STB United States of America Market Insights STB Market Insights – United States of America...

United States of America STB

Market

Insights

2 STB Market Insights – United States of America

This publication ‘STB Market Insights’ serves as a reference to the trends of specific inbound

tourism markets to Singapore. All information in this publication is deemed to be correct at the

time of publication.

While every effort has been made to ensure the accuracy of the data in this report, the Singapore

Tourism Board (STB) shall not be liable for any loss or damage caused by or arising from the use

of the data in this publication. Data derived from surveys cited is subject to sampling error. Users

are advised to exercise discretion when drawing any conclusion or inferences, or taking any

action, based on the data.

STB makes no representation or warranty, express or implied, as to the accuracy or completeness

of any information contained in this document. Appropriate professional advice should be

obtained before relying on or acting on any of the information contained in this document, and

neither STB nor any of its officers, employees or agents shall be held liable for any loss or

damage, whether direct or indirect, as a result of any improper or incorrect use of the information

in this document.

Consumer Insights

Research Division

[email protected]

& STB Americas

©2016 Singapore Tourism Board.

All rights reserved. No part of this publication may be reproduced, distributed, stored in a retrieval system, or transmitted

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as the copyright owner.

Month of Publication: February 2016

mailto:[email protected]


Contents Executive Summary ................................................................................................................................... 4

About The Market ....................................................................................................................................... 5

The United States Traveller .................................................................................................................... 6

Media Consumption Habits ..................................................................................................................... 7

United States Visitors to Singapore ........................................................................................................... 10

The United States Leisure Traveller ........................................................................................................... 11

Needs of the United States Leisure Traveller ......................................................................................... 11

Considerations for Travel ....................................................................................................................... 12

Planning and Booking Trends ................................................................................................................ 12

Information Sources Before/During Travel ............................................................................................ 13

Advocacy ............................................................................................................................................... 14

United States Leisure Visitors in Singapore ............................................................................................... 14

Leisure Activities in Singapore ............................................................................................................... 15

Barriers to Visiting Singapore ................................................................................................................ 15

United States BTMICE Visitors in Singapore .............................................................................................. 16

The United States BTMICE Visitor ........................................................................................................ 16

Perception of Singapore as a Business and Leisure Destination ................................................................ 16

Information Sources ............................................................................................................................ 17

United States BTMICE Visitors’ Leisure Activities ................................................................................. 17

Key Findings and Implications ................................................................................................................... 19

Bibliography ..............................................................................................................................................22


Executive Summary In 2015, visitor arrivals (VA) from USA reached its highest since 2007 and was ranked 11th in terms of

VA to Singapore. VA registered an increased compound annual growth rate (CAGR) of 4% from

2010 to 2015. Driven by the burgeoning economy that is recovering from the 2008 financial crisis,

US outbound travel also grew to its highest mark in 2014 since 2010. This growth was partly driven

by US millennial travellers, aged between 18 and 34 years old.

Despite being the second largest global economy, only one-third of Americans have passports and

only one-fifth of Americans travel abroad as the USA’s strong domestic options provide them a

wide variety of experiences. The limited number of vacation days (an average of 10 days annually)

and strong work culture are also factors hindering long-haul travel.

Those who travelled internationally are cultural explorers who sought authentic experiences that

provide a clear sense of being far away from home and in a foreign environment and culture.

However, they still valued good hygiene and modern comforts for their safe and comfortable travel.

US visitors thus appreciated Singapore for its safe, modern and well-organised environment that is

comfortable and easy to navigate. On the other hand, Singapore’s modern city environment was

perceived as too similar to their home country, which made it less appealing than other

neighbouring destinations such as Thailand and Vietnam, which were deemed to offer more

authentic local cultures. Being value-conscious consumers, US visitors also viewed Singapore’s high

prices as a deterrent, especially relative to other cheaper Asian destinations.

In 2014, about 3 in 10 arrivals from the USA came for business purposes, which saw a drop of 19%

points compared to 2010 when 5 in 10 were business visitors. This is in contrast to leisure trends

where US visitor arrivals have increased over the years. US business visitors generally hold

Singapore in high regard as a business destination and appreciate its functional strengths and safe,

stable environment. During their free time, they enjoyed good meals and sought opportunities to

relax such as through a massage, cultural experiences that were not demanding, and by using their

hotel facilities.

