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TARGET MARKET: USA
MARKETING STRATEGIES FOR TOURISM DESTINATIONS
A COMPETITIVE ANALYSIS
Marketing Strategies
For Tourism Destinations
A Competitive Analysis
Target Market - USA
A report produced for European Travel Commission (ETC)
by Tourism Development International
Brussels, 2014
Marketing Strategies for Tourism Destinations. Target market: USA
Published and printed by:
European Travel Commission
Rue du Marché aux Herbes, 61
1000 Brussels, Belgium
Website: www.etc-corporate.org
Email: [email protected]
This report was compiled and edited by:
Tourism Development International
on behalf of the European Travel Commission.
The designations employed and the presentation of material in this publication do
not imply the expression of any opinion whatsoever on the part of the European
Travel Commission concerning the legal status of any country, territory, city or
area, or of its authorities or concerning the delimitations of its frontiers or boundaries.
Cover photo: City of Chicago. Aerial view of Chicago downtown at twilight from
high above; Copyright: Andrey Bayda
Copyright © 2014 European Travel Commission.
ISBN No: 978-92-95107-04-5
Marketing Strategies for Tourism Destinations. Target market: USA
Contents
Forewordi
Introduction1
a. Defining the Competitive Environment for Destination Europe
2
b. Destinations in the Global Market Place: a Comparative Analysis2
Summary of United States Market Study10
1.
The United States Outbound Travel Market15
1.1. A Recovering Market15
1.2. United States Tourism to Europe 18
1.3. Characteristics of the United States Traveller21
1.4. Drivers of Growth25
1.5. Successful Destination Strategies27
2.
Travel Destinations in the United States Outbound Market29
2.1. Visa Regimes29
2.2. Air Connections31
2.3. Political, Economic and Socio-Cultural Links35
2.4. Consumer Assessment (TripAdvisor)37
3.
Profile of Europe’s Main Competitors in the United States
39
3.1. Destination Marketing Organisations39
3.2. The Australian Tourism Sector40
3.3. The Brazilian Tourism Sector46
3.4. The People’s Republic of China Tourism Sector
50
3.5. The South African Tourism Sector55
3.6. United States Cities Tourism Sector61
3.7. Conclusions78
4.
Marketing Strategy and Activities of Tourism Australia and South Africa Tourism 80
in the United States
4.1. Tourism Australia’s Marketing Strategy and Activities in the United States 80
4.2. South Africa Tourism Marketing Strategy and Activities in the United States86
5.
Key Factors in Destination Marketing in the United States88
5.1. Market Perceptions88
5.2. Marketing Performance and Opportunities90
Appendices93
Appendix 1
European and Competing Destinations WEF TTCI and Bloom 94
Country Brand Rankings
97
Appendix 2 Weekly City-to-City Flights from Main United States Centres
Appendix 3
TripAdvisor Ratings 101
Bibliography and References103
Appendix 4
Marketing Strategies for Tourism Destinations. Target market: USA
Acknowledgments
This report was prepared by Peter Mac Nulty and Robert Cleverdon of Tourism
Development International on commission to the European Travel Commission
(ETC), and was carried out under the supervision of Ms Valeria Croce, Head,
Research and Development Department at ETC.
The report is part of a series of fact-finding reports on the tourism strategy developed by destinations competing with Europe in select long haul markets. The
project was realised as part of the European Commission and ETC joint initiative
“Destination Europe 2020”.
We would like to acknowledge the support and contributions of the many ETC
members, marketing organisations and tour operators associations who contributed to the realisation of this report.
We also gratefully acknowledge the support of ETC partners, who committedly
contributed to the realisation of this project. A special note of thanks to Mr Charlie
Ballard, Director of Advertising Research at TripAdvisor, Mr Xu Jing, Regional
Director for Asia and the Pacific at UNWTO, and Mr Daniel Velasco, Consultant
at Amadeus Travel Intelligence Unit, for their contributions.
Marketing Strategies for Tourism Destinations. Target market: USA
Foreword
In an increasingly vibrant landscape, marked by new players, technological innovation and rapidly changing consumers, the need arises for European destinations to closely monitor others’ effort to win market shares in the global tourism
market.
This compilation of best practice examples in tourism and promotion strategies
is meant to provide insights relevant to ETC and its member countries through a
better understanding of the environment in which they operate.
This series of reports provides insights into the strategic vision and the operational actions tourism destinations worldwide are developing to attract an increasing number of visitors from the most promising source markets. This fact-finding
research offers a bird’s-eye view of the competitive environment, and a portrait
of the tourism strategy and marketing activities of competing destinations. References to official documents and publicly available reports facilitate access to
detailed information, for those interested in achieving a higher level of knowledge. For Europe’s strongest competitors, portraits are enriched with first-hand
information gathered through personal interviews with NTOs marketing directors,
representatives of the travel trade and experts.
The common structure of reports facilitates cross-market comparisons. Key results are synthesised in a highly visual executive summary, conceived for dissemination to the public at large.
We trust these reports will become for ETC and its members an important tool
to identify key opportunities and challenges, and to strengthen their comparative
advantage in the global tourism market.
Executive Unit
European Travel Commission
i
Marketing Strategies for Tourism Destinations. Target market: USA
Introduction
This report’s aim is to collect meaningful knowledge about the tourism strategy of
destinations competing with destinations in Europe in select long haul markets.
This study is part of a series of publications, which offer an overview of the environment, in which European tourism destinations operate, and a profile of the
tourism strategy and marketing activities of competing destinations. A listing of
official documents, publicly available reports and media features is provided in an
appendix and through the footnotes to permit more detailed examination of the
information presented and issues raised. Each report also provides first-hand information on a selection of competing destinations, gathered through interviews
with NTOs’ marketing directors, travel trade and experts.
This project focuses on countries competing with European destinations in high
potential long haul markets, namely Brazil, Canada, China, Japan, Russia and
the United States. In this analysis, Europe is defined as the 33 countries which
are members of the European Travel Commission plus France, the Netherlands
and the United Kingdom.
The analysis followed a three step approach.
The first step was to identify the key markets for Europe and the primary destinations competing with Europe in those markets. These markets are presented
in Figure 1.
The second step consisted of assessing strengths and weaknesses of destinations, which are significant competitors to Europe in the six target markets. The
assessment has been based on the following indicators:
•
•
•
•
•
•
•
•
the World Economic Forum Travel and Tourism Competitive Index
(WEF TTCI),
travel trade interviews and expert opinion,
visa regimes and other visitor entry requirements,
air connectivity and capacity,
price competitiveness,
political, economic and socio-cultural links,
destination tourism development policy,
destination tourism marketing strategy.
The third step consisted of identifying those destinations which are the strongest
competitors for Europe in each market, i.e. destinations which attract significant
volumes of travellers and are actively investing in increasing their share in the
market. A detailed profile of the organisations in charge of promoting inbound
tourism to these destinations has been compiled. Information about the strongest
competitors has been collected by the means of personal interviews as well as
from secondary sources.
1
Defining the
competitive
environment for
Destination Europe
Marketing Strategies for Tourism Destinations. Target market: USA
a. Defining the Competitive Environment For Destination Europe
Experts from the European Travel Commission (ETC) Executive Unit, Market
Intelligence Committee and Operation Groups, as well as experts from Tourism
Development International (TDI), were involved in a two-stage process to define
the competitive environment, in which European destinations operate.
In the initial stage, those long haul markets which show the best prospects for Europe as a tourism destination were identified. Based on a compound analysis of
the relative importance of, and growth prospects for a large number of markets,
six were identified as priorities for Destination Europe.
The experts were then asked to list countries which are actively targeting those
markets as tourism destinations. These competing destinations are defined as
countries which are currently investing in tourism promotion and which already
receive considerable volumes of tourists from the selected markets. The outcome
of experts’ evaluation of the competitive environment is reported in Figure 1.
Figure 1: Market: Destination Pairings
Markets
Brazil
Canada
China
Japan
Russia
United
States
Competitor
1
2
3
4
USA
Mexico
Australia
Russian
Federation
5
6
7
USA /USA Mexico
large cities
China
South
Africa
USA
Australia
Russian
Federation
Rep of
Korea
Thailand
Malaysia
New
Zealand
USA
Rep of
Korea
Thailand
Malaysia
Egypt
China
Dubai
United
States
Thailand
China
Brazil
Australia
USA large
cities
South
Africa
b. Destinations in the Tourism Global Market Place: a Comparative
Analysis
An overall assessment of the comparative resources and capabilities of the selected destinations was undertaken based on publicly available international indicators, which monitor aspects crucial to determine their strength and weaknesses as tourism destinations.
Factors and policies
conducive of
travel and tourism
development
The World Economic Forum Travel and Tourism Competitiveness Index (WEF
TTCI) provides a broad assessment of a large number of characteristics and features that facilitate the development and functioning of tourism in a country. The
survey assembles results for 79 pillars under three main “sub-indexes”:
1. Travel & Tourism Regulatory Framework,
2. Business Environment & Infrastructure,
3. Travel & Tourism Human, Cultural and Natural Resources.
2
Marketing Strategies for Tourism Destinations. Target market: USA
These illustrate the relative success of destinations in creating conditions to attract investment in tourism development. Figure 2 shows the ranking of the 13
destinations according to each of the sub-indexes and relative to each other.
The rankings in columns i to iv are based on a total of 140 countries worldwide
included in the WEF TTCI survey. The rankings in column v are within the set of
13 competitor destinations.
Figure 2: WEF TTCI Rankings of Competing Destinations, 2013
Country
Competitiveness Subindex
Travel &
Tourism
Regulatory
Framework
Travel & Tourism
Business
Environment &
Infrastructure
Travel & Tourism Overall
Human, Cultural Ranking
& Natural
Resources
Ranking
within 13
Competing
Destinations
(i)
(ii)
(iii)
(iv)
(v)
Australia
23
25
4
11
2
Brazil
82
76
12
51
10
China
71
63
13
45
9
Dubai (as
UAE)
45
9
35
28
5
Egypt
86
77
84
85
13
Rep of Korea
38
17
20
25
4
Malaysia
55
41
17
34
6
Mexico
83
61
15
44
8
New Zealand
4
12
22
12
3
Russian
Federation
92
46
58
63
11
South Africa
81
59
57
64
12
Thailand
76
44
23
43
7
United States
44
2
1
6
1
Source: TDI analysis of WEF TTCI report
At a country level, European destinations (both ETC member countries and other
countries in Europe) occupy the top positions of the WEF ranking - see Figures
24 to 27 in Appendix 1. The leading five positions in the overall ranking are European i.e. Switzerland, Germany, Austria, Spain and the United Kingdom. A further three European countries are placed in the band of 6th to 15th (i.e. France,
Sweden, the Netherlands), and 15 rank in the top quarter up to 35th place. Six of
the 13 competing destinations examined in the study achieved a ranking in the
top quarter of all destinations worldwide i.e. the United States 6th, Australia 11th,
New Zealand 12th, Republic of Korea 25th, Dubai (based on the data for the UAE
as a whole) 28th and Malaysia 34th.
3
Marketing Strategies for Tourism Destinations. Target market: USA
Figure 3 shows the overall ranking position for four European countries (France,
Italy, Spain and the United Kingdom), selected as benchmarks, and the 13 competing destinations.
The comparative analysis of the resources and capabilities of the 13 destinations
identified as competitors at sub-index level (see Appendix 1) suggests what follows:
High ranking: United States, Australia and New Zealand. These countries
show strengths in the following areas:
•
•
•
New Zealand in respect of its travel and tourism regulatory framework,
the United States for the travel and tourism business environment
and infrastructure, and for travel and tourism human, cultural and natural resources,
Australia for travel and tourism human, cultural and natural resources.
The United States fares less well in respect of the travel and tourism regulatory
framework, and lower rankings (though still in the top 25 globally) are recorded by
Australia in respect of the business environment and infrastructure, and the regulatory framework, and by New Zealand for human, cultural and natural resources.
Mid ranking: Republic of Korea, Dubai (UAE), Malaysia, Thailand, Mexico,
China, Brazil. Six of these seven destinations, the exception being Dubai, score
more highly than their overall ranking in respect of human, cultural and natural
resources. The weaknesses for this group of destinations are in the regulatory
framework (i.e. Mexico, Brazil, Thailand, China) and the business environment
and infrastructure (i.e. Brazil, China, Mexico).
Mid-to-low ranking: Russian Federation, South Africa. Both countries’ rankings are pulled down by their low assessment in respect of travel and tourism
regulatory framework. In the case of South Africa, this is due to low performance
on safety and security, and health and hygiene; while for the Russian Federation,
the weaknesses are more widespread across four of the five pillars in the sub-index.
Low ranking: Egypt. Its weak positioning reveals in each of the three sub-indexes suggests that this destinations doesn’t have an overall comparative advantage in respect to destinations in Europe, but may be attractive in specific
markets and segments.
4
Marketing Strategies for Tourism Destinations. Target market: USA
Figure 3: WEF TTCI Overall Rankings
Source: WEF-TTCI, 2013, 140 destinations
Another competitive edge for destinations is the value of their tourism offer. While
the perceived value of tourism services is a subjective construct that varies across
markets, segments and experiences, an assessment based on standardised indices can highlight destinations’ comparative advantages related to cost-related
aspects.
The WEF TTCI survey examines components that impact on price levels at a
destination, including taxes levied on ticket sales, airport charges and fuel costs,
as well as general taxation levels. The overall price competitiveness of destinations is derived from these five factors. The WEF TTCI also provides a hotel price
index, as a proxy of price competitiveness from a consumer perspective.
The WEF TTCI’s rank order in terms of overall travel and tourism price competitiveness and the hotel price index for destinations competing with Europe are
shown in Figures 4 and 5. It found that Malaysia and Thailand are the most price
competitive destinations, although the United States fares well on hotel prices;
Australia is the least competitive destination in terms of prices.
By comparison, all European destinations are in the lowest tercile (ranked 100th
or lower), largely because of travel and fuel taxes. They are more competitive in
respect of hotel prices, with Spain featuring 42nd and the United Kingdom 53rd
while other European countries score less well, ranging from the Baltic states of
Lithuania, Latvia and Estonia (all in the top 12 of hotel price competitiveness) to
Switzerland, Serbia and France all ranked worse than 100th in respect of hotel
prices. See details in Appendix 1.
5
The value of tourism
products across
destinations
Marketing Strategies for Tourism Destinations. Target market: USA
Figure 4: Destination Travel & Tourism Price Competitiveness: 13 Primary
Competitors to Europe
Source: WEF-TTCI, 2013, 140 destinations
Figure 5: Destination Travel & Hotel Price Competitiveness: 13 Primary
Competitors to Europe
Source: WEF-TTCI, 2013
6
Marketing Strategies for Tourism Destinations. Target market: USA
The rating of a country as a brand in the perception of prospective visitors is
an important travel decision making criterion in respect of choice of destination.
The impressions created in the minds of consumers in travel markets around the
world are created through a large number of influences. The Bloom Consulting
Group in its annual Country Brand Ranking1 identifies four variables as contributing to a destination’s image and thereby establishing its tourism brand rankings
i.e.
•
•
•
•
tourism economic receipts and growth (a first indicator of a country’s
appeal),
the destination products and experiences researched online (measuring its online appeal),
the country’s brand strategy (assessing the accuracy and effectiveness of its communication efforts),
official website and social media performance.
The results of the 2013 Country Brand Ranking of 187 countries and territories
are outlined in Figure 6. It shows that the United States has the strongest tourism
brand followed by Thailand, Australia, China, Malaysia, the Republic of Korea
and Mexico which all feature in the top 20 destinations. None of the 13 primary
competitors to Europe across the six selected markets is ranked lower than 42nd
(Brazil). Nine European countries are ranked in the leading 20 destinations, led
by Spain, France, the United Kingdom and Italy. Full details for all European
countries are presented in Appendix 1.
Figure 6: Country Tourism Brand Ranking: Primary Competitors to Europe
Source: Bloom Country Brand Ranking Tourism Edition 2013
1 Bloom Consulting Country Brand Ranking Tourism Edition 2013. http://bloomconsulting.com/sites/default/files/files/Bloom_Consulting_Country_Brand_Ranking_
Tourism_2013.pdf
7
Country Brand
Rankings
Marketing Strategies for Tourism Destinations. Target market: USA
The competitive strength of any country as a tourism destination is a combination
of many factors, some of which are fixed or otherwise factual while others are
subject to the influence of both product developments and marketing and promotional activities. No destination is outstandingly strong or weak across all parameters. The strongest individual destination is the United States, rated as having the
leading tourism brand and achieving 6th place in the global WEF TTCI survey of
all tourism development factors (behind five European countries).
The power of strong tourism industries combined with market-driven tourism
product/experience development and well-targeted marketing is illustrated by
comparing rankings on the WEF TTCI broad tourism development and facilitation
survey (that does not take account of destination marketing) and the Bloom Consulting Group destination brand ranking (which features destination marketing elements as a key criterion). This is borne out particularly in the cases of Thailand,
China, Malaysia, Mexico, Egypt, South Africa and the Russian Federation where
weaknesses in either or both of the regulatory framework, and business environment and infrastructure, may be compensated for by price advantages and the
appeal of the countries’ tourism product offering. Figure 7: Country Tourism Rankings
Country
Bloom Country
Brand Ranking
Overall WEF TTCI
Ranking
1
6
8
10
15
18
19
22
25
28
30
38
42
6
43
11
45
34
25
44
85
28
64
63
12
51
2
3
4
5
7
11
14
4
2
7
5
26
3
1
Europe’s Competitors
United States
Thailand
Australia
China
Malaysia
Rep of Korea
Mexico
Egypt
UAE - Dubai
South Africa
Russian Federation
New Zealand
Brazil
European Benchmarks
Spain
Germany
France
United Kingdom
Italy
Austria
Switzerland
Sources: WEF TTCI survey, and Bloom Country Brand Ranking Tourism Edition 2013
8
Marketing Strategies for Tourism Destinations. Target market: USA
Information Note - Exchange Rates The monetary values quoted in the report are taken from the sources referenced,
including amounts stated in the source document in US dollars. In all cases,
conversion has been made to Euros. The conversion rates used are the average
rates across the year between the local currency (or US dollar where that is the
currency stated in the source document) and the Euro for the year of the data.
For future forecasts/targets, the rate between the local currency and the Euro as
at June 2014 have been used.
9
Summary of USA Market Study
Marketing Strategies for Tourism Destinations. Target market: USA
OUTBOUND TRAVEL PERFORMANCE AND PROSPECTS
KEY DEMOGRAPHIC AND ECONOMIC DATA 20132
Population
316.3 mn
GDP Data
US$
Current Prices
16.8 tn €12.4 tn
GDP PP per capita Current Prices
Int$
53,101
€39,330
USA’S PERFORMANCE IN INTERNATIONAL TOURISM
United States outbound travel
62 mn in 2013
United States citizens are the second
highest spenders on international travel
2004-2013
up 1.4%
2nd place behind China
Virtually 0 growth in
outbound trips
Over half are cross-border trips
to Canada and Mexico
by the UNWTO
United States citizens’ spending
on international travel
(excluding international transport)
Overseas trips taken by United States
residents by air (i.e. excluding land
crossings to Canada and Mexico)
29 mn in 2013
US$ 104.7
up 4.3% on 20123
up 1.8%
bn €78.8 bn in 2013
OUTBOUND DESTINATIONS VISITED BY USA RESIDENTS
Over 50%
of US outbound travel
is to neighbours Canada and Mexico
Destinations receiving 1mn
in 2012
Europe
- United Kingdom
- France
- Italy
- Germany
- Spain
arrivals
Other Countries
- Jamaica
- Dominican Republic
- China
- Bahamas
- India
A weak performance for
Europe as a whole
2
3
World Economic Outlook Database, October 2013, IMF.
UNWTO World Tourism Barometer, Volume 12, Statistical Annex, August 2014.
10
Marketing Strategies for Tourism Destinations. Target market: USA
GROWTH DRIVERS
The performance of the United States economy and the
consequent impact on consumer confidence.
The impact of destinations’ use of digital technology and
social media in promotions.
PURPOSE OF VISIT
Consumers’ perceptions of how well destinations can
fulfil the needs of different market segments, leading to
how high United States travellers in those segments rank
a destination on their list of future places to visit.
TRAVEL ARRANGEMENTS
47%
49%
29%
21%
15%
16%
5%
14%
Personal
Independently
Partially or fully guided trip
VFR
Business
Cruise
Education
All-inclusive resort
OUTBOUND TRAVEL AND COMPETITIVE ENVIRONMENT
Success in the United States outbound tourism market will be achieved by destinations that cater for the increasing numbers of United States visitors placing a high priority on a deep, authentic and self-fulfilling experience from their chosen
destination. Such destinations will offer travellers value-for-money, interesting and diverse experiences, and unique tourism
products,
This will require attention to be paid to:
1. Creating and sustaining the image in the market of an “aspirational destination”,
2. Creating a set of tourism products/experiences that have diversity and authenticity, with the opportunity for active
participation – all geared to providing a meaningful and fulfilling trip as increasingly demanded by the United
States traveller,
3. Extensive investment in, and highly effective use of, online/digital and mobile technology, online advertising and
social media marketing,
4. Making it easy to obtain information on the destination, and for that information to be personally relevant to each
potential visitor; and making it easy to book – e.g. through digital linkage,
5. Addressing concerns about prices, safety and ease of travel – all of which can be addressed through digital
technology,
6. Facilitating the ready availability of different components of the destination so that: combined business and leisure
trips can be created and undertaken; and multi-generational travel can be further stimulated – again, predominantly, through online means.
Europe’s primary competitors across all aspects of tourism according to the WEF TTCI are other industrialised nations e.g.
United States, Australia, New Zealand, Republic of Korea,
In terms of overall price competitiveness in travel and tourism, European destinations are perceived as among the world’s
most costly.
11
Marketing Strategies for Tourism Destinations. Target market: USA
PRINCIPAL COMPETING DESTINATIONS
All four overseas destinations are making major efforts to support and increase the
competitiveness of their travel and tourism industries by:
1. Stressing the authenticity of their natural and cultural heritage in developing
brand images and positioning. This approach is used effectively by both
Australia and South Africa in the United States market through television
programme sponsorship,
2. Paying equal attention to established source markets and newly emerging
ones in order to achieve a balanced set of markets. Such an approach is
well-illustrated by the five-tier ranking of tourist markets operated by Tourism
Australia,
3. Seeking a market: product “matching” approach that provides high quality
experiences in line with the needs and expectations of different market
segments based on detailed research and analysis of such markets and
segments. Australia is at the forefront of tailoring its marketing strategy on the
basis of detailed understanding of the requirements and preferences of
consumers in its target markets through the Consumer Demand Research
project. The United States outbound market is a priority market for all destinations studied. Each of the four competitor destinations has tourist offices in
the United States, with Brazil having three such operations and China two,
Five destinations are
shortlisted as
significant competing
destinations to Europe
in the United States
outbound market:
Australia, Brazil,
China, South Africa
and United States
large cities
4. Focussing on providing a diverse and broad set of experiences designed to
appeal to a wide cross-section of the United States travel market through the
presentation and communication of the various elements of the destination’s
tourism product offer. This is done in ways that resonate with the values and
requirements of the different segments e.g. Los Angeles targets both the
funseekers through its “endless entertainment” positioning and the culinary
enthusiasts via its participation in the 14-day dineLA Restaurant Week,
5. Showing a significant and continuing switch away from traditional advertising
and promotional methods to electronic digital marketing systems and activities. This is a particularly important strategy for destinations located at
distance from the United States and for which knowledge about their attractions among the United States travelling public is relatively undeveloped.
COMPETING DESTINATION ORGANISATIONS
Australia, Brazil, China, and South Africa are each seeking to develop the United
States traveller market. Their approach is to build upon the resources and attractions
for which they are renowned, and increasingly broaden prospective travellers’
awareness and knowledge of the features over and above the iconic and well
established. This is particularly the case of Australia, Brazil and South Africa,
Focussing strongly on digital marketing and travel trade support activities, Tourism
Australia is building its reputation as a leading destination on all factors that United
States citizens consider when choosing a destination. The reach and impact of the six
Oprah Winfrey programmes filmed in Australia has been a major success in achieving
these goals,
South Africa Tourism works closely with the United States travel trade and has
boosted United States consumers’ awareness of the range of both natural and
cultural resources it has through partnerships with the United States television
programmes The Batchelor and Jeopardy!,
South Africa has successfully built on the increased awareness of the destination
generated by the 2010 soccer World Cup, and Brazil is planning to do likewise in
respect of the 2014 soccer World Cup and the forthcoming 2016 Summer Olympics.
12
South Africa has
successfully built on
the increased
awareness of the
destination generated
by the 2010 soccer
World Cup, and Brazil is
planning to do likewise
Marketing Strategies for Tourism Destinations. Target market: USA
COMPARATIVE ASSESSMENT: EUROPE, AUSTRALIA, SOUTH AFRICA
The image of Europe in the United States is resilient, renowned and admired for its
heritage, friendly people and cultural diversity. Even amongst the younger generation
of European ancestry, whose affinity with Europe is much looser than their parents’
generation and who could have been expected to be less interested in Europe –
Europe is widely seen as an aspirational destination,
While older generations continue to make repeat visits, for many younger United
States citizens (e.g. “Generation Y” / “Echo Boomers” – aged 18-30) Europe offers a
primarily cultural and unique experience that meets their holiday requirements,
either on a one-off basis (i.e. as a “must- see” destination) or from time to time (as
somewhere worth re-visiting, probably to different countries each trip),
It is clear that all destinations are seeking to broaden their appeal to the United States
traveller, focussing both on their cultural heritage and natural environment, and
stressing their modernity as well as their history and traditions. By challenging
traditional perceptions, broadening people’s understanding of the destination, and
stimulating interest in it, marketing can both provide a more extensive menu of travel
opportunities to those who have been to the country before. It can also generate
demand from those who were not spurred into action from their previously-held
opinions and attitudes towards the destination. All destinations have campaigns to
broaden United States citizens’ perceptions combining the traditional and
contemporary, thereby attracting a wider number of market segments seeking
different sets of experiences,
The prime opportunities in the United States outbound travel market in the coming
decade will be through distinctive and distinct tourism offerings. The key factor in the
United States market will be the compilation of easy-to-put-together and
personalised itineraries that enable the tourists to gain privileged insights and
immerse themselves culturally in the destination thereby gaining self-fulfilment. The
need for direct engagement with the features and activities in the destination is
important for United States travellers whether on trips focussed on cultural heritage
or natural environment,
The number of destinations offering such a range of tourism experiences with
extensive cultural diversity is growing. For example, Central and South American
countries are actively targeting the United States market focussing on their exoticism.
Europe maintains a competitive advantage, however, with greater cultural diversity in
a small geographic area, better connections and less border formalities,
The opportunities for Europe to remain as a preferred destination for the United
States outbound tourist are based both on the established visitor patterns and newer
forms that incorporate more countries within Europe and feature different things to
see and do.
13
It is clear that all
destinations are
seeking to broaden
their appeal to the
United States traveller,
focussing both on their
cultural heritage
and natural
environment, and
stressing their
modernity as well as
their history and
traditions
Marketing Strategies for Tourism Destinations. Target market: USA
14
Marketing Strategies for Tourism Destinations. Target market: USA
The United States
Outbound Travel Market
1
1.1 A Recovering Market
United States outbound travel rose by 1.4% in 2013 to a level of 62 million trips,
with over half being made across the borders to Canada to the north and Mexico
to the south. Overseas trips taken by United States residents by air (i.e. excluding
land crossings to Canada and Mexico) totalled 29 million in 2013, a rise of 1.8%
over 20124. The pattern of growth has been mixed over the past decade with the
levels of 2007 (i.e. 64 million total trips with 31 million of these to overseas destinations) still standing as the record5.
