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Page 1: CBI Outbound Tourism Poland Baltic States Czech Republic Slovakia Tourism 2013

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

CBI Product Fact Sheet: Outbound tourism from emerging Eastern EU countries

‘Practical market insights into your product’

The Eastern EU market is an emerging market for outbound

tourism which still has to reach maturity. Due to rapidly

growing economies, an increasing number of Eastern EU

travellers are travelling abroad. The Eastern EU market had

the highest growth in outbound trips in 2012. Growth forecasts

are also expected to be highest here. Opportunities for tourism

providers from developing countries (DCs) are highest in

Poland, the Baltic States, Czech Republic and Slovakia. As

most of the travellers in these countries are first generation

travellers and first generation travellers generally choose

mainstream holidays, sun and beach holidays and round trips

offer the best potential. Demand for niche products is still

relatively small, but interest is expected to increase.

Product Definition

Emerging Eastern EU countries refer to EU countries that are located in the

Eastern part of the EU market. In this study this includes the following

countries: Estonia, Latvia, Lithuania, Poland, Czech Republic, Slovakia, Hungary,

Romania, Bulgaria and Slovenia.

Page 2: CBI Outbound Tourism Poland Baltic States Czech Republic Slovakia Tourism 2013

CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

Figure 1: Emerging Eastern EU countries

Source: Facts Figures Future

The Eastern EU market is an emerging market for outbound travel which still

has to reach maturity in comparison to the outbound markets of other major

EU+EFTA markets. This is because people in the Eastern EU were not able to

leave their countries for years due to political reasons, and did not have the

financial means to do so. However, now that the borders are open and their

economies and incomes are growing, they are increasingly travelling abroad.

Trade and Macro-Economic Statistics

Outbound statistics

Figure 2: Growth of total outbound trips, European regions, 2010-2014, in %

*Including Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania,

Slovakia

Source: European Travel Commission

-4 -2 0 2 4 6 8 10

Southern/Mediterranean

Northern Europe

Western Europe

EU

Eastern Europe*

2010

2011

2012 estimate

2013 forecast

2014 forecast

Page 3: CBI Outbound Tourism Poland Baltic States Czech Republic Slovakia Tourism 2013

CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

Eastern EU region shows highest

growth in outbound trips. According to research by the European Travel Commission, the Eastern EU region had the highest growth in outbound trips in 2012. Growth forecasts for 2013 and 2014 are also highest (Figure 2). This is particularly the result of the rapidly growing economies of Eastern EU markets. Eastern EU markets could, therefore, offer interesting opportunities for DC tourism providers. However, as they are all emerging markets with many travellers who are travelling abroad for the first time (first generation travellers), most long haul destinations are not very well known.

3 promising clusters. In terms of

opportunities, the Eastern EU tourism

market can be divided into 3 most

promising clusters:

1. Poland: volume

2. Baltics (Estonia, Latvia and

Lithuania):

strong growth in GDP and

willingness to travel

3. Czech Republic and Slovakia:

high number of outbound trips per

capita and increasing economies.

The main focus in this Product Fact

Sheet will, therefore, be on these 3

clusters.

Considerations for action

Positive country branding is vital to

increasing awareness of your

destination among first generation

travellers. However, you need both the

public and the private sector.

Therefore, join forces with other

tourism stakeholders in your country

and together invest in country

branding campaigns.

If you are already active in other

EU+EFTA markets, you could duplicate

the business model that you used

there (provided that business model

has proven to be successful). Always

adapt your approach to the segment

you are targeting.

Do not view Eastern EU countries as a

whole homogeneous entity. Despite

some similarities, such as the level of

market maturity and economic growth,

there are also differences which you

should take into account. Therefore.

focus on one or two priority countries.

