Study: European Business Travel on the Rise

Business travel spend in Western Europe sees largest annual growth since global recession as it is set to grow 3.4% in 2014.

The Global Business Travel Association (GBTA), the voice of the global business travel industry, announced the results of its latest GBTA BTI™ Outlook – Western Europe report, a semi-annual analysis of the five most critical business travel markets in Europe: Germany, the UK, France, Italy and Spain. These five markets together form the lion’s share of business travel in the region, nearly 70%, and act as a good barometer of the health of the entire European business travel market.

Key highlights of the report:

• Business travel spending among the five markets is expected to hit $183 billion USD, (€144.7 billion) 3.3% growth over 2013. This projected gain would be the largest in Western Europe since the Great Recession.

• Germany remains the largest business travel market in Europe reaching $50.5 billion USD in 2012. This is expected to increase 5% in 2013 to $53 billion USD.

• The UK has the second highest level of spending on business travel in Western Europe – $40.6 billion USD in 2012 – expected to advance 1.6% in 2013 to $41.3 billion USD.

• Spain, Italy and France will all see their business travel markets contract in 2013 by -6.7%, -3.9% and -2.3% respectively.

• In 2013, domestic business travel will fare better than international outbound in all five markets except for the UK.

“After six consecutive quarters of decline, Europe has finally turned the corner. Challenges remain but we cannot ignore the economic progress that has been made and the impact that this will have on both domestic and international travel across Western Europe. Next year we can expect to see the largest annual growth in business travel spending in more than 6 years”, Catherine McGavock, Regional Director for Europe for GBTA.

“The upsurge in business travel spending, as noted by the BTI™, reinforces the fact that the Western Europe economy is stabilizing,” said Tad Fordyce, head of global commercial solutions at Visa Inc. “Although the recession took a toll on these markets, we are very optimistic this upward movement will continue the momentum into 2014.”

North South Divide Still Very Evident

European economic growth remains a two-speed story with the Northern markets showing positive growth that has not yet been enough to compensate for the still-negative performance of the Southern tier.

Last year proved to be a challenging one for the Western European economy and for business travel. Business travel policies were tightened and budgets were reduced or frozen. Total travel spend across all five key country markets combined to register a decline of 2.2% in 2012, to $177.4 billion USD. However, while Germany and the UK eked out small positive growth rates for the year, negative performance in Italy, Spain and France overwhelmed the slight growth in the North. The Southern countries are expected to continue to decline for the remainder of the year and into early 2014, but with Germany and the UK gathering momentum, the region will see a return to growth in 2014. The GBTA Foundation expects travel spending to be essentially flat in 2013 then rise by 3.4% the following year.

Eurozone Corporate Profits

Business travel is very closely tied to corporate profit performance, another indicator that is beginning to turn around in Europe.Corporate profits in Northern tier countries are beginning to show positive growth over year-ago levels.Theexpectation for the rest of 2013 and 2014 is for operating surpluses to stabilize and begin to improve, driven finally by some top-line revenue growth to combine with cost-cutting programs that have been in force since 2011. All of this bodes well for both domestic and international overseas business travel.

Country-Level Business Travel Outlooks

Germany

• GBTA forecasts growth in total business travel spending to hit 5% in 2013. 2014 will be another strong period for German business travel, which will grow 6.1% to $56.3 billion USD.

• Spending on domestic business travel is expected to end the year up 5.7% over 2012. Even more growth is in store in 2014 as domestic business travel spending is projected to surge 7.7% to $46.4 billion USD.

• GBTA expects international outbound travel to increase 2% in 2013, but fall again slightly in 2014.

United Kingdom

• GBTA expects total business travel spending to hit $41.3 billion USD in 2013, up 1.6% from 2012. Spending will continue to pick up pace in 2014, advancing 2.9%.

• Domestic spending is projected to grow 0.8% and 4.0% in 2013 and 2014, respectively.

