sot europe

INTRODUCTION

Welcome to the Europe installment of Skift’s annual State of Travel data deck. Last year we launched

the global State of Travel data deck, and this year Europe is our first in other major global industry

regions to come, including Latin America, Asia, Middle East and others.

Evolving from our daily coverage of the global travel industry, fueled by our ongoing series of trend

reports, and featuring expert research and insights, what follows is a cross section of key data — in-

formation that frames and contextualizes the vibrant, dynamic European travel landscape.

From overarching trends to the ever-increasing impact of mobile and online technology — and offer-

ing a deep look at what’s happening in every critical travel vertical — this is the state of the travel

industry in Europe in 2015.

Attention is also given to traveler demographics, to the continued influence of the Chinese outbound

traveler on European brands and destinations, and to revenue-relevant sectors such as business

travel, the sharing economy, and ways in which start-ups are reacting to shifting brand, passenger,

and guest demands.

Learn even more about the business of going places by staying in touch with Skift’s in-depth consid-

erations of travel news and trends at skift.com.

Written & curated by James O’ Brien and Rafat Ali, Skift

ABOUT SKIFT

Skift is the largest industry intelligence and marketing platform in travel, providing news,

information, data and services to all sectors of the world’s largest industry.

Based in New York City, Skift has deep experience in identifying and synthesizing existing and

emerging trends, in its daily coverage of the global travel industry, through its Skift Trends Reports

and its data insight from SkiftIQ competitive intelligence service.

Within a short two years of its existence, Skift has become the lingo in the travel industry, and is

now a daily tool by the top strategists, technologists, and marketers in travel.

“Simply love you guys. The freshest cogent ideas / POV’s come from your team. Thanks.”

Christopher Baer, head of innovation, Marriott.

“As a 20 year veteran of technology and travel, Skift has become my must read of the day.”

Michael McDowell, head of innovation, Hertz.

“Talk about a gap in the market. Not sure where we in the travel industry got our news, insight &

analysis from before Rafat created Skift.”

Chris Boden, former head of innovation, Lonely Planet.

The State of European Tourism

Travel and Technology: European Mobile in 2015

OTAs and Online Bookings in Europe

European Airports & Airlines

The European Hospitality Sector

Cruises: European Industry Expands to Meet Demand

Europe's Museums, Attractions, Culture, and Heritage

European Demographics: Millennials, Gen X, Boomers, and More

The Chinese Traveler in Europe

European Business Travel in 2015

The Sharing Economy

The European Travel Start-Up

5

13

21

32

48

56

65

73

81

94

99

104

TABLE OF CONTENTS

THE

STATE OF

EUROPEAN TOURISM

State of Travel 2015: Europe6

Tourism Fuels European Economic Development and Employment

Source: European Commission/DG Enterprise and Industry Tourism Policy Unit (2014)

% of EU GDP

Tourism Sector Only

All Related Sectors

% of Total Employment Number of Jobs Sustained

9M

22M

25

20

15

10

5

0

10

8

6

4

2

0

4.1%

10%10

8

6

4

2

0

9%

3.3%

1


Market Share of International Tourist Arrivals

2 European Tourism Market Share

41%

30%

14%

8%

7%

Europe

Asia Pacific

Middle East

Americas

Africa

Source: ETC (2014)


Tourism Visitor Totals

Projected Avg. Int’l Tourism Growth

% Growth of European Tourism Sector

2010–2025

2.5

2.0

1.5

1.0

0.5

0

2.4%

2014

4

2

0

4%

3 A Year of Growth in Tourism

4002000

2013

2014

600

566M

588M

Overall, inbound European tourism is on a path toward record growth.

Source: UNWTO (2014)


December destinations were dominated by European travelers.

806040200

78%

13%

11%

5%

European Travelers Booking to Europe

Latin American Travelers Booking to Europe

North American Travelers Booking to Europe

Asia-Pacific Travelers Booking to Europe

4 A Year of Growth in Tourism

Source: Sojern (2015)


The European Tourism Commission notes that most of the top-five destinations are “investing in their tourism potential” or marked by the “recovery of business travel and price convenience”.

5 Iceland and Greece Ahead by Visitor-Volume GrowthIceland and Greece Ahead by Visitor-Volume Growth

24%

Czech Republic

Romania

Serbia

Latvia

Greece

Iceland

23%

15%

12%

11%

11%

2520151050

Source: ETC (2014)


29.9%

Lithuania

Montenegro

Romania

Iceland

Greece

28%

26%

19.8%

19.7%

30150

6 Greece and Iceland Also Lead ETC Destinations by U.S. Visitor-Volume Growth

Source: ETC (2014)


Growth in Context: European Market Share — A Critical Juncture

Europe Asia-Pacific Americas Africa

2010–2030

1995–2010

1980–1995

4.1%

8.8%

3.0%

5.3%

3.4%

5.8%

2.2%

6.1%

2.5%

5.0%

2.6%

5.7%

7 International Tourist Arrivals Throughout the Years (% Avg. Growth)

Source: ETC (2014)

TRAVEL AND TECHNOLOGY:

EUROPEAN MOBILE

IN 2015


• Estimated % Global Growth of Mobile Phone Usage (2015): +4.4%

• Estimated Global No. of People with Mobile Internet Access (2017): 3B

• Avg. No. of Web-Enabled Devices per European Leisure Traveler: 3.2

• Estimated % of Mobile Phone Use Penetration (2016):

Western Europe: 70%

Eastern Europe: 64%

• Ratio of European Leisure Travelers Owning Smartphone, Tablet, and Laptop: 4 in 5

8 Projected Growth: Mobile Internet Access and Usage

Source: PWC (2014), OAG (2014), ETC (2014)


• Current Roaming Charges (EU):

Calls: €0.24 per minute

Texts: €0.08 per message

Data: €0.45 per megabyte

• Snapshot of Impact: Estimated Annual Cost of Roaming Charges (U.K. Travelers to EU): £112M

9 European Union Bans the Roaming ChargeMembers of the European Parliament voted to ban mobile-device roaming charges starting December 15, 2015.

