyzed. In this case agencies are suggested, since many of its articles are paid for by the same agencies, and are thus covert advertisements.

Countries identified in advertisements and tourism articles

Countries Advertisements Articles Frequency (%) Frequency (%) Italy 61 30.80% 44 22.91% France 52 26.26% 31 16.14% Spain 45 22.72% 34 17.70% United Kingdom 25 12.62% 24 12.50% Austria 19 9.59% 8 4.17% Germany 18 9.09% 9 4.69% Greece 15 7.57% 7 3.65% Czech Republic 12 6.06% 6 3.12% Turkey 12 6.06% - - Hungary 11 5.55% 1 0.52% Portugal 8 4.04% 8 4.17% Switzerland 8 4.04% 9 4.69% Denmark 7 3.53% 5 2.60% Norway 7 3.53% 2 1.04% Sweden 7 3.53% 6 3.12% Netherlands 5 2.52% 7 3.65% Finland 4 2.02% 1 0.52% Belgium 3 1.51% 2 1.04% Malta 2 1.01% 3 1.56% Monaco 2 1.01% 2 1.04% Poland 2 1.01% - - Luxembourg 1 0.50% - -

153

Iceland - - 1 0.52% Bulgaria - - - - Cyprus - - - - Croatia - - - - Slovenia - - - - Estonia - - - - Ireland - - - - Source: Analysis of 192 tourism articles and 198 advertisements published in Diario Clárín, Dia- rio La Nacion, Revista Lugares, Revista Buenos Viajes. (*) Multiple response

Size of advertisements / volume of articles

From the 198 advertisements analyzed about Europe, 116 were from 'La Nación'. This data can be justified hypothetically by two arguments: the first one refers to the public that newspaper is aimed at, which has a higher potential tendency to consume the destination Europe. The second argument is centered on the fact that 'La Nación' is a newspaper with a larger format than 'Clarín'.

The most frequent size of advertisement the 1/12 of a page format (31%). This data matches with the reality of the publicity industry in Argentina, which suffered a profound crisis in the last three years, taking it nearly to the edge of bankruptcy.

In the sample, there was an 11% percentage of full-page advertisements. Here there is a clear difference. Half of the advertisements analyzed in the magazines were of this size, whereas only 6% of the advertisements analyzed in the newspapers are full-page.

154

Size Advertisements (%) Size of Advertisements (%) Whole page ½ Page

10.60 % 5.55%

1/4 page 3/4 page 3.55%

10.10%

1/8 page 1/6 page 14.65%

8.58%

1/12 page Less than 1/12 page 31.32%

14.65%

More than one page 1%

Source: Analysis of 198 advertisements published in Diario Clárín, Diario La Nacion, Revista Lugares, Revista Buenos Viajes.

In 106 out of the 198 advertisements (54%) analysed, Europe was presented in so-called classified advertisements, meaning, that the ad consists of several types of products with different destinations, such as Europe, the United States, Africa, Caribbean Islands, Brazil, etc. This shows that in Argentina, Europe is presented as an offer in which the reader has to decide between various different destinations. It must be considered that many agencies buy publicity space, and use it to promote all its products.

When analyzing the international destinations that are promoted together with Europe, the Caribbean appears 47 times, Brazil 39 and the United States 35 times.

155

92 (46%) of the 198 advertisements analysed were so-called 'isolated advertisements', meaning that the advertisement consists of only one type of product - in our case, Europe. 64% of the isolated advertisements are published by the newspaper 'La Nación', a media in which the reader expect to see Europe as a single and exclusive destination. Nevertheless, it should be mentioned that in the same advertisement, various destinations in Europe could be offered.

Tourism articles about Europe appear more frequently with the full-page size or smaller. These spaces contain not only information about news, but also many articles about destinations recommended by readers, famous people, or simply by the publisher of the means.

The full-page size appears 123 times, which corresponds to 64%. Following that percentage is the two-page size with 17%. From the 192 tourism articles analyzed, only 10 have between 9 and 16 pages.

Number of pages Absolute Frequency (%) 1 123 64.06% 2 33 17.18% 3 9 4.68% 4 9 4.68% 5 5 2.60% 6 2 1.04% 7 1 0.52% 9 1 0.52% 10 1 0.52% 11 4 2.08% 12 1 0.52% 15 2 1.04% 16 1 0.52% Source: Analysis of 192 tourism articles published in Diario Clárín, Diario La Nacion, Revista Lugares, Revista Buenos Viajes.

