UNDERSTANDING TRAVEL DISTRIBUTION TO REACH MORE …€¦ · Planning & Booking Tools Planning: 76%...

UNDERSTANDING TRAVEL DISTRIBUTION

.... TO REACH MORE CUSTOMERS

Rona Wallace

SENIOR MANAGER

INTERMEDIARY MARKETING

SCOTTISH TOURISM – A SUCCESS!

Trends for Adventure Tourism

International Markets Rankings:

Market Share & Spend

International markets (besides UK) • Overseas tourists +16.9% and expenditure +23% vs LY

• Driven by European visitors: +17% and expenditure +36% vs LY

Europe • Market share 49% • Spending 46%

US & Canada • Market share

21% • Spending 28% Source:

Top 12 Inbound Countries to Scotland (all visits), IPS 2017 vs 2016

Market Insights

Us market

us market - Consumer insights

2. STUNNING

landscapes

3. Scottish

ancestry

Visiting castles

Enjoy scenery

Visit city/cities

Book 4.8 months in

advance1 Plan 8.2 months in

advance1

Activities in scotland

Motivations for visiting Scotland

1. History &

Culture

Planning & Booking Tools

Planning: 76% Booking: 72%



Where can we find them? Demographics

Motivations (All

Holidays)

Have fun

Enjoying Landscapes

Value for money

Age: 45+ (56 – 65 most valuable sub-group) 61% trips & 67% spend therefore potential in short/medium term Income: $100K Lifestyle: Near or empty nesters Holiday type: Single, Couple & multi-generational

10.5 Average nights per stay

£1,130 Average spend per visit

Region of Origin7 California 1

New York 2

Florida 3

Texas 4

Pennsylvania 5

5.9 Average number of regions visited1

10 Average days paid holiday (excl. public holidays)3

Canada market

canada market-Consumer insights

2. History &

culture 3. My Scottish

ancestry

Visiting castles

Enjoy scenery

Visit Museums,

Cathedrals, Church

Book 3.8 months in

advance1 Plan 6.7 months in

advance1



1. Scenery &

landscapes

Planning & Booking Tools




Where can we find them? Demographics

Motivations (All Holidays)

See other countries

Learn the culture

Visit family/friends


£874 Average spend per visit

Age: 34-54 years Income: $100K Lifestyle: Near or empty nesters Holiday type: Single, Couple & multi-generational

Region of Origin⁴

Ontario 46%

British Columbia 18%

Alberta 11%

Nova Scotia 6%

Quebec 6%

germany – consumer insights

german market

Motivations

(All Holidays)


4.7 Average number of regions visited • Touring the country

• City & Attractions, City

• Based in countryside location

Types of holiday

30 Average days paid holiday (exc. Public holidays!)

Plan 5.2 months in

advance

Book 3.6 months in

advance

Relaxation

Have fun

Be close to nature

Local food & drink

Enjoy the scenery

Walking & Hiking


1. Stunning

landscapes

2. History &

CULTURE

3. Friendly

people Scotland Visit

Numbers 372,000

Nights 2.61m

Spend £285m


£1,21

8

Average spend per visit

DemographicS • Cultural Explorers with core segment 35+ • 55% Female / 45% Male • Above median income • Most affluent European market • Employed or retired

Direct Access

30% Take Domestic

holidays

70% Take international

holidays

France – consumer insights

French market

Motivations (Scotland Holiday)

1. Stunning

landscapes

2. History &

Culture

3. Friendly

People

Motivations (All

Holidays)

Seeing the country

Museums

Shopping


4.4 Average number of regions visited

Walking/ Scenery

Museums/ Castles

Food & Drink

Touring / Cities /

Cities+

Types of holiday


Plan 3.9 months in

advance

Book 2.9 months in

advance

Direct Access

DemographicS • Baby Boomers & Gen X • 53% Female / 47% Male • Above median income • Employed or retired

Scotland Visit

Numbers 206,000

Nights 1.76m

Spend £106m


£496 Average spend per visit

88% Take Domestic

holidays

12% Take international

holidays

So, Why do they come to Scotland?

To immerse

themselves in our

history

To take in our

breath taking

landscapes

To experience our

nightlife and

attractions

They love our culture:

our film, stories, our

festivals and food,

and they love to shop!

Edinburgh is

the 2nd most visited city

in the UK, and Chinese

tourists are now

exploring more of

Scotland

Where do they find

holiday inspiration?

6 months out, they

plan using:

Travel Guide Websites 77% Blogs/social networks 62% Travel Guidebooks 57% Television programme 52% Travel Agency website 52% Travel Agency brochure 41% Advice from travel agency 41%

3 months out, they

book using:

Internet 68% Face-to-Face 28% Telephone 3%

Where do they talk about

holidays?

Source: IPS

Source: IPS

China is now

Booking.com’s #1 Market

for 4 and 5 star hotels

in Edinburgh

Source: booking.com

Source: IPS

Purpose of visit

Holiday: 53% VFR: 19% Business: 15% Study: 7% Source: IPS Source: IPS

1-

2

Average number of regions visited


china – consumer insights

INDIA – consumer insights

MOTIVATION AND ATTITUDES • Majority of holidays are FITs • Top sought after activities

• Visiting or staying in a castle • Whisky Distilleries • Film locations (Harry Potter, Bollywood and Hollywood ) • Traditionally must see locations e.g. Loch Ness • Now increasingly looking for unique activities • Growth of luxury travel

The visitor is changing

• Growth in international markets • Different booking patterns • Experiential trends • Mobile adoption

The visitor journey

Dream

Plan

Book Experience

Share

Multi channel approach

USA – 55% use an intermediary, high use of traditional travel agents France – 49% use an intermediary, over 245 UK tour operators in market Germany – 65% use an intermediary, over 390 UK tour operators in market

China – large majority book through trade; heavy regulation through traditional trade channels Canada – vertically integrated, around 12 key UK specialists, growing online Australasia – vertically integrated, key part of the distribution mix for airlines Spain – excellent connectivity, high usage of OTAs India – strong trade distribution but challenges with Scottish suppliers

Key consumer markets

Priority additional markets

How do they all fit together?

Scottish supplier: hotel/visitor

attraction/tour

Wholesaler/incoming tour operator/DMC

Edinburgh or London based

Tour operator

Retailer

Wholesaler (vertically integrated) eg TUI or Flight

Centre

Tour operator

Retailer – eg First Choice

Global Distribution System (GDS) such as Sabre or

Galileo – mainly chains and big brands

Retailer

Online Travel Agent (OTA) such as

Expedia 40% of global sales

Consumer direct via phone/email/website/social

Walk-in

Example of digital connectivity and distribution

Accommodation

freetobook Expedia

Supercontrol Booking.com

eviivo airbnb

Own website

Tour/attraction

Fareharbour Booking.com

Bokun Viator

TripAdvisor

Musement TUI

Own website

DIGITAL CONNECTIONS

Experience sector - Current Landscape

Current landscape

PhocusWright report: 2 in 5 Tours, activity and attraction (T&A) suppliers do not accept online bookings

More than 80% of global T&As are booked offline

VisitScotland VA data (Tours & Activities not included) *: 55% with no online booking

21% offering online booking

24% free entry

Overall estimate for Scotland: 10% of tours, visitor attractions and activity provers offer online bookings/ticketing.

298, 21%

701, 49%

339, 24%

93, 6% Sample of VA data on visitscotland.com

Bookable

Not bookable

Don't have a paid for attraction element

No website

*This data is a sample of the experiences on visitscotland.com. T&As were excluded, only visitor attraction data was included.

Growth in the experiences sector

Booking.com purchases FareHarbor

April

2018 TripAdvisor acquired

Bokun

Aug/Sept

2018

Expedia set their sights on quadrupling the £400m they made

from T&A in 2017

2017

Airbnb launches it’s Experiences

platform

Timeline of tech advances

2016 April

2018 Google’s developments

Reserve with Google (limited partners) & touring bird (not yet in

UK)

2014 TripAdvisor

purchases Viator

May

2019 Booking.com starts to offer standalone

tours and attractions bookings

online Booking System

What is it? Examples

A system that enables a business to display their live inventory and rates via their own website and take online bookings.

FareHarbour Trekksoft & DigiTickets Rezgo Bokun Regiondo Bookeo

Bookify Rezdy Access Gamma Galaxy Connect

Online Booking System Example

Online Booking

/live availability

a visitor

management tool

But…

If not using

channel manager

then no link up to

OTAs

Homepage booking

Channel management


Functionality within a booking engine that allows a business to distribute their inventory and rates to OTAs e.g. Viator

FareHarbour Trekksoft & DigiTickets Rezgo Bokun Regiondo Bookeo Bookify Rezdy Access Gamma Galaxy Connect

Channel Management Example

This example GMCT are

using fareharbour, which

was the same booking

system used for the WBE

EXAMPLE

But…

Glasgow Music city Tours

are using the channel

management functionality

and distributing their

inventory, SEEN IN NEXT

SLIDE…

Homepage booking

Channel Management Example

Online travel agency - OTA

• OTA


A consumer facing booking site where a business can be listed. Either through their booking engine or working directly with an OTA (you don’t have to work with a

booking engine to work with an OTA but the real-time availabilities and API connections they offer make it a lot easier).

TripAdvisor Experiences/Viator GetYourGuide Expedia Local Expert Airbnb Experiences City Discovery Tour Radar Musement Klook Booking.com Experiences Tiqets

OTA inventory and Market Share

https://www.trekksoft.com/en/ebooks/marketplace-ota-comparison

OTA INVENTORY AND MARKET SHARE






Business examples using

otas

Other business examples

NTS Example

Scroll

There is no online

booking on the site

still…

NTS Example

They are

discoverable

through Viator

The Royal Yacht Britannia example

Online booking on

their website is

powered by DigiTickets

Homepage booking

They are

discoverable

through Viator

The Royal Yacht Britannia example

Blair Castle & Gardens example

Homepage booking

Online booking on

their website is

powered by WBE Access

Gamma bookings (they

offer channel

management)

Blair Castle & Gardens example

They are

discoverable

through Viator

Payment Gateway


Gives a business the functionality to take card payments securely online. However, there is no link up to product availability.

Worldpay Paypal Sage Pay Stripe Braintree

Payment Gateway Example

Provides the

customer with an

online solution

But…

There is no link

up to the venue

availability

and/or otaS

Homepage Visit us booking

Summary of what’s been covered

Online booking in the experiences

sector

It’s changing! Indicators:

Consumer behaviour, industry recognition and

online travel biggest names taking interest

Online booking tools for

experiences

Online Booking system Channel Management Online Travel Agencies

Payment Gateway

Business examples

There is not one size fits all, experiences are trying

solutions to see what works for them

Final thoughts

CREATING BOOKABLE PRODUCT

Developing a compelling proposition

Developing your

proposition

What is your unique proposition

?

What assets do you have?

Who can you work in partnership

with?

What kind of customer

do you want?

High end Families Groups

Other attractions/experiences Day tour operators Accommodation, retailers

Excellent service Personalisation Unique experience Active – facilities for walkers/cyclists Local knowledge

Location History/heritage Local food and drink Thematic Adventure

Consumer insights / global travel trends

Trends

touring Screen tourism

Scenery & landscape Unique EXPERIENCES


RISE OF THE POST-DEMOGRAPHIC CONSUMER

The road to self-fulfilment

Destination is a backdrop to

fulfilling our objectives

• Experiences over Possessions

• Demand for Personalisation

• Personal Fulfilment is increasingly a

driver for decision making:

• Challenges

• Wellness/Betterness/Mindfulness

• Family & Friends

• Peregrination Icons by Adioma


A REASON FOR BEING

Graphic: forbes.com

Japanese Concept meaning “A Reason for Being”

Satisfaction, but feeling of

uselessness

Comfortable, but feeling of

emptiness

Delight and fullness, but no wealth

Excitement and complacency, but sense of uncertainty

ALL IS WELL…

The United Nations World Tourism Organisation defines wellness tourism as

“a type of tourism activity which aims to improve and balance all of the main domains of human life including physical, mental, emotional, occupational, intellectual and spiritual”.

Wellness tourism grew from a $563 billion market in 2015 to $639 billion in 2017, or 6.5% annually, more than twice as fast as [global international] tourism overall (3.2%†). (Global Wellness Institute 2018)

Top Wellness Tourism Markets • USA • Germany • China • India

Most Valuable Inbound Markets to Scotland & Strategic Emerging Markets • USA • Germany • China • India



WELLNESS / ADVENTURE TRENDS

Authorenticity Visitors are trying to balance a need for exclusivity with the risks of trying something totally new. Opportunities for immersion in local culture and authentic experiences, connections with local communities and other travellers can be through social-focused amenities such as food, fitness and tours.

Restorative Recreation The emotional benefits of ‘ecotherapy’ are well documented,

but there can also be long-term, physical health improvements associated with time spent in green spaces. The Japanese concept of ‘Shinrin Yoku’ – or forest bathing – has been linked to reduced rates of cardiovascular illness and Type 2 diabetes.

Creative Retreats Travel today is increasingly motivated by gathering experiences. Skills development are a growth area such as outdoor survival schools and treks all add to the attractiveness of a destination. By sharing your interests with your visitors you can build relationships and garner those all important referrals to their friends and relatives so they might visit too

Unexpected Adventures In today’s perfect Instagrammable world, it is the discoveries we make when things don’t go exactly to

plan are often what makes an experience unique. With an increase in visitors looking for the distinctive and the authentic, this will often translate to enjoying imperfect moments. The Japanese world view of ‘Wabi Sabi’ is

centred on embracing the beauty in the unexpected and is closely linked to self-actualisation and wellness trends.

Icons by Adioma


SELLING MORE THAN AN ADVENTURE

Heritage UGC

Allies

Stories

Local

Perfect Partners Supply chains are shortening and consumers are looking at frictionless purchasing. Can you go direct to the provider or through a single aggregator. Can you recommend suitable accommodation and travel providers, broker the package for your visitors?

Living Local Visitors seek unique. By engaging with local providers, artisans and demonstrating the connection with the surrounding area and the impact that their purchases are making to the economy will chime well with their motivations.

Selling your stories Visitors want meaningful memories. How can you sell your story which provides a connection to your customer. Your story could be about the product development, a myth or legend or it could be your story and the journey to get where you are now? It is the human element that visitors use to differentiate from a bland and generic experience.

Your Guests / Your Advocates In the world of fake news, consumers see authenticity as important, especially in relation to brands. Today genuine User Generated Reviews and content resonate most with consumers. Can you encourage genuine reviews or provide those smostable opportunities that develop the advocates and referrals that will benefit your business.

Harnessing Heritage Many visitors to Scotland see Landscape and Heritage as interlinked. Combining activities, where possible with opportunities to engage with heritage and culture will enhance a visitors experience. Itineraries, routes or rest stops at historic locations or even screen tourism hotspots will be seen favorably be guests.

Icons by Adioma

Bookable Product

• What is your unique propositions?

• What assets do you have?

• Who can you work with to create and develop a thematic proposition?

• Working in partnership - how can you collaborate on a local level to amplify the destination message?

Developing your bookable product for B2B

• VISITSCOTLAND.ORG

• FREE LISTING ON VISITSCOTLANDTRAVELTRADE.COM

• YOUR VISITSCOTLAND INDUSTRY RELATIONS MANAGER

• B2B EVENTS including EXPO

WHAT NEXT?

THANK you

UNDERSTANDING TRAVEL DISTRIBUTION TO REACH MORE …€¦ · Planning & Booking Tools Planning: 76%...

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Transcript of UNDERSTANDING TRAVEL DISTRIBUTION TO REACH MORE …€¦ · Planning & Booking Tools Planning: 76%...