TourismTrendSpotter

 

November 2009  

 

Welcome to the November 09 issue of the Research Team's newsletter. 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:

01 Tourism Stats Monitor

05 Tourism Innovation

02 Tourism News

06 Cumbria Tourism Research

03 Consumer Trends

07 Contact Us

04 Market Trends

 

 

 

 

Tourism Stats Monitor

New figures released by VisitEngland from the United Kingdom Tourism Survey show that holiday trips (including Visiting Friends and Family) by UK residents in England during the months of January to June of 2009 are up by 14% while outbound travel saw a 17% drop.

 

Though the total amount spent on overnight travel since January is down by 1% when including visiting friends and family and business travel - a sector that continues to suffer - leisure travel in England shows definite signs of consumer optimism, with an increase in spend of 5% (9% for the UK) - confirming 2009 as the summer of 'holidaying at home'.

 

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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

 

2.6 million more holidays taken as ‘lost generation’ discovers England
According to VisitEngland the increase in domestic holidays and drop in outbound travel has amounted to 2.6 million more holiday trips and more than 9.1 million extra nights holiday taken from January to June 2009 over the same period of 2008.

 

Further, VisitEngland focus group research, undertaken in August, indicates that attitudes to domestic travel are undergoing change. Respondents admit to often knowing more about foreign destinations than those in their home country and claim to have a genuine yearning to experience and learn more about the regions of England.

The research goes on to suggest that a ‘lost generation’ of young people confess to feeling almost embarrassed at the lack of knowledge of their own country. While older groups cited unfavourable exchange rates as the trigger for sparking interest in rediscovering classic England hotspots, as well as seeking out ‘off the beaten track’ lesser known regions.

"England is back in fashion as Brits are rediscovering the diversity and appeal of the English holiday. It’s a trend that we’ve seen developing over the course of the last few years and one which we intend to nurture with the help of the tourism industry.

"We know that people are looking for experiences tailored to their interests, be it a spiritual retreat, an adventure holiday or a chic weekend break – they are now realising that England can deliver all that and more.

"Cleary there are businesses out there still suffering, particularly those in the conference and events market so we are certainly not out of the woods. As an industry this is the time to pull together and ensure that when the economic circumstances and exchange rates change, we have a robust strategy in place to ensure that England destinations continue to attract new and repeat visitors."

James Berresford, Chief Executive of VisitEngland

 

Source: October 2009 www.enjoyEngland.com

 

 

Lake District makes the 'Top 10 best places to visit list' for 2010

The Lake District has today been given huge tourism boost for next year with the publication of the Lonely Planet's Best in Travel 2010.

The respected guide and one of Lonely Planet's best sellers, has named the Lake District as one of the Top 10 Regions to visit in 2010, and is the only British destination to be included.

Best in Travel captures the world's hottest travel trends, destinations, journeys and experiences for the year ahead, bringing together the expertise of Lonely Planet authors, staff and travellers.

The Lake District was chosen ahead of other UK regions because "If anywhere sums up all that's green, great and grand about the English landscape, it's the Lake District.

Trend Spotted

source: www.golakes.co.uk

"There's much more to England's best-loved National Park than just dazzling good looks - think cast-iron literary cachet and history in abundance, not to mention gastronomic adventure and enough first-class fell-walking to fill a lifetime of visits."

The book lists Scafell Pike, England's highest mountain as the area's most ‘defining experience' followed by some ‘hearty grub and home-brewed beer at the historic Wasdale Head Inn'.

 

‘Essential Experiences' include tackling Striding Edge on Helvellyn, visiting Dove Cottage and Rydal Mount, cruising on Coniston Water, Osprey-spotting at Bassenthwaite Lake, and a stay at the remote Black Sail Youth Hostel at Ennerdale.

"The Lake District is already a well-established holiday spot for Brits, we've put the area on the Top 10 Regions list because we think it is a place that deserves a second and third look."

Tom Hall, Lonely Planet Travel Editor


The other destinations to make the final ten were: Alsace, France; Bali, Indonesia; Fernando de Noronha, Brazil; Goa, India; Koh Kong Conservation Corridor, Cambodia; Lake Baikal, Russia; Oaxaca, Mexico; Southern Africa; and Southwest Western Australia.
 