• International outbound business travel is likely to outperform domestic spending in 2013 but that trend will reverse in 2014, mostly due to exchange rate effects. Total international outbound business travel spend is projected to grow 3.0% and 0.8% in 2013 and 2014, respectively.

France

• GBTA forecasts total business travel spending to fall by -2.3% in 2013 to $34.9 billion USD. Business travel spending will see small gains in 2014, expanding by 2.7% to $35.8 billion USD.

• Domestic business travel spending continues to stagnate in 2013 with annual growth of 0.3%. 2014 is expected to be a much better year for domestic business travel in France where spending is projected to grow to 4.6%.

• International outbound spending will fare significantly worse with expected declines of -6.7%. Losses are expected to slow in 2014 with total international outbound spending falling -0.9%.

Spain

• Spanish business travel spending is set to decrease in 2013 Q2 – its ninth straight quarter of decline, falling -6.7%. Quarterly growth will resume by the last quarter of the year and continue through 2014 with total business travel spending expected to grow by 1.6% in 2014 to $17 billion USD.

• Both domestic and international outbound business travel will see significant declines in 2013, falling -5.8% and -9.9%, respectively. Domestic business travel will lead growth in 2014, rising 2.1% as international outbound travel falls another -0.6%.

Italy

• GBTA expects a business travel spending loss in Italy amounting to -3.9% in 2013 with total spending gains for 2014 projected at 1.2%.

• Spending on domestic business travel in Italy will fall -3.6% in 2013 before expanding 1.4% in 2014.

• Spending on international outbound business travel will fall -7.2% in 2013 and another -0.3% in 2014.

Find the latest Tourism & Travel studies in TrendSpotting 2013

In Partnerships We Trust- Collaborative Destination Marketing

September, can also be considered as the month of fresh beginnings, and during the last few days we have seen the launch of quite a few exciting destination marketing initiatives. This week we have chosen to focus on the most recent collaboration and tourism partnerships at a destination level, this time especially focusing on examples of tight market segmentation profiling such as in the cases of France and Holland.

Also, in the spirit of the month, we are excited to invite you to check out our revamped website, where you can also find this and all the other blog posts gathered per category on the dedicated Blog section.

Europe’s New Campaign

Highlighting the diversity Europe offers to tourists, the European Union has just launched a new campaign promising a lifetime experience of the continent’s rich cultural heritage and stunning natural beauty to visitors  from India, Brazil, Russia, China, Chile and Argentina.

The Europe – whenever you’re ready campaign, which runs from this September to December 2013, is designed to remind tourists from these target markets to discover the old continent.

Thematic packages and itineraries, covering all four corners of the EU, are showcased, including pan-EU and regional tours on religious, cultural heritage and gastronomic themes—like wine and olive oil routes—and tailored packages incorporating historic and natural UNESCO sites according to Antonio Tajani, European Commission Vice-President, responsible for Industry and Entrepreneurship.

The campaign, which is financed by the European Commission, would be organised in partnership with the European Travel Commission (ETC) — the umbrella organisation for national tourism boards in Europe.

It also aims to add value to promotional activities of member states and the European tourism industry.

Well known travel writers, journalists and bloggers would be part of the campaign which would showcase the wide variety of unique opportunities that Europe offers to international tourists.

More: www.visiteurope.com, Europe.whenever.youre.ready, ec.europa.eu

France Asks “What’s Your Vineyard Style?”

Atout France–the France Tourism Development Agency is putting French vineyards in the spotlight through a huge online campaign in partnership with its Wine Tourism Promotion Club, which encompasses 17 wine regions. Other campaign partners include the French Ministry of Agriculture and VBT, a tour operator offering walking and biking tours.

For this campaign, Atout France is highlighting seven of France’s major wine regions: Champagne, Burgundy, Aquitaine, Rhone Valley, Alsace, Macon and Midi-Pyrenees. Participants are able to take the quiz “What’s Your Vineyard Style?” to form their ideal vacation itinerary based on their “character”, by choosing between preferences like cities or countryside and Beef Bourguignon or Salmon Tartare.