Methodology of STB Primary Research Sources

Figures from this report were gathered from STB internal research and publicly available sources. The STB’s research sources are STB’s Overseas Visitors Survey

(OVS), the Leisure Segmentation Study (SEG), Business Traveller Study (BTS), Brand Health Tracking Study (BHTS), as well as various interviews and focus groups .

Overseas Visitors Survey (OVS) – conducted annually at exit points in Singapore, the OVS covers visitors from every nationality. The sample size is usually around

27,000 per year.

Business Traveller Study (BTS) – conducted in Singapore over 2011-2012, BTS covered more than 2,000 business travellers from our key business source markets to

understand their pre-trip and during-trip considerations, behaviour and touch points. Markets covered include Australia, China, Hong Kong, India, Indonesia, Korea,

the Philippines, Thailand, the UK, US and Vietnam.

Business and Leisure Traveller Study (FGD) – conducted in March 2015 in New York and Los Angeles to gain a deeper understanding of US leisure and business

travellers, including their travel motivations and habits, as well as attitudes and perceptions towards Singapore.

Affluent Leisure Traveller Study (FGD) – conducted in May 2014 in New York and Los Angeles to better understand the opinions and attitudes of influential and

affluent US travellers about travel destinations, specifically Singapore.


About The Market

Population (million) (4) 319 (2014)

State – Population (million)(4) California: 39 Texas: 27 Florida: 20 New York: 20 Illinois: 13

Total Outbound Travel (million) (1)

2010: 60.2 2011: 58.5 2012: 60.7 2013: 61.6 2014: 68.3

Top 5 Travel Destinations in 2014 (‘000) (2)

1. Mexico*: 6,930 2. Canada*: 4,053 3. Dominican Republic: 2,709 4. United Kingdom: 2,832 5. France: 2,124 6. Italy: 1,908

*Only figures by air travel were taken.

Outbound Travel to Asia (‘000) (1) 2010: 4,860 2011: 4,136 2012: 4,312 2013: 4,327 2014: 4,509

Top 5 Travel Destinations

in Asia in 2014 (‘000) (2)

1. P.R. China: 1,139 2. India: 1,077 3. Japan: 800 4. Philippines: 708 5. Hong Kong: 523

Type of Outbound Trips for U.S. Travel to Asia in 2014 (3)

Vacation/ Holiday: 51% Visit Friends/ Relatives (VFR): 27% Business/ Convention/ Conference/ Tradeshow: 14% Others: 8%

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Seasonality of Outbound Trips (1)


The United States (US) Traveller The USA is the world’s second largest economy, with China overtaking its top position in 2014.

Following the 2008 financial crisis, which led the country into recession in 2009 (5), the US economy

has seen an upward trend with Gross Domestic Product rising by a CAGR of 3.6% from US$15

trillion in 2010 to US$17.9 trillion in 2015.

The US outbound market is heavily influenced by the country’s economic performance, which in

turn affects the level of disposable income and affordability of overseas travel. The US dollar rose

substantially against most global currencies, particularly against the Euro, which has made overseas

travel even more cost-effective. Thus, outbound travel grew at a CAGR of 3% from 60.2 billion

visitor arrivals in 2010 to 68.3 billion in 2014.

While the US is one of the world’s wealthiest countries, only one-fifth of Americans travel abroad

due to its strong domestic travel options (5). Americans saw little need to travel overseas as the

country’s cultural and geographical diversity offers a wide variety of ethnic enclaves, cultures and

experiences, from tropical beaches in Florida, to skiing in Colorado and desert encounters in

Arizona.

Another reason why Americans do not have an overseas travel culture is work, which typically takes

top priority, leading to their tendency to not utilise all the vacation days they are entitled to. In

2014, 42% of working Americans did not take a single vacation day (7) and only 13% surveyed

travelled abroad for leisure in 2014 (8).

Despite that, US outbound tourism has been growing over the years with travellers staying away

longer and spending more on their trips (14). This growth was partly driven by US millennials (aged

between 18 and 34 years old) who now make up about a quarter of the US population and who tend

to travel more than their older counterparts (19). In 2013, 42% of millennials travelled internationally

compared to 28% of older travellers who went abroad. Millennials were also twice as likely to take

longer trips, constituting 14 nights or more.

In terms of destinations, Mexico and Canada remained the traditional favourites among Americans

due to the countries’ close proximity to the USA (5). Mexico was a popular choice for Hispanic

Americans as nearly half of the US’s Hispanic population resides in California and Texas, which lie

close to Mexico. Typically, these Hispanic Americans visited Mexico to see friends and relatives.