Figure 3: Outbound trips, Eastern EU

markets, 2007-2011, in millions

Source: WTO

Figure 4: Outbound trips per capita, Eastern

EU markets, 2011

Source: WTO

Poland offers volume. Poland is by

far the largest source market in the

Considerations for action

Approach Polish tour operators who

already offer trips to your region, and

0

2

4

6

8

10

12

14

16

Million

trip

s 2007

2008

2009

2010

2011

0

0,2

0,4

0,6

0,8

1

1,2

1,4

1,6

Outbound trips

per capita

Trips to

developing

countries percapita

Page 4: CBI Outbound Tourism Poland Baltic States Czech Republic Slovakia Tourism 2013

CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

Eastern EU (Figure 3) and is, therefore, one of the most promising countries in that region. A strong decline in outbound trips in 2009 was the result of changes in the exchange rate of the Zloty/US Dollar, rising costs for fuel, and the purchase of modern aircrafts. Outbound trips are expected to increase as a result of maturing travel patterns, growing GDP and strong growth in international aviation capacity. The limited access to aeroplane seats in charters to DCs represents a threat to DC tourism providers, since the market is dominated by a few suppliers who make block bookings of charter allocations (TUI, Thomas Cook). However, scheduled flights by international airlines to and from Poland are growing. In February 2013, for example, the largest airline operator in the Middle East, Emirates, started scheduled services to Poland. This is benefitting Polish and other Eastern EU travellers with direct flights to Dubai and onward travel to Asia, Australia and Africa.

Slovakia and Czech Republic have among the highest outbound trips

per capita. Czech Republic is the second largest Eastern EU source market. Furthermore, Slovakia and the Czech Republic have, together with the Baltic States, the highest number of outbound trips per capita (Figure 4). They also have growing economies and good accessibility to scheduled flights, especially the Czech Republic. Although they tend to travel less to long haul destinations (Czech travellers especially go to Germany, Slovak travellers focus more on other Eastern countries), interest in new destinations is increasing and long haul travel is, therefore, expected to grow. Airlines in the Czech Republic, for example, are promoting undiscovered destinations and this provides opportunities for DCs.

present your tourism product to them.

Evaluate first generation Polish

travellers in order to find out their

interests and requirements and adjust

your product to them.

The increase in airlift is very important.

However, you cannot do this alone.

You need both the public and the

private sector. Therefore, join forces

with other tourism stakeholders in your

country and together lobby airlines,

tour operators and tourism

organisations in order to increase the

airlift. Together, also lobby your own

government to liberalise international

air services as this has been proven to

increase international traffic

significantly.

Approach Czech and Slovak tour

operators and present your tourism

product to them.

The promotion of your destination by

Czech Airlines would be a good way to

create awareness in the Czech

Republic and in Slovakia. However, you

cannot do this alone. You need both

the public and the private sector and

together you should lobby Czech

airlines.

Page 5: CBI Outbound Tourism Poland Baltic States Czech Republic Slovakia Tourism 2013

CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

GDP and international tourism expenditure

Figure 5: GDP growth, Eastern EU markets, 2010-

2015*, real change in %

*2013, 2014, 2015 forecast

Source: Economic Intelligence Unit

Figure 6: International tourism expenditure per

capita, Eastern EU markets, 2011, in €

Source: WTO

The Baltics have the highest GDP

growth. Although Estonia, Latvia and

Lithuania are small in terms of outbound

tourism volume, they have the highest

growth in GDP (Figure 5). People in the

Baltics have relatively high and growing

disposable incomes, and tend to spend more

on international tourism than most other

Eastern EU markets, especially Estonia

(Figure 6). Furthermore, the Baltic States

have good accessibility. The alliance with

flag carriers like Lufthansa, Scandinavian

Airlines (SAS) and Polish Airlines (LOT)

increase the number of scheduled flights and

make long haul destinations more

accessible. Also, the emergence of low cost

carriers such as Ryanair stimulates long haul

tourism to some extent, as some wealthier

Baltic people fly with low cost carriers to

European hubs such as Frankfurt or Helsinki

and from there to South America or Asia.

Outbound travel by Baltic people is expected

to keep increasing as a result of their

growing economies, curiosity for other

countries and cultures, and a maturing travel

market. As well, more people are looking for

cheap long haul flight tickets to exotic

country destinations and stay there two

weeks or longer. DC tourism providers can,

therefore, also find opportunities in the

Baltic States.

Approach Baltic tour operators and present

your tourism product to them.

Baltic travellers are very curious about

other countries and new cultures. It is,

therefore, important to arouse their

interest, for example, by a country branding

campaign that emphasises your cultural

assets. However, you cannot do this alone

and, therefore, you need to join forces with

other tourism stakeholders in your country.

