Business Travel Market Germany 2008

www.germany-tourism.de www.deutschland-extranet.de Business Travel Market Germany 2008 Overnight business trips in Germany in 2008 Domestic: 72.5 million 39.0 billion European: 10.4 million 6.7 billion Overseas: 1.4 million* 5.0 billion* Business day trips in Germany (BMWI/DWIF 2006) Domestic: 540.0 million 14.0 billion Total revenue from business trips Domestic: 64.7 billion * estimate

BUSINESS TRIPS TO GERMANY BY VISITORS FROM EURO OVERSEAS SOURCE MARKETS Other Thailand 1% Japan 6% Taiwan Arabic Gulfstates China 17% Singapore 2% Malaysia 2% USA 42% SOURCE MARKETS FOR BUSINESS TRAVEL The key European source country for business travel to Germany is Poland with 1.4 million business trips (mainly traditional business trips) and 1 market share, followed by Italy (800,000) and Austria (700,000). thousands 1000 800 600 400 595 614 625 648 687 714 41% 4 46% 27% 750 29% 1386 40% 30% Brasil 4% India 6% South Korea 6% Canada 200 Poland Italy Austria Switzerland Great Britain Spain Czech Republic Sweden LENGTH OF STAY 41% 59% 1 to 3 nights more than 3 nights The average length of stay was 6.5 nights for the total trip. TYPE OF ACCOMMODATION First-class hotels are the most popular choice for business travellers First class hotel Medium range hotel Budget hotel + pts. 39% + pts. 2-9% pts. Other commercial accom. 1 ±0% pts. EXPENDITURE The average spend per business trip was 632.00; the average outgoings per night were 98.00 (cf. 81.00 for holidays). MEANS OF TRANSPORT 20% 30% 40% 7 of business travellers fly to Germany or take their own car. Low-cost carriers account for 31% of flights less than 250 3 Plane 42% - pts. between 250 999 between 1000 2499 17% 47% Car Train Hire car 7% +2% pts. ±0% pts. 3 ±0% pts. more than 2500 Other 1 + pts. 20% 30% 40% 50% 20% 30% 40% 50%

PE AND OVERSEAS Business travel to Europe 1 Business travel to Germany 2 Germany's share of all outbound business trips involving an overnight stay is almost twice that of other European countries combined. EUROPEAN SOURCE REGIONS Eastern Europe account for around one third of all business trips to Germany, western and southern Europe for one quarter each. TYPES OF TRAVEL 54% 2 1 20.0 million holidays 10.4 million business trips 6.9 million trips to visit friends and family/other trips Business trips from Europe, Germany's most important market, rose slightly by 0.7% to 10.4 million in 2008. TYPES OF BUSINESS TRAVEL Eastern Europe Western Europe Northern Europe Mediterranean Europe 30% 2 26% +2% pts. + pts. 26% +2% pts. 50% -7% pts. Traditional business trip Conference, convention, seminar Trade fair, exhibition Incentive Germany: the world's no. 1 trade fair destination and Europe's no. 1 for conferences and seminars. BOOKING POINT 1 20% 2 For 66% of all business travel to Germany, at least one part of the trip was booked in advance. The Internet was the most popular channel for this. BOOKING ELEMENTS Accommodation and flights were the business trip elements most commonly booked in advance. Internet 47% Accommodation 8 Travel agency Direct booking of Accommodation Direct booking of travel Corporate travel agency Tourist information Office Club/newspaper/church/ school Other form of booking 1% 9% 31% 20% 30% 40% 50% Flight Hire car Travel insurance Event tickets Coach Train Ferry Other transport Other products 7% 17% 16% 1 12% 5 20% 30% 40% 50% 60% 70% 80% Source: GNTB/IPK World Travel Monitor 2007/2008

