TourismTrendSpotter

 

March 2010  

Welcome to the March 2010 TourismTrendSpotter issue. 

 

We have summarised in one place all the relevant statistics, trends and tourism insights that we monitor, research and analyse. If you have missed the other issues of TourismTrendSpotter please click here to view them. We would welcome any feedback you might have so that we can develop this newsletter into a communication you will use and value.

 

Best wishes,

Nick Truch

 

Main Sections:

 

Tourism Stats Monitor

 

Tourism News

 

Consumer Trends

 

Market Trends

 

Tourism Innovation

 

Cumbria Tourism Research

 

Contact Us

 

 

Tourism Stats Monitor

 

In total, the number of domestic overnight trips grew by 7% in the first eleven months of the year. This growth has been driven by the upsurge in "pure holiday" trips between January and November (up by +17% in the UK and +19% in England). This trend towards holidaying domestically continued in November with "pure holiday" trips up by 24% in the UK and 32% in England.

UK residents made 13% fewer trips abroad than in November 2008 and spent 13% less. From January – November 2009, trips were down by 15%, with spend down 14%.

 

Despite the disruption to travel due to snow the number of overseas residents visiting the UK was 4% higher compared with January 2009. This is also despite the weakening of the Euro and the US Dollar against the Pound in January 2010 compared to January 2009 (4% and 12% respectively). From November 2009 to January 2010, 2% more visitors came to the UK when compared to the corresponding period a year earlier.
 

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        *VFR = visiting friends and relatives

 

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Source: Visit Britain( International Passenger Survey, UK Tourism Survey) Cumbria Tourism (Occupancy Survey, Business Survey)

 
     
 

 

Tourism News

 

Leisure could be one of UK's fastest growing industries, if Government takes it seriously
Leisure business leaders have urged the Government to back Britain's £115bn tourist industry with tax breaks and fresh investment in recognition of the role it can play in kick-starting the economy.

New research by accountants Deloitte shows that tourism could be one of Britain's fastest growing industries over the next decade, with the visitor economy expected to account for 2.9m UK jobs by 2020, up 250,000 on today. That's one in 12 jobs in the UK being supported by tourism – an industry that is particularly adept at attracting workers of all skill levels. Tourism's gross value added contribution – a measure of its economic impact – is expected to rise by 3.5pc a year. That compares to 2.9pc across the total economy.

Leading business leaders are calling for a more proactive approach from the Government and more support for tourism, the fifth biggest British industry.


"We have been lumped in with sport in the Department for Culture, Media and Sport. I think tourism needs to be part of a business department.

Alan Parker, Chief Executive of Whitbread


The Chairman of VisitBritain, Christopher Rodrigues, suggests that the Treasury could make back its investment in tourism eight times over via proceeds from air passenger duty (APD) and VAT receipts alone – before even considering the spin-off benefits to other parts of the economy. He said it cost about £40 to attract a long-haul visitor, but half of that sum came from foreign carriers that matched any promotional spending by the UK Government.

"That generates £168 in VAT and APD alone. That's an eight times return on the Government's investment. If you could do a private equity deal and buy in-bound tourism revenue you would do it tomorrow."
 

"[Tourism] gives the economic return on the investment a nation makes in it's social and cultural assets. This is how we monetise all of that. In the short term, if you want to pump some adrenaline into the economy, tourism gets a lot of ticks. There is a very clear business case for a modest investment in tourism."

Christopher Rodrigues, Chairman of VisitBritain

 

Source: Mar 2010 Telegraph.co.uk

 

 

VisitEngland sets £50bn tourism target
The first strategic tourism framework to cover the next decade has been unveiled by VisitEngland. The detailed ten-year framework has been created to provide “focus and challenge” for an industry that is set to deliver an additional £50 billion in visitor spend and more than 225,000 jobs. The framework highlights action needed to maximize the tourism industry’s contribution to the economy, employment and quality of life.

 

Part of the action plan includes new events for the Cultural Olympiad around the 2012 Olympic Games in London, an online sustainability programme, a new transport partnership, research around existing quality schemes and new welcome initiatives.

The visitor economy is now worth £97billion a year, employs more than two million people and supports 150,000 businesses both directly and indirectly, according to the domestic tourist board.