-4

-2

0

2

4

6

8

10

2010

2011

2012

2013

2014

2015

0

100

200

300

400

500

600

Page 6: CBI Outbound Tourism Poland Baltic States Czech Republic Slovakia Tourism 2013

CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

DC destinations

Figure 7: Outbound trips to DCs by region, most promising Eastern EU countries,

2011, in %

Source: WTO

Table 1: Top DC destinations, most promising Eastern EU countries, in 2011,

market share in %*

Country Top 10 DC destinations including market share in total trips to

DCs (in %)

Poland Ukraine(47.7), Croatia (13.7), Turkey (13.1), Egypt (10.5), Tunisia

(2.7), China (1.9), Morocco (1.4), Montenegro (1.1), Thailand (1.0),

India (0.8)

Estonia Turkey (34.7), Egypt (18.9), Ukraine (18.1), Thailand (9.6), Croatia

(6.2), India (2.8), Morocco (2.7), Cambodia (1.0), South Africa

(0.7), Albania (0.7)

Latvia Turkey (38.6), Ukraine (32.7), Croatia (7.8), China (5.1), Thailand

(4.5), India (2.6), Kazakhstan (2.0), Belarus (1.4), Armenia (0.9),

Cuba (0.6)

Lithuania Turkey (39.0), Ukraine (25.8), Croatia (11.0), China (4.0), Thailand

(3.3), Montenegro (2.7), Kazakhstan (2.4), Morocco (1.9), India

(1.9), Belarus (1.7)

Czech

Republic

Croatia (54.4), Turkey (18.3), Tunisia (5.7), Ukraine (4.4), Thailand

(2.5), Montenegro (2.1), China (1.7), India (1.0), Morocco (0.9),

Serbia (0.8)

Slovakia Ukraine (50.7), Croatia (30.1), Turkey (10.8), Tunisia (1.8),

Montenegro (1.0), China (0.8), Thailand (0.8), Morocco (0.6),

Serbia (0.6), Cuba (0.4)

*Data is not available for all countries

Source: WTO

DCs in Europe most popular among Polish travellers (Figure 7). This is mainly the result of the large share of neighbouring country Ukraine (Table 1). Many Polish travellers go to Ukraine for business, shopping or visiting family and friends. For

leisure holidays, Croatia, Turkey and Egypt are popular. Turkey has gained popularity at

Research the travel and tourism preferences and expectations of Polish consumers and adjust your tourism offer accordingly. Study, for example, websites of large Polish tour operators, as these often reflect the preferences and expectations of consumers.

Join forces with other local tourism providers, tourism boards and tourism

0

0,1

0,2

0,3

0,4

0,5

0,6

0,7

0,8

0,9

Poland Estonia Latvia Lithuania Czech

republic

Slovakia

Europe

Africa

Asia

Central America

South America

Page 7: CBI Outbound Tourism Poland Baltic States Czech Republic Slovakia Tourism 2013

CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

the cost of Egypt and Tunisia because of political unrest. The massive switch to Turkey was possible because of well-developed tourism infrastructure in combination with offers adjusted to the expectations of Polish tourists. Large Polish tour operators, especially TUI Poland, are the main drivers of outbound tourism. They carefully monitor customer preferences in order to tailor their offer to customers’ expectations, but they also actively promote new destinations. Polish travellers are expected to continue visiting their traditional destinations such as Turkey and Egypt, but also to penetrate other less known destinations.

DCs in Asia most popular among Baltic travellers. Baltic travellers prefer DCs in Asia. Turkey is by far the most popular destination, because of distance, direct flights, and price. Also, Egypt and Morocco are popular. However, due to political unrest in Northern Africa, there has been a shift to other destinations further away such as Thailand and Bali. Such exotic destinations are especially popular in winter. Mainstream tour operators are successfully selling long haul destinations such as Thailand and the Maldives. There are, for example, charter flights from Riga (Latvia) to Bangkok. Other

popular long haul destinations are India and Vietnam. Increased interest has been noticed in South America. These developments in long haul tourism offer interesting opportunities.

Czech and Slovak travellers prefer

holiday destinations close to their country. The most popular DCs for Czech and Slovak travellers are close to their country: Ukraine, Croatia and Turkey. Overseas destinations are expected to gain market share in the Czech Republic, as tickets have become much more accessible and airlines are promoting exotic and undiscovered destinations such as adventurous Colombo in Sri Lanka and exciting Bangkok in Thailand. However, they do not take consumer preferences into account. Outbound travel in Slovakia is expected to face some difficulties as Czech Airlines reduced scheduled air travel destinations from and to Slovakia.

promotion organisations and together improve the tourism infrastructure in your country.