Source: 03 November 2009 www.cumbriatourism.org

 

 

London is named one of world's top 10 best-value destinations by Lonely Planet

The Lonely Planet guide has also given a boost to our country's capital, which has made it into the top 10 of the world's best-value destinations. Lonely Planet says London's reputation as one of the world's most expensive cities is over thanks to the plunging pound. The guide introduced its review of London by saying: "Every economic crisis has a silver lining."

"Long ludicrously expensive, London has become much more affordable for visitors from abroad, if not for its residents.

"The favourable exchange rate means that travellers will often find hotels and meals up to half the price they were a few years ago, or at least a third cheaper."

Tom Hall, Lonely Planet travel editor

 

Source: 02 November 2009 www.DailyMail.co.uk

 

 

London leads the way in a mixed month of performances
London hoteliers experienced in September an increase in monthly Revenue per Available Room for the first time since August 2008. Meanwhile, hotels in Budapest, Munich and Prague continued to suffer major declines in RevPAR performance.

Despite a 3.9% drop in average room rate in London, RevPAR for the month of September finished 0.5% above the same period in 2008 due to a 3.9 percentage point increase in occupancy levels. Furthermore, profit per available room (GOP PAR) in the UK capital grew by 3.3% in the month of September 2009, to £94.39. This was made possible by a decrease in the level of payroll as a percentage of total revenue, down to 22.4% from 24.7% in September 2008.

“Following a summer of fluctuating price and volume, it was back to business for London hoteliers in September. Twelve months on from the collapse of Lehman Brothers and the immediate impact of the banking crisis, London hoteliers are growing profits.”

Jonathan Langston, managing director, TRI Hospitality Consulting.

 

At the end of the third quarter, the impact of the economic downturn on the primary measure of profitability for hoteliers across Europe is clear. Year to date figures show double digit decline in GOP PAR is a common factor in all but one of the surveyed cities, the exception being London (-8.2%). More apparent is the massive year on year declines experienced in previously buoyant markets such as Amsterdam (-24.4%), Budapest (-33.9%), Munich (-36.4%), Prague (-38.6%) and Vienna (-41.3%).
 

Source: 3 November 2009 www.4hoteliers.com

 

 

TripAdvisor influences £500m of corporate hotel choices
TripAdvisor and similar user review websites now influence corporate decisions on hotels to the tune of £500m a year, according to research firm BDRC.

In a BDRC survey of 1,000 business travellers, 28% said they actively seek advice on websites featuring consumer reviews; 46% were influenced in their hotel selection by consumer reviews, while 41% decided to change their original hotel choice after reading about other travellers’ experiences.

The influence of word of mouth recommendations - both on and off line – outweighs the star ratings offered by the AA and RAC and official ratings and advice from travel agents, the survey revealed.

With 40% of respondents citing them as “very reliable”, personal recommendations were the most trusted source of information, followed by information supplied by the company business travellers were visiting (33%).

Nearly a quarter (23%) of business travellers said they placed their faith in reviews by total strangers on sites such as TripAdvisor. Only 13% believe that others’ opinions on user review sites are “unreliable”, compared to just 4.5% who remain sceptical about personal recommendations.

“These figures show that the influence that sites featuring consumer reviews and opinions have is absolutely huge for both leisure and business travellers.

"In the past a guest’s role as either an advocate or detractor was limited to their personal network but now as more and more business travellers log on to read user-review sites, the impact they are having on corporate bookings is enormous.”

Matt Costin, director of hospitality research at BDRC
 

Source: 09 October 2009 www.caterersearch.com

 

 

Demand for passports drops ten per cent due to recession
The demand for passports has fallen by more than 10 per cent over the past two years as recession-hit Britons choose to 'staycation' or put off expensive renewals.

More than 12million Britons chose to holiday in the UK this summer instead of taking their annual break abroad. And the increase in passport prices is also putting holidaymakers off renewing until the last possible moment before a trip.
 

