MarketScan USA The Hague, May 2013

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1 MarketScan USA 2013 The Hague, May 2013

2 NBTC Holland Marketing NBTC Holland Marketing (NBTC) NBTC is responsible for branding and marketing the Netherlands nationally and internationally. Using the 'Holland' brand, NBTC puts the country on the map as an attractive destination for holidays, business meetings and conventions. We carry out marketing activities in 13 markets, under the name of NBTC Netherlands Board of Tourism & Conventions. In cooperation with public and private partners, we attract visitors who spend money in Holland. We cultivate countries and regions that supply the most visitors to the Netherlands. Based on this philosophy, NBTC is active in Europe, North America, Asia and South America (Brazil). MarketScan USA 2013 Inside knowledge of the American travel market is essential in order to gain access to this market. The MarketScan USA 2013 offers relevant information about this country and its travel market to organisations in the travel industry and others. In this MarketScan, you will find a brief overview of the travel market as well as an insight into trends and developments. Inhoud MarketScan USA in a nutshell 3 American travel market 5 Travel to Europe 6 Internet and travel 8 Incoming tourism to Holland 9 Vacations in Holland 11 Holland as a holiday destination 12 Image of the Dutch people 13 Business trips in Holland 14 Trends and developments 15 Destination Holland: SWOT 16 Holland Marketing in USA 17 Contact 18 References 19 This MarketScan was put together by NBTC Research in cooperation with NBTC USA. 2

3 USA in a nutshell (1) USA: million people Biggest states: 1. California 37.3 million 2. Texas 25.1 million 3. New York 19.4 million 4. Florida 18.8 million 5. Illinois 12.8 million Age groups < 14 years old: 20% 14 to 64 years old: 66.2% > 65 years old: 13.9% Compared to the year 2000 the number of people of 65 years and over has increased about 15% (in total the population has increased 10% since 2000). The population is increasing The population is increasing, particularly by the high number of immigrants. Also the birth rate is higher than the mortality rate. It is expected that the United States will have 439 million Americans in Immigrants are mainly from Asia and Latin America. These nationalities represent one fifth of the population and are expected to double in (Source: U.S. Census Bureau, February 2012) 3

4 USA in a nutshell (2) Economy The Gross Domestic Product per capita in the USA is $ 49,800 on average, which makes the USA one of the richest countries in the world. The economy has been growing since 2010 after it dropped in Also for the coming years, growth is forecasted. (Sources: CIA World Factbook & OECD, 2013) Unemployment rate The unemployment rate from the total labor force in January 2012: 8.3% (in July 2010 this was 9.5%) (Source: US Bureau of Labor Statistics, January 2012) Economic growth (forecast) based on GDP, growth change in % from the previous period f USA 1.8% 2.2% 1.9 % Exchange rate Euro-Dollar 1 = $ 1.31 (April 2013) 4

5 American travel market 58.7 million trips abroad in 2011 The U.S. resident outbound market totaled 58.7 million in 2011, down three percent from Travel to overseas regions declined* five percent, while travel to Mexico and Canada were flat and down one percent, respectively. (Source: ITA, 2011) * Outbound tourism excluding Mexico and Canada Specific needs and interests of the American tourist: The American prefers to be addressed in his own language. Also contact with the locals is appreciated. Americans like to have options/ choices, for instance regarding room upgrades, value etc. Most of the transatlantic flights to Holland arrive in the morning. It is highly appreciated if hotels use check in times which are (more) in line with the time of arrival. Americans have high service expectations, that are in many cases not being matched by European hotels, restaurants and stores. Hotel rooms in America are relatively larger than the ones in Holland. This can be taken into account when they check in to avoid complaints. Americans are willing to pay for good service in restaurants. In America, it is considered normal to give 15%-20% tip for good service in restaurants. Handling complaints in America is completely established. They expect immediate and appropriate action in response to a justified complaint. The American is sensitive to America s image abroad. A negative attitude towards the U.S. policy is not being appreciated. The American expects the possibility to pay by credit card. Europe has a market share of 39.5% within the US citizen departures to overseas destinations (Canada and Mexico excluded) in 2012 (Source: ITA, 2011) 5