The Dominican Republic was the third most travelled destination and the most visited Caribbean

island by Americans. The Dominican Republic is particularly popular among young and value-

conscious US travellers who enjoyed the all-inclusive resorts and nightlife in resorts such as Punta

Cana (5). European destinations such as France and Italy remained popular amongst US travellers

who enjoyed visiting their major cities (e.g. Paris, Rome and Venice). The decline in the Euro against

the US dollar also made travelling to European destinations cheaper.


Other popular Asian destinations include Japan, the Philippines and Hong Kong (5). Singapore was in

10th position following Asian destinations such as South Korea, Taiwan, Thailand and Vietnam. The

main purpose for US travellers to Asia was visiting friends and relatives, followed by vacation and

business (9).

While the US outbound traveller enjoys travel all year round, there are seasonal peaks during the

spring break between April and May, leading to a peak in the summertime from June to July, and

around the Christmas holidays in December. December typically sees the highest number of

international departures as Americans make the most out of the Christmas break to visit friends or

take holidays to winter-sun destinations (5). The seasonal travel peaks are more applicable to

families that need to travel during the school vacation breaks.

Media Consumption Habits

US smartphone penetration has been growing at approximately 10% year-on-year since 2009 and

reached 75% of the mobile user base in 2014 (11). While most of the growth in digital media

consumption over 2011 to 2014 has occurred on smartphones and tablets, which increased by 394%

and 1,721% respectively, the time spent on desktop computers remained high and grew by 37% in

the same period.

The majority of US households own multiple digital devices including desktops, smartphones and

tablets, and spent an average of 60 hours a week consuming content across multiple screens (10).

The number of such multi-platform internet users has grown substantially, by 68% from 2013 to

2014, with more than three-quarters of digital consumers using both desktop and mobile platforms

to access the internet in 2014. Mobile-only internet usage became more prevalent, driven largely by

millenials who no longer use desktop computers to go online (11).

Similarly, US travel to Asia has been on the increase

since 2011, accounting for about 7% of all outbound

trips (5). China and India were the most popular Asian

destinations due to their unique culture and historical

buildings. Airline connectivity between China and the

USA was also enhanced, with Air China adding its first

regular direct flight between Beijing and Honolulu, and

American Airlines commencing non-stop flights

between Dallas and Shanghai in 2014.


Social media usage among US consumers continued to grow with almost two-thirds of social media

users accessing social media sites at least once a day via their computers (10). In 2014, Facebook led

all social media networks with an 81% reach of the total digital population and 230 billion minutes of

user engagement (11). Popular photo-sharing site Instagram took second place with 12 billion

minutes in terms of time spent, followed by Twitter and Pinterest. With its narrower user base and

lower overall reach, Snapchat took 5th position in terms of time spent. Twitter, Linkedin and

Google+ remained mainstays of the market with high penetration, while Pinterest and Tumblr have

considerably improved their respective positions in the past year.

Snapchat, Vine, Tumblr and Instagram each had audiences that were predominantly millennials

aged between 18 and 34 years old, as visually oriented social networks continued to draw young

audiences (11). Snapchat, for example, had 71% of its audience composed of 18- to 34-year-olds and

45% made up of 18- to 24-year-olds.

Mobile apps are becoming the primary access point for many digital services (10). Smartphone

owners spent 86% of their time using apps compared to 14% on mobile websites (12). Meanwhile,

almost half of smartphone owners visited social media networks through the apps every day. The

unique audience for social media smartphone apps increased by 37% over 2012 to 2013 (10).

While digital media consumption was high, broadcast media (i.e. television) remained important in

the USA. US consumers still spent the most time engaging in live content via traditional television,

even though time spent on Live TV declined over 2012 to 2013 (12) . However, television consumption

still increased over the same period due to the significant rise in time spent watching timeshifted

Among US internet users, Google sites ranked the top

overall digital media property with an audience of 238

million unique visitors representing 94% of all internet

users (11). Yahoo sites ranked second, with 216 million

unique visitors, while Facebook jumped a spot to third

position, reaching the 200-million visitor threshold.


television which refers to the recording of TV content on a storage device (such as digital video

recorders) for viewing at a later time or video-on-demand. While watching television, 84% of

smartphone and tablet users used their devices as second screens, illustrating the growth of multi-

platform usage trends.