Source: The Telegraph (2014)


Gross Bookings

2011 2.5B N/A

2012 5.7B 6%

2013 9.9B 10%

2014 14.6B 13%

2015 20.4B 17%

2016 27.3B 22%

Online Shares

10 Mobile Gross Bookings and Share on a Steady Climb

Source: PhoCusWright (2015)


Destination Selection Phase Travel Shopping Phase Booking Phase

85%

21%

18%

85%

15%

18%

82%

8%

11%

Laptop

Tablet

Smartphone

11 Across Trip-Planning Phases, Europeans Still Turning to Laptops

Source: PhoCusWright: ETTTS (2014)


Destination ActivitiesAirline BookingsHotel Bookings

Smartphones

Tablets

59%

Shop Shop ShopBook Book Book

65%

70%

64%

71%

66%

30%26% 26%

40%

35%

30%

80

60

40

20

0

12 Between Tablets and Smartphones, Europeans Prefer Tablets for Travel Planning

Source: Tnooz (2014)


Smartphones

Tablets

France Germany United Kingdom

150

120

90

60

30

0

18-24 18-24 18-2425-34 25-34 25-3435-44 35-44 35-4445-54 45-54 45-5455-64 55-64 55-6465+ 65+ 65+

20%

25%46%

59%51%

54%

31% 29%48%

63% 64%

67%

44% 45%

51%

74% 75%

82%

54%43%

55%

83%

86%

90%

42%42%

51%

87%92%

98%

44%42% 42%

92% 96% 97%

13 Snapshots: Millennials Like Smartphones, Gen Xers Choose Tablets



25%

20%

15%

10%

5%

0%

Bra

zil

Ger

man

y

Net

herl

ands

Fran

ce

Spai

n

Uni

ted

Kin

gdom

Ital

y

Uni

ted

Stat

es

Aus

tral

ia

Japa

n

14 Europe Major Player in Top 10 Global Share of Mobile Bookings

Source: Skift (2014)

Share of Mobile Bookings by Country (H1 2014)

OTAS AND ONLINE

BOOKINGS IN

EUROPE


15 Top 5 Most Searched DestinationsOriginations and Searched Destinations (Q4 2014)



34%

25%

0 15105 2520 3530

Short Lead (0-2 Days)

Long Lead (8+ Days)

16 Short-Search Bookings Have European EdgeEuropean Vacation Searches (December 2014)



1. Mallorca

2. Alicante

3. Los Angeles

4. Malaga

5. New York City

6. Bangkok

7. Barcelona

8. Ibiza

9. San Francisco

10. Miami

17 Summer 2015: 50% of European Searches Led to Spain



Total Gross Bookings

Online Bookings

Percentage of Change

2012

2013

2014

2015

2016

€ 241B

€ 243B

€ 251B

€ 259B

€ 268B

€ 241B

€ 101B

€ 110B

€ 118B

€ 126B

N/A

+<1%

+3%

+3%

+7%

18 Europe’s Online Travel Bookings Nearing ½ of Gross Bookings



19 Combined Online Bookings Close to 40% of All Airline Bookings

2012

2013

2014

2015

2016

€ 89.2B

€ 88.7B

€ 92.2B

€ 94.8B

€ 98.1B

20.1%

21%

22.5%

23.8%

25.2%

11.8%

12.1%

12.7%

12.7%

13%

57.3%

55.6%

56.9%

58.3%

60%


SupplierOnline

OTA Other



50%

40%

30%

20%

10%

0%

2011 2012 2013 2014 2015

38

17

40

23

1718

40

20

41

25

19 19

42 42

26

21 21

45

27

43

28

2221

48

30

43

29

232222

20 European OTAs Capture First Place Globally for % of Gross Bookings


Europe Eastern Europe U.S. APAC Middle East Latin America


21 OTAs Lead in Online Hotel Bookings Share

2012

2013

2014

2015

2016

€ 79.6B

€ 80.9B

€ 83.2B

€ 85.9B

€ 88.3B

6.3%

7.1%

7.9%

8.8%

9.8%

16.4%

17.8%

19.6%

21.2%

22.7%

56.9%

56%

55.8%

55.9%

65.8%


SupplierOnline

OTA Other



350

300

250

200

150

100

50

0

$83.6B

$44.9B$28.5B

OTA Market (USD) Total Travel Market (USD)

$333.2B

$304.6B$322.6B

Europe

United States

Asia-Pacific

22 Europe’s OTAs Lead in Regional Market Size



23 Online Travel Agencies Poised to Capture 1/3 of Mobile Bookings

30%

70%

OTAs

Other Mobile Online

Source: Economist (2014)


Gross Bookings Percentage of Growth

2012

2013

2014

2015

2016

€ 35.7B

€ 39.9B

€ 43.9B

€ 47.6B

€ 51.1B

N/A

12%

10%

8%

7%

24 Europe’s OTA Bookings Growth: Slow but Steady (2015–16)


EUROPEAN

AIRPORTS &

AIRLINES


25 Leading OTAs in EuropeShowing leading OTAs with highest ranking geographies that are European locations and with Estimated Desktop Visits >5M