After completing the quiz, each person will be matched to a particular wine region based on their answers. Participants also have access to special deals, itineraries and trip ideas based on their matching wine region.

Approximately 7 million people will be reached through this online campaign, including subscribers of The New York Times, the Travel Channel, Smithsonian Magazine, Fodor’s and Atout France’s consumer newsletter.

More info: us.franceguide.com, heraldonline.

“Faces of Holland” & Orbitz

The Netherlands Board of Tourism & Conventions (NBTC) and  Orbitz  just announced a joint marketing partnership to launch NBTC’s new leisure marketing campaign, “Faces of Holland.” The campaign encourages travelers to learn and explore the fascinating stories behind Holland’s most recognizable icons, like canals, bicycles, windmills, tulips and Dutch Masters such as Rembrandt and Vermeer.

Throughout the campaign, NBTC and Orbitz Worldwide will work together to leverage new cross-platform media programs that will increase awareness of Holland as a leisure destination and drive online travel bookings amongst target audiences.

A wide range of strategic marketing efforts are to be employed, including retargeted online ads, while in addition to the icons of Holland, major upcoming events are also to be highlighted throughout the campaign.

NBTC has launched a “Faces of Holland” website which includes original videos and specific itinerary suggestions to help travelers meet all the “Faces of Holland”.

More info: www.holland.com

Destination Partnerships- Who’s your buddy?

In a highly competitive tourism marketplace and especially during times when every part of the available tourism funds matters, cooperation in tourism development and marketing at a regional and cross country level is certainly the way forward.

The initiatives that follow, initiated by destinations all around the world, show us that when it comes to tourism product development and targeted marketing, for increased destination awareness, visitors expenditure and local economic development, two -or in some cases more- is better than one!

China & Korea Join Marketing Forces

The China National Tourism Office (CNTO) and Korean Tourism Organization (KTO) launched a joint consumer travel marketing campaign for the U.S. market.

The campaign is built around a website —www.visitchinaandkorea.com— featuring vacation packages to both China and Korea. The website is being promoted through an extensive campaign of both banner and search engine advertising. The objective of the joint marketing campaign is to raise awareness of travel to China and Korea, as well as to promote U.S. outbound travel bookings to China and Korea by driving traffic to tour packages featuring both countries. The campaign began in September and will run through December. The new website features a range of itineraries from experienced tour operators.

“By working with our supplier partners to develop these exciting and appealing tour packages, we will be able to provide diverse choices for travel consumers looking to discover the true magic and meaning that make up China and Korea,” said Xinhong Zhang, director of the China National Tourist Office in New York.

“The travel marketplace is ultra-competitive. It is no longer enough to fly to one destination in a region, even to China. We must make it as easy as possible for tourists to come and discover China and Korea, and begin to see what these two countries have to offer for a complete vacation experience.”

Source: www.travelpulse.com

New York City’s got Seoul

Seeing potential in attracting more travelers from Asia, New York City’s tourism agency recently announced a partnership with the government of the South Korean capital to spark more cultural and recreational visits between the two metropolises.

As part of the agreement, an advertising campaign will appear in the entertainment and shopping districts of both cities. More than 130 posters in Seoul will promote travel to New York City; 70 posters in the city will encourage New Yorkers to visit Seoul. Digital ads for Seoul also will appear in Times Square. In addition, Korean Air is offering a discount on flights between Seoul and New York City for a limited time.

The two cities have much in common. “Both are global leaders of business, innovation, design and style,” said George Fertitta, chief executive of NYC & Company. “Both are pop culture capitals.”

The partnership is NYC & Company’s first with an Asian country. It previously formed partnerships with London, Madrid, Sao Paulo and Miami. NYC & Company said travel from South Korea to the United States rose 49 percent last year. About 223,000 South Koreans visited New York City in 2010. Among them, about 60 percent visited for leisure and 40 percent to see friends or relatives. More than 650,000 traveled from the U.S. to visit Seoul, a city of almost 10 million.