Over half of
outbound trips from
USA are cross
border
The average annual growth for the past decade (2004 – 2013) has been virtually
zero for all trips and less than 1% for overseas trips by air. Overseas trips fell in
each successive year from 2008 – 2011, in response to the economic and financial crisis, before recording growth of 5% in 2012 and 2% in 2013. Figures for
the first two months of 2014 indicate that the recovery is continuing with a rise
of 8% in all outbound trips and nearly 5% in overseas air trips by United States
residents6. The United States was the world leader until 2012.
Average annual
growth for the past
decade has been
virtually zero
Figure 8: United States Citizen Travel to International Regions, 2013
Destination Region
US Citizen Air
Trips (mn)
% market share
% change 2013/2012
Europe
11.4
18.5
1.5
Caribbean
6.5
10.6
1.7
Asia
4.3
7.0
6.3
South America
1.7
2.8
1.9
Central America
2.5
4.1
4.2
Oceania
0.6
0.9
4.5
Middle East
1.6
2.6
5.3
Africa
0.4
0.6
(3.5)
Total overseas by air
29.0
47.1
1.8
Mexico – all modes
20.5
33.4
1.2
Source: US Citizen Travel to International Regions, Office of Travel and Tourism Industries (OTTI),
International Trade Administration (ITA), US Department of Commerce
4 US Citizen Travel to International Regions, 2013. http://travel.trade.gov/view/m2013-O-001/index.html
5 2012 United States Resident Travel Abroad. National Travel and Tourism Office
NTTI), ITA, US Department of Commerce
6 US Citizen Travel to International Regions, 2014. http://travel.trade.gov/view/m2014-O-001/index.html
15
Marketing Strategies for Tourism Destinations. Target market: USA
Data Collection Methodologies
The United States authorities publish two series of data for overseas trips:
1. Air trips direct from United States port to destination region
port,
2. Trips involving a visit of one or more night.
For destinations without extensive direct flights, the overnight trips figures
can be higher than the direct flight data series; while for regions with a good
supply of direct flights (e.g. Europe), the overnight stay visits may be lower
than the air trips data, as these may include travellers transiting through Europe to their ultimate destination.
Outbound travel
spending has risen
by around a quarter
in the past decade
United States travellers spending on international travel (excluding international
transport) is estimated by the UNWTO at US$104.7 billion (EUR78.8 billion) in
2013, a rise of 4.3% over 20127. Outbound travel spending has risen by around a
quarter in the past decade, but by only half that rate when allowances are made
for inflation and the decline of the US dollar.
Per capita expenditure outside the United States on all overnight trips to overseas destinations was S3,018 (EUR2,320) in 2012, while for leisure and VFR
trips the level was slightly lower at US$2,634 (EUR2,026)8.
USA citizens are
the second highest
spenders on
international travel
United States citizens are the second highest spenders on international travel,
ranked in 2nd place by the UNWTO, behind only China, which took over as leading nation in tourism expenditure from the United States in 20129.
Over half of United States citizens’ outbound travel is to the neighbouring countries of Canada and Mexico. In 2012, the 20 million United States travellers’
spending in Mexico totalled US$10.6 billion (EUR8.1 billion) while 12 million in
Canada spent US$7.6 billion (EUR5.8 billion)10.
Next after Mexico and Canada in 2012 come (in order) the United Kingdom,
Dominican Republic, France, Italy, Germany, Jamaica, China and Spain, each of
which recorded in excess of 1 million United States citizens’ trips. The average
length of stay for all overseas destinations is 18.3, while the median duration is
10 nights.
7 Values refer to expenditure measured in local currencies, current prices. UNWTO
World Tourism Barometer, Volume 12, Statistical Annex, August 2014.
8 Profile of US Resident Travelers Visiting Overseas Destinations: 2012 Outbound.
NTTI, ITA, US Department of Commerce
9 UNWTO World Tourism Barometer, Volume 12, August 2014
10 United States Travel and Tourism Exports, Imports and the Balance of trade: 2012.
OTTI, ITA, US Department of Commerce http://travel.trade.gov/outreachpages/
download_data_table/2012_International_Visitor_Spending.pdf
16
Marketing Strategies for Tourism Destinations. Target market: USA
Figure 9: Top 10 Outbound Destinations Visited by United States Residents by
Air in 2013
1. Mexico
3. United Kingdom
5. Italy
7. Germany
9. China
6.2 mn (air arrivals only)
2.6 mn
1.8 mn
1.7 mn
1.1 mn
2. Canada
4. France
5. Jamaica
8. Dominican Rep. 10. Bahamas
2.9 mn
2.0 mn
1.8mn
1.6mn
(NB total arrivals all means of
transport 20.9 mn)
(air arrivals only)
(NB total arrivals all means of
transport 12.0 mn)
(note actual figure
1,799,000)
(note actual figure
1,799,000)
1.1mn
Source: All destinations except Dominican Republic and the Bahamas: 2013 United States Resident Travel Abroad. US Department of Commerce, International Trade Administration, Industry &
Analysis, National Travel and Tourism Office.
http://travel.trade.gov/outreachpages/download_data_table/2013_US_Travel_Abroad.pdf
Dominican Republic: Central Bank of the Dominican Republic. http://www.bancentral.gov.do:8080/
english/statistics.asp?a=Tourism_Sector
Bahamas: Bahamas Ministry of Tourism Department of Research and Statistics. http://www.tourismtoday.com/home/statistics/stop-overs/
In the period since 2003, the notable changes in the composition and profile of
the leading destinations for United States citizens have been11:
•
•
•
•
•
strong growth to areas with relatively low 2003 base volumes e.g. the
Middle East up two-and-a-half-times, Africa almost double,
a number of countries, characterised by one or a combination of expanding economies (for business travel), strong VFR links, and a
vacation product preferred by United States citizens, have recorded
a more than twofold rise in trips between 2003 and 2012 i.e. India,
China, the Philippines, Dominican Republic,
steady growth in line with, or slightly above, the overall average to
Mexico, other winter sun destinations (apart from the Dominican Republic), Central America and many European destinations,
a weak performance for Europe as a whole with the sharpest falls being recorded in the United Kingdom and the Netherlands, but above
average growth in Greece, Austria, Spain and Ireland,
a sharp decline in trips to Canada (down 16% over the period), Brazil,
Japan and the Oceania region.
11 2012 United States Resident Travel Abroad. NTTI, ITA, US Department of
Commerce
17
Europe has recorded
a weak performance
since 2003
Marketing Strategies for Tourism Destinations. Target market: USA
Figure 10: Outbound United States Residents Tourism Growth Trends, 2003 2012
-1%
+26%
Caribbean
South America
Central America
+90%
+154%
+38%
-38%
Europe
Africa
+1%
Middle East
Asia
+25%
Oceania
Source: 2012 US Resident Travel Abroad (one or more nights). US Department of Commerce,
Industry and Analysis, National Travel and Tourism Office. December 2013
The USA travel
market is recovering
from the economic
crisis
The United States travel market is recovering from the recent economic and financial crisis. International travel incidence rates have been rising by three percentage points to 76% over the past three years. United States citizens are cautiously optimistic about future international prospects, with the market outlook at
its highest level since 200812.
Further signs of recovery are reductions in the proportions of United States citizens citing barriers to travel. While costs remain the main concern, the number
of travellers mentioning this has fallen from 47% in 2012 to 42% in 2013. Safety
concerns remain the 2nd most likely factor to limit international travel. The weakness of the economy was raised by 25% in 2013, down from 31%; and the number of travellers saying “nothing could prevent international travel” rose to 12% in
2013 from 9% a year earlier13.
USA international
travel is forecast to
grow at an annual
rate of 4.5% to 2019
United States international travel (based on aggregate arrivals) is forecast to
grow at the average annual rate of 4.5% between 2014 and 2019, with long haul
(i.e. everywhere outside North America) expanding at the faster rate of almost
6%, serving to increase long haul’s share by three percentage points to 66%14.
1.2 United States Tourism to Europe
Europe’s share of
USA overseas air
trips has declined by
six percentage points
between 2003 and
2013
United States citizens’ air trips to Europe (measured as non-stop from United
States port to European port) totalled 11.4 million in 2013, a 1.5% rise over 2012.
Between 2007 and 2013, the level has declined by 14% from 13.3 million. In consequence, Europe’s share of all United States overseas air trips has declined six
percentage points from 45% in 2003 to 39% in 2013.
12 Global Tourism Watch: 2013 US Summary Report. http://en-corporate.canada.
travel/sites/default/files/pdf/Research/Market-knowledge/Market-profile/US/gtw_
summary_report_us_2013.pdf
13Ibid
14 European Tourism in 2014: Trends and Prospects (Q1 2014). Tourism Economics.
May 2014. ETC
18
Marketing Strategies for Tourism Destinations. Target market: USA
This trend is confirmed in the levels of visitation involving a stay of at least one
night in Europe15. In 2013 United States citizens made 10 million such trips to
Europe, over two million less than in the record year of 2007 when 12.3 million
overnight trips were recorded. The 2007 level had risen slowly from 2004 after a
strong growth of 13% in that year over 2003. Europe’s market share of overseas
one night plus trips fell from 42% in 2003 to under 36% in 2013.
Despite this reduction in share, Europe still accounts for over one-in-every-three
overseas trips made by United States travellers.
Excluding international air transport, United States travellers spent US$24.3 billion (EUR18.7 billion) on their European trips in 2012. Including passenger fare
payments brings the total to US$38.7 billion (EUR18.7 billion), up 7% on the level
in 201116.
The ETC Dashboard data show total United States arrivals in all European countries in 2013 of 22.2 million in 2013, a rise of 4.3% over 2012. The Dashboard
data relate to aggregated arrivals so are higher reflecting the fact that more than
one country is visited per trip (1.5 countries on average, according to OTTI regional profiles17). Both data series show a big jump in 2004, low growth between
2004 and 2007, followed by two years of decline in the wake of the global economic and financial crisis, and a gradual recovery over the past three years.
Data Collection Methodologies
There is, however, a significant variance between United States departures
to Europe and United States arrivals in European countries for 2012 and
2013. While data series developed on such different bases (i.e. air departures compared with arrivals based on different methods such as at border,
accommodation registrations etc.) will show some variance, other factors
are likely to be:
•
•
•
•
the definition of which countries are included in Europe,
the fact that the OTTI data do not include charter flights and are
based on a self-selection survey,
destination statistics include all visits of a duration of more than
one day but less than one year, for all purposes, including for
instance students and United States citizens resident in Europe
on business, who may not be fully reflected in the OTTI’s results,
different data collection methods across destinations.
The ETC Dashboard information is based on UNWTO Factbook data made
up of arrivals on the best available definition which can be a mix of arrivals
at borders, arrivals at accommodation establishments or arrivals at hotels. It
then standardises and scales all arrivals to the same definition for consistency and to allow easier comparison across countries.
15Ibid
16 2012 United States Travel and Tourism Exports, Imports and the Balance of trade:
2012. OTTI, ITA, US Department of Commerce
17 OTTI Regional Profiles http://travel.trade.gov/outreachpages/outbound.general_
information.outbound_overview.html)
19
Europe still accounts
for one in three
overseas trips made
by US travellers
Marketing Strategies for Tourism Destinations. Target market: USA
Figure 11: United States Arrivals in Europe, 2003 to 2012
Year
Arrivals (million)
% change on previous year
2003
15.9
(6.5)
2004
19.2
20.7
2005
19.7
2.6
2006
21.4
8.5
2007
21.5
0.6
2008
19.8
(8.1)
2009
18.9
(4.5)
2010
19.4
2.6
2011
20.8
7.6
2012
21.3
2.2
2013
22.2
4.3
Source: ETC Dashboard
The USA is the
leading nonEuropean source of
visitors to Europe
The UK is the leading
European destination
for US residents
The United States is the leading non-European source of visitors to Europe generating three times the number of the next largest market, China.
The leading European destinations for United States’ residents are, in order by
volume of trips, the United Kingdom, accounting for a quarter of all trips from the
United States to Europe, followed by France, Italy, Germany and Spain.
Individual European destinations have experienced differing patterns of United
States trips, both within the decade and between each other. There are three
broad groups:
•
•
•
those that fared well in the period between 2003 and 2007 but have
suffered declines since i.e. France, Italy, Germany, Ireland, Greece,
those that have achieved growth throughout the period i.e. Spain,
Austria,
those that have suffered a decline throughout the decade i.e. the
United Kingdom, Netherlands, Switzerland.
Figure 12: United States Residents’ Trips to Europe by Leading Country
European Country
2012 Visits of One or
More Nights (‘000)
% change 2003
-2012
% change 2007-2012
United Kingdom
2,537
(22.0)
(18.8)
France
2,024
7.4
(8.7)
Italy
1,938
18.3
(18.3)
Germany
1.710
11.0
(11.7)
Spain
1,140
22.7
4.3
Ireland
684
21.7
(8.7)
Netherlands
656
(21.1)
(30.0)
Switzerland
570
(6.7)
(13.1)
Austria
456
24.3
12.3
Greece
399
36.2
(29.0)
10,204
(1.1)
(17.1)
Total Europe
Notes: 1. multiple country visits included. 2. Figures in parentheses () indicate a fall over the period
Source: 2012 United States Resident Travel Abroad. NTTI, ITA, US Department of Commerce
20
Marketing Strategies for Tourism Destinations. Target market: USA
Within Europe, Western Europe receives the largest number of United States
tourists, with arrivals of over 8.7 million in 2013, followed by Southern and Northern Europe with 5.9 million and 5.2 million United States tourist arrivals respectively. Central/Eastern Europe has the smallest share of the United States market, with 2.9 million United States tourist arrivals in 201318.
The leading country recipients of United States overnight tourists’ spending in
2012 were19:
•
•
•
•
the United Kingdom US$9.7 billion (EUR7.5 billion), representing a
quarter of total United States resident expenditure in Europe,
Germany US$6.5 billion (EUR5 billion),
France US$4.5 billion (EUR3.5 billion),
Italy US$3.9 billion (EUR3 billion).
Western Europe
receives the largest
number of US
tourists
The leading four
countries account
for almost two thirds
of US travellers’
spending in Europe
Together the leading four countries accounted for almost two thirds of total United
States travellers’ spending in Europe.
United States residents’ trips to Europe are forecast to grow at an average annual
rate of over 4.7% over the next five years. At the same time total United States
long haul overnight trips are likely to grow at close to 6% a year, resulting in a
further loss of 1.5 percentage points in Europe’s share of the United States long
haul market, to just over 42% in 201820.
US trips to Europe
are forecast to grow
at an annual rate of
4.7% over the next
five years
1.3 Characteristics of the United States Traveller
Population: 316.1 million population (2013 estimate)21. The population of the United States is expected to continue to grow due to the high migration rates and the
birth rate to death rate ratios. By 2030, the population will reach 358 million under
the middle scenario, an average annual rate of growth since 2013 of between 0.7
and 0.8%22. The natural increase to net international migration ratio of in excess
of 2:1 currently will change to close to 1:1 by 2030.
18 European Tourism Portfolio Analysis: Market Share and Origin Market Growth.
Tourism Economics. April 2014. ETC.
19 2012 United States Travel and Tourism Exports, Imports and the Balance of
trade: 2012. OTTI, ITA, US Department of Commerce http://travel.trade.gov/
outreachpages/download_data_table/2012_International_Visitor_Spending.pdf
20 European Tourism in 2014: Trends and Prospects (Q1 2014). Tourism Economics.
May 2014. ETC
21 USA Quick Facts from the US Census Bureau http://quickfacts.census.gov/qfd/
states/00000.html
22 2012 National Population Projections. US Census Bureau. http://www.census.gov/
population/projections/data/national/2012/summarytables.html
21
The population of the
USA is expected to
continue to grow due
to high migration and
birth rates
Marketing Strategies for Tourism Destinations. Target market: USA
Figure 13: Demographic and Economic Facts
Population
316.3 mn
Gross domestic product 2013
us
$16,800 trillion
(EUR12,400 trillion)
GDP per capita current prices
us
$53,101
(EUR39,330)
GDP per capita International dollars
us
$53,101 (EUR39,330)
Unemployment rate
7.4% and falling
Inflation
1.5% and likely to rise slowly from 2015 onwards
The top origin regions/states from which United States residents travelled to
overseas destinations were23:
•
•
•
•
•
US citizens
travel abroad
predominantly in
months of June to
August
Middle Atlantic States (New York, New Jersey and Pennsylvania):
26% share of all United States regions: no increase over 2011,
South Atlantic States (Florida, Georgia, Virginia, Washington, D.C.,
Maryland and North Carolina): 18% share, but down 18%,
Pacific States (California): 15% share, up 22% over 2011,
East North Central (Illinois, Ohio, Michigan and Wisconsin): 10%, up
42%,
West South Central States (Texas): 10 % share, up 35%.
United States citizens travel abroad predominantly in the northern hemisphere
summer months of June, July and August with a second peak in December. The
favoured time to visit Europe is between May and September, while the lowest
volumes of US-to-Europe travel are in November, January and February24.
United States residents travel by air to their long haul destinations (i.e. outside
North America). Trips by United States citizens to Canada and Mexico are a
mixture of short cross-border travel using land transportation, and longer trips
normally by air. Land crossings outnumber air trips in both the cases of Canada
and Mexico by two-and-a-half to three times.
Over three quarters
of US outbound trips
are for leisure
Over three-quarters of all overnight outbound trips undertaken by United States
residents are for leisure/pleasure (47%) or VFR purposes (29%) with about 15%
being business and convention etc. trips, and 5% educational purposes. Europe
accounts for 36% of all overseas trips in 2012, 35% of leisure and VFR trips and
43% of business and convention etc. trips.
23 U.S. Travel to International Destinations Increased Three Percent in 2012.
http://travel.trade.gov/outreachpages/download_data_table/2012_Outbound_
Analysis.pdf
24 US Outbound Travel by World Regions http://travel.trade.gov/research/monthly/
departures/
22
Marketing Strategies for Tourism Destinations. Target market: USA
The key sources of travel information and options consulted by United States
citizens for all overseas trips in 2012 were: airline (50%), online travel agency
(31%), travel agency office (20%) and personal recommendations (19%), with all
four sources slightly more important when considering leisure trips25. The survey
conducted for the ETC-UNWTO study on the United States Outbound Travel
Market to Europe found that most important was friends and relatives recommendation (35%), followed by must-see world renowned destination (24%), information on the Internet (14%), travel agency recommendation (10%) and ‘appealing advertising’ (8%)26. This suggests that United States travellers determine the
destination before seeking out the travel arrangements.
Airlines and online
travel agencies are
the key sources of
travel information
Air trips are mainly booked directly with the airline (36%), through an internet
booking service (28%) or via a travel agency office (22%)27. Distribution in the
United States travel market is driven by four major channels. This includes two
online channels:
•
•
supplier-direct websites,
online travel agencies (OTAs),
and two offline channels:
•
•
central reservation/walk-in,
travel agencies/travel management companies (TMCs).
There has been a continued shift in distribution from offline to online channels as
travellers switch booking options, but the transition has slowed down in recent
years as suppliers have concentrated on maximising direct bookings.
Roughly half of United States travellers travel independently, preferring a customised itinerary compared to a packaged trip. 21% took a partially or fully guided
trip, 16% went on a cruise and a further 14% went to an all-inclusive resort28.
Prepaid packages account for 12% of United States residents’ overnight trips
overseas, though 52% pre-booked lodging29.
The average travel party size for United States citizens on overseas overnight
trips is 1.5 persons for all purposes, 1.6 for leisure/VFR trips, and 1.2 for business/convention trips30.
59% of United States leisure travellers to overseas destinations travel alone,
26% with a spouse or partner, 15% with family/relatives and 5% with friends.
25Ibid
26 ETC-UNWTO United States Outbound Travel Market to Europe
27 Profile of US Resident Travelers Visiting Overseas Destinations: 2012 Outbound.
NTTI, ITS, US Department of Commerce
28 Global Tourism Watch: 2013 US Summary Report. http://en-corporate.canada.
travel/sites/default/files/pdf/Research/Market-knowledge/Market-profile/US/gtw_
summary_report_us_2013.pdf
29 Profile of US Resident Travelers Visiting Overseas Destinations: 2012 Outbound.
NTTI, ITS, US Department of Commerce
30Ibid
23
There has been a
continued shift from
offline to online
booking channels
Roughly half of US
travellers travel
independently
Marketing Strategies for Tourism Destinations. Target market: USA
There is growing
interest in unique/
local experiences
and summer
activities
Nature, culture, unique / local experiences, and urban activities remain the top
vacation interests of United States travellers. The Global Tourism Watch 2013
results show there is growing interest in unique / local experiences, aboriginal
attractions, and summer activities31. These are broad interests and activities that
many long haul destinations can meet. The principal segments based on people’s attitudes and values by life stage are identified in the ETC-UNWTO study of
the United States outbound travel market32:
•
•
•
•
•
The great majority
of US travellers
undertake
sightseeing and
engage in shopping
Baby Boomers (Young Boomers (45-54), Older Boomers (55-65))
comprise approximately 38% of all United States online leisure travellers33. They are older, richer, fitter, more confident, and more experienced than their predecessors. These include traditional older travellers (i.e. wealthier, retired), and the more adventurous “middle youth”
travellers who do not see themselves as elderly and are most commonly found in professional, managerial or self-employed positions,
Generation X (31-44) comprise approximately 30% of all United
States online leisure travellers. Averse to conventionality, with low
boredom thresholds having grown up with the 24 hour media, they
nonetheless reject all things conventional. They are creative, and
open to learning. They are attracted to destinations with sustainable
practices and that offer the opportunity to discover new destinations,
cultures and experiences,
The “Creative Class” (the Bobos – Bourgeois Bohemians) straddles
both the Baby Boomers and Generation X segments. Their interest is
deeper than just the experience. They engage in active participation
and experiential activities that are intriguing, fulfilling, and personally
enriching, meeting both their sense of status and self-improvement,
Echo Boomers (18-30) comprise approximately 22% of all United
States online leisure travellers34. They live in the digital realm, trusting
their peers’ advice over most forms of advertising. They are potentially the most lucrative but demanding future travellers. The extent to
which they will opt for independent - versus packaged - travel will be
a challenge for the United States outbound travel industry,
Seniors (66+) comprise 10% of all United States online leisure travellers35 but represent a strong segment for mature destinations with
which they have the strongest affinity, because of ancestral links,
which are weakening with each successive generation.
The great majority of United States travellers, irrespective of purpose of trip, undertake sightseeing and engage in shopping36.
Just under a half of leisure and VFR travellers visit small towns and/or the country side, but the incidence is much less for business travellers. Leisure and VFR
travellers are also much more likely than business/convention travellers to go to
historical, cultural heritage or national park locations, take guided tours, engage
in water sports or go to nightclubs, casinos or theme parks.
31 Global Tourism Watch: 2013 US Summary Report. http://en-corporate.canada.
travel/sites/default/files/pdf/Research/Market-knowledge/Market-profile/US/gtw_
summary_report_us_2013.pdf
32 ETC-UNWTO United States Outbound Travel Market to Europe
33 Travel Trends 2011 - Prospering in 2011. Presentation at USTOA, December 2010.
Henry Harteveldt, Forrester Research
34Ibid
35Ibid
36 Profile of US Resident Travelers Visiting Overseas Destinations: 2012 Outbound.
NTTI, ITA, US Department of Commerce
24
Marketing Strategies for Tourism Destinations. Target market: USA
Two-fifths, across the board in respect of purpose of visit, like to experience fine
dining.
Figure 14: Leading Activities of United States Travellers Visiting Overseas
Destinations, 2012 (% Engaging in the Activity)
Leisure/recreational activities
All United States
Travellers
Leisure & VFR
Travellers
Business &
Convention etc
Travellers
Sightseeing
78
81
67
Shopping
76
78
67
Small Town/Countryside
43
46
28
Experience Fine Dining
41
42
44
Historical Locations
40
42
29
Guided Tours
35
37
19
Art Galleries/Museums
33
35
26
Cultural/Ethnic Heritage Sites
31
33
23
National Parks/Monuments
28
30
19
Nightclub/Dancing
26
27
18
Water Sports
18
21
7
Concert/Play/Musical
14
15
10
Amusement/Theme Parks
10
11
6
Casino/Gamble
9
10
5
Camping/Hiking
8
8
4
Source: Profile of US Resident Travelers Visiting Overseas Destinations: 2012 Outbound. NTTI,
ITA, US Department of Commerce
1.4 Drivers of Growth
The United States has a far lower level of overseas travel per capita than neighbouring Canada. The incidence of outbound travel is particularly undeveloped
away from the major metropolitan areas and among the black population i.e. 13%
of the population but only 9% of United States overseas travellers. The key to
growth comes from three factors: the underlying economic factors and consumer
confidence arising from these; the impact of digital technology and social media;
and consumers’ perception of the destination and the extent to which they have
it high on their list of places to visit.
The USA has a
far lower level of
overseas travel than
neighbouring Canada
The steady recovery of the United States economy since the downturn of 2008/9
has begun to restore consumer confidence, as witnessed by the lessening of
perceived barriers to overseas travel as reported in section 1.1.4. The recovery
is likely to continue in a similar manner with rises in GDP of 2.8% and 3% anticipated in 2014 and 2015 respectively after the 1.9% growth in 201337. Traveller
confidence will continue to rise and, with it, overseas travel, as anticipated in the
United States outbound forecasts outlined in section 1.1.
The steady recovery
of the US economy
has begun to restore
confidence
37 World Economic Outlook Update. January 2014. IMF. https://www.imf.org/external/
pubs/ft/weo/2014/update/01/
25
Marketing Strategies for Tourism Destinations. Target market: USA
US citizens’ use
of the Internet and
mobile phones is
amongst the highest
in the world
Over 80% of US
travellers are active
on social media
United States citizens’ use of the Internet and mobile phones is among the highest in the world with more than one mobile phone per head of population – 328
million phones in April 201438 – and a penetration of 81% in internet usage – 254
million users39.
Over 80% of United States travellers are active on social media. Facebook is the
most popular social networking site, with over three-quarters of United States
travellers reporting use in the past 3 months, followed by YouTube (48%) and
Twitter (26%)40.
With the great majority of United States travellers opting for tailormade itineraries,
information to enable the necessary planning is typically sought online directly
with suppliers like airlines or through OTAs.
On-line searches
are more for
planning purposes
than determining
destination choice
It appears that the online searches and consultations with travel agencies –
whether online or through personal consultation - are more for planning purposes
than for determining the destination choice which is predominantly influenced by
the traveller’s perceptions (built up from personal experience and recommendations of friends/relatives) and how highly rated the destination is for a visit.
United States travellers evaluate destinations according to how well they can
meet their needs for:
•
•
•
•
•
•
authentic experiences in new destinations (75%),
rest and relaxation (68%),
desire to spend time with/reconnecting with loved ones (48%),
personal enrichment e.g. voluntourism, cultural experience, learning,
etc. (43%),
discovering new experiences in previously visited destinations (24%),
adventure (24%)41.
The most important determining factors in choosing a vacation are, in order42:
1.
2.
3.
4.
5.
US travellers invest
effort in seeking out
the right destination
The right destination,
Value for money paid,
Once-in-a-lifetime experiences,
The activities available,
Price.
United States travellers, therefore, invest a good deal of time and effort in seeking
out the right destination. That destination may be one they have already visited if
they find a new set of opportunities or experiences there; or it may be a new destination that has created, through its marketing and social media feedback from
previous visitors, a desire among the market to visit it.
