Quarterly market report

Transcription

1 Quarterly market report (U.S. MC&IT) (Quarter 3, 2009) Market Highlights # of outbound travelers previous quarter: 1,675,739 - % change from previous quarter last year: -10.9% # of visitors to Canada previous quarter: 1,381,922 - % change from previous quarter last year: -10.3% Comments / Other information: Additional market statistics available through Tourism Snapshot. Air Capacity - Air capacity has been reduced out of Dallas on American Airlines. Remaining flights are full and cost of tickets are rising. - There will be a second daily flight from Chicago-Quebec added in September. In addition, a daily direct from Chicago to Regina was added. - Airlines continue to cut available flights, restrict flying with empty seats to save on fuel and labor. - Alaska Air has had success with a new flight to Maui from the Bay Area. Flights to Mexico have been down as a result of H1N1 fears. - Delta Airlines has officially become the largest airline in the world with the integration of Northwest into the Delta structure. - Delta Airlines has announced that they are continuing to reduce capacity of the airline by using smaller aircraft serving limited markets. 1

2 Economic / Political Environment GDP growth: -1.0% (2 nd Quarter 2009) forecasted economic growth: -0.1% Q unemployment rate: 9.7% August 2009 inflation: 0.1% July 2009 consumer price index: 0.1% July 2009 exchange rate: ( ) Comments / Other information - Layoffs still occurring in the incentive sector. - H1N1 concerns have had an impact on meeting attendance. Corporations are cutting costs and not allowing travel. As a result bookings are suffering due to lost attendance. - Conferences attendees are receiving handouts about health requirements, emergency preparedness and nearby medical facilities. Emerging Tourism Trends - Some association groups have slowed their booking process to only 3 years out instead of up to 10 years out. They still look at cities further out in terms of where they will hold their meetings, but they do not sign contracts until the meeting is about 3 years out. - Most destinations appear to allow associations to hold space without a signed contract under current economic conditions. Most corporate groups are 5 months to 12 months lead time on their meetings. - Value-added amenities and services are becoming more important. Many larger groups are insisting on items such as free internet access for attendees in their hotel rooms. - Clients are not only looking for a unique location for their meetings, but a location that does it's part on lessoning the "carbon footprint" the meeting has on the environment. Since Canada has always been eco-friendly, this trend needs to be a focus when selling Canada. - Airfare costs continue to be a major factor in determining where a meeting 2 Quarterly Market Report

3 is held. - Air Canada recent seat sales have helped make Canada a more desirable destination for planners that were considering Europe for an upcoming meeting. - Many planners have to continue to make cuts in meeting budgets to accommodate the higher cost of air travel. - Most air carriers have cut their routes by 15% to cover increasing costs of operations and decreased travel by consumers. - The use of online meetings is growing in popularity. - Incentive programs are becoming absorbed into corporate meetings creating hybrids of meetings with leisure activities combined. - Qualifying numbers are lower with existing incentive programs. - Incentive programs are planned for 2010 though in a toned down fashion. - More clients are looking at incentive programs for Additionally, more companies are adding a business component to incentive program. - Luxury and 5-star hotels are still deeply affected by public and media perceptions. - Leads for corporate meetings are slowly increasing. - In the insurance realm there is continued uncertainty in terms of future meeting plans. - Clients are looking for deals everywhere and they are demanding no attrition/no cancellation clauses. - Insurance and incentive clients are urging destinations to sell value and not the experience. - Travel caution is being exercised in relation to H1N1, due to travel fears of catching the H1N1 virus on planes and at hotels. - Economic development strategies to stimulate economic growth are including tourism as a way to invest in promising service-oriented areas. MC&IT International 3 3

4 The European Economy: - The speed of recovery of the economy will be determined in According to the Organization for Economic Co-operation and Development (OECD), recovery from the global recession is likely to arrive earlier than had been expected a few months ago but the pace of activity will remain weak well into next year. - Governments will need to continue to stimulate their economies as rising unemployment and weak housing markets continue to dampen private demand. For 2009, UK gross domestic product is expected to contract at an annualized 4.7%, which has dropped since their prediction in June of 4.3%. The Bank of England continues to offer lower interest rates and mortgage lenders are now starting to pass these onto the public. This should remain in force for the time being. - The exchange rate for the UK Pound to the Canadian Dollar is currently at: 1.00 GBP = CAD. Compared to the UK Pound against the Euro (1.00 GBP = ), means that many European companies are finding non euro destinations more attractive. Canada needs to take advantage of this selling point. Industry Update: - The 17th Annual Financial Benchmarks Survey of UK Event Organizers has just been released and one key point highlights that the effects of the downturn will be partially reflected in 2008 accounts and activity, but the real major effects will be seen in Market Development Activities: West: Number of in-market promotions: (1) Cirque du Soleil Client Event in Denver September 2009 Number of industry events attended: (2) MPI local chapter & SITE local chapter Number of Coordinated Special Events: (2) Live Canada in San Francisco; Educational Fam, to Vancouver & Vancouver Island September 2009 Number of trade shows: (2) Trailblazers in Toronto July; Motivation Show 4 Quarterly Market Report

