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Market and Trade Profile USA
Market and
Trade Profile: USA
USA
Market and Trade Profile USA
• Chapter 1: Inbound market statistics provides insights on key statistics about
American travellers and who they are. It takes a look at Britain and its
competitive set as well as activities of American visitors in the UK.
• Chapter 2: Understanding the market takes a close look at American
consumer trends, booking, planning and further travel behaviour of this source
market. Perceptions of Britain held by Americans are also highlighted.
• Chapter 3: Access and travel trade shows how Americans travel to the UK,
how to best cater for their needs and wants during their stay and gives insights
into the American travel trade. Further ways of working with VisitBritain and other
useful research resources are pointed out.
2
Overview
Market and Trade Profile USA
Contents
Chapter 1:
Inbound market statistics
1.1 Key statistics 6
1.2 Visitor demographics 17
1.3 Britain & competitors 21
1.4 Inbound activities 23
Chapter 2:
Understanding the market
2.1 Structural drivers 31
2.2 Consumer trends 35
2.3 Booking and planning 38
2.4 Reaching the consumer 41
2.5 Perceptions of Britain 45
Chapter 3:
Access and travel trade
3.1 Access 52
3.2 Travel Trade 56
3.3 Caring for the consumer 62
3.4 Working with VisitBritain 64
3.5 Useful research resources 65
3
Market and Trade Profile USA
Inbound market
statistics
Chapter 1:
4
Market and Trade Profile USA
Chapter summary
• The American outbound market is forecasted to account for 131
million trips abroad with at least one overnight stay by 2020.
• The UK was the 2nd most popular European destination for
American overnight visitors in 2016, holding a market share of
17%, behind France in 1st place (18%).
• Americans rank globally in 2nd place for international tourism
expenditure with more than US$123.6bn.
• The USA was the 2nd largest inbound source market for the UK
for volume and the most valuable source market for visitor
spending in the UK in 2016.
• France (57%), Italy (47%), Germany (45%) and Spain (44%)
were the most considered competitor holiday destinations by
American holidaymakers to Britain.
• Almost six out of ten departing American travellers would be
very likely to recommend Britain for a holiday or short-break,
which is significantly higher than average (45%).
5
Chapter 1: Inbound market statistics
Source: International Passenger Survey by ONS, Oxford Economics, UNWTO, VisitBritain/IPSOS 2016, CAA 2016
The USA is the UK’s most
valuable source market for visitor
spending
Market and Trade Profile USA
Key insights• Almost 3.5 million Americans visited the UK in 2016, which is an
increase of 6% compared to the previous year. This makes the
USA the second largest source market.
• Holiday visits continue to lead in terms of volume of visits from
the American market. 45% of all visits to the UK from the USA
were made for holiday purposes, followed by 25% which were
visits to friends and/or relatives in 2016.
• American visitors spent an average of 8 nights per visit in the
UK in 2016, longer than the global average. London is the
leading destination for a trip to Britain, based on the number
of nights, but Scotland and the South East of England are
also popular.
• Two forms of accommodation dominate the picture with 39%
of nights spent in a hotel or a guest house and 38% of nights
spent for free with relatives or friends.
6
Chapter 1.1: Key statistics
Source: International Passenger Survey by ONS
The USA was the UK’s 2nd largest
source market for visits
in 2016
Market and Trade Profile USA
1.1 Key statistics: global context and 10 year trend
7
Source: International Passenger Survey by ONS, UNWTO, Oxford Economics
Measure 2016
International tourism
expenditure (US$bn)123.6
Global rank for international
tourism expenditure2
Number of outbound
overnight visits (m)104.7
Most visited destination Mexico
Global context Inbound travel to the UK overview
Measure Visits
(000s)
Nights
(000s)
Spend
(£m)
10 year trend
2007 3,551 28,856 2,537
2008 2,950 24,742 2,223
2009 2,877 23,771 2,173
2010 2,711 22,739 2,133
2011 2,846 23,333 2,362
2012 2,840 23,568 2,436
2013 2,778 21,927 2,539
2014 2,976 27,975 2,944
2015 3,266 27,239 3,010
2016 3,455 28,394 3,354
Share of UK total
in 20169.2% 10.2% 14.9%
Market and Trade Profile USA
1.1 Key statistics – volume and value
8
Source: International Passenger Survey by ONS, *small base
Measure 2016 Change
vs. 2015
Rank out of
UK top
markets
Visits (000s) 3,455 6% 2
Nights (000s) 28,394 4% 1
Spend (£m) 3,354 11% 1
Inbound volume and value Nights per visit, spend
Averages by
journey purpose
in 2016
Nights
per
visit
Spend
per
night
Spend
per
visit
Holiday 7 £125 £915
Business 6 £257 £1,505
Visiting Friends/
Relatives11 £52 £578
Study* 42 £122 £5,108
All visits 8 £118 £971
Market and Trade Profile USA
1.1 Key statistics: journey purpose
9
Journey purpose 2016
USA All markets
Source: International Passenger Survey by ONS; repeat / first time visitors question asked in 2015
• Holiday visits continue to lead in terms of volume of
visits from the American market. This segment has
shown strong growth since 2013, resulting in almost
1.6 million holidays from the USA in 2016.