6 Travel to Europe (1) 29 million overseas trips in 2011, 11 million to Europe The number of US trips to Europe remained quite stable over the last years, around 11 million. Great Britain most popular country in Europe 2.4 million American trips were undertaken in Great Britain in 2011, nearly one out of four overseas trips. 0.7 million trips were spent in Holland, which is 6.6% of all American trips to Europe. This puts Holland in 6th place, after Great Britain, France, Italy, Germany and Spain. On average visited 2.2 European countries 2.2 countries have been visited by Americans while traveling in Europe in % has visited one country during a trip. The average length of stay was 19 nights. The average expenditure on a European trip is over $ 3,700 dollar per person. (Source: ITA, 2011) 1. Great Britain 24.9% 6. Holland 6.6% 2. France 18.2% 7. Switzerland 5.8% 3. Italy 17.5% 8. Austria 3.8% 4. Germany 16.5% 9. Greece 3.7% 5. Spain 11.2% 10. Russia 2.2% (Source: ITA, 2011) Top 10 European destinations (2011) 6

7 Travel to Europe (2) Holiday most important motive for the trip (43%) Transportation types used within Europe or Main purpose of trip in Europe: during their stay in a certain destination holiday visiting family/friends/relatives business purposes study/ teaching 43% Airline between cities 37% 5% 28% 21% Taxi/ cab/ limousine 37% Railroad between cities 30% City subway/ tram/ bus 29% Company or private car 24% Rented car 19% Profile Leisure travelers Americans who travel to a destination overseas for holiday or to visit friends/family have the following sociodemographic profile (travelers aged 18 years and over): 46% male, 54% Female average age: 46 (M) and 45 (F) average household income: $ 102,700 main regions of origin: New York (16%), California (11%) and New Jersey (9%) (Source: ITA, 2011) Profile Business travelers Americans who travel to a destination overseas for business or a convention have the following socio-demographic profile (travelers aged 18 years and over): 69% male, 31% Female average age: 46 (M) and 43 (F) average household income: $ 128,900 main regions of origin: California (12%), New York (11%) and Florida (9%) (Source: ITA, 2011) 7

8 Internet and travel Nearly eight out of ten Americans have Internet access 78.1% of the US citizens had Internet access in 2012, which equates about 245 million people. (Source: Internet Worldstats, 2012) Most important information source when planning a holiday is Internet, followed by information from family, friends and/or colleagues. The use of Internet via mobile phones for making holiday plans has been taking a significant share; 51% of the business travelers and 27% of the travelers for personal reasons use mobile Internet for their travel plans. Business travelers use Internet on the destination mainly for maps and searching for information about local activities and the destination itself. (Source: Thinkinsights, January 2012 on newmediatrendwatch.com) Most used online travel agents Expedia Inc. ranked as the top property in the online travel agents category in 2012 with 31.6% of all category page views, followed by Priceline.com Inc. (17.3%) and Orbitz Worldwide (12.9%). Mobile is becoming more popular Smartphone ownership grew rapidly in the US. Therefore, it is not a coincidence that US travellers increasingly turn to mobile devices to plan and book travel. 38% of leisure travellers and 57% of business travellers use mobile for travel information. In 2009, 25% of business travellers and 8% of leisure travellers used mobile. (Source: The 2012 Traveller study on newmediatrendwatch.com) 8

9 Incoming tourism to Holland (1) In 2012 over 940,000 US residents visited Holland* Which makes it the 4 th most important country of origin of visitors of Holland. In total, they stayed for 1.6 million nights, which results in an average length of stay of 1 night. For 2013, NBTC expects a growth of 2% in guests from the USA. (Source: CBS, 2012) One out of three is a business visit Of all USA residents that visited Holland in the last year, 57% had a holiday motive. One out of three visited our country for business and 11% had another reason like visiting family/ friends or a school trip. (Source: NBTC Incoming Tourism Study, 2009) Seats Development seats and flights USA - Holland Flights (departures) Source: Capstats.com, Note: The figures provide insight in the capacity of seats and flights, not in the occupation 0 (Source: CBS, 2012) Number of seats from USA dropped in 2012 The effect of the economic situation in the last couple of years is also visible in the development of seat capacity from the USA to Holland. Although the number of departures remained relatively stable, the number of seats varied a bit more. Airlines adjusted their capacity to the seat demand at the time. In 2012 there were nearly 2.8 million seats available on a total of ten thousand flights. (Source: Capstats.com, 2013) * The number of inbound travelers from the USA mentioned above differs from the number mentioned on page 6 of this market scan. This is caused by the different methods to measure the number of tourists to Holland. Information of US Department of Commerce/ITA is based on unique visitors, while CBS registrates a stay in Holland on two different locations as two visitis. 9

