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European Market Overview - European Market Trends
EU market information (www.cbi.eu/marketinfo)
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Summary Details - Europe
Source: CBI Market Survey – Long Haul Tourism
World Tourism Organisation predicts 164 million long haul tourists from Europe
by 2020
Increases in tourism to developing countries are over 18% per year and expected
to grow higher
Germany, UK and France the dominant countries for year round consistent growth.
The rise of charter flights from some European countries has added the “mass
market” appeal.
Although fundamentally the same each country market has differing requirements
for product / duration etc
Market Segmentation
Global Experience Seeker – experienced, well travelled looking for culture,
contact with the locals, challenging themselves (physically, emotional, or
mentally)
Mass Market – These are looking for the “exotic” holiday and will normally be a
resort based, with excursions. Set holiday durations guided tour operators.
Seniors – As Europeans live longer, they are frequently exploring more, away
from their traditional cruise heritage. They demand more included and a higher
attention to detail.
Pricing
Traditionally pricing was reducing by 2-5% per year as airlines became more
competitive. BUT ... DUE TO
CURRENT ECONOMICS:
-
Long Haul buyers are looking for more value for money, not necessarily cheaper.
Exchange rates are at their all time lowest for some markets which can impact on
pricing
-
Interest rates are the lowest for decades in some countries – that is good and
bad.
-
Destinations are competing against each other more and so airlines and local
suppliers have to work on a continual analysis of business coming in.
Destinations
Although there are variances to specific countries from different EU countries –
all are dominated by the home European markets.
But for Developing Countries:
-
Asia is one of the most popular from the big three – Germany, UK & France with
Netherlands, Belgium, Spain and Scandinavia following.
-
18% increase between 2002 – 2005, with growth spread as more countries become
more accessible.
Market Information / Overview www.cbi.eu/marketinfo/cbi
We will be looking at three examples, using the above internet information:
-
United Kingdom
-
The Netherlands
-
Germany
Navigate to the respective country page under market sector – tourism.
Exercise – Define what you are looking for
-
Type of Holiday
-
Type of end buyer (public consumer)
-
Trend of purchase route
-
Promoting yourselves – public & trade
Find market information for each of the countries
Category – Click and scroll to Tourism
Select country of first interest, e.g. UK – Long Haul Tourism market in the UK
Read the information and make notes on what you have defined
After ½ hour we will summarise each country mentioned
Overview – United Kingdom
Source: CBI Market Survey
Dominance of the sun & beach holiday, especially by mass market tour operators.
British market very resilient in bad economic times – they will still take their
holiday, but may only go away once a year not twice.
Average stay (outside of Europe) is 10 nights, especially for any long haul
holiday.
Largely price driven but think about value for money
Holidays are now taken year round including low seasons if the local climate
will stand up to that.
Types of Long Haul Holidays Taken
-
Sun, Sea & Beach Holidays
-
Wellness Holidays – spa, spiritual
-
Luxury Travel – Tailor Made Options
-
Sustainable Tourism – GAP year, students, carbon footprint reducers.
-
Honeymooners
-
Cruises
-
Adventure seekers
-
Experience seekers – safaris, natural wonders.
Trends & Characteristics
-
Internet – Referencing & Purchasing
-
Increasing demand for long haul travel
-
Growing demand for new / unique destinations / options
-
Growing awareness of eco tourism
-
Growing seniors and solos markets
Market Penetration
+
Direct to Public:
-
Internet
-
Newspaper articles (Driven by tourist boards)
-
Magazine articles (Driven by tourist boards and / or special interest)
-
TV features – no control over this (e.g. BBC wildlife, Discovery Channels,
Sports events.
-
B2C Roadshows
+
Travel Trade:
-
Trade Fairs – WTM, Indaba, ATM, ITB, Confex, EITBM, IMEX.
-
Travel Trade Press – News Articles, Features.
-
Inbound tour operators
-
Trade Associations
-
B2B Roadshows / workshops
Overview – The Netherlands
A continued preference of the sun & beach holiday, but with emerging requirement
for a rewarding experience.
Indications are that this market is not as effected by the Economic problems of
others and so their long haul market is still expanding.
Holiday durations (outside of Europe) are over 8 days, especially for any long
haul holiday.
Due to increasing Eco taxes, holidays are always sought on a “value for money
basis” or new experience.
Long haul holidays are a year round commodity, but like other European
countries, July & August are peak due to school holidays
Overview – Germany
A continued preference of the sun & beach holiday, dominated by the big tour
operators.
Indications are that when economies decline the German market focuses on the
long haul market – more bang for their euro.
Holiday durations (outside of Europe) average 11 days, especially for any long
haul holiday.
Largest long haul market in Europe, but no increase expected in numbers for a
few years.
Long haul holidays are a year round commodity, but like other European
countries, July & August are peak due to school holidays
Types of Long Haul Holidays Taken
-
Sun, Sea & Beach Holidays
-
Wellness Holidays – spa, spiritual
-
Sustainable Tourism – GAP year, students, carbon footprint reducers.
-
Honeymooners
-
Cruises
-
Adventure seekers
-
Experience seekers – safaris, natural wonders.
Trends & Characteristics
-
Internet – Referencing & Purchasing on the increase
-
Increasing demand for long haul travel
-
Growing demand for long haul short duration holidays – usually city breaks
-
Growing awareness of eco tourism
-
Growing seniors market.
-
Increased niche, special interest and luxury holidays
Market Penetration
+
Direct to Public:
-
Internet
-
Newspaper articles (Driven by tourist boards)
-
Magazine articles (Driven by tourist boards and / or special interest)
-
Tourism Trade Fair – Vakantiebeurs
+
Travel Trade:
-
Trade Fairs – Vakantiebeurs (for NL), WTM, Indaba, ATM, ITB.
-
Travel Trade Press – News Articles, Features.
-
Inbound tour operators
-
Trade Associations
-
B2B Roadshows / workshops
SUMMARY
The European markets are potentially one of the biggest for Indonesian
destinations, but not a route to quick wealth.
All are similar but have different challenges - Planning is a strategic
necessity
Learn from this training program the basic concepts of what you should look for
and undertake.
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