156

The cover articles about Europe represent a small percentage within the total sample (16% = 31 out of 192 articles analysed).

The study that was made showed that the newspaper La Nación published Europe on the cover of its tourism section only in the summer and winter vacation months. However, Clarín did the same in March, April, May and September. Associating this data with the acquisitive level of each newspaper’s reader, it can be established that 'La Nación' promotes the destination Europe on its cover during the high season, whereas 'Clarín' does it during the low season, probably in an adaptation to the economic possibilities of its readers.

With regard to the magazines researched, in 1999 Europe only appeared in first place in the month of June, a period in which the Argentineans search for a warmer climate, and to visit Europe during winter vacations is a good opportunity. For 1998 and 1997, it can be deducted from the sample that Europe appeared on the cover every four months.

157

Image of Europe presented in articles

According to the investigation made in the press media, in Argentina Europe also does not have a well-formed image, as is the case with Walt Disney or Af- rica. The Argentineans associate the trip to Europe with a symbol of status. On one hand, Europe is symbol of culture, and on the other, of superiority. All Europeans seem to be better than the nationals - to such an extent that even European groups inside Argentina have put themselves in a position of superiority.

Observing the following table, it can be confirmed that 42% of the tourism articles have European history and architecture as their approach. The sun and beach product is only promoted, indirectly, through the Canary Islands, and is more frequent in the advertisements than in the tourism articles.

Articles’ Themes

Focus Frequency (%) History, architecture & religious constructions 80 41.66% Gastronomy 16 8.35% Folklore events 10 5.20% Nature 10 5.20% Fashion 4 2.10% Sports 1 0.52% Shopping & business 0 0.0% Multiple 36 18.75% Others 35 18.22% Source: Analysis of 192 tourism articles published in Diario Clárín, Diario La Nacion, Revista Lugares, Revista Buenos Viajes.

In the item 'Others', which comprises 18% of the total, the most significant specification is 'art' (34% of the total item), followed by 'lodging', with a relative value of 11% in the item. For example, one of the articles stands out the new French trend of renting countryside houses.

158

Another specification is 'movies', which represents 6% of the item. The United Kingdom's tourist office distributes a pamphlet with an itinerary of sites where the most famous movies were recorded.

On the other hand it is important to make clear that, as in the advertisements for Argentinean summer months, where it was more common the internal and sun and beach tourism, in the newspaper La Nación in December 1998 a supplement was recorded which included 40 pages addressed to Brazil and only a half-page to Europe.

Pictures

Even though pictures are an important graphic resource to attract readers, they are used very little in the case of advertisements, although they are, however, very frequently used in tourism articles, and even more so in the case of magazines where the picture is 'the star' of the publication.

There are no big differences between the percentages of pictures printed in black and white or in color, even though this difference can happen between magazines and newspapers. The former only publish color pictures, while in the newspaper the color is a privilege of the cover pictures and of some important picture inside the publication, especially when is an article with over 7 pages.

In the advertisements, pictures appear in only 13% of the total, which indicates the managers' strategy to reduce costs and focus on the interest of the traveler in the destination that is published, and not to the effect that the visual image could cause in it.

159

Pictures Identified

Advertisements Tourism Articles Pictures Frequency (%) Frequency (%) No 172 86.90% 22 11.45% Yes 26 13.10% 170 88.55% If yes Color 14 53.85% 84 49.40% B&W 12 46.15% 81 47.65% B&W-Color 5 2.95% Source: Analysis of 192 tourism articles and 198 advertisements published in Diario Clárín, Diario La Nacion, Revista Lugares, Revista Buenos Viajes.

In the analysis of the picture content, it can be observed that in the case of the articles, 43% of images portray European history and architecture. Following this in importance are historical sites (27%), and the folklore events (22%).

On the other hand, from the total number of advertisements analyzed, only 15% of them contain pictures, and of this percentage, 41% are images related to history and architecture.

The images that specifically stand out are the Eiffel Tower for France, a beach for the Canary Islands, or a cruise when the package is designed as such.