10 Incoming tourism to Holland (2) Dutch cities main destination During their stay in Holland, US citizens mostly visit the Dutch cities. Amsterdam registers by far the most guests (591,000 in 2012). (Source: CBS, 2012) Most visits from April - September Although US travellers visit Europe and Holland all year round, they have a slight preference for the Spring and Summer period. (Source: CBS, 2012) Amsterdam Utrecht The Hague 32,000 guests 21,000 guests Rotterdam US overnight guests in Dutch cities (2012) 15,000 guests 591,000 guests Preferred accommodation: hotel 99% off all US visitors stay in a hotel in Holland (approx. 937,000 visitors in 2012). (Source: CBS, 2012) (Source: CBS, 2012) Maastricht 10,000 guests Spending US visitors in Holland (2009) Per person per day: 287,- (Average all incoming tourists: 182,-) Per person per stay: 520,- (Average all incoming tourists: 404,-) Total spending US residents: 400 million (Source: Incoming Tourism Survey, 2009) USA visits in Holland per quarter of a year (Source: CBS, 2012) 10

11 Vacations in Holland US visitors undertake many city related activities The main activities (most important activity during a Holland visit) that US residents undertake can all be part of a city visit. Like walking, visits to museums and historical sites. Furthermore, they like to go shopping (38%), use a canal boat (27%) and visit the red light district (27%). But these activities are seldom the most important reason for visiting our country. (Source: Incoming Tourism Study NBTC, 2009) Intention to visit Holland again Many visitors have the intention to visit Holland again in the future Of all Holland visitors, nearly three out of four say they will definitely visit our country again. Another 20% will probably come back for a return visit. (Source: Incoming Tourism Study NBTC, 2009) (Source: Incoming Tourism Survey NBTC,

12 Holland as a holiday destination Hospitable and easy going country Holland is considered as a very hospitable and easy going country. What is interesting to see is that visitors of the United States are significantly more positive about the Netherlands than non-visitors. The majority of respondents was convinced that Holland has more to offer than just Amsterdam. High scores were measured on architecture and culture. (Source: NBTC Holland image study, 2012) offers a lot in terms of nature (reserves) high quality culinary range good price/quality ratio in hospitality lots of (window) shopping possibilities offers a lot to be active\sporty short breaks 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% hospitable country family-friendly expensive well accessible surprising destination USA visitors USA non-visitors mainly tulips, windmills and clogs many things in close proximity offers a lot in terms of good quality architecture and design offers a lot in terms of art variety, diversity and culture more to offer than A'dam easy going good service For more information on this image study, visit for the summary and infographic. 12

13 Image of the Dutch people Open and tolerant people The Dutch are very open and tolerant people. According to Americans, they are also very friendly and helpful when needed. Furthermore they are thought to be internationally oriented. The Dutch however score relatively low on ingeniousness. (Source: NBTC Holland image study, 2012) sporty reliable 90% 80% enterprising 70% pragmatic/result-oriented 60% 50% innovative 40% 30% internationally-oriented 20% 10% 0% open USA visitors USA non-visitors businesslike tolerant arrogant hospitable/welcoming helpful ingenious/inventive For more information on this image study, visit for the summary and infographic. friendly 13

14 Business trips in Holland Almost 1/3 of American trips to Holland are business related Around 32% of American visitors to Holland were in the country for business. Eight percent of these people were MICE business travellers (Meetings, Incentives, Conferences and Exhibitions). The United States is responsible for the 2 nd largest number of business travellers to the Netherlands in the world. In total 307,000 people visited the country in 2012 while on a business trip. Country of origin (top 5) Number of business travellers to Holland (2012) 1. UK 518, USA 307, Belgium 301, Germany 255, France 196,000 (Source: Incoming Tourism Survey NBTC, 2009) (Source: Incoming Tourism Survey NBTC, 2009) Individual versus MICE visitors USA to Holland (x 1,000) Holiday; 57% Other; 11% Business individuals ; 24% MICE; 8% 32% business travellers Visit our website on for more information on our MC&E scan of the business market. (Source: Incoming Tourism Survey NBTC, 2009) 14

