Winter 2014 Edition

Travel Market Pulse

Prepared for RSA Distribution Partners

January 10th, 2014

TABLE OF CONTENTS

MARKET TRENDS

MEDIA DIGEST

RSA TRAVEL INSURANCE IN THE NEWS

MARKET TRENDS SUMMARY

FORECASTED TRAVEL TRENDS

1. Winter 2013/2014: Nearly 13.2 million Canadians are forecast to make leisure trips outside the country during the

2013/2014 winter travel season, representing an increase of 3.1% on previous year.

2. Winter 2013/2014: Of Canadians planning to travel outside the country during this period, 51% (-7% vs. previous

year) intend to purchase travel medical insurance, the lowest percentage in Conference Board of Canada (CBoC)

surveys.

3. Winter 2013/2014: 46% of Canadians intend to book their outbound travel arrangements only 1 to 6 weeks before

their departure this winter.

TECHNOLOGY AND TRAVEL

4. Winter 2013/2014: 84% of winter travellers intend to use the internet to help them research their trip, while 68%

of winter travellers plan to actually book at least a portion of their winter trip online.

5. Winter 2013/2014: 81% of Canadians traveling outside the country this winter plan to bring some type of mobile

device (cell phone, smart phone, tablet, lap top).

Note: Conference Board of Canada Winter season is the period included between November and April

BACK TO TOP

MARKET TRENDS FACTS

FORECASTED TRAVEL TRENDS

1. Winter 2013/2014: Nearly 13.2 million Canadians are forecast to make leisure trips outside the

country during the 2013/2014 winter travel season, representing an increase of 3.1% vs. the previous

year.

1. As travel prices are growing faster than disposable incomes, only a modest growth can be expected in

outbound leisure travel this winter.

2. 8.3 million trips will be made to the US this winter (+3.7% vs. previous winter) while 4.9 million trips will be made to Non-US destinations (+2.1% vs. previous winter).

3. 63% of Canadian travellers intend to travel to the US this winter.

4. 88% of Canadians that took a vacation trip to the US last winter plan on taking another vacation to the US again this winter.

Sources: Canadian Travel Health insurance outlook Winter 2013/14, CBoC December 2013

Winter 2013/14 Travel Distribution Trends, CBoC December 2013

2. Winter 2013/2014: Of Canadians planning to travel outside the country during this period, 51% (-7%

vs. previous year) intend to purchase travel medical insurance, the lowest percentage in CBoC

surveys.

1. Approximately 6 million Canadian travellers will be covered by an individual trip emergency medical insurance

policy, purchased for their Winter 2013/2014 outbound trip.

2. It is estimated that Canadians intend to purchase a total of 3.2 million policies; a portion of these being family

plans providing coverage for multiple travellers under a single policy.

3. Of Canadians planning to travel outside the country during this period, 33% (+3% vs. previous year) intend to

purchase trip cancellation coverage and 14% (-9% vs. previous year) intend to purchase lost baggage insurance.

Source: Canadian Travel Health insurance outlook Winter 2013/14, CBoC December 2013

Did you know?

Airline travel is the preferred method

of transportation for 63% of Canadians

when visiting Florida.

3. Winter 2013/2014: 46% of Canadians intend to book their outbound travel arrangements only 1 to 6

weeks before their departure this winter.

1. Of Canadians visiting the US, 46% indicated they are likely to make their travel arrangements 1 to 6 weeks before departure (+6% vs. Winter 2012/2013) as oppose to 47% likely to make their travel arrangements 7 weeks and more in advance (-6% vs. Winter 2012/2013).

2. Fewer Canadians are turning to travel agents for travel information or to book travel arrangements. It is estimated that only 37% of Canadians will be referring to travel agents in winter 2013-14, as opposed to 49% in winter 2012/13 and 76% in winter 2005/06.

This figure is further decreased to 28% for Canadians intending to travel to the US in winter 2013/14.

Source: Winter 2013/14 Travel Distribution Trends, CBoC December 2013

TECHNOLOGY AND TRAVEL

4. Winter 2013/2014: 84% of winter travellers intend to use the internet to help them research their

trip, while 68% of winter travellers plan to actually book at least a portion of their winter trip online.