• The number of VFR and business trips is still lower
than it was at the higher level in 2006 prior to the
financial crisis.
45%
20%25%
2%
8%
37%
24%
31%
1%6%
0%
10%
20%
30%
40%
50%
60%
Holiday Business VFR Study Misc.
Sh
are
of
vis
its
Journey purpose trend (visits 000s)
• 45% of all visits to the UK from the USA were
made for holiday purposes, followed by 25% which
were visits to visit friends and/or relatives, in 2016.
• 58% of holiday visits from the USA to the UK (excl.
UK nationals) in 2015 were made by repeat
visitors. On average an American holidaymaker
came 2.6 times to the UK in the past 10 years.
• Business visitors and those coming to visit friends
or relatives who live in the UK are more likely to be
repeat visitors (87% and 84% respectively).
1,563
688
860
56
288
0200400600800
1,0001,2001,4001,6001,800
Holiday Business VFR Study Misc.
Market and Trade Profile USA
16%
26%
35%
22%20%
27%28%
25%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Jan-Mar Apr-Jun Jul-Sep Oct-Dec
Sh
are
of
vis
its
1.1 Key statistics: seasonality
10
Seasonality 2016
USA All markets
Source: International Passenger Survey by ONS
• The summer quarter remains the most important
period for Americans to visit the UK. In 2016, 35% of
visits from the USA to the UK were made in this third
quarter, followed by 26% in the spring quarter.
Americans visit the UK less often in the low seasons
compared to the average international visitor.
• The volume in the third quarter has recovered more
strongly than the other quarters since the decline
immediately following the financial crisis. Despite this
positive development the number of American summer
visits to the UK remains below the level in 2006.Seasonality trend (visits 000s)
552
914
1,222
768
0
200
400
600
800
1,000
1,200
1,400
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Jan - Mar Apr - Jun Jul - Sep Oct - Dec
Market and Trade Profile USA
39%
38%
8%
7%
5%
1%
0.5% 0.3%2%
Hotel/guest house Free guest with relatives or friends
Hostel/university/school Rented house/flat
Bed & Breakfast Own home
Paying guest family or friends house Camping/caravan
Other
1.1 Key statistics: length of stay and accommodation
11
Source: International Passenger Survey by ONS
Accommodation stayed in, 2016
(nights, %share)
• American visitors spent on average 8 nights per visit
in the UK in 2016.
• The most common length of stay for US travellers in
the UK was 4-7 nights, followed by short trips of 1-3
nights.
• Two forms of accommodation dominate the picture
with 39% of nights spent in a hotel or a guest house
and 38% of nights spent for free in the house of
relatives or friends.
Duration of stay trend (visits 000s)
23
1,108
1,234
735
355
0
500
1,000
1,500
Nil nights 1-3 nights 4-7 nights
8-14 nights 15+ nights
Market and Trade Profile USA
1.1 Key statistics: regional spread
Region* Nights stayed
(000)
Visits (000)
Total 28,394 3,455
Scotland (SC) 4,109 451
Wales (WA) 410 85
Northern Ireland (NI) 316 54
London (LDN) 12,435 2,322
North East (NE) 612 39
North West (NW) 1,833 191
Yorkshire (YO) 484 99
West Midlands (WM) 926 149
East Midlands (EM) 657 74
East of England (EoE) 1,526 191
South West (SW) 1,513 214
South East (SE) 3,339 427
Nil nights (Nil)* N/A 23
12
Nights (% share)
Source: International Passenger Survey by ONS * The region is based on the location in which the visitor stayed overnight
Visits to the UK in 2016
Market and Trade Profile USA
1.1 Key statistics: regional spread and top towns and cities
13
Source: International Passenger Survey by ONS
Town Overnight visits (000s)
London 2,322
Edinburgh 305
Glasgow 102
Inverness 95
Manchester 82
Top towns and cities visited 2016 • London is the leading destination for a trip to Britain,
accounting for 44% of visitor nights. This share is
even higher among business travellers (55%) and
holiday makers (50%).
• Scotland is relatively popular among American
travellers: 14% of nights were spent in Scotland,
compared to a global average of 8% of all
international nights spent in the UK.
• South East is the most popular region in England,
outside London (more information can be found on the
previous page).
• Visits from the USA have an above average
propensity to feature rural and coastal areas of Britain
(see next page for more information).