160

Content of Pictures

Advertisement Tourism Articles Content – Themes Frequency (%)* Frequency (%)* Historical sites 0 0% 51 26.56% History, Architecture & religious con- 12 6.06% 82 42.70% structions Folklore events 4 2.02% 43 22.40% Nature 3 1.5% 15 7.80% Gastronomy 0 0% 16 8.33% Sports 0 0% 11 5.72% Museums & Libraries 0 0% 8 4.16% Religion 0 0% 5 2.60% Shopping / Business 1 0.5% 7 3.64% Fashion 0 0% 2 1.05% Others 9 4.54% 12 6.25% Source: Analysis of 192 tourism articles and 198 advertisements published in Diario Clárín, Diario La Nacion, Revista Lugares, Revista Buenos Viajes. (*) multiple response

Finally, an important number of tourism articles included maps to guide the reader. From the total of articles, 41% include maps in the information, and the remaining 59% do not.

From the total number of articles analyzed, 3% include website or e-mail addresses.

161

Major Advertisers

Operators / Agencies in the Ads

Operators / Agencies Frequency (%) Longueira 19 9.59% Ati 14 7.10% All Seasons 11 5.55% Apolo Viajes 8 4.05% Entremares 8 4.05% Lago Traful 8 4.05% Marsans 7 3.55% Organfur 7 3.55% Giorgio 5 2.52% Juliá 5 2.52% Navijet 5 2.52% Taiar 5 2.52% Ventana Tour 5 2.52% Becciu 4 2.02% Eves 4 2.02% Hispanya 4 2.02% Travel Club 4 2.02% Davos 3 1.51% Donde 3 1.51% Euroviajes 3 1.51% Mauna Kea 3 1.51% M.Sh.Cruises 3 1.51% Piamonte 3 1.51% Polvani 3 1.51% Sabor 3 1.51% Sian Travel Way 3 1.51% Ami Tours 2 1.01% Costa Cruceros 2 1.01% Costantino Viajes 2 1.01% Ecology & Adventures 2 1.01%

162

Eurotur 2 1.01% Excalibur 2 1.01% Guada Tour 2 1.01% Guide Voyage 2 1.01% Nabil 2 1.01% Pacific Tour 2 1.01% Sachas Travel 2 1.01% Signorio Tours 2 1.01% Travel Point 2 1.01% Others 22 11.11% Source: Analysis of 198 advertisements published in Diario Clárín, Diario La Nacion, Revista Lugares, Revista Buenos Viajes.

The six first agencies with greater number of publications offering the product 'Europe' were, in decreasing order: Longueira (10%), Ati (7%), All Seasons (6%), Apolo Viajes, Entremares, and Lago Traful, with 4% each.

The particularity of Longueira, which stands in the first place, stands out, because it is specialized in the destination Spain, showing it as 'the entrance gateway to Europe'. Its advertisements are no more than 1/6 page, and include two advertisements in the same publication, in different pages. It advertises, for example, Andalusia in one page and Santiago de Compostela in other. The Xacobeo Compostelano advertisement is a Longueira’s “classic”.

The item 'Others' includes all agencies with a percentage of 0.5%.

From the tourism articles, one can see that in Argentina there is no such thing as suggesting to the traveler the agency with which he/she can buy the tour package; in 98% of the articles analysed the agencies were not named. In general, the tourism articles intend to fulfill the function to guide the traveler so that he/she can plan the trip independently. Only 4 agencies were recorded among the analyzed articles. In general terms, an enterprise is named in an article when it has a clever RRPP, pays the hidden publicity, or when it make an exchange with the communication media.

163

APPENDIX

AGÊNCIA DE VIAJE Y AGÊNCIA DE VIAJE Y TURISMO

Entrevistador: Día:______

Nombre del Entrevistado: Cargo: ______

Nombre de la Empresa:

1. En esta primera parte nos gustaría conocer las características de sus clientes, que viajaron con destino Europa, en los últimos 3 años (99, 98, 97) : a) Franja Etaria Predominante (A) Hasta 18 años (B) De 19 a 30 años (C) De 31 a 49 años (D) De 50 a 65 años (E) Mas de 65 años b) Sexo Predominante (A) Masculino (B) Femenino c) Escolaridad Predominante (Solo 1 opcion) (A) Baja: primario completo (B) Media: superior incompleto (C) Alta: a partir de superior completo. d) Franja de Renta Mensual Familiar Predominante (Solo 1 opción). (A) Baja: hasta $700 (B) Media-Baja: de $700 a $1800 (C) Média-Média: de $1800 a $3500 (D) Média-Alta: de $3500 a $6000 (E) Alta: mas de $6000 e) Ocupación Predominante (3 opciones en orden creciente) No. Profesión No Profiesión No Profesión No Profesión 1 Ingeniero 4 Abogado 7 Jubilado 10 Estudiante 2 Profesor 5 Comerciante 8 Administrador 11 Bancário 3 Médico 6 Funcion. Público 9 Ama de casa 12 Empresário

