Background Knowledge

The European Economy

• Although there is uncertainty across Europe on the financial markets, with the recent interest rate cuts from the world’s key central banks, the mood seems to have calmed

• With European equity markets bouncing back, there is some sense of normality

• Consumer confidence is slowly returning

Credit Crunch – What Credit Crunch?

“ We may be panicking about our mortgage, trading down at restaurants restaurants and fighting over our fuel bills, but however tough things get, we still wont give up our annual holiday.”

• Mail on Sunday 5th October 08

“The prospect recession grips everyone with a feeling of doom and gloom, but Brits have a tendency to embrace holidays as a cure to darker moods”

• The Times October 08

Holidays will be one of last things that people are willing to cut from their

expenditure, They are a necessity rather than a

optional requirement

European Audience

• There are over 3 million millionaires across Europe

• In Britain alone 1.6 million people have a disposable incomeover £100,000 per year

• Over five million people in the UK have a salary of more than£50,000 per annum

• In 2006 there were 28,000 Ultra Net Worth individuals worth morethan £18 million each

Luxury Travel

• The biggest growing market in travel with a growth rate of 50% per annum• The global luxury travel industry now comprises an estimated 25 million

annual arrivals accounting for 25% of international tourism spend• 390 million trips taken in 2007 by Europeans• Spending £300 billion • Average spend £7,500 per holiday

Bookings are still extremely strong for 2008 and the outlook for 2009 is very favourable for all markets

Opportunities

• The UK and European markets are fully aware of the weakeningdollar exchange rate

• Travellers are therefore planning to travel outside the euro zoneto beat the currency exchange

• People looking for value for money destinations• Desire for new experiences /destinations• European travellers now taking one main long-haul holiday• Increase of 4% annually in long-haul travel • Increase in spend on high-end accommodation and localised activities • Average stay increasing to 11 nights

Europe vUSA

Europe• Population of 728 million• Over 80% of Europeans own

a passport• 389 million Europeans will

travel overseas• Europe generates over 56%

of the 639 million outbound trips taken worldwide

USA• Population of 301 million• 20% of Americans own

a passport• 25.1 million Americans

will travel overseas• USA generates 24% of

outbound trips taken worldwide

Visitor arrivals into the Caribbean 2007

European Arrivals

• Anguilla 10,795• Antigua 115,448• Barbados 252,782• Caymans 20,267• Curacao 121,427• Grenada 41,792• Jamaica 288,894• Saint Lucia 88,828• Trinidad 60,846

• UK Arrivals

• 4,568• 97,000• 223,906• 15,206• 2,801• 33,827• 185,657• 79,180• 43,738

Total Worldwide Arrivals - BVI 247,964 (2006) No breakdown of markets

Airlift Overview

• All non direct flights to Antigua or San Juan• Average of 2 stops• Flight times- 23 to 33 hours to San Juan or 19 to 33 hours to Antigua • Italy – British Airways, American Airlines, Delta Airlines, US Airways,

Condor Air from Rome, Venice, Naples and Milan • France – British Airways, Condor Air, Delta Airlines, American Airlines

and Continental Airlines from Toulouse and Paris• Scandinavia – SAS, American Airlines, British Airways, Virgin Atlantic,

Condor Air from Copenhagen, Oslo and Helsinki Continental Airlinesand Delta Airlines from Stockholm

• Delta and American Airlines from Prague, American Airlines via Budapest, Delta Airlines, American Airlines and Air Berlin from Warsaw

Italian Travel Trends

• World’s 8th largest economy and 4th within Europe• One of the Europe’s fastest growing markets in 2006, up 7%• Key motivators include beach, spas, good quality hotels & culture • Shift towards travel between October to December• Tend to book their holidays 4 months in advance • Increase in purchasing holidays using the internet

Italian Travel Trends cont.