Regional spread 2016
14%
1%
44%
38%
1%
8%3%
40%
49%
1%
0%
10%
20%
30%
40%
50%
60%
Scotland Wales London Rest OfEngland
NorthernIreland
Sh
are
of
nig
hts
USA All markets
Market and Trade Profile USA
1.1 Key statistics: visits to coast, countryside and villages
14
Source: International Passenger Survey by ONS 2016
13%
10%
18%
14%
2%
2%
17%
13%
20%
13%
27%
18%
4%
2%
27%
18%
0% 5% 10% 15% 20% 25% 30%
All journey purposes: Went to countryside or villages
All journey purposes: Went to the coast or beaches
Holiday: Went to countryside or villages
Holiday: Went to the coast or beaches
Business: Went to countryside or villages
Business: Went to the coast or beaches
VFR: Went to countryside or villages
VFR: Went to the coast or beaches
USA All markets
Propensity to visit coast, countryside and villages
Market and Trade Profile USA
1.1 Key statistics: use of internal modes of transport
15
Source: International Passenger Survey by ONS 2013
Propensity to use internal modes of transport
2%
53%
28%
32%
8%
4%
8%
15%
2%
4%
60%
30%
48%
9%
5%
12%
2%
3%
0% 10% 20% 30% 40% 50% 60% 70%
Domestic flight
Bus, Tube, Tram or Metro Train(within town/city)
Train (outside town/city)
Taxi
Public bus/coach (outsidetown/city)
Private coach/minibus (forgroup only)
Hired self-drive car/vehicle
Car/vehicle you/group broughtto the UK
Ferry/boat
USA All markets
Market and Trade Profile USA
1.1 Key statistics: purchase of transport and package tours
16
International Passenger Survey by ONS, VisitBritain/IPSOS 2016, base: visitors
Transport services purchased before or
during trip (%)
Proportion of visits that are bought as
part of a package or all-inclusive tour in
2016
1%
11%
1%
5%
2%
6%
1%
14%
1%
9%
6%6%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Business Holiday VFR Study Misc. Alljourney
purposes
USA All markets
50%
33%
51%
22%
63%
13%
49%
12%
52%
20%
26%
52%
27%
31%
36%
29%
24%25%27%
15%
0%
10%
20%
30%
40%
50%
60%
70%
Pre During Pre During Pre During Pre During Pre During
Transportwithin
London
Train Travel Airporttransfer
Coach travel Car hire
USA All markets
To be defined as a package, a trip must be sold at an inclusive price covering both fares to and
from the UK and the cost of at least some accommodation. While some respondents may not know
the separate costs of their fares and their hotel because they bought several air tickets and several
sets of hotel accommodation from their travel agent, the ONS definition of a package is that the
costs cannot be separated.
Market and Trade Profile USA
Visitor characteristics
• Business visitors are more than two times as likely to
be men than women.
• American visitors tend to be older than the average
visitor to the UK: 49% of American visitors were aged
45+ compared to a total average of 39%
• Within the USA, the states of California and New York
are the largest source markets for visitors to the UK.
• 85% of visits from American residents to the UK were
made by American nationals, 7% by British nationals.
• Almost 6 out of 10 American holiday visitors (excl. UK
nationals) are making a repeat visit to Britain.
• 93% of departing American travellers are either ‘very’ or
‘extremely’ likely to recommend Britain for a holiday or
short-break.
• 91% of departing Americans felt ‘very‘ or ‘extremely‘
welcome in Britain.
17
1.2 Visitor demographics
Source: International Passenger Survey by ONS, CAA 2016
93%‘very’ or
‘extremely’ likelyto recommend Britain
in 2016
Market and Trade Profile USA
1.2 Visitor demographics: gender and age groups
18
Source: International Passenger Survey by ONS
Visitor demographics:
Gender ratio of visits from the USA:
46% women, 54% men
Age group trend
28%
50% 53%58%
47%
20%
51% 56% 53%42%
0%
20%
40%
60%
80%
Business Holiday VFR Study Misc.
Women (% share of visits by journey purpose)
USA All markets
72%
50% 47% 42%53%
80%
49% 44% 47%56%
0%
20%
40%
60%
80%
100%
Business Holiday VFR Study Misc.
Men (share of visits by journey purpose)
USA All markets
57
309
670
713
818
531
353
0
100
200
300
400
500
600
700
800
900
2002 2005 2008 2011 2014
Vis
its
(0
00
s)
0 -15 16-24 25-34
35-44 45-54 55-64
65+
Market and Trade Profile USA
High
Medium
Low
Visits in 000s | % share of visits
19
1.2 Visitor demographics: origin
Source: International Passenger Survey by ONS
Visits to the UK in 2014 (000s)
• The largest proportion of
American visitors who came
to the UK reside in California
and New York. These two
states generate almost a
quarter of all inbound visits.
• Connectivity reflects these
key American source states.
Unknown:
314
Market and Trade Profile USA
1.2 Visitor demographics: welcome and recommending Britain
20
Source: CAA 2016
Feeling of ‘welcome’ in Britain Likelihood to recommend Britain
50%
41%
8%
0.3% 0.2%
39%
49%
12%
0.3% 0.1%0%
10%
20%
30%
40%
50%
60%
Extremelywelcome
Verywelcome
Quitewelcome
Not verywelcome
Not at allwelcome
USA All markets
59%
34%
6%
1% 0.1%
45% 45%
9%
1% 0.4%0%
10%
20%
30%
40%
50%
60%
70%
Extremelylikely
Very likely Quiet likely Not verylikely
Not at alllikely
USA All markets
Market and Trade Profile USA
Market size, share and growth potential
• Britain was the 4th most visited destination by
American tourists in 2016, behind Mexico,
Canada and France.