57.5M

25M

12.3M

10.4M

6.4M

6.2M

6.2M

5M

5:19

4:59

5:21

5:37

5:34

4:39

9:56

9:57

4.53

3.93

5.67

5.53

6.27

4.36

12.97

12.54

UK 63.63%

UK 79.96%

France 67.43%

Italy 99.78%

UK 46.17%

Spain 69.08%

UK 82.59%

France 83.25%

Estimated Desktop Visits

Time on Site

Page Views per Visit

Leading Country

Skyscanner.net

TripAdvisor.co.uk

TripAdvisor.fr

TripAdvisor.it

Lastminute.com

TripAdvisor.es

Airbnb.co.uk

Airbnb.fr

May

May

March

March

March

March

March

March

Source: Similarweb (2015)


% Increase Aircraft Movements (2013–2014)

% Growth of European Airport Passenger Traffic (2014)

+7.3%

+5.4%+4.9%

+1.5%

+5.6%

+2.6%

8

7

6

5

4

3

2

1

0

26 Europe’s Airports are Booming (Especially Non-EU Airports)

Source: ACI (2015)

All Europe

Non-EU

EU


Airports: 25M+ Passengers Annually

+10.6%

+7.9% +7.5% +7.4%+6.6%

12

8

4

0 Bar

celo

na

Mos

cow

D

ME

Lond

on

LGW

Mos

cow

SVO

Ista

nbul

IS

T

Airports: 10–25M Passengers Annually

+25.4%

+21.3%

+14.7%

+11.8%+13.3%

30

20

10

0 Lond

on

STN

Lisb

on

Bru

ssel

s

Athe

ns

Ista

nbul

SA

W

Airports: <5M Passengers Annually

+34.8%

+31.3% +30.9%

+24.9%+26.9%

35

25

15

0 Mar

ibor

Mik

onos

Bel

grad

e

Sant

orin

i

Chi

sina

u

Airports: 5–10M Passengers Annually

+11.1%+10.3%

+9.5%+8.7%+8.8%

12

8

4

0 Port

o

Buc

hare

st

OTP

Nap

les

Lanz

arot

e

Bas

el-M

ulho

use-

Frei

burg

27 Moderate- and Large-Size Airports are Leading the Boom

Source: ACI (2015)


1,361,105 Istanbul Ataturk Airport

Moscow Sheremetyevo Airport

Moscow Domodedovo Airport

Istanbul Sabiha Gokcen Airport

Athens International Airport

Moscow Vnukovo Airport

Saint Petersburg Pulkovo Airport

Ankara Esenboga Airport

Warsaw Frederic Chopin Airport

Prague Václav Havel Airport

717,896

655,761

523,872

335,934

314,408

303,581

243,302

233,508

215,636

28 Eastern Europe: Top 10 Airports by Seats (Domestic and Int’l)

Source: Airline Leader (2015)


1,744,081

1,403,138

1,336,073

1,103,611

1,014,170

838,699

832,415

700,911

700,602

632,008

London Heathrow Airport

Paris Charles de Gaulle Airport

Frankfurt Airport

Amsterdam Schiphol Airport

Madrid Barajas Airport

Munich Airport

Rome Fiumicino Airport

Barcelona El Prat Airport

London Gatwick Airport

Paris Orly Airport

29 Western Europe: Top 10 Airports by Seats (Domestic and Int’l)



Large airports: >20M seats per annum.

84.4% 84.4% 82.4%79.1%

89%

Mun

ich

MU

C

Am

ster

dam

AM

S

Fran

kfur

t FR

A

Bar

celo

na B

CN

Rom

e Fi

umic

ino

100

80

60

40

20

0

88% 88% 87.9% 87.2%

Cop

enha

gen

Vie

nna

VIE

Hel

sink

i HEL

Osl

o O

SL

Ber

lin T

egal

TX

L

89.8%

Medium airports: 10M–20M seats per annum.

100

80

60

40

20

0

30 Medium and Large Airports are Neck-in-Neck for On-Time Rates

Source: OAG (2015)

On-time defined as within 15 minutes of schedule departure/arrival.


100

80

60

40

20

0

94.9%90% 89.7% 89.7% 89.4% 89.1% 88.6% 87.7% 87.1% 87.1%

Luft

hans

a LH

Air

Eur

opa

UX

Easy

Jet U

2

Finn

air A

Y

SAS

SK

KLM

KL

Nor

wei

gian

Air

Shu

ttle

DY

Iber

ia IB

Aus

tria

n A

irlin

es O

S

airB

altic

BT

31 European Airlines: Top 10 On-Time Percentages (2014)

Source: OAG (2015)


6

5

4

3

2

1

0

% Annual International Air Passenger Increase (RPK)

+5.3%+5%

+3%

2013 2014 2012

32 In the Air: More Europeans are Flying

Source: ETC (2014)


620,139

503,914

329,076

215,141

133,959

107,830

104,013

76,370

62,640

62,640

Turkish Airlines

Aeroflot

Pegasus Airlines

S7 Airlines

Aegean Airlines

UTair Aviation

Transaero Airlines

Ural Airlines

AtlasJet

Onur Air

33 Eastern Europe: Turkish Airlines Leads by Seats



361,200

363,416

375,840

446,982

513,235

534,513

622,145

786,302

978,216

1,267,434 Ryanair

easyJet

Lufthansa

Air France

SAS

British Airways

Norwegian Air Shuttle

Vueling Airlines

airBerlin

Iberia

34 Western Europe: Ryanair Dominates the Seating Chart



1,279,173

790,076

435,753

352,296

347,400

270,223

240,088

202,933

194,463

2,568,236

Turkish Airlines

Aeroflot

Pegasus Airlines

Ryanair

Wizz Air

S7 Airlines

Transaero Airlines

Lufthansa

Aegean

Other

35 Turkish Airlines the Eastern Europe Capacity King



1,634,094

1,306,073

1,113,720

1,035,957

955,450

594,540

589,230

513,462

467,759

9,015,141

Ryanair

Lufthansa

easyJet

Air France

British Airways

SAS

KLM Royal Dutch Airlines

Norwegian Air Shuttle

Alitalia

Other

36 In Western Europe, Ryanair Transports Most To/From/Within



No. LCC Passenger Trips Annually

250M

173M

117M

Asi

a

Nor

th A

mer

ica

Euro

pe

250M

200M

150M

100M

50M

0

26%

All Europe

% of LCC Market Share

30

25

20

15

10

5

0

37 Sizing Up LCC in Europe

Source: European Parliamentary Research Service (2014)