46% of millennials’ viewing is time shifted and not live, especially now that digital video

subscriptions such as Netflix and Hulu are increasingly popular among them (21). In 2014, six out of 10

millennials surveyed indicated that they did not watch any live TV from traditional TV sets within

the past 30 days, which demonstrates the potential for linear TV viewing to erode over time among

the younger audience.


477 492 485 499

1,375 1,270 1,315

2015 full year data

unavailable at time of print

68 66

47

18,371 20,874

14,277

2015 full year data

unavailable at time of print

7%

42%

20%

7%

24%

The US Visitors to Singapore

Visitor Arrivals (‘000)*

2012

2013

Tourism Receipts ($mil/%)**

Purpose of Visits (%)

Others***

Stopover

VFR

BT/MICE

Holiday

Others

Transport

F&B

Accom.

Shopping

Tourism Receipts – per

capita ($)

Weekly Flight Statistics

(Flight Freq. /

Seat Capacity)

$625

38 39 47

36 32 27 9 9 9

12 13 10 5 6 7

10%

42% 15%

5%

23%

$656

Flight Freq

Seat Capacity

2014

10%

40%

18%

6%

25%

$638

Top 3 Cities of Origin

*All visitors are classified by country of residence unless otherwise stated. Visitor arrivals include all visitors arriving by air and sea and non-Malaysian citizens arriving by land. **Sightseeing, entertainment and gaming expenditure has been excluded from tourism receipts in the country breakdown due to commercial sensitivity of information. Other TR Components include expenditure on airfares, port taxes, local transportation, business, medical, education and transit visitors ***Others include those here for education, healthcare, work-related purposes, accompanying passengers and personal events.

New York

Houston

Los Angeles

1

2

3

New York

Houston

Los Angeles

New York

Houston

San Francisco

20154

2015 full year

data

unavailable at

time of print

2015 full year

data

unavailable at

time of print

New York

Houston

San Francisco


US Visitors to Singapore

In 2015, visitor arrivals (VA) from USA to Singapore reached its highest since 2007 and was ranked

11th in terms of VA to Singapore (15). VA has increased by 3% from 2014 to 2015 and grew at a CAGR

of 4% from 2010 to 2014, a rate higher than the growth of US overseas outbound travel, which

stood at 3% over the same period (1).

Despite the growth in VA from the USA to Singapore, tourism receipt (TR) growth remained flat

from 2010 to 2014 as US visitors’ per capita expenditure (PCE) declined by a 4% CAGR from 2010

(S$1,551) to 2014 (S$1,315) (15). This decline in PCE was observed across accommodation, food and

beverages, and shopping. Accommodation, however, recorded the smallest decline of 4% CAGR

from 2010 to 2014. This was in contrast to expenditure on shopping and food which dropped by a

7% and 6% CAGR respectively. In 2014, US visitors spent an average of S$534 on accommodation,

which was much higher than the global average of S$302 even though their average length of stay

(ALOS) was slightly higher at 4.0 days compared to the global average of 3.7 days.

The decline of US visitors’ PCE was mainly attributed to the drop in BTMICE PCE which declined at a

CAGR of 4% from 2010 (S$2,226) to 2014 (S$1,917) (15). Leisure PCE, on the other hand, increased at

a CAGR of 2% from S$913 in 2010 to S$973 in 2014.

In terms of visitor arrivals, the proportion of US visitors to Singapore for BTMICE purposes declined

by 19% points from 46% in 2010 to 27% in 2014. This was in line with US BTMICE outbound

departures that also dropped at a CAGR of 16% from 6.2 million in 2010 to 5.2 million 2014 (13). This

could be the remnant effects of the 2008/2009 financial crisis, when many companies focused on

domestic rather than international businesses, impacting the volume of international BTMICE travel

from the US.

The recovery of the US economy is evident, however, as the percentage of US outbound leisure

travellers has increased from 39% in 2010 to 51% in 2014 (2). This increase was also reflected in the

percentage of holidaying visitors to Singapore, which increased by 12% from 35% in 2010 to 47% in

2014 (15). Besides holidaying visitors, there has also been an increase of US millennial visitor arrivals

to Singapore, with the proportion increasing by 10% points in 2014 compared to 2010 (22).

The US Leisure Traveller

Needs of the US Leisure Traveller

Overseas travel was not a top-of-mind activity for most US consumers as most opt for domestic

travel, which allows them to experience varied offerings within closer proximity.