• The visit forecast implies ongoing growth in the
number of American overnight visits to Britain in
the next decade.
• Of those who came to Britain for a holiday, 57%
considered France, 47% Italy, 45% Germany
and 44% Spain as an alternative holiday
destination.
• Among competitor set the countries Ireland,
Spain and Australia recorded the highest
growth percentage in the past decade in terms
of American visits, although their market share
remains relatively low.
21
1.3 Britain and competitors
Source: Oxford Economics, VisitBritain/IPSOS 2016
Britain ranks 4th
for American outbounddestinations by volume
Market and Trade Profile USA
1.3 Britain and competitors
22
Source: Oxford Economics
Britain’s market share of American
overnight visits among competitor set
Historic and potential overnight visits to
Britain (000s)
4,770
0
1,000
2,000
3,000
4,000
5,000
6,000
3%
5%
6%
7%
13%
13%
17%
17%
20%
3%
7%
7%
9%
11%
13%
16%
17%
18%
0% 5% 10% 15% 20% 25%
Australia
Ireland
India
Spain
China
Germany
Italy
United Kingdom
France
2016 2011
Market and Trade Profile USA
Inbound Britain activities
• Dining in restaurants, shopping and
going to a pub are the most popular
activities for American visitors while in
the UK, with 74%, 57% and 55% doing
so.
• American visitors are more likely than
the average UK visitor to go to built
heritage sites and museums.
• Four out of ten visits involve time in a
park or garden.
• About 56,000 visits per annum feature
time watching football.
• American visitors are less likely than
the average UK visitor to cycle.
23
1.4 Inbound activities
Source: International Passenger Survey by ONS
Market and Trade Profile USA
1.4 Inbound activities
24
Source: International Passenger Survey by ONS 2016
Propensity to visit museums and
galleries
Propensity to visit built heritage sites
28%
6%
48%
23%
39%
15%
58%
32%
0% 20% 40% 60% 80%
All journeypurposes
Business
Holiday
VFR
USA All markets
28%
20%
6%
4%
48%
35%
23%
18%
41%
32%
13%
9%
61%
48%
37%
27%
0% 20% 40% 60%
All journey purposes: visited castle/historichouses
All journey purposes: visited religiousbuildings
Business: visited castle/historic houses
Business: visited religious buildings
Holiday: visited castles/historic houses
Holiday: visited religious buildings
VFR: visited castles/historic houses
VFR: visited religious buildings
USA All markets
Market and Trade Profile USA
1.4 Inbound activities
25
Source: International Passenger Survey by ONS 2011 and 2016
Propensity to attend the performing arts Number who went to watch sport live
during trip (000s)
14%
4%
2%
1%
8%
3%
9%
3%
23%
7%
6%
1%
13%
5%
15%
5%
0% 20% 40%
Holiday: Went to thetheatre/musical/opera/ballet
Holiday: Attended a festival
Business: Went to thetheatre/musical/opera/ballet
Business: Attended a festival
VFR: Went to the theatre/musical/opera/ballet
VFR: Attended a festival
All journey purposes: Went to thetheatre/musical/opera/ballet
All journey purposes: Attended a festival
USA All markets
5.5
0.0
0.0
0.6
0.0
21.2
0.0
3.7
0.8
1.9
8.6
0.7
1.6
1.1
0.0
20.7
1.3
1.6
0.8
0.5
0 5 10 15 20 25
Football
Golf
Rugby
Cricket
Horse racing
Holiday Business VFR Misc.