Deutsche Lufthansa AG

15%

85%

21%

79%

8%

92%

I.A.G Air France - KLM

Mainline Seat Share

Low-Cost Seat Share

38 European Airline Groups Get into the LCC Sector

Source: OAG (2015)


Emirates-February

2.0

1.5

1.0

2010 2011 2012 2013 2014 2015

Etihad Airways-February

2010 2011 2012 2013 2014 2015

.10

1.0

Qatar Airways-February

2010 2011 2012 2013 2014 2015

3.0

2.5

2.0

1.5

1.0

39 Middle-East Based Carriers Are Expanding European Seat-Capacity Share

Source: OAG (2015)

2.5

2.0

1.5

1.0

THE EUROPEAN

HOSPITALITY

SECTOR


Year-Over-Year % Growth (2013-2014) with an Occupancy of +2.1%

ADR

USD +2.8% +5.0%

EUR +3.6% +5.8%

GBP -2.3% -0.2%

RevPAR

40 Post-Recession: European Hotels are Recovering

Source: Hotel News Now/HNN Newswire (2015)


+9.7%

Serb

ia

Net

herl

ands

Port

ugal

Latv

ia

Spai

n

+9.8%+9.9%+10%

+12%12

10

8

6

4

2

0

41 Spain Leads Europe in Visitor Nights by Select Destinations (% Growth 2013–14)

Source: ETC (2014)


RevPAR Growth Rates by City (2015)

5.2% London

Dublin

Lisbon

Prague

Edinburgh

Moscow

Zurich

Frankfurt

Paris

Rome

Berlin

Barcelona

Milan

Brussels

Vienna

Amsterdam

Geneva

Madrid

0 1 2 3 4 5 6

3.8%

3.4%

3.2%

2.8%

2.8%

2.7%

2.6%

2.4%

2.0%

1.8%

1.7%

1.3%

1.2%

1.2%

1.1%

0.4%

-1.6%

42 Europe’s Hotels: London and Dublin Lead RevPAR Growth Projections (2015)

Source: PWC (2014)


Occupancy Rates

83%

82.9%

82%

79.5%

75.5%

73%

73%

72.1%

71.7%

70.1%

69.2%

69.1%

67.4%

67.3%

67.2%

66.6%

65%

62.6%

Edinburgh

London

Paris

Dublin

Amsterdam

Berlin

Zurich

Barcelona

Vienna

Prague

Frankfurt

Moscow

Lisbon

Brussels

Rome

Geneva

Milan

Madrid

0 20 40 60 80 100

43 Edinburgh, London, Paris: Occupancy-Rate Projection Leaders

Source: PWC (2014)


0 50 100 150 200 250

ADR 2015

€ 227.6

€ 199.0

€ 172.3

€ 158.5

€ 146.8

€ 133.7

€ 128.5

€ 125.9

€ 121.2

€ 119.7

€ 111.3

€ 96.7

€ 96.5

€ 94.8

€ 91.5

€ 85.2

€ 77.2

€ 70.5

Geneva

Zurich

London

Paris

Rome

Moscow

Milan

Frankfurt

Amsterdam

Barcelona

Brussels

Vienna

Dublin

Edinburgh

Berlin

Lisbon

Madrid

Prague

44 Geneva and Zurich: Top 2 Earners (ADR 2015 Projections)

Source: PWC (2014)


Rooms

Accor 260,000

90,000

85,000

70,000

55,000 +6.2%

-3.0%

-1.1%

+1.3%

+1.6%

Best Western

IHG

Louvre Hotel Group

Whitbread

% of Change(2013-2014) Rooms

Carlson RezidorHotel Group

HiltonWorldwide

Melia HotelsInternational

NH Hoteles

MarriottInternational 45,000

50,000

50,000

53,000

54,000

+4.0%

-2.7%

+1.4%

+6.2%

+0.5%

% of Change(2013-2014)

45 Top 10 Hotel Groups in Europe by Number of Rooms

Source: Hospitality On (2014)


European Hotel Transactions Volume

€ 14.4B

€ 7.74B

15

12

9

6

3

0

20142013

• European Hotel Transactions Volume increased by 86% from 2013 to 2014.

• Top Three European Markets for Hotel Transactions are U.K., Germany, France.

• Percentage of Total 2014 Transactions Represented: 59%

46 New Investments: Hotel Transactions Reach Post-Recession Record

Source: HVS (2015)

CRUISES:

EUROPEAN INDUSTRY

EXPAND TO MEET DEMAND


• No. of Europe-Based Cruise Lines: 43

• No. of Europe-Based Cruise-Line Ships Operating: 125

• No. of non-European Cruise Lines Operating in European Waters: 24

• No. of Europeans Who Are Active Cruise Ship Passengers: 6.4M

• Euros Spent on Cruises in Europe: 4.03B

• % of Global Cruise Spending Enacted in Europe: 25%

47 The Scale and Scope of Europe’s Cruise Industry

Source: ThisisMoney.co.uk (2014)


Rest of the world

Canada

Europe

United States

Global Source Markets by Cruise Passengers

10.9

3.20.8

6.4

48 Most European Cruise Passengers Come from U.S.

Source: CLIA (2014)


Avg. No of Cruise-Ship Passengers

3,000

400-600

1980s

3000

2000

1000

0

2010s

• Over 30 years the Percentage of Increase was 500%

49 Average No. of Passengers Aboard Ships Up 500%

Source: Reuters (2014)