Approach mainstream tour operators in the

Baltics and offer them unique, attractive products. It is quite difficult to get involved with them and margins are generally low, but if you persevere you will get volume.

As long haul destinations are more popular in winter, you should intensify your promotion in summer and autumn.

Research the travel and tourism preferences

and expectations of Czech and Slovak consumers and adjust your tourism offer accordingly, as many mainstream tour operators do not take these into account. Consequently, invest in marketing on the Czech and Slovak market, for example, by participating in tourism trade events.

For more information on tourism trade statistics and macro-economic indicators

in the EU+ EFTA market in general, refer to CBI’s ‘Trade watch’ for tourism.

Page 8: CBI Outbound Tourism Poland Baltic States Czech Republic Slovakia Tourism 2013

CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

Product Specifications

Traveller profile and requirements Sun and beach holidays offer the best potential in Eastern EU markets. Also, round trips offer opportunities as many Eastern EU travellers are curious about other cultures. Demand for niche products is still relatively small, but interest is expected to increase quickly. This is because the tourism lifecycle has accelerated in Eastern EU markets. They jump readily into new phases.

Considerations for action

If you have a sun and beach destination,

emphasise this in your marketing message.

Tour operators should compose attractive

round trip packages that include the most

interesting natural and cultural highlights of

your destination/region.

Poland Many first generation travellers

interested in mainstream holidays. Most Polish long haul travellers are first generation travellers interested in mainstream sun and beach holidays. They generally have higher incomes and often travel in couples. A large proportion of Polish tourists choose all-inclusive sun and beach options in 4 and 5 star hotels as this guarantees a high standard holiday which carries much prestige. Apart from going to the beach, Polish travellers also like shopping, dining, sightseeing and visiting historical places. A strong niche market is religious tourism. However, this mainly concerns travel to catholic places in Europe, not long haul. Due to market size and increasing maturity, interest in other special interest segments such as adventure tourism and emerging destinations is expected to increase.

Poles are price sensitive, especially for travel. As Polish travellers are very price sensitive, tour operators underline price promotions. Since 2009, ‘first minute’ offerings gained popularity. This means anticipated sales of next season’s trips, often purchased in autumn a year before the planned trip. Polish customers are attracted to such offering as they guarantee a fixed price, irrespective of any possible rise in costs.

Polish language important. Polish tourists strongly appreciate having information in Polish.

Considerations for action

Start with targeting Polish mainstream

tourists.

Compose travel packages with options for

different types of accommodation, including

4 and 5 star hotels.

Have your product offer and prices for the

next year ready a year in advance.

Make use of price promotions, for example,

first minute offerings or early booking

discounts.

Have (the most important part of) your

website and information material available in

Polish. Offer the option of Polish speaking

guides. Consider working with freelancers to

maintain your company’s flexibility.

Page 9: CBI Outbound Tourism Poland Baltic States Czech Republic Slovakia Tourism 2013

CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

Baltics Baltic people are very curious and

willing to travel. Their growing economies and disposable incomes encourage them to travel more. Typical long haul travellers are aged over 35 since most younger people lack the money for a less conventional holiday. They generally live in bigger towns and cities and travel in couples or as a family. A number of pensioners are eager travellers too. Although the effects of the crisis are still present, even for wealthier customers, most Baltic people still travel once a year with that single trip being longer than before, generally between 10 days and two weeks.

Sun and beach holidays are most in demand, but niche markets are gaining ground. Sun and beach holidays are the most popular tourism segment, although many Baltic travellers want mixed tailor-made trips combining sun and beach with sightseeing and cultural activities. Baltic travellers are in general more interested in niche markets than other Eastern EU travellers. A dedicated minority is interested in niche markets such as adventure, golf or diving. Niche agencies reported that demand is growing by 10-15% per year. Also, more conference and incentive trips are being organised to long haul destinations, especially to Asia. Outbound business travel

is getting stronger and people tend to combine a business trip with an extension for sightseeing or even a beach holiday.