Those who travelled internationally chose the novelty of destinations that are culturally distinctive

from their home country (16). This suggests that US travellers are cultural explorers who look for a

clear sense that they are far away from home and in a foreign environment and culture at their

destinations. They also want to be intellectually stimulated through these opportunities for

learning.


Considerations for Travel

While they are cultural explorers, US travellers prefer to travel safely and comfortably (16). Many

Americans tend to be security conscious and choose to avoid risky and troubled areas (5). As such,

hygiene and modern comforts were important considerations when they searched for a destination.

Most US travellers also focus on good quality and value (14). Being value-conscious, travel

promotions played an important role in the selection of a destination, especially if the traveller

perceived it to be a high-value offer (16).

The trip’s timing was also a key consideration for many US travellers. Those who travelled with their

children took into account school schedules (16), while working adults considered the demands of

their jobs before taking vacation leave for travel. During winter, US travellers would want to escape

the cold weather to warmer climates.

Planning and Booking Trends

US leisure travellers enjoyed travel planning and took time and pleasure in the process of exploring

various opportunities until they decided on one that seemed the most interesting and of the best

overall value (16). The planning process tended to range from a week to a month and typically

consisted of the following 6 steps if it was an Asian vacation:

1. Start with the intention of taking an Asian vacation 2. Set a price or budget 3. Identify a geographical location 4. Ask friends and family members about their personal experiences and for

recommendations 5. Explore opportunities online 6. Make a decision that typically involves one or two locations on a single trip to Asia

In line with their value-conscious mindset, most US travellers preferred to separate their airline

arrangements from accommodations to make a booking that offered the best value (16). However, if

they decided on a destination with less developed infrastructure and poorer hygiene, they tended

to select a package tour because they prized safety and comfort. Higher-end travellers also tend to

use traditional travel agencies who will plan and organise the entire trip on their behalf.

US millennial travellers, however, tended to make more last-minute bookings than their older

counterparts. In 2013, 23% of US millennial travellers booked their last trip less than one week

As US travellers look for dramatically different cultures and

environments in their chosen destinations, they often seek out

authentic local experiences that cannot be found in their home

country. They largely associate authenticity with simpler, less

technologically advanced lifestyles and find indications of this in a

destination’s food, architecture, the appearance of the local

people and their culture (16).


before departure as compared to 12% of older travellers who did the same (19). They were also more

likely to book trips via online travel agents (OTAs) such as Expedia and Priceline, and travel

aggregators such as Kayak and Travelzoo.

US millennial travellers are also more trusting of non-traditional forms of booking accommodation,

transportation and experiences (20). In 2014, 60% of millennial travellers indicated that they trusted

sharing economy services such as Airbnb, Home Away, Uber, Lyft, GetAround and Feastly

compared to only 37% of all other travellers.

There are also subgroups among US millennial travellers. Younger millennials (18 to 24 years old)

had less loyalty towards airline companies and hoteliers (19). In 2014, only 22% of 18- to 24-year-olds

belonged to a hotel loyalty programme compared to 41% when it came to the older millennials (25

to 34 years old). About 21% of the older millennials belonged to at least one OTA loyalty

programme, illustrating the influence of OTAs in this generation of travellers.

Information Sources Before and During Travel

Leisure travel planning was influenced by a range of sources and heavily driven by background

perceptions of the destination. These beliefs about a particular destination tended to arise from

word-of-mouth, often through friends, colleagues, and family members who had travelled to the

country (16).

US travellers also relied on a range of analog and digital media such as airline websites and

brochures, travel websites, and country tourism websites (16). Consumer reviews from third-party

information websites such as TripAdvisor, Expedia and Travelocity were also important information

sources that provided the opportunity to see photographs and videos posted by vacationers to the

destination.

US travellers also relied on traditional travel agents for information, especially when planning to

travel to a destination with relatively poorer infrastructure (16).


Advocacy

US travellers placed high importance on good quality photographs. In a focus group research,

respondents mentioned that photographs play a key role in enticing them to visit a destination (16).

Photographs and videos are also important tools that US travellers share on social media, as

illustrated by the growth of visually oriented networks such as Snapchat, Vine, Tumblr and

Instagram among US consumers (11).