13. Otros. Cuales?

f) Lugar de Residencia Predominante (Al menos 3 opciones en orden creciente) Ciudad 1 2 3

g) Tipo de Grupo Predominante (Solo 1 opción) (A) Individual (C) Família (E) Grupo Informal (Forfait) (B) Pareja (D) Grupo Formal

AGÊNCIA DE VIAJE Y AGÊNCIA DE VIAJE Y TURISMO

2. Características de los viajes a Europa: a) Duracion Media del Viaje: ______dias

b) Motivación Predominante del Viaje y Alcance de Mercado (% de los viajes a Europa) No. Motivacion (%) N o. Motivacion (%) N o. Motivacion (%) 1 Negócios 6 Amigos y familiares 10 Viajes de Incentivo 2 Vacaciones 7 Cultura 11 Estudios 3 Negócios & Férias 8 Convenciones 12 Salud 4 Trabajo en Europa 9 Religión 13 5 Compras Otros. Cuales?

c) Época Predominante del Viaje Enero a Abril Mayo a Setiembre Octubre a Diciembre d) Tipos Predominantes de Vacaciones

9 Cuales son actualmente los tipos de vacaciones mas importantes hacia Europa (delimitar el alcance del mercado en %)?

9 Cuáles son los tipos de vacaciones con mayor potencial de mercado para el futuro?

Actualmente Mayor importancia potencial en % del futuro I. Vacaciones de sol y playa, para descansar en el mar...... ______...... II. Vac. recreativas en lugares de campo o montañas……...... ______...... III. Tours por diversos países...... ______...... IV. Tour por un país específico…...... ______...... V. Tour por una ciudad en particular…...... ______...... VI. Combinación de Tours y recreación...... ______...... VII. Vacac. para praticar deportes de verano...... ______...... VIII. Vacac. para practicar deportes de invierno...... ______...... IX. Vacac. culturales...... ……...... ______...... X. Vacac. Con mucha diversión, vida nocturna y vida social...... ______...... XI. Vacac. para un evento especial...... …...... ______...... XII. Vacac. combinadas con salud....…………...... ______...... XIII. Vacac. para compras...... ______...... XIV. Viaje étnico / en busca de raíces culturales…...... …...... ______...... XV. Vacac. combinadas con visita a amigos y familia...... …...... ______...... XVI. Otros tipos...... …...... ______......

AGÊNCIA DE VIAJE Y AGÊNCIA DE VIAJE Y TURISMO

3. Desenvolvimiento del Mercado a) Cual es su opinión sobre el desenvolvimiento de viajes a Europa en los últimos 3 años?

Viajes a Europa tuvieron Total de viajes Viajes de negocios Viajes de placer

Aumento significativo (+ 10%) Aumento discreto (entre + 5 a 10%) Estancamiento Disminución discreta (entre – 5 a 10%) Disminución significativa (- 10%)

Porquê?______b) Cuales Grupos han en los últimos 3 años...

aumentado?______

disminuido?______

Sin cambios en los últimos 3 años c) Como ve el desenvolvimento futuro del mercado (en los próximos 3 años) – en relación a los viajes a Europa?

Viajes a Europa tuvieron Total de viajes Viajes de negocios Viajes de placer

Aumento significativo (+ 10%) Aumento discreto (entre + 5 a 10%) Estancamiento Disminución discreta (entre – 5 a 10%) Disminución significativa (- 10%)

Porquê?______d) Cualess Grupos habrán en el futuro (próximos 3 años)...

aumentado?______dis- minuido?______

AGÊNCIA DE VIAJE Y AGÊNCIA DE VIAJE Y TURISMO

Sin cambios esperados 4. Cuantos viajes a Europa normalmente realiza por año? Número total de viajes para Europa...... …....______9 Por negocios...... ______% 9 Por Placer...... ______%

5. Cuales son los tipos de viajes? (% por segmento)

Paquete de Grupo...... ______Paquete individual...... ______Unico o ticket aéreo.……...... ______Otros. Cuales?

