UK hiking tourism. CH - Visitnorway.com

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1 UK hiking tourism CH - Visitnorway.com

2 Contents 1. Executive Summary 3 2. Introduction 4 3. Research on the Internet: Phase : Tour operators: : Websites/forums: : Hiking/Outdoor magazines : Hiking organisations 5 4. In depth telephone interviews: Phase : Demand : Is the tour operator offering trips to Norway? : Presence in other markets : The typical UK Hiker : Accommodation : Willingness to pay (WTP) : Are the hikers happy to pay extra for additional things, apart from what is included in the price? : How often is your target audience travelling abroad on this type of holiday? : Are they interested in doing any other activities apart from hiking? : How to succeed as a good hiking destination? : What countries are hikers asking for? : What countries count as the top hiking destinations? : What challenges is Norway facing as a hiking destination? : Marketing Summary 11 UK hiking Innovation Norway,

3 1. Executive Summary In the first half of 2012, Innovation Norway in London did a market research project targeting UK hiking tour operators. The goal with the project was to get more knowledge about UK hiking tour operators, relevant websites, hiking and outdoor magazines and hiking organisations. The task was divided into two parts; the first part was internet based research, where we gathered information about the aspects mentioned above. After we had defined the tour operators, we picked out 10 and made telephone interviews with them. This was part two of the project. Hiking is a popular activity amongst the UK population. Most of our respondents informed us about a continued strong interest in hiking although the current economic climate is not the most uplifting. Some also reported a clear increase in this activity over the last year. Through this project, we have also approved Norway s strong attractive position as one of these countries you have to visit at least once in your life. Norway has a beautiful nature with a variety of landscape formations and an improving infrastructure. On the other hand, Norway has also got some major challenges due to its very high cost of living and short hiking season. People don t have a very good perception on what Norway has got to offer when it comes to hiking. It is often perceived as a hiking destination with very tough and hard treks. It is also more renowned as a skiing destination than for hiking. UK hiking Innovation Norway,

4 2. Introduction This knowledge transfer project was conducted by Innovation Norway s office in London. The project s target audience was UK citizens who have got hiking as a special interest. The project was conducted in two phases: Phase 1 was done through research on the internet and on the basis of existing knowledge. The following sections were mapped out in phase 1: - Tour operators who offer hiking trips - The most important websites/ forums dealing with hiking - Hiking/ outdoor magazines - Hiking organisations Phase 2 was done by conducting telephone interviews where we spoke to 10 different tour operators. These were a mix of tour operators selling Norway (7) and operators not selling Norway in their programmes (3): - 7 Tour operators selling Norway - 3 Tour operators not selling Norway We were unfortunately unable to get an even split between the two parts. The Interviews were conducted between February and March As a result of the telephone interviews and this report, we hope the reader will get a better understanding and knowledge about the UK hiking market, from a tour operators perspective: A better target audience perception, important success factors for the suppliers, what countries counts as the top hiking destinations, and what criteria needs to be met in order for a country or region to succeed as a hiking destination. UK hiking Innovation Norway,

5 3. Research on the Internet: Phase 1 The first mapping was internet based where we answered a number of already identified questions, within the topics mentioned in the introduction: - Tour operators who offer hiking trips - The most important websites/forums dealing with hiking - Hiking/outdoor magazines - Hiking organisations 3.01 Tour operators: We identified 23 UK tour operators. We looked at their target audience, what types of trips the operator is offering, if they have an environmentally friendly focus, if they offer trips to Norway, and if they are of interest to Norwegian suppliers Websites/forums: We identified four websites with focus on people having a big hiking or outdoor interest. We looked at their target audience, what their websites are about, if they are using social media etc Hiking/Outdoor magazines We identified 14 outdoor magazines. We looked at their target audiences, how the magazines are distributed, if it costs to advertise etc Hiking organisations We identified three hiking organisations where we looked specifically at membership numbers, target audience, if they are organising annual events and if they have a membership magazine etc. UK hiking Innovation Norway,