Market and Trade Profile USA
1.4 Inbound activities
26
Source: International Passenger Survey by ONS 2007, 2010 and 2016
Propensity to go for a walk Propensity to visit a park or garden
and a National Park
20%
8%
28%
11%
5%
1%
26%
11%
24%
9%
34%
15%
9%
2%
29%
11%
0% 10% 20% 30% 40%
All journey purposes: Walking in thecountryside
All journey purposes: Walking along thecoast
VFR: Walking in the countryside
VFR: Walking along the coast
Business: Walking in the countryside
Business: Walking along the coast
Holiday: Walking in the countryside
Holiday: Walking along the coast
USA All markets
32%
7%
7%
1%
50%
11%
32%
6%
40%
10%
15%
2%
54%
15%
41%
9%
0% 20% 40% 60%
All journey purposes: Visiting parks orgardens
All journey purposes: Visiting a National Park
Business: Visiting parks or gardens
Business: Visiting a National Park
Holiday: Visiting parks or gardens
Holiday: Visiting a National Park
VFR: Visiting parks or gardens
VFR: Visiting a National Park
USA All markets
Market and Trade Profile USA
1.4 Inbound activities
27
Source: International Passenger Survey by ONS 2011, 2013
Propensity to go shopping during visits to
the UK
Propensity to purchase selected items
32%
10%
7%
8%
13%
8%
22%
3%
2%
3%
20%
42%
41%
10%
9%
12%
13%
9%
24%
5%
3%
3%
16%
38%
0% 10% 20% 30% 40% 50%
Clothes or Shoes
Personal accessories e.g. jewellery
Bags, purses etc
Cosmetics or toiletries e.g. perfume
Books or stationery
Games, toys or gifts for children
Food or drink
CDs, DVDs, computer games etc
Electrical or electronic items e.g. camera
Items for your home e.g. furnishing
Other holiday souvenir (not mentionedabove)
None of these
USA All markets
67%
41%
68%
57%
0% 20% 40% 60% 80%
All journey purposes VFR Business Holiday
Market and Trade Profile USA
46%
34%
61%
32%
15%
49%
50%
36%
70%
54%
50%
62%
55%
43%
74%
52%
28%
73%
60%
46%
82%
59%
59%
73%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
All journey purposes: went to pub
All journey purposes: socialising with the locals
All journey purposes: dining in restaurants
Business: went to pub
Business: socialising with the locals
Business: dining in restaurants
Holiday: went to pub
Holiday: socialising with the locals
Holiday: dining in restaurants
VFR: went to pub
VFR: socialising with the locals
VFR: dining in restaurants
USA All markets
1.4 Inbound activities
28
Source: International Passenger Survey by ONS 2007, 2008, 2011 and 2013
Propensity to go to restaurants, pubs, night clubs and socialise with locals
Market and Trade Profile USA
Understanding
the market
Chapter 2:
29
Market and Trade Profile USA
Chapter summary
• Trips for holiday purposes is a growing segment within the American
overseas travel market.
• 60% of American holiday visitors tend to start thinking about their
trip to Britain early, more than half a year in advance.
• Almost a third of American travellers booked their trip to Britain
three to six months before arrival. A quarter booked last minute
(within one month before arrival to Britain).
• Websites providing travellers' reviews, information from search
engines and word-of-mouth influence the destination choice of most
Americans.
• Cultural attractions and the ease of getting around are strong
motivators for American visitors to choose Britain.
• Americans are positive about Great Britain: the nation is ranked 4th
among 50 nations for its overall image based on six dimensions
(Tourism, Culture, People, Exports, Governance, Immigration &
Investment).
30
2.Understanding the market
Source: Oxford Economcis, VisitBritain/IPSOS 2016, GfK Anholt Nation Brands Index 2016
USA’s outbound
travel market is growing
Market and Trade Profile USA
Demographics & society• With a population of around 324 million, the USA is the third most
populated country in the world. The population is expected to increase
gradually in the coming years.
• USA has the largest economy in the world (second in PPP terms) and
the forecast for 2017 and 2018 are positive as well. Jobs growth is
having a positive impact on consumer confidence and consumer
spending. Uncertainties concerning policy issues should be noted as
potential downside risks for economic growth.
• The US dollar is strong as of 2017, especially compared to the pound.
This makes it more affordable for Americans to travel to Britain.
• English is the first language of 79% of Americans and Spanish the
main language for 13%.
• In 2016, 132 million valid American passports were in circulation which
equals about 41% of American population. The number of valid US
passports in circulation has increased, with an annual average growth
over the past decade of 6%. This implies that more and more
Americans are able to travel abroad.
31
2.1 Structural drivers
Source: Oxford Economics, CIA World Factbook 2017, travel.state.gov
The USA has the
2nd largest economy in the world
Market and Trade Profile USA
2.1 Structural drivers: population and economic indicators
32
Source: CIA World Factbook 2017, Oxford Economics
Measure 2016
estimate
Total population in 2016 323,996,000
Net No. migrants per
1,000 population in 20163.9
Average annual rate of population
change in 2015 - 20200.8%
Population dynamics
Indicator 2016 2017 2018
Real GDP 1.6% 2.2% 2.4%
Consumer spending 2.7% 2.6% 2.5%
Unemployment rate 4.9% 4.4% 4.4%
Disposable income 3.7% 3.6% 4.7%
Consumer prices 1.3% 2.0% 1.9%
Economic indicators (% growth unless
stated)
Market and Trade Profile USA
2.1 Structural drivers: general market overview
33
Source: Oxford Economics, CIA World Factbook 2017, Capgemini World Wealth Report 2016, US Census Bureau
Key demographic and economic data
Measure 2016
Population (m) 324
GDP per capita PPP (US$) 52,055
Annual average GDP growth over
past decade (%)1.3
Annual GDP growth in 2016 (%) 1.6
General market conditions
• The USA was UK’s second largest source market in
terms of visits and most valuable market for visitor
spending in 2016.
• Many Americans enjoy a high sandard of living with
GDP per capita in purchasing power parity terms of
over US$52,000, forecasted to increase in the years
to come.
• The US has the largest economy in the world, and
second in PPP terms behind China. The American
economy is growing and the forecast for the coming
years is also positive. Consumer confidence is strong,
buoyed by employment growth, and consumer
spending is rising. There is uncertainty though
surrounding a lot of policy issues.