After the trip, 42% of US travellers surveyed said they would share their travel photographs on

Facebook, followed by Instagram (7%), Flickr (5%) and Twitter (4%) (6). About 30% still preferred to

share their travel memories through printed photographs with their friends and family. These

respondents tend to be older and higher income earners.

US Leisure Visitors in Singapore

US visitors perceived Singapore as a modern, clean and well-organised country that is comfortable

and easy to navigate. With its English-speaking population and strong hygiene factors, US visitors

felt that Singapore was more “Westernised” compared to other Asian destinations and a good

starting point for preparing themselves for an Asian vacation (16). This was evident as 86% of leisure

US visitors to Singapore in 2014 were multi-destination visitors (15).

US visitors typically stayed in Singapore for about 3 to 4 days (15). In 2014, 55% of them were first-

time visitors and 45% were repeat visitors. Out of the repeat visitors, 42% visited Singapore within

the past year, followed by 32% who visited Singapore more than 3 years ago. Leisure visitor arrivals

in Singapore were also the highest in 2014 since 2010, growing at a CAGR of 12%.

Leisure Activities in Singapore

In line with their need to discover authentic

experiences when they travel, exploring ethnic

enclaves such as Chinatown and Little India was

the most popular activity among US leisure

visitors to Singapore (15). In keeping with the trend

of the majority of US travellers enjoying

sightseeing (82%) and shopping (77%) (2), Gardens

by the Bay, Sky Park and The Shoppes @ Marina

Bay Sands also appealed to US visitors in

Singapore.


Across all spend components, shopping expenditure among US leisure visitors was the only

component that saw a drop across 2010 to 2014. It declined at a CAGR of 10% over 2010 to 2014,

which could be contrasted with accommodation and food expenditure that increased at a CAGR of

10% and 8% respectively over the same period (15).

This preference was reflected in their shopping behaviour. Chinatown and Little India were the top

places at which they shopped. Orchard Road, Changi Airport and the Marina Bay area, where more

luxury and international brands can be found, came after these cultural precincts.

Dining is a passion for US leisure travellers when overseas. Their food expenditure increased by a

CAGR of 8% over 2010 to 2014 (15). While fine dining was among the top 5 activities for US outbound

travellers (2), they spent 77% of their F&B budget on casual dining instead, followed by 12% at

hawker centres and only 10% on fine dining in 2014 (15) . US visitors also value comfort during their

travels and they were more willing to spend on accommodation as more of them opted for higher-

end and mid-tier hotels over economy hotels and hostels.

Barriers to Visiting Singapore

While US visitors valued Singapore for its modern environment and strong hygiene factors, they

perceived Singapore as a strict and rigid destination. One focus group participant said, “They have

lots of rules and they are very serious about them. I know you can’t chew gum there. I guess that’s

why it is so clean and safe, but they’re a little over the top” (16).

Additionally, US travellers felt that Singapore appeared to be “Westernised” and lacked apparent

characteristics that might define an authentic Asian experience (16). They perceived Singapore to be

similar to their home country and whose modernity lacked authenticity. They preferred other Asian

destinations such as Shanghai, Hong Kong and Tokyo, which they saw as vibrant cities that weave

culture, history and art with architecture and the people (17).

US travellers perceived Singapore to be expensive, especially compared to its Asian neighbours

within the region. Thus, US travellers tended to use Singapore as one of their transit points to other

Asian destinations, which they felt offered better value-for-money and a more authentic Asian

experience.

While the idea of being able to shop for high-end

products was appealing to US travellers, it was not a

reason to travel to Singapore, particularly for

residents of New York and Los Angeles who felt that

there was plenty of opportunity for them to do this

at home (16). While Singapore was seen as a place

with many premium international brands, US

travellers preferred authentic, local items that are

not available back home.


US BTMICE Visitors in Singapore

The US BTMICE Visitor

In 2014, 7 in 10 US BTMICE visitors came to Singapore as part of a multi-destination trip. The

majority (75%) were repeat visitors, out of which almost half had visited Singapore in the past year.

They typically stayed for an average of 4 to 5 days in Singapore (15).

While US leisure visitor arrivals to Singapore increased throughout 2010 to 2014, BTMICE visitor

arrivals declined at a CAGR of 10% in the same period (15). This was in line with overall trends in the

US where outbound BTMICE travellers declined at a CAGR of 4% over 2010 to 2014 (13). BTMICE US

visitors’ PCE also dropped at a CAGR of 4% from $2,226 in 2010 to $1,917 in 2014. This was

contributed mainly by the drop in food expenditure, which declined at a CAGR of 9% over 2010 to

2014 (15).