6. Destinos en Europa 6.1. Cuales son los destinos mas importantes en Europa (con mayor número de viajes) para su empresa en este momento? (% de viajes a Europa) 6.2. Cuales son los países con mayor potencial de mercado para el futuro? 6.3. Para cuales países Europeos oferece paquetes de viajes? País 6.1. los mas importantes 6.2. los mayores 6.3. Paquetes de destinos en Europa potenciales de mercado viajes ofrecidos Alemania % Áustria % Bélgica % Bulgaria % Chipre % Croacia % Dinamarca % Eslovenia % Espanña % Estonia % Finlandia % Francia % Grecia % Holanda % Hungría % Irlanda % Islandia % Italia % Luxemburgo % Malta % Mónaco % Noruega % Polonia % Portugal % Reino Unido % República Checa % Suecia % Suíza % Turquia %

AGÊNCIA DE VIAJE Y AGÊNCIA DE VIAJE Y TURISMO

6.4. Cuales ciudades son actualmente los “Grandes Vendedores”? ______

7. Precios

7.1. Cuales grupos de precios tienen las mayores posibilidades de venta por paquetes a Europa?

Precio total por paquete de viaje Menos de US$ 500 / pax US$ 501 hasta 800 US$ 801 hasta 1.100 US$ 1.101 hasta 1.500 US$ 1.501 hasta 2.000 US$ 2.001 hasta 2.500 US$ 2.501 hasta 3.000 US$ 3.001 hasta 4.000 US$ 4.001 o mas por pax

7.2. Cuáles son, en su opinión, los precios máximos que puden ofrecerce en los paquetes de viaje a Europa?

Aprox. US$ ______pax

7.3. Cuales son los precios medios aplicados actualmente a los paquetes de viajes a Europa?

Aprox. US$ ______pax

8. Operación de itinerarios para Europa: a) Cual es el método de reserva mas usual para sus clientes? (Solo 1 opcion) (A) Telefono / Fax (B) Visita a Agencia / Operadora (C) Internet (D) Otras Agencias / Operadoras (E) Otras. Cuales?______b) Tiempo de reserva antes del viaje (Solo 1 opcion) (A) Hasta 2 semanas (B) 2 meses (C) de 4 a 6 meses (D) de 3 a 4 semanas (E) 3 meses (F) mas de 7 meses c) Tipo de Alojamiento ? (Al menos 3 opciones en orden creciente)

(A) Clase de Lujo (5* a 4*) (F) Club de Vacaciones (B) Clase Intermedia (3*) (G) Bed and Breakfast (C) Clase Económica (H) Casa de Amigos y familia (D) Time Sharing (I) Barco, Navio, Yacht (E) Albergue o Casa Familiar (J) Cabaña, Trailer, Camping (K) Otros. Cuales? ______

AGÊNCIA DE VIAJE Y AGÊNCIA DE VIAJE Y TURISMO

d) Tipo de Transporte Utilizado en Europa (3 opciones en orden creciente) (A) Coche alquilado (E) Ferry Boat (B) Avión (F) Navio (C) Tren (G) Bicicleta / Moto (D) Omnibus (H) Leasing (I) Otros. Cuales? ______

9. Cuales son los principales aeropuertos de partida para Europa? (Al menos 3 opciones en orden creciente) (A) (C) (D) (E) (F) (G)

Cuales son los aeropuertos preferidos de llegada en Europa? (Al menos 3 opcines en orden creciente) 1 3 5 2 4 6

Cuales son las conexiones preferidas en Europa? (Al menos 3 opciones en orden creciente) 1 3 5 2 4 6

10. En su opinión, quê es lo que más les gusta a los turistas, y lo que menos les gusta, en sus viajes à Europa? MAS GUSTA MENOS GUSTA

11. Sobre los viajes a Europa: Las expectativas son alcanzadas? Los clientes estan satisfechos?

Muy satisfecho Satisfecho Poco satisfecho Insatisfecho

12. Cuales son los principales motivos para viajar en vacaciones a Europa?

AGÊNCIA DE VIAJE Y AGÊNCIA DE VIAJE Y TURISMO

13. Como evalúa los siguientes países de Europa en cuanto a la imagen? Como evalúa los atractivos turísticos de estos destinos? (favor anotar por país)