• Italians receive 4 to 6 weeks annual leave entitlement• Tend to fall into 25 to 55 year old age range • Average expenditure per trip is Euro 1460• Average duration of stay is 9 nights• The Northern regions of Italy generate the most outbound travel

as they are the most industrialisedand affluent regions

French Travel Trends

• World’s 5th top market in terms of international spend• 20% increase in Long Haul holidays last year• French demand more personalised travel according to their particular

lifestyles and values• One in every five Euros spent online is booking travel• Key motivators include good weather, culture, high quality hotels• Luxury Travel doubled in 2007

French Travel Trends cont.

• Five to six weeks annual leave entitlement• Average holiday duration is 10 nights• The French tend to travel between May and August• 53% tend to book their long haul travel in advance, usually after New Year• 21% will book their travel online• Travel agents are still an important method of booking and source

of recommendation

Scandinavian Travel Trends

• Currently one of Europe’s largest source markets to Southeast Asia representing over one million travellers per year to the region

• Desire for new experiential/eco friendly destinations• Tend to be from major urban cities• Relaxation and the beach are the key reasons for taking a holiday • Very environmentally conscious, highly independent and experienced

travellers• Expect value for money and have very high expectations of standards

for accommodation and attractions

Scandinavian Travel Trends cont.

• Receive four to six weeks annual leave entitlement• Average duration of stay is 9 nights• Tend to travel from May to September• Most holidays are researched and booked online although the travel trade

still plays an important role

Czech Republic, Hungary and Poland Travel Trends

• Now established members of the EU, outbound travel has been increasing due to the greater freedom offered by EU membership - Poland (17%), Czech Republic (7%) and Hungary (5%)

• Poland is the 23rd largest economy in the world and the 6th in Europe • Beach destinations remain the most popular type of holiday• Residents of the major urban areas and the more affluent tend to travel

Czech Republic, Hungary and Poland Travel Trends cont.

• Average duration of stay is 10 nights• The peak time for holidays is July and August, although the shoulder

months of May, June and September are gaining popularity• Over 50% of Eastern Europeans use the internet to plan and book

their travel

Key Trade Shows in Europe

• Holiday World, Prague - Central Europe’s premier Tourism event is held at InchebaExpo Prague Exhibition Grounds over 5 to 8February

• ITB (International Tourism Bourse), Berlin – the world’s largest travel trade show, held at the fairgrounds of MesseBerlin over 11 to 15 March

• Top Resa , Paris – the key meeting place for tourism and travel professionals, held at Porte de Versailles over 22 – 25 September

• WTM, London – the second largest trade show, held at Excelover 9 – 12 November

• International Luxury Travel Market, Cannes – the leading annual trade event for the global luxury travel community, held at Palais des Festivalsde Cannes in December

Key Consumer Shows in Europe

• London International Boat Show, London– celebrates it’s 55th anniversary in 2009, held at Excel over 9 - 18 January

• Vakantiebeurs, Netherlands– regarded as the top trade and consumer travel fair in the Netherlands – attracts over 135,768 visitors. Held in Utrecht over 14 -18 January

• Holiday & Travel Show, UK– the UK’s leading holiday and travel exhibition attracts over 120,000 visitors. Held at Manchester Central (16 - 18 Jan) and Glasgow’s SECC (13 - 15 Feb)

• FITUR 2009 , Spain – is Spain’s premier travel and tourism fair.  It is also the third largest in Europe after ITB and WTM, attracting some 150,000 professional visitors every year. Held in Madrid over Jan 28 to February 1  

Key Consumer Shows in Europe

• Destinations UK - Held at Earls Court, London over 5 to 8 Februaryand Birmingham’s NEC from 27 Feb to 1 March

• National Wedding Show, UK – the UK’s biggest “wedding department store” held at Olympia over 22 - 24 February

• LIDS 2009 (London International Dive Show), UK – over 13,611 visitors, held at Excel over 28 - 29 March

• Holiday World Dublin – Trade and Consumer Show, leading Irish Holiday show in excess of 58,000 visitors. Held at RDS over 23 - 25 January 

• TT Warsaw Tour & Travel – second largest international travel and tourism show in Poland held over 24 – 26 September