Baltic travellers value quality, comfort and variety, but also a low price. The most important requirement for Baltic travellers is to have excellent service and maximum comfort at the lowest price. They also want a variety of activities, from sightseeing and culture to shopping and sports. Many agencies in the Baltics reported that their clients prefer package holidays, especially when sunny and warm destinations are involved. Baltic travellers are ok with having English speaking guides as they generally have good English language skills.

Considerations for action

Target Baltic consumers who are aged over

35, including pensioners.

Combine sun and beach with sightseeing,

cultural and/or adventure activities.

Tour operators should compose basic travel

programmes that include the most

interesting natural and cultural highlights of

your destination/region. In addition, offer

optional add-ons (‘building bricks’) that

include niche activities such as hiking, golf or

diving so that Baltic travellers can compose

their own package that meets their interests.

Compose attractive tourism packages for

conference and incentive trips or make your

accommodation suitable for conferences

(develop, for example, a conference hall if

you have the space).

Focus on providing high quality services,

comfort and a competitive price.

Compose tourism packages that include a

wide range of activities.

Have English speaking guides available.

Czech Republic and Slovakia Czech and Slovak travellers are more

interested in nature and

active/sports related holidays than

other Eastern EU markets. Sun and

beach holidays are an important holiday

segment in the Czech Republic and

Slovakia. However, Czech and Slovak

consumers are also very interested in

active/sports-related holidays. Also

health and wellness and cultural visits

are drivers for outbound trips. Czechs

and Slovaks are by nature conservative

Considerations for action

Adapt your product to the interests of

Czech and Slovak travellers, this means,

besides sun and beach activities, also

offering nature and active/sports related

activities.

Try to get positive recommendations from

Czech/Slovak travellers who have already

made use of your product. Place them on

your website and share them on social

media platforms such as Facebook.

Page 10: CBI Outbound Tourism Poland Baltic States Czech Republic Slovakia Tourism 2013

CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

and quite loyal to destinations which are

known and recommended by their friends

and relatives.

Package holidays are again gaining

in importance. Despite the trend

towards individual holidays, many Czech

and Slovak consumers returned to using

the services of tour operators due to the

uncertain economic environment.

Package holidays enable them to budget

and manage their expenditure more

easily. Furthermore, Czech and Slovak

travellers are not used to adventurous

travel without organised groups, and

trust Czech/Slovak travel agencies and

tour operators to plan their trips for

them.

Partner with Czech/Slovak tour operators

so that they can sell your products in their

local market.

Legal requirements No legal requirements. There are no legal

requirements for long haul tourism as it is offered outside the EU market. However, there are some EU travel and consumer laws that are applicable to tourism within the EU, for example, the Travel Package Directive which protects consumers who purchase package travel within the EU.

Considerations for action

Study the Travel Package Directive. Although it is not applicable to long haul tourism, it can help you to better understand the EU tourism market.

Study the terms and conditions of major

Eastern EU tour operators as these generally

reflect EU travel and consumer laws.

Furthermore, they also give insights into

what they expect from trade partners.

Non-legal requirements Sustainability does not play a large role

yet. In comparison with more mature, Western EU travel markets, sustainability plays a minor role in Eastern EU countries. Eastern EU travellers are not very aware of their impact on the places that they visit during their holidays. Furthermore, price is a very important deciding factor when choosing a holiday and sustainable holidays are often more expensive in these countries. Due to this lack of interest, Eastern EU tour operators offer very few sustainability trips.

Considerations for action

Although sustainability does not play a large

role yet in Eastern EU travel markets, it is

recommended that you integrate sustainable

elements into your product. This will not only

give you a competitive advantage, but will

also increase your opportunities in Western

EU travel markets where sustainability is

playing an increasing role.

For more information about expectations of tourism buyers in the EU+EFTA

tourism market in general, refer to CBI’s ‘Buyers’ Black Box’ for tourism.

Market Trends

Social market drivers

Health and wellness tourism is gaining

ground. As busier lives are creating a

demand for ways to reduce stress and relax,

the health and wellness lifestyle is spreading

among different consumer groups, even in

Eastern EU markets. However, Eastern

Europe itself has many natural resources for

health and wellness tourism which gives

them a large competitive advantage over DC

destinations.

Considerations for action

Tour operators could add health and wellness

elements to their packages, or at least offer

optional modules with health and wellness

aspects.

Accommodation providers could include

health and wellness elements to their

accommodation, for example, facial

treatments or spas.