Cruise-ShipsOrders

2014 6

7

10

4 12,989

26,046

18,930

18,196 € 2,836

€ 3,142

€ 4,393

€ 2,337

2015

2016

2017

BerthsRepresented

Investment Represented

(Millions)

50 More Ships, More Berths: European Cruise Fleets Are Expanding

Source: CLIA (2014)


€ 4,571

Cruise Industry Direct Spend by Country (Millions)

€ 3,125

€ 3,060

€ 1,226

€ 1,076

€ 606

€ 574

€ 518

€ 357

€ 223

€ 854

0 1000 2000 3000 4000 5000

Italy

United Kingdom

Germany

Spain

France

Norway

Greece

Finland

Netherlands

Denmark

Rest of Europe

51 Italy is at the Front of Cruise-Industry Investment

Source: CLIA (2014)


Global Cruise Destinations by Deployment

3.3%

37.3%Caribbean

South AmericaAsia

Alaska

Australia &New Zealand

Northern Europe

Mediterranean18.9%

11.1%

5.9%

4.5%

4.4%

52 European Cruise Destinations in a Global Context

Source: Cruising.org (2014)


53 Spain and U.K. Lead Cruise Ports in Revenue Passengers

Top 5 Northern EuropeTotal Revenue Passengers in Thousands

(Embark + Debark + Port Call)

Top 5 MediterraneanTotal Revenue Passengers in Thousands

(Embark + Debark + Port Call)

1646

800

558 552 524

St. P

eter

sbur

g, R

ussi

a

Ham

burg

, Ger

man

y

Lisb

on, S

pain

Cop

enha

gen,

Den

mar

k

Sout

hham

pton

, UK

25992538

1815

13031246

Palm

Maj

orca

, Spa

in

Pira

eus,

Gre

ece

Veni

ce, I

taly

Civ

itave

cchi

a, It

aly

Bar

celo

na, S

pain

Source: CLIA (2014)


54 The Rise of the European River Cruise

• No. of New River Vessels Added to Cruise Lines (2012–15): 50+

• No. of New River Vessels Expected in 2015: ~20

• European River-Cruise Ship Additions by Brand and Primary Cruise Locations (2015):

APT: +2 (France and Portugal)

Avalon Waterways: +2 (France)

CroisiEurope: +3 (France)

Scenic Tours: +2 (Germany)

Uniworld: +1 (Germany)

Viking River Cruises: +10 (Germany)

Source: The Independent (2015)

EUROPE'S MUSEUMS,

ATTRACTIONS, CULTURE,

AND HERITAGE


55 Globally, European Museums Account for Half of Top 10 (by Visitors)

10

8

6

4

2

0

9.33M

8M

7.45M6.97M

6.7M6.28M

6.03M

5.45M 5.25M5M

Louvre (PAID)Paris

National Museum of Natural History (FREE)Washington D.C.

National Museum of China (FREE)Beijing

National Air and Space Museum (FREE)Washington D.C.

British Museum (FREE)London

The Metropolitan Museum of Art (PAID/SCALE)New York

National Gallery (FREE)London

Vatican Museums (PAID)Vatican

Natural History Museum (FREE)London

American Museum of Natural History (FREE) New York

Source: Themed Entertainment Association (2014)


56 London and Paris Dominate Top 10 European Museums (by Visitors)

Change

-4.0%9.33M9.72MLouvre, Paris, France (PAID)

British Museum, London, UK (FREE)

National Gallery, London, UK (FREE)

Vatican Museums, Vatican (PAID)

National History Museum, London, UK (FREE)

Tate Modern, London, UK (FREE)

Centre Pompidou, Paris, France (PAID)

Musee D’Orsay, Paris, France (PAID)

Science Museum (South Kensington), London, UK (FREE)

Victoria & Albert Museum, London, UK (FREE)

5.57M

5.16M

5.06M

4.93M

5.31M

3.8M

3.57M

2.99M

3.23M

6.7M

6.03M

5.45M

5.25M

4.88M

3.74M

3.48M

3.31M

3.29M

+20.2%

+16.8%

+7.8%

+6.4%

-8.2%

-1.4%

-2.7%

+10.9%

+1.8%

20142013



57 England and France Lead Top 20 European Theme/Amusement Parks

12

10

8

6

4

2

0

10.43M

4.9M 4.47

M 4.2M

4.15M

3.4M

2.86M 2.7

M 2.5M 2.05

M2.0M 1.8

M1.75

M1.74M

1.62M

1.5M

1.5M

1.46M

1.4M

1.37M

Duinrell/Attraktiepark in Netherlands

Heide Park in Soltau, Germany

Futuroscope in Jaunay-Clan, France

Chessington World of Adventures in Chessington, U.K.

Gronalund in Stockholm, Sweden

Parc Asterix in Plailly, France

Puy Du Fou in Les Epesses, France

Phantasialand in Bruhl, Germany

Legoland Billund in Billund, Denmark

Thorpe Park in Chertsey, England

Legoland Windsor in Windsor, England

Alton Towers in Staffordshire, England

Gardaland in Castelnuovo del Garda, Italy

Liseberg in Gothenburg, Sweden

Portaventura in Salou, Spain

De Efteling in Kaatsheuvel, Netherlands

Tivoli Gardens Copenhagen, Denmark

Walt Disney Studios Park at Disneyland Paris in Marne-La-Vallee, France

Europa Park in Rust, Germany

Disneyland Park at Disneyland Paris in Marne-La-Vallee, France



58 Regional Lens: U.K. Attractions% Increase of Visitors to U.K. Attractions (2014): +6.5%

Change (2013-14)