5. Winter 2013/2014: 81% of Canadians traveling outside the country this winter plan to bring some

type of mobile device (cell phone, smart phone, tablet, lap top).

1. Of this, 66% will opt to bring a smart phone or tablet.

2. One third of Canadian travellers bringing a smart phone or tablet device on their outbound winter trip are likely

to use them to purchase something while on their trip (+5% vs. previous year).

Source: Winter 2013/14 Travel Distribution Trends, CBoC December 2013

76%

49% 37% 28%

Winter 2005/2006travellers

Winter 2012/2013travellers

Winter 2013/2014travellers

Winter 2013/2014travellers - Visiting US

Intention to use a travel agent for information and/or make arrangements

MEDIA DIGEST Click on the title for the full article

TRAVELLERS

1. Travel insurance: More than a third of Canadian travellers don't have it, THIA survey says

2. Majority of Alberta snowbirds check insurance before travel

3. No research into rewards: Canadians passive when selecting credit card programs

4. Brazil, a travel market to watch (Translated from French)

5. B.C. woman (without travel insurance) faces more than $650,000 in medical bills after serious

accident in the U.S.

6. Travel still high on retirement wish list, but becoming snowbirds is more of a myth than a reality

7. Travel insurance a must for (Canadian) students studying abroad

WORLDWIDE NEWS

8. Europe: End of holiday let? Berlin and Paris look to set to follow New York with a total ban on short

self-catering holiday accommodation

9. England: Families petition government to stop ban on term-time holidays

10. USA: Top travel insurance and assistance trends for 2014

BACK TO TOP

TRAVELLERS

1. Travel insurance: More than a third of Canadian travellers don't have it, THIA survey says (Toronto Star) Date: October 30, 2013

The survey found: The THIA says we should all be carrying travel insurance and advises travellers to check what coverage they have through employers or credit cards and to know what it is and what other coverage they may need to supplement it. The industry...

2. Majority of Alberta snowbirds check insurance before travel (Calgary Herald) Date: October 17, 2013

Not only do they need to understand exactly what their travel insurance policy covers, but they may have to review auto, recreational vehicle, and home insurance policies - for both their property down south and back home - before they travel.

3. No research into rewards: Canadians passive when selecting credit card programs (CNW Telbec) Date: Oct 10, 2013

Despite Canadians' passivity towards the type of rewards programs they belong to, 74% of Canadians cite world-wide customer service and travel insurance coverage (61%) as other important factors in a card.

4. Brazil, a market to watch (Translated from French)

(Tourism Intelligence Network) Date: Sept 16, 2013

Brazilians travel and spend more and more internationally, especially in the USA. Will Canada benefit from this development?

5. B.C. woman faces more than $650,000 in medical bills after serious accident in the U.S. (Global News) Date: November 21, 2013

A B.C. woman who survived a life-altering car accident in the U.S. is facing financial ruin because she didn't have travel insurance.

6. Travel still high on retirement wish list, but becoming snowbirds is more of a myth than a reality

(Global News) Date: November 21, 2013

While Canadians approaching retirement may think they want to spend their post-career years heading somewhere warm for the winter, the reality is that Canadians living in retirement find there's no place like home year-round.

7. Travel insurance a must for students (MSN Canada) Date: Oct 09, 2013

And though almost all of them have a full slate of health care benefits from their provincial plans while at home, once they leave the country those benefits decrease sharply.

**************************************************************************************************************

WORLDWIDE NEWS

8. Europe: End of holiday let? Berlin and Paris look to set to follow New York with a total ban on short

self-catering holiday accommodation (Mail Online) Date: Nov 18, 2013

Travellers looking to rent self-catering apartments in some of the world's most popular travel destinations could soon find themselves forced to stay in hotels as an increasing number of cities and resorts look to ban short-stay holiday rentals.

9. England: Families petition government to stop ban on term-time holidays (Mail Online) Date: Oct 30, 2013

Families stung by the rising costs of taking their children away during school holidays are calling on the government to reverse a ban on term-time breaks.

