State of the Industry in the UK

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1 State of the Industry in the UK Insight into UK travel distribution channels, consumer trends and MA s positioning within the marketplace. Kirsty Dillury, Julie Greenhill, UK Office for MOTT

2 State of the Industry - UK UK Economic Overview How does the UK consumer buy travel What s happening in the Travel Industry How is Massachusetts Performing UK Activities in last 2 years Plans for the future

3 UK Economy: Robust The UK economy grew by 2.6% in 2014, its strongest growth rate since 2007 and up from 1.7% in 2013 The UK economy continues to grow although that growth has slowed down in relation to original forecasts. Single party Government Strong employment numbers Interest rates remain low, which puts more money in our pockets Affected by European Economy & Politics

4 The UK Travel Industry: who do we work with? Airlines Receptive Operators Tour Operators OTAs (Online Travel Agents) Travel Agents Cruise Lines Visit USA Association US Commercial Services Brand USA Travel Trade and Consumer Publications Travel writers & bloggers

5 The UK Travel Industry: ABTA Holiday Trends The UK market is a story of growth. ABTA s research findings suggest that growth in the number of holidays is being driven by more affluent consumers. Overall 77% of Britons said they took a holiday either at home or abroad in the 12 months to August 2015, which is slightly fewer than last year and more than 10% fewer than in 2011.

6 Travelling Companions: Holidays with extended family have grown from 7% in 2013.

7 Worldwide Holiday Types: City breaks and beach holidays continue to grow. Trends spike in European city breaks due to exchange rates. Cruise market is a specific age demographic.

8 What types of holidays are booked in the UK?

9 How does the UK Consumer book?

10 Trends by group

11 Outlook for 2016

12 The top 5 countries visited by UK residents have remained consistent since 2010

13 UK Marketplace in 2015/2016 Airlines: Consolidation & Mergers New Routes across the USA Global Entry Multi Destination fly drive itineraries and group tours Growth of the luxury market Growth of experiential travel Growth single travellers across age groups Rail Travel, Cruise

14 How does Massachusetts fit Actual numbers from OTTI are down by 16% year on year Tour operator performance showing slight growth or flat. Motorcoach operators report New England tour still performing. Availability and rates at peak times Looking ahead New flights coming online May 16 New hotels and experiences

15 MOTT Research on the UK Market UK Leisure Visitors to Massachusetts Planning time approximately 90 days Majority of visitors are adults only travelling with spouse, family, friends or alone. Very few young families. Most are staying in hotels and motels Mean nights on this trip are 15 and in destination mean is 5.6 nights. Most have been to the USA before and most visited more than 1 state as part of their trip. What did they and their companions do on their trip?

16 Which Airport did you pass through immigration and customs? What was your main destination? USA: 98% New England: 71% Massachusetts: 60% New York: 19% Boston JFK & Newark Washington DC Other

17 MOTT UK s Activity in the UK: Trade Travel Trade Activity Product & development meetings with tour operators Training with tour operator partners Trade Shows: WTM, IPW, Unite, Big Ireland Travel Event Training Roadshows: Visit USA, Travel Bulletin, NCL, Virgin Holiday and other trade partners Fam Trips

18 MOTT UK s Activity: Trade Co-op Marketing Activity with partners

19 Print and online campaign with BA & Brand USA For the period that the co-op marketing campaign ran Massachusetts saw year on year results as follows: Passengers: Room Nights: Average duration: Air Passengers: Revenue: 5% increase 70% increase 20% increase to 4 night average stay 5% increase 3% increase

20 Integrated Trade Campaign: Travel Weekly Cover Stars

21 MOTT UK s Activity: Consumer Campaign RHS Chelsea Flower Show & Hampton Court Flower Show Consumer Engagement at Show: 150,000 Visitors Consumer Awareness: Media and Advertising campaign to reach approx: 6 million consumers Earned Media Value: $2.9 million

22

23

24 MOTT UK s Activity: Consumer Shows

25 MOTT UK s Activity: Media Partners and Events Close contact with travel trade publications work to make sure Massachusetts included in USA news and round ups.

26 MOTT UK s Activity: Media Press Trips: Recently individual more than groups. Hosted Daily Telegraph, Evening Standard, Sunday Times Travel Magazine, Daily Mail. Media coverage of Massachusetts in 2014/15 resulted in 143 articles with an editorial value of $12, 183, 007 Since July this year over 100 articles with an editorial value of over $5 million.

27

28 Social Media & Website

29 Looking ahead New Flights New product opportunities Impact of world events UK resilient market Mission to UK in January: Leisure trade, media and MICE Continued presence at key trade, consumer and media events Group press trip Continued commitment to the market place

30 Thank You & Questions

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