0%

+6%

N/A

N/A+1%

+1%

+6%

+3%

-3%

+18%

8M6M4M2M0

6.69M

6.41M

6.25M

5.78M

5.38M

3.35M

3.18M

3.07M

2.46M

2.41M

British MuseumBritish Museum

The National Gallery

The National Gallery

SouthBank Centre

SouthBank Centre

Tate Modern

Tate Modern

Natural History Museum

Natural History Museum

Science Museum

Science Museum

V&A South Kensington

V&A South Kensington

Somerset House

Somerset House

Tower of London

Tower of London

The Library of Birmingham

The Library of Birmingham

Source: ALVA (2015)


59 European Cultural Tourism: The Big Picture

Source: European Commission (2015); International Institute for Gastronomy (2014)

100

80

60

40

20

0

40%

90%

% of European Cultural Tourism in Rural Areas

% of All European Tourism for which Cultural/Heritage Tourism Accounts


60 U.S. Visitors to Europe Lean into Culture and Heritage

• Ratio of Post-Trip U.S. Visitors to Europe Who Recommend Food, Cultural Di-

versity, and Historical Heritage: 8 in 10

• Ratio of Post-Trip European Visitors to U.S. Who Recommend Shopping and

Theme Parks: 8 in 10

Source: TCI Research (2014)


Asked about in-trip activities, the following percentages of U.K. travelers indicated interests as follows (in connection with sample European countries). 61 Traveler Snapshots: U.K. Visitors in Europe

80

60

40

20

0

71%

71% 67

%

59% 58

%

63%

67%

60%

50%

52%

Car T

rave

l (Re

ntal

)

Fully

Gui

ded

Tour

Trai

n Tr

avel

Big

City

Coun

trysi

de

Day

Trip

s

Plan

ned

Itine

rary

Fam

ous

Attra

ctio

ns

Off

Beat

en T

rack

Food

and

Drin

k

Italy80

60

40

20

0

67% 64

% 63%

40%

65%

67% 66

%

44%

39%

53%

Car T

rave

l (Re

ntal

)

Fully

Gui

ded

Tour

Trai

n Tr

avel

Big

City

Coun

trysi

de

Day

Trip

s

Plan

ned

Itine

rary

Fam

ous

Attra

ctio

ns

Off

Beat

en T

rack

Food

and

Drin

k

Germany

80

60

40

20

0

70% 67

%61%

50% 46

%

73% 71

%

58%

44%

48%

Car T

rave

l (Re

ntal

)

Fully

Gui

ded

Tour

Trai

n Tr

avel

Big

City

Coun

trysi

de

Day

Trip

s

Plan

ned

Itine

rary

Fam

ous

Attra

ctio

ns

Off

Beat

en T

rack

Food

and

Drin

k

Spain

80

60

40

20

0

66%

69%

69%

52%

61%

68%

74%

50%

45%

54%

Car T

rave

l (Re

ntal

)

Fully

Gui

ded

Tour

Trai

n Tr

avel

Big

City

Coun

trysi

de

Day

Trip

s

Plan

ned

Itine

rary

Fam

ous

Attra

ctio

ns

Off

Beat

en T

rack

Food

and

Drin

k

France

80

60

40

20

0

74% 70

%

76%

59%

60%

52%

67%

49%

54% 52

%

Car T

rave

l (Re

ntal

)

Fully

Gui

ded

Tour

Trai

n Tr

avel

Big

City

Coun

trysi

de

Day

Trip

s

Plan

ned

Itine

rary

Fam

ous

Attra

ctio

ns

Off

Beat

en T

rack

Food

and

Drin

k

Poland80

60

40

20

0

77% 74

%

62%

43%

64%

71% 69

%

57%

46%

58%

Car T

rave

l (Re

ntal

)

Fully

Gui

ded

Tour

Trai

n Tr

avel

Big

City

Coun

trysi

de

Day

Trip

s

Plan

ned

Itine

rary

Fam

ous

Attra

ctio

ns

Off

Beat

en T

rack

Food

and

Drin

k

Sweden

Source: Visit Britain (2015)

EUROPEAN DEMOGRAPHICS:

MILLENNIALS, GEN-X, BOOMERS,

AND MORE


62 Globally, European Travel Dominates Millennial Destinations

Top 10 Millennial Destinations

20%

8%Indonesia

United StatesGermany

Spain

China

Thailand

FranceUnited Kingdom

Italy

Japan

10%

11%

11%

12%

12%13%

13%

14%

Source: TripAdvisor (2014)


63 U.S. Millennial Travelers Leaning Toward Europe

U.S. Travelers Anticipating European Trips (2014-16)

48%50%

MillennialsBaby Boomers

Source: Travel Weekly (2014)


64 Gen X: Travel-Market Opportunity for European Destinations

% Gen X PlanningTravel for Pleasure

60%All

65%

54%Mass Market

(<$250K Annual)

Upscale(>$250K Annual)

Source: Travel Agent Central (2014)


65 U.S. Baby Boomers/Seniors Aim for Europe

• 97% of travelers ages 50+ are planning to take at least one trip in 2015.

• 45% of travelers ages 50+ are planning to take at least one international trip in 2015.

2015 International Destinations (Ages 50+)

36%

27%

12%14%

6% 6%5% 5%

4%3% 3% 3% 3%

2%

40

35

30

25

20

15

10

5

0

Cruise

Germany

South Pacific

Canada

Mexico

Jamaica

Aruba

Europe

Carbbean/South America

Asia/Middle East

Other

Italy

Great Britain

France

Source: AARP (2015)


66 Understanding the European Solo Traveler: Female, Boomer/Senior

• % Increase: Solo Travelers (2011–14, SITA World Tours Stats): 64%

• % of Solo Travelers Who Are Female (A&K Survey): 70%

• % of Female Solo Travelers Ages 55–69 (A&K Survey): 50%+

“Solo travelers gravitate more toward exotics and off-the-beaten-path Europe, because people want to be in a group

environment when going to those types of places.”

