MarketScan United Kingdom 2013 The Hague, April 2013
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 United Kingdom 2013 Inside knowledge of the English travel market is essential in order to gain access to this market. The MarketScan United Kingdom 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. Index MarketScan United Kingdom in a nutshell 3 English travel market 4 Travel to Europe 5 Internet and travel 6 Incoming tourism to Holland 7 Vacations in Holland 10 Holland as a holiday destination 11 Image of the Dutch people 12 Business trips in Holland 13 Trends and developments 14 Destination Holland: SWOT 15 Holland Marketing in United Kingdom 16 Contact 17 References 18 This MarketScan was put together by NBTC Research in cooperation with NBTC United Kingdom. 2
United Kingdom in a nutshell Population In total, there are over 62 million people living in the United Kingdom, of which 52 million in England. Over one out of four Brits live in London (8.2 million) or South East (8.6 million). Until 2030, UK population is expected to grow to 67 million. The majority of this growth will take place in England and Wales. (Source: UK National Statistics, 2011 Census) Economy The British economy is the 3rd largest European economy. In 2012, a growth of 0.3% was reported. The estimated growth rate for 2013 is 0.9%. GDP per capita was about 9% higher than the European average in 2011. In December 2012, around 7.7% of the total British workforce were unemployed, a number that is significantly lower than the European average of 11.8% in that same period of time. (Source: Eurostat, 2013) UK Population 2011 (x 1,000) England 52,060 Scotland 5,196 Wales 3,011 Northern Ireland 1,788 United Kingdom 62,056 Exchange rate Euro-Pound 1 = 0,85 (April 2013) Compared to last year, the Euro-Pound exchange rate increased in the beginning of 2013. Therefore, visiting Europe is becoming more expensive for the Brits. But it is still not as high as in 2009. (Source: www.xe.com, 2013) 3
English travel market The UK travel market is a so called mature market. In the year 2012, UK residents undertook nearly 185 million trips of which 126 million were domestic. Development domestic tourism UK Domestic travel in Britain totalled 388.2 million nights and generated 24bn in spend last year. Trips and nights remained flat compared to 2011 (-1% and 0% respectively), while expenditure increased by 6%. (Source: GBTS, 2012) Source: Great Britain Tourism Survey (GBTS), 2012 Total overseas trips 2012: 56.6 million During 2012, UK residents made an estimated 56.6 million visits abroad, unchanged from 2011. Overall, holiday visits fell 2% while those for business rose 2% and to visit friends or relatives rose 3%. UK residents have spent 32.6 billion on visits abroad in 2012, an increase of 3% from 2011. (Source: IPS, 2012) 4
Travel to Europe Trends in visits abroad from UK travellers Visits to Europe were broadly the same as in 2011 (44.2 million) but those to longer haul destinations were down (by 5% to North America and 2% to 'other countries'). UK residents spent 20 billion on visits to Europe. (Source: IPS, 2012) There is a continuing trend to shorter haul trips abroad. Visits to Europe have grown by 1% in the past 12 months (March 2012 February 2013) while those to North America and Other Countries have fallen 5% and 4% respectively. This could have been impacted by the double inflation rise in Air Passenger Duty (came into effect April 2012). Long haul destinations are likely to be most affected. (Source: ABTA, 2012) Source: International Passenger Survey (IPS) - Office for National Statistics, 2013 Purpose of Europe visits 66% holiday, 12% business Of the 44.2 million trips to Europe in 2012, nearly two out of three were holidays. In 19% of the cases family or friends were visited and 12% of the trips were for business reasons. (Source: IPS, 2012) (Source: IPS, 2012) 5
Internet and travel 83.6% of the British people have internet access. About 52.7 million British have access to the internet, which accounts for about 83.6% of the total population. (Source: Internet World Stats, December 2011) Just 13 keywords drive 50% of the search volume for the top 1,000 terms Study on UK search behaviour Half of all online travel search is driven by 13 words, with search terms dominated by cheap' and discount. Single generic terms drive big volumes. However, cheap' can be expensive. Companies at the top of the list are paying tens of thousands of pounds a month to be there. Furthermore, being on page one (of search results) is critical and becoming more so because fewer people are going to page two. (Source: UK Online Travel & Tourism Intelligence report, 2012) Travel transactions are mostly digital Data from international research firm Deloitte shows that 86% of overseas and 91% of domestic travel transactions in the UK are now digitally influenced.' That means even if the final purchase wasn't made online, almost nine in ten travel purchases are influenced in some way by digital channels such as websites, social media, peer reviews and smartphone or tablet apps. (Source: emarketer, august 2012 on ETC New Media Review) Source: UK Online Travel & Tourism Intelligence report, 2012 Mobile Mobile apps in the UK often do better than the more established online presence for some travel companies. Overall the hotels and hotel agents sector scored higher for search and booking via apps than the airline and online travel agent/operator sectors. (Source: edigital Research Study, 2012 on ETC New Media Review) 6