GERMANS ON BUSINESS TRIPS IN GERMANY VOLUME AND CATEGORY OF BUSINESS TRAVEL -1% pts. 81% +1% pts. Bavaria North Rhine-Westphalia Baden-Wuerttemberg Lower Saxony Hessen 72.5 million trips within Germany 16.3 million trips abroad In 2008, almost 90 million business trips involving an overnight stay originated from the German source market. Western Germany accounts for 81% of domestic business trips, eastern Germany for. The most frequently visited regions for domestic business trips are more or less the same as the most important source regions. 1 14% 20% The proportion of all overnight stays accounted for by business travel is highest in North Rhine-Westphalia, at 41% and lowest in Schleswig-Holstein, at. North Rhine-Westphalia Hesse Hamburg Brandenburg Bremen Thuringia Bavaria Saxony Berlin Baden-Wuerttemberg Rhineland-Palatinate Saxony-Anhalt Lower Saxony Mecklenburg-West. Pom. Saarland Schleswig-Holstein 29.1% 26. 25.9% 24.6% 22.7% 22.6% 22. 21.2% 20. 17.7% 15. 15.2% 9.4% 8.7% 8.4% 41.0% 1 20% MEANS OF TRANSPORT The most common way to travel on overnight business trips was by car (6). It was also the most popular mode of transport for all other types of business travel. LENGTH OF STAY 20% 30% 40% 50% of business trips entail just one overnight stay. Car 6 1 overnight stay 50% 2 overnight stays 24% Train 3 overnight stays Plane 11% 4 overnight stays 5 overnight stays Other 6 or more overnight stays 20% 30% 40% 50% 60% 70% 20% 30% 40% 50% 60% 70% Production credits Published by German National Tourist Board Beethovenstrasse 69, 60325 Frankfurt am Main For picture credits and information, visit: www.germany-tourism.de Norbert Tödter, Director of Development / Partner Management / Market Research Gefördert durch das Bundesministerium für Wirtschaft und Technologie aufgrund eines Beschlusses des Deutschen Bundestages. Picture Credits www.germany-tourism.de DB AG, Bernhard Huber mauritius images/juice Images Freiburg Wirtschaft Touristik & Messe GmbH & Co KG Design abold GmbH, Munich, www.abold.de Translation LingServe PLC, Aldershot Sources TNS Infratest market research on behalf of the GNTB and German Convention Bureau. In-depth study of the market for overnight business trips in Germany 2006 2008. Munich, March 2009.

1 3 37% 39% 31% 27% Nationwide trade fair/exhibition International trade fair/exhibition Regional trade fair/exhibition 14% of domestic business trips are to trade fairs/exhibitions, most of which are international in scope (39%). 20% 40% 60% 80% Visits to conferences/events Customer visits Visits to trade fairs/exhibitions Visits to branches Other 4% 11% +1% pts. +1% pts. 50% - pts. 3 +1% pts. Training Conferences/seminars/conventions Events Other events Trips to conferences/events account for a combined total of 37%. Over half of all trips are for training purposes. EXPENDITURE Germans spent around 39 billion on overnight business trips in their own country (not including private outgoings by family/friends/partners etc.); a further 10 billion was spent on foreign business travel. At 5, visits to conferences/events account for the largest share of expenditure. The average spend for domestic business trips involving an overnight stay was 538. Transport and accommodation costs accounted for around half of this. Accommodation expenditure was mainly for three and four star hotels. Conference and event fees amounted to a sizeable total of around 11 billion. Representative sample of 30,000 surveyed using CATI. Figures based on 4,297 overnight business trips in 2008 by German residents aged 18 and above. EITW (European Institute for the Meetings Industry) on behalf of the GNTB, German Convention Bureau and European Association of Event Centres. Meetings and Events Barometer, Wernigerode, April 2009. Online questionnaires were used to survey more than 3,000 German service providers, around 37,000 event organisers in Europe and over 600 experts worldwide. Expenditure on domestic business trips in million 36,637 business-related 1,838 private outgoings 1,010 family/friends/partners 12% 5 Expenditure on business trips by foreign visitors in million 22.4 billion: conferences/events 8.0 billion: customer visits 4.7 billion: trade fairs/events 1.8 billion: branch visits 1.7 billion: other 9,487 business-related 391 family/friends/partners 236 private outgoings Accommodation: 154.00 Transport: 117.00 Other: 268.00 IPK International World Travel Monitor Company Ltd. on behalf of the GNTB. World Travel Monitor 2007/2008, Munich, March 2009. Representative survey of travel behaviour in almost 60 countries worldwide (Based on all forms of outbound travel by over 15 year-olds that involved at least one overnight stay). Source: GNTB/IPK World Travel Monitor 2007/2008 / TNS Infratest Market Research 2006/2008

TRIPS TO CONFERENCES/EVENTS WITHIN GERMANY EVENT ORGANISERS Demand split equally between associations, institutions and the private sector. COMMUNICATION CHANNELS Participants mainly heard about the event they attended through an invitation. 4% 4% 7% 24% 40% Association/institution Participants' own company Professional training provider Professional conference organiser Other private sector company Not applicable Invitation Information from colleague/manager Event held regularly, was already aware of it 4 CHOICE OF COUNTRY At 7, Germany was the most popular destination among Germans for conferences and events. Almost 90% of trips by Germans to conferences and events were made in their own country. Germany Switzerland France Great Britain Austria Italy Spain US 26% 22% 20% 20% 1 11% 7 Mailshot from event organiser Other Information from customer/business partner Online Advert in a trade publication 9% 2% LEISURE ACTIVITIES 20% 30% 40% 50% 60% 70% On 40% of event-related trips, people also took the chance to engage in recreational activities. Guided tours were the most popular choice. Guided tours Café/restaurant/bar Walk 56% 5 60% MOTIVATION The key motivating factors for attending conferences/events were to gather information, share ideas and experiences and receive training. 20% 30% 40% 1 (very important) to 5 (not important at all) Gather information 1.8 Share ideas and experiences 1.9 Receive training 1.9 Discussions with trade professionals 2.1 Meet and talk with colleagues 2.2 Maintain existing contacts 2.4 Make new contacts 2.5 Sent by employer 2.8 Contact with customers/ business partners 2.9 Sightseeing Shopping Using spa and wellness facilities Played sports Visited friends/family Museums and exhibitions Cinema/concert/play/musical, etc. Other 9% 1 12% 17% 39% 46% TRAVEL AS INCENTIVE Two thirds of participants did not consider their trip to the conference/event to be an incentive. 69% 2 Yes, partly an incentive No, not an incentive Yes, very much an incentive Source: GNTB/TNS Infratest Market Research 2006 20% 30% 40% 50% 60%