• According to Capgemini the USA has by far the
highest number of High Net Worth Individuals
(HNWI), almost 4.5 million in 2015; these are defined
as people with investible assets worth more than $1
million. This group grew by 2% compared to the
previous year.
• The country has a population of about 324 million with
a median age of 38. Immigrants and their U.S.-born
descendants are expected to provide most of the U.S.
population growth in the decades ahead.
• Most Americans live in urban areas (82%). The most
populous states in 2016 are California, Texas, Florida,
New York and Illinois.
• The US counted approximately 57 million Hispanics in
2015, making this the nation’s largest ethnic minority.
Market and Trade Profile USA
2.1 Structural drivers: exchange rate trends
34
Source. Bank of England
Exchange rate trends (cost of GBP in USD)
1.00
1.20
1.40
1.60
1.80
2.00
2.20
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Please find the most up-to-date exchange rate trend based on monthly averages at visitbritain.org/visitor-economy-facts.
Market and Trade Profile USA
• The US is one of the only countries globally not to have statutory
paid vacation. Americans have an average of 15 paid vacation
days a year and on average do not use four of them.
• Despite this, the number of outbound visits from the USA
increased with an annual average growth over the past decade
of 2.1%.
• An important reason for the growing outbound travel market is
recent economic growth, which boosts consumer confidence, as
well as a strong dollar.
• Growth is driven by the middle aged groups still in work or baby
boomers, who may be retired or coming to the end of their
careers. Millennials, who currently have lower earning power,
nonetheless typically have a strong interest in international
travel.
• Smartphones and tablets are being used by Americans more
often when searching for information or making bookings. It is
estimated that more than a quarter of online travel transactions
in the U.S. will be conducted on mobile devices in 2017.
35
2.2 Consumer trends
Sources: Oxford Economics, Expedia, Phocuswright, International Passenger Survey by ONS
The outbound holiday market from the USA is
growing
Market and Trade Profile USA
57%26%
12%
4%
Americas Europe Asia Pacific Africa & Middle East
2.2 Consumer trends: overall travel trends
36
Source: U.S. Department of Commerce, ITA, National Travel & Tourism Office, Oxford Economics
Travel trends
• The number of overseas trips made by Americans has
increased in the past few years, mostly due to growth
in the number of holidays. More than half of all
overseas trips are made for vacation/holiday
purposes. This share increased significantly from 39%
in 2011 to 53% in 2015, whereas the share of
business travel declined from 18% to 10%.
• The number of international trips taken by US
travellers averaged 2.6 in 2015 which is comparable to
recent years. Seven percent of overseas travellers
were on their first international trip in 2015. During
their trip abroad Americans visited an average of 1.8
countries. Almost six out of ten Americans visited one
destination and one out of five visited three or more
destinations.
Destination of overnight visits abroad
in 2016
• Slightly more than a quarter of all overnight
visits were spent in Europe in 2016. This share
is the same as five years earlier.
Market and Trade Profile USA
2.2 Consumer trends: reasons for holidays
37
Source: VisitBritain US East vs West Coast Consumer Research, 2017. Results above 10% total agreement shown. Based on quantitative research among residents in California
or the Tri-State area who: have taken a vacation of two nights or more to a foreign country in the last three years (beyond Mexico and Canada); are decision makers when
choosing vacation destinations; have either visited Britain in the last three years or are a non-rejecter of visiting Britain in the next five years
12%
10%
11%
13%
13%
13%
19%
23%
28%
33%
35%
34%
39%
42%
45%
45%
9%
13%
13%
11%
13%
23%
19%
20%
30%
33%
32%
35%
35%
38%
44%
44%
Chance to live like a local
Good nightlife
Action/excitement
Opportunities to be active
Somewhere family friendly
Sunny weather
Easy to get around
Spending time with family/friends
A mixture of things to do
Rest/Relaxation
Going somewhere new
Natural beauty
Local food and drink
Visiting famous landmarks
New experiences
Experiencing different cultures
Tri-State area
California
• The top US states for UK visits can be found on
the west and east coasts of the USA. California
(15%) represents the largest state by volume
followed by the New York Tri-State area: New
York, New Jersey and Connecticut (13%).
• There are few significant differences in vacation
motivations between these coasts. New
experiences and different cultures are an
important part of international vacations for
both. ‘Sunny Weather’ is much more important
to travellers in the Tri-State area.
• Vacation activities: those in the Tri-State area
are more likely to want to sunbathe or visit a
spa / get pampered. Californians are more likely
to want to visit museums/galleries and go
walking/hiking.
• Vacation barriers are very similar for East vs
West coast. Safety and security fears are the
biggest barrier for both groups when choosing a
destination.
Most important things to look for in an international vacation (%)
Market and Trade Profile USA
• A large proportion of American holiday visitors
tend to start thinking about their trip early with
60% doing this as early as half a year or more in
advance.