38 Wireless Quick Facts. CTIA. http://www.ctia.org/your-wireless-life/how-wirelessworks/wireless-quick-facts
39 List of countries by number of internet users. http://en.wikipedia.org/wiki/List_of_
countries_by_number_of_Internet_users
40 Global Tourism Watch: 2013 US Summary Report. http://en-corporate.canada.
travel/sites/default/files/pdf/Research/Market-knowledge/Market-profile/US/gtw_
summary_report_us_2013.pdf
41 Top Trends from the Virtuoso – Luxe Report
42Ibid
26
Marketing Strategies for Tourism Destinations. Target market: USA
Europe has a competitive advantage among the United States traveller through
its image, which is deeply embedded in the psyche of many United States citizens, as an aspirational, sophisticated, diverse destination. It is seen as offering
not only an iconic historical experience, but it also offers United States citizens
the opportunity to immerse themselves in Europeans’ way of life, to visit iconic
buildings and monuments of which they’ve been aware since childhood, and to
discover unexpected and special experiences by virtue of their ability to communicate with Europeans, who are largely considered friendly and hospitable43.
Europe has
a competitive
advantage through
its image
The types of interests and activities of United States travellers can be met by
many – not necessarily - long haul destinations. Europe’s main competition is
increasingly likely to come from Central and South America, as the demographic
make-up of the United States changes with people with Hispanic roots increasing
their share of the United States population. The product offering of the Central
and South American region – its history, culture, and hospitable people – represents direct competition for Europe, its advantages being its accessibility (closer and cheaper), and general perception of greater warmth, colour, vibrancy and
extroversion44.
Europe’s main
competition is
increasingly likely to
come from Central
and South America
1.5 Successful Destination Strategies
The United States outbound travel market will be increasingly characterised by
those seeking a deeper, more authentic and self-fulfilling experience from their
chosen destinations than has been the case in past decades. Success for any
destination will be based on offering travellers value-for-money, interesting and
diverse experiences, and unique tourism products.
Any destination’s ability to attract an increasing share of the United States citizen
outbound market over the coming decade will require attention to be paid to:
1. Creating and sustaining the image in the market as an “aspirational
destination”, inspiring potential visitors about the calibre and range of
experiences available in the destination, with a focus on how visitors
can gain privileged insights and immerse themselves culturally in the
destination45,
2. Creating a set of tourism products/experiences that have diversity
and authenticity combining both historic and modern components,
featuring big cities and smaller places, and providing cultural and natural features, with the opportunity for active participation – all geared
to providing a meaningful and fulfilling trip as increasingly demanded
by the United States traveller,
3. Extensive investment in, and highly effective use of, online/digital and
mobile technology, online advertising and social media marketing,
since this represents an efficient and effective way of reaching the
United States consumer in all market segments, with a dual focus:
image building, and detailed information for trip planning. It will be
vital for destination marketing agencies to bring the destination to life
and to enable the potential visitor to interrogate the website interactively, as they have come to expect from current leading technology
applications in their daily lives46,
43
44
45
46
ETC-UNWTO United States Outbound Travel Market to Europe
Ibid
Ibid
Ibid
27
US outbound travel
will be increasingly
characterised by
demand for authentic
and self-fulfilling
experiences
Marketing Strategies for Tourism Destinations. Target market: USA
4. Making it easy to obtain information on the destination, and for that
information to be personally relevant to each potential visitor; and
making it easy to book – e.g. through digital linkages47,
5. Addressing concerns (particularly among the older generations, and
the inexperienced United States traveller – each year one-in-fourteen
is a first time overseas traveller48) about prices, safety and ease of
travel – all of which can be addressed through digital technology,
6. Facilitating the ready availability of different components of the destination so that: combined business and leisure trips can be created
and undertaken; and the increase in multi-generational travel (i.e. two
or three generations travelling together) can be further stimulated –
again, predominantly, through online means.
47Ibid
48 Profile of US Resident Travelers Visiting Overseas Destinations: 2012 Outbound.
NTTI, ITA, US Department of Commerce
28
Marketing Strategies for Tourism Destinations. Target market: USA
Travel Destinations in the
United States Outbound
Market
Based on the investigations and research conducted into recent trends in United
States outbound travel flows and the comparative assessment that introduces
this report, a short list of five destinations was selected for further examination in
respect of the United States market. The five – in alphabetical order – are:
1.
2.
3.
4.
5.
Australia,
Brazil,
China,
South Africa,
United States Large Cities.
The remainder of this chapter illustrates the positioning of these destinations in
the United States outbound market as compared to Europe. The positioning is
assessed on factors that facilitate tourism flows, such as visa regimes, transport
routes, and the political, socio-economic and cultural links between the United
States and the four foreign country destinations.
This section is enriched by an analysis of TripAdvisor ratings on accommodation,
attractions and eateries, presented in Appendix 3. While not representative of
United States travellers, TripAdvisor ratings are used as a proxy for consumers’
appreciation of key aspects of a holiday experience across competing destinations.
2.1 Visa Regimes
The detailed comparison of visitor entry requirements for the selected 13 destinations competing with Europe considered three elements:
1. Whether the destination imposes a visa requirement for entry to the
country,
2. The documentation and other details demanded for issuance of a
visa,
3. A qualitative assessment of the “hassle” factor involved in obtaining
the visa.
Among the four countries selected as prime competitors to Europe in the United
States outbound travel market, United States travellers require visa for entry to
Australia, Brazil and China whereas there is no such requirement for travel to
South Africa or Europe (i.e. both ETC and non-ETC member countries).
29
2
Marketing Strategies for Tourism Destinations. Target market: USA
The Chinese visa process makes travel more complicated compared to competitor destinations. Though there are exceptions for transit passengers and visa on
arrival in certain instances, most United States citizens, whatever their purpose
of visit, require to obtain a visa in advance, typically taking four days processing,
though an emergency application can be made at higher charge.
The Electronic Travel Authority introduced for United States travelers to Australia
significantly reduces the complication for United States citizens visiting that country. The visa regime in place for United States travellers to Brazil represents an
obstacle, both in terms of processing time and cost.
Figure15: Visa Requirements of United States Travellers in Key Destinations
Destination
Yes/No
Requirements/Process
Australia
Y
United States citizens qualify for Electronic Travel
Authority obtained through travel agent or airline
participating in the scheme and verified by the airline prior to boarding and immigration officials on
arrival. Max stay 90 days. AUD20 (EUR14) for online applications.
Brazil
Y
China
Y
South Africa
N
ETC Members
N
Tourist visa application, visitor visa sub-class 600.
Prior to travel, application to Australian authorities in the USA. Travel documentation required.
Processing time 4 to 6 weeks. From AUD130
(EUR90).
Prior to travel, application to Brazilian authorities
in the United States. Round ticket and evidence of
sufficient funds required. Max stay 90 days. Processing time up to 15 days. US$180 (EUR133).
Tourist visa L: prearranged. Requirements: documents showing the itinerary including air ticket
booking record (round trip) and proof of a hotel
reservation, etc. or an invitation letter issued by
a relevant entity or individual in China, containing
information on: the applicant (full name, gender,
date of birth, etc.), the planned visit (arrival and
departure dates, place(s) to be visited, etc.), the
inviting entity or individual (name, contact telephone number, address, official stamp, signature
of the legal representative or the inviting individual). Single entry, 90 days visa US$140 -160
(EUR104 – 118).
No visa required for stays of up to 90 days. Passports must be machine readable. Onward travel
documentation required.
No visa required for stays of up to 3 months in
Schengen member countries. No visa required
for visits to non-Schengen ETC members (Bulgaria, Croatia, Ireland, Romania, Serbia) nor to
non-Schengen, non-ETC members e.g. the United Kingdom.
30
Marketing Strategies for Tourism Destinations. Target market: USA
2.2 Air Connections
The scheduled air capacity from the airports of the United States’ main metropolitan centres of Los Angeles, Miami and New York to the shortlisted destinations
competing with Europe was monitored on ETC’s behalf by Amadeus. Two points
in the year were examined – week 24 in 2013 (broadly corresponding to high
season) and week 6 in 2014 (low season), though this can only be taken as an
approximate measure given the difference in northern and southern hemisphere
climates at the different times of the year. Data for two years were considered in
order to provide an indication of the trend in capacity on the various routes i.e.
June 2008/June 2013, and February 2009/February 2014.
There are substantial rises in direct flight capacity recorded for the two periods
under review to all the four destinations competing with Europe, particularly on
routes from Los Angeles, while for Europe the picture is mixed:
June 2008-June 2013 - % change in direct flight seats
•
•
•
•
•
•
•
Australia capacity up 43% on LAX-SYD route,
Brazil capacity up 45%, principally on routes to Rio de Janeiro which
increased share of United States-Brazil seats from 9% in June 2008
to 25% in June 2013,
China routes up overall by 175%, made up of a doubling of seats to
Beijing (from both Los Angeles and New York) and a more than fourfold increase in capacity to Shanghai,
introduction of a direct service between New York and Johannesburg
with over 2,000 weekly seats,
a decline in overall capacity on United States routes to Amsterdam,
London, Paris and Rome ranging from 10 to 23% over the five year
period,
a rise of 18% in direct seats to Madrid,
routes from Los Angeles to Europe held up better with rises in capacity to Amsterdam, Madrid, Paris and Rome.
February 2009-February 2014 - % change in direct flight seats
•
•
•
•
•
•
Australia capacity up 21% on the Los Angeles – Sydney (LAX-SYD)
route,
similar growth in direct seats in between February 2009 and 2014, as
recorded between June 2008 and 2013 i.e. 45%, though principally
in this period on Sao Paulo routes. Sao Paulo accounted for 78% of
seats in February 2014,
a two-and-a-half-fold rise in combined capacity on routes from Los
Angeles and New York to Beijing and Shanghai,
introduction of a direct service between New York and Johannesburg
with 1,700 weekly seats,
a fall in weekly capacity on all routes to European centres except Madrid which achieved a 7% rise i.e. down by over 20% to Amsterdam,
5% to London, 10% to Paris and by almost a half to Rome,
as in the June 2008-June 2013 period, seats available on direct flights
to Europe from Los Angeles (i.e. to Amsterdam, London and Paris)
held up better than from New York (except to Madrid where a 10%
rise was recorded).
31
There are substantial
rises in direct flight
capacity
Marketing Strategies for Tourism Destinations. Target market: USA
The weekly capacity of direct flights from the three main United States cities
to the two principal Brazilian airports ranged between 30 and 35,000 (with the
higher volume in February, the month of Carnival in Rio de Janeiro) Capacity on
flights to the two main Chinese centres amounted to just over 24,000 in the most
recent periods, with little difference between June and February. Capacity to Australia (solely on the Los Angeles – Sydney route) is a consistent 12,000 across
the year. The recently introduced New York to Johannesburg route gives South
Africa its first direct connection with the United States providing between 1,700
and 2,200 seats according to time of the year.
European routes still
dominate in terms of
capacity from the US
European routes still dominate in terms of capacity from the US, despite the recent declines. United States seats from Los Angeles, Miami and New York to
London is between 77 and 85,000 on between 280 and 310 flights, depending on
time of year. Paris is served by between 25 and 37,000 seats, Rome by between
14 and 21 thousand, Amsterdam by between 13 and 15,000 and Madrid by between 10 and 16,000 seats. In all instances, capacity is significantly higher in
June than in February.
There are no direct scheduled air services between any of the United States
cities and Perth (Australia) or Cape Town (South Africa); while there are no direct services from Miami to Sydney, Beijing, Shanghai, or Johannesburg; and no
direct flights from New York to Sydney nor from Los Angeles to Rio de Janeiro or
Johannesburg.
Competing
destinations to
Europe have
a comparative
advantage in growth
in direct air capacity
on US routes
The analysis points to a comparative advantage of the competing destinations to
Europe in terms of growth in direct air capacity on United States routes. Over the
past five years, direct air capacity from the United States to all four destinations
has expanded more significantly than to Europe.
32
Marketing Strategies for Tourism Destinations. Target market: USA
Figure 16: Changes in Weekly Direct Flight Seat Capacity from the United States
(Los Angeles, New York and Miami Aggregated) to Selected Destinations, June
2008-June 2013 and February 2009-February 2014
Source: TDI calculations based on data supplied by Amadeus
Full details of flights, capacities and flight time for direct and connecting flights
for a week in June 2008 and 2013, and a week in February 2009 and 2014 are
shown in Appendix 2.
NOTE: figures in front of break (/) relate to the first year in the time series i.e.
June 2008, while those after the break are for the later year i.e. June 2013.
33
Source TDI calculations based on data supplied by Amadeus
34
0 5000 10000 15000 USA -­‐ Brazil Feb-­‐09 Feb-­‐14 Jun-­‐08 Los Angeles Jun-­‐13 Feb-­‐09 Feb-­‐14 Jun-­‐08 Jun-­‐13 New York Miami Los Angeles – Los Angeles – Los Angeles – Los Angeles – Los Angeles – Amsterdam London Madrid Paris Rome Los Angeles-­‐ Miami -­‐ Rio de Miami-­‐Sao New York -­‐ Rio New York-­‐Sao Sao Paulo Janeiro Paulo de Janeiro Paulo 0 5,000 10,000 15,000 20,000 25,000 Los Angeles -­‐ Europe Figure 17: Direct Flights Capacity
0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 Jun-­‐13 Feb-­‐14 Jun-­‐08 New York -­‐ Johannesburg Jun-­‐13 New York -­‐ Johannesburg Jun-­‐08 Miami– Miami – Paris Miami -­‐ Madrid Rome Feb-­‐14 Miami-­‐ London Feb-­‐09 0 5000 Feb-­‐09 Miami -­‐ Amsterdam Miami -­‐ Europe 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Feb-­‐09 8,000 6,000 4,000 2,000 0 Feb-­‐14 Jun-­‐13 Feb-­‐14 Jun-­‐08 Feb-­‐14 Jun-­‐08 New York-­‐
Shanghai Jun-­‐13 Jun-­‐13 Los Angeles – Sydney Los Angeles -­‐ Sydney Feb-­‐09 0 20,000 Feb-­‐09 Los Angeles -­‐ New York-­‐Beijing Shanghai Los Angeles & New York -­‐ China Los Angeles-­‐
Beijing Jun-­‐08 New York -­‐ Europe Marketing Strategies for Tourism Destinations. Target market: USA
Figure 17: Direct Flights Capacity
Marketing Strategies for Tourism Destinations. Target market: USA
2.3 Political, Economic and Socio-Cultural Links
As the world’s leading economy the United States maintains active relations at all
levels with each of the countries included in the study as main destination competitors for United States tourists to Europe.
Australia has continually strengthened its relationship with the United States since
1942, relations being formalised by the ANZUS treaty and the Australia-United
States Free Trade Agreement.
Trade between the United States and Australia is strong, the United States being
Australia’s fourth largest export market and its second largest source of imports.
The United States is also the largest investor in Australia, while Australia is the
fifth largest investor in the United States49.
There are 100,000 United States citizens living in Australia50 , half the level Australians living in the United States51. The Crocodile Dundee series of films created
considerable interest in Australia among United States citizens.
The United States and Brazil have enjoyed generally close relations for 200
years. The two countries currently cooperate on trade issues, HIV/AIDS efforts,
regional concerns, and the international peacekeeping operation in Haiti.
Brazil is the world’s seventh largest economy and the United States’ eighth-largest
merchandise trading partner. Two way trade in 2012 was a record US$76 billion
(EUR58 billion). The United States had a record US$11.6 billion (EUR8.9 billion)
trade surplus with Brazil in 2012 representing the sixth highest surplus market for
the United States. Brazil’s main imports from the United States are machinery,
chemicals, aircraft/spacecraft, and computer and electronic products52.
The United States is Brazil’s second largest export market. The United States is
the leading foreign investor in Brazil, with an accumulated foreign direct investment stock in 2012 of US$79 billion (EUR61 billion). Brazilian investment in the
United States has grown rapidly. In 2012, Brazil was named one of ten countries
for the SelectUSA pilot programme to attract foreign investment to the United
States. As the world’s largest biofuels producers, the United States and Brazil
have worked together to help make sustainable biofuels a global commodity53.
There are an estimated 70,000 United States citizens living in Brazil54 but the
greatest influence on United States perceptions of Brazil is made by the near half
a million Brazilian population in the United States, and almost as many again with
Brazilian heritage.
49 http://en.wikipedia.org/wiki/Australia%E2%80%93United_States_relations
50 2011 Census QuickStats http://www.censusdata.abs.gov.au/census_services/
getproduct/census/2011/quickstat/0
51 Special Feature: Australians in New York http://newyork.usa.embassy.gov.au/nycg/
ANY1Wi09.html
52 US Relations with Brazil. October 2 2013. US Department of State. http://www.
state.gov/r/pa/ei/bgn/35640.htm
53Ibid
54 Brazil http://www.state.gov/outofdate/bgn/brazil/191355.htm
35
The United States is
the leading foreign
investor in Brazil
Marketing Strategies for Tourism Destinations. Target market: USA
The end of the 1960s brought a period of transformation, following the end of
the United States’ involvement in the Vietnam war. China and the United States
resumed trade relations in 1972 and 1973. While there are tensions in United
States-Chinese relations, there are also many stabilising factors. The countries
are major trade partners and have common interests in the prevention and suppression of terrorism and nuclear proliferation. Their trade relationship is the second largest in the world, behind only that between the United States and Canada.
Most analysts characterise present Chinese-United States relations as being
complex and multifaceted. The United States government regards China as a
competitor in some areas and a partner in others. Though public opinion polls in
recent years show that a majority of United States citizens and Chinese have a
negative view of the other country, United States residents and Chinese under
age 30 have a more positive outlook of each other’s country55.
The Chinese
diaspora in the
United States counts
over 3.3 million
There are around 71,000 United States citizens living in China56, but by far the
greatest influence on United States residents’ perception of China is the large
Chinese-American community in the United States. The 2010 US Census Bureau
found that Chinese were the largest Asian immigrant group in the United States
with over 3.3 million. According to the subsequent 2012 Census estimates, the
three metropolitan areas with the largest Chinese-American populations were the
combined statistical areas of Greater New York (0.7 million), San Jose-San Francisco-Oakland (0.6 million), and Greater Los Angeles (approaching 0.6 million).
New York has the highest Chinese-American population of any city proper, with
seven Chinatowns in different parts of the city57.
South Africa is a
strategic partner of
the United States,
particularly in the
areas of health,
security, and trade
Since the end of apartheid and with the advent of democracy in1994, the two
countries have enjoyed a solid bilateral relationship. South Africa is a strategic
partner of the United States, particularly in the areas of health, security, and
trade. The two countries share development objectives throughout Africa, and
South Africa plays a key economic and political role on the African continent. The
United States seeks opportunities for increased United States - South African
cooperation on regional and international issues. In 2010, the United States and
South Africa launched a strategic dialogue aimed at deepening cooperation on a
range of issues of mutual interest and concern58.
Trade between the two countries amounted to almost US$16 billion (EUR11.6 billion) with South African exports to the United States amounting to US$8.5 billion
(EUR6.3 billion).
According to the Organisation for Economic Cooperation and Development, there
are 78,616 people born in South Africa that currently live in the United States59.
55 http://en.wikipedia.org/wiki/China%E2%80%93United_States_relations
56 American Diaspora http://en.wikipedia.org/wiki/American_diaspora#cite_note-17
57 http://en.wikipedia.org/wiki/List_of_U.S._cities_with_significant_Chinese-American_
populations
58 US relations with South Africa http://www.state.gov/r/pa/ei/bgn/2898.htm
59 How many South Africans live overseas? http://www.thesouthafrican.com/news/
how-many-south-africans-live-overseas.htm
36
Marketing Strategies for Tourism Destinations. Target market: USA
2.4 Consumer Assessment (TripAdvisor)
This section presents an analysis of ratings provided by TripAdvisor users from
the United States on three elements of a visitor experience: attractions, accommodation and eateries. While not representative of United States visitors’ behaviour,
TripAdvisor ratings allow for cross-destination comparisons on components of
a holiday experience. The analysis covers the four destinations competing with
Europe in the United States, and four European destinations used as benchmark
in this study (France, Italy, Spain and United Kingdom). The results for European
countries and competing destinations are presented in Appendix 3.
TripAdvisor users in the United States are very satisfied with accommodation,
giving an overall rating for the eight destinations of over 4.2, as against a rating
of 4 for accommodation in their home country. Leading the way are South Africa
with an average rating of 4.6 and Italy with 4.4. The United Kingdom, France and
Spain all match the average of between 4.2. and 4.3. TripAdvisor users from the
United States rate accommodation in Australia and China at a slightly lower rate,
but still higher than accommodation in their own country. Only ratings for accommodation in Brazil are marginally below those of United States accommodation.
Average ratings for all destinations in Europe suggest that TripAdvisor users from
the United States were in general satisfied with accommodation (just over 4.3).
These visitors were most satisfied with the location and cleanliness (at over 4.5)
of the accommodation they selected for their stay, while they tended to be slightly
less positive when evaluating the quality and value of the rented room (both over
4.2). Service was well rated (midpoint between 4.4 and 4.5.). Quality of sleep was
averagely rated (at 4.3).
Eateries score the lowest average of the three services in exam, 4.2. Six of the
eight destinations receive higher rates from TripAdvisor users from the United
States than eateries in the US. The highest rated destinations for eateries are
South Africa, Italy and Spain – all between 4.2. and 4.3. Next in order come the
United Kingdom, Brazil and France – each just under 4.2. Only eateries in Australia and China are assessed of equal quality as the United States eateries.
The attractions category receives the highest ratings from TripAdvisor users in
the US, averaging just under 4.6 across the eight destinations. This is slightly
above the 4.5 accorded by TripAdvisor users in the United States to attractions in
their own country. The top-rated destination for attractions is Italy at close to 4.7,
followed by South Africa (4.6), Spain, Australia, France, the United Kingdom and
Brazil (each at between 4.5 and 4.6). Only China, despite a good rating of 4.3,
scored below the assessment given by United States travellers to attractions in
their own country – 4.5.
37
Marketing Strategies for Tourism Destinations. Target market: USA
Figure 18: TripAdvisor Ratings of Tourism Services in Competing Destinations
TripAdvisor operates sites in 41 countries and 23 languages. TripAdvisor offers 150 million+ reviews and opinions on its site and receives 100+ user
contributions a minute. TripAdvisor covers 810,000+ hotels, B&Bs and specialty lodgings, 2.2 million+ restaurants and 420,000+ attractions worldwide.
As the world’s largest travel site, with nearly 260 million unique monthly visitors*,
TripAdvisor has valuable, global insights regarding travel patterns and trends.
TripAdvisor data, such as user traffic patterns and average review ratings, can
provide relevant insights for local hospitality and other travel industry businesses.
*Source: comScore Media Metric for TripAdvisor Sites, worldwide, Q1 2014.
38
Marketing Strategies for Tourism Destinations. Target market: USA
Profile of Europe’s Main
Competitors in the United
States
3.1 Destination Marketing Organisations
Within each competing destination, tourism authorities responsible for promoting
their country as a tourism destination in the United States have been identified
(Figure 19). Information about these organisations have been collected from existing sources and, whenever possible, through personal interviews.
Figure 19: Listing of Competitor Destination DMOs and Tourism Representative
Bodies
Competitor
Destination
Destination Marketing Organisations
Australia
Visit Australia http://www.australia.com
Tourism Australia http://www.tourism.australia.com
Association of Australian Convention Bureaux Inc. http://www.aacb.org.au
Association of Australian Convention Bureaux Inc. http://www.aacb.org.au
Brazil
Embratur www.visitbrazil.com and http://www.embratur.gov.br/
BRAZTOA – Brazilian Tour Operators Association http://www/braztoa.com.br
China
China National Tourism Administration (CNTA) http://en.cnta.gov.cn/
China National Tourism Organization (CNTO) http://cnto.org
South Africa
South African Tourism http://www.southafrica.net
USA – Los Angeles
Los Angeles Tourism http://www.discoverlosangeles.com/tourism
USA – Miami
Greater Miami Convention & Visitors Bureau http://www.miamiandbeaches.com/
USA – New York
NYC & Company http://www.nycgo.com/
Source: TDI
39
3
Marketing Strategies for Tourism Destinations. Target market: USA
The Australian
Tourism Sector
Australia received 6.5 million international tourist arrivals in 2013, a rise of 5.5%
over 2012. Between 2008 and 2013, arrivals grew at the rate of just over 3% a
year. Main markets are New Zealand, China, the United Kingdom, the United
States and Japan.
The United States is
Australia’s 4th most
important source
market after New
Zealand, the United
Kingdom and China
The increase in United States visitor arrivals in 2013 at 6.2% was slightly above
the overall rise in that year of 5.5%, a total of 509,000 United States arrivals being
recorded. The United States market suffered a downturn in consequence of the
financial and economic crisis of 2008/09 with arrivals down through to 2011. The
last two years have seen a recovery with growth in United States arrivals of 5 and
6% respectively60. The recovery is continuing in 2014 with a 12% rise in United
States arrivals during the first five months of the year61.
Tourism receipts totalled US$31.1billion (EUR23.4 billion) in 201362. Expressed
in local currency terms the level of tourism receipts shows little change over the
past five years, though receipts peaked in 2009 at AUD34.7 billion (EUR21.7
billion)63. When viewed in US dollar and Euro terms, the appreciation of the Australian dollar against these currencies between mid-2008 and 201264, resulted in
the 2012 level being higher when measured in US dollars (i.e. US$31.7 billion)
and Euros (EUR24.7 billion) than in earlier years. However, in 2013, when the
Australian currency declined against international currencies – by 7% against the
US dollar and 11% against the Euro - the 5% rise in the country’s receipts in Australian dollar terms became a fall of 2.1% and over 5% respectively in US dollar
and Euros. Visitors to Australia from the United States generated AUD2.6 billion
(EUR1.8 billion) in total expenditure in 2013.
Australia, it is the 10th
highest recipient of
tourist spending
Though there are over 40 countries around the world that receive more international tourists than Australia, it is the 10th highest recipient of tourist spending as
a consequence of its long distance from generating markets leading to few low
spending, cross border and other short duration visits.
60 Arrivals data archive. Tourism Australia http://www.tourism.australia.com/statistics/
arrivals-data-archive.aspx
61 May 2014. Tourism Australia http://www.tourism.australia.com/statistics/ArrivalMay-2014.aspx
62Ibid
63 OECD Tourism Trends and Policies 2014. March 2014. OECD.
64 Yearly Average Currency Exchange Rates. IRS. http://www.irs.gov/Individuals/
International- Taxpayers/Yearly-Average-Currency-Exchange-Rates
40
Marketing Strategies for Tourism Destinations. Target market: USA
Direct tourism GDP for the financial year ending June 2013 amounted to AUD42.3
billion (EUR31.8 billion), up 3.7% over the previous year, for a 2.8% share of the
country’s GDP. Tourism provided employment for 544,000 in 2012/1365. The
Tourism 2020, Tourism Australia’s Journey 2010 to 2013 report concludes
that tourism in Australia:
•
•
•
•
•
•
Tourism provides
direct employment
for half a million
Australians
generates AUD107 billion (EUR80 billion) in consumption66 ,
provides direct employment for half a million Australians,
represents the country’s leading services export sector,
contributes towards the funding of airports, roads, hotels and other
infrastructure,
assists in the economic development of regional Australia with 45
cents of every dollar being spent outside the major conurbations,
achieves a high multiplier – 91 cents generated for every tourist dollar.