THE EXPERTS' VIEWS ON THE CONFERENCE MARKET CONFERENCE AND EVENT DESTINATIONS Main winners among the scenic regions 2009: Black Forest no. 1 for the first time 1. 2. 3. 4. 5. Coastal regions and the North German Plain Baltic/ Baltic coast North Sea/ North Sea coast Mecklenburg Lakes Lüneburg Heath and Sylt Upland areas Black Forest Bavarian Forest Rheingau Franconia Sauerland/ Siegerland Alps and the Alpine foothill regions Lake Constance region Upper Bavaria Allgäu Zugspitze region Berchtesgadener Land Berlin, Munich and Frankfurt lead the way among the major cities in 2009. 1 6 6 9 5 8 9 7 4 5 4 3 3 8 1. Berlin 2. Munich 3. Frankfurt/Main 4. Cologne 5. Duesseldorf 10 10 2 2 1 7 6. Hamburg 7. Dresden 8. Stuttgart 9. Hannover 10. Nuremberg Bavaria, North Rhine- Westphalia and Hesse are the top regional destinations. NW 2 RP 5 HE 3 NS 6 BW 4 BY 1 1. Bavaria 2. North Rhine-Westphalia 3. Hesse 4. Baden-Wuerttemberg 5. Rhineland-Palatinate 6. Lower Saxony EXPERTS STATEMENT FOR 2009 17,7% - pts. 82, + pts. Germany s image as a destination for conferences and events is continually improving. Increase +-points in agreement since 2007. Experts give highest ratings to the road network, conference facilities and conference centres in Germany 5 (very poor) Transport Links Road Rail Domestic flights International flights Event infrastructure General conference facilities Experts on the subject of green meetings : 5 confirm that climate protection and green meetings are becoming increasingly important in Germany 1 of the experts surveyed believe the subject has a high importance as an image factor and USP for Germany 24% say that the subject is exaggerated and has not yet taken hold in Germany Room capacity Conference rooms Exhibition facilities Catering Quality of venues Congress centres Conference hotels Special venues 5 4.5 4 3.5

COMPARISON WITH OTHER LEADING DESTINATIONS A worldwide survey of experts ranks Germany as Europe's number 1 destination for business travel: 1. Germany 36.7% 2. Spain 11. 3. Austria 8.1% 4. Switzerland 6. 5. Italy 5.6% 6. Belgium 4.4% 7. France 3. 8. Ireland, Rep. 2.6% 9. UK 1.9% 10. Poland 1.9% 96% of organisers consider personal recommendations to be important or very important in the search for a location. Good transport infrastructure and a central location (e.g. in a town, region) are the most important criteria in the choice of venue. Security, high standards of equipment and visitor attractions caracterise Germany s image as a conference destination 5 (very poor) (very good) 1 Security Standards of equipment Tourist attractions Image as a conference and event destination Professionalism of event organisation Shopping facilities Leisure facilities/nightlife Value for money International outlook Amenities/quality of service Environmental friendliness Language skils Hospitality 2.04 1.96 1.97 1.79 5 4.5 4 3.5 3 2.5 2 1.5 1 2.15 2.32 2.38 2.42 2.38 2.15 2.22 1.53 1.69 (very good) 1 Financial crisis: for around one half of the companies surveyed, the crisis is affecting travel arrangements 1.96 1.8 1.87 1.9 1.28 1.54 1.68 1.54 1.68 1.7 1.78 1.47 3 2.5 2 1.5 1 yes Reduction in volume of air travel no Shift from air to rail More cost-effevtive travel (business economy, 1st class 2nd class) as well as the choice of hotel and the number of trips yes no Lower hotel category Lower number of trips 48.1% 51.9% 30.4% 69.6% 55.7% 44. 20% 40% 60% 80% 50.6% 49.4% 51.9% 48.1% 20% 40% 60% 80% Source: GNTB/EITW (European Institute for the Meetings Industry) 2009