The cost of an adult passport has increased from £66 in 2006 to £72 in 2007. With another rise earlier this year, the price currently stands at £77.50.

Only 5.23 million passports were issued in the year 2008-09 - compared to 6.2 million in 2006-07.
 

"What has been happening in the last two years is that demand for passports has been falling and we think that is because, as the recession has come on, people are delaying renewing their passports."
 

Sir David Normington, Home Office permanent secretary (before the latest price hike):

 

He also claimed the price of the passport was considered particularly high when compared with other modern holiday costs - such as travel on budget airlines.
 

Source: 27 October 2009 www.DailyMail.co.uk


 

 

 

SPECIAL FEATURE: Airline Update

 

 


Darling admits APD will help pay for banking crisis
Chancellor Alistair Darling has admitted that Air Passenger Duty (APD) is a tax to help fight the banking crisis, according to reports.

"I am quite blunt about it, we need to raise money to pay for some things we have done... If unemployment goes up there is a cost obviously to the family, there is cost in increased benefits, Northern Rock has cost a lot of money."

Alistair Darling speaking in London last month


A Treasury spokesman confirmed to Travel Weekly APD has always been a "revenue raising instrument".

 

Source: 2 November 2009 www.TravelWeekly.co.uk 

 

 

Ryanair Predicts 20% drop in Fares Over Next Six Months
Ryanair's fares are expected to drop by 20% over the next six months, even though it means the airline will make a loss during that period. According to chief executive Michael O'Leary the airline's fares have already fallen 17% this financial year. Despite this, the airline saw its net profits increase by 80%, largely thanks to a 42% reduction in fuel costs.

 

"We expect average fares to fall by up to 20% during quarters three and four, which will result in both these quarters making a loss.

 

"Recent weeks have seen the demise of SkyEurope and Seagle Air in Slovakia, and MYAir in Italy, and we expect further casualties this winter.

 

"Ryanair is the only major European airline to increase traffic and profits. We are winning substantial market share from the big three, high-fare, flag-carrier groups led by Air France, British Airways and Lufthansa and we expect this trend to continue."

Michael O'Leary, Chief Executive of Ryanair

 

O'Leary's confident predictions come despite his admission in the results that traffic figures through UK airports are expected to drop by 10% over the next six months.
 

Source: 2 November 2009 www.TravelWeekly.co.uk

 

 

American Airlines Returns To Manchester
American Airlines has announced it will add a new service between Manchester and New York JFK, just a week after Delta announced it was withdrawing from the route. American’s new non-stop daily summer seasonal service is scheduled to start on 16 May until 30 September 2010.

Delta’s Manchester-JFK flights are scheduled to end on 8 January. The airline blamed a drop in demand over the winter for its decision. Manchester Airport lost a British Airways daily flight to New York last year. Bmi has also withdrawn all its transatlantic flights from Manchester over the past 12 months.
 

Source: 18 September 2009 www.cnntraveller.com

 
 

 

Easyjet profits plunge amid high fuel costs
EasyJet's profits have dropped by 50% to 54.7 million for the year to September, despite increases in passenger numbers, load factors and market share. The airline blamed higher fuel costs for the drop in profits, with fuel costs for the year £86.1 million higher than last year.

However, a number of key indicators were positive. The airline managed to increase its market share of the overall European short- haul market, carrying 45.2m passengers during the year, 3.4% ahead. Load factors were up by 1.2% to 85.5%.

Overall capacity, measured in terms of seats flow, was 1.8% up. In the UK, capacity at Gatwick was increased by 12%, giving easyJet a 30% share of the airport. Elsewhere, it reduced capacity at weaker performing markets such as Luton and the UK regions.

 

Source: 17 November 2009 www.Travolution.co.uk

 

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Consumer Trends

 

32% of people have not changed their holiday plans, despite recession
According to the results of last month's Travel Navigator Hot Topic, consumer confidence may be low, but 32% of respondents are not intending to spend less on their holidays.

 

The 55+ age group is the best target opportunity as they are more likely to state that they are not saving any money when it comes to this year's holidays.

Where savings are being made, fewer excursions or more free activities will be undertaken instead of saving on accommodation.