Imagem Atractivos de los Destinos País Positivo Negativo N/S Alto Médio Bajo N/S Alemania Áustria Bélgica Bulgaria Chipre Croacia Dinamarca Eslovenia España Estonia Finlandia Francia Grecia Holanda Hungria Irlanda Islandia Itália Luxemburgo Malta Mónaco Noruega Polonia Portugal Reino Unido República Checa Suecia Suíza Turquia

14. Cuales son, en su opinion, los principales puntos turísticos en Europa? ______

15. Cual es, en su opinión, el nivel de calidad exigido por el turista argentino cuando viaja a Europa? Alto Médio Bajo Justifique: Emp. Transporte

Hospedaje

Alimentacion

Entretenimiento

AGÊNCIA DE VIAJE Y AGÊNCIA DE VIAJE Y TURISMO

16.1. Conoce las Oficinas de Representacion / Promocion de Turismo de los Países Europeos en Argentina? (S) (N). Si es si, cuales:______

16.2.Cuales son sus expectativas en relacion a las Oficinas de Representacion / Promocion de Turismo y que tipo de actividades podrian desenvolver conjuntamente? ______

17. Cual es, actualmente, el medio mas eficiente para la promocion de Europa en Argentina? (A) Publicidad o reportaje en medios impresos (Diarios y revistas de gran circulacion) (B) Publicidad o reportajes en medios televisivos y radio (C) Publicidad o reportajes en medios electrónicos (internet) (D) Material para distribuir en agencias (E) Material para distribuir en operadoras de viajes (F) Posters y Outdoors (G) Guias turísticas (H) Filmes y vídeos (I) Valija Directa (J) Otros. Cuales? ______

18. Cuales son los Prestadores de Servicios turísticos con los que geralmente opera en Europa? Emp. Transporte Red Hotelera Operadores 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5

19. Habrá algun cambio en la forma en que sus clientes tomarán conocimiento de Europa en cuanto destino turístico? (S) (N). Por que? ______

20. En cuáles de los prestadores de servicios abajo indicados, cree que una reducción de precios presentaría mejores resultados en el mercado?

(A) Transporte Aéreo Intercontinental (C) Transporte Regional (E) Hospedaje (B) Alimentación (D) Entretenimiento (F) Otros. ______

21. Cuales son las mayores dificuldades/problemas/barreras para vender mas viajes/paquetes (vacaciones) para Europa?

(A) Ausencia de Información (B) Relación con Operadores Receptivos (C) Ausencia de Material Promocional (D) Formalidades de Entrada (E) Ausencia de Promocion en Geral (F) Nível de Precios (G) Otros: ______

AGÊNCIA DE VIAJE Y AGÊNCIA DE VIAJE Y TURISMO

22. Cual es en forma estimativa el volumen del mercado argentino que va a Europa? Cuantos argentinos viajan para Europa por año?

Total (aprox.) Cuanto está dirigido para negócios y cuanto para placer? 9 Negócios...... ______% 9 Placer...... ______%

23. Cuantos Argentinos viajan para América del Norte por año?

Total (aprox.) Cuantos se dirigen por negócios y cuantos por placer? 9 Negócios...... ______% 9 Placer...... ______%

EMPRESA AÉREA

Entrevistador: Día: ______

Nombre del Entrevistado: Cargo: ______

Nombre de la Empresa:

1. Primeramente nos gustaría conocer las características de sus clientes, que han viajado con destino Europa, en los últimos 3 años (99, 98, 97): a) Franja Etaria Predominante (A) Hasta 18 años (B) De 19 a 30 años (C) De 31 a 49 años (D) De 50 a 65 años (E) Más de 65 años b) Sexo Predominante (A) Masculino (B) Femenino c) Nivel de Escolaridad Predominante (Sólo 1 opción) (A) Baja: primariocompleto (B) Média: superior incompleto (C) Alta: superior completo. d) Franja de Renta Mensal Familiar Predominante (Sólo 1 opción). (A) Baja: hasta U$s 700 (B) Media-Baja: de U$s 701 a U$s 1800 (C) Media-Media: de U$s 1801 a U$s 3500 (D) Media-Alta: de U$s 3501 a U$s 6000 (E) Alta: más de U$s 6001 e) Ocupación Predominante (3 opciones en orden decresciente) No. Profesión No Profesión No Profesión No Profesión 1 Ingeniero 4 Abogado 7 Jubilado 10 Estudiante 2 Profesor 5 Comerciante 8 Administrador 11 Bancario 3 Médico 6 Funcion. Público 9 Ama de Casa 12 Empresario 13. Otros. Cuales?

