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GERMANY & VISITBRITAIN CAMPAIGNS

Holger Lenz, Manager Central Europe 2nd November 2016

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Key UK inbound market facts

3,249,000'Visits'

9.0%'To'UK:'%,'rank'

£1,378,000'Spending'

To'UK:'%,'rank'

3rd''

6.2%' 3rd''

Source: International Passenger Survey, 2015

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Context of German travel market •  In 2015 Germans took more than 97 million

trips abroad with at least one overnight, an increase of 4% YoY. This volume of outbound trips is forecast to exceed 116 million such trips by 2020. Domestic trips were 20 million in 2015

•  Germans rank globally in 3rd place for international tourism expenditure with more than US$ 77.5 in 2015 following Chinese and US travellers

•  Their most visited destination was France, followed by Austria, Spain and Italy in 2015. The UK ranked in 8th place in the same year

•  The German economy is generally speaking fairly robust and remains on track to grow at a solid pace in the near term before slowing in the medium term. The unemployment is currently on a record low and consumer spending up

Sources: Oxford Economics, UNWTO, Bank of England, FUR Reiseanalyse 2016

•  2017 is election year in Germany •  Germany is in the Eurozone. GBP has since the

EU referendum depreciated sharply against the Euro; in the month ending 31st October 2016 the cost of GBP was down 15% YoY: GBP1 = EUR1.17

•  68% of Germans think that Britain is welcoming to visitor post-Brexit, improved value is outweighing negative perception of welcome

•  Difficult year for German tour operators as classic tour operator destinations were suffering

•  Very strong bookings for „green“ destinations as they were perceived to be safe

•  Mixed year for German Britain operators •  Strong year for domestic travel

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Regional spread and journey purpose •  Regional Spread:

German %-share of nights in 2015

Sources: IPS by ONS, FUR Reiseanalyse

32%'

16%'13%'

11%'

6%'

6%'

4%'

4%'3%' 3%' 1%' 0.1%'

London' South'East' Scotland' South'West'

North'West' East'Of'England' Yorkshire' West'Midlands'

Wales' East'Midlands' North'East' Northern'Ireland'

•  London is the leading destination for nights-share for visits from Germany followed by the South East, Scotland and the South West. This is also favoured by the many regional flights.

•  Holiday visits have grown over the years, business visits are yet to recover to pre-financial crisis levels.

•  Visiting friends or relatives, cultural travel and visiting events are the most important reasons for a short trip to a Britain, outside of London.

0

500

1000

1500

2002

20

03

2004

20

05

2006

20

07

2008

20

09

2010

20

11

2012

20

13

2014

20

15

Holiday

Business

VFR

Study

Misc.

Visits from Germany by Journey Purpose (000s)

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Regional spread potential •  In which of the regions would you like to

spend a holiday in the next 5 years? (multiple choice, base: considerers)

Sources: IPS by ONS, FUR Reiseanalyse, NBI GfK 2015,

•  The South of England ranks 3rd with 26% of German considerers stating they would like to spend a holiday here in the next 5 years.

•  Holiday visits from Germany have an above average propensity to feature rural and coastal areas of Britain.

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Motivations, perceptions & activities Top Motivations for choosing Britain for a Holiday

Sources: Ipsos/VisitBritain, 2016. Visitors to Britain. Normalised data., IPS by ONS, NBI GfK 2015, FUR Reiseanalyse

44%'42%'

33%'31%' 31%'

24%'21%' 20%'

18%' 18%' 17%'16%'16%'

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

•  Germans rate Britain highly for built heritage and contemporary culture, but less so for scenic natural beauty and welcome, rated 18th and 16th out of fifty nations respectively on these two attributes in 2015.

•  A trip to Britain would be expected to be ‘educational’ but Germans are more likely than others to think it would be ‘relaxing’.

•  Britain is seen as the no.1 destination for cultural trips and study holidays.

•  Culture is the biggest draw. Countryside & natural beauty resonates mainly with the older age groups whilst the ease of planning is a top motivation for 1 in 3 18-34 year olds.

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German planning and booking behaviour •  Germans start thinking about their holidays to

Britain early, most of the visitors 6+ months before so there is often a long lead-in time which campaign activity should consider.

•  44% of visitors book 3-6 months before their trip, 15% even 6+ months before.

•  57% of visitors booked transport and accommodation combined, 42% separately.

Sources: Ipsos/VisitBritain, 2016. IPS by ONS

•  26% of holiday visits from Germany were part of a package or all-inclusive tour in 2015. The majority of holiday visits is organised independently.

57% 28%

9% 4% 1%

% Starting to think about the trip at each stage

6+ months before trip

3-6 months before

1-2 months before

A few weeks before

1 week before

15%

44%

17%

15% 4%

% Booking the trip at each stage

Base: Visitors Base: Visitors

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German booking behaviour •  How did you book your travel and

accommodation to Britain? (Visitors) •  82% of visitors who booked transport

separately booked it online, 14% face to face.

•  72% of those who booked accommodation separately booked it online, 10% face to face, 13% stayed with friends or relatives.

•  58% of those who booked transport and accommodation together booked it online, 36% face to face (e.g. travel agency) – a high proportion compared to other markets!

Sources: Ipsos/VisitBritain, 2016.

•  How did you book travel and accommodation? (All Respondents) •  The majority of respondents who booked

travel and accommodation separately booked it directly with the service provider e.g. Airline (65% and 62% respectively)

•  When they bought travel and accommodation together 75% chose to book it through a travel agent, tour operator or travel comparison website.

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Activity & Campaigns Home of Amazing Moments #OMGB • VisitBritain brand campaign with commercial partners to drive conversion

• Australia, US, GCC, India, France & Germany

• Campaign hub/website presenting unique moments and touring itineraries

• Comprehensive online and social elements

• Newspaper inserts in Germany & France to target older segments

Tuesday, 6 December 16

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Activity & Campaigns Expedia • 360 degree campaign • US, Germany & France, Spain, Italy & Netherlands

• September to March STA Travel • Digital content partnership in the US, Australia & Germany

• Music as a hook to reach Millenials • February & March 2017

Tuesday, 6 December 16

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Activity & Campaigns King Arthur Film Campaign • US, Australia Germany & France • Online & social media campaign targetting younger segments

• Global competition • February & March P&O Campaign • On- and online campaign • Germany & Netherlands • December to February

Tuesday, 6 December 16

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Activity & Campaigns esayJet Campaign • Main airline partner for Europe • Spain, Italy, France & Germany • OOH & online • easyJet channels • February & March 2017

Tuesday, 6 December 16

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Discover England Fund Projects South West Coast Path – Amazing Experiences and Making Memories Aims and objectives •  To address identified demand from overseas visitors

to improve ease of access to explore the South West Coast

How •  Creation of a range of 3, 5 and 7 day visitor

itineraries with ‘eat, drink, see, do’ options along the way

•  Supported with new digital resources, promotion on DMO and Visit England websites, attendance at Trade/Travel Shows and PR and advertising in country

Tuesday, 6 December 16

Target audience •  Free and independent traveller looking to ‘mix and

match’ itineraries and book own accommodation and travel – web sites will provide details of members in the area of the itinerary (DMOs and SWCPA)

•  Visitors looking for a single point of booking – partnership with Walking Tour Companies

•  Tour operators in Germany and the Netherlands to encourage them to promote the itineraries to their customers

Trade Shows •  Vakantie-Beurs – Utrecht, Netherlands (January) •  Fiets en Wandelbeurs – Utrecht, Netherlands

(February) •  ITB Berlin (March)

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ANY QUESTIONS?