— Jennifer Halboth, director of channel marketing for the Globus Family of Brands.

Source: Travel Market Report (2014)


67 Europe Leads Top 10 International Destinations for LGBTQ Travel in 2015

Change

1. United States

2. France

3. Australia

4. United Kingdom

5. Canada

6. Germany

7. Italy

8. Spain

9. Greece

10. New Zealand

Rank

1 0

2 0

7 +4

4 0

8 +3

6 0

5 -2

3 -5

N/A N/A

N/A N/A

Source: Hospitality Trends (2014)

2011

2011

2011

2011

2011

2011

2011

2011

2011

2011


68 Top 10 European Destinations for LGBTQ Travel in 2015

Change

1. Amsterdam

2. London

3. Paris

4. Berlin

5. Barcelona

6. Rome

7. Madrid

8. Venice

9. Athens

10. Edinburgh

Rank

3 +2

2 0

1 -2

6 +2

4 -1

5 -1

7 0

8 0

N/A N/A

N/A N/A

Source: Hospitality Trends (2014)

2011

2011

2011

2011

2011

2011

2011

2011

2011

2011

THE

CHINESE TRAVELER

IN EUROPE


69 Snapshot: The Chinese Traveler

Avg. No. of International Trips in the Past 5 Years

% Outbound Chinese Travelers

• 70% of Chinese travelers visit Europe in groups

• The estimated tourism spend of Chinese travelers by 2016 will be $194B.

5

4

3

2

1

0

3.53

4.67

20142013

65%

15% 20% 45+

25-44

<25

Source: Hotel.com (2014); American Journal of Tourism Management (2014)


70 Chinese Travelers Flying Farther, Long-Haul Will Follow

Total Chinese Outbound Travel Spending (USD)

Emerging Europe

Western Europe

29B

3B

2013 2023

8B 8B

30

25

20

15

10

5

0

Source: IHG (2015)


71 Europe Dominates Growth in Top-10 Long-Haul Destinations

Absolute Growth (2013-2023)

3.43M United States

1.22M France

909K Germany

541K Russia

474K Switzerland

377K Austria

359K Italy

343K Belgium

322K Netherlands

299K United Kingdom

3.5M2.5M1.5M500K0

Source: IHG (2015)


72 Chinese Travelers Adopting Online Bookings

% of Chinese Int’l Travelers Booking HotelAccomodations via Web/Mobile Apps

53%

Source: OAG (2014)


73 Chinese Tourists Driving Occupancy at European Hotels

% European Hoteliers Who Say Chinese Guests Account for 6%-10%

of All Business

50

40

30

20

10

0

36%

43%

20142013

% Increase of Chinese Guests at European Hotels

% Increase European Hoteliers Expect Over Next 1-3 Years

100

75

50

25

08%

Source: Chinese International Travel Monitor (2014)

44% 1-10%

11-25%

26-50%

28%

12%


74 European Hotels are Still Only Modestly Investing in Chinese Tourists

% European Hotels Globally Investing up to 10K (USD) in Chinese-guest Services (2013-14)

% Hotels Globally Investing up to 10K (USD) in Chinese-guest Services (2013-14)

46% 50%



75 Chinese Travelers Increasingly Handle their Own Int’l Trip Arrangements

• % Chinese Int’l Travelers Preferring to Make Own Arrangements: 2013: 62% ; 2014: 67%

• % Chinese Int’l Traveler Booking Independently at European Hotels: 65%



76 Chinese Tourists Choose Western & Central/Eastern Europe (2014–16)

20

15

10

5

0

17%

14%

16.9%

13%

1% 1.3%

13%

16.8%

1.2%

2.3%

1% 1%

2014 (est.) 2015 (est.) 2016 (est.)

Northern Europe

Western Europe

Southern Europe

Central/Eastern Europe

Source: ETC: European Tourism 2014 - Trends and Prospects (Q4/2014)


77 The Chinese Traveler in Europe: Top Growth: Arrivals (2013–23)

400

350

300

250

200

150

100

50

0

358350 346 339

210

188

143130

119108 107 104 99

90 84

Pado

va

Trev

iso

Zuric

h Re

gion

Mun

ich

Tyro

l

Ista

nbul

Vien

na

Lond

on

Fran

kfur

t

Luce

rn/L

ake

Luce

rn

Paris

Flor

ence

Rom

e

Mila

n

Veni

ce

— Thousands of Arrivals

Source: IHG (2015)


78 Latvia and Greece Top Chinese Visitor Volume Growth (2013–14)

+109.5% +107.2%

+59.7%

+51.2% +49%

Icel

and

Esto

nia

Serb

ia

Gre

ece

Latv

ia

120

100

80

60

40

20

0

Source: ETC (2014)


79 Europe on the Wishlist, But Chinese Travelers Often End Up Elsewhere

— Europe accounts for 40% of the Chinese traveler’s wishlist of places to visit.

— However, Europe accounts for 30% of the destinations to which Chinese travelers actually go.

