TOURISM INDUSTRY CONFERENCE EUROPE: Challenges and ...

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TOURISM INDUSTRY CONFERENCE

EUROPE: Challenges and Opportunities

25 APRIL 2016

STB FOLKS

Jonathan Loh Area Director

Northern & Western Europe (based in London)


Blaise Borezee General Manager, Interface Tourism

French Marketing Rep (based in Paris)

Brigitte Fleischauer Area Director

Central & Southern Europe (based in Frankfurt)

Gloria Pecchini Co-owner, Go Up

Italian Marketing Rep (based in Milan)

Beverly AuYong Area Director

Eastern Europe (based in Moscow)

Chang Chee Pey Executive Director, Europe & SAMEA

(based in London)

WHO IS TAKING OVER

Jason Chan Area Director

Northern & Western Europe


Starting 25 July 2016

Tan Yen Nee

Starting 1 June 2016 Regional Director, Europe

GUEST PANELLISTS

Stuart Adamson Managing Director, Media & Partnerships

Thomas Cook

Subhas Menon Regional Vice President, Europe

Singapore Airlines


CONTEXT

CHALLENGES

1

2

OPPORTUNITIES

WORKPLANS

3

4

AGENDA


OVERVIEW OF KEY MARKETS Context

UK GERMANY FRANCE RUSSIA

Visitor Arrivals

FY 2015 YOY Growth

473,800 + 4.8%

287,700 + 8.8%

157,400 + 0.4%

63,800 - 29.6%

Ave Length of Stay 3.8 days

2.9 days

3.7 days 4.1 days

Leisure vs Business* 75:15 80:13 70:15 68:7

Ave Age 44 41 39 36

Top 2 Twinning Countries

Malaysia Australia

Indonesia Malaysia

Indonesia Thailand

Indonesia Thailand

Peak Travel Period Mar Feb

Dec Mar

Aug Jul

Jan Dec

Source: STB International Visitor Arrivals Statistics – Embarkation/Disembarkation Cards as of 29 Feb, 2016 * Remaining Purpose of Visit drivers include Healthcare and Education. Source: Overseas Visitor Survey 2014.


WHY EUROPE IS IMPORTANT FOR SINGAPORE

1 UN World Tourism Organisation Tourism Highlights (2015 Edition)

Diversify Visitor Source Markets beyond Asia

to counter increasing global volatility

Our Aviation Hub Ambition Changi Airport’s ambition to handle up to 135 mil passengers per year with the

completion of Terminal 5

World’s Largest Market for Outbound Tourism

Europe saw over 580million outbound travellers in 20141

Diversify Visitor Source Markets

UK was one of the top TR growth markets in 2015 (+4%) amidst the

downturn in Asia. Value to diversify our source markets beyond Asia.

Aviation Hub Ambition The EC’s Aviation Strategy

(7 Dec 2015) aims to boost Europe’s position as a global aviation hub. A

more comprehensive aviation agreement btw. EU & ASEAN is

meant to enhance direct flights to ASEAN including Singapore

Context


Middle East

Hong Kong 163 weekly flights

(4 h)

Japan • Achieved 19.47m visitors in 2015

(+47.1%). Aiming for 60mil by 2030 • Hotel stays by foreign visitors surged

by 48.1% in 2015 • Forward Keys: +33% forward booking

for Japan amongst Germans

Dubai Emirates flies 10x daily to London (compared to 4x daily for SQ); 3x daily to Birmingham and Manchester; 2x to Glasgow and 1x from Newcastle

Northeast Asia

Australia

Europe

USA Caribbean

SHIFTING AVIATION AND TOURISM FLOWS Context

Australia is 3rd largest A380 destination for Emirates, with 7 out of 11 daily flights on A380.


CONSOLIDATION IN THE EUROPEAN TRAVEL TRADE

Dnata Travel is reinforcing its distribution in UK through the acquisition of Stella Travel Services, Gold Medal, Travel Republic, Imagine Cruising Chinese conglomerate Fosun bought 5% of Thomas Cook in 2015. Greater collaboration with other Fosun’s owned entities such as Club Med “Vertical Integration is driving differentiation….We need hotels and we need cruises…and think

about our business from a content plus market access perspective” - Fritz Joussen, TUI Chief Executive, Travel Weekly interview

Merger of Germany’s TUI AG and Britian’s TUI Travel to form the world largest tourism company, TUI Group

Consolidations of Top French Tour Operators / Travel Agencies (by market share) e.g. Thomas Cook’s acquisition of Jet Tours, Merger of Selectour and Afat Voyages

Creating Differentiation through Scale and Service

Context


CHALLENGES

OVERCOMING MEDIA BIAS

SEEING SINGAPORE BEYOND A STOPOVER

UPDATING CONSUMERS’ PERCEPTION OF

SINGAPORE

OVERCOMING MEDIA BIAS


Challenges

UPDATING CONSUMERS’ PERCEPTION OF SINGAPORE


UK Travellers’ Top 5 Leisure Activities 1 in Singapore are traditional heritage and historical attractions:

1 STB Market Insights – United Kingdom (April 2015)

Survey Conducted by STB’s French Market Rep

Chinatown Little India Singapore River Raffles Hotel Botanic Gardens

Challenges

SEEING SINGAPORE BEYOND A STOPOVER


“Ideal Stopover en route to Australia or New Zealand” Singapore is typically

the first or last destination

in a Southeast Asian cruise itinerary

The Daily Telegraph 14 Dec 2015

Challenges


OPPORTUNITIES IN EUROPE Opportunities

High leave entitlement; always planning their next holiday

Europeans love the sun and warmth, especially during winter months

Large potential in the European Cruise market Business travellers’ high propensity

to spend, at least twice that of leisure travellers


OPPORTUNITIES IN FOCUS MARKETS

• UK Pension Reforms allows for pensions to be withdrawn at 55 with no limit on amount and no obligation to buy annuity. Every year, 320,000 people will newly qualify for this right. Est. £3b-£5b spent per year on luxuries such as holidays, cars and kitchen remodeling.

• Shift in Travel Interests away from Africa and Turkey towards USA, Cuba, Caribbean as well as eastwards to Japan and China.

• Longer Haul City Break Gaining Popularity. Dubai voted #1. Singapore #5.

• Increase in Airlift. SQ’s new flight to Dusseldorf will enable Singapore to target different source cities beyond Frankfurt and Munich.

• Cruise Potential. Germany is the top cruise market in Europe with 1.8mil passengers in 2015, followed by the UK. Germany is likely to exceed 2mil passengers for the first time in 2016.

• Importance of Safety. Germans attach special importance to safety, more so in the wake of recent terrorism attacks.

• Potential for Family Travel. School term runs from September to July with 4 breaks over the school year.

• High Paid Leave Entitlement. 5 weeks of statutory paid vacation. Moreover the 35-hour week law means those who exceed this limit gain additional holidays which can amount up to 50 days off in total.

Opportunities

Who Leisure Travelers MICE & BT

STB Europe Priorities

How

A trip to Southeast Asia and

Oceania begins with Singapore

Tap into the economic recovery of Europe and

strength of her MICE sector

3 Core (UK, Germany and France)

3 High Yield Focus Markets (Russia, Switzerland, Italy)

3 Emerging Markets (Netherlands, Denmark, Sweden)

Where

Maximise post-arrival spend of Bleisure

http://www.imex-frankfurt.com/index.php

ONLINE TRAVEL OPERATORS

EXAMPLE OF PARTNERS WE HAVE WORKED WITH

LEISURE – 2015 KEY INITIATIVES

TOUR OPERATORS/ TRAVEL AGENTS


CRUISE AIRLINES

Engage leisure trade partners across the value chain to raise destination awareness of Singapore and drive bookings

Work Done in 2015


SNAPSHOT OF COLLATERALS WITH TRAVEL TRADE PARTNERS

Work Done in 2015

20

Get Into Singapore with Thomas Cook


#GetIntoSingapore Campaign

Work Done in 2015

TRAVEL TRADE PARTNERS – 360 DEGREE APPROACH

CO-CREATE CONTENT LEVERAGE

THEIR OWNED CHANNELS AMPLIFY THE PROMOTIONS WITH MAJOR PUBLICATIONS

LEVERAGE INFLUENCERS/ UGC CONSTANT ENGAGEMENT

Virtual Reality SingaporeTour

Copywriter

Blogger

Training Thomas Cook’s Travel Agents

SINGAPORE AIRLINES – FIRST STOP SINGAPORE


• A content hub inspiring travel to Singapore presenting destination editorial to raise awareness of Singapore and conversion of the Singapore Stopover Holiday

• Traffic Drivers: Banner ads in media publications (Financial Times, The Telegraph, High 50, The Nudge, Great British Chefs, Quintessentially), content partnerships with The Guardian and Secret Escapes

Work Done in 2015

Position Singapore as the first stop in Southeast Asia, Australia and New Zealand

CRUISE


CRUISE LINES (B2B)

CRUISE LINES (B2C)

INDUSTRY ASSN (B2B)

Grow Cruise Interest in Singapore & Southeast Asia Increase Length of Stay to Capitalise on Pre and Post Cruise Opportunities

• 3-year partnership with CLIA Conference

• Provide webinars and training on Singapore to CLIA members including suggested itineraries to increase length of stay

• Conduct joint fams (with Princess for media fam, Royal Carribean for trade fam) on Singapore and cruise line

• Run contests and editorials for agents on B2B media (Travel Weekly) with Holland America Line

• Co-market Singapore with major publications like Conde Nast Traveller, The Telegraph including messaging to extend one’s length of stay (e.g. with Holland American Line/Seabourn)

• Run contests with Celebrity Cruises Captain Club members to win a cruise from Singapore

Work Done in 2015

LEVERAGE PR, DIGITAL AND SOCIAL MEDIA


SPOTLIGHT ON SINGAPORE’S CREATIVE TALENT TO PROFILE SINGAPORE

BUILD SOCIAL MEDIA PRESENCE

Work Done in 2015

Create and Facilitate Inspiring Destination Content

+ 568% in 6 months

Launch of blogger event #SingaporeLive featured Singapore chef, designers, mixologist

Gingerline (Immersive Sg Dining Experience)

Videos with The Guardian featured 3 Singapore personalities and their perspectives on Singapore: Singapore After Dark, Sounds of

Singapore, Garden City State

Food Blog Award in Germany

For France’s Facebook Page

11 Top German food bloggers experienced Singapore’s multicultural cuisine and amplified their Singapore experience on

their social channels

LEVERAGE PR, DIGITAL AND SOCIAL MEDIA


ENGAGE INFLUENCERS TO AMPLIFY THEIR CONTENT ON SINGAPORE

Work Done in 2015

Create and Facilitate Inspiring Destination Content

#SingaporeLive Bloggers-In-Residence Programme in partnership with Unlisted Collections


SNAPSHOT OF PR COVERAGE

Work Done in 2015

Approaches

FY16/17 LEISURE WORKPLAN

SHARPEN TARGETING OF KEY SEGMENTS

FAMILIES Potential to target families

with older children from France, UK, Germany

ACTIVE SILVERS 33% of UK visitors above 55. Germany 23%, France

23%

CRUISERS 6.4mil Europeans cruised in 2014 ,10-year CAGR of 8%; Germany #1 cruise mkt in Europe, 1.7m pax in 2014

WORKING MILLENIALS

Stretch the idea of City Break to long haul

destinations

ENTRENCH IDEA THAT A TRIP TO SOUTHEAST ASIA AND OCEANIA BEGINS WITH SINGAPORE

BUILD NEW RELATIONSHIPS AND CONTINUE ENGAGEMENT WITH KEY TRAVEL TRADE PLAYERS

Expand content and engagement on First Stop Singapore

Deepen trade partnerships

UK: Thomas Cook Trailfinders, Flight Centre, Cox & Kings, Travel Counsellor etc

Germany: Meier’s, DerTour, FTI, Expedia etc

France: TUI, Tour Asia etc

LEVERAGE PR, SOCIAL MEDIA CHANNELS

AND ENGAGE INFLUENCERS

Blogger-in-Residence

2.0

Ramp up social media efforts in UK and build

on momentum in France, Germany and

Moscow

ACTIVATE NEW CRUISE PARTNERSHIPS WITH

CRUISE LINES Joint Marketing

Collaborations with HAL/Seabourn (Phase 2),

Royal Caribbean, Princess, Celebrity, Silversea, Imaging

Cruising, TUI Cruises

BUILD PRESENCE AT CLIA Headline sponsorship for 3

years (2016-18) in 4 of Europe’s largest cruise

trade events

FY 2015/16

KEY TRADESHOWS & NETWORKING EVENTS

MICE – 2015 KEY INITIATIVES


BUSINESS DEVELOPMENT AND MARKETING

Work Done in 2015

IMEX Frankfurt

IBTM Barcelona

Engage MICE Planners in German-speaking Markets

Continue to position Singapore as a compelling and top-of-mind destination for MICE events in Asia

MICE Newsletters to the French MICE Market


FOCUS ON 3 CORE MARKETS (UK, GERMANY, FRANCE)

FY16/17 BTMICE WORKPLAN

MEETINGS & INCENTIVES (M&I)

Incentive groups from Europe are still active albeit in smaller groups

M&I trips tend to be mono-destination

and compact in schedule

BUSINESS TRAVELLERS (BTs)

Highlight leisure offerings

ASSOCIATION CONVENTIONS & EXHIBITIONS (C&E)

Complement HQ’s cluster approach to tap geographical opportunities

HOW

STRENGTHEN SINGAPORE’S M&I APPEAL

LAUNCH OF M&I INSPIRE SCHEME

(NEW!) Promote take-up of new scheme through MICE Media Partnerships,

Fam Trips, Engagement Sessions with Agents/Clients

STEP UP ENGAGEMENT EFFORTS

MICE Partnerships e.g. Thomas Cook M&I Forums

C&IT/M&IT events

CONTINUE TO SUPPORT HQ’S BUSINESS DEVELOPMENT EFFORTS

International & European Association Conventions

FInTech Push with MAS UFI CEO Summit

STEP UP RO’S BUSINESS

DEVELOPMENT AND MARKETING WORK

Media buys in Exhibition World, AMI and C&IT

STEP UP ON PR & MARKETING EFFORTS

Financial Times Singapore

Supplement

FY 2015/16

INSPIRE EUROPE – MEETINGS & INCENTIVES SCHEME

FY 2015/16

Cocktail Experience Business Thematic Tour

31

Participate in Europe’s Upcoming Trade Platforms:

• IBTM World Barcelona: 29 Nov to 1 Dec • Trade engagement sessions

• Jun 14 to 16: London, Milan, Paris • Sep: Moscow, St Petersburg • Oct: Turkey

• Host trade/media trips to Singapore

COME JOIN US….

THANK YOU!


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