6 4. In depth telephone interviews: Phase 2 In the first phase we identified 23 different UK hiking tour operators. In depth interviews were conducted with 10 of them where we aimed at having a mix of operators selling Norway in their programmes and operators not selling Norway Demand Five out of 10 tour operators reported neither an increase nor decrease in demand of hiking holiday bookings in the last year. Two of the 10 tour operators we interviewed reported an increase in this type of activity, and the remainder three reported a decrease. This is what our tour operators said about demand, trends, and what they expect when they go on holiday: - The overall demand for good accommodation has risen. People are demanding better quality holidays. No one accepts sharing a bathroom anymore. More and more people are demanding en suite rooms. At the same time people don t want to spend a lot of money. - They want it to be clean and simple. There should be a flexibility to flip from one place to another, mix up the accommodation styles. It is important that the tour operators adapt with the customer s request accordingly. - Those tour operators offering a range of trips all over the world stressed that people going to for example Nepal are prepared to have lower standard accommodation as they will be camping, than people going to Norway where the hikers demand a much more comfortable type of accommodation and trip. - Some tour operators report a decrease in hiking holidays because of the economic situation at the moment, and the uncertainty of losing your job. Another trend is that people are booking their trips a lot later than they used to because of the economic uncertainty. - People want to go to Norway at least once in their lifetime. They want to see the country and are not so driven by the food or the accommodation Is the tour operator offering trips to Norway? Three of the 10 tour operators we interviewed offer trips to Norway. Areas include, Lofoten, Stalheim and the Fjord region. Three of the seven tour operators that are not offering trips to Norway have plans on starting doing this in the near future. The remainder four tour operators that don t have any plans on starting selling Norway have said that the reason for this is little or no market knowledge amongst the staff, and the perception of Norway being a very expensive place to visit. They also stress the fact that the walking season is very short. One tour operator said they used to offer hiking tours to Norway, but due to a lack of hikers on these tours they stopped these trips a few years ago Presence in other markets Out of the 10 tour operators we interviewed two of them have an office in another country. One of them is selling through agents in Australia, New Zeeland, America and Canada. The other one has got offices in America and Australia The typical UK Hiker There is a mix of the level on education amongst the hikers going on these sorts of trips. All our tour operators said their customers typically have a higher education of four years. Seven of them said their customers usually have an education level of four years or higher. UK hiking Innovation Norway,

7 Other things worth mentioning are that they typically want flexibility. They want to be able to add an extra night, or shorten the holiday. The hikers are typically between years old, and are interested in the cultural and historical aspects of the country or region Accommodation As mentioned earlier, the demand for good accommodation has risen, and people are demanding better quality holidays. This is what our tour operators said about accommodation: - Most tour operators said how their guests now are demanding en suite rooms at the hotels they are staying in. People want nice clean facilities and good quality food. - A few tour operators stressed that increasingly people want a swimming pool where they are staying. This was not so important only about 6 years ago. A lot of people want a SPA in the hotel or they want to be close to a town where there will be access to other activities. - British people like to have tea and kettle facilities in their rooms. - One tour operator said that their guests prefer small family run places with a personal touch rather than a standard hotel. (All the tour operators we interviewed are using hotels as the main sort of accommodation for their guest. Other types of accommodation being used for hiking trips are Bed and Breakfast, camping, and cabins) 4.06 Willingness to pay (WTP) It was difficult to get the tour operators to give us good biased answers regarding their customer s willingness to pay (WTP) for accommodation, renting of equipment, gourmet food, guiding and planning of the trip. This typically varies a lot depending on the type of trip and the type of customer. A lot of tour operators have hiking equipment included in the package. Others have guided tours included, and some do self-guided tours. Some people will always be more price sensitive than others. All of this has reflected the answers we have gathered, and needs to be taken in to consideration when reading our summary below: Accommodation: All 10 tour operators answered this question 30% High WTP 60% Medium WTP, 10 % Little WTP This reflects what we have already discussed in the accommodation chapter earlier. People are demanding better quality accommodation for the price they are paying, and are also willing to pay a little extra for it. Renting of equipment: As equipment is included in some tour operator s packages, this particular question was not relevant to them. Five tour operators answered this question. 20% High WTP 60% Medium WTP 20% Little WTP Gourmet Food All 10 tour operators answered this question. 40% High WTP 50% Medium WTP 10% Little WTP One of the tour operators said how the food needs to be good but not extravagant. Another said how their customers are not looking for gourmet food all along through the tour. Their expectations are already high so it does not have to be gourmet food- there is a fine line between gourmet food and high standard food. UK hiking Innovation Norway,