• No. of European Destinations on Chinese Travelers’ Top 10 Wishlist: 4

Destinations Cited: France ; Switzerland ; United Kingdom ; Germany

• No. of European Destinations on Chinese Travelers’ Actually-Visited List: 3

Destinations Visited: France ; United Kingdom ; Italy



80 Chinese Travelers to Europe Combine Business and Leisure

% Chinese Travelers Abroad % Chinese Guests Combining Business and Leisure

30%

20%

22%

24%

17%

30

25

20

15

10

5

0

2013 2014

APAC

North America

Europe


Leisure97%

49%Business/Education

EUROPEAN

BUSINESS TRAVEL

IN 2015


81 European Destinations Account for Nearly 1/2 of Top 5 Business Travel Spots

Top 5 Business Traveler Destinations(Business/Leisure Purposes)

25

20

15

10

5

0

25%

15% 15%14% 14%

Uni

ted

Kin

gdom

Japa

n

Ital

y

Fran

ce

Uni

ted

Stat

es

Source: TripAdvisor (2014)


82 European Business Travel Spend is Up in 5 Key Markets

60

50

40

30

20

10

2010 2011 2012 2013 2014

$48.06B

$38.69B

$35.65B

$34.3B

$19.94B $19.42B$17.99B $17B $17.05B

$35.32B

$32.57B

$30B$31.68B

$36.49B $35.68B $35B$35.78B

$40.16B $40.63B $41B$42.45B

$49.98B $50.52B

$54B$56.28B

Italy

Spain

France

Germany

United Kingdom

Source: Statista (2014)


83 European Business Travel Expected to Grow in 2015

Business Travel Growth (2015)

+10.6%Germany

United Kingdom

France

Spain

Italy

+5.1%

+5.5%

+5.0%

+2.8%

0 2 4 6 8 10 12

Source: GBTA (2014)


84 European Companies are Promoting Sustainable Business Travel

% European Travel Manager Citing Sustainable Business Travel as More

Important in 2015 than in 2013

% European Companies Considering Environmental Impact to be Important to Very Important

Chief Reasons European Companies Creating Sustainable Business

Travel Investments

52%

44%

44%

Rail Use

Car Rental

71% 74%Long-Term Cost Savings

Safety & Security

Source: Hospitality Net

THE

SHARING

ECONOMY


85 The Sharing Economy Worth Billions in European Sector


Estimated Revenue from Share Economy to European Users: $3.5B

Value of Private Travel Accommodation in Europe (by 2017): $15.4B


86 Europe’s Travelers Are Staying in Private Accommodations

17%

0 40302010

39%

39%

36%United Kingdom

Germany

France

United States



87 European Cities Launch and Support Sharing Platforms (But Some Resist)

— Ex. Amsterdam Sharing City

— Ex. Smart Milano: Milano Sharing City: Consultaziane Pubblica

— The U.K. government recently commissioned an independent sharing economy review with the goal of

making the U.K. Europe’s sharing capital.

— Portugal passed new rental laws favorable to Airbnb and local rivals.

— Some cities — for example, Barcelona — are resisting sharing economy initiatives along regulatory lines.

It fined Airbnb €30,000 for violating Catalonia’s rental rules.

— Germany lifted its ban on Uber in September 2014, but pushback and lawsuits continue.

Source: European Commission (2014); World Economic Forum (2015); New York Times; Bloomberg Business (2015)


88 Snapshots: European Car Sharing is Driving Volume

5M

1M

>5M

850K

No. of Paris-based BlaBlaCar members

No. of BlaBlaCar Passengers (Monthly)

No. of Germany-based Carpooling.com members

No. of Monthly Eurostar Train Passengers


THE

EUROPEAN TRAVEL

START-UP


89 European Travel Startups Account for 26.7% of European Startup Cos.

European Startups

European Travel Startups

1500

1200

900

600

300

0

1488

398



90 U.K. Travel Startups Equal 1/4 of European Travel Startup Cos.

100

80

60

40

20

0

97

78

40

30

23

18

38

20

30

17

25

8

2117

1210 9 9 9 8 7 6 6 6

4

Uni

ted

King

dom

Net

herla

nds

Lond

on

Amst

erda

m

Russ

ia

Ukr

aine

Mos

cow

Gre

ece

Fran

ce

Switz

erla

ndParis

Irela

nd

Ger

man

y

Turk

ey

Berli

n

Finl

and

Spai

n

Pola

nd

Barc

elon

a

Portu

gal

Italy

Esto

nia

Mila

n

Czec

h Re

publ

ic

Latv

ia



91 Total Travel Startup Funding (USD, 2014–15)

The Year to Date total of 2014-2015 is 586.14 Million.

200

150

100

50

0

81.16M

52.74M

175.69M 171.71M

104.84M

Q12014

Q22014

Q32014

Q42014

Q12015

Source: CBINSIGHTS (2015)


92 Top 10 Well-Funded European Travel Startups

1. Trainline.com: Total Funding Raised (USD): $298.69M ; VC Backed: 0 ; Last Funded: September 2013 ; Exit Date: January 2015 (Acq-Fin - II)

2. BlaBlaCar: Total Funding Raised (USD): $221.7M ; VC Backed: 1 ; Last Funded: July 2014 ; Exit Date: NA

3. Momondo Group: Total Funding Raised (USD): $138M ; VC Backed: 0 ; Last Funded: October 2014 ; Exit Date: NA

4. Hailo: Total Funding Raised (USD): $127.05M ; VC Backed: 1 ; Last Funded: January 2014 ; Exit Date: NA

5. Wimdu: Total Funding Raised (USD): $90M ; VC Backed: 0 ; Last Funded: July 2011 ; Exit Date: NA

6. Sykes Cottages: Total Funding Raised (USD): $82M ; VC Backed: 0 ; Last Funded: January 2015; Exit Date: NA

7. Go Euro: Total Funding Raised (USD): $62M ; VC Backed: 1 ; Last Funded: August 2014 ; Exit Date: NA

8. HouseTrip: Total Funding Raised (USD): $59.7M ; VC Backed: 1 ; Last Funded: October 2012 ; Exit Date: NA

9. Get Your Guide: Total Funding Raised (USD): $57.5M ; VC Backed: 1 ; Last Funded: July 2014 ; Exit Date: NA

10. NETVACATION: Total Funding Raised (USD): $49.8M ; VC Backed: 1 ; Last Funded: November 2014 ; Exit Date: NA

Source: CBINSIGHTS (2015)

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