Source: online.wsj.com

Holland & France Target U.S. & Canada with Social Media Campaign

The Netherlands Board of Tourism and Conventions (NBTC), the France Tourism Development Agency (Atout France), Air France and KLM launched a new social media promotion, called “What’s Your City-Self?” Are you a fashionista or an avid art lover? A design aficionado or a foodie? Until Oct. 26, the national tourist boards of France and The Netherlands as well as Air France and KLM, aim to help U.S. and Canadian travelers discover the individual character that each of these cities have to offer.

“Travelers from the U.S. and Canada often don’t realize how close Amsterdam and Paris are to each other,” said Conrad van Tiggelen, director, North America for NBTC. “By finding out your unique city-self through our joint Facebook application, we’re hoping travelers will be inspired to visit either destination this fall.”

By answering five questions, travelers can find out if they have more in common with Paris or Amsterdam. Once they have uncovered their city identity, travelers will be given itineraries and detailed information on what attractions to visit on their next trip to either Paris or Amsterdam. By entering the quiz through the NBTC, Atout France, Air France or KLM Facebook pages, contestants are automatically entered for the chance to win one grand prize trip for two and experience two nights in Paris and two nights in Amsterdam, including complimentary air transportation on both Air France and KLM.

Sources: www.holland.com, www.travelpulse.com

Cantata, Joint West Europe Tourism Development

Celtic Authentic Niche Tourism Advancing the Atlantic Area

CANTATA2 is a 2.2. million euro tourism development project funded through the Interreg IVB Atlantic Area Programme and working in Denbighshire in North Wales in the UK; Shannon, on the West Coast of Ireland; Galicia, in North West Spain; Poher, in West Central Brittany, France and Montemor-o-Velho, in Western Portugal.

Originally piloted in County Clare, Ireland, as the Live the Life Scheme, it was recognised that tourism is a key economic driver in Europe but recent research indicated that visitors were becoming increasingly suspicious of mainstream marketing; they suffered from marketing overload and could be disappointed by their tourism experiences.

Mainstream tourism drives the visitors to tourism ‘hot spots’ or ‘honey pots’ whereas CANTATA2 aims to move visitors from the ‘hot spots’ to more peripheral and under developed areas and deliver authentic and genuine visitor experiences, thus promoting and strengthening local distinctiveness.

CANTATA2 is the second phase of this project, following a successful phase one that ran from 2005 to 2008.
In phase one, the project carried out research studies and made connections with the local tourism trade to get to know the local businesses and their problems. It also worked with the trade to help promote the local distinctiveness as well as providing opportunities for SME’s and micro-businesses to network and undertake skills training designed specifically for them. The project started at grass roots level, bringing in the local trade early on to tell CANTATA what they wanted from the project as well as steering the project on an ongoing basis. Its success lay in the ability to fill gaps that other projects and funding streams were not able to fill and in it approach to working in an organic manner, continually developing its actions to meet the needs of the tourism trade.

CANTATA2 will capitalise on the knowledge gleaned from phase one and develop the ideas into tangible results. The business networks will be strengthened and more ownership by the local trade will be visible. Results will also include actual tourism products to attract and retain visitors, such as food trails, e-tourism products and trails, cultural events, marketing campaigns. New, innovative technology and marketing methods will be explored and utilised and skills in such will be passed on to the trade.

People are at the heart of CANTATA. The project is intended to foster a sense of pride within these local communities, pride in the region and in the way of life. This will communicate itself to the visitors in terms of a welcoming attitude and in-depth knowledge of the area, a confidence that what the area has to offer is of interest and value to the visitors.

Source: www.cantata.eu.com

Africa Regional Brand Development – Three Countries, Three Cities

Africa tourism authorities have undertaken to encourage foreign tourists to use the recently launched Three Countries, Three Cities tourism route which involves Swaziland, Mozambique and Mpumalanga Province in South Africa.

The Triland concept is about creating synergy between the three countries where tourism is concerned. It is aimed at making visitors enjoy tourism experiences unique to each of the three countries in one route over a period of 24 hours or more.