On 3 October 2013, responsibility for tourism policy, programmes and research
transferred from the former Department of Resources, Energy and Tourism to
Austrade (the Australian Trade Commission). Australia’s tourism marketing authority, Tourism Australia, remains a separate statutory authority with primary responsibility for the international marketing of Australian tourism, reporting to the
Minister for Trade and Investment.
Tourism Australia
has primary
responsibility
for international
marketing
Tourism is one of four Australian National Investment Priorities. In recognition of
the importance of high quality infrastructure, products and experiences, as a key
component of maintaining the country’s competitiveness as a tourism destination, Tourism Australia, the-then Department of Resources Energy and Tourism
and Austrade officially commenced a five-year partnership in 2012 to drive investment opportunities in tourism.
The National Long-Term Tourism Strategy, published in 2009, is the overarching Australia tourism industry strategy supported by federal, state and territory
Tourism Ministers. The 2020 Tourism Industry Potential, published in 2010,
explains what a successful Australian tourism industry will look like in 2020. The
Tourism 2020 overview, published in 2011, provides an overview of Australia’s
national strategy to enhance growth and competitiveness in the tourism industry.
The aims of Tourism 2020 are to achieve increases in:
•
•
•
•
•
overnight tourism spend from AUD70 billion (EUR44 billion) in 2009
to between AUD115 billion and AUD140 billion (EUR80 to 97 billion)
by 2020,
tourism labour and skills,
accommodation rooms, particularly in capital cities,
international and domestic aviation capacity,
standards in industry quality and productivity.
65 Australian National Accounts: Tourism Satellite Account 2012-13. Australian Bureau
of Statistics http://www.abs.gov.au/AusStats/[email protected]/MF/5249.0
66 Tourist Satellite Account, 2011-12, Australia Bureau of Statistics, 2013.
41
A five-year
partnership to
drive investment
opportunities in
tourism
Marketing Strategies for Tourism Destinations. Target market: USA
Key targets for areas in which additional infrastructure investment and/or development is required are:
•
•
increasing accommodation capacity by between 6,000 and 20,000
rooms,
increasing international-operated and domestic aviation capacity over
2009 levels by up to 50% and 30% respectively67.
It focuses on 6 strategic areas:
•
•
•
•
•
•
grow demand from Asia,
build competitive digital capability,
encourage investment and implement regulatory reform,
ensure tourism transport environment supports growth,
increase supply of labour, skills and indigenous participation,
build industry resilience, productivity and quality.
Initiatives included the release of a Tourism Investment Guide, a Tourism Investment Monitor and investment opportunities database; identifying and targeting
key overseas investors; and establishing close working relationships with tourism
specialists in state and territory tourism investment agencies68.
Tourism Major
Project Facilitation
service launched
to assist tourism
investment
In November 2012 the Australian Government launched the Tourism Major Project Facilitation service to assist new tourism investment in gaining development
approvals. A case manager is appointed to significant new tourism projects to provide support and broker solutions to problems. 24 enquiries have been made to
the TMPF scheme, four of which – involving investment of AUD2 billion (EUR1.4
billion) and the creation of 12,000 jobs – are being assisted through Australian
Government approvals.
The 2020 Potential for the Business Events Sector, published in 2013, outlines how Australia’s business events sector has the potential to double the overnight expenditure by visitor delegates to between AUD15.8 billion and AUD16.0
billion (i.e. around EUR11 billion) to by 2020. Tourism 2020, Tourism Australia’s Journey 2010 to 2013, published in October 2013, provides an update on
Tourism Australia’s progress through phase one of the Tourism 2020 strategy
about ‘setting the foundation’.
Tourism Australia is an Australian Government statutory authority and the Federal Government agency responsible for international and domestic tourism marketing, attracting international visitors to Australia and encouraging Australians
to travel domestically, both for leisure and business events. Its purpose is to
increase the economic benefits to Australia of tourism. To do this it has implemented a new strategic approach – Tourism 2020 – aimed at growing overnight
tourism expenditure to as much as AUD140 billion (EUR97 billion) by the end of
the decade.
67 OECD Tourism Trends and Policies 2014. March 2014. OECD. http://www.keepeek.
com/Digital-Asset- Management/oecd/industry-and-services/oecd-tourism-trendsand-policies-2014/australia_tour-2014-8- en#page6
68 Tourism 2020, Tourism Australia’s Journey 2010 to 2013, Tourism Australia, October
2013
42
Marketing Strategies for Tourism Destinations. Target market: USA
As a marketing body, Tourism Australia’s resources are dedicated to facilitating
trade marketing opportunities for established businesses that will generate high
yielding, sustainable market opportunities. Critical to its global marketing effort is
reaching the customers most likely to enjoy what Australia has to offer.
Resources
are dedicated
to facilitating
trade marketing
opportunities
Tourism Australia is highly active in undertaking extensive research into tourist
markets, trends and performance with the view to guiding future tourism development and marketing strategies. It disseminates such information widely to the
private sector with which it has a number of partnerships and alliances to create
demand for the destination using the current theme of “There’s Nothing Like Australia”.
Under the Tourism Australia Act (2004) Tourism Australia’s objectives are:
•
•
•
•
to influence people travelling to Australia to also travel throughout
Australia,
to influence Australians to travel throughout Australia, including for
events,
to help foster a sustainable tourism industry in Australia,
to help increase the economic benefits to Australia from tourism.
Its outcome statement for 2013/14 as approved by the Government is to increase
demand for Australia as a destination, strengthen the travel distribution system
and contribute to the development of a sustainable tourism industry through consumer marketing, trade development and research activities.
Tourism Australia’s current slogan is “There’s Nothing Like Australia”.
Tourism Australia receives AUD130 million (EUR90 million) in yearly funding, and
total tourism funding in the country (including for Austrade’s Tourism Quality
grants and the Tourism Industry Regional Development Fund) is about AUD185
million (EUR129 million). Three quarters of the marketing element of the 2013/14
appropriation for tourism is concentrated on category 1 and 2 markets, including
North America. The country’s focus is as a destination of leisure, events (including business events) and education.
The Australian Commission of Audit has argued that the benefits of the near twothirds of Tourism Australia’s budget directed to advertising and other promotional
activities accrue to tourism operators and, as such, address market failures within the tourism industry. The Commission proposed that marketing Australia as a
destination for international tourists should be undertaken at a Commonwealth
level rather than on a State-by-State level whereby grant funding for the tourism
industry would ceases and Tourism Australia’s funding reduced by a half to focus
on international marketing, with the function incorporated into a commercial arm
of the Department of Foreign Affairs and Trade69. The Government of Australia
rejected the National Commission of Audit proposals and has confirmed that the
Federal Budget will include AUD130 million (EUR90 million) in base funding for
Tourism Australia and AUD13.5 million (EUR9.4 million) towards the Asia Marketing Fund70.
69 National Commission of Audit Recommendations. http://www.ncoa.gov.au/report/
phase- one/recommendations.html
70 Tourism Funding Safe in 2014/15 Budget. http://www.travelweekly.com.au/news/
tourism-funding- maintained-in-2014-15-budget
43
Tourism Australia
receives AUD130
million (EUR90
million) in funding
annually
Marketing Strategies for Tourism Destinations. Target market: USA
Activities include advertising, Public Relations and media programmes, trade
shows and industry programmes, consumer promotions, online communications
and consumer research.
Digital marketing
used to personalise
tourism product
offerings
Tourism Australia operates a 35 language website and uses digital marketing
focussed on personalising, socialising and mobilising its product offerings, enabling consumers to share their own stories and experiences. Tourism Australia’s
Facebook page exceeded 4.5 million fans worldwide in 2012–13. Tourism Australia launched its customised YouTube channel, youtube.com/Australia, in 16 countries in November 2012, the first for national tourism organisations and the travel
industry.
Tourism Australia is active in around 30 key markets including Australia, promoting the unique attributes which will entice people to visit and targeting those
people who its research indicates will spend more and travel most widely.
Tourism Australia’s Key Market Regions are:
•
•
•
•
•
•
•
Australia (domestic),
Americas - United States of America, Canada and Brazil,
Europe - France, Germany, Italy and the United Kingdom,
Greater China - China and Hong Kong,
Japan and the Republic of Korea,
New Zealand,
South and South East Asia - Singapore, Malaysia, India, Indonesia,
Vietnam and Gulf Countries.
Key markets have been categorised by the potential of growth in visitor spend
by 2020. Visitor spend, tracked by the International Visitor Survey refers to the
amount of AUD spent by travellers in Australia (*denotes countries where Tourism Australia also targets Business Events in addition to leisure consumers):
•
•
•
•
•
Youth market and
experience seekers
are key segments
visitor spend by these markets has the potential to be worth over
AUD5 billion (EUR3.4 billion) by 2020: Greater China* (China and
Hong Kong), North America* (United States and Canada), United
Kingdom*, Australia,
visitor spend by these markets has the potential to be worth over
AUD2.5 billion (EUR1.7 billion) by 2020: New Zealand*, Republic of
Korea, Singapore, Malaysia,
visitor spend by these markets has the potential to be worth over
AUD1 billion (EUR0.7 billion) by 2020: Japan*, Indonesia*, India*,
Germany, Middle East,
fast emerging: Brazil, Vietnam,
high priority: Italy, France.
In each key market, Tourism Australia targets specific consumer segments which
represent the best prospect for achieving the Tourism 2020 targets. Reaching
this customer is at the core of all of Tourism Australia’s consumer, distribution and
partnership marketing activities.
•
Youth - the youth segment is an important part of Australia’s visitor
mix. Youth contribute nearly AUD12 billion (EUR8.3 billion) annually
in tourism spending and represent a quarter of all Australia’s international arrivals,
44
Marketing Strategies for Tourism Destinations. Target market: USA
•
•
•
•
Experience Seekers are, by definition, looking for unique, involving
and personal experiences from their holidays,
the Cruise Industry - cruising is an important segment in Australia and
one that is significant to our tourism industry,
Aboriginal Tourism,
Luxury Tourism.
To do this they have gained greater insights in the past year to better understand
what motivates their target customers to visit Australia through their Consumer
Demand Research project, conducted in 11 key international markets plus Australia.
The research findings showed that potential visitors have high expectations of
Australia, and for those considering a repeat visit the destination’s biggest
strengths are its world class beauty, safety and welcoming people. These insights
will help to further shape and fine tune Tourism Australia’s marketing in order to
maintain Australia as a compelling proposition for travellers.
Tourism Australia operates from its headquarters in Sydney and maintains overseas offices in Canada, China, Hong Kong, India, Japan, Republic of Korea,
Malaysia, New Zealand, Singapore, the United Kingdom (covering the United
Kingdom, Ireland and Nordic countries) and the United States. It has representative offices in Brazil, France, Germany (covering Continental Europe) and Italy.
45
Beauty, safety and
welcome are primary
motivators for repeat
visitors
Marketing Strategies for Tourism Destinations. Target market: USA
The Brazilian
Tourism Sector
United States arrivals
in 2012 being
586,000, the second
largest individual
source market
International tourist arrivals in Brazil grew by 4.5% in 2012 and by a further 2.4%
in 2013 to reach 5.8 million. After strong growth in 2004 and 2005, arrivals plateaued, recording a rate of growth between 2005 and 2012 of slightly under 1% a
year71. Arrivals from fellow South American countries account for half of arrivals,
with Argentina the leading source country with 1.7 million arrivals in 2012. Europe
accounts for 29% of arrivals, leading countries being Germany, Italy, France,
Spain, Portugal and the United Kingdom. North American countries account
for one-in-eight arrivals with the number of United States arrivals in 2012 being
586,000, the second largest individual source market.
Brazil’s receipts from international tourism totalled US$6.7 billion (EUR5.1 billion)
in 2013, having grown from US$3.9 billion (EUR3.15 billion) in 200572, an average annual rise of 7% in US dollar terms, and at a slightly lower rate in Euros,
reflecting changing currency exchange rates over the period.
Travel and tourism’s
contribution to Brazil
GDP represented
3.5% in 2013
The direct contribution of Travel & Tourism to Brazil’s GDP in 2013 was BRL166.1
billion (EUR55.4 billion)73. This represents 3.5% of GDP. The World Travel and
Tourism Council forecasts that the level of contribution would rise by 3% in 2014
and by 3.9% a year between 2014 and 2024 reaching BRL250.2 billion (EUR83
billion), 3.7% of GDP. Adding in indirect contributions, brings the total travel and
tourism industry contribution to BRL443.7 billion (EUR149 billion) in 2013, a level
that is forecast to rise by 5.2% in 2014 and by an average annual rate of 4.1%
between 2014 to 2024 reaching BRL696.6 billion (EUR231 billion)74, over one
tenth of the country’s GDP.
Travel and tourism
directly supported 3
million jobs in 2013
Travel and tourism directly supported 3 million jobs in 2013, representing 3.0% of
total employment, with a further three quarters of a million jobs forecast to be
added by 2024; while adding on jobs supported by the industry brings the 2013
level to over 10 million by 2024, almost 10% of total employment in Brazil75.
71 UNWTO World Tourism Barometer, Volume 12, Statistical Annex. August 2014
72Ibid
73 Travel and Tourism Economic Impact 2014: Brazil. World Travel and Tourism
Council. http://www.wttc.org/site_media/uploads/downloads/brazil2014.pdf 74Ibid
75Ibid
46
Marketing Strategies for Tourism Destinations. Target market: USA
The Government of Brazil administrates and plans the development and operation of tourism through the Ministry of Tourism. The Ministry’s mission is to develop tourism as “a sustainable economic activity with a relevant role for the
generation of jobs and foreign currency and providing social inclusion”. It seeks
to be innovative in its handling of public policies with a decentralised management model, guided by strategic thinking76. The National Secretariat of Tourism
Policies has the role of carrying out the national policy for the sector, oriented by
the directives from the National Council of Tourism. In addition, it is responsible
for the internal promotion and oversees the quality of provision of the Brazilian
tourism service. The National Secretariat of Programs for the Development of
Tourism is responsible for subsidising the formulation of plans, programmes and
actions for the strengthening of national tourism. Its duties are infrastructure promotion and development, and the improvement of service quality77.
The 2013-2016 National Tourism Plan78 sets the target of 7.9 million international
tourist arrivals by 2016, an increase of 8% a year from the 6.2 million in 2013.
Visitor spending is expected to increase to US$10.34 billion (EUR7.6 billion), or
of 12% a year. Formal employment in the sector should rise to 3.6 million (an increase of 7% per year). The Plan targets taking Brazil to 3rd position in the world
tourist economy by 2022. In the soccer World Cup period of June/July 2014, Brazil expected to receive 600,000 foreigners and benefit from 3.1 million domestic
trips.
The new Plan builds on the 2012-2015 plan’s strategic guidelines79 of:
•
•
•
•
•
•
•
expanding participation and dialogue with society,
generating job opportunities and entrepreneurship,
reducing social and regional disparity,
promoting sustainability,
providing incentives for innovation and knowledge,
establishing regionalisation as a territorial reference for planning,
undertaking continuous monitoring and evaluation of the process.
The objectives are to:
•
•
•
•
•
encourage domestic travel by Brazilians,
increase international tourist arrivals and spending in Brazil,
increase Brazil’s competitiveness,
strengthen the decentralised management of tourism,
prepare Brazilian tourism for more mega events, following the soccer World Cup of 2014 and the Cup America and Summer Olympics
scheduled for 2015 and 2016 respectively.
76 Ministerio do Turismo: The Mission http://www.turismo.gov.br/turismo/ingles/
77Ibid
78 Brazilian Government’s National Tourism Plan http://www.resonanceco.com/Library/
brazilian-governments-national-tourism-plan/
79 OECD Tourism Trends and Policies 2012 Brazil. http://www.keepeek.com/
Digital-Asset-Management/oecd/industry-and-services/oecd-tourism-trends-andpolicies-2012/brazil_tour-2012-43-en#page5
47
The National
Tourism Plan set a
target of 7.9 million
international tourist
arrivals by 2016
Marketing Strategies for Tourism Destinations. Target market: USA
EMBRATUR, the Brazilian Tourism Institute - was established in 1966 with the
objective of fostering tourism activity by making feasible the conditions for the
generation of jobs, income and development throughout the country. With the
establishment of the Ministry of Tourism, its role changed to the promotion, marketing and support for tourism destinations and product and service operators.
The Aquarela
Plan calls for
generating consumer
awareness about
Brazil and attracting
more tourists
The Brazilian Federal Government and EMBRATUR have implemented the
Aquarela Plan which calls for generating consumer awareness about Brazil and
attracting more tourists. The international tourist marketing strategy sets forth
goals and objectives over the next decade outlining work highlighting five key
areas:
•
•
•
•
•
sun and beach,
eco-tourism,
culture,
sports,
business/events.
A series of Brazilian Tourism Offices have been established abroad, a dedicated
management team established to support the uptake and promotion of international events in Brazil, and public relations activities programme undertaken to
build a closer relationship with the media.
The budget for international marketing of Embratur in 2011 was placed at BRL180
million (EUR78 million), a 40% increase when compared to 200980.
The Aquarela Plan
has the vision of
Brazil as a country
with great natural
and cultural diversity
The Aquarela Plan has the vision of Brazil as a country with great natural and
cultural diversity, with a distinctive identity. It sees Brazil as a modern country and
a model for sustainability. Its aims are:
1. To show Brazil as a continental, immense country, with a great diversity of product/experience offers for a range of market segments,
2. To develop architecture for the Brazil brand based on four axes:
• Brazil destination, an umbrella identity that encapsulates the desired global positioning for the country as a tourist destination, and
focussed on the key most beneficial segments for Brazil,
• Brazil products, through the support of, and partnership with, the
international tourism private sector groups e.g. airlines, tour operators, hotel groups, event organisers etc. with products/services
in Brazil,
• To prioritise the strengthening of the Latin American market
as source markets for Brazil, keeping the strategy of variation of
European and North American markets,
• To enhance the competitiveness of Brazil through increased
accessibility from three source regions: neighbouring markets,
intercontinental markets (including Western Europe, the United
States and Canada) and very distant markets (namely China, Japan and Australia).
80 Brazil prepares for Olympic-scale expansion. October 2010. http://www.ttnonline.
com/Article/10359/Brazil_prepares_for_Olympic-scale_expansion
48
Marketing Strategies for Tourism Destinations. Target market: USA
Based on the vision and aims, the positioning (or comparative image) for Brazil
as a tourist destination was specified in the Aquarela Plan. From a focus of differentiating itself from its main Latin American competitors, Brazil is now competing
with a wider network of destinations, according to different values and strengths,
as illustrated in Figure 20.
Brazil is now
competing with a
wider network of
destinations
Figure 20: Global Position of Brazil
Source: Aquarela Plan 2020
As indicated in the aims of the Aquarela Plan, Brazil is seeking both to consolidate its strength in fellow Latin American markets while developing all significant
long haul markets with special emphasis on North America, Western Europe and
Asia. The global publicity associated with the soccer World Cup and the forthcoming Summer Olympic games gives high exposure to Brazil in these markets
and represent the foundation on which Embratur will build its future marketing
efforts to meet the ambitious goals set in the 2013-2016 National Tourism Plan.
The five areas outlined in section 3.3. will be the key targets. Niches such as gastronomy, luxury, adventure, afro-ethnic, and GLBT (gay, lesbian, bisexual, transsexual) tourism are also being promoted in the United States market.
Embratur changed its approach to its overseas network in 2013, opening 13 Brazilian Tourism Offices in four continents; Europe (The Netherlands, Germany,
Spain, France, Italy, Portugal and the United Kingdom), North America (3 offices
in the United States - New York, Chicago and Los Angeles), South America (Argentina and Peru) and Asia (Japan).
The offices will function as real embassies for Brazil’s tourist attractions, gathering information which will be available to operators, travel agents and end consumers, in order to increase their influence on tourists’ choice of destination at
the time of planning their trip. The offices will also support Embratur agencies’
marketing and PR actions abroad providing more accurate information about
market trends.
49
The global publicity
associated with the
soccer World Cup
and forthcoming
Olympic games gives
high exposure to
Brazil
Marketing Strategies for Tourism Destinations. Target market: USA
The People’s
Republic of
China Tourism
Sector
China received 56
million international
tourist arrivals in
2013
China received 56 million international tourist arrivals in 2013, a decline of nearly
4% over 2012. Between 2005 and 2013, arrivals grew at the average annual
rate of 2%, a period when it consolidated its 4th place in the international tourism
destination rankings81. These figures include arrivals from the Special Administrative Regions of Hong Kong and Macau as well as from Taiwan, with the level of
foreign tourists amounting to 20.8 million in 2013, a fall of 5.2% over the previous
year. However, the average annual rise in foreign tourist arrivals (i.e. excluding
those from the special administrative regions and Taiwan) between 2005 and
2013 was near to 5%, demonstrating the strength of demand.
Travel from Hong
Kong and Macao
accounts for over
80% of all visitors to
China
Travel from Hong Kong and Macao to China accounts for over 80% of all visitors
to China, and for over 62% of overnight international tourists. Travel from the
United States and Western Europe makes up to 1.6% and 1.2% respectively of
total arrivals, with increases over the period from 2008 to 2012. The United States
is the fourth largest foreign market, with the number of arrivals having grown by
24% between 2009 and 2012, though a fall of 1.5% was recorded in 2013 to a
level of 2.1 million.
The Republic of
Korea and Japan are
the leading markets
for China
Excluding Hong Kong, Taiwan and Macao, the leading markets for China are the
neighbouring countries of the Republic of Korea and Japan. The United States is
the 4th most important source market for China, but ranks as the 2nd leading nonAsian market after Russia. United States tourist arrivals exceeded 2 million in
2013, a fall of 1.5% over 2012. Between 2006 and 2013, United States arrivals
have risen by an average of just over 1%, around half the overall international
tourist arrival level of around 2% since 200582.
Between 2005 and
2013 China’s tourism
receipts rose by over
7% a year
International tourism receipts amounted to US$51.7 billion (EUR38.9 billion) in
2013, a rise of 3.3% over 201283. Between 2005 and 2013, China’s receipts rose
by over 7% a year in US dollar terms (but by over 11% a year in local currency as
a result of the fall in the value of the Chinese Yuan Renminbi over the period).
China is placed 4th in the international tourism receipts table, as in respect of arrivals, after the United States, Spain and France.
81 UNWTO World Tourism Barometer, Volume 12, Statistical Annex, August 2014.
82 China Tourism http://www.travelchinaguide.com/tourism/
83 UNWTO World Tourism Barometer, Volume 12, Statistical Annex, August 2014.
50
Marketing Strategies for Tourism Destinations. Target market: USA
The direct contribution of Travel & Tourism to Chinese GDP in 2013 was
CNY1,487billion (EUR180 billion)84. This represents 2.6% of GDP. The World
Travel and Tourism Council forecasts that the level of contribution will rise by
8.1% to over CNY1,600 billion (EUR193 billion) in 2014, and to CNY3,273 billion
(EUR395 billion) by 2024, at constant 2013 prices, an average annual growth
of 7.4%. The value of the direct contribution primarily reflects the economic
activity generated by industries such as hotels, travel agents, airlines and other
passenger transportation services (excluding commuter services), but it also
includes the activities of the restaurant and leisure industries directly supported
by tourists. Adding in indirect contributions, brings the total to CNY5,229 billion
(EUR631 billion) in 2013 and a forecast level of CNY11,888 billion (EUR1,435
billion) by 2024, at 2013 values.
Travel and tourism directly supported almost 23 million jobs in 2013, representing 3.0% of total employment, with a further 4 million jobs forecast to be added
by 2024; while adding on jobs supported by the industry brings the 2013 level to
almost 64 million, with a further 29 million anticipated by 202485.
The China National Tourism Administration (CNTA) is responsible for tourism,
directly affiliated to the State Council. Its main responsibilities are86:
1. Plan and coordinate the development of the tourism industry, prepare
development policies, programmes and standards, draft up relevant
laws and regulations and supervise the implementation, as well as
guide regional tourism,
2. Establish and organise the implementation of market development
strategies for domestic tourist, inbound tourism and outbound tourism, organise external publicity and significant promotional activities
on the overall image of China’s tourism. Guide the work of China’s
tourist institutions stationed abroad,
3. Organise the survey, planning, development and protection of tourism
resources. Instruct the layout and development of key tourist regions,
tourism destinations and tourist routes and guide the leisure vocation
industry. Supervise the operation of tourist economy and take charge
of tourist statistics and release of trade information. Coordinate and
instruct the Holiday Tourism and the Red Tourism,
4. Normalise the order of the tourist market, supervise and manage
the service quality and maintain legal rights and interests of tourism
consumers and operators. Normalise the operation and services of
tourist enterprise and practitioners. Organise the drafting of standards on tourist regions, tourist services and tourist products, etc., and
organise the implementation. Take charge of the overall coordination,
supervision and management of tourist safety and emergency rescues. Guide the construction of the ideological infrastructure and the
credibility system as well as operations of trade organisations,
84 Travel and Tourism Economic Impact 2014: China. World Travel and Tourism
Council. http://www.wttc.org/focus/research-for-action/economic-impact-analysis/
country-reports/
85Ibid
86 CNTA In Brief http://en.cnta.gov.cn/about/Forms/AboutCnta/CNTAInBrief.shtml
51
Marketing Strategies for Tourism Destinations. Target market: USA
5. Promote the international communication and cooperation of tourism
and take charge of affairs relating to the cooperation with international tourist organisations. Establish policies on outbound tourism
and border tourism and organise the implementation. Examine and
approve foreign travel agencies established in China, examine the
market access qualifications of foreign-invested travel agencies and
travel agencies engaged in international tourism, examine and approve overseas (outbound) tourism and border tourism cases. Take
charge of affairs on special tourism,
6. Establish policies on travel to Hong Kong, Macao & Taiwan and organise the implementation, guide the promotion of tourist markets
in Hong Kong, Macao & Taiwan. Take charge of affairs on Mainland
residents travelling to Hong Kong, Macao & Taiwan, examine and
approve travel agencies of Hong Kong, Macao & Taiwan established
in the Mainland, examine the market access qualifications of travel
agencies with investments of Hong Kong, Macao & Taiwan,
7. Organise and instruct tourism education and training, stipulate the
vocational qualification system and ranking system for tourism employees with relevant authorities and supervise the implementation,
8. Undertake other issues assigned by the State Council.
China has embarked
on a new era in
tourism
Roadmap for the
restructuring of the
current paid leave
system
China has embarked on a new era in tourism in its national agenda following the
release by the State Council of China of The Outline for National Tourism and Leisure (2013-2020)87, aimed at bringing about the complete redefinition of tourism
development and management in the country, spark an increase in Chinese outbound tourism and promote a greater distribution of the economic, socio-cultural
and environmental benefits of tourism. It presents a roadmap for restructuring the
current paid leave system across China and outlines the technical, multi-sector
aspects of creating a more productive environment for sustainable tourism development and management in the country.
Its release comes four years after the tourism sector in China was acknowledged
as a ´pillar´ industry of modern services, recognizing its role as one of the major
social and economic industries on the government´s agenda.
The successful implementation of the Outline will lead to both a further boost to
Chinese inbound tourism (and domestic tourism), and to Chinese outbound tourism around the world.