Perception of Singapore as a Business and Leisure Destination

US BTMICE travellers typically seek ease and convenience when they travel, and value the

functional strengths of a destination, such as a comfortable and well-run hotel with fast WiFi and

knowledgeable concierges (16).

BTMICE visitors appreciated Singapore for its safe and stable environment, its good infrastructure

that is conducive to doing business, and its systematic society with laws, regulations and efficiency.

With regards to leisure experiences, most BTMICE visitors valued Singapore for its friendly and

efficient service and ease of getting around in order to enjoy the destination. They also felt that

Singapore is a modern and cosmopolitan destination that is perfect for mixing business and leisure (18).

28% of BTMICE visitors indicated that they were “likely” or “very likely” to visit Singapore for leisure

within the next two years (18). Respondents indicated that the main reason was that they regularly

visited Singapore and have always wanted to visit Singapore for leisure in the first place. However,

19% of US BTMICE visitors indicated that they were “unlikely” to revisit Singapore, a significantly

higher percentage than the global average of 11%. The main reason cited was that Singapore was

In 2014, 61% of BTMICE expenditure was contributed by

accommodation, followed by 20% on food and 11% on

shopping, 6% on local transport and the rest on other

miscellaneous expenditure (15).


too far away from their home country (18). For US BTMICE visitors, local cultural experiences are

vital to enticing them to revisit or extend their business trips (16).

BTMICE travellers rarely mentioned Singapore as their favourite Asian destination because they

perceived Singapore to be a Westernised modern city that lacks authenticity (16). Other destinations

such as Japan, Vietnam and Thailand were named instead for their distinctive and interesting

cultures, food, and unique attractions which they viewed as dramatically different from anything

they could experience at home. Singapore was also perceived as a high cost destination, especially

relative to its neighbours. Their decision to extend their business trips in Singapore was thus more

about convenience and taking advantage of the fact that they were already in the country, rather

than being fuelled by a strong desire to visit it.

Information Sources

When planning for their trips, US BTMICE visitors generally did very little pre-trip research. While

their employers were the main decision makers for accommodation options, 37% of US BTMICE

visitors indicated that they had control over their flight options and 57% over their itineraries, with

both percentages higher than the global average of 28% and 43% respectively (18).

75% of US BTMICE visitors did not do any research when they were in Singapore. Those who did

relied mainly on friends, family members or colleagues residing at the destination (18) and hotel

concierges (16) as their main sources of information.

US BTMICE Visitors’ Leisure Activities

After business hours, US BTMICE visitors sought opportunities for top quality dining and

entertainment (16). They also enjoyed relaxing through massages, cultural experiences that were not

too demanding, and unwinding in a comfortable hotel room, with 20% of them enjoying hotel

facilities such as the gym and swimming pool after work hours, a significantly higher percentage

than the global average of 11% (18).

While the majority of US outbound business travellers went sightseeing (69%) and shopping (65%)

while they were overseas (13), the percentages of US BTMICE visitors who shopped (29%) and went

sightseeing (15%) in Singapore were significantly lower than the global average of 54% and 23%

respectively. While they perceive Singapore as a shopping mecca, the island is largely known for

expensive shopping and well-known international brands. As these brands are readily available back

in the US, there is little incentive for them to shop in Singapore, especially if they are unable to find

unique local items to take home. (16). US BTMICE visitors also tend to perceive Singapore as being

similar to other major world cities. Despite this, however, attractions such as Gardens by the Bay,

and experiences such as the Formula 1® night race through the city streets appealed to BTMICE

visitors as they showcase Singapore as a pioneering and stimulating city, which is something new

and different.

Planning after-hours leisure activities largely happened once they were at the location of the

business trip (16). Planning of trip extensions, on the other hand, mostly occurred before the trip.


Regardless of the planning channel, US corporate travel policies generally did not limit BTMICE

travellers’ extension of business trips as long as they fell within the allotted number of vacation

days.


Findings and Implications As the US economy recovers and outbound travel grows, long-haul travel to Asia remains attractive

to US travellers as it offers them different experiences from what is available back home. As such, it

is key for Singapore to enhance its proposition to remain the top priority within the consideration

set of US travellers, especially in the midst of other Asian destinations. Below are the key insights

and opportunities we have identified for the tourism sector:

Finding #1: Showcase Singapore’s authenticity through differentiated local

experiences

US travellers valued Singapore for its hygiene strengths, safety and modernity, but they felt that

other Asian destinations could give them a more authentic Asian experience. It is thus important to

leverage Singapore’s strengths and effectively highlight its unique local aspects to differentiate

Singapore from other regional destinations.