5 (ITME) in Chicago, Live Canada 2009 San Francisco Number of city-wides: 0 South: - HelmsBriscoe Toronto/Niagara Edu fam July 23-26, pieces of business pending. - Live Canada Dallas. Midwest: Number of in-market promotions: (5) Number of industry events attended: (5) Trailblazers Incentive Marketplace July 17, 22, 2009;CTC cosponsored with Tourisme Quebec Cirque du Soleil Chicago; Live Canada Minneapolis-Chicago; Fairmont Client Event Chicago; Incentive Travel & Meeting Executive Show/Motivation show Number of Coordinated Special Events:(3) Live Canada 2009, Trailblazers Incentive Marketplace; Trailblazers Post Trip Niagara-on-the-Lake Number of trade shows: (2)CTC attended produced ITME; Trailblazers Number of city-wides: 0 Fams: -CTC sponsored air for Trailblazers Incentive marketplace in Toronto/Niagaraon-the-Lake 48 pax. -CTC sponsored air for FAM to the Wickanninish Inn/Wedgewood Hotel for 8 incentive pax from Midwest and Northern California. -CTC sponsored air for FAM to Vancouver/Whistler for Fairmont Hotels 12 pax.. East: Number of in-market promotions: (2) Live Canada NYC & Washington DC Number of industry events attended: (5)(ASAE, CESSE, Experient E4, Smith Bucklin Partner breakfast, Time Fore Nine tournament) Number of Coordinated Special Events:(4) (Canada breakfast at CESSE, group presentations to Courtesy Associates, Management Solutions and Airports Council Intl all with partners), On site presentations corporate meeting departments NY/NJNumber of trade shows:(1) ASAE Annual Meeting & Expo Number of city-wides: (1) 3 5

6 South East: - MCIT Atlanta participated with MCIT Dallas and MCIT Los Angeles in MPI WEC in Salt Lake City- trade show and presentation at Your MPI breakfast session (approx 300 attended) and at the Ambassador Reception following the trade show for new members and first time WEC attendees (approx 150 attended). - MCIT Atlanta and MCIT Dallas participated in NBTA trade Show and Convention in San Diego, CA August, Approx 2000 corporate travel managers attended along with approx 3000 allied industry members. New contacts from trade show and leads are being calculated. - MCIT Atlanta organized (with MCIT Dallas) the HB Toronto edu-fam July, opportunities pending. SEUSA had 9 of the 16 participants on the edu-fam. - MCIT Atlanta organized with MCIT Dallas the Off the Hook Edu-Fam of Sonora Resort/Whistler/Vancouver September, There will be 8 clients on the program. MC&IT International: - Currently working on a tactical and strategic plan through Oct 2010 with measurements, costing and anticipated partner revenue. Will be focusing on France, Germany, UK and Belgium markets in associations, international congress market, corporate, incentive and PCO s Professional Conference Organizers. - Working on the re-design of the CTC website to include European needs with a team from corporate. - Media fams to Canada and media interviews driven by Axis have given Canada exposure in the major European meeting and incentive publications. - The international sites and fam program from Europe to Canada was initiated. Five leads from one fam from London to Alberta in July. Currently following up with other fam destinations on lead results. - Live Canada London Sept 8, 2009 was a big success with over 85 buyers, 10 media and 17 partners in attendance. Contracted Meeting Review and online European Meetings to tape Live Canada London Event, for Live Canada video. - Acquired a GSA in early August Axis Travel Marketing Ltd. They will be the CTC voice in Europe. 6 Quarterly Market Report

7 MC&IT International Number of in market activities - 3 Number of industry events 2 (4) Media interviews in London August, MPI London - August Number of Coordinated Events (2) Axis Travel Marketing annual client event London early August, Live Canada London Number of Tradeshows 0 Number of citywide 2 secured both for Vancouver through our international site program Total MC&IT Market Development Activities Q3: Number of in market promotions: 12 Number of industry events: 16 Number of coordinated special events: 14 Number of trade shows: 10 Number of citywides: 2 Lead and Partner Revenue Report: MC&IT: (June 19 - September 19, 2009) Number of Leads (primary): 154 Association: 69 Incentive: 40 Corporate: 45 Primary Lead Potential Revenue: $100,737, CTC Revenue Summary Q3 CTC Cash Partner Cash Partner In- Kind Partner Third Party Partner Total 2009 YTD Invoiced $240, $661, $557, $77, $2,114,

