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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%
Planning: 37% Booking: 23%
Planning: 25% Booking: 17%
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
Activities in scotland
Motivations for visiting Scotland
1. Scenery &
landscapes
Planning & Booking Tools
Planning: 77% Booking: 71%
Planning: 37% Booking: 25%
Planning: 29% Booking: 22%
Where can we find them? Demographics
Motivations (All Holidays)
See other countries
Learn the culture
Visit family/friends
9.2 Average nights per stay
£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)
Activities in scotland
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
Motivations for visiting Scotland
1. Stunning
landscapes
2. History &
CULTURE
3. Friendly
people Scotland Visit
Numbers 372,000
Nights 2.61m
Spend £285m
10.8 Average nights per stay
£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
Activities in scotland
4.4 Average number of regions visited
Walking/ Scenery
Museums/ Castles
Food & Drink
Touring / Cities /
Cities+
Types of holiday
30 Average days paid holiday (exc. Public holidays!)
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
7.7 Average nights per stay
£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
10 Average days paid holiday (exc. Public holidays!)
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
What is it? Examples
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
What is it? Examples
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
What is it? Examples
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
Trends for Adventure Tourism
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
Trends for Adventure Tourism
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
Trends for Adventure Tourism
Trends for Adventure Tourism
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
Trends for Adventure Tourism
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