• 31% of travellers booked in the three to six
months window before the arrival to Britain. A
quarter of travellers booked last-minute (within
one month before arrival).
• The majority of the American travellers to Britain
book travel and accommodation together, mostly
online.
• They are also more likely than the average visitor
to purchase tickets for tourist attractions and
guided sightseeing tours prior to their trip.
38
2.3 Booking and planning
Source: VisitBritain/IPSOS 2016, base: visitors
60%of American visitors start thinking about their trip 6+ months
in advance
Market and Trade Profile USA
83%
66%58%
13%
11% 24%
5%
8%
17%15%
0% 0% 0.5%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Travel Accommodation Holiday(travel and
accommodation)
Don’t know
Did not book – stayed with friends / relatives
By phone
Face to face
Online
2.3 Booking and planning: booking channels and ticket sales
39
Source: VisitBritain/IPSOS 2016, base: visitors (online survey)
How trips to Britain were booked Propensity to make a purchase before or
during trip
52%
25%
48%
14%
56%
20%
56%
18%
57%
30%30%
23% 24%
11%
28%
22%
28%
19%
31%
41%
0%
10%
20%
30%
40%
50%
60%
Pre During Pre During Pre During Pre During Pre During
Theatre /Musical /
Concert tickets
Sporting eventtickets
Guidedsightseeing
tours in London
Guidedsightseeing
tours outside ofLondon
Tickets / passesfor other tourist
attractions
USA All markets
• Most Americans book their trip to Britain online, especially
when they book their transport (i.e. travel). The majority of
online bookings are made via a laptop/desktop.
• American visitors to Britain still tend to book their travel
and accommodation together (70% of visitors). About one
in four bookings were made face to face for these holiday
packages. This is similar to the global average of 27%.
• Many American visitors book holiday activities before they
start their journey, especially for tickets to guided
sightseeing tours and to miscellaneous tourist attractions.
• Also various tickets are booked during the trip by
American visitors.
Market and Trade Profile USA
2.3 Booking and planning: lead-times
40
Source: VisitBritain/IPSOS 2016, base: visitors
Decision lead-time for visiting
Britain
• American travellers to Britain show a slightly higher
tendency to start thinking earlier about their trip than the
all market average.
• Six in ten of the American visitors tended to start
thinking early about their trip to Britain, i.e. half a year or
more in advance of their journey; 21% did this three to
six months in advance.
• 37% made their decision to travel to Britain longer than
six months before the actual journey, another 36% made
their decision three to six months before departure.
• Almost one third of American visitors looked at options
and prices between three and six months ahead of the
trip and an almost equal share booked their trip in that
same time frame.
• Americans are more likely to book directly with the
airline / train / ferry operator or directly with the
accommodation provider than the all market average.
60%
21%
10%7%
2%
37% 36%
15%
9%
3%
28%
32%
22%
14%
4%
20%
31%
17%
25%
7%
0%
10%
20%
30%
40%
50%
60%
70%
6+ monthsbefore trip
3-6 monthsbefore
1-2 monthsbefore
Less than 1month before
Don't know
% starting to think about trip at each stage
% deciding on the destination at each stage
% looking at options/prices at each stage
% booking the trip at each stage
Market and Trade Profile USA
• Reviews play an important role for American
travellers when choosing their destination.
Other influential sources for destination choice
are friends, family and colleagues followed by
information from search engines.
• Younger Americans (18 to 34 years) are more
likely to consume different types of content
across a variety of devices.
• Total media consumption has increased
significantly in 2016 especially due to a higher
amount of time spent on aps or websites on
tablets or smartphones and multimedia devices.
Despite this development, the highest
proportion of media time is still spent watching
TV.
41
2.4 Reaching the consumer
Source: VisitBritain/IPSOS 2016, Nielsen
dominates the social media platforms in
the USA
Market and Trade Profile USA
Broadcast media
• TV (Live + DVR) reached 226 million users in 2016.
• On an average day in Q1 2016, Americans aged 18
and over watched TV for about five hours (live and
DVR). Younger Americans (18 to 34 years) spent
less time watching TV then those aged 50 and over,
around three hours and seven hours per day
respectively.
2.4 Reaching the consumer
Source: Nielsen, Cision, ComScore Mobile Metrix, Alliance for Audited Media
Radio
• Radio reached 240 million users in 2016.
• Americans listen to the radio for an average of 1 hour
and 52 minutes each day.
Magazines• AARP The Magazine is the world’s largest-
circulation magazine, with more than 47 million
readers, targeting the 50+ audience. Other US
magazines with a high circulation are AARP
Bulletin, Better Homes And Gardens, Game
Informer Magazine, Good Housekeeping, Family.
Newspapers
• 169 million Americans read at least one newspaper
each month. Readers of newspapers are relatively well
educated and have a relatively high income. The digital
distribution of newspapers has attracted more younger
readers.
• Daily newspapers with the highest number of
circulations in 2016 were USA Today, The New York
Times, The Wall Street Journal, Los Angeles Times
and New York Post. Newspaper circulation in print
decreased in the past few years.