8 One tour operator pointed out how the majority of their guests are looking for affordable food. Another one said that good authentic food is more demanded than gourmet food as people want something that reflects the country they are visiting. Guiding Nine tour operators answered this question. Guides are included in some of the tour operator s packages and therefore people are not prepared to pay anything extra for it. One tour operator said how they don t offer local guides in the package but are happy to arrange for this, and then their customers are willing to pay the price for this. Another tour operator said how they have a full network of local guides but people are not very happy to pay extra for this. 33.3% High WTP 22.2% Medium WTP 44.4% Little WTP Planning/ facilitation of the trip All 10 tour operators answered this question. People are in general prepared to pay a higher price for the planning and facilitation of the trip, as they want a comfortable and memorable experience. 80% High WTP 10% Medium WTP 10% Little WTP 4.07 Are the hikers happy to pay extra for additional things, apart from what is included in the price? Our tour operators said their customers are often willing to pay extra for a sense of a journey, if there is something additionally they really want to see. This could often be sightseeing and activities that will enhance the experience, such as the local culture. The hikers will often visit museums. One tour operator mentioned how their customers often would attend cookery classes in Italy, and another said if there is a particular activity in particular area they would go ahead and recommend it to their guests, for example a boat trip in the fjord region of Norway. Other things we heard the hikers would pay extra for are drinks in the evenings and souvenirs. Some travellers are also prepared to pay extra for good quality and comfort. They could for example pay towards an upgrade of a room or a bigger car How often is your target audience travelling abroad on this type of holiday? We found it difficult to get a precise answer as this varies a lot. Most tour operators said their target audience would usually go on average two times a year, but we also heard three times a year. One tour operator said it could vary between 6 times a year for some and once a year for others. To Norway it s typically once in a life time but to other countries it might be more often Are they interested in doing any other activities apart from hiking? All our tour operators said their hiker guests would happily participate in other activities beyond hiking. Activities of interest that were mentioned amongst them were cycling, general sightseeing, historical sightseeing, kayaking, boat trips, glacier walking, museums, evening activities, food classes, Nordic walking, yoga, and visit wineries How to succeed as a good hiking destination? We received a lot of comments about this topic from our tour operators, and some of the comments that really stood out throughout all the interviews were the importance of a historical and cultural context. It needs to be a sense of history that interest and attracts the hikers. Beautiful landscape and scenery is very important too. Infrastructure plays a crucial role as well to be able to succeed as a hiking destination. UK hiking Innovation Norway,