1.913 2.366 1.902 2.274 1.639 1.409 1.555 1.508 1.611 2.441 2.441 3.023 2.909 3.116 Incoming tourism to Holland (1) In 2012 over 1.6 million UK residents visited Holland Approximately 100.000 more than in 2011 (+7%). In total, they stayed for 3.1 million nights, which results in an average length of stay of 2 nights. For 2013, NBTC expects a growth of 5% in guests from the UK. (Source: CBS, 2012) One out of three is a business visit Of all 1.6 million UK residents that visited Holland in the last year, 65% had a holiday motive. One out of three visited our country for business and only three percent had another reason like visiting family/ friends or a school trip. (Source: NBTC Incoming Tourism Study, 2009) Development seats and flights UK - Holland Seats Flights (departures) 5.600.000 48.676 50.000 5.461.895 5.500.000 48.000 5.400.000 5.297.855 5.300.000 46.000 5.166.587 43.972 5.200.000 42.559 42.604 5.100.000 44.000 5.000.000 41.149 4.849.075 4.874.115 42.000 4.900.000 4.800.000 40.000 4.700.000 4.600.000 4.500.000 2008 2009 2010 2011 2012 38.000 36.000 Development inbound tourism from UK (x 1.000) 3500 3000 2500 2000 1500 1000 500 0 (Source: CBS, 2012) 2006 2007 2008 2009 2010 2011 2012 Guests Nights Number of seats and flights from UK grew After a decline in 2008 and 2009 (due to the economic recession and temporarily extra flight tax in Holland), the number of seats from the UK to Holland increased each year. In 2012 there were nearly 5.3 million seats available on a total of 44 thousand flights. On average, two out of three flights are from regular airlines, the rest is low cost. (Source: Capstats.com, 2013) Source: Capstats.com, 2013 Note: The figures provide insight in the capacity of seats and flights, not in the occupation 7
Incoming tourism to Holland (2) Dutch cities main destination During their stay in Holland, the British mostly visit the Dutch cities. Amsterdam registers by far the most guests (759,000 in 2012). (Source: CBS, 2012) Amsterdam UK overnight guests in Dutch cities (2012) Visits from Great Britain are less seasonal Compared to visits from other countries, the British visits are less influenced by seasons. They visit Holland all year round, but slightly more in April - July. Spring and Autumn are important city trip seasons. (Source: CBS, 2012) Utrecht The Hague 53,000 guests 56,000 guests Rotterdam 29,000 guests 759,000 guests Most used accommodation: hotel 94% off all British visitors stay in a hotel in Holland. The other 6% can be found in a holiday home, group accommodation or at a camp site (approx. 91,000 visitors in 2012). (Source: CBS, 2012) (Source: CBS, 2012) Maastricht 16,000 guests Spending UK visitors in Holland (2009) Per person per day: 194,- (Average all incoming tourists: 182,-) Per person per stay: 386,- (Average all incoming tourists: 404,-) Total spending UK residents: 545 million (Source: Incoming Tourism Survey, 2009) UK visits in Holland per quarter of a year Oct-Dec 23% Jul-Sept 27% Jan-Mar 21% Apr-Jun 29% (Source: CBS, 2012) 8
Incoming tourism to Holland (3) Transport to Holland other 65% of the British arrived by airplane in 2009 Of which 30% used a low cost airline. One out of ten visitors drove to our country by car (via Belgium or Germany) and the same amount arrived by boat or ferry. Only 7% used a coach to visit Holland. (Source: Incoming Tourism Study NBTC, 2009) 10% 10% 8% 4% 3% 65% (Source: Incoming Tourism Survey NBTC, 2009) Many visitors from Great Britain live in London or South East: Leeds/Manchester/ Liverpool 9% Londen 25% Rest of England 28% South East England 25% Source: Incoming Tourism Survey NBTC, 2009 9
Vacations in Holland British visitors undertake many city related activities Except for the tulip fields, the main activities (most important activity during a Holland visit) that UK residents undertake can be part of a city visit. Like walking, visits to restaurants and historical sites. Furthermore, they like to go shopping (45%) and use a canal boat (29%). 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 will visit Holland again in the future Of all Holland visitors, over two out of three say they will definitely visit our country again. Another 23% will probably come back for a return visit. (Source: Incoming Tourism Study NBTC, 2009) Probably 23% Maybe 7% Definitely 69% (Source: Incoming Tourism Survey NBTC, 2009 10
Holland as a holiday destination Well accessible vacation spot for short breaks Holland is considered as a well accessible holiday destination that is especially interesting for short breaks. There is more to Holland than just Amsterdam according to the British. Dutch architecture and culture are important points of interest. Furthermore, Holland is quite often associated with tulips, windmills and clogs in British circles. The graph shows the results of people that have visited our country (visitors) and that have not (non-visitors). (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 UK visitors UK non-visitors mainly tulips, windmills and clogs easy going 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 good service For more information on this image study, visit www.nbtc.nl for the summary and infographic. 11
Image of the Dutch people The Dutch are open and tolerant Dutch people are considered to be very open and tolerant. According to the British, Dutch people s strong points are their hospitality and friendliness. They also score high on helpfulness. Lower scores were measured on entrepreneurship and innovativeness. (Source: NBTC Holland image study, 2012) sporty reliable 90% 80% enterprising 70% pragmatic/result-oriented 60% innovative 50% 40% 30% internationally-oriented 20% open UK visitors 10% UK non-visitors 0% businesslike tolerant arrogant ingenious/inventive For more information on this image study, visit www.nbtc.nl for the summary and infographic. hospitable/welcoming helpful friendly 12