Tips for the Industry:

In marketing communications, feature hidden gems with strong local elements such as people, food and culture F&B: As US travellers are food-lovers, highlighting Singapore’s authentic local

cuisines is key. However, it is also important to dial down the variety and multiculturalism aspect which dilutes the appeal because multi-cultural dining experiences are readily available in the US. As such, marketing campaigns or itineraries could focus on featuring Singapore-specific cuisine such as chilli crabs or lesser-known hidden gems (e.g. old eateries) or street food stalls that locals frequent.

Shopping: Instead of showcasing luxury shopping in Singapore, which is available in the US, focus on local items or home-grown brands with designs that are special and unique to Singapore.

Local experiences that are strong representations of Singapore’s identity: Itineraries could feature aspects of local living such as the dwelling culture of HDB estates or bird-singing corners in Tiong Bahru. Hidden gems such as Haji Lane or Gillman Barracks, as well as rural and quintessentially local experiences that are unexpected of Singapore (e.g. traditional kelongs and Pulau Ubin), can also be highlighted.

Position Singapore as a complement to neighbouring destinations and as a ‘break’ from the rustic Asian experience through the comfort, safety and local authentic experiences unique to Singapore.


Finding #2 Leverage the growing potential of US millennial travellers

US millennial travellers make up a sizeable proportion of the US population. They are travelling

more and have different characteristics and media consumption and travel habits than their older

counterparts. It is therefore important to engage millennial travellers at all touch-points of their

travel in a more targeted manner.


Build loyalty among younger millennials: As those aged between 18 and 24 years old have less loyalty towards specific hotel brands or airline companies, it is vital to provide personalised services and targeted communications to convert them into long-term customers. For example, hoteliers can use technology to collect guest preferences and data to build rich guest profiles and deliver customised experiences.

Push marketing messages through the digital sphere such as via OTAs (e.g. Priceline and Expedia) and non-traditional online travel services (e.g. Airbnb).

Leverage mobile technology to enhance their travel experience: Millennial travellers access travel information and make travel arrangements through their mobile devices. Thus, it is crucial to ensure that bookings, reservations and inquiries can be made seamlessly through their mobile devices, especially BTMICE millennial travellers who prize ease and convenience.

Build advocacy among millennial travellers who are active users of social networks: Focus on top quality photographs and videos in marketing campaigns that

capture authentic local experiences. Ensure that the content or collateral can be shared online easily. Encourage more sharing during and after the trip by providing WiFi access at

locations that will allow them to share their experiences with families and friends on a real-time basis. Weave social media creatively into marketing messages with attention-grabbing ‘hashtags’ or links to travel forums where they can post online reviews.

Ensure access to post-arrival information: As US millennial visitors tend to plan their itineraries and make their bookings at the last minute, it is crucial to ensure critical post-arrival touch points are updated on experiences that would appeal to them.


Finding #3 Showcase Singapore as a dynamic and pioneering city to appeal to

BTMICE travellers

Another segment to focus on would be business travellers with high spending power, strong

decision-making power in itineraries, and flexible corporate policies on trip extensions. When

marketing leisure experiences to them, it is important to consider the timing and touch-points for

maximum conversion potential.

While BTMICE travellers tend to see Singapore as a major city that is similar to others in the world

and what they have back home, they find Singapore’s dynamism and pioneering new practices

intriguing. Thus, on top of featuring local and differentiated offerings, it is vital to exhibit Singapore

as a forward-looking city that pushes boundaries.


Showcase Singapore as a stimulating and dynamic city in marketing materials by featuring pioneering infrastructures and experiences. For example, itineraries and marketing communications can include a story-telling component to highlight the sustainable features and grand scale of Gardens by the Bay, and Formula 1® as the first street night race in the region. Images of dramatic architecture such as the Infinity Pool at Marina Bay Sands can also be featured.

Target BTMICE visitors during the post-trip planning phase by promoting dining,

shopping and sight-seeing experiences through critical touch points such as hotel concierges. Push marketing messages during their pre-trip planning phase to increase the likelihood of trip extension.


Bibliography

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