Families with older children will try to make the most savings: 48% looking to save on their accommodation will look for last minute deals. Many will look to holiday closer to home.

 

Travel Navigator's Hot Topic for November 2009 asked UK travel consumers ‘Which Travel Marketing Did You See?’
Only 45% remembered seeing any advertising at all!
More people remembered the tour operator rather than the destination, with Thomas Cook and Thomson almost neck and neck.
UK Destinations ranked highest.
 

Travel Navigator is Arkenford's independent monitor of the UK consumer travel market that focuses specifically on holiday taking activity and planning, covering UK and overseas trips and destinations.
 

Source: Arkenford’s Travel Navigator September 2009 (n=1600 survey of UK residents)

 

 

Britons are Hooked Online Despite 'Lagging' Broadband
Research suggests that Britons are addicted to the internet - even though broadband quality has been ranked behind countries such as Bulgaria and Latvia. Shopping and social networking are reasons why we spend time online

An average person in the UK is clocking up more than 30 hours a week online, according to a study by independent price comparison service uSwitch.com. On a typical working day, a person now spends an average of five hours using the internet. Two of these hours are for professional or work purposes, while the remaining three are for pleasure and leisure - including online shopping and socialising.
Researchers say the social networking boom is one of the main reasons why we now spend so much time online.
A quarter of adults surveyed said they need to use sites such as Facebook and Twitter at least once a day - while almost a third of those aged 18-24 spend more than five hours a week on them.

But a report from IT giant Cisco said Britain's broadband ranked 31st out of 66 countries. Network quality was gauged by looking at speeds and penetration. While Britain's services were "meeting needs for today" - many EU neighbours as well as a slew of Asian nations and the US scored higher.
 

Source: 1 October 2009 SkyNews

 

 

Third of consumers would opt for ‘eco-friendly’ hotels
Guests are becoming more concerned with hotels’ eco-credentials, according to a pan-European survey. Almost a third (29%) of respondents would choose a known ‘eco-friendly’ hotel if it was offered by a popular online booking system.

The poll of 5,000 people found that more than half (54%) say sustainable energy sources, such as wind, solar or hydro-electric power, should be used. Almost half (48%) say hotels should use more efficient electrical appliances, like flat screen energy efficient TVs. Nearly two thirds (65%) say all hotels should install low flow toilets designed to save water.

The demand for green credentials is echoed by guests’ own behaviour in hotels, according to the study by Samsung Electronics:
More than three quarters (76%) are as conscious or more conscious of the impact they have on the environment when staying in hotels compared with their behaviour at home
88% switch off the lights when they leave their hotel room
63% reuse towels more than once
59% still switch electrical equipment off at the base

“Environmental awareness is on the rise and playing an increasingly significant role in the hotel booking process. Hoteliers can appeal to the ‘green’ consumer by responding to their expectations; putting in water-saving toilets, using sustainable energy or installing eco-friendly appliances like energy efficient flat screen TVs."
 

Pammi Mudhar, B2B Sales and Marketing Director of Samsung Electronics Europe

 

Source: 3 November 2009 www.TravelMole.com

 

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Market Trends

 

Cumbria's Occupancy Figures More Resilient
Recently published occupancy comparisons for the UK, England, and the Northwest reveal Cumbrian serviced accommodation providers to be less impacted than on average across the UK. So far for 2009, in the months of April and July Cumbrian serviced accommodation providers on average experienced an increase in room occupancy compared to figures in 2008.

 

Trend Spotted

 

Source: enjoyEngland 'UK Occupancy Survey' 2009

 

 

Best Western benefits from continuing ‘staycations’
The summer staycation has extended into the autumn, according to latest occupancy figures from Best Western. As well as seeing increased leisure business during the summer months, the UK’s largest consortium of independently owned and managed hotels reported rise in leisure sales of 17% in September and more than 30% in October, compared with the same periods in 2008.

“Consumers holidaying in the UK have been able to take advantage of many competitively priced hotel breaks on offer this year. However, Best Western has chosen not to enter into an industry-damaging price war and instead we’re focused on adding genuine value to customers.”