“Tourism needs and indeed deserves much greater recognition for the positive impacts it brings to the economy in terms of income, skills and jobs... This framework strives for an even higher standard of quality and service so that we improve our offering, increase jobs, spend and growth and champion a competitive industry.”

James Berresford, Chief Executive of VisitEngland

 

Source: Mar 2010 TravelMole.com

 

 

Bargain-hunting Brits secure cheapest hotel deals
The average price of a hotel room was 14% lower last year than in 2008 as the recession hit rates, a new study shows.

The UK was the most expensive European destination in 2007 but by last year it dropped to 13th place, according to the latest Hotel Price Index from accommodation website Hotels.com. UK hotel prices fell on average the most of any European country - 13% - last year to £84 per room per night. This spurred an increase in domestic holidays.
 

Source: Mar 2010 TravelMole.com

 


How Cockermouth hotels are faring after the floods
It has been four months since the floods in Cockermouth, Cumbria, which caused extensive damage to more than 1,000 homes and businesses.

After enjoying its highest ever turnover - against the trend of the recession - and celebrating being upgraded by the AA from a three to a four-star property, 2009 came to an abrupt end for the Trout Hotel in Cockermouth on 19 November. The day recorded to be England's wettest day on record with rainfall of more than 300mm.

"The repair work is mammoth, but we are using the opportunity to completely review the entire business, which is something we wouldn't normally be able to do.

"We had broken our turnover target of £2m, had achieved an annual occupancy of 81% and were set to have a bumper Christmas and New Year," says Eccles. "We were lucky enough not to have been affected by the recession and were enjoying good corporate business.…We had a fantastic local food and beverage trade and on a busy day could serve around 350 meals throughout the hotel, split between the fine dining restaurant, brasserie and lounge."

Sue Eccles, Managing Director of the Trout Hotel
 

The Trout is one of several hotels throughout Cumbria that are still closed following the floods. Most, like the Trout, are working hard at turning a negative into a positive by using the period of closure to improve their properties.

At the Lakeside Hotel, Lake Windermere, the owners David Snowden and Neville Talbot have used their four-month refurbishment "to return the hotel not merely to its former glory, but to something even more glorious".

The four-star, 75-bedroom property reopened for business on 15 March with a ‘Christmas in March’ event at which guests who had their bookings cancelled were invited for a complimentary dinner and overnight stay.

The attitude of Snowden and Talbot is typical of many hoteliers throughout the Lake District who want to assure visitors that the region is almost 100% open for business again.

In the weeks following the flooding, hotels and guesthouses throughout Cumbria received huge numbers of cancellations as a result of the widespread TV coverage showing flooded properties, closed roads and collapsed bridges - many of which were not directly affected by the flooding.

Source: 19 March 2010 CatererSearch.com

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Consumer Trends

 

People Seek Diversity from UK Short Breaks

A recent online survey of 1000 UK short break holiday makers showed that people look for a range of different experiences and activities when on a short break in the UK.

 

How often do you go on

a short break in the UK each year?

 

Trend Spotted

What type of UK short breaks

have you undertaken in the last 2 years?

 

Trend Spotted

* Visiting Friends and Relatives

 

What do you consider to be the most important consideration when choosing a short break in the UK?

Trend Spotted

Survey details: 1000 UK short break holidaymakers sourced from an online panel

Source: March 2010 QA Research 'Perceptions of the NorthWest and its attack brands'

 

 

Attack Brands of the North West - Lake District proves it can perform

Perceptions research of the Northwest and its tourism attack brands has revealed the Lake District is delivering visitors short break considerations.

 

In 2005 when the research was first run 34% of those surveyed said they had visited the Lake District for a short break of the past 5 years. This figure has increased by 47%, to 50%, in 2009 when a similar representative group of 1000 people where asked in the online survey.

 

The Lake District has performed consistently well in perceptions of how the North West tourism brands provide visitors with what they want. The Lake District scored the highest in 10 of the 15 considerations for UK short breaks.

 

Trend Spotted

 

The top five perceptions that UK short break holiday makers associate with the Lake District have all increased since 2005. 'Being pampered at a luxury hotel or spa' has increased the most by 53% during the 2005 to 2009 period.