Swaziland, for instance, is renowned for its culture and festivities, Mozambique is known for its beaches and vibrant nightlife, and Mpumalanga for its wildlife in Kruger National Park and also the breathtaking natural landscape. The proximity of these countries to one another was seen as something that would make it possible for tourists to have a wholesome experience in a short space of time. They can travel on their own or use tour operators to follow a set route that involves the three countries.

“The new brand will be targeting… international markets such as the United Kingdom, France, Portugal and Italy, to name but a few. Mpumalanga will lead with its flagship wildlife offerings, Mozambique with its pristine beaches and Swaziland will focus on an authentic cultural experience,” said Mpumalanga Tourism and Parks Agency (MTPA) spokesperson Kholofelo Nkambule. The new regional brand seeks to position the region as a world class tourism destination, contribute to employment creation and economic growth.

The launch of the Three Countries, Three Cities brand follows the signing of a Memorandum of Understanding that was signed by the MTPA, National Tourism Institute of Mozambique (Inatur) and Swaziland Tourism Authority (STA) in 2009. “Stronger relations have been forged with our counterparts in Mozambique and Swaziland, which will make transfrontier tourism a reality, presenting some fantastic multi-destination opportunities for local and international tourists alike,” said Nkambule.

MTPA acting chief executive Nthabiseng Motete said the new brand would also develop sustainable and responsible tourism, participate in the conservation and protection of biodiversity and preserve cultural value and national pride. “The three destinations truly complement one another,” said Motete. She said the new brand would lead to increased lengths of stay, which would translate into economic spin-offs for the region.

Inatur chief executive Hermenegildo Neves said the three countries would work together for a common goal, which is to establish a common business framework for tourism in the region. “By working together, we can all achieve a much more desirable destination status, pooling our resources where marketing and product development are concerned”.

Source: www.buanews.gov.za

New Tourism Marketing Initiatives by Queensland, Japan & France

Share some Queensland holiday love

Australians have been urged to visit Queensland and share some holiday love with friends and family as part of a new marketing campaign valued at $800,000. The national ‘Love a Queensland Deal’ marketing campaign began over the weekend and will run for four weeks.

A mix of print, television and online advertising has been prepared to encourage people to book a Queensland trip now and travel during a quieter time of the year.

“We already know that Queensland is where Australia Shines and I encourage Australians to find a deal they love so they too can find their own ‘Queensland shine’,” said Tourism Queensland CEO Anthony Hayes.

“Holidaymakers are opting for shorter breaks and this campaign gives Australians the perfect opportunity to book Queensland holidays from three nights with travel available until March 2012.”

Mr Hayes explained that although feedback from tourism operators across the state indicated confidence for state’s tourism industry was still high around Australia, there was still the challenge for the sector to “keep the momentum going”.

Despite natural disaster slowing the sector’s traffic earlier this year, the sunshine state welcomed more than 16 million visitors for the twelve months to March, a three percent increase on the year before.

Source: tourismqld.blogspot.com

Japan’s Increasing Marketing Efforts

The summer months are vital to Japan’s $16-billion foreign tourism industry, with the nation typically reporting some of its highest tourist numbers in July and August. The disaster took a huge toll on the nation’s spring tourism season, when large numbers of visitors arrive for Japan’s cherry blossom festivals.

Japan is stepping up efforts to draw foreign travelers, even recruiting Lady Gaga to spread the word that much of Japan is safe for visitors. As part of the effort to lure visitors before the summer travel season ends, the Japan National Tourism Organization recently posted online the radiation levels for down town Tokyo, which the tourism group says are lower than in tourist destinations such as New York, Singapore and Hong Kong.

The country’s tourism campaign comes as Japan reports progress in stabilizing the Fukushima Daiichi nuclear power plant. But Japan’s tourism industry faces several hurdles, including lingering fear among foreign travelers about potential radiation hazards and increasing fuel prices that keep airfares to Japan high.