f) Lugar de Residencia Predominante (Al menos 3 opciones en orden decresciente Ciudades 1 2 3 g) Tipo de Grupo Predominante (Sólo 1 opción) (A) Individual (C) Família (E) Grupo Informal (Forfait) (B) Pareja (D) Grupo Formal

EMPRESA AÉREA

2. Características de los viajes a Europa:

a) Duración Media del Viaje: ______dias

b) Motivación del Viaje Predominante y Alcance del Mercado (% de los viajes a Europa) No. Motivación (%) N o. Motivación (%) N o. Motivación (%) 1 Negócios 6 Amigos y Familiares 10 Viajes de Incentivo 2 Vacaciones 7 Cultura 11 Estudio 3 Negócios & Vacac. 8 Convenciones 12 Salud 4 Trabajo en Europa 9 Religión 13 5 Compras Otros. Cuales?

c) Época Predominante del Viaje Enero a Abril Mayo a Septiembre Octubre a Diciembre

d) Tipos Predominantes de Vacaciones

9 Cuáles son los tipos de Vacaciones más importantes en Europa (delimitar la comprensión del mercado en %)?

9 Cuáles son los tipos de Vacaciones con mayor potencial de mercado para el futuro?

Actualmente Mayor importante potencial en % futuro XVII. Vac. de sol y playa, para descansar en el mar...... ______...... XVIII. Vac. recreativas en el campo o las montañas...... ……………...... ______...... XIX. Tours por diversos países...... ______...... XX. Tour por un país específico...... …...... ______...... XXI. Tour por una ciudad en particular...... …...... ______...... XXII. Combinación de Tours y recreación...... ______...... XXIII. Vac. para practicar deportes de verano...... ______...... XXIV. Vac. para practicar deportes de invierno...... …...... ______...... XXV. Vac. culturales...... ______...... XXVI. Vac. con diversión, vida nocturna y vida social...... ……...... ______...... XXVII. Vac. para un evento especial...... …...... ______...... XXVIII. Vac. combinadas com salud...... ______...... XXIX. Vac. para compras...... ______...... XXX. Viajes étnicos / en busca raíces culturales...... ______...... XXXI. Vac. combinadas con visita a amigos y familiares...... ______...... XXXII. Otros tipos...... ______......

3. Desenvolvimiento del Mercado

EMPRESA AÉREA

a) Cual es su opinión sobre el desenvolvimento del mercado de viajes a Europa en los últimos 3 años?

Viajes a Europa tuvieron Total de viajes Viajes de negocios Viajes de placer

Aumento significativo (+ 10%) Aumento discreto (entre + 5 a 10%) Estancamiento Disminución discreta (entre – 5 a 10%) Disminución significativa (- 10%)

Porquê?______b) Cuales Grupos en los últimos 3 años...

aumentaron?______

diminuyeron?______

Sin cambios en los últimos 3 años c) Como ve el desarrollo futuro del mercado (en los próximos 3 años) en relación con los viajes a Europa?

Viajes a Europa tuvieron Total de viajes Viajes de negocios Viajes de placer

Aumento significativo (+ 10%) Aumento discreto (entre + 5 a 10%) Estancamiento Disminución discreta (entre – 5 a 10%) Disminución significativa (- 10%)

Porquê?______d) Cuáles Grupos habrán en el futuro (próximos 3 años)...

aumentado?______

disminuido?______Sin cambios esperados

EMPRESA AÉREA

4. Cuántos argentinos normalmente llevan a Europa por año?

Número total de viajeros con destino Europa...... …...... ______9 Por negocios...... ______% 9 Por placer...... ______%

5. Destinos en Europa 5.1.Cuáles son los destinos más importantes en Europa (con mayor número de viajes) para su empresa en este momento? (% de viajes a Europa) 5.2. Cuales son los países con mayor potencial del mercado para el futuro? 5.3. Para cuales países Europeos oferece conexiones directas? País 5.1. Destinos Europeos 5.2. Mayores potenciales 5.3. Oferta de más importantes del mercado conexiones directas Alemania % Áustria % Bélgica % Bulgaria % Chipre % Croacia % Dinamarca % Eslovenia % España % Estonia % Finlandia % Francia % Grécia % Holanda % Hungria % Irlanda % Islandia % Italia % Luxemburgo % Malta % Mónaco % Noruega % Polonia % Portugal % Reino Unido % República Checa % Suécia % Suíza % Turquia %

5.4. Cuales ciudades son actualmente las “Grandes Vendedoras”? ______

EMPRESA AÉREA

5.5. Aeropuertos Europeos, en los próximos años:

9 aumentará sus capacidades (S) (N). 9 Si responde si, cuáles? ______

9 comezará a operar (S) (N).