 

How perceptions of the Lake District have changed since 2005

(Top five perceptions that people associate with the Lake District)

Trend Spotted

 

Survey details: 1000 UK short break holidaymakers sourced from an online panel

Source: 2009 QA Research and 2005 MORI Perceptions research of the North West

 

 

Holiday attitudes and the Impact of the Recession

48% of adults now see holidays as a 'luxury', a rise of 10 percentage points from the 38% recorded prior to the recession in 2007. Less than a fifth of adults see holidays as a 'necessary spend' or a 'right'. Travel is still a high priority but is seen as an indulgence in times of economic difficulties.


Respondents were also asked how they would react if it become more expensive to travel:

 

Trend Spotted

 

While consumers have become accustomed to small indulgences, 'Staycations', Mintel predicts that they'll start occasionally breaking free form the 'tyranny of value' in 2010. Escapism will resonate both in and outside the home as those consumers who feel more economically secure splurge on big purchases. For the travel industry, 'affordable luxury', 'luxury you deserve', 'quality of trip' vs 'quantity of trips' and liberation from the daily grind of anxiety will be powerful messages.

 

Source: Jan 2010 Mintel 'Holidays - Attitudes and the Impact of Recession'

 

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Market Trends

 

Global tourism will increase albeit slowly by 2011
According to the World Travel & Tourism Council (WTTC) moderate growth will be recorded by the travel industry in 2011 although developed economies will improve steadily.

 

WTTC predicts that spending in real terms will grow by 1%, while business travel spending will decline by 2%. Furthermore, real GDP growth for the industry is expected to reach 0.5% in 2010 with an improved 3.2% growth earmarked for 2011. Over the long term, the travel industry is forecast to increase by 4.4% per year over 2010-2020. Emerging economies are expected to be the main drivers of growth. China will lead the way, according to WTTC, with 95 million outbound visitors by 2020, as well as enjoying a strong domestic travel market.
 

Source: Mar 2010 TravelMole.com



Full speed ahead
Cruising remained buoyant during the impact of the global financial crisis with increasing demand outpacing other segments such as air transportation. More than 16 new ship launches are scheduled for 2010 and will contribute further to the popularity of cruise packages.


In addition, a growing European market illustrated a strong revival led by countries such as the UK and Germany with demand in the latter doubling in 2009. According to a survey released by the German Travel Association DRV at ITB, one million passengers opted for cruising in 2009, a 13.2% increase on 2008 thus German cruise revenues rocketed 14% to reach EUR1.9 billion.
 

Source: Mar 2010 TravelMole.com

 

 

State of the Rural North West 2008
Tourist visits to the rural North West totalled 51.4m, accounting for 24% of all visits to the region in 2005 - and over one third of these visits were to Accessible Significant Rural LADs. Tourists to the rural North West are likely to spend more (£49.90 per person) than their urban counterparts (£40.20 per person), contributing a total of £2.57bn to the rural economy. Spend per visitor was by far the highest in Rural 80 LADs, ranging from £55.20 in Accessible Rural 80 LADs to £86.60 in Remote Rural 80 LADs. The Lake District is a key strength of the region in attracting tourists (averaging 22m visitors per year).

Tourism contributes around £2.6bn to the rural economy per annum, and tourists to the rural North West are likely to spend more than those in urban areas.
 

Source: Jan 2009 NWDA Rural Intelligence Unit

 

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Tourism Innovation

 

Trend Spotted

"Idiot-proof" online booking site unveiled

Independent agency Qwerty Travel has developed an “idiot-proof” online booking offshoot. The website, www.travelwasp.com is claimed to be a simple “three click to purchase” site providing dynamically packaged, all-inclusive holidays.

 

“We wanted to strip back and simplify the holiday booking process. There are lots of sites out there with lots of different search options and gizmos, we wanted to make travelwasp.com totally idiot-proof as we believe that there are people out there who are still apprehensive about buying travel online. This is a means of appealing to them.”

Matthew Somers, Managing Director
 

In the 18 months since Somers bought the agency from its previous owners youtravel.com, the business has grown significantly. In the last financial year ending October 2009 it made a net profit of £267,000 on a turnover of more than £13 million. Somers is confident of boosting this by at least a further 50% this year.


www.travelwasp.com    Read More >

 

 

Trend Spotted

"Virtual tourism" move by Blackpool
An interactive online movie has been created to encourage more visitors to Blackpool. Digital technology allow visitors to star in their own Blackpool film and share it online with their friends and family.