Among the tasks and measures contained in the Outline are88:
•
•
•
improvements and ready access to parks, museums etc.,
increased and improved infrastructure e.g. recreation belts and distinctive tourism villages, family inns and budget hotels, motels and
camping facilities, ports for cruise ships and yachts, better protected
parks and forests, increased disabled access,
product development and activity e.g. encouragement of rural holidays close to cities, development of recreation and leisure activities
such as cycling tourism, self-drive, sport and fitness tourism, medical and healthcare tourism, hot spring and snow tourism, cruise and
yacht tourism, and focus on traditional culture,
87 China’s New Landmark Strategy. http://asiapacific.unwto.org/en/news/201303-21/china-s-new-landmark-tourism-strategy-outline-national-tourism-andleisure-2013-2020
88 Notice on the Publication of The Outline for National Tourism and Leisure (20132020) by the General Office of the State Council
52
Marketing Strategies for Tourism Destinations. Target market: USA
•
•
•
•
•
•
facilities for different market segments (such as seniors, women,
children, people with disabilities, rural population) including urban leisure, city sightseeing, cultural recreation, popular science education,
cultural performance, healthcare and fitness, shopping,
practical and convenient information service system through signage,
information points, website development,
improved service quality standards through education, training and
supervisory programmes,
strong leadership and organisation involving clear guidance and liaison with local administrations on the development and management
of their tourism sectors, to ensure that tourism and leisure development is fully incorporated into economic and social development
plans at all levels,
investment in public service infrastructure for tourism and leisure, and
encouragement of private sector investment in facility and product
development,
strong supervision and regulation.
The China National Tourism Authority undertakes destination marketing through
its network of China National Tourist Offices. The CNTO seeks to work closely
with the travel trades in key generating markets through participation at exhibitions and fairs, and promotions.
CNTA undertakes
destination marketing
through its network
of offices
To strengthen international cooperation in tourism, and to promote the recovery
of inbound tourism, CNTA has undertaken a number of large-scale overseas promotional programmes, and organised the successful Sino-Russia Tourism Year
in 201289, with the reciprocal Tourism Year taking place in the following year.
The CNTO overseas offices are non-profit government organisations. Their mission is to develop and promote all aspects of tourism to China within their given
territories. They are responsible for educating both the general public and the
travel industry about China.
The total CNTA budget in 2012 CNY240.5 million (EUR38.5 million), drawn from
central and local governments, funded in part by allocations from the Tourism
Development Fund made up from the CNY20 (EUR2.4 ) charge on all outbound
travellers.
The focus of the CNTA destination marketing activities are travel trade shows,
consumer shows, seminars, familiarisation trips and other ongoing promotions.
The CNTO offices assist travel agents and tour operators in selling China by providing them with sales tools, including travel brochures, videos, displays, maps,
magazine advertising and general information to the public.
Buoyed by the success of the tourism exchange programmes with Russia over
the past two years, the CNTA is expected to make stronger efforts to promote
China as an ideal travel and tourism destination by launching a series of similar
marketing activities90.
89 OECD Tourism Trends and Policies 2014
90 Travel and tourism inbound in China http://www.euromonitor.com/tourism-flowsinbound-in-china/report
53
CNTA budget in
2012 CNY240.5
million (EUR38.5
million), drawn from
central and local
governments
Marketing Strategies for Tourism Destinations. Target market: USA
Chinese tourism
authorities have been
slow to embrace
Facebook, Twitter
and YouTube
There is criticism in the Chinese media and travel trade of the China destination
website. In the face of intense competition from neighbouring Asian countries,
foreign travellers’ online searches for Chinese tourism destinations are increasing much more slowly than for its competitors e.g. the year-on-year growth of
the search for Chinese destinations was only 7% in 2012, while the growth for
India was 21% and Thailand was 19%91. Chinese tourism authorities have been
slow to embrace Facebook, Twitter and YouTube, but the designation of 2014 as
the Year of Smart Travel suggests a possible intention to use social media more
extensively.
A constant in the CNTA’s marketing has been the naming of each year with a specific theme. Starting with “Friendly Sightseeing Year” in 1992, the past two years
have been called respectively “China Ocean Tourism Year” and “Beautiful China”.
WTTC advised
that China should
promote the country
as a whole
In launching the WTTC report92, President and CEO, Mr David Scowsill advised
that China should promote the country as a whole, instead of a group of individual
provinces.93
The CNTO is actively promoting China in the 16 key markets where it maintains
offices i.e. the United States, Canada, the United Kingdom, France, Germany,
Italy, Spain, Switzerland, the Russian Federation, Singapore, India, Nepal, Australia, Republic of Korea, Japan, and Hong Kong.
The CNTA operates 18 offices in 16 countries with double representation in the
United States (Los Angeles and New York) and Japan (Osaka and Tokyo). Most
of these are China National Tourist Offices but in Osaka it operates as the CNTA
itself and in Hong Kong through Asia Tourism Exchange Centre.
91 China lags behind in inbound tourism. July 2013. http://news.xinhuanet.com/
english/china/2013-07/27/c_132578913.htm
92 Travel and Tourism Economic Impact 2013: China. World Travel and Tourism
Council. http://www.wttc.org/site_media/uploads/downloads/china2013.pdf
93 China must ramp up for inbound tourism China Daily USA March 2014 http://usa.
chinadaily.com.cn/epaper/2014-03/19/content_17359504.htm
54
Marketing Strategies for Tourism Destinations. Target market: USA
The South
African
Tourism Sector
International tourist arrivals in South Africa in 2013 totalled 9.5 million, a rise of
3.8% over the previous year94. This makes South Africa the 30th largest tourist
receiving country in terms of tourist arrivals. The increase in 2013 maintains the
average annual rate of growth recorded between 2005 and 2013.
International tourist
arrivals in South
Africa totalled 9.5
million in 2013
International tourism receipts amounted to US$9.2 billion (EUR7 billion) in 201395.
While this represents a fall of 8.7% in US dollar terms, the sharp fall of the South
African rand between 2012 and 2013 – 17.7% and 21.6% respectively against
the US$ and the Euro - translated into a rise of 8.7% in local currency.
The principal source countries for South Africa are neighbouring African states
while the outside Africa the leading markets are the United Kingdom (442,000 in
2013), the United States (349,000), Germany (304,000), and China (151,000)96.
The World Travel and Tourism Council forecasts that the level of contribution
would rise by 4.3% in 2014, and to ZAR158 billion (EUR16 billion) by 2024, at
constant 2011 prices, an average annual growth of 4%. Direct and indirect contributions sum up to ZAR323 billion (EUR25 billion) in 2013 and a forecast level of
ZAR478 billion (EU37 billion) by 2022, at 2013 values.
Travel and tourism directly supported 645,000 jobs in 2013, representing nearly
5% of total employment, with a rise to 840,000 jobs predicted in 2024. Adding on
jobs indirectly supported by the industry brings the 2013 total to over 1.4 million,
with a further 3.8 million jobs forecast to be added by 2024, bringing the total employment generated by the tourism industry to 1.8 million in 2024, 10.8% of the
Republic’s total employment97.
The Department of Tourism is the government body responsible for the planning,
management, administration and regulation of the tourism industry.
94 UNWTO World Tourism Barometer, Volume 12, Statistical Annex, August 2014.
95Ibid
96 http://www.southafrica.net/uploads/files/Tourists_Table_A_DEC2013_12052014_1.
pdf
97Ibid
55
The direct
contribution of Travel
& Tourism to South
Africa GDP in 2013
was ZAR103 billion
(EUR8 billion). This
represents 3% of
GDP
Marketing Strategies for Tourism Destinations. Target market: USA
The Department of Tourism operates as a catalyst for tourism growth and development in South Africa. Its mission is stated98:
“As a strategy focused department, we are committed to creating a conducive environment for growing and developing tourism through:
•
•
•
•
Goal is for South
Africa to be a top 20
destination by 2020
innovation,
strategic partnerships and collaboration,
providing information and knowledge management services,
strengthening institutional capacity”​.
The 2011 National Tourism Sector Strategy sets the goal of South Africa being a
top 20 destination in the world by 2020. Its mission is to significantly grow a sustainable tourism economy with domestic, regional and international components,
based on innovation and service excellence, meaningful participation and partnerships99.
The strategy is premised on the values of mutual trust; accountability; respect for
our culture and heritage; responsible tourism; transparency and integrity; service
excellence; upholding the values of our Constitution; a commitment to transformation, and flexibility and adapting to change100.
The National Tourism Sector Strategy101 has three broad themes, as follows:
THEME 1:
• to grow the tourism sector’s absolute contribution to the
Tourism Growth
economy,
and the Economy • to provide excellent people development and decent
work within the tourism sector,
• to increase domestic tourism’s contribution to the tourism
economy,
• to contribute to the regional tourism economy.
THEME 2: An
• to deliver a world-class visitor experience,
Enhanced Visitor • to entrench a tourism culture among South Africans,
Experience
• to position South Africa as a globally recognised tourism
destination brand.
THEME 3:
Sustainability
and Good
Governance
• to achieve transformation within the tourism sector,
• to address the issue of geographic, seasonal and rural
spread,
• to promote ‘responsible tourism’ practices within the
sector,
• to unlock tourism economic development at a local government level.
98http://www.tourism.gov.za/Pages/Home.aspx
99 National Tourism Sector Strategy 2011. http://www.tourism.gov.za/AboutNDT/
Publications/National%20Tourism%20Sector%20Strategy%20Executive%20
Summary.pdf
100Ibid
101Ibid
56
Marketing Strategies for Tourism Destinations. Target market: USA
A series of Strategic Clusters and Thrusts are set out, each with strategic gaps
identified and actions specified to address these gaps:
CLUSTER 1:
Policy, Strategy,
Regulations,
Governance, and
Monitoring and
Evaluation
•
•
•
•
research, information and knowledge management,
policy and legislative framework,
collaborative partnerships,
prioritising tourism at national, provincial and local government level.
CLUSTER 2:
CLUSTER 2.1:
Tourism Growth Tourism
and Development Growth and
Development –
DEMAND
CLUSTER 2.2:
Tourism
Growth and
Development –
SUPPLY
•
•
•
•
marketing and brand management,
domestic tourism,
regional tourism,
business and events tourism.
• relevant capacity building,
• niche-product development and rural
tourism,
• product information,
• responsible tourism,
• investment promotion,
• quality assurance.
CLUSTER 3:
People
Development
•
•
•
•
transformation,
decent work,
service excellence,
community beneficiation.
CLUSTER 4:
Enablers of
Growth
•
•
•
•
•
general tourism awareness among South Africans,
safety and security,
international and regional airlift,
ground transportation,
domestic airlift.
South Africa Tourism (SAT) is the government agency responsible for international and domestic marketing of South Africa as well as for information management
in consultation with provincial tourism authorities. It is under the National Ministry
of Tourism and reports through its board to the Minister.
The SAT board engages the Chief Executive Officer (CEO). SAT has five divisions as follows:
•
•
•
•
•
finance,
quality assurance,
operations, human resources and research,
Convention Bureau,
marketing.
57
SAT is the
government agency
responsible for
international and
domestic marketing
Marketing Strategies for Tourism Destinations. Target market: USA
Marketing is the largest division. Under the Chief Marketing Officer there are
ten departments for Africa, Asia and Australia, Europe and the United Kingdom,
Americas, Southern Africa, global campaigns, watch list markets, product, communications and e-marketing.
There are eleven non-executive board members most of whom are from the private sector, and two executive board members, the CEO and Chief Financial
Officer. SAT operates a Forum for Business to drive private sector’s contribution
to the implementation of national strategy. It also has a Government Forum, a
Knowledge Group (covering research) and a Communications Forum.
The Tourism
Business Council of
South Africa is a key
private sector partner
A key private sector partner in marketing South African tourism is the Tourism
Business Council of South Africa (TBCSA): TBCSA has initiated the Tourism Marketing South Africa (TOMSA) levy, which directly funds marketing initiatives, generally in partnership with SAT.
SAT also has an ongoing partnership with the national carrier, South African Airways.
SAT’s mission is
the development
and implementation
of a world-class
international tourism
marketing strategy
SAT’s mission is stated as the development and implementation of a world-class
international tourism marketing strategy for South Africa. In pursuance of this
mission, SAT will:
•
•
•
•
facilitate the strategic alignment of the provinces and industry in support of the global marketing of tourism to South Africa,
remove all obstacles to tourism growth,
build a tourist-friendly nation,
ensure that tourism benefits all South Africa102 .
SAT had an operating budget of ZAR912 million (EUR70 million) in 2013, of
which ZAR759 million (EU59 million) was spent on international activities including marketing. In 2012 the overall budget was ZAR820.5 million (EUR79 million)
and international and domestic marketing activity accounted for ZAR 772 million
(EUR75 million). Note: the South African rand fell by a fifth against the Euro between 2012 and 2013.
Tourism promotion is
funded primarily by
the TOMSA levy
Tourism promotion is funded primarily by the Tourism Marketing South Africa
(TOMSA) levy. Since its inception in 1998, TOMSA has grown from collecting
ZAR9.9 million in 1999 (EUR1.6 million) with less than 50 collectors, to collecting
in excess of ZAR90 million (EUR9.8 million) in 2011. The marketing of destination
South Africa has increased dramatically over the same period.
Currently, the TOMSA levy is collected from four sectors namely accommodation,
car rental, tour operator and travel agencies, who collect levy as follows:
•
•
•
•
accommodation – 1% of room rate,
car rental – 1% of vehicle booking,
travel agency – 1% of service fee,
tour operator – R3 per tour booking.
102 South African Tourism Annual Report 2009/10
58
Marketing Strategies for Tourism Destinations. Target market: USA
Representative associations receive a 10% monthly commission of the TOMSA
levies collected from members recruited by the associations.
South Africa is described as ‘a world in one country’, and presents the visitor a
breathtaking variety of scenery, from desert and lush forest, to soaring mountains
and vast empty plains. Culturally diversity is also promoted and visitors are drawn
to experience for themselves the post-apartheid ‘rainbow nation’. Others are attracted by the golden beaches, big game, and activities such as diving and snorkelling, or bird-watching. There is a national brand, Brand South Africa which
aims to increase familiarity and knowledge of South Africa as a viable, world
class and profitable business destination in targeted international trade, investment and tourism markets. It supports SAT strategy.
South Africa is
described as ‘a world
in one country’
SAT’s marketing blueprint is actively focussed on improving conversion ratios by
brand, increasing awareness and positivity that results in improved closure ratios
in core markets. Marketing plans focus on protecting South Africa’s leadership in
the wildlife and adventure segments, supported by hospitality, design/art and
welcoming people. SAT aims to develop a stronger “emotional connection” with
consumers.
Marketing plans
focus on protecting
South Africa’s
leadership in
the wildlife and
adventure segments
SAT participates in major travel shows; co-ordinates advertising, public relations
and direct mailing campaigns; and holds educational work sessions with the international partners of South Africa’s travel industry. Furthermore, the organisation is active in promoting South Africa as a destination for Business Events
through its National Convention Bureau (launched in 2012).
The global campaign is driven online with a 360º integrated portal on www.southafrica.net, where consumers learn more about the different experiences and benefits of a journey through South Africa. SAT communicates its brand message on
National Geographic, CNN and SuperSport Africa, reaching over one billion consumers. Media reach gaps in the United Kingdom, Germany, India, China and
Australia markets are complemented by global cinema buys, train wraps and
outdoor activations, supplemented by in-country marketing activities through
SAT’s representatives.
The global campaign
is driven online
through
www.southafrica.net
To enhance global media campaigns, search-engine optimisation (SEO), social
media, online media, websites, mobi sites and online applications are used. Public relations and communications form an integral part of campaigns. In e-marketing SAT operates partnerships with leading online travel players such as TripAdvisor, WAYN.com and Expedia. These are supplemented by platforms such as
Google Adwords, Lastminute.com, YouTube, Opodo, E-bookers, CNN, NatGeo
and a number of others.
SAT operates
partnerships with
leading online travel
planners
59
Marketing Strategies for Tourism Destinations. Target market: USA
SAT currently markets the tourism destination with the following priorities:
Core markets
• France,
• Germany,
• Netherlands,
• United Kingdom,
• Australia,
• China,
• India,
• Brazil,
• United States,
• Africa - Angola, Kenya,
Mozambique, Nigeria,
and Tanzania, being
identified by SAT as
representing the greatest
potential,
• Domestic.
Investment Market
• Italy,
• Russia,
• Japan,
• Republic of Korea,
• Canada,
• Africa - Botswana, DRC, Ghana,
Lesotho, Uganda,
Zimbabwe.
Tactical Markets
• Switzerland,
• Singapore,
• Africa - Namibia, United Arab
Emirates, Zambia,
• Watch-list Markets,
• Austria,
• Belgium,
• Denmark,
• Finland,
• Norway,
• Spain.
SAT has eleven overseas country offices namely Amsterdam (Netherlands), Beijing (China), Frankfurt (Germany), London (United Kingdom), Milan (Italy), Mumbai (India), New York (United States), Paris (France), Sydney (Australia), Luanda
(Angola) and Tokyo (Japan). A further two offices, Brazil and Nigeria, are in the
process of being opened.
60
Marketing Strategies for Tourism Destinations. Target market: USA
The United
States
Tourism Sector
Total visitation to the city of Los Angeles and the surrounding metropolitan area
reached a record level in 2013 of over 42 million. Of these, over 36 million were
domestic travellers and 6 million were from foreign countries. Domestic arrivals
rose by 2% in 2013 following a growth of 2.7% in 2012. Total international visitation set a record with 6.2 million visitors, a 2.6% percent increase over 2012.
Total visitation to Los
Angeles reached a
record of 42 million in
2013
According to LATCB officials, tourists spent about US$16.5 billion (EUR12.7 billion), generated US$30.5 billion (EUR23.5 billion) in economic benefit, and supported 340,000 jobs in Los Angeles in 2012103.
Tourism is one of the key sectors in the development of the economy of the City
and County of Los Angeles. Two of the objectives stated in the Los Angeles
County Economic Development Corporation‘s Strategic Plan for Economic Development 2010-2014104 are:
•
•
Tourism is one of the
key sectors in the
development of the
economy of LA
create employment and business opportunities for local firms by supporting the development of international trade, tourism, and by promoting Los Angeles County as a destination for foreign direct investment,
encourage and expand cultural and artistic amenities that celebrate
our diversity and attract local and global patrons.
The LATCB is a private, non-profit business association whose primary mission
is to market and promote Los Angeles as the premier site for leisure travel, meetings and conventions as the City’s official tourism marketing organisation. It has
a variety of public and private representation – from hotels, attractions, airlines,
airports and TV channels.
The LATCB operates a structured partnership scheme with two tiers: Promotional
Partners (Amex, Expedia, hotels.com, LA Live, Universal); and Strategic Partners (American Airlines, Amex, Amtrak, La Live, Metro, Universal, Wells Fargo).
10342.2.million people visited Los Angeles in 2013. http://www.kcet.org/living/travel/
travel-news/422-million-people-visited-los-angeles-in-2013.html
104Los Angeles County Strategic Plan for Economic Development 2010-2014 http://
laedc.org/documents/LACountyStrategicPlanforED.pdf
61
LATCB is a private,
non-profit business
association
Marketing Strategies for Tourism Destinations. Target market: USA
The mission of
LATCB is to advance
the prosperity of LA’s
visitor economy
The mission of the LATCB is to advance the prosperity of L.A.’s visitor economy
and the livelihoods that depend on it. This is achieved by sales and marketing
to the principal segments of both the domestic and international travel trade and
consumer. In particular, L.A. Tourism represents the L.A. destination to the meetings and convention industry nationwide; the international travel trade and traveller; the cruise passenger and cruise lines; the domestic leisure traveller; as well
as the worldwide travel media105.
Total funding for the financial year 2012-2013 was US$32.9million (EUR25 million), sourced from the City Tourism Occupancy Tax 39%, Tourism Marketing
Tax 41%, Co-op & Sponsorships 9%, Los Angeles Airports 8%, and Membership
Fees 4%106.
Marketing spend was
US$22.7 million
Marketing spend in the year ending June 2013 was US$22.7million (EUR17.2
million)107.
Brand Overview details given at the Los Angeles Tourism Market Outlook Forum108:
Our Position: Endless Entertainment
The identity of Los Angeles - it’s interesting to look at what we are by looking
at what we’re not:
Los Angeles is NOT:
•
•
•
•
•
•
•
one thing,
playing it safe,
nostalgia,
monuments,
standing still,
one moment in time,
Europe.
The focus for LATCB:
•
•
•
•
domestic travel is 85% of the visitors, however international travellers
spend 92% more money,
last year, LATCB focussed on top six feeder markets, which is 40%
of total visitors,
discoverlosangeles.com has been relaunched,
DineLA grew into the largest restaurant week in America.
105Los Angeles Tourism and Convention Board. http://www.discoverlosangeles.com/
tourism
106LATCB Annual Report FY 12-13 http://www.discoverlosangeles.com/content/annualreport-fy-12-13
107Ibid
108Los Angeles Tourism Market Outlook Forum http://www.heilbrice.com/los-angelestourism-market-outlook-forum-don-skeoch-cmo-latcb/
62
Marketing Strategies for Tourism Destinations. Target market: USA
For 2014:
•
•
•
•
a tighter focus on the international markets that matter, focussing on
China,
domestic markets,
• continue “You think you know me”,
• increase leisure opportunities with a focus on on-line travel agencies,
• capitalise earned media opportunities,
the “Culture of Tourism” for LA residents,
research into tourism to drive strategic planning.
Measures of Success for LATCB:
•
•
increase room nights,
increase web site visitation.
Target Markets:
•
•
•
entertainment seekers across the socio-demographic spectrum
based on the positioning of endless entertainment,
arts and culture, including the culinary scene, arts and culture,
LGBT (lesbian, gay, bisexual, transsexual).
The LATCB Brand Marketing team globally promotes the endless entertainment
experience inherent in Los Angeles, highlighting its unique dining, shopping,
entertainment and cultural offerings, and promoting stays at Tourism Marketing
District (TMD) and member hotels. LATCB brand advertising and marketing programmes were supported by promotional partners (e.g. American Express, Universal Studios HollywoodSM, L.A. LIVE, Expedia.com and Hotels.com), and supported through strong earned media (Public Relations) and owned media (Social
Media) tactics109.
The LATCB Brand
Marketing team
globally promotes
the endless
entertainment
experience
In February 2013, LATCB launched its new domestic spring advertising campaign through a series of three TV commercials, titled “You Think You Know Me,”
that ran in key domestic markets with a complementary digital campaign. The
campaign featured the breadth and depth of activity LA, supported by LA-based
celebrities who made cameos in the spots to illustrate that you never know what
celebrity you might have a “chance encounter” with when in LA110.
New domestic
advertising campaign
was supported by LA
based celebrities
The campaign was supported by national and key market publicity and included
a hotel promotion, in conjunction with Expedia.com, hotels.com and Orbitz.com
to drive hotel room nights. Its results included111:
•
•
•
•
•
more than 60,000 room nights,
gross bookings of nearly US$10.5 million (EUR7.8 million),
overall room night increase results up to 61% in participating hotels,
more than US$11 million (EUR8.1 million) in Earned Media,
6% increase in the intent to visit Los Angeles.
109 LATCB Annual Report FY 12-13 http://www.discoverlosangeles.com/content/
annual-report-fy-12-13
110 Ibid
111 Ibid
63
Marketing Strategies for Tourism Destinations. Target market: USA
Promotions - (by type, joint with private sector) included112:
•
•
Revamped website
grew year-on-year
traffic by 42%
dineLA Restaurant Week, with partner American Express, resulted in
US$31 million in spending,
Arts and Culture campaign, generated more than 26,000 hotel room
nights, over 60 million earned and paid media impressions, and
US$10.2 million (EUR7.6 million) in direct visitor spending.
DiscoverLosAngeles.com revamped website launched autumn 2012, grew yearon-year traffic by 42%. Features include: tips from local celebrities; map-based
neighourhood guides; experience builder for custom itineraries; events calendar;
3D virtual tours of convention centre and LA Live; special offers.
Social media: Facebook - first United States city tourist board to reach 1 million
followers; Twitter - 54,000 followers; Youtube - 758,000 views; Pinterest - 35,000
followers, 54 boards, 1,515 pins.
LATCB launched a year-long national LGBT advertising campaign with an emphasis on Southern California’s near-perfect weather and depth of cultural offerings, the top two reasons LGBT travellers choose a destination to visit. The
campaign was supported with a robust microsite and a group press trip for top
national LGBT media outlets113.
Representation throughout the United States, marketing offices in Tokyo, London
and Beijing, and some representation in Germany, Australia, Republic of Korea.
Greater Miami
attracted 14.2 million
overnight visitors in
2013
The domestic:
international market
split was even in
2013
Greater Miami and the Beaches attracted 14.2 million overnight visitors in 2013114,
a rise of over 2% over the level of 2012. The domestic:international split was
even in 2013, with 7.1 million from each source. Between 2009 and 2013, domestic visits increased by 3% a year, while the growth in overseas visitors grew
at the faster annual rate of 5.7%, producing an overall rise in overnight visitation
to the area of 4.5% over the period. The top domestic markets are: New York
(one-in-four domestic visits in 2013), Chicago (6%), Philadephia (5.6%), Boston
(4.3%), and Atlanta (3.9%). Neighbouring Mexico and Canada generate the largest numbers of international visitors in Los Angeles, at 1.7 million and 0.7 million
respectively in 2012. China, however, is the biggest driver of overseas visitation
recording rises in arrivals of 36% in 2012 followed by a further increase of more
than 21% in 2013 with arrivals rising to 0.55 million.
In 2013, visitors generated US$22.8 billion (EUR16.9 billion) in direct expenditures, though applying the conventional industry multiplier of 1.5, the direct
and indirect impact of expenditures exceed US$34.2 billion (EUR25.3 billion) to
the economy of Greater Miami, with around 30% of direct spending attributable
to domestic visitors115. The average daily spending of domestic visitors in 2013
was US$239 (EUR177) which, over the average stay in the area of 4.63 nights,
produces a total level of spending per visit made by United States residents of
US$1,106 (EUR819)116.
112 Ibid
113 Ibid
114 Greater Miami and the Beaches 2013 Visitor Industry Overview http://www.
miamiandbeaches.com/~/media/files/gmcvb/partners/research%20statistics/
annual_report_2013
115Ibid
116Ibid
64
Marketing Strategies for Tourism Destinations. Target market: USA
Chinese visitors are bigger spenders than visitors from all other international origins. According to federal statistics, Chinese tourists spend an average
of US$2,652 (EUR1,960) on each visit compared to the average of US$1,209
(EUR890) from all other foreign countries117.
Leisure and hospitality provided employment for 126,200 in Miami-Dade County
in 2013, almost one-in-every eight persons employed outside the agricultural
sector118.
Leisure and
hospitality provided
employment for
126,200 in 2013
The City of Miami Tourism, Culture and Economic Development Department was
established to centralise and unify the City’s tourism and cultural initiatives and
programmes. The Department supports, maintains and develops programmes,
which generate, satisfy and enhance the City’s cultural institutions and infrastructure, as well as the City’s cultural and tourist industries, while striving to provide
year-round tourism activity that enhances both the visitor’s experience and the
quality of life of the City’s residents119. The Department also partners with the Miami Beach Visitor and Convention Authority (VCA) and the Greater Miami Convention and Visitors Bureau (GMCVB)
to market and promote the City of Miami Beach as a destination.
The GMCVB is a private, not-for-profit sales and marketing organisation. It is a
private-public partnership with more than 1,000 private business members and
four local governments.
It is built on its relationships with private sector operators. Strategic partnerships
are with American Airlines, American Express TRS Co. Inc., Bank of America,
KPMG LLP, and Norwegian Cruise Line Ltd. 42 corporate sponsors are listed
in the Miami Vacation Planner. The GMCVB has a focus on partnerships with
airlines.
The mission of the City of Miami’s Tourism, Culture and Economic Development
Department is enriching the economic and cultural fabric of Miami Beach through
the support of tourism, production, and entertainment by fostering events and
cultural arts programming120.