10. USA: Top travel insurance and assistance trends for 2014 (Travel Agent Central) Date: Nov 18, 2013

So as 2013 draws to a close, though, what travel protection trends do insurers see, continuing over from 2013 or newly emerging for the coming year?

RSA TRAVEL INSURANCE IN THE NEWS

CONSUMER - PAID MEDIA

1. Horizon Travel Magazine

TRADE - PAID MEDIA

2. Insurancewest

3. Canadian Insurance Top Broker

4. International Travel Insurance Journal (ITIJ)

EMPLOYEES - PAID MEDIA

5. The Record

6. La Tribune

EED MEDIA

EARNED MEDIA

7. RSA earned media on travel insurance

BACK TO TOP

CONSUMER - PAID MEDIA

Objective: Increase RSA’s brand equity for travel insurance in Ontario, the largest travel insurance

market in Canada (34%), and to support our partners’ marketing activities.

Horizon Travel Magazine

November / December 2013

Readership per edition: 163,000

(Circulation via Toronto Star in the

GTA + 10,000 via National Post in

Ottawa)

Editorial on medical expenses cost.

December 2013:

2x 10 sec spots on the TTC and 6

screens in

Union Station

(total of 11.7 million impressions)

TRADE - PAID MEDIA

Objective: Increase awareness of RSA travel insurance in the Western Canada market (total market

share of 38%) to support our partners’ marketing activities.

Insurancewest

November 2013

Travel Talk Sponsorship

Readership per edition: 36,000

Objective: Position RSA's leadership role in the travel insurance market.

Canadian Insurance Top Broker Magazine

December 2013

Pre-snowbird consumer panel on travel insurance

Readership: 71,000

Objective: Increase RSA brand equity among international travel insurance industry players and

support existing broker/partner relationship by demonstrating visibility and leadership in the market.

International Travel Insurance

Journal (ITIJ)

October and December 2013

Circulation: 20,000

EMPLOYEES - PAID MEDIA

Objective: Increase employees’ engagement, commitment to the Sherbrooke Anglophone

community, visibility for potential recruitment and communicate about the office move.

The Record

December 2013

Christmas Supplement - full back page

Circulation: 4,500

Objective: Increase employees’ engagement, commitment to the Sherbrooke Francophone

community, visibility for potential recruitment and communicate about the office move.

La Tribune

December 2013

Readership: 115,000

EARNED MEDIA

RSA earned media on travel insurance

October through December 2013

Crossing the border for Black Friday? Here’s what you need to know

(iVillage.com and ca.msn.com) Readership: 1,863,000, Date: November 2013

Black Friday is fast approaching, which means many a Canadian will soon head south of the border to nab stellar

shopping deals from mega-U.S. retailers

Holiday family travel insurance: Why everyone should be covered

(Parents Canada) Readership: 45,000, Date: Oct 19, 2013

The holidays are one of the busiest travel periods of the year. Though you may be dreaming of a relaxing getaway, planning a family vacation during this time can easily turn stressful if you're not prepared.

Are Canadians buying the right travel insurance?

(The Wakam Recorder) Readership: 4,512, Date: Oct 9, 2013

The fall and winter months mark the annual migration of Canadian snowbirds to warmer climes. When you plan your

seasonal getaway, don’t make insurance an afterthought.

I'm covered when I travel...aren't I?

(Multiple media outlets) Readership: 8,563,500, Date: November 2013 As winter sets in, many snowbirds are either eagerly awaiting their extended trips to the sunny south, or they have already embarked for places far away from the frigid Canadian winter weather.

Making winter travel plans? Tips for snowbirds and other travellers

(Multiple media outlets) Readership: 346,952, Date: October 2013

It's that time of year again when Canadian snowbirds make their plans to spend the winter in warmer locales. RSA one of Canada's leading travel insurance providers surveyed more than 2 400 Canadian travel consumers and discovered there are different categories of snowbirds with...

med i-sel ec t a d va n t a g e®

ma r k et in g c o l l a t er a l

t r a v el in su r a n c e

NEVER MISS

A CHANCE