9 Our tour operators mentioned the significance of having clearly defined stops, accurate route maps and good quality customer service. Accommodation is essential too; many tour operators discussed the importance of good quality accommodation, one of them even said how this is the most important factor and is what people will talk about after the trip. The tour operators also talked about the food and good company, and off course being very well planned and organised What countries are hikers asking for? A lot of our tour operators have said that Spain and Italy are the top destinations hikers are asking for. France is up there too. We also heard southern Europe and the Mediterranean countries. One tour operators said they have a lot of interest in Croatia and Montenegro. We also got the impression that UK is pretty strong. One tour operator mentioned Iceland, Norway, New Zeeland and Vietnam. Another one said people are mostly asking for Nepal and South America after Western Europe What countries count as the top hiking destinations? The list can be long as there are several good hiking destinations, and most tour operators found it a bit difficult to pick them out. This is what we gathered from them: (A few of them has been mentioned many times but is not shown below). Corsica, The Alps region, The Himalayas, England, UK, Nepal, South Africa, Croatia, Turkey, Italy, Slovenia, Nepal, New Zeeland Peru, Austria, Switzerland, France, The Dolomites, Iceland, Norway, Canada, Everest and the main peaks What challenges is Norway facing as a hiking destination? We experienced that everyone had quite a lot to say when it came to discussing Norway s challenges as a hiking destination. One of the main issues that were brought up several times was the perception of Norway as very expensive. Below is what our tour operators said more specifically: - There is a perception of Norway being very expensive. People don t know anything about the food. You think of it being black and white with no sense of colour to it. You associate it with Fjords (even trekking and walking but then it being really hard and difficult). The challenge is to turn this preconception: the food, the price, and that walking could be really interesting, that it can be historical and beautiful. Norway needs to add colour to the black and white existing perception. - The perception of Norway is very expensive. From a personal point of view the only reason why we don t sell Norway is because no one has got the local knowledge of Norway. - Cost, it s very expensive in Norway. Everyone I know coming back from there always complain about that it s so expensive. - The weather and the cost perception. People are not aware of what s available in Norway; is it very hilly, is it very tough hiking, or is it easy hiking as well? - People have got a very poor perception of what Norway has got to offer. - We have not investigated this enough. My perception of Norway is high cost and a very short hiking season. - Logistical issues; transferring of luggage from the hotel to another hotel or to the airport. The distance between the different types of accommodation is an issue. There is also a perception that it s only very tough treks available. - The terrain. The lack of way marked trails; this is only available for long distance trails in Norway, and not the short day walks. - Norway is not renowned as a hiking destination, it is more so for skiing. People are not aware of the geography neither Norway s Unique selling points. You reduce your market by not having the ease of UK hiking Innovation Norway,

10 travel, and Norways airports are located far away from the hiking destinations, which put people off from travelling there. - The challenge is still the available information on different hikes and information on restrictions of places to visit. But this has improved a lot. - Some areas didn t use to have marked path ways, but today they have. Our own product knowledge has also increased. When we speak to people in Norway they all say they are working on marking pathways etc. to make it more attractive for the tourist. They used to think that the locals knew everything, but did not think about the tourists. - The awareness, that it s accessible and the Infrastructure. Norway is perceived as a snow destination for a large part of the year, as well as a cruise destination (the fjords). It is not perceived as a hiking destination. - Price! Norway always comes out as relatively expensive. The Alps for example will always be cheaper than Norway and the prices will be more similar to UK prices. People will always go for the cheaper option Marketing All the tour operators we spoke to are using the Internet and their own websites to market themselves. Other types of marketing being used beyond this are newspapers, exhibitions and travel shows, special interest magazines, targeted mailing, agents, social networking, repeat business, own brochures, competitions and press releases. UK hiking Innovation Norway,

11 11. Summary Hiking amongst the UK population is in general still fairly attractive. Most tour operators said this type of activity has neither increased nor decreased in the last year and stand relatively strong. Two of the 10 operators we interviewed said it has experienced a clear increase in this type of activity. Furthermore three of our 10 tour operators expressed a decrease in hiking holidays as a result of the economic uncertainty, and the fear amongst their customers of losing their jobs. According to our tour operators have hikers in the last five to six years changed in terms of what they demand from a hiking holiday. Customers increasingly want a swimming pool or SPA facilities where they are staying. They no longer accept sharing bathrooms, and are expecting a lot more for their money when it comes to accommodation and the trip in general. We have through this research approved Norway s strong and attractive position as a country. Norway has a beautiful nature with a variety of landscape formations and an improving infrastructure. If we are to believe what our tour operators have got to say there are also some major challenges facing Norway, in order to succeed as a successful hiking destination. Some of the issues mentioned are the short hiking season, and the very high cost of living. Also the available information on different hikes and information on restricted places of visit was an issue reported repeatedly. Norway needs to turn this perception now; the price and that walking can be really interesting for a longer time. It is very important that the service and hiking products holds a very high standard so it s possible to defend the high prices. UK hiking Innovation Norway,

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