The mission of the GMCVB is to attract, encourage and induce all persons and
organisations to visit Greater Miami and its Beaches for conventions, business
and pleasure. To this end, it promotes all segments of the community as a preferred destination; and supports and encourages actions and programmes that
enhance the desirability and attractiveness of Greater Miami and its Beaches for
its visitors.
117http://hmghotelsblog.com/2013/05/21/los-angeles-tourism-2013-hospitality-industrystatistics-new-construction/
118Greater Miami and the Beaches 2013 Visitor Industry Overview http://www.
miamiandbeaches.com/~/media/files/gmcvb/partners/research%20statistics/
annual_report_2013
119 Tourism, Culture and Economic Development. http://www.miamibeachfl.gov/tcd/
120 Ibid
65
GMCVB is a privatepublic partnership
with more than 1,000
private business
members
Mission is to enrich
the economic and
cultural fabric of
Miami beach
Marketing Strategies for Tourism Destinations. Target market: USA
GMCVB’s total
budget in 2012/2013
is estimated at
US$26 million
The GMCVB is allocated 13% of tourism taxes US$24.4 million (EUR18.5 million)
in 2012/13, with its total budget estimated at US$26.0 million (EUR19.7 million).
Details of the brand, positioning and activities are presented in the Greater
Miami Convention and Visitors Bureau Marketing Plan 2013/2014121. The
current brand positioning was born both of the necessity for evolution, and the
fundamental need to become not just an experiential brand, but a relevant, participatory, brand122.
The stated goals of GMCVB are to:
•
•
•
•
•
•
Objective is to
develop a marketing
programme that
reflects Miami’s
unique destination
experience
The priority target
is the sophisticated,
well-educated
consumer
implement strategic brand and tactical consumer advertising programmes, with an emphasis on integrated media programmes, outdoor media, and digital video,
increase the performance and efficiency of the GMCVB’s co-operative advertising programmes to increase partner bookings,
continue to evolve the GMCVB’s established digital properties, and
test innovative platforms,
engage and remarket to visitors and locals via mobile, digital and
targeted social marketing,
reinforce relationships through development of digital marketing resources that support key business-to-business audiences: partners,
travel agents, tour operators and meeting planners,
expand use of targeted marketing and analytics tools to optimise marketing programmes and identify opportunities for innovation.
A key objective is to develop an integrated marketing programme that reflects
Miami’s unique destination experience in order to attract and engage visitors and
local residents, and create affinity among our members and distribution partners.
The primary target customer for Greater Miami is a sophisticated, well-educated
consumer looking for the opportunity to experience Miami’s wide range of activities.
•
•
•
•
•
ages 25 to 64,
highly educated,
above-average income,
active lifestyle,
summer and shoulder season travellers.
In the domestic market, the primary geographic targets include Chicago, Boston,
Philadelphia, Washington, DC and Atlanta, with a heavy emphasis on the metropolitan New York market. New York is attracting international tourists from its traditionally strong markets in North America (i.e. Canada, Mexico) and Europe as
well as from developing markets in Asia and Latin America, where it has expanded its tourism marketing efforts. Its leading international markets in 2012 were:
Canada 1.1 million visitors, United Kingdom 1.0 million, Brazil 0.8 million, France
0.7 million, Germany and Australia both 0.6 million, China just over half a million.
121 Marketing Plan 2013/2014 http://www.miamiandbeaches.com/~/media/files/gmcvb/
guides%20-%20pdfs/13-14-mktng-plan
122 Ibid
66
Marketing Strategies for Tourism Destinations. Target market: USA
Marketing programmes are developed for separate segments i.e. Cultural Tourism & LGBT, Heritage Tourism, Boutique & Lifestyle Hotels / Film, Fashion & Entertainment; while campaigns are undertaken targeted at media, travel industry,
convention sales and partnerships development.
Goals- Advertising and Digital Marketing: to increase overnight visitors and
attendant visitor resort, sales, food & beverage taxes, and jobs through optimum
occupancy and highest possible room rates. This goal is supported by developing and implementing strategies and tactics that continue to develop and implement a brand image while targeting high-value consumers about the diversity of
options and interests in fulfilling the visitor experience. There is a correlating priority goal of developing “year-round” tourism, taking advantage of not only the
destination’s peak periods of success but continuing to develop and expand the
shoulder and summer periods as well.
•
•
•
•
•
There is a priority to
develop “year-round”
tourism
Strategy 1: implement an Integrated Marketing Programme that reflects Miami’s unique destination experience in order to attract and
engage visitors, local residents and meeting planners, and create affinity among our members and distribution partners,
Strategy 2: continue to develop and implement programmes that
convey Miami’s cosmopolitan, chic brand image. Educate high-value
consumers about the diversity of the destination,
Strategy 3: understand that branding or brand identity is the total
sum of the words, images and associations that form the customer’s
perception of the destination. The brand, therefore, is the conveyed
personality of the visitor’s experience. It is the promise, the link, or the
bridge between the customer and the visitor product,
Strategy 4: recognise that the Marketing & Tourism Programme
guides the development of the GMCVB’s array of communications
efforts including advertising, direct mail fulfilment and promotions,
website positioning, media publicity programs, exhibits, etc,
Strategy 5: continue to support Miami’s tropical/cosmopolitan image,
while further expanding the brand positioning with influential people,
trendsetters and others who will present the status of a Miami vacation to potential visitors.
Goal: Continue to enhance and expand the GMCVB’s website and digital marketing programmes as outreach, fulfilment and sales and conversion tools. The
GMCVB’s website should be a “central meeting place” for all inquiries about a
vacation to Greater Miami and the Beaches.
•
•
Strategy 1: continue to update the GMCVB’s digital web properties
in order to stimulate consideration of Miami as a vacation option, and
increase visitation and usage of GMCVB member offerings,
Strategy 2: enhance and expand digital marketing programmes in
order to leverage the online medium’s reach, engagement and conversion potential.
The GMCVB has an extensive presence across all major social media channels:
Facebook - 150,000 likes; Twitter – 89,000 followers; Youtube - most views on a
video is 45,000; Pinterest - 1,932 followers, 21 boards; Flickr - hosting images of
trade events, not consumer focussed; and Instagram - consumer facing, updating every couple of days.
67
Enhance and expand
GMCVB’s website
and digital marketing
GMCVB has an
extensive presence
across all major
social media
channels
Marketing Strategies for Tourism Destinations. Target market: USA
Goals - Cultural Tourism and LGBT:
•
•
•
•
•
•
•
•
•
•
•
Integration of
heritage tourism into
all programmes
work with the GMCVB Community Relations Committee to help secure state backing for a tour guide ordinance for Miami-Dade County
and expand Heritage Tourism in areas such as Little Havana, Overtown, Little Haiti and others,
in addition to Art Deco, promote the architectural aspects in the area’s
architectural landmarks, and showcase Miami’s heritage by highlighting Village West, Little Havana, Little Haiti and Virginia Key including
Miami Marine Stadium,
implement a Cultural Tourism and Heritage travel programme including hosting and facilitating familiarisation tours, industry presentations
and collateral support,
further ongoing support of major festivals and events, supplemented
by a targeted advertising effort that will showcase the Miami brand
and the signature LGBT events in the community,
with the support of City of Miami Beach officials, further promote the
highly successful Gay Pride Miami Beach, and promote “Orgullo” —
the newest Gay & Lesbian Hispanic Heritage Pride Event in Miami
Beach,
implement a targeted LGBT Travel programme including participation
in trade shows, conferences and special events in partnership with
the Miami-Dade Gay & Lesbian Chamber of Commerce and other
key stakeholders,
continue to strengthen the strategic alliance with the Miami Design
Preservation League (MDPL) to help showcase and promote Miami’s
Boutique & Lifestyle Hotels and the Art Deco District,
assist in providing Gay and Lesbian sensitivity training for tourism industry employees and help the Miami-Dade Gay & Lesbian Chamber
of Commerce develop its Flamingo Hospitality Programme,
as a board member, continue to work with the Miami-Dade Gay &
Lesbian Chamber of Commerce and its tourism/travel programmes,
continue the expansion of Miami Museum Month to include more Miami museums and highlight Miami’s museum product,
attract new conferences to the destination: The Sustainable & Authentic Florida Conference and DANCE/USA, and work for the success of
Out Games 2017, the largest LGBT sporting event in the world.
Goals - Heritage Tourism:
•
•
•
•
•
•
•
integrate Heritage Tourism into all 10 monthly Miami Temptations Programmes,
attend national tradeshows to obtain the latest information about Heritage Tourism and to learn how to develop strategies to market to the
Cultural & Heritage Traveller,
develop a new Heritage Neighbourhood/Cultural Guide that will showcase the diverse heritage neighbourhoods that Miami has to offer,
develop relationships with community partners to expand the GMCVB’s role in each of the heritage neighbourhoods,
distribute the Heritage Guide year-round through various visitors centres and relevant conferences,
partner with Visitor Centres for Heritage Tourism integration,
award partnership grants to small businesses in additional heritage
neighbourhoods,
68
Marketing Strategies for Tourism Destinations. Target market: USA
•
•
•
•
promote heritage and cultural related events via the “Miami Insider”
e-newsletter and social media posts,
expand the heritage neighbourhood sections within the new MiamiandBeaches.com,
work with the Media Relations Division to develop press trips such as
the “Highway to Heritage” Press Trip and the African American/Black
Media Press Trip,
continue to pitch the multicultural assets of the community and its
heritage neighbourhoods to media from all markets, domestic and
international.
Goals - Boutique & Lifestyle Hotels / Film - Fashion & Entertainment:
•
•
•
•
•
•
•
•
•
•
•
continue to pitch the multicultural assets of the community and its
heritage neighbourhoods to media from all markets, domestic and
international,
further expand the Boutique & Lifestyle Hotels/Film, Fashion & Entertainment programme, through specialty trade, partnerships and
consumer lifestyle, focussing on film, fashion, entertainment, music,
production, travel agents, design events, lifestyle consumers and the
LGBT market, both nationally and internationally,
work closely with several marketing divisions across the GMCVB to
further expand a dedicated social and traditional media strategy for
Boutique & Lifestyle Hotels,
design and implement a Boutique & Lifestyle Hotels/Film, Fashion &
Entertainment media plan to support sales and marketing efforts,
attend both national and international trade shows, consumer shows
and VIP functions to generate leads with travel agents and lifestyle/
urban consumers with primary interest in Miami Boutique & Lifestyle
Hotels,
develop sponsorships/partnerships and new opportunities with appropriate brands at several lifestyle events,
partner with the Miami-Dade Office of Film & Entertainment, the City
of Miami Beach Department of Tourism and Cultural Development
and the City of Miami Mayor’s Office of Film, Arts & Entertainment to
support the production industry,
promote the destination to the local production market and key decision makers in the industry, as well as location scouts at the national
and international levels, via the Miami in the Spotlight book,
support Boutique & Lifestyle Hotels Press Trips, in addition to targeting lifestyle publications with continued emphasis on Miami Boutique
& Lifestyle Hotels,
develop partnerships at the national and international levels with
events, festivals, and conferences specifically catering to the fashion,
music, film, production, commercial, and design and architecture industries,
further expand the alliance with the Miami Design Preservation
League (MDPL) to help showcase and promote the Boutique & Lifestyle Hotels and the Art Deco District.
69
Marketing Strategies for Tourism Destinations. Target market: USA
Influence press
and consumer
perceptions about
Miami
Goals - Media Relations and Programmes: Influence press and consumer perceptions about Miami as an art-centric, heritage-rich, tropical and cosmopolitan
destination of choice to the high-value customer through: placement of editorial
stories in a variety of consumer and travel media outlets in core markets; and
through experiential promotional consumer experiences and stunts.
•
•
•
•
Increase meeting
business
Strategy 1: expand our international Public Relations network,
Strategy 2: create stronger and more relevant editorial calendars as
dictated by market needs and nuances,
Strategy 3: reach out to key consumer travel editors, contributing
editors and freelance writers who represent major publications within
our target markets, to reinforce the brand,
Strategy 4: host production crews for strategic broadcast opportunities.
Goal: Promote Miami as the preferred venue for meetings, trade shows and public shows to increase meeting business.
•
•
Strategy 1: direct a Press Release Programme promoting meeting
facilities, development updates and new tourism products to targeted
meeting planner publications,
Strategy 2: provide advertorial content to trade publications.
Goal: Create experiential consumer marketing opportunities in key markets that
resonate and encourage engagement with the Boutique & Lifestyle Hotel brand
as well as the Miami and Beaches brand.
•
Influence and
educate travel
planners
Strategy: continue to promote the Boutique & Lifestyle Hotel brand
via a road tour and leverage strategic brand partnerships in order
to benefit from non-competing brand equity. In addition, the GMCVB
will focus on “owning” the event and having a larger share of voice
through stronger social media integration.
Goal - Travel Industry Sales: Influence and educate travel planners and travel
industry decision makers about Greater Miami as the destination of choice for their
clients and successfully meet their sales objectives by providing comprehensive
support.
•
•
•
•
Strategy 1: expand the scope of services in the GMCVB’s representation network,
Strategy 2: continue to strengthen partnerships with airlines, cruise
lines and tour operators globally,
Strategy 3: design and direct an annual International and Domestic
Travel Industry Sales Programme which will interact with and support
key travel planners and influencers in key and emerging markets,
Strategy 4: create supporting programmes designed to target a variety of High-Value Customers (leisure and international groups) based
on creating consumer and trade awareness and demand.
70
Marketing Strategies for Tourism Destinations. Target market: USA
Goal - Convention Sales and Services: Maintain long-term bookings of conventions and trade shows at the Miami Beach Convention Center (MBCC) and
increase hotel meetings in 2014 and beyond.
•
•
•
•
Strategy 1: generate Miami Beach Convention Center leads by targeting cities in select geographic areas and businesses in key categories,
Strategy 2: continue to generate excitement about new city developments by representing the destination at major trade shows and
meetings, and by continuing the convention destination familiarisation review programme, sponsorships at industry functions, conducting small dinner destination events and taking showcase events on
the road to tell the destination’s story with the new developments,
Strategy 3: continue to target major multi-management and trade
show companies which represent a significant number of organisations that can generate new business for the Convention Center and
individual hotel properties,
Strategy 4: advertise in key trade publications to position Greater
Miami favourably, highlighting new developments that will draw attendees for trade shows, smaller meetings and conventions.
Goal: Continue to develop short-term business opportunities targeting corporate
and association meeting planners with short-term meeting requirements.
•
Strategy: maintain the staff in our sales department, with managers
handling both small and large groups for continuity of service to the
customer and best usage of sales staff.
Goal: Maintain and confirm a defined number of annual long-term Miami Beach
Convention Center bookings of conventions to generate a defined number of
room nights for our hotel community.
•
•
Strategy 1: Washington, DC sales office to accomplish sales objectives through personal sales calls and telephone sales efforts, and
to conduct extensive networking at Washington, DC industry events,
Strategy 2: conduct small client dinners for 10-12 association and
trade show clients in order to update them on hospitality developments in Greater Miami.
Goal: The Convention Sales Department will continue to develop strong communication with the destination’s hotels and other key business partners.
•
Develop shortterm opportunities
targeting corporate
and association
meeting planners
Maintain and confirm
long-term convention
center bookings
Strategy: maintain and strengthen relationships with annual trade
show clients that have made the Miami Beach Convention Center
their home, by soliciting their input to identify industry-wide trends
and suggestions for increasing Miami’s attractiveness as a convention destination.
Goal: Produce new business through the Washington, DC remote office.
•
Maintain longterm bookings of
conventions and
trade shows
Strategy: continue roundtable meetings with key hotels as well as
other business partners to share ideas and discuss marketing opportunities, thereby keeping key business partners informed of the
Bureau’s responsibilities to the community while discussing current
and future goals.
71
Produce new
business through
the Washington, DC
remote office
Develop strong
communications
with hotels and other
business partners
Marketing Strategies for Tourism Destinations. Target market: USA
Grow a base of
GMCVB members/
partners to provide a
base of services and
marketing tools
Goal - Partnership Development: Establish and continue to grow a core base
of GMCVB members/partners to provide visitors and convention attendees with
a broad base of services and marketing tools.
•
•
•
•
•
Strategy 1: create more actual and perceived value for members,
particularly in the benefit training area. Continue to increase the quality and level of participation in the GMCVB through social media and
member-to-member interaction with personalised outreach from the
sales and support team for opportunities for members to showcase
their brands and services,
Strategy 2: pursue more, and maintain all current, Corporate Partner
level members, as well as expand general membership by targeting
previously untapped companies. Maximise Corporate Partner membership retention through personalised communications and invitations throughout the year,
Strategy 3: continue to grow the visibility of the Medical Tourism Programme. Create more value and buy-in by existing partners. Increase
the number of partners,
Strategy 4: work closely with the GMCVB Temptations Programme
team (i.e. cruising, romance, shopping, sports, museums, film, spa –
August, Miami Spice – September, attractions. Miami Live events) to
showcase the benefits of participation to new target members and existing partners while increasing the quality and depth of programmes,
Strategy 5: expand the Miami Begins with Me Customer Service initiative, with re-energised training at MIA, PortMiami and with the Taxicab Advisory Group, and launch a new public awareness campaign
to engage consumers to value the importance of tourism and always
lend a helping hand or share a friendly smile with visitors.
The GMCVB maintains representation in California, New York, Washington DC,
and Miami. It also runs 2 offices in Canada; 25 offices throughout Central America, South America, and the Caribbean; 10 throughout Europe, and has representation in Russia, India, and China.
New York attracted
over 54 million
visitors in 2013
New York City attracted over 54 million visitors in 2013, maintaining the growth
pattern since the formation in 2006 of the city’s marketing organisation, New York
City & Co. Between 2006 and 2013, visitor numbers rose from under 44 million
at an average annual rate of over 3%, despite a fall in 2009, since when growth
has been at 4.5% a year. Domestic visitors accounted for just under 80% of the
total in 2013, a 3 percentage point fall compared with 2006, as a faster growth in
international tourist numbers than in domestic visits was recorded between 2006
and 2013123.
New York is attracting international tourists from its traditionally strong markets
in North America (i.e. Canada, Mexico) and Europe as well as from developing
markets in Asia and Latin America, where it has expanded its tourism marketing
efforts. Its leading international markets in 2012 were: Canada 1.1 million visitors,
United Kingdom 1.0 million, Brazil 0.8 million, France 0.7 million, Germany and
Australia both 0.6 million, China just over half a million.
123 NYC & Co 2013 Annual Summary http://www.nycgo.com/assets/files/
pdf/2013annualsummary.pdf
72
Marketing Strategies for Tourism Destinations. Target market: USA
Since 2006, the City’s share of inbound overseas arrivals in the United States
has increased from 28% to 33%. Each share point increase has generated an
additional US$750 million (EUR570 million, taking the average exchange rate
over the period) in direct spending and more than US$1 billion (EUR750 million
yearly average) in economic impact annually. In total, since 2006 the economic
impact of tourism has grown 42% to reach US$55.3 billion (EUR41 billion) in
2012124, and an estimated US$60 million (over EUR43 billion) in 2013.
The City’s share of
inbound overseas
arrivals in the US has
increased to 33%
Direct tourist spending was just under US$39 billion (nearly EUR29 billion) across
the City’s five boroughs in 2013, having grown from US$26 billion (EUR 20.5 billion) in 2006, at an average annual rate of 5.8% (in US dollar terms)125.
Leisure and hospitality provided employment for over 350,000 in the five boroughs of New York City in 2013126.
The tourism sector is strongly supported by the New York Mayor’s office and the
economic development departments of the five boroughs. It is seen as a key
component in the City’s economy:
Leisure and
hospitality provided
employment for over
350,000
“Diversifying our economy and making tourism a focus has
resulted in record after record for our tourism industry, including
employment, which continues to show growth and strength,”
Deputy for Economic Development Mayor Robert K. Steel127.
The various City government departments – City Planning, Economic Development, Small Business Services, Environmental Protection – each have policies
and programmes to support the growth of tourism and recreation. As an example,
The Department of Environmental Protection opened over 5,900 acres of Cityowned land across the watersheds for the first time for public recreation in 2013;
and established new recreation opportunities on lands and reservoirs that were
already open. It worked with its partners to:
•
•
•
establish new hiking trails,
create a rental boating programme at four reservoirs in the Catskills,
allow state-licensed outdoor guides to lead hiking, fishing, and other
tours on water supply lands for the first time128.
124 New York City Tourism: a Model for Success http://www.nycgo.com/assets/files/pdf/
New_York_City_Tourism_A_Model_for_Success_NYC_and_Company_2013.pdf
125 NYC & Co 2013 Annual Summary http://www.nycgo.com/assets/files/
pdf/2013annualsummary.pdf; NYC Statistics http://www.nycgo.com/articles/nycstatistics-page
126 Ibid
127 Mayor Bloomberg Announces New York City Will Reach a Record 54.3 Million
Visitors in 2013 – Increase of Nearly 20 Million Additional Annual Visitors from 2002
http://www1.nyc.gov/office-of-the-mayor/news/393-13/mayor-bloomberg-new-yorkcity-will-reach-record-54-3-million-visitors-2013-#/0
128 Department of Environmental Protection Opened Nearly 6,000 Acres of Watershed
Land for Recreation in 2013 and Added New Programs to Support the Catskills
Tourism Industry http://www.nyc.gov/html/dep/html/press_releases/14-003pr.shtml#.
VAm3ORbp9i0
73
Various government
departments have
policies to support
the growth of tourism
and recreation
Marketing Strategies for Tourism Destinations. Target market: USA
NYC & Co is a
public-private
membership based
organisation
New York City & Company (NYC & Co) is a public-private, membership-based
organisation. It was formed in 2006, when the private sector and public sectors
merged to create a single full-service entity. Additionally, NYC and Company
Foundation is a charitable and educational organisation that supports tourism to
NYC by promoting arts, cultures and sports.
There are 2,000
businesses on the
membership roster
There are 2,000 businesses on the membership roster including hotels, restaurants, retailers, entertainment venues and cultural attractions in the hospitality
and tourism industry. These sectors are split into 6 board committees:
•
•
•
•
•
•
NYC & Co is
predicated entirely
on its partnerships
arts & culture,
dining,
retail,
trade shows,
hotels,
Broadway, entertainment & attractions.
NYC & Co is predicated entirely on its partnerships, which are at the core of every
activity. The company has a department specifically for generating corporate
partnerships and sponsorships http://www.nycandcompany.org/partnerships.
This department offers partners access to services and media assets. Custom
packages are developed that allow partners to avail of New York City assets,
whether as part of a co-branded campaign, or using NYC & Co media for their
own purposes. NYC & Co media include outdoor spaces (such as bus shelter
advertising space, street pole banners), or space on NYC media group TV channel which reaches 7.3m households across 5 cable networks.
All of the major campaigns have a supporting partner. These include Amex,
OpenTable, Sony, Travelocity, Time Out New York, Syfy channel, QVC. There
are also cross-promotion activities with partner cities such as London, Sao Paulo,
Madrid and Seoul. Promotions are supported by deals with airline carriers.
The NYC & Co website states its mission as follows:
NYC & Company is New York City’s official marketing, tourism and
partnership organisation. Our mission is to maximise travel and
tourism opportunities throughout the five boroughs, build economic
prosperity and spread the dynamic image of New York City around
the world. With an array of major communication channels—
including nycgo.com, our digital kiosks, Official NYC Information
Centers and publications—NYC & Company becomes the ultimate
resource for visitors and residents to find everything they need
about what to do and see in New York City129.
NYC & Co’s budget in 2013 was US$36.8 million (EUR27 million), generated
through eight different sources. Its City funds decreased by US$1 million (EUR0.7
million), or 7%, as a result of City budget reductions. The Company’s other sources of revenue increased by US$3.1 million (EUR2.2 million), or 15%, due primarily to its work with the National Football League to facilitate the City’s co-hosting of
Super Bowl XLVIII. Increases were also realised in website advertising revenue
and ticket sales as a result of traffic increases and improved site functionality,
and in “Other Income” due to increased attraction ticket sales at the Company’s
expanded Official NYC Information Center platform.
129 NYC The Official Guide http://www.nycgo.com/about-us/
74
Marketing Strategies for Tourism Destinations. Target market: USA
Figure 21: NYC & Co’s Revenues, 2012 and 2013
Source of Funds
2012
2013
S
%
S
%
New York City Funds
13.5
38.9
12.5
34.0
Sponsorships
6.9
19.9
8.8
23.9
Member Dues
4.5
13.0
4.7
12.8
Publications
2.3
6.6
2.5
6.8
Website
2.0
5.8
2.4
6.5
Other Income
3.3
9.5
4.2
11.4
Licensing
1.4
4.0
1.1
3.0
Other Grants
0.8
2.3
0.6
1.6
Total
34.7
100.0
36.8
100.0
Source: NYC & Co 2013 Annual Summary
New York City is fortunate in having nearly 100% global brand recognition but to
reach 55m in 2015 they will be focussing on:
•
•
•
•
•
targeting emerging markets with large growth potential i.e. Brazil, India, China,
targeting the youth, families, seniors and LGBT (lesbian, gay, bisexual, transgender) segments,
five borough promotional strategy, aimed at ‘intrepid’ international
traveller, repeat visitor, and local audience,
power of culture. Since New York City’s cultural institutions draw almost half of the visitors to the City, supporting and promoting cultural
assets is seen as key,
heavy digital focus - all tools developed to emphasise core messages, while removing any barriers to booking.
Market positioning varies according to geographic market, with a focus on the
City’s icons to entice first-time visitors from Asian and other growth markets, and
the encouragement of repeat visitation from Europe using the slogan “live like a
local”. For the domestic United States traveller, the focus is on demographic
groups, especially families.
In the ‘Model for Success’ document130, the target groups are explained:
•
•
Neighbourhood tourism. Strong emphasis in moving visitors from
Manhattan out to the 5 boroughs. Campaign called Neighborhood
X Neighborhood launched in 2013, supporting local businesses and
distributing tourism throughout the area. Repeat visitors are a strong
component of this, having already seen the traditional spots, and with
some previous knowledge, they are attracted to lesser known areas,
Lesbian / Gay / Bisexual / Transexual (LGBT). Many products and
campaigns developed to market to this audience. The Rainbow Pilgrimage celebrates the 40th anniversary of modern gay-rights movement. Following the legalisation of gay marriage in the city, NYC I Do
focuses on LGBT looking to marry or honeymoon in the city,
130 New York City Tourism: a Model for Success http://www.nycgo.com/assets/files/pdf/
New_York_City_Tourism_A_Model_for_Success_NYC_and_Company_2013.pdf
75
New York City has
nearly 100% global
brand recognition
Market positioning
varies according to
geographic market
Marketing Strategies for Tourism Destinations. Target market: USA
•
•
•
NYC & Co
develops a wide
array of initiatives
and promotional
platforms
Youth. To attract the Youth Traveller, they launched NYC<30 to showcase the city as a rite of passage. Additionally, they are looking to
legalise hostels, which are currently not registered - this alone is expected to bring in additional 175,000 visitors,
Family. A heavy promotional drive to package New York City to families, pulling together the family-friendly attractions across the boroughs. The official NYC Family Ambassador programme drove a
15% increase in family travel,
Seniors. A great opportunity due to the growing size of this segment,
and their flexibility of travel time. NYC & Co work with AARP (American Association of Retired Persons) to reach this market, including
special access to Broadway Week tickets.