9 Si responde si, cuales? ______

6. Precios

6.1. Cuales serán los tipos de boletos para Europa más vendidos? (%) Primera clase ______% Clase ejecutiva ______% Clase económica ______% Tarifas reducidas (turística) ______%

6.2. Promedio de precios actuales a Europa? Primera clase (aprox. em US$ / pax) ______Clase ejecutiva (aprox. em US$ / pax) ______Clase económica (aprox. em US$ / pax) ______Tarifas reducidas (turística) (aprox. em US$ / pax) ______

6.3. Cual es el método de reserva más usual de sus clientes?

Directo co la Empresa Aérea Agencias de Viajes / Operadoras Internet Otros. Cuales?______

7. Cuales son los principales aeropuertos de partida para Europa? (Al menos 3 opciones en orden decresciente) (A) (C) (D) (E) (F) (G)

Cuales son los aeropuertos de llegada preferidos en Europa? (Al menos 3 opciones en orden decresciente) 1 3 5 2 4 6

Cuales son las conexiones preferidas en Europa? (Al menos 3 opciones en orden decresciente) 1 3 5 2 4 6

8. En su opinión, a los turistas qué les gusta más y qué menos de Europa?

EMPRESA AÉREA

MAS GUSTA MENOS GUSTA

9. Cómo evalúa los siguientes países de Europa en cuanto a su imagen? Y cómo evalúa los atractivos turísticos de los destinos? (Anotar por país) Imagen Atractivos en los Destinos País Positivo Negativo N/S Alto Médio Bajo N/S Alemania Áustria Bélgica Bulgaria Chipre Croacia Dinamarca Eslovenia España Estonia Finlandia Francia Grecia Holanda Hungría Irlanda Islandia Italia Luxemburgo Malta Mónaco Noruega Polonia Portugal Reino Unido República Checa Suécia Suíza Turquia

10. Cuales son, en su opinión, los principales puntos turísticos en Europa? ______

EMPRESA AÉREA

11. Cual es, en su opinión, el nivel de calidad exigido por los turistas argentinos cuando viaja Europa?

Alto Médio Bajo Justifique: Emp. Transporte

Hospedaje

Alimentación

Recreación

12. Conoce las Oficinas de Representación / Promoción de Turismo de los Países Europeos en Argentina? (S) (N). Si la respuesta es si, cuales:______

12.1Cuales son sus expectativas en relación a las Oficinas de Representación / Promoción de Turismo y qué tipo de actividades podrían desarrollar conjuntamente? ______

13. Cual es, actualmente, el medio más eficiente para la promoción de Europa en Argentina?

(A) Publicidad o reportaje en medios impresos (Diarios y Revistas de gran circulación) (B) Publicidad o reportaje en medios televisivos y radio (C) Publicidad o reportaje en medios electrónicos (internet) (D) Material para distribución en agencias (E) Material para distribución en operadoras de viajes (F) Posters y Outdoors (G) Guías turísticos (H) Filmes y vídeos (I) Valija Directa (J) Otros. Cuales? ______

14. Cuales son las mayores dificultades encontradas en la organización de viajes a Europa?

(A) Ausencia de Información (B) Relación con Operadores Receptivos (C) Ausencia de Material Promocional (D) Formalidades de Entrada (E) Ausencia de Promoción en Geral (F) Nivel de Precios (G) Otros: ______

15. Cual es el volumen estimado del mercado argentino que viaja a Europa? Cuantos argentinos viajan a Europa por año?

Total (aprox.) Volumen direccionado a negocios y volumen direccionado a placer: 9 Por negocios...... ______% 9 Por placer...... ______%

16. Cuantos argentinos viajan a América del Norte por año?

EMPRESA AÉREA

Total (aprox.) Que volumen del mercado está direccionado para negocios y que volumen para placer? 9 Por negocios...... ______% 9 Por placer...... ______%

EMPRESA AÉREA