Keith Pope, Director of Membership for Best Western

 

Spurred on by the Euro dipping below 1.10 recently many holidaymakers who traditionally took breaks when the schools went back had opted for a British holiday this year.
 

Source: 4 November 2009 www.mintel.com

 

 

Find the customers' "sweet spot" to generate sales
The secret to riding out the recession in the UK has been the ability to identify consumers’ "sweet spot", according to lastminute.com chief executive Ian McCaig.

Addressing the Captains of Industry lunch yesterday at World Travel Market, McCaig said the key to getting people to spend was to offer them the right deal at the right time.

"We’ve been working closely with suppliers on sweet spots for UK consumers, which have been very price led. Deals where you ‘buy now and get it for this price’ will fly off the shelves... Look at the product lines that are most profitable for you, and focus on developing and promoting them – then push the price promotion hard."


"It will be 2011 before we see consumer caution start to lift. If you’re banking on recovery as part of your business plan for 2010, you’re in trouble – you should go back into the boardroom and have a wee think about it."

Ian McCaig, Chief Executive of lastminute.com

 

McCaig said that Hotels were "the most under-penetrated category" of lastminute.com’s travel categories and is one of the fastest growing from an online point of view, with good yields. Lastminute.com recently sold 5,000 hotel nights in less than 90 minutes using the principle of WIGIG – ‘when it’s gone it’s gone’.

 

Source: 10 November 2009 www.TravelWeekly.co.uk

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Tourism Innovation

 

Trend Spotted

Firefox add-on helps plan trips and find travel deals
Focusing more on travellers' own search process, the time they spend scouring the web for ideas, comes Gliider, a Firefox plug-in aimed at organizing all the best results in a single, online place. Gliider lets travellers keep track of all the interesting ideas they come across while researching and planning a trip.

 

When they're surfing the web and come across a hotel, restaurant or photo they want to remember as they make their plans, they need only click the Gliider icon. Simply drag and drop whatever you want to save, creating a neater, more organized alternative to a list of bookmarks. Users can share their trip files, create a summary travel document PDF, and tracks deals on hotels relevant to a specific trip that allows users to take advantage of them in a single click.
Read More >

 

 

Trend Spotted

Campsite directory with a fresh pitch
The UK Caravan Club reported a 40% rise in bookings this year over 2008 figures, while according to the National Office of Statistics, the amount of Brits travelling overseas fell by over 7 million compared with last year. To capitalise on this, camping and caravanning site directory Pitchup.com is making it easier than ever for UK "staycationers" to settle on the right destination.

Launched at the beginning of this holiday season, the website lists over 5,000 camping and caravanning sites around the UK and Ireland. Users can easily narrow down the selection using a whopping 79 different criteria, including whether the site has wifi or disabled facilities, and whether campfires are allowed. Users can also search by proximity to attractions such as beaches, battlefields or national parks. And access tickets for upcoming events in the area.
Read More >

 

 

Trend Spotted

Crowds map filming locations across the world
Filmaps is rapidly creating a crowd-powered database of filming locations around the world. Users can search by location or film title to bring up a Google Map that features location photos from Panoramio and videos from YouTube. Filmaps adds social elements through Facebook and Twitter connections, as well as embeddable location widgets.

There are hints on the website that Barcelona-based Filmaps may have plans to offer film location tours, which would make sense. Its members are already mapping out the routes, and the site would be a perfect marketing tool. What other niches could you map your way into?
Read More >

 

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Source: Springwise

 
     
 

 

Cumbria Tourism Research

 

Research currently being carried out:
 

The Impact of the Floods on Cumbrian Businesses and the Tourism Industry .. Businesses all over the county are being asked to assess the damage and loss of trade because of the flooding. This survey will help assess the need for support and steps to recovery.
 

The Value of Tourist Information Centres in South Lakeland .. Following the recent announcement by South Lakeland District Council that it is to reduce its TIC funding Cumbria Tourism has launched a number of surveys to assess the potential impact on business and the tourism trade from any TIC closures. Findings from the survey will asses the potential impact on visitors, businesses, and the industry and explore potential ways forward to maintaining this information service.
 

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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