15 Trends and developments Despite the economic downturn, the number of American guests to Holland remained relatively stable in the last years. For 2013 growth is being forecasted. Long-haul markets will initially drive growth in visits to Europe in Key indicators suggest further growth in travel from the US, where consumer spending has remained remarkably strong despite the threat of imminent spending cuts. (Source: ETC, 2013) The improved economy of the USA and the higher dollareuro rate has a positive impact on the demand for travel to Europe. But due to the recent economic recession, more people will be searching for deals and value for money. Visiting tourist highlights (must see Classics) is still important during a trip in Europe. However, more and more Americans also see Amsterdam as a city destination for discovering great boutique hotels, restaurants, shopping and nightlife. Post moderns audiences in America are looking for hip destinations to travel to in Europe as well. US travelers increasingly turn to mobile devices to plan and book travel. Most travel research and planning is done online. Leisure travelers turn to search engines to plan travel online; business travelers mainly prefer supplier sites. (Source: Google/Ipsos, 2012) US travelers seek value from trusted brands, therefore brand recognition is important for travel bookings. Destination branding through videos is getting more popular: travelers watch a mix of user generated and professionally made videos at all stages of travel planning. 15

16 Destination Holland: SWOT Strengths Many direct flights between America and Amsterdam English widely used (in Amsterdam and beyond) Safe, clean and well organized country with good transport links (road, rail, air) both domestic and abroad Friendly/helpful people Good reputation and image of Amsterdam Art/culture/architecture Biking, design, organic food are also strong Holland products Strong tourist symbols Affordable design hotels and US boutique chains opening in Amsterdam Weaknesses Holland s image doesn t resonate as a holiday destination image as much as (e.g.) Italy or France The image of Holland/Amsterdam as a tolerant/ liberal destination is not considered positive by all Americans Holland is a small country with a limited product variation Unpredictable weather throughout the year Holland is typically an add-on destination instead of a main destination, limited product proposition for extended stays in Holland beyond 2-3 nights Price- and service level of hotels Credit card not always accepted as main means of payment in Holland New public transportation ticketing (OV chip card) is not user friendly for tourists Opportunities European cities such as off-season city break destinations Americans travel to Europe year around (with focus on spring and summer) Growing number of seniors that traveled a lot in the past Increasing interest in architecture, art and design Increasing number of Americans in possession of a passport Increasing interest for unknown authentic Europe U.S. economic growth and higher dollar rate, consumer spending remained strong Value for money: willing to pay if they get value in return Threats Compared to other continents, Europe loses market share America s tendency to visit fewer countries during the European trip The popularity of Eastern European as a destination for individual travelers countries is increasing Upcoming popularity of exotic, undiscovered destinations (South America, Asia) Less traditional group travel, in which Holland has a strong position 16

17 Holland Marketing in USA In the USA, NBTC focuses mainly on the following brand experiences: The story of Holland Essence SEE Holland and discover its heritage and culture USA 2012 Arrivals 138,000 Spending 88 million USA 2012 Arrivals 296,000 Spending 161 million The creative city Essence EXPLORE the urban vibe with its rich and cultural life The inspiring meeting Essence GATHER with peers to create success USA 2012 Arrivals 43,000 Spending 42 million For more information on the brand experiences, visit our website: Holland marketing 17

18 Contact Added value NBTC NBTC can offer your organisation tailor-made advice, for instance: - Local network: trade and press - Local market opportunities, cultural expertise - Advice on marketing, communication - Co-marketing opportunity Contact NBTC For further details on the American market and Holland-marketing activities in the United States, please contact: Netherlands Board of Tourism & Conventions 215 Park Avenue South Suite 2005 New York, NY 10003, United States of America T: E: nbtc4you@holland.com Contact at NBTC North America Ms. Rosina Shiliwala T: E: rshiliwala@holland.com 18

19 References Capstats.com, 2013 Centraal Bureau voor de Statistiek (CBS), Statline ( CIA The World Factbook, 2013 ( Dollarkoers.nl ( ETC, European Tourism 2013 Trends & Prospects (Q1 2013) Google/ Ipsos, The 2012 Traveler research study Incoming Tourism Survey NBTC, 2009 Internet Worldstats, 2012 ( Hollands Bureau voor Toerisme & Congressen (NBTC), Onderzoek inkomend toerisme 2009 NBTC Holland image study 2012 New Media Trendwatch ( Organisation for Economic Co-operation and Development, 2011 ( US Bureau of Labor Statistics ( U.S. Census Bureau, 2013 ( US Department of Commerce / ITA 2013 ( ITA Office of Travel & Tourism Industries, 2011( 19

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