Online media
• The growth in digital media usage time in the past few
years is driven by smartphone usage. Mobile
represented about two third of digital media time spent
in June 2016.
• The apps with the highest number of unique US
visitors (18+, June 2016) were Facebook, Facebook
Messenger, YouTube, Google Maps and Google
Search. Snapchat is becoming more popular across
age groups.
• The social networks with the highest number of
monthly users in the US are Facebook (171 million),
Instagram (77 million) and Pinterest (69 million).
Market and Trade Profile USA
2.4 Reaching the consumer: social media on holiday
43
Source: VisitBritain/IPSOS 2016, base: all respondents: Have you used social media in any of the following ways whilst on your last holiday to Britain (visitors) /on your last holiday to a foreign
destination (considerers)?
Use of social media on holiday
• Staying connected when on a holiday is important for
American travellers. 77% like to stay connected whilst
they are on holiday and 81% regard a smartphone as
essential whilst they are on holiday.
• In general, 64% tend to use the tablet/smartphone for
general internet use rather than a laptop/desktop.
• Almost half use social media to post photos and keep
in touch with people during their holiday.
• Facebook dominates the social media platforms in the
USA in terms of daily usage, followed by YouTube,
Instagram and Twitter.
• In general, 53% enjoy writing reviews of places they
have been to on holiday on social media and 67%
place trust in social media reviews from other tourists
which is above average in comparison to other
markets.
19%
20%
23%
25%
29%
29%
30%
39%
44%
26%
22%
28%
34%
34%
30%
34%
46%
41%
0% 20% 40% 60%
Share my own advice or recommendations aboutvisiting where I am
Ask for advice on where to go or what to do
To help you plan / decide where to go or what to see orwhat to do
To let people know where I am at a given moment (e.g.checking in on Facebook)
Share with others where you are / what you are doingwhile on holiday
I have not used social media at all on this type ofholiday
Look for recommendations for places to eat or drink
To post / upload photos of my holiday
To keep in touch with people at home
USA All markets
Market and Trade Profile USA
6%
6%
9%
9%
11%
12%
12%
14%
14%
15%
15%
15%
16%
16%
17%
18%
18%
19%
19%
22%
25%
25%
26%
26%
30%
31%
33%
40%
11%
9%
11%
12%
15%
15%
15%
16%
17%
14%
17%
16%
15%
17%
16%
17%
14%
18%
20%
22%
20%
24%
25%
24%
32%
25%
31%
31%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Information in radio adverts
Travel programme on radio
Images / information on billboards / poster adverts
Seeing social media posts from celebrities talking about their holiday destinations
Images / information in TV adverts
Articles on an online encyclopaedia e.g. Wikipedia, Wikitravel
Images / information in adverts in a magazine or newspaper
Travel app
Images or videos from a photo/video sharing social network site
A special offer or price deal you saw advertised offline e.g. in a newspaper, magazine or on TV
Images / information in online adverts
Images or videos your friends or family have posted to social media
Direct advice from a travel agent/tour operator (face-to-face, over the phone)
A travel feature / article in a magazine or newspaper
An official tourist brochure for the country / city / region
An official tourist organisation website or social media site for the country or destination
Travel agent or tour operator brochure
A special offer or price deal you saw advertised online
Travel programme on TV
Travel blogs / forums
Travel agent or tour operator website
A travel guidebook
An accommodation provider/ hotel website
Talking to friends or family in your social network (e.g. via Facebook / Twitter)
Websites providing traveller reviews of destinations [e.g. TripAdvisor]
Looking at prices of holidays/flights on price comparison websites
Information from search engines [e.g. Google]
Talking to friends / relatives / colleagues
USA All markets
2.4 Reaching the consumer: influences
44
Source: VisitBritain/IPSOS 2016, base visitors & considerers. Which of the following sources influenced your choice of destination? (Market scores have been adjusted so that the sum of all influences
for each market is equivalent to the global total, to enable meaningful comparisons)
Influences on destination choice
Market and Trade Profile USA
• Americans rate Britain highly for contemporary culture and
welcome but less for scenic natural beauty; Britain was rated
4th and 17th out of fifty nations respectively on these two
attributes in 2016.
• Museums is the cultural product that is most strongly
associated with Britain among Americans.
• A trip to Britain would be expected to be ‘educational’, ‘exciting’
and/or ‘fascinating’ by many Americans.
• Italy and Australia are the destinations that Americans consider
the ‘best place’ for delivering the things they most want from a
holiday destination. However, the UK receives the highest
score on the aspect that is perceived as the most important
one during a holiday: having fun and laughter.
• Areas of strength for Britain include ‘cultural attractions’ and
‘ease of getting around’.
45
2.5 Perceptions of Britain
Source: GfK Anholt Nation Brands Index 2013 and 2016, Arkenford 2013
Britain is the
4th strongest nation brand
among 50 nations
Market and Trade Profile USA
2.5 Perceptions of Britain
46
Source: GfK Anholt Nation Brands Index 2016
Measure American
respondents
All
respondents
Overall Nