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15 May 2013 / Webinar Source Market Central Europe / First Part Page 1
15 May 2013 / Webinar Source Market Central Europe / First Part
Webinar: Source Market Central Europe
First part:
Market information for strategic and profitable decisions
Module 1:
Market environment – stakeholders, their interests and behaviours -
understanding the German market and profiting form it
Dres. Dingeldey Business Consultants | [email protected]
Page 2
15 May 2013 / Webinar Source Market Central Europe / First Part
The Presenters
David Ruetz
Head of ITB Berlin
Dr. Alexander Dingeldey
Dres. Dingeldey Business Consultants
Strategy consultant Tourist Trade since 2002
Dr. Klaus Dingeldey
Dres. Dingeldey Business Consultants
Strategy consultant Tourist Trade since 1969
Dres. Dingeldey Business Consultants | [email protected]
Page 3
15 May 2013 / Webinar Source Market Central Europe / First Part
How We Work Together
Charts and webcast will be published on the website
Questions:
Box for your questions
General questions will be answered to all participants
Private questions directly to you
Questions will be answered after each module as far as possible
Open questions will be answered per email after the webinar
Feel free to ask personal questions after the webinar to:
Dres. Dingeldey Business Consultants | [email protected]
Page 4
15 May 2013 / Webinar Source Market Central Europe / First Part
Agenda
First part: Market information for strategic and profitable decisions (today)
Module 1: Market environment – stakeholders, their interests and behaviors - understanding the
German market and profiting from it
Module 2: Tourism companies in Germany, Austria and Switzerland as business partners and
their potential to generate business
Second part: Tailor made products and marketing (4th of June 2013)
Module 3: Travel needs and behavior of German, Austrian and Swiss tourists and how Asian
tourism companies can profit from it
Module 4: What are German guests expecting form destinations and tourism companies in Asia
– Products and services with a high potential for demand
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15 May 2013 / Webinar Source Market Central Europe / First Part
General Economic Development in Europe
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GDP per capita in US$, current prices
• Many headlines during the last years have called on economic crisis in Europe.
• However the financial and economic crisis since 2008 did touch the various countries with a different impact.
• Within the European Union the Middle- and Northern European countries turned back to a positive development with different
growth rates with Germany in the lead, where as the Mediterranean Countries still are suffering from an economic downturn.
• Never the less because of the general level of economic development, all European countries have potentials for tourism to
Asian destinations.
• The gems amongst the source markets for tourism are Switzerland, Germany, Austria, the Netherlands, Luxemburg and the
Nordic Countries
Source: IMF WEO April 2013
0
10.000
20.000
30.000
40.000
50.000
60.000
70.000
80.000
90.000
1980 1984 1988 1992 1996 2000 2004 2008 2012 2016
Germany
Austria
Singapore
Switzerland
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15 May 2013 / Webinar Source Market Central Europe / First Part
Constantly Growing Purchasing Power in Central European Countries
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GDP per capita in Purchasing Power Standards 2011 (Average: EU27=100)
100
110
120
130
140
150
160
2000 2002 2004 2006 2008 2010
Switzerland
Austria
Germany
EU (27 countries)
Development:
Source: Eurostat 2013
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15 May 2013 / Webinar Source Market Central Europe / First Part
Spacial Distribution of Purchasing Power in Germany, Austria and Switzerland
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Page 8
Source: GfK 2012
Index of Purchasing Power
per Capita (Average=100)
under 72%
72% to 80%
80% to 88%
88% to 96%
96% to 104%
104% to 112%
112% to 120%
120% to 128%
128% and over
15 May 2013 / Webinar Source Market Central Europe / First Part
The Average German Household 2011 – Expenses and Possessions
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Income and expenses
per household per month in Euro
Income before Tax and Social Security: 3871
Income after Tax and Social Security: 2988
Spendings:
• Food&Beverage 312
• Clothing 104
• Living, Energy 775
• Traffic (Car, Train, Fuel,...) 319
• Leisure, Culture, Package Holiday... 244
• Hotel and Restaurant 119
Possessions
share of households that own:
Car 77.9
Television 96.2
Camera 88.1
Computer 82.0
Telephone 92.7
Mobile Phone 90.0
Afford at least one week of holiday per year 74.9 Source: DESTATIS
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15 May 2013 / Webinar Source Market Central Europe / First Part Page 10
The Financial Resources for Travelling Vary Widely within Europe
0
10
20
30
40
50
60
70
80
90
100
NO DK LU SE CH NL IS FI IE UK BE DE AT FR SI CZ ES IT GR CY SK EE LT PT LV HU PL MT RO BG
Source: Eurostat 2011
Share of household that can afford at least a one week holiday
away from home per year (%)
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Seite 10
15 May 2013 / Webinar Source Market Central Europe / First Part
Demographic Change Leads to Growing Potentials for Tourism
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Prospected change of average population
• Low birth rate, but fast increasing life expectancy, increasing inbound migration
• Older population travels with a high intensity – they keep their travel behaviour much longer than in former times
• More spare time in comparison to work time more time for travel
• Increasing average age of mothers at time of birth of their children longer phase as singles and DINKs higher potential for
long distance trips
• State funded family leave for the first year after birth of a child in Germany makes it possible that parents can go on long
holidays Need of products for families with small children
0,0%
20,0%
40,0%
60,0%
80,0%
100,0%
120,0%
140,0%
2010 2020 2030 2040 2050 2060
Switzerland
Austria
Germany
EU27 Average
Source: Eurostat 2013
2010:
Germany: 81.7 Mio.
Austria: 8.3 Mio.
Switzerland: 7.8 Mio. 0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
2010 2020 2030 2040 2050 2060
Switzerland
Austria
Germany
EU27 Average
Share of population over 65
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15 May 2013 / Webinar Source Market Central Europe / First Part
The main Outbound Tourism from the Source Markets in Europe is Heading for Destinations within Europe
Outbound Tourism
Departures of overnight tourists
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Page 12
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15 May 2013 / Webinar Source Market Central Europe / First Part
The continents except Europe have different market shares on the European source markets
Outbound Tourism
Departures of overnight tourists
Page 13
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15 May 2013 / Webinar Source Market Central Europe / First Part
Media Usage and Chances for Marketing Communication
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0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% 80,0% 90,0%
Reading Newspaper
Reading Magazine
Watching TV
Listening to Radio
Listening to Music (CD, mp3,...)
Watching Videos/DVDs
Going to Cinema
Going to Theatre, Concert
Sporting/Fitness
Going to Bars, Discothequs...
Do-It-Yourself
Use Computer
Use Computer Dayly
Media usage and spare time activities in Germany
Activities done more than once a week 2012:
Source: ARD – German State TV 2013, Persons over 10 years
• Main Sources of Information: TV, Radio, Newspapers and Computer
• 75% of the Population use the Computer more than once a week – to get information, for work or to play games.
• Public and private Television and Radio Stations in Germany, Switzerland and Austria
• Newspapers: In Germany, Austria and Switzerland spread their papers to a small extend nationwide, mostly regional and local.
Germany Austria Switzerland
Population 81.31 8.29 7.93
Internet User 66.48 6.56 6.51
Facebook User 25.33 2.92 3.06
Selected Online Activities:
Reading Online Newspapers 67% 57% n/a
Internet Banking 55% 57% n/a
Posting Messages to Social Media 42% 46% n/a
Book Travel and Accomodation
Service 62% 51% n/a
Creating a Website or Blog 8% 10% n/a
Online activity 2012:
Source: Eurostat, Internet World Stats
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15 May 2013 / Webinar Source Market Central Europe / First Part
Growing Influence of Mass Media
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Anthrax, Bird Flu, Swine Flu, SARS,... Anthrax, Bird Flu, Swine Flu, SARS,...– Hysteria
Page 15
Reality Media driven Reality
15 May 2013 / Webinar Source Market Central Europe / First Part
The EU has a Deep Framework of Regulations Concerning Travel and Tourism
EU Consumer Protection
Passenger rights for air, rail and ship transport
Package holiday regulation with protection of the consumer in case of bankruptcy
(compulsory insurance)
Airline tax
7,50/23,43/42,18 Euro per departure form a German Airport
No Tax if a people depart from AMS, ZRH, PRG…
Schengen
Group of countries with one border control at entry and departure
Heterogeneous visa regulation of different countries
Harder to remain visa (protection against terrorists, Illegal workers, criminals,...)
Harder for Schengen citizens to get visa in partnering countries as retaliation – if it gets
harder to get a Schengen Visa the partner countries make it more difficult as well
Margin Tax
VAT for travel within the EU, no VAT for cross border trips outside the EU –
Reason that the package production of tour operators is often located in Switzerland
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Page 16
15 May 2013 / Webinar Source Market Central Europe / First Part
Conclusions Module 1
Due to the economic and demographic development, size of the market, purchasing power and
general travel intensity and attraction to Asian destinations Germany, Switzerland and Austria
belong to the core markets within Europe for Asian suppliers.
3.8 Mio guests from Germany, Austria and Switzerland travelled to Asia in 2011
Because of the long distance holiday guests from Central Europe stay with an average of
23 days at far eastern destinations and spend 110 Euro per day.
Given that the Asian destinations will develop their attraction to European tourists in general and
for special segments and target groups there is a high potential within central Europe to gain
further guests in future.
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Page 17
15 May 2013 / Webinar Source Market Central Europe / First Part
Webinar: Source Market Central Europe
First part:
Market information for strategic and profitable decisions
Module 2:
Tourism companies in Germany, Austria and Switzerland
as business partners and their potential to generate business
Dres. Dingeldey Business Consultants | [email protected]
Page 18
15 May 2013 / Webinar Source Market Central Europe / First Part Page 19
Historic Tourism Value Chain (~1990) still has a big influence on the Current Market Structure
Hotel Incoming Transport Tour-
operator Travel
Agency
Media Intermediary
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Supplier
Guest
Personal selling
Telephone
Advertisement
Catalogue
Direct Mailings
TV/Radio
Seite 19
15 May 2013 / Webinar Source Market Central Europe / First Part Page 20
Structure of Communication, Packaging and Purchasing Process are Changing Tremendously
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Media Supplier Intermediary
Guest
Hotel
Incoming
Flight
Coach
Car Rental
Train
Travel Agency
Online and
Offline Tour Operator
Online and
Offline
Bed-Banks
Personal selling
WWW
TV/Radio
Telephone
Advertisement
Catalogue
Snail-Mail
Price
Comparison
Systems
Evaluation
Portals
Direct
Ship
Other
Seite 20
15 May 2013 / Webinar Source Market Central Europe / First Part Page 21
Change of the Importance of Booking Channels and Holiday Organisation in Germany
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44%
8%
7%
21%
13%
34%
7%
15%
29%
14%
0% 10% 20% 30% 40% 50%
Travel Agency
Tour Operator
directly
Online Travel
Agency
Accommodation
directly
Transport directly
2005 2012
Booking channels 2012:
48%
27%
11%
6%
17%
34%
42%
33%
13%
15%
0% 10% 20% 30% 40% 50% 60%
Holiday Package/
Modular Package
Hotel seperatly
Tickets seperatly
Other parts
seperatly
Nothing
prebooked
2005 2012
Holiday organisation 2012:
Source: FUR, holiday trips with 5 days and longer
Seite 21
15 May 2013 / Webinar Source Market Central Europe / First Part
The destination has a Strong Influence in the Type of Travel Organisation – Example German Source Market
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16%
49%
65%
2% 3%
9%
15% 14%
34%
16%
46%
13%
4%
26%
52%
18%
0%
10%
20%
30%
40%
50%
60%
70%
Domestic International Med-Haul Long-Haul
Holiday Package
Modular Package
Tickets seperatly
Hotel seperatly
Other parts seperatly
Nothing prebooked
Organisation of holidays in Germany 2010
Source: FUR, holiday trips with 5 days and longer
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15 May 2013 / Webinar Source Market Central Europe / First Part
German Tour Operator and Travel Agency Market
0
5000
10000
15000
20000
25000
30000
1995 2000 2005 2010 2012
Other
FTI
Alltours
Thomas Cook
REWE
TUI
41.9%
35.1%
38.3% 44.1%
Source: FVW, Methodical Change 2003: Bei TUI, TC and REWE only German Revenue since 2003, Total Market: FVW, TouristScope, DRV and own calculations
Revenue in M
io. E
uro
21.3 Bn.
19.5 Bn. 19.1 Bn.
15.4 Bn.
18.6%
19.2%
15.7%
22.3%
15.6%
17.5%
23.2%
14.6%
15.4%
18.0%
14.0%
13.4%
24.3 Bn.
43.2%
18.3%
13.1%
13.1%
Thomas Cook
5,5%
LH
City
Center
RSG
4,4%
CWT
4,0%
TMCV
9,6%
TUI
Leisure
Travel
REWE
17,4%
QTA
20,6%
BCD
7,5%
OFT
3,4% Other
1,3%
Tour Operators (by Turnover): Travel Agencies (by Turnover):
QTA: RTK, Schmetterling, Best-RMG, Alpha, TUI Travel Star
TMCV: TSS, AER
RSG: ProTours/ RCE, Deutscher Reisering, TourContact, Prima Urlaub
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Page 23
15 May 2013 / Webinar Source Market Central Europe / First Part
Austrian Tour Operator and Travel Agency Market 2011
Tour Operators (by Turnover):
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Jumbo
7,2%
TUI
38,0%
REWE
17,8%
FTI
9,0%
Thomas
Cook
17,8%
Alltours
5,0%
Other
5,2%
Source: ÖRV, WKO
Other
Individual
TA
18,2%
TUI Travel
Star
20,0%
ÖVB
Ruefa
Reisen
20,0%
TUI Reise-
center
13,6%Kuoni,
Gruber,
Raiffeisen
17,3%
Other
TA
Chains
Travel Agencies (by Turnover):
~650 tour operators in total ~2100 travel agencies
1.9 Bn. Euro turnover
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15 May 2013 / Webinar Source Market Central Europe / First Part Page 25
0%
10%
20%
30%
40%
50%
60%
70%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Access
Information
Booking
Source: FUR
Increasing Use of the Internet for Information and Booking
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Share of the population over 14, that has access to the Internet, uses it for
information about travel products and bookings.
15 May 2013 / Webinar Source Market Central Europe / First Part Page 26
Online Information and Booking 2012:
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3%
3%
3%
9%
8%
16%
16%
19%
6%
7%
10%
16%
22%
32%
32%
37%
0% 10% 20% 30% 40%
Info Car Rental
Info Train
Info about Event at Destination
Info Fight
Info Package/Modular Tour
Info Accomodation
Price Comparison
Info Destination
2005 2012
Online topics of information:
2%
2%
2%
4%
4%
7%
4%
5%
5%
10%
10%
18%
0% 5% 10% 15% 20%
Ticket (Cinema,
Theatre,...)
Car Rental
Train Ticket
Hoilday
Package/Module
Flight
Accomodation
2005 2012
Online booking:
Source: FUR, holiday trips with 5 days and longer
15 May 2013 / Webinar Source Market Central Europe / First Part
Conclusions Module 2
The presence in the internet is mandatory for any supplier who wants to sell on the Central
European market
The offer should be made in English or even better in German (further information in Part 2)
With business partners communication in English is common
To be successful on the Central European Market it is still necessary besides an informative
internet presence to use the support of partners – tour operators, travel agencies, global hotel
chains – to develop the market
To select the right partners every enterprise has will have its own criteria: Size, strategy and
philosophy, target group orientation, branding, coverage, compatibility of processes and
systems.
Further information about potential partners you will find with national trade associations,
national tourism organisations, trade directories (like www.tid.de) and trade fairs.
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Page 27
15 May 2013 / Webinar Source Market Central Europe / First Part
Outlook: Second Part 4th of June 2013 10:00 am CET
Tailor made products and marketing:
Module 3: Travel needs and behaviour of German, Austrian and Swiss tourists and how Asian
tourism companies can profit from
Module 4: What are German guests expecting form destinations and tourism companies in Asia
– Products and services with a high potential for demand
Dres. Dingeldey Business Consultants | [email protected]
Page 28
15 May 2013 / Webinar Source Market Central Europe / First Part
Questions and Further Information:
Dres. Dingeldey Business Consultants:
Clermont-Ferrand-Allee 28
D-93049 Regensburg
Tel: +49 941 565911
Fax: +49 941 565912
Rohrer Str. 19
A-6280 Zell am Ziller
Tel: +43 5282 20555
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Page 29
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