NYC & Company develops a wide array of initiatives and platforms that support
and promote the City and help drive traffic to member businesses. Programme
examples include:
•
•
•
•
NYC Restaurant Week (Summer/Winter): A 21-year-old programme
celebrating NYC’s vibrant and diverse dining culture, offering prix-fixe
lunch and dinner menus at hundreds of the City’s finest restaurants,
Broadway Week (Fall/Winter): A programme featuring two-for-one
ticket offers to participating Broadway shows,
Save the Date: A dynamic planning tool that allows locals and visitors
to discover events and offers in New York City throughout the year
with plenty of notice. Visitors can find savings, deals, tips and events
to optimise their New York City experience,
NYC Culture Collection: A programme that highlights offers for cultural programming—from zoos and botanical gardens to museums
and performance venues—across the City. Each quarter, an area of
focus (e.g., dance, visual arts, outdoors and recreation) is featured
and promoted on nycgo.com through email campaigns and in collateral pieces distributed at Official NYC Information Centers and Kiosks
and the participating cultural institutions.
NYC & Co participated at an extensive range of travel trade shows, including:
•
•
•
•
•
ABA,
DSA,
Cruise3Sixty,
IPW,
SYTA.
as well as a total of 28 convention sales shows and events over the course of
2013131.
As the official guide to New York City, nycgo.com and supporting channels work
to stimulate visitation to, and navigation of, the five boroughs. This is achieved
through timely, original editorial content, dynamic trip-planning tools and e-commerce channels, designed to ease the trip-planning process for our visitors. The
website also serves as the hub of activity for all NYC & Company marketing programmes, a platform to showcase member businesses and an effective advertising vehicle for partners to generate new business.
131 NYC & Co 2013 Annual Summary http://www.nycgo.com/assets/files/
pdf/2013annualsummary.pdf
76
Marketing Strategies for Tourism Destinations. Target market: USA
In 2013 nycgo.com reached and influenced more than 12 million tourists and locals. Visitation to the desktop site grew 18% compared to 2012, and traffic is up
over 125% since the site’s relaunch in 2009. The mobile site grew 23% in 2013
compared to 2012; mobile traffic is up 126% since 2011. With an average of 5
million page views per month, five page views per visit and 10 minutes spent on
nycgo.com per visitor, users are increasingly engaging with the site to learn about
the City, plan their visit and book their trip.
In 2013, developments included132:
•
•
•
•
introduction of an enhanced hotel booking engine, powered by Booking.com, exclusive to NYC & Company members,
development of a new e-commerce experience for purchasing Broadway tickets; enhancement of the site-wide e-commerce channels; and
relaunch of the site’s special offers platform - all with the aim of generating new business for members and facilitating planning for visitors,
relaunched the mobile site, featuring a new design, and enhanced
geo-targeting capabilities,
created a new look and enhanced navigation on the core nycgo.com
desktop home page.
NYC & Company has an extensive presence across all major social media channels: Facebook - 113,000 likes; Twitter – 119,000 followers; Youtube – 180,000
views over the six years it has existed; and Instagram – 6,401 followers, 500
posts.
New York City & Company has only two offices in the United States: in New York
itself, and in Washington DC. NYC and Company has marketing teams in 18
foreign markets.
132 Ibid
77
In 2013, nycgo.
com reached and
influenced more than
12 million tourists
and locals
Marketing Strategies for Tourism Destinations. Target market: USA
3.7 Conclusions
The four shortlisted international destinations competing with Europe for the United States tourist are pursuing product development and marketing strategies
that, in overall terms:
Europe’s competitors
are targeting
established source
markets and newly
emerging ones
•
Approaches
recognise the trend
towards authentic
and self-fulfilling
visitor experiences
•
•
•
Europe’s competitors
are adopting a
market:product
matching approach
•
•
target both established source markets and newly emerging ones,
seeking a balance between the two groups. Australia, for example,
identifies fast emerging markets for marketing efforts (e.g. Brazil, Vietnam) as well as those with high earning potential (e.g. China, North
America and domestic Australia),
regard the United States as a priority market. It is the second largest
market in terms of overseas spending. It also has relatively low levels
of participation in overseas travel, with only one-third of the United
States population owning a passport. Between 2000 and 2012 passport ownership doubled, an indication that the United States traveller
is increasingly engaging in overseas travel133,
gear their product development and marketing approaches in recognition of the trend for United States citizens in all segments to increasingly seek experiences which provide a rounded appreciation of the
natural and cultural heritage of the destination, thereby providing an
authentic and self-fulfilling visit. One strategy by which Australia and
South Africa achieve this goal is through the sponsorship of television
programmes that illustrate the range and diversity of tourist attractions and activities in their countries,
identify combinations of different facets of their natural and cultural attributes to appeal to different segments within source markets, with a
focus on a diversified range of things to see and do, something that is
important for the increasing numbers of United States citizens using
digital technology in planning their own trips. The ability to bring the
destination alive in the homes of United States citizens is being exploited by Tourism Australia through a customised YouTube channel
and a website that features personal experiences of visits,
undertake research leading to product/experience development and
marketing strategy planning based on a market:product “matching”
approach in order both to realise the potential from these various
market segments, and to frame marketing strategies and utilise communications methods that resonate with the values and desires of
these segments. This is particularly important for those United States
travellers who are highly influenced in making the destination decision by the extent to which it is seen as an “aspirational” destination.
Again, Australia is at the forefront of tailoring its marketing strategy
on the basis of detailed understanding of the requirements and preferences of consumers in its target markets through the Consumer
Demand Research project. This research identified the priorities for
the United States traveller to Australia as: safety and security, value
for money, good food and wine, world class beauty and natural environments, and friendly locals,
provide reassurance about issues of safety, ease of travel and price
levels – concerns that many United States travellers have. South Africa’ National Tourism Strategy addresses the need to prepare its population by instilling a “tourism culture” in South Africans and focussing
on providing educational and training programmes leading to good
jobs in the industry producing benefits to local communities,
133 Record number of Americans now hold passports. http://www.forbes.com/sites/
andrewbender/2012/01/30/record-number-of-americans-now-hold-passports/
78
Marketing Strategies for Tourism Destinations. Target market: USA
•
all competing destinations effect their marketing strategies of showing their attributes in the most attractive way designed to influence
destination decision-making through wide ranging marketing communications and promotional activities. Central – and increasingly important – in the marketing tools used are digital electronic technology
applications in recognition of the high level of use of the internet, online booking channels and social media by United States travellers.
The multilingual destination websites provided by Australia, Brazil,
China and South Africa enable prospective tourists to research and
arrange personalised itineraries related to their specific interests.
The three selected United States cities are all receiving large numbers of domestic visitors and seek to maintain volumes by targeting younger age groups,
families with children who may not have previously visited the city, past visitors
attracting them to see parts of the destination not previously experienced, the
LGBT segment, and conventions and events. However, responding to the faster
growth rates being achieved in recent years, and recognising the high – but to
date – still largely unrealised potential of international markets, United States
cities are concentrating their marketing efforts on the main foreign markets (e.g.
Canada and the main European markets for all three cities, China and other
Asian markets for Los Angeles and New York, Brazil and other Latin American
markets for Miami and New York).
In selecting the destinations competing with Europe to be subject to study in
respect of the United States market, it is clear than many destinations are able
to present combinations of features that satisfy United States travellers’ growing
desire to understand and fully experience the destinations they visit. Consideration was given to:
•
•
•
•
•
•
•
•
the recent growth trends in tourism from the United States, and future
motivational, attitudinal and behavioural changes,
current and planned future destination marketing strategy and priority
given to the United States market,
the extent to which the destinations compete for the same/similar
market segments in the United States market as Europe does,
price levels,
airline connectivity,
political, economic and socio-cultural links,
overall destination tourism policy development,
entry requirements for United States visitors.
On this basis, the destinations selected for full analysis and assessment in respect of the United States travel market are
AUSTRALIA
SOUTH AFRICA
79
Digital electronic
applications are
central in the
marketing activities
of Europe’s
competitors
US cities are
concentrating
marketing efforts
on the main foreign
markets
Marketing Strategies for Tourism Destinations. Target market: USA
4
Tourism Australia
seeks to maintain a
balanced portfolio
approach
Marketing Strategy and
Activities of Tourism
Australia and South Africa
Tourism in the United States
Tourism Australia seeks to maintain a balanced portfolio approach, and continues
to invest heavily in markets such as the United Kingdom, France, Italy, Germany,
the United States and Canada134, while actively developing Asian markets.
To make significant progress towards the goal of doubling overnight tourism expenditures in Australia between 2009 and 2020 to reach AUD140 billion (EUR97
billion), Tourism Australia is targeting consumers in 17 markets in 2013-14, with
over three-quarters of its campaign investment being given to nine priority markets. These are grouped into Category 1 markets, estimated to be worth at least
AUD5 billion (EUR3.4 billion) a year by 2020 to the Australian economy and Category 2 markets, with the potential to generate more than AUD2.5 billion (EUR1.7
billion) a year. United States are classified as a Category 1 type of market, together with Canada as the North America region.
The June 2014 issue of Tourism Research Australia’s bi-annual Tourism Forecasts estimated a 8% rise in United States arrivals in 2013/14 (July to June) but a
lower 5.5% increase in 2014/15 with an annual compound growth rate of 4% expected until 2022/23. Over the decade it expects the United States to contribute
just under 7% to the additional 3 million international tourist arrivals forecast (i.e.
from 6.6 million in 2013/14 to 9.6 million in 2022/23)135. This represents between
20,000 and 25,000 additional United States citizens visiting Australia each year
over the period.
All Tourism Australia’s activities in the United States are coordinated through its
office in Los Angeles, which liaises with the Canadian office in Toronto in respect
of North America-wide campaigns.
134Chairman’s Report to Tourism Australia’s 2012-13 Annual http://www.tourism.
australia.com/documents/corporate/TACA7893_AnnualReport_2012_13.pdf
135Tourism Forecasts Autumn 2014. June 2014. Tourism Research Australia.
http://www.tra.gov.au/documents/forecasts/Tourism_Forecasts_Autumn_2014_
FINAL_18062014.pdf
80
Marketing Strategies for Tourism Destinations. Target market: USA
Partnerships and relationships with both traditional and non-traditional distributors are used to ensure the target customer can easily access quality Australian
tourism products. Tourism Australia is dedicated to facilitating trade marketing
opportunities for established businesses that will generate high yielding, sustainable market opportunities. It offers four ways for Australia’s tourism stakeholders
to keep up to date and access industry resources, marketing opportunities etc.
i.e. its home website www.tourism.australia.com, subscription to its weekly
newsletter Essentials, following it on Twitter and LinkedIn, and attending its industry briefings.
Airline partnerships help to convert consumer desire to travel to Australia into
travel bookings by combining destination and tactical price point marketing. For
2013/14, Tourism Australia partnered with 19 airlines in 16 markets to promote
Australia collectively spending more than AUD32 million (EUR22 million) internationally on There’s nothing like Australia campaigns. For the United States
market, the important alliances are with Qantas and Virgin Australia (which codeshares with Virgin America on United States-Australia routes, and has expanded its alliance with Delta Airlines which operates direct flights from Los Angeles
to Sydney); as well as with Air New Zealand which increased its weekly flights
between Los Angeles and Auckland from 14 to 17 in March 2014 (and plans to
increase its San Francisco service to Auckland for the December 2014 to March
2015 season), all flights having multiple connector services to Australia136.
Airline partnerships
help to convert
consumer desire to
travel to Australia
into travel bookings
International
airlines
marketing
The
United States
travelboost
distribution
systempresence
is large and complex, with a limitWorked
during
2012–13,
tourism
australia
partnered
with
19
airlines
in 16 international
ed number of specialist operators featuring Australia.
Though consumers
havewith
markets
to
promote
australia,
collectively
spending
more
than
$32
million
19 airlines
turned to online travel agents to book some or all of their trips, traditional
distriinternationally on There’s nothing like Australia campaigns. these partnerships
bution
channels
remain
important
for
customised
itineraries
and
booking
1. ground
air asia X
enabled tourism australia to double its marketing investment in key markets.
arrangements. Tourism Australia provides advice and guidance for Australian
2. air canada
the organisation signed new memoranda of understanding (mou) with
service
operators
on
how
best
to
carry
out
sales
calls
and
conduct
business
with
3. air china
china eastern, etihad, air china and air new Zealand.
United States distributors137.
4. air New Zealand
5. cathay Pacific
Figure 22: Top Six Co-operative Partnerships by Revenue Contribution
TOP sIx CO-OPeRATIVe PARTneRsHIPs bY ReVenue COnTRIbuTIOn
6. china eastern
7. china Southern
8. Delta airlines
9. emirates
10. etihad
11. Garuda
12. Japan airlines
13. Malaysian airlines
14. Qantas
15. Scoot
16. Sichuan airlines
17. Silk air
18. Singapore airlines
19. Virgin australia
Source: Tourism Australia’s 2012-13 Annual Report
136USA
Profile 2014
http://www.tourism.australia.com/documents/Markets/
AirlinesMarket
Memoranda
of Understanding
(*new in 2012–13)
MarketProfile_USA_May14.pdf
> air china*
> Qantas > china southern
137
Ibid
> air new Zealand*
> emirates > singapore airlines
81
> china eastern*
> etihad*
> virgin australia
Marketing Strategies for Tourism Destinations. Target market: USA
The 2014-15 schedule of Tourism Australia’s marketing activities in North America, includes both consumer and trade-focussed elements. It will continue to implement marketing campaigns and events in prioritised markets using its “There’s
nothing like Australia (TNLA)” creative platform and working with key partners.
This calendar highlights when Tourism Australia plans to be active in the United
States, including when in conjunction with Canada. In addition, TNLA advertising
for Public Relations/International Media Hosting Program, Social Media and other activity will run throughout the year138.
Figure 23: United States Market Consumer and Industry Events, 2014/15
Event
IMEX America –
business event
There’s Nothing
Like Australia
(TNLA) Brand Campaign
TNLA Airline Partnership Campaign
Youth Campaign
Location
Las Vegas for North
America
North America
2014/2015
October 2014
North America
G’Day USA/Australia Tourism Summit
Australia Marketplace
Various locations across
North America
North America
August-November 2014,
January-March 2015
September-October
2014
January 2015
North America
September/October
2014, January/February
2015
March 2015 – to be confirmed
Source: Working with Tourism Australia, 2014-15
Four episodes of
the Oprah Winfrey
Show were filmed
in Australia in
December 2010
The value of Tourism Australia’s marketing campaigns in the United States is
best illustrated through the value generated through its facilitation and support
of, and promotions conducted in conjunction with, four episodes of the Oprah
Winfrey Show which were filmed in Australia in December 2010 and broadcast in
January 2011. The Oprah Winfrey Show is the longest running and highest-rated
talk show in the United States’ television history, averaging 14 million viewers per
day, broadcast in 147 countries and with a global estimated weekly audience of
more than 70 million people. The four shows in Australia involved the host and
300 members of the audience visiting every State and experiencing the full range
of what Australia has to offer. It was a major project with many different organisations involved. The objective was to use the global spotlight created by Oprah’s
visit to demonstrate to the world why ‘There’s nothing like Australia’ for a holiday.
Tourism Australia and
16 partners invested
EUR4.15 million in
associated marketing
activities
In the United States, Tourism Australia and 16 partners invested more than
AUD5.4 million (EUR4.15 million) in associated marketing activities. In total,
these partnerships generated just under US$20 million (EUR14 million) of bookings. In Australia, AUD1.4 million (EUR1.07 million) was invested in the six-week
Ultimate Aussie Holiday Sale following the Australian screening of Oprah’s visit139.
138 Working with Tourism Australia, 2014-15 http://www.tourism.australia.com/
documents/Markets/Report_WorkingwithTA_May14.pdf
139 The Oprah Effect, December 2011 – Tourism Australia http://www.tourism.australia.
com/documents/corporate/The_Oprah_Effect.pdf
82
Marketing Strategies for Tourism Destinations. Target market: USA
In its evaluation of the impact of the show and the associated campaign of Tourism Australia and its partners – The Oprah Effect, December 2011 – Tourism
Australia found that140:
Premier show in prime time
Equivalent Advertising Value (EAV) AUD3.76 million (EUR2.9 million) per episode x 4 episodes = AUD15.04 million (EUR11.6 million).
Off peak episodes
Public Relations EAV AUD260,380 (EUR0.2 million) per episode x 4 episodes =
over AUD1 million (over EUR0.8 million).
Total media value = AUD16.08 million (EUR12.4 million)
February 2011 Media Generated – provided by Corporate Communications,
Tourism Australia
•
•
global: more than 3,900 stories with a value of over AUD193 million
(EUR148 million),
domestic: more than 83,000 stories valued at over AUD182 million
(EUR140 million).
Website Impact – provided by Digital Marketing, Tourism Australia
•
globally, there was a 66% jump in visitors to Australia.com in January,
with the United States accounting for almost 20% of this increased
traffic.
Media Analysis – provided by Repucom International
•
•
•
the total worldwide viewing audience of Oprah’s Ultimate Australian
Adventure was 41 million for the primary shows across the United
States, Australia, Canada, New Zealand and the United Kingdom,
the Oprah Winfrey Show ranked as the most popular variety TV programme amongst the interviewed Oprah viewers,
Australia branded content accounted for 52% of the broadcast duration of Oprah’s Ultimate Australian Adventure and generated a total
media exposure value of AUD31.19 million (EUR24 million).
United States Consumers – provided by Repucom International
•
•
•
•
5 in 10 Oprah viewers in the United States indicated they place a high
importance on Oprah product recommendations, with 6 in 10 having
made a past product purchase based on an Oprah recommendation,
7 in 10 United States consumers who were aware of Oprah’s Ultimate
Australian Adventure agreed that Australia is “worth travelling to”,
6 in 10 United States consumers who were aware Oprah’s Ultimate
Australian Adventure took action in exploring Australian holiday options after the show aired, with 47% stating a likelihood to book an
Australian vacation in the future,
United States consumers aware of Oprah’s Ultimate Australian Adventure were 50% more likely to book a vacation than those unaware
of the event.
140 Ibid
83
Marketing Strategies for Tourism Destinations. Target market: USA
Domestic Brand Health Monitor – provided by TNS
•
49% of Australian consumers who had seen Oprah’s Ultimate Australian Adventure were more likely to take their next holiday in Australia.
June 2011 United States Brand Health Monitor – provided by TNS
As a result of seeing, reading or hearing about The Oprah Winfrey Show coming
to Australia,
•
•
•
•
•
•
4 in 10 people said they’d want to find out more about a holiday in
Australia,
3 in 10 - more likely to consider Australia as a vacation destination
over another international destination,
3 in 10 - wanted to visit Australia for a vacation in the next 12 months,
8 in 10 - see Australia as an adventure vacation destination,
8 in 10 - see Australia as a welcoming/ friendly vacation destination,
almost 7 in 10 - see Australia as a destination they would consider
going for a one or two week vacation.
September 2011 United States consumers – provided by TNS
•
•
•
•
from the United States consumers who remember seeing, reading or
hearing about Oprah’s Ultimate Australian Adventure, 7 in 10 said the
show influenced their decision to choose Australia as a destination,
49% of United States consumers that visited Australia in the past 6
months said their decision to choose Australia as a destination was
influenced (to some extent) by Oprah’s Ultimate Australian Adventure,
38% of United States consumers that have booked a trip to Australia
in the next 12 months said their decision to choose Australia as a
destination was influenced (to some extent) by Oprah’s Ultimate Australian Adventure,
when asked about the likelihood of recommending Australia to a colleague or friend: 65% would be considered promoters of Australia,
22% would be considered passives in recommending Australia, 13%
would be considered detractors of Australia, producing a - Net Promoter Score of 52.
November 2011 United States consumers – provided by TNS
To qualify for the questionnaire the respondents MUST have visited Australia in
the past six months, or have booked a trip to Australia in the next 12 months AND
seen, read or heard about Oprah’s Ultimate Australian Adventure.
United States consumers who visited Australia in the past 6 months
•
•
from the United States consumers who remember seeing, reading or
hearing about Oprah’s Ultimate Australian Adventure, 6 in 10 agreed
the show made them visit places outside of the main cities they previously had not considered,
having seen Oprah’s Ultimate Australian Adventure, 6 in 10 were prepared to spend more time during their trip than they originally thought
they would, while the same proportion were prepared to spend
more money on their trip than they originally thought they would,
84
Marketing Strategies for Tourism Destinations. Target market: USA
•
•
•
83% of United States consumers that visited Australia in the past six
months agreed that Australia is a high quality destination with a further 68% agreeing Australia offers good value for money,
8 in 10 United States consumers that visited Australia in the past six
months said their visit to Australia exceeded their expectations with 7
in 10 likely or very likely to return to Australia for a vacation,
since visiting Australia, 79% are likely or very likely to recommend
Australia as a vacation destination for friends and family.
United States consumers who have booked a trip to Australia in the next
12 months
•
•
from the United States consumers who remember seeing, reading or
hearing about Oprah’s Ultimate Australian Adventure, 69% agreed
the show made them want to explore and experience Australia outside the main cities,
having seen Oprah’s Ultimate Australian Adventure, 50% now plan
to spend more time travelling in Australia than they originally thought
they would, while 43% now plan to spend more money in Australia
than they originally thought they would, 55% now plan on visiting an
Aboriginal Cultural Centre when they visit Australia, and 84% agreed
the experience of visiting Australia is worth the time, distance and
cost involved.
85
Marketing Strategies for Tourism Destinations. Target market: USA
South Africa
Tourism
The volume of US
travelers to South
Africa in 2013 was
over one-and-a-half
times greater than
four years earlier
The volume of United States travellers to South Africa – 349,000 in 2013 – was
over one-and-a-half times greater than just four years earlier. From 230,000 in
2009, successive years have seen rises of 22.6%, 1.9%, 13.6% and 6.7%. The
United States was one of the countries with the most fans at the 2010 FIFA World
Cup held in South Africa, with over 30 000 United States supporters travelling for
the tournament alone. Rather than sinking back to pre-World Cup levels in 2011,
a further growth was recorded, indicating that despite the uncertain economy the
successful hosting of the tournament had a strongly positive impact in the United
States market. South Africa Tourism research confirms this by the finding that its
brand attributes have surged among the 26 to 40 age group being targeted by
South Africa Tourism (SAT)141.
Following the success of the World Cup, SAT sought to keep South Africa fresh
in the minds of United States travellers by conducting consumer focus groups
and trade forums in key cities around the country to better understand its target
segments and their perceptions and expectations142.
South Africa Tourism has its United States office in New York. It realigned its
trade relations team in 2013 by appointing two assistant relations managers –
based in Los Angeles and Atlanta – to service the western and south-eastern
regions of market143.
Get exposure on
prime time television
through partnerships
with popular
programmes
South Africa Tourism has pursued a strategy of getting exposure on prime time
television through partnerships with popular programmes. It hosted the reality
television series “The Batchelor” in November 2010, with the two episodes filmed
in South Africa and broadcast in February and March 2011 having an audience of
over 20 million. This led to record website visitors and drove bookings. This was
followed by SAT’s partnership with quiz show Jeopardy! to create a six-episode
destination showcase focussing on the diversity of experiences in South Africa
including safari, culture, adventure and lifestyle144.
Online deals platform
offering value-formoney packages
In 2011, SAT used the information obtained through the consumer and trade
consultations following the World Cup to relaunch an updated online deals platform offering pre-negotiated value-for-money packages with its trade partners on
southafrica.net. It also used regional television and radio advertising with major
campaigns in New York, Los Angeles, Florida, Seattle and Houston, each promoting special deals145.
141 South African Tourism Annual Report 2012/13 http://www.southafrica.net/uploads/
files/SA_Tourism_2012-13_Annual_Report.pdf
142 South African Tourism Annual Report 2011/12 http://www.tourism.gov.za/
AboutNDT/Publications/Tourism_AnnReport_2011_12.pdf
143 South African Tourism Annual Report 2012/13 op cit
144 South African Tourism Annual Report 2012/13 op cit
145 South African Tourism Annual Report 2011/12 op cit
86
Marketing Strategies for Tourism Destinations. Target market: USA
Social media is extremely important for a market like South Africa with limited
awareness in the marketplace. It was pivotal as a platform for most of the World
Cup-related campaigns, while the global Diski dance campaign was brought to
life in the United States through Facebook, YouTube, MySpace, Google, WAYN
and through a partnership with Coca Cola, a partner in the tournament146.
Social media is
extremely important
for a market like
South Africa
Media partnerships are a central component of SAT’s United States marketing
plan, yielding combined impressions of over 38 million and public relations value
of US$45 million (EUR34 million) in 2012/13. Training remains the focus of SAT’s
trade engagements with almost 1,000 agents completing its online FUNDI training course, and over 200 agents participating in the “have you considered South
Africa?” call centre campaign. In 2012/13, more than 3,000 leads were sent directly to trade from the deals portal on southafrica.net147.
The strong recent growth in United States tourism to South Africa is evidence
of the success of its efforts through partnership with television programmes and
travel trade support. Not only have arrivals shown strong growth rates, but spending has also risen. The average net inbound tourist spend of United States tourists rose from ZAR36,660 (EUR3,750) in 2011 to ZAR46,291 (almost EUR4,500)
in 2012. While the depreciation of the South African rand has served to attract
United States visitors, the increase in spending per trip is still significant – at 4%
- in US dollar terms.
One of the most successful activities undertaken by South Africa Tourism in the
United States market was its partnership with quiz show Jeopardy! The South
Africa-themed episodes were viewed by over 36 million people, and the Sat website received nearly 20,000 visitors the day after the first episode. A customised
online competition featuring content in the Jeopardy! format reached 3.7 million
people and attracted over 70,000 entries. This integrated campaign focussed on
Jeopardy! had a strong social media element leading to over 218,000 Facebook
fans and 20,000 Twitter followers148.
146 Ibid
147 South African Tourism Annual Report 2012/13 op cit
148 Ibid
87
The recent growth
in US tourism
is evidence of
partnership efforts
Marketing Strategies for Tourism Destinations. Target market: USA
5
Competition is likely
to intensify
Key Factors in Destination
Marketing in the United
States
5.1 Market Perceptions
The programme of research and analysis undertaken in the four destinations
competing with Europe, as well major domestic cities, leads to the conclusion
that competition is likely to intensify as a consequence of:
•
•
•
the changing demographic nature of the United States market (the
two main changes being the increased proportion of Hispanic and
Asian populations, and the ageing of the population as a whole),
the ever-increasing competition from other destinations, attracted by
the potential of the richest economy in the world where outbound travel has not reached the level of other major industrialised nations,
the fast pace of technological developments, with digital technology
exerting a dominant influence of people’s perceptions and behaviour.
Australia ranks highest in a survey149 among United States citizens of leading
destinations across the world for:
•
•
•
•
•
world class beauty and natural environments,
friendly and open citizens/local hospitality,
family friendly destination,
spectacular coastal scenery,
great swimming beaches.
Among those United States citizens who had previously visited Australia, the
rankings for other elements are higher than for those who had not been to Australia. It comes top for:
•
•
•
•
•
•
•
•
•
safety and security,
value-for-money,
interesting attractions to visit,
good food,
wine and local cuisine/produce,
exciting events,
local festivals and celebrations,
clean cities,
good road infrastructure with clear signposts.
Only for one of the 13 factors – rich history and heritage – is Australia rated poorly.
149 Understanding the American Consumer. May 2014. Tourism Australia http://www.
tourism.australia.com/documents/Statistics/Consumer-demand-project-USA.pdf
88
Marketing Strategies for Tourism Destinations. Target market: USA
The difference in perception between those who have visited Australia and those
who have not is striking, indicating both the opportunities for Australia to exploit
and the task it has in convincing United States citizens of the merits of its tourism
attractions and facilities.