Business trips in Holland Almost 1/3 of British trips to Holland are business related Around 32% of British 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 Kingdom is responsible for the largest number of business travellers to the Netherlands in the world. In total 518,000 people visited the country in 2012 while on a business trip. (Source: NBTC, SIT 2009) Country of origin (top 5) Number of business travellers to Holland (2012) 1. UK 518,000 2. USA 307,000 3. Belgium 301,000 4. Germany 255,000 5. France 196,000 (Source: SIT, 2009) Individual versus MICE visitors UK to Holland(x 1,000) Other; 3% Business individuals ; 24% 32% business travellers Holiday; 65% MICE; 8% Visit our website on www.nbtc.nl for more information on our MC&E scan of the business market. (Source: SIT, 2009) 13
Trends and developments Economy The British economy is expected to grow in the coming years, which has a positive effect on leisure and business travel. Travel market The interest in city trips/ short breaks is still growing, but the competition is fierce due to many new (low cost) connections to other European cities. Many British believe that getting good value for money (not necessarily the lowest price) is an essential element when booking a holiday. A lot of consumers are increasingly seeking holidays that offer a more authentic or specialist experience. The over 55s, or Baby boomers, look set to enjoy lots of travel as the group least prepared to give up their holidays in times of economic difficulty. Furthermore, holidays continue to be popular amongst those under 24. Search and booking behaviour Consumers continue to book their travels relatively late. First because of uncertainty regarding the job market, exchange rates and economy. Second because of the ease of Internet search and booking at any time and any place. Increase in online booking and discount sites such as Groupon. Holidaymakers are looking for bargains. User generated content and evaluations of other travellers are becoming more important in the holiday search. Package holidays are becoming less popular, more and more British book their travel and accommodation separately. The Internet is dominating search and booking behaviour for holidays of UK residents. (Source: among others ABTA, 2012) 14
Destination Holland: SWOT Strengths Nearby market, short travel distance Easily accessible and not that expensive, also due to the availability of many low cost connections The Dutch are perceived as hospitable and friendly Holland has a good reputation in the UK Dutch architecture and culture are of interest to the British Holland is a destination for short breaks The Dutch speak English well (enough) Amsterdam is (still) one of the most popular city trip destinations Weaknesses Holland does not have a sun, sea, sand climate Although many know there is more to see in Holland than Amsterdam, this is not yet visible in visitor behaviour Many British still have a rather one-sided image of Holland (Amsterdam, clogs, tulips) Opportunities Market for city trips/ short breaks is still growing Number of overseas trips to Europe are growing Due to the economic situation at the moment, the British stay closer to home for their holidays Internet developments boosts travel (related =) activities and bookings in the UK Threats More competition due to the development of low cost air connection. Even more destinations are easy to reach. Due to the Euro-Pound exchange rate, visiting Europe is becoming more expensive again There are many new and trendy city-break destinations in Europe, but also in America (New York) There are still some travel constraints for consumers due to the economic situation 15
Holland Marketing in United Kingdom In the United Kingdom, NBTC focuses mainly on the following brand experiences: The story of Holland Essence SEE Holland and discover its heritage and culture United Kingdom 2012 Arrivals 175,000 Spending 75 million United Kingdom 2012 Arrivals 569,000 Spending 224 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 United Kingdom 2012 Arrivals 98,000 Spending 58 million For more information on the brand experiences, visit our website: www.nbtc.nl Holland marketing 16
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 British market and Holland-marketing activities in the United Kingdom, please contact: Netherlands Board of Tourism & Conventions 2 nd Floor, Portland House, Bressenden Place, SW1E 5RS London United Kingdom T: +44 077 8986 3783 E: nbtc4you@holland.com Contact at NBTC United Kingdom & Ireland Mrs. Sandra Ishmael T: +44 (0) 7789 863 783 E: sishmael@holland.com 17
References ABTA, 2012. Travel trends report 2012 Capstats.com, 2013 CBS, 2012. Statline (www.cbs.nl) Central Intelligence Agency, The World Factbook (www.cia.gov) Eurostat, 2013 Great Britain Tourism Survey (GBTS), 2012 International Passenger Survey (IPS), 2012 UK Office for National Statistics, 2013 Internet World Stats, 2011 (www.internetworldstats.nl) Incoming Tourism Study NBTC, 2009 NBTC Holland image study, 2012 New Media Trendwatch, 2011 (www.newmediatrendwatch.com) UK National Statistics, 2011 Census (www.statistics.gov.uk) UK Online Travel and Tourism Intelligence Report, Stickyeyes, November 2012 (http://www.slideshare.net/stickyeyes/uk-online-travel-tourism-intelligence-report) www.xe.com (The world s favorite currency and foreign exchange site), 2013 18