Users can upload their favourite pictures to The Movie’s microsite www.blackpoolthemovie.com and automatically share their virtual adventure with friends and family online.

Blackpool: The Movie has been designed by Lancashire and Blackpool Tourist Board to encourage potential holidaymakers to visit the resort and to maximize internet chatter on social media sites such as Facebook, Twitter, MySpace and Youtube.

The trailer provides a tour of Blackpool’s top attractions accompanied by a voiceover by the X Factor’s Peter Dickson, allowing them to experience their family snaps transformed into a truly personal Blackpool trailer.

By entering their family name and home town, users will see their personal details become an integral part of the trailer, appearing on billboards, posters and lighting up the sky alongside a pyrotechnic firework display.

All entries will be entered into a prize draw and for one family to win annual passes to Blackpool attractions.
 

“Blackpool has made a name for itself as a destination which uses leading-edge technology to encourage tourists to visit Blackpool and Blackpool: The Movie marks an exciting venture into the new world of virtual tourism.”
Mike Wilkinson, Chief Executive of Lancashire Tourist Board

www.blackpoolthemovie.com     Read More >

 

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Source: Springwise + TheDrum

 
     
 

 

Cumbria Tourism Research

 

Latest Tourism Intelligence

 

Visitor Attractions
We have just finished collecting information from our visitor attractions for visitor numbers in 2009. We have compiled a top 20 list that is available to download from our website. Please note this only includes those attractions who a) provide information and b) allow us to publish their figures. A full spreadsheet of data going back to 1990 is also available from our research request page on the website.

Looking back ten years, 44 attractions provided data in both 1999 and 2009. These attractions showed an decrease in visitor numbers over this period of time of -2.7%. Over the last 5 years (2005-2009) with a larger sample size of 72 attractions providing data in both years, there has been a 2.0% increase in visitor numbers.

Even more positive is the 6.7% increase in visitor numbers to the 69 attractions that gave us figures in both 2008 and 2009. Between 2007-2008 there was almost no change in visitor numbers so this is a definite change in fortunes, and possibly partly a result of the economic climate which seems to have increased the appeal of day trips.
 


2009 Visitor Surveys
Approximately every three years we commission a fully comprehensive, county-wide visitor survey to profile our visitors, find out what they are doing, where they are going, how much they are spending and what they think of their experience. The 2009 survey builds on previous surveys conducted in 2002 and 2006. QA Research carried out face-to-face interviews with 2,684 visitors across the county. 1,501 interviews were full, and a further 1,183 were mini surveys, designed to help inform understanding on visitor types and flows.

In parallel with this work, an additional survey specifically targeted overseas visitors. Dedicated interviewer shifts were used to target overseas visitors in prime footfall locations and a self-completion survey available in English and also translated into German, French, Spanish, Chinese and Japanese was distributed by key tourism partners. 496 of these surveys were completed.

Main Visitor Survey Key Findings

Maintained loyal and repeat customer base
15% were brand new visitors, 84% had been before
60% had visited Cumbria in the last 2 years, 24% were returning after a break of two years or more

Elderly, affluent couples dominate but group sizes on the rise
63% of visitors are over the age of 45; just 15% are under 34
49% of all trips contain just two people
29% visited with children
Party sizes continue to increase at 3.3 on average, up from 3.2 in 2006 and 2.9 in 2002.

Importance of local markets
93% of visitors were from within the UK; 7% from overseas
Over half of all day visitors were from the North West region, also accounting for 25% of staying visitors. Yorkshire (15%) and the North East (10%) were also important origin regions for staying visitors.

Trip length is stable
38% of visitors were staying for 1-3 nights, and 62% 4+ nights – the opposite is true for many other destinations.
Average length of stay dropped slightly to 5.6 nights, from 6.1 nights in 2006 – not bad during a recession when many people shortened breaks to save money.

Accommodation – spend up but satisfaction down
When choosing accommodation, visitors were influenced first by location, then availability, and then facilities. Price was slightly more important than in 2006, perhaps a result of the economic climate.
51% of visitors booked their accommodation by phone, and 29% did so online, slightly down from 31% in 2006.
Average spend per person per night on accommodation was £28.06 – up 10% on 2006.

