Jenny McGee March 2014 Trends in English Tourism.

Jenny McGeeMarch 2014

Trends in English Tourism

The role of VisitEngland

• Advocate for the sector and drives forward the industry’s shared Strategic Framework for Tourism

• Advise Government on English Tourism issues

• Provide official intelligence on tourism and visitor economy in England

• Promote England's tourism offer

• Support areas grow their local economies through tourism

Apr-06 Nov-06 Jun-07 Jan-08 Aug-08 Mar-09 Oct-09 May-10 Dec-10 Jul-11 Feb-12 Sep-12 Apr-13 Nov-13 Jun-14 201520

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30

35

40

45

50

55Domestic Holidays in England – Rolling 12 Month TrendTrips

(m)

The recession has led to a massive change in holiday-taking behaviour...but what happens next?

Source: GBTS

Consumer confidence is improving – but there’s still a long way to go...

Source: VisitEngland Staycation Research

Recession impacts seen in travel patterns - more trips taken by the most affluent while the least well-off take fewer trips than before...

Trips (m)

+30%

+16%

+8%

-20%

2006 vs 2013 (est)

Source: GB Tourism Survey

...and “discretionary thrift” is a habit that’s likely to stay with us

“This is habit forming, rather than just a blip. For younger

people, a significant proportion of their life has been spent in

this climate - it’s seen as weird to pay over the odds”

Gavin Flynn, Senior VP, IHG

Source: Office for National Statistics

UK residents have spent more on leisure in the last few years despite making cutbacks elsewhere – the “play society”

Increased volumes have been driven most by older age groups...

Trips (m)

+33%

+9%

-5%

2006 vs 2013(Est)

Source: GB Tourism Survey

Source: ONS Population prospects

65-79s +11.2%

80+ +19.2%

Under 18s +10%

18-34s +1.2%

35-49s -3.4%

50-64s +10.5%

More younger people

More older people (NB – baby boomers are now retiring – a different mind-set than previous generations!)

Fewer ‘squeezed middle’

UK population change 2013-2020

...a trend that is likely to continue into the future as the population structure changes

Source: ONS Population prospects

65-79s +11.2%

80+ +19.2%

Under 18s +10%

18-34s +1.2%

35-49s -3.4%

50-64s +10.5%

More younger people

More older people (NB – baby boomers are now retiring – a different mind-set than previous generations!)

Fewer ‘squeezed middle’

UK population change 2013-2020

...though the current baby boom will also have an impact

Source: ONS Population prospects

65-79s +11.2%

80+ +19.2%

Under 18s +10%

18-34s +1.2%

35-49s -3.4%

50-64s +10.5%

More younger people

More older people (NB – baby boomers are now retiring – a different mind-set than previous generations!)

Fewer ‘squeezed middle’

UK population change 2013-2020

...piling pressure on the squeezed middle

At the same time, families aren’t what they were

Holiday trips are getting shorter and shorter

Source: GB Tourism Survey

3.65

3.32“It doesn’t feel right spending too much on holiday just now”

“I am self-employed… I can’t be away for more than 5 days in case a job comes in.. If you’re not here to do it you wont be asked again”

It means we can make most of a long weekend …and means we can have more short holidays rather than longer ones

Last minute is now the norm

Source: Booking Patterns Research

...online booking has grown by over 100% in recent years...

Source: GB Tourism Survey

Source: GB Tourism Survey

..and we’re seeing a massive change in how people access the internet...

According to Mediacom, around one in five of the

UK population ONLY access the internet using

a mobile device

Source: Trajectory

...and in how they tell others about their holiday

Social media activity after last domestic holiday Age Groups

Source: VE Brand & Communications Tracker

18-34 35-54 55+0%

10%

20%

30%

40%

50%

60%

70%61%

58%

27%

‘I often feel under time pressure’

“FOMO” is on the rise and can work in our favour

...but it can make life overwhelming - how can we make things easier for people?

Source: Trajectory

www.visitenglandtrends.com

www.visitengland.org/insight-statistics

Crisis communication in action

• Avian Influenza

• Human/Swine Influenza

• Extreme weather events

• Terrorism

• Volcanic ash

• Civil unrest

The impact of a crisis

• The cost of FMD and September 11 to UK tourism industry in 2001 alone was in excess of £3billion

• It took the industry four years to recover to pre-2001 levels

• 2005 - The London bombings on 7 July cost the industry £750 million.

Crisis assessment

WITHIN BRITAIN

OUTSIDE BRITAIN

9/11SARS

7 July

FMD

ANTHRAXSCARE (NY)

ANTI-GAY

VISITOR BEHAVIOUR

IMP

AC

T

THE GREATER THE

CHALLENGE

Avian fluAirport security

Industry Preparedness

UK tourismbusinessese.g. AccommodationAttractionsTransportTour operatorsEvents organisersetc

TIER (TourismIndustryEmergencyResponse) Groupe.g. ALVA, BHA,UKinboundPSA,DCMS VB,L&P, VS, VW,Regional bodies,etc

CivilContingenciesSecretariat(via DCMS)

International & domestic markets

Cabinet OfficeBriefing Room (COBR)

TIER membership

• Association of British Travel Agents• Association of Leading Visitor Attractions• British Airways• British Hospitality Association• Department for Culture, Media & Sport• English UK• London & Partners• Tourism Alliance• UKinbound• VisitBritain (chair & facilitator)• VisitEngland• VisitScotland• Visit Wales• Regional Tourism Delivery Partners

TIER objectives

• Generate authoritative impact assessment

• Provide accurate, consistent information to reassure and inform visitors

• Ensure media worldwide and UK government are given consistent messages from Britain’s tourism industry

• Leverage opportunities to demonstrate consumer confidence and kick-start recovery

• Promote a clear ‘business as usual’ message in UK and international media

Lessons Learned

• The UK tourism industry cannot control the country’s health or environment, even when they may impact on its performance.

• The actual event is usually less harmful than the fear it creates.

• The UK tourism industry can lessen the impact by providing information and reassurance to its stakeholders, particularly visitors.

• Don’t ‘worship the threat’ by fuelling speculation and misinformation

• Timing of event/ international news coverage

• Cultures respond differently

• Agreed clear lines of communication essential.

Flood response• 18 English counties affected• 62% of tourism businesses impacted• 10% of consumers interviewed offput• VE responded with online guidance in February• 1st March, DCMS funded £2m flood recovery campaign Business support Business continuity and resilience seminars (49 confirmed)

Marketing Book England (38 destinations)

2014 Flooding

Specific ads for:CornwallSomersetWiltshireDevonDorset

Combined ads:Surrey, Kent, OxfordshireEast & West Sussex, Isle of Wight, Hampshire

37 destinations160 price points across the country

Press 50% reach Digital 101m ImpressionsRadio 37.5% reachOutdoor 806 screens+ Social+ CRM

Book England - Domestic

BelgiumHollandGermany

Press 3.7m circulation across 9 titles

Digital 9m impressions

Book England - International