Brazil is highly rated by United States citizens in respect of: exciting events, local
festivals and celebrations (2nd in the global survey of destinations150), world class
beauty and natural environments (3rd), great swimming beaches (4th), spectacular
coastal scenery (5th), and good food, wine and local cuisine/produce (9th). These
results indicate the influence on United States citizens’ perceptions of broadcast
imagery of Brazil’s natural features and the Rio Carnival.
United States citizens’ perceptions of China are still clouded in uncertainty and
lack of clarity. The only factors in which it achieves a top ten ranking in the global
destination survey of Americans151 are: rich history and heritage (6th), interesting
attractions to visit, and exciting events, local festivals and celebrations (both 10th).
Though there is considerable suspicion among the populations of the United
States and China about each other – as reported in section 2.3. – the more open
attitudes of younger generations is positive for increased interaction, including
through tourism, between the two countries.
The difference in
perception between
those who have
visited Australia and
those who have not
is striking
US citizens’
perceptions of China
are still clouded in
uncertainty
Though South Africa does not feature in the top ten for any of the 13 factors that
influence holiday destination in the global destination survey, it is increasing United States citizens’ awareness and stimulating their desire to visit through the television programme partnerships it engages in, and following up on the momentum
created by its hosting of the 2010 soccer World Cup. For many United States
citizens, their image of South Africa is the stereotypical one of wildlife and safaris
but this is broadening as their knowledge of the country increases.
The image of Europe in the United States is resilient, renowned and admired for
its heritage, friendly people and cultural diversity. Even amongst the younger
generation of European ancestry, whose affinity with Europe is much looser than
their parents’ generation and who could have been expected to be less interested
in Europe – Europe is widely seen as an aspirational destination152. While older
generations continue to make repeat visits, for many younger United States citizens (e.g. “Generation Y” / “Echo Boomers” – aged 18-30) Europe offers a primarily cultural and unique experience that meets their holiday requirements, either on a one-off basis (i.e. as a “must- see” destination) or from time to time (as
somewhere worth re-visiting, probably to different countries each trip)153.
It is clear that all destinations are seeking to broaden their appeal to the United
States traveller, focussing both on their cultural heritage and natural environment,
and stressing their modernity as well as their history and traditions. By challenging traditional perceptions, broadening people’s understanding of the destination,
and stimulating interest in it, marketing can both provide a more extensive menu
of travel opportunities to those who have been to the country before and generate
demand from those who were not spurred into action from their previously-held
opinions and attitudes towards the destination. All destinations have campaigns
to broaden United States citizens’ perceptions combining the traditional and contemporary, thereby attracting a wider number of market segments seeking different sets of experiences.
150 Ibid
151 Ibid
152 US Outbound Travel Market Op cit
153 Ibid
89
The image of Europe
in the USA is resilient
Marketing Strategies for Tourism Destinations. Target market: USA
5.2 Marketing Performance and Opportunities
Without significant investment in studies and surveys to more fully understand the
attitudes, motivations and behaviour and characteristics of United States travellers, destinations targeting the United States market will not be able to develop
fully effective communication strategies and campaigns to convert undoubted
growing interest in outbound travel into actual travel to their destinations. Europe
– through ETC, and even long haul destinations like Australia and South Africa
are leading the way in this regard.
Budgetary information for marketing campaigns in the United States is not made
publicly available. It is clear, however, that destinations competing with Europe
are investing substantially in the United States market. Tourism Australia classifies North America (i.e. the United States and Canada) as a category 1 market
(believed to be worth over AUD5 billion – EUR 3.4 billion – in tourist spend per
year by 2020. To realise this potential, it is investing a substantial part of the 75%
of its marketing budget allocated to category 1 and 2 markets to activities in North
America.
South Africa Tourism’s budget for international tourism marketing in 2012/13 was
ZAR407 million154 (EUR 39 million), of which 60% (ZAR240 million – EUR 23 million) was spread across its “core markets” i.e. France, Germany, Netherlands, the
United Kingdom, Australia, China, India, Brazil and the United States.
Prime opportunity to
combine cultural and
national heritage in
easy-to-put-together
itineraries
The programme of research and analysis reported on in earlier chapters indicates that the prime opportunities in the United States outbound travel market
in the coming decade will go through distinctive and distinct tourism offerings
that combine cultural and natural heritage in easy-to-put-together itineraries that
allow the tourist to gain privileged insights and immerse themselves culturally in
the destination thereby gaining self-fulfilment. Many United States travellers also
look for good shopping, opportunities to relax and high quality dining.
Target markets will be across the generations and interests as destinations like
Brazil and South Africa follow Australia’s lead in persuading United States citizens that they offer more than those features for which they are well known i.e.
nature and Carnival and safari/wildlife respectively. At the same time, destinations like the other Southern American countries and Central American countries
like Mexico are actively diversifying and promoting the breadth of their tourism
product offer, with the advantage of appealing to the growing Hispanic population
in the United States, and becoming stronger competitors to established destinations like Europe.
The measurement of a destination’s performance is how well the products it develops meet market demand and how effectively it communicates to the target
segments the attributes of its offering, engendering the desire to visit and converting such desire into actual travel. Success means establishing:
1. The evolution of market trends and tastes – assessing the likely future
impact of changes in aspects such as demographic composition (with
growing Hispanic and Asian communities a particularly important factor in the United States) and technology (with increasing proportions
of the population having grown up with 24-hour access to all forms of
digital technology) which are serving to change socio-cultural values
and behaviour,
154 http://www.tourism.gov.za/AboutNDT/Publications/NW2928_Dept%20budget%20
to%20market%20SA%20as%20tourist%20destination%20intern_1.pdf
90
Marketing Strategies for Tourism Destinations. Target market: USA
2. The ways in which the destination tourism offer should be developed
to meet these changing traveller requirements, and the media and
messages by which the traveller experiences can best communicated
to the market.
A scattergun approach to marketing will not be effective with the increasingly
knowledgeable and demanding travellers. Destination marketing has to focus
on specific sets of consumers (and the specific channels that serve them), and
speak directly to their specific holiday buying criteria.
A scattergun
approach to
marketing will not be
effective
The segment analysis of United States outbound travellers outlined in section 1.3
identifies a set of segments showing travel preferences based on demographics,
lifestyle and values, and use and reliance on the different forms of digital technology i.e.
•
•
•
•
•
Baby boomers – ranging from 45 to 65 years of age, comprising
almost two-fifths of the United States population,
Generation X – the 31 to 44 year olds making up 30% of the population who are looking for something/somewhere that is both different
and sustainable,
Creative class – seeking self-fulfilment from deep experiences,
Echo boomers – 22% of the population, a highly demanding set of
travellers,
Seniors – the 65+ age group with a strong affinity to Europe.
Given United States citizens’ high level of usage of digital technology, all these
segments can be most effectively realised through the provision of information
and booking facilities via the internet, one particular target being the self-organised individual traveller or small groups. All opportunities to obtain positive exposure on social networks can also be of great benefit to destinations, as many
United States travellers look to recommendations from friends, relatives and others with experience of the destination to supplement their own research when
considering trips.
The reputation of a destination is important to many United States travellers in
choosing where to go. Europe is a well-established destination with which the
core of United States society has close affinity and on which they hold positive
views. That does not mean that future United States tourist flows to Europe are
assured. The opportunities for Europe to remain as a preferred destination for the
United States outbound tourist are based both on the established visitor patterns
and newer forms that incorporate more countries within Europe and feature different things to see and do.
Europe is a
well-established
destination with
which the core of US
society has close
affinity
For the older United States traveller on a return visit, the European experience
may comprise a number of the iconic features, but the emphasis will be on showing a different side of Europe, either through a focus on a specific aspect, like
gastronomy, or including visits to less well-known destinations, each with their
own history, natural features and cultures. While each European country has a
rich range of resources of appeal to visitors, it is the combination of countries on
themed itineraries that can provide the greatest set of experiences for the returning United States visitor, especially with information available in such a way that
travellers can plan and arrange their own itineraries.
The emphasis will
be on showing a
different side of
Europe
91
Marketing Strategies for Tourism Destinations. Target market: USA
Opportunity to
provide cultural
immersion combined
with Europe’s
accessibility
For younger United States travellers, seeking for their destinations to be both
distinct and distinctive, Europe’s opportunity rests on placing a greater emphasis
on the vibrancy of its living culture and the possibilities to engage with its hospitable people (“cultural immersion”) alongside its powerful historical and cultural
icons155. The way to boost growth in United States tourism to Europe lies in making Europe feel full of fun as well as historic156. This will entail embracing the opportunity to provide cultural immersion combined with an emphasis on Europe’s
accessibility, living history, special personal experiences and insiders’ tips presented in a way that is appealing, exciting and demonstrates the warmth of Europeans.
A Europe-wide marketing campaign outlining the opportunities for, and relative
ease of realising, multi-destination trips (i.e. simple immigration process with no
visa requirement, good inter-destination land and air transport services) provides
the basis on which individual European country tourism marketing organisations
can build on individually or in partnership with neighbouring countries. Creating
greater market awareness of the extensive range, difference but complementarity of European countries’ tourist features – including Europe’s “new” destinations
- can enable tailormade itineraries and packages to be put together for, and by,
United States travellers.
155 ETC-UNWTO United States Outbound Travel Market to Europe
156 Ibid
92
Marketing Strategies for Tourism Destinations. Target market: USA
Appendices
93
Marketing Strategies for Tourism Destinations. Target market: USA
Appendix 1 European and Competing Destinations WET TTCI and
Bloom Country Brand Rankings
Figure 24: WEF TTCI and Bloom Country Brand Rankings of European Countries
World Economic Forum Travel and Tourism Competitive Index
2013 (out of 140 countries)
Country
T&T
Regulatory
Framework
Switzerland
1
Germany
Austria
Spain
United Kingdom
France
T & T Business
Environment &
Infrastructure
T & T Human, Overall
Cultural
Rank
and Natural
Resources
Bloom
Country
Brand Rank
(Out of 187
Countries/
Territories)
1
2
1
14
8
6
7
2
3
2
11
9
3
11
14
5
6
4
2
17
10
3
5
5
9
7
11
7
4
Sweden
12
23
8
9
29
Netherlands
16
15
16
13
21
Iceland
3
13
36
16
99
Finland
5
22
24
17
46
Belgium
18
26
18
18
34
Ireland
7
19
40
19
37
Portugal
20
27
19
20
23
Denmark
25
16
26
21
45
Norway
11
28
33
22
40
Luxembourg
21
20
39
23
62
Malta
15
14
49
24
53
Italy
50
29
14
26
7
Cyprus
22
21
46
29
65
Estonia
10
30
51
30
57
Czech Republic
28
37
28
31
36
Greece
39
33
30
32
16
Croatia
42
39
42
35
27
Slovenia
33
35
52
36
48
Hungary
26
49
54
39
39
Montenegro
34
50
47
40
95
Poland
49
58
32
42
32
Turkey
64
52
27
46
9
Latvia
35
40
77
48
80
Lithuania
41
48
61
49
86
Bulgaria
58
45
53
50
52
Slovak Republic
43
60
55
54
60
Romania
66
68
73
68
74
Serbia
74
81
109
89
96
Monaco
-
-
-
-
-
San Marino
-
-
-
-
-
Source: WEF TTCI Survey, and Bloom Country Brand Ranking, Tourism Edition 2013
94
Marketing Strategies for Tourism Destinations. Target market: USA
Figure 25: WEF TTCI Travel and Tourism Regulatory Framework
Source: WEF-TTCI, 2013, 140 destinations
Figure 26: WEF TTCI Business Environment and Infrastructure
Source: WEF-TTCI, 2013, 140 destinations
95
Marketing Strategies for Tourism Destinations. Target market: USA
Figure 27: WEF TTCI Travel and Tourism Human, Cultural and Natural Resources
Source: WEF-TTCI, 2013, 140 destinations
96
Marketing Strategies for Tourism Destinations. Target market: USA
Appendix 2 Weekly City-to-City Flights from Main United States
Centres
Figure 28: Weekly City-to-City Flights from Main United States Centres to Primary
Destinations, June 2008 and 2013
Route
Direct Flights
Flights
Connecting Flights
Aggregate
Capacity
Average
Flight Time
(minutes)
Flights
Average Flight
Time 10 Quickest
Connections
(minutes)
AUSTRALIA
LAX (Los Angeles)
– PER (Perth)
-/-
-/-
-/-
135/229
1304/1282
MIA (Miami) - PER
-/-
-/-
-/-
-/-
-/-
NYC (New York)
- PER
-/-
-/-
-/-
29/57
1502/1484
LAX – SYD
(Sydney)
24/35
8,882/12,775
877/897
546/581
1008/1024
MIA – SYD
-/-
-/-
-/-
86/82
1294/1358
NYC - SYD
-/-
-/-
-/-
319/472
1328/1304
LAX – RIO (Rio de
Janeiro)
-/-
-/-
-/-
90/349
898/859
MIA - RIO
8/21
1,800/4,648
501/515
145/325
636/616
NYC - RIO
-/13
-/2,931
-/603
367/901
712/759
LAX-SAO (Sao
Paulo)
3/3
783/873
690/715
542/736
864/849
MIA-SAO
32/40
8,556/12,134
488/485
352/577
672/656
NYC-SAO
38/33
9,799/9,824
595/580
1,022/1,610
717/719
LAX-BJS (Beijing)
7/14
2,149/7,196
760/760
555/723
873/899
MIA-BJS
-/-
-/-
-/-
69/133
1071/1054
NYC-BJS
14/18
4,651/7,572
815/820
674/1,154
941/970
LAX-SHA
(Shanghai)
5/21
1,610/5,901
825/818
688/744
944/940
MIA-SHA
-/-
-/-
-/-
86/117
1134/1136
NYC-SHA
2/14
644/4,172
915/895
696/965
1040/1050
LAX – CPT (Cape
Town)
-/-
-/-
-/-
50/39
1548/1459
MIA - CPT
-/-
-/-
-/-
8/14
1739/1720
NYC – CPT
-/-
-/-
-/-
77/154
1229/1156
LAX – JNB
(Johannesburg)
-/-
-/-
-/-
194/245
1404/1302
MIA – JNB
-/-
-/-
-/-
33/97
1352/1132
NYC - JNB
-/7
-/2,219
-/905
288/427
1078/1140
BRAZIL
CHINA
SOUTH AFRICA
97
Marketing Strategies for Tourism Destinations. Target market: USA
Figure 28: Weekly City-to-City Flights from Main United States Centres to Primary
Destinations, June 2008 and 2013 (cont.)
Route
Direct Flights
Flights
Connecting Flights
Aggregate
Capacity
Average
Flight Time
(minutes)
Flights
Average Flight
Time 10 Quickest
Connections
(minutes)
EUROPEAN
DESTINATIONS
LAX – AMS
(Amsterdam)
7/12
1,981/3,756
620/632
933/1,063
750/765
MIA - AMS
7/2
1,918/544
530/580
669/747
640/672
NYC - AMS
49/42
12,499/10,363
460/459
3,170/3,652
543/546
LAX – LON
(London)
70/56
22,442/18,661
622/625
2,186/2,897
732/744
MIA- LON
36/35
11,349/10,392
508/512
1,416/2,314
630/643
NYC - LON
221/217
64,136/57,123
427/426
5,617/6,192
528/545
LAX – MAD
(Madrid)
-/3
-/850
-/680
645/792
807/800
MIA– MAD
18/21
4,607/5,933
510/519
493/804
712/676
NYC - MAD
35/38
8,850/9,050
447/451
2,118/2,777
523/585
LAX – PAR (Paris)
25/23
7,282/7,846
636/648
1,244/1,504
766/762
MIA – PAR
14/14
4,753/4,627
522/532
1,013/1,099
669/664
NYC - PAR
102/99
28,465/24,175
451/452
4,650/4,732
574/549
LAX – ROM
(Rome)
5/7
1,455/2,051
710/710
611/634
843/826
MIA - ROM
7/7
2,037/1,701
585/595
562/594
706/704
NYC - ROM
62/40
15,020/10,543
509/515
2,305/2,619
606/614
Source: Amadeus Travel Intelligence unit/Amadeus IT Group
98
Marketing Strategies for Tourism Destinations. Target market: USA
Figure 29: Weekly City-to-City Flights from Main United States Centres to Primary
Destinations, February 2009 and 2014
Route
Direct Flights
Connecting Flights
Flights
Aggregate
Capacity
Average
Flight Time
(minutes)
Flights
Average
Flight Time
10 Quickest
Connections
(minutes)
LAX (Los Angeles)
– PER (Perth)
-/-
-/-
-/-
161/214
1252/1280
MIA (Miami) - PER
-/-
-/-
-/-
-/-
-/-
NYC (New York) PER
-/-
-/-
-/-
21/34
1560/1522
LAX – SYD
(Sydney)
28/34
10,437/12,582
887/891
501/599
1022/1022
MIA – SYD
-/-
-/-
-/-
80/94
1342/1389
NYC - SYD
-/-
-/-
-/-
271/434
1317/1312
-/-
-/-
-/-
158/367
888/870
MIA - RIO
19/21
4,212/4,487
511/518
158/585
646/633
NYC - RIO
7/14
1,539/2,961
609/585
563/1,229
713/734
LAX-SAO (Sao
Paulo)
3/10
783/2,665
690/705
484/726
840/841
MIA-SAO
34/42
8,880/12,922
495/499
393/1,051
663/621
NYC-SAO
35/37
8,239/11,345
594/585
1,011/1,831
704/725
7/14
2,149/7,196
770/770
420/617
914/896
AUSTRALIA
BRAZIL
LAX – RIO (Rio de
Janeiro)
CHINA
LAX-BJS (Beijing)
MIA-BJS
-/-
-/-
-/-
46/144
1221/1063
NYC-BJS
12/18
3,886/7,579
813/826
466/939
1014/978
LAX-SHA
(Shanghai)
7/20
2,254/5,360
840/847
584/763
981/990
MIA-SHA
-/-
-/-
-/-
70/100
1161/1165
NYC-SHA
3/13
966/3,904
920/900
521/857
1076/1061
LAX – CPT (Cape
Town)
-/-
-/-
-/-
59/71
1442/1392
MIA - CPT
-/-
-/-
-/-
29/36
1591/1585
NYC – CPT
-/-
-/-
-/-
144/279
1226/1132
LAX – JNB
(Johannesburg)
-/-
-/-
-/-
123/187
1365/1306
MIA – JNB
-/-
-/-
-/-
56/114
1221/1122
NYC - JNB
-/7
-/1,771
-/885
314/433
1060/1162
SOUTH AFRICA
99
Marketing Strategies for Tourism Destinations. Target market: USA
Figure 29: Weekly City-to-City Flights from Main United States Centres to Primary
Destinations, February 2009 and 2014 (cont.)
Route
Direct Flights
Connecting Flights
Flights
Aggregate
Capacity
Average
Flight Time
(minutes)
Flights
Average
Flight Time
10 Quickest
Connections
(minutes)
LAX – AMS
(Amsterdam)
7/7
1,981/1,925
615/615
582/665
771/768
MIA - AMS
7/2
1,918/544
520/585
577/667
642/671
NYC - AMS
38/32
9,989/8,457
448/452
2,247/2,598
543/555
LAX – LON
(London)
45/42
14,343/15,041
624/632
1,303/2,279
738/766
MIA- LON
38/39
11,997/11,920
504/507
1,107/2,210
634/616
NYC - LON
180/199
54,836/50,112
422/426
4,065/5,474
523/542
LAX – MAD
(Madrid)
-/-
-/-
-/-
402/522
790/820
MIA– MAD
14/17
4,151/4,294
492/509
399/661
686/672
NYC - MAD
22/25
5,004/5,529
444/446
1,543/2,017
571/591
LAX – PAR (Paris)
17/12
5,276/5,046
637/650
744/941
752/778
MIA – PAR
14/13
4,753/3,662
515/526
864/925
641/675
NYC - PAR
74/67
18,299/16,601
439/446
3,238/3,236
557/561
LAX – ROM
(Rome)
-/-
-/-
-/-
317/267
813/830
MIA - ROM
7/7
2,037/2,051
560/580
340/407
712/710
NYC - ROM
29/11
7,176/2,823
506/510
1,250/1,475
598/608
EUROPEAN
DESTINATIONS
Source: Amadeus Travel Intelligence unit/Amadeus IT Group
100
Marketing Strategies for Tourism Destinations. Target market: USA
Appendix 3 TripAdvisor Ratings
Figure 30: TripAdvisor Ratings of Tourism Services in Competing Destinations
Destination
Country
Aspect
Rating
2012
2013
Destination
Country
Aspect
Rating
2012
2013
Accommodation
4.3
4.3
US
Eatery
4.1
4.1
Austria
Accommodation
4.0
4.0
Attraction
4.5
4.4
4.5
Eatery
4.3
4.3
Attraction
4.4
China
Accommodation
4.1
4.1
Brazil
Accommodation
4.0
4.0
Attraction
4.3
4.3
Attraction
4.5
4.5
Eatery
4.1
4.1
Eatery
4.2
4.2
Italy
Accommodation
4.4
4.4
Portugal
Eatery
4.3
4.3
Eatery
4.3
4.3
Accommodation
4.4
4.4
Attraction
4.7
4.7
Attraction
4.5
4.6
United Kingdom
Accommodation
4.2
4.3
Belgium
Accommodation
4.2
4.2
Eatery
4.2
4.2
Eatery
4.2
4.1
Attraction
4.5
4.5
Attraction
4.4
4.4
France
Accommodation
4.2
4.2
Hungary
Attraction
4.5
4.5
Eatery
4.2
4.2
Eatery
4.3
4.3
Attraction
4.6
4.5
Accommodation
4.4
4.5
Spain
Accommodation
4.2
4.2
Iceland
Attraction
4.6
4.6
Eatery
4.3
4.2
Accommodation
4.2
4.2
Attraction
4.6
4.6
Eatery
4.3
4.3
Ireland
Accommodation
4.5
4.5
Croatia
Accommodation
4.3
4.4
Attraction
4.5
4.6
Eatery
4.2
4.3
Eatery
4.4
4.4
Attraction
4.6
4.5
Germany
Accommodation
4.2
4.2
Poland
Attraction
4.6
4.6
4.3
Attraction
4.5
4.5
Accommodation
4.3
Eatery
4.2
4.2
Eatery
4.2
4.2
Attraction
4.3
4.3
Turkey
Accommodation
4.4
4.4
Denmark
Attraction
4.6
4.6
Accommodation
3.9
3.9
Eatery
4.3
4.3
Eatery
4.1
4.2
Greece
Accommodation
4.5
4.5
Sweden
Accommodation
4.1
4.2
Eatery
4.5
4.4
Attraction
4.4
4.4
Attraction
4.6
4.6
Eatery
4.2
4.2
Australia
Attraction
4.5
4.6
Norway
Attraction
4.4
4.4
Accommodation
4.1
4.1
Accommodation
4.0
4.0
Eatery
4.1
4.1
Eatery
4.1
4.1
4.3
The Netherlands
Accommodation
4.2
4.2
Romania
Accommodation
4.2
Attraction
4.5
4.5
Eatery
4.1*
4.1
Attraction
4.4
4.4
Eatery
4.3
4.3
South Africa
Accommodation
4.6
4.6
Finland
Accommodation
4.0
4.1
Attraction
4.6
4.6
Attraction
4.4*
4.3
Eatery
4.3
4.3
Eatery
4.2*
4.2
Czech Republic
Attraction
4.6
4.6
Slovenia
Accommodation
4.4
4.4
Accommodation
4.4
4.4
Attraction
4.6*
4.6
Eatery
4.2
4.2
Eatery
4.3*
4.3
Switzerland
Accommodation
4.2
4.3
Malta
Eatery
4.3*
4.3
Eatery
4.1
4.2
Attraction
4.4*
4.4*
Attraction
4.6
4.5
Accommodation
4.1*
4.1*
101
Marketing Strategies for Tourism Destinations. Target market: USA
Figure 30: TripAdvisor Ratings of Tourism Services in Competing Destinations
(cont.)
Destination
Country
Aspect
Rating
Estonia
Attraction
4.6*
4.5
Eatery
4.4*
4.3*
Accommodation
4.1*
4.2*
Bulgaria
Accommodation
4.1*
4.0
Attraction
4.5*
4.5*
Eatery
3.9*
4.3*
Cyprus
Accommodation
4.1*
4.3*
Eatery
4.3*
4.4*
Attraction
4.2*
4.2*
Slovakia
Accommodation
4.4*
4.4*
Attraction
-
4.3*
Eatery
-
4.2*
Latvia
Eatery
-
4.1*
Accommodation
4.2*
4.2*
Attraction
4.4*
4.5*
Luxembourg
Accommodation
4.0*
4.1*
Eatery
-
4.1*
Attraction
-
-
Monaco
Eatery
4.1*
4.1*
Attraction
-
4.2*
Accommodation
-
-
Lithuania
Accommodation
4.0*
4.3*
Eatery
-
4.3*
Attraction
4.5*
4.5*
Serbia
Accommodation
-
4.3*
Eatery
-
-
Attraction
-
-
Montenegro
Accommodation
-
4.3*
Attraction
-
-
Eatery
-
-
2012
2013
San Marino
Eatery
-
-
Accommodation
-
-
Attraction
-
-
102
Marketing Strategies for Tourism Destinations. Target market: USA
Appendix 4 Bibliography and References
The following reports, plans and other documentation have been consulted. References are given as footnotes in the body of the report and only published reports and statistical sources are repeated below.
United States of America
•
•
•
•
•
•
•
•
ETC Market Insights: USA 2009
ETC-UNWTO Study on the United States Outbound Travel Market to
Europe (draft) 2011
Profile of United States Resident Travelers Visiting Overseas Destinations: 2012 Outbound. National Travel and Tourism Office, International Trade Administration, US Department of Commerce
2012 United States Resident Travel Abroad. National Travel and
Tourism Office, International Trade Administration, US Department of
Commerce
Fast Facts: United States Travel and Tourism Industry, 2009 – 2013.
International Trade Administration, US Department of Commerce
Global Tourism Watch 2013. US Summary Report. Canadian Tourism
Commission
USA Market Profile. May 2014. Tourism Australia
OECD Tourism Trends and Policies 2014. US section. OECD.
Statistics, reports and other data relating to all markets
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
OECD Scheduled air traffic from each market into Europe, 2012, IATA
Scheduled air traffic from all global origins into Europe, Jan – June
2014, IATA
ETC Survey of Members’ Priorities: Markets and Products for 201415. ETC
ETC Marketing Activity Report, 2013, ETC
Tourism Satellite Accounts in Europe, 2010, EUROSTAT Methodologies and Working Papers
ITB World Travel Trends Report, 2011/12. IPK Consulting
Europe, the world’s No 1 tourist destination – a new political framework for tourism in Europe, June 2010, European Commission
The Travel and Tourism Competitiveness Report, 2013, World Economic Forum
UNWTO World Tourism Barometer, Volume 12, August 2014
Tourism Towards 2030/Global Overview, UNWTO, October 2011
UNWTO 25th CAP-CSA and UNWTO Conference on Sustainable
Tourism Development, April 2013
2011 Census. Australian Bureau of Statistics
Australian National Accounts: Tourism Satellite Account 2012-13.
Australian Bureau of Statistics
Tourist Satellite Account, 2011-12, Australia Bureau of Statistics, 2013
Tourism 2020, Tourism Australia’s Journey 2010 to 2013, Tourism
Australia, October 2013
Portfolio Budget Statements 2013-14 Budget Related Paper 1.16 Resources, Energy and Tourism Portfolio. Tourism Australia Budget
Tourism Australia’s 2012-13 Annual Report
CIA World Factbook
Megatrends: Ten new directions transforming our lives, 1982. Naisbitt, J.
103