Overall quality, and value for money ratings for accommodation have decreased slightly since 2006

Value of staying visitors – more active, stay longer, spend more
Day visitor spend per day was £24.07 – up 28% on 2006.
Staying visitor spend per day (including accommodation) was £50.85 – 24% up on 2006.
As well as staying for longer, staying visitors are more active than day visitors – more likely to eat out, visit attractions, take a cruise (presumably because they have more time).
People staying in serviced accommodation spend more per day than other groups – caravan/campers the least.

Decision-making
Many visitors having been before, have no need for specific sources of information.
23% of visitors used the internet for information prior to their trip, a decrease on 33% in 2006.
Use of brochures almost halved from 13% to 7% (although more important to overseas, and first time visitors).
Recommendations from friends and relatives continues to grow
63% of day visitors decide to come the week of their trip. 23% of staying visitors decide to come within a fortnight of the trip and two thirds within three months – it’s never too late to market to these people!

Satisfaction on the wane
When asked to rate their overall trip experience, the satisfaction score was 4.5 out of a possible 5, down from 4.8 in 2006.
Value for money also dropped from 4.5 to a 4.2 score in 2009. Just 37% said value for money was very good – down from 63% in 2006.
Customer service (new for 2009) received an overall score of 4.4 out of 5. 86% said it was good or very good.
Overall ratings for public spaces (new for 2009) were very positive, with almost half of visitors awarding the top rating of very good - and a mean score of 4.5 out of 5.
Suggestions for improvements were focused around reducing traffic/improving the transport infrastructure and public transport links, cheaper and more car parking, improved signage and more child/family friendly activities.

The future looks bright…..
85% of our visitors said they were likely to return in the next two years (up from 80% in 2006) – and 64% said they were very likely to return.
Encouragingly, 66% of first time visitors said they were likely to return in the next two years.
 


International Visitor Survey Key Findings


Profile
Cumbria – the Lake District attracts international visitors from a broad mix of age bands (e.g. 10% 16-24 years old, 19% 25-34, 22% 35-44, 24% 45-54, 18% 55-64 and 6% 65-74).
The top five countries of origin were USA (12% of total), Australia (11%), China (10%), Germany (9%) and Netherlands (8%).
The majority of international visitors (81%) are travelling independently, making all their own arrangements.
There is a broad split between first time visitors from overseas (54%) and those who have visited Cumbria – the Lake District before (17% within the last 2 years and 29% over 2 years ago).

Information sources
The single most used source for information from home prior to visiting is the internet (63%) followed by guidebooks (32%) and recommendations from friends/relatives (18%).
The single most used source for information whilst on holiday in Britain is TICs (41%) followed by guidebooks (32%) and brochures (29%).

Satisfaction and likelihood of return
Overall satisfaction is high (93% very good or good), with customer service (89%) and public spaces (87%) also being rated highly.
However, overall value for money was rated lower (71% very good or good and 27% satisfactory).
The majority of visitors (92%) said they were very likely or likely to recommend Cumbria – the Lake District to others.
Two thirds (63%) said if they could they were very likely or likely to return to Cumbria – the Lake District.

Full copies of both the 2009 Visitor Survey and the 2009 International Visitor Survey are available to download via www.cumbriatourism.org.
 


Current Research Projects

We are in the process of finalising the questionnaire for our biannual telephone survey. Our researchers, Strategic Marketing, will speak to 500 tourism businesses at the end of March/beginning of April to gauge business performance, factors affecting business, and emerging trends.

Visitor surveys and economic impact analysis for the Kendal Mountain Festival 2009 and Fellsman Steam train journeys are almost complete.

Annual occupancy reports for both serviced and self catering accommodation are underway.
 

To find out more about these reports or surveys please contact us.

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Cumbria Tourism Research Request Form

 
     
 

Contact Us

Helen Tate - Research Manager - htate@cumbriatourism.org

Nick Truch - Research Executive - ntruch@cumbriatourism.org

Ann Clarke - Research and Development Assistant - aclarke@cumbriatourism.org

 

Cumbria Tourism, Research Department, Windermere Road, Staveley, Kendal, Cumbria, LA8 9PL

01539 822 222 - www.cumbriatourism.org

Cumbria Tourism

 

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