8 CTC Activities Trade Development: West: - MPI World Education Congress in Salt Lake City, Utah in July, Received 3 leads from Southern California planners as a result of the tradeshow. - Successful sales mission in Utah with Tourism Whistler & DMC at the end of the MPI conference that secured a lead of 575 attendees for Whistler. - Three sales missions with partners Tourism Montreal, Edmoton Tourism and Travel Alberta that flew into market in the 3rd quarter. - Local sales calls continue to provide best result for lead generation. - SITE So-Cal's August 2-day meeting had 225 in attendance. Meeting planners from Southern California, Arizona and Nevada attended. South: - MPI WEC & 2 day tradeshow Salt Lake City July 11-14, NBTA Annual Conference & 3 day tradeshow San Diego Aug 22-26, Midwest: -CTC attended/produced Trailblazers Incentive Marketplace in Toronto. -CTC attended/produced Canada Pavilion at ITME September th. -CTC attended Fairmont pre-itme party. South East: - MCIT Atlanta participated in Live Canada in Dallas by bringing 11 clients from the SEUSA for the event. Clients came from Georgia, Alabama, Florida and North Carolina. - An educational session was organized for Live Canada Dallas it was titled C-Speak Boot Camp and moderated by Dawn Penfold, CMP of MeetingJobs.COM, and attended by approx. 40 planners. 8 Quarterly Market Report

9 MC&IT International: Trade Development - Seeking visibility in the international market place. This is being accomplished through the creation partnerships, with SITE International, MPI, IMEX, and Reed Exhibition for EIBTM, ASAE and the Leadership Center and CAT Communications. - Preparing for EIBTM in Barcelona early December 2009 working on enhancing the success of the tradeshow booth re-design from IMEX. Partners seem to be pleased with the open concept at IMEX. Encouraging each exhibiting Canadian partner to take part in the EIBTM hosted buyer program. Currently planning a Canada Night Event (Tuesday December 1, 2009) that will bring all hosted buyers from our partners, ASAE and PCMA together for a Canada hosted event. - The CTC joined an organization by the name of ICCA which offers a qualified international association and congress market database. Attending their annual conference in Florence early November. - Hired a local coordinator part time to assist in data entry of all the new European contacts, assisting with research, IMEX follow up, preparation and execution of Live Canada London, handling all international site and fam requests Public Relations/ Media: MC&IT International - MC&IT International has had success in the one month since bringing Axis Marketing on board with media interviews and media site visits to Canada. Currently measuring monthly the value of the editorial content and the effect it has on European planners. In the last three months individual sites and fams from Europe to Canada have been successful in creating lead generation. 3 9

10 Competitive Environment - Facing increased competition from hotels & CVB s everywhere that are giving incentives to try to get business. - Mexico tourism is suffering from lingering fears of H1N1 and escalating violence. - Staycations have transferred into staying close to home for meetings. Americans holding meetings close to office, or in same state and moving towards webconferencing. - Turkey, Italy and Greece are advertising heavily in the Midwest. - The continued condition of the economy remains as one of the number one challenges to the competitive environment. - Planners concerns about the image issues and negative rhetoric associated with hosting meetings continue to persist. - Meeting Planners are still recommending international destinations that are good value. - Along with cancellations, the number of relocated meetings has recently spiked. Meeting planners are changing venues and cities or both to appear more frugal to their businesess and organizations. Making 2 nd and 3 rd tier cities more appealing and competitive. - Meeting planners attending the educational sessions at Live Canada stated that they are being inundated by sales people looking for business. It has become a major issue because it is taking so much time away from their daily tasks and puts pressure on them to make decisions. - There is a definite push by associations to keep meetings in the United States. Canada is losing business to the DC area particularly Baltimore who has been aggressive with convention center packages and incentives. - The continuance of the GST rebate for meetings and incentive business in Canada has received positive reaction from meeting planners considering Canada. It proves to be a competitive edge when up against European destinations and some U.S. destinations. - The possibility of Canada opening up U.S. air carriers to have routes in Canada would make the air travel market to and from Canada more competitive. 10 Quarterly Market Report

11 Future Outlook - Business has been increasing slowly towards the end of the 2009 fiscal year. Lead times for booking continues to be short compared to past years, sometimes as little as several weeks for major meetings. - Meeting managers and corporate planners are looking for more cost effective solutions and combining meetings to reduce spending. One way they have looked at doing this is by combining more than one meeting in order to leverage cost savings and shorten total meeting time. - More planners and corporate travel managers are talking about SMMP and how it has helped them reign in expenses on travel and meetings through centralization processes. - Recovery in hotel occupancy expected in 2 nd Q of 2010, however room discounting will still be in effect resulting in room rate declines continuing through Green is the new gold; environment continues to be important to consumers. - Meetings business is starting to come back faster than incentive travel. - Business development continues to be a challenge in the current economic conditions. - Lead generation from new business is down. Locally based partners have indicated less RFP s are coming their way. The trend is expected to continue into first quarter of There are still opportunities for Canadian destinations. Associations continue to book into future years as conferences and meetings are cash generating tools for these organizations. - The mortgage and housing industry continues to suffer into the 4 th quarter of 2009, there was a small improvement with the increase of home prices in California for the first time in over a year. This news should help to signal a turn in the economy according to most analysts. 3 11