Since the disaster, the government-run tourism organization has organized trips to Japan for international travel agents and travel writers, persuaded hotels in Tokyo to offer discounts to visitors and posted information online — including video posts by celebrities and radiation levels — to show that most of the country is safe to receive visitors.

“We’ve been focusing our efforts on showing people that Japan is safe for travel and that it’s business as usual in Tokyo and most other major cities,” said Evan Miller, a spokesman for the tourism organization. “It’s fine to come here.”

Among the group’s efforts are online videos of race car drivers, ice skaters and other celebrities, including Lady Gaga, urging travelers to visit the country. “I can’t say enough to people all over the world that the majority of Japan … is very safe,” the singer says in an online video shot before a benefit concert in Tokyo in June.

Source: latimes.com

France Unveils New Brand Logo and Website

On July 14 France celebrated its first annual international “Destination France Day.” On Bastille Day, the French government and Atout France hosted three international events to establish France’s national holiday as the day to celebrate France as a top travel destination. Parties were hosted in Paris, New York and Shanghai. All three events featured live performances, fashion shows, exhibitions, and French music.

On July 18, the winning logo was unveiled after receiving 29 percent of the votes from 82,877 Internet voters. This new logo will be the image of destination France. With this new symbol, French tourism will be embodied by a sole image that conveys the high quality and values of the destination. It will be visible in all collateral and on badges for all tourism-related personnel. The logo also will serve as the linchpin for a new communication strategy that unifies all the sectors of the French tourism industry.

According to Lefebvre, that strategy will introduce visitors to a France that has changed dramatically under French President Nicolas Sarcozy. The goal is to turn France into a more welcoming destination for visitors. The strategy also will focus less on iconic symbols, such as the Eiffel Tower and Cote D’Azur, and more on gastronomy, film and other cultural attractions.

The updated logo includes a representation of Marianne, the national emblem of France, as well as the phrase “Rendez-vous en France” to inspire and welcome the public to travel to France. The logo also includes the new French tourism website at www.rendezvousenfrance.com, which is being completely updated to make it more interactive for visitors.

Source: www.travelpulse.com, int.rendezvousenfrance.com/en

Trend Snapshot: The booking and buying habits of UK, German & French travellers

PhoCusWright presented at ITB Berlin in March 2011 key findings of its European Consumer Travel Report which provides an overview of the status of consumer travel in three individual markets – the UK, France and Germany.

Their research uncovers some surprises and important differences between these three markets. The European travel markets are extremely varied in nature.  The report highlights include the following trends:

– Traffic Forecast: A strong ratio of French consumers plan to travel more versus those who intend to travel less. The German outlook is also positive, though more moderate. UK travellers, in contrast, show a very slight growth trajectory for the upcoming year.

– Proliferation of the Internet in making travel plans: Among those with internet access, just 6% of French travellers, 9% of German travellers and 5% of UK travellers plan and book their trips completely offline.

– Search engines hold the key: When shopping for leisure travel options, the majority of French, German and UK travellers typically use general search engines, which rank first among website categories.

– Price is merely a hygiene factor: Even in today’s price-sensitive environment, the most commonly cited reason to visit a website is a prior positive experience. This was indicated by 38% of respondents in France, 50% in Germany and 51% in the UK.

– Hotels are not the main draw: Only 38% of French travellers surveyed enjoy staying in hotels, compared to 72% of German travellers and 82% of UK travellers.

– Smartphone adoption reaches critical mass: Over a third of travellers now carry mobile phones with web browsing capabilities; 38% do so in France, 37% in Germany and 47% in the UK.

– Mobile travel is small, but growing fast: Fewer than 10% of travellers have performed travel-related activities on their mobile phone in the past year. Yet intentions show that the mobile travel audience will be likely to double in the next 12 months.

Other findings show that the age group with the most leisure time in Europe were the 18 to 24 year-olds who are a very tech-savvy generation.

Source: www.newmediatrendwatch.com

Check out other tourism and travel trends at: aboutourism.wordpress.com/trendspotting-2011/