Page 11: CBI Outbound Tourism Poland Baltic States Czech Republic Slovakia Tourism 2013

CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

Technology market drivers

Social networks are attracting Internet

users in Eastern EU countries, also for

travel purposes. People use social

networks, for example, to gain inspiration for

their next holiday destination and to learn

about the experiences of other long haul

travellers. Facebook is the most popular

social network. Although the use of

Facebook is growing rapidly, some local

networks are also doing well and sometimes

their popularity still exceeds the popularity

of Facebook (like Draugiem in Latvia and NK

in Poland). Also, video content is increasing

steadily, both video advertising and video

content, for example, on YouTube. Video

content has proved to work well for branding

campaigns in the Eastern EU market.

Considerations for action

Open a Facebook company page for your

company in order to increase awareness,

obtain information for product development,

and increase website traffic. Post interesting

news on your page, for example, about

product development or customer reviews,

and keep your page up-to-date.

Allocate some of your marketing budget to

video content, for example, for making high

quality videos of your product and posting

them on YouTube.

Economic market drivers

Recession changes travel habits. Although Eastern EU markets have growing economies, the effects of the recession are also noted here. Due to the economic uncertainty, demand for package holidays has increased at the cost of customised travel packages as they are generally cheaper. Domestic/regional tourism has gone up, whereas long haul has somewhat decreased. Eastern EU travellers are also trading down in accommodation and they are shortening the length of their holidays.

Low cost carriers continue to grow. Scheduled airlines have a market share of around 50% in Eastern EU markets, versus 25% for low cost carriers and 20% for charters. The recession is helping low cost airlines to gain share from scheduled airlines. Growth is especially stimulated by the expansion of current low cost players such as Ryanair and Wizz Air. Low cost carriers could stimulate long haul tourism as well, since some wealthier Eastern EU travellers will fly with low cost carriers to European hubs and from there to long haul destinations.

Poland: growing demand from families with children who are interested in special tourist attractions. Next to the two important traveller groups of couples and singles, families with children are also becoming an important travel group in Poland as there is a rising trend towards Polish parents travelling with small children (increase of 28% in 2011). They travel especially during summer holidays and organise their trips through tour operators. Singles who travel are mainly people who visit their families and friends living in other countries. Couples comprise a tourist group who combine different purposes, both

Considerations for action

Offer lower budget products/packages, for

example, compose travel packages which

include stays in lower budget hotels or have

rooms available in different price classes.

Consider advertising at airports or in

magazines published by low cost carriers in

order to increase awareness of your

destination.

Adapt your product to the needs and interest

of families with children. Accommodation

providers could offer, for example, family

rooms and organise entertainment for

children.

Page 12: CBI Outbound Tourism Poland Baltic States Czech Republic Slovakia Tourism 2013

CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

visiting and sightseeing. Baltics: new way of reaching

destinations. Baltic consumers who want to travel are increasingly asking for new, attractively-priced destinations. Booking package trips that include regular flights or booking travel components independently can end up being rather expensive. The challenge for tour operators is to find such destinations while ensuring an acceptable price and good quality. One of the largest Baltic tour operators, Novatours, developed a new way of offering new trips at a good price. They offer a new destination at a specific time (for example once a week) with one or two airport transfers (layovers of one hour). Their turnover increased significantly thanks to this new type of offering. This kind of trip is expected to become one of the trends in 2013.

Approach Baltic tour operators and present

your tourism product to them. Come up with

a good sales pitch in which you show them

why your product is so special.

For more information on market trends on the EU+EFTA tourism market in

general, refer to CBI’s ‘Trend Mapping’ for tourism.

Market Channels and Segments

Tour operators important trade channel.

Tour operators specialised in your country/region or in a specific niche market which matches your product offer one of the best opportunities as they are generally more dependent on local partners than mainstream tour operators. However, as demand for niche products is still relatively small in Eastern EU countries, the number of niche tour operators is also small. Travel distribution mainly goes through traditional mainstream players such as TUI or Neckermann that offer standard products. However, as long haul tourism is an emerging market in Eastern EU countries, many destinations are not even offered by mainstream tour operators yet. They are, therefore, also an important trade channel, although it is generally more difficult to engage with them than with niche tour operators.

Considerations for action

Tour operators and DMCs should try to

partner with Eastern EU tour operators, for

example, by joining trade associations,

attending relevant trade fairs or visiting a

number of selected tour operators personally

by organising road shows in their target

Eastern EU country.

Local accommodation and excursion

providers should focus both on local tour

operators and on DMCs and Eastern EU tour

operators.

Sources that can help you find tour operators in the most promising Eastern EU

markets are:

Baltics

Association of Latvian Travel Agents and Operators (ALTA) -

http://www.alta.net.lv - go to ‘ALTA’ and ‘ALTA members’. Refine your

search by ‘Tour operators’ or ‘Outgoing travel’.

B2B Baltic.travel - http://b2b-baltic.travel - assists travel companies from all

over the world to attract more Baltic travellers. They also organise the

Travel Trade Roadshow.

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CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

Balttour - http://www.balttour.lv - tourism trade event in Latvia, held

annually, in February, in Riga. Go to ‘Visitors area’ and select ‘List of

participants’.

Estonian Travel and Tourism Association (ETFL) - http://www.etfl.ee - go to

‘Members’ for a list of members, including tour operators.

Tourest - http://www.tourest.eu - tourism trade event in Estonia, held

annually, in February, in Tallinn. Go to ‘2013 catalogue’ for information

about exhibitors.

Vivatur - http://www.visusplenus.lt/vivattur - trade fair of tourism, sport

and leisure in Lithuania, held annually, in February, in Vilnius.

Czech Republic and Slovakia

Association of Czech Travel Agencies (ACCKA) - http://www.accka.cz - go to

‘Clenové ACCKA’ for a list of member companies.

Go - http://www.bvv.cz/en/go-regiontour/2013 - tourism trade event in the

Czech Republic, held annually, in January, in Brno. Go to ‘Go-regiontour

2013’, ‘My i-Catalogue of companies’, ’02 Tour operators-travel agencies’

and consequently select tour operators for your region to see a list of tour

operators and travel agencies that offer trips to your region.

Holiday World - http://www.holidayworld.cz - central European tourism

trade event, held annually, in February, in Prague, Czech Republic. Go to

‘List of exhibitors’.

ITF Slovakiatour - http://www.incheba.sk - tourism trade event in Slovakia,

held annually, in January, in Bratislava. Search for ITF Slovakiatour and

select ‘List of exhibitors’.

Madi Travel market - http://www.madi.cz - tourism trade event in the Czech

Republic, held annually, in October, in Prague. Go to ‘Madi travel market’,

select ‘Exhibitors’ and click on ‘List of exhibitors’.

Slovak Society of Tour operators and travel agencies (SACKA) -

http://www.sacka.eu - go to ‘Members List’, ‘Outgoing tour operators’ and

refine your search by selecting your destination and, if relevant, your

product category for a list of Slovakian tour operators who offer such

products to your destination.

Poland

Gdansk Tourism Fair (GTT) - http://gtt.amberexpo.pl - one of the largest

tourism trade fairs in Poland with separate halls for sports/active, boat,

honeymoon and event tourism. Held annually, in April, in Gdansk. Go to

‘Exhibitors’ and select ‘Exhibitor list’.

International Travel Show TT Warsaw - http://www.ttwarsaw.pl - leading

Polish and Eastern EU tourism trade fair, held annually, between September

and November, in Warsaw. Go to ‘For visitors’ and select ‘List of exhibitors’.

Polish Outgoing Tourist Workshop - http://outgoingpoland.pl -

workshop/networking event where foreign tourism suppliers can meet Polish

leisure and MICE tour operators. This workshop is held annually, in March, in

Warsaw and Katowice.

Polish Chamber of Commerce (PIT) - http://pit.org.pl - click on the English

version and go to ‘Member list’ for an overview of Polish tour operators.

You can also look for tour operators by searching on search engines, such as

Google. Search with English or local keywords and in advanced search narrow

your domain to the extension of your target market, for example, ‘.pl’ for

Poland, ‘.ee’ for Estonia or ‘.cz’ for the Czech Republic.

Rapid development of Internet sales

channel. Although Internet penetration in

Eastern EU markets is lower than the

Considerations for action

Make sure you have a professional, high

quality website with quality photos and

videos that can enhance the experience

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CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

average of the EU27 (55% versus 63%), it is

growing rapidly. This means that there is still

a huge potential as a distribution channel.

Internet penetration is highest in Slovakia

and Estonia (Figure 8). Furthermore, the

recession is stimulating Eastern EU travellers

to search for the best travel deals through

the Internet. Transportation dominates

Internet sales, followed by travel retail.

Around half of tourism Internet sales in

Eastern EU markets are bought through

intermediaries and the other half directly

from suppliers. Internet sales are expected

to become more important than the

traditional distribution channel of tour

operators.

Figure 8: Internet penetration, Eastern EU, June

2012, in %

Source: Internetworldstats

of your product.

Invest in online promotion such as

Search Engine Optimisation.

As English language skills are not always

good in Eastern EU markets, it might be

a good idea to translate your website into

the local language, especially in the case

of Poland, the Czech republic and

Slovakia. English language skills in the

Baltics are generally better.

For more information on market channels and segments on the EU+EFTA

tourism market in general, refer to CBI’s ‘Market Channels and Segments’ for

tourism.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

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CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

Market Competitiveness Figure 9: Scores of the Travel & Tourism Competitiveness Index, 3 most popular

DCs per region for Eastern EU markets, 2013

Source: Travel & Travel Competitiveness Report 2013

The Travel & Tourism Competitiveness

Index gives you insights into the competitiveness of your country. The TCCI assesses to what extent a country’s travel and tourism’s 1. regulatory framework, 2. business environment and infrastructure, and 3. human, cultural and natural resources make it attractive to develop the travel and tourism sector. When looking at the most visited DCs by region for Eastern EU travellers, Croatia scores best in the TCCI index (Figure 9). This is especially due to its excellent tourism infrastructure, its rich cultural resources (it has 18 cultural world heritage sites), its sustainability efforts, and good health and hygiene standards. Thailand comes second thanks to its rich natural resources and a friendly attitude towards tourists. The TTCI index is interesting for Eastern EU tour operators as it gives them information about which countries/regions are attractive as new tourism destinations. It is also very useful for DC tourism providers as a benchmark and it gives them insights in

which areas their country is performing well and in which areas they need to improve.

Considerations for action

Identify and focus on your country’s key

competitive advantages over other

countries and differentiate the traveller’s

experience in your country from the

experience he would have elsewhere.

Use the TCCI as a benchmarking tool to see

in which areas your country is performing

well and in which areas it needs to improve.

Go to the Travel and Tourism

Competitiveness Report of the World

Economic Forum for more detailed

information about the performance of your

country and competing countries.

For more information on market competitiveness on the EU+EFTA tourism

market in general, refer to CBI’s ‘Market Competitiveness’ for tourism.

0

0,5

1

1,5

2

2,5

3

3,5

4

4,5

5

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CBI Product Factsheet: Outbound tourism from emerging Eastern EU countries

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

Useful Sources

Cestovatel - http://www.cestovatel.cz - consumer travel magazine in Czech

Republic with an online community that publishes an event calendar and

interesting news on the Czech travel and tourism market (in Czech).

Euromonitor - http://www.euromonitor.com - publishes (paid) reports about

many sectors, including travel and tourism. Go to ‘Browse the industry

reports’, select ‘Travel and tourism’, ‘Tourism flows outbound’ and ‘Eastern

Europe’ for an overview with available country reports on outbound tourism.

A summary of the main market developments is available for free.

Go Reisiajakiri - http://reisiajakiri.gomaailm.ee - online travel magazine in

Estonia. Also good source to find different travel companies in Estonia by

destination (in Estonian).

Keliones ir Pramogos - http://www.kelionesirpramogos.lt - consumer travel

magazine in Lithuania focussed on adventurous travel. Writes about many

DC destinations (in Lithuanian).

Podroze - http://www.podroze.pl - one of the most read consumer travel

magazines in Poland with an online community which publishes interesting

news on the Polish travel and tourism market (in Polish).

VisitBritain - http://www.visitbritain.org - publishes interesting market

intelligence reports about different countries. Go to ‘Insight and Statistics’

and select, for example, ‘Markets’ for market reports, including Czech

Republic and Poland.

Voyage - http://www.voyage.pl - one of the most read consumer travel

magazines in Poland with an online community that publishes interesting

news on the Polish travel and tourism market. (in Polish)

This survey was compiled for CBI by Facts Figures Future

in collaboration with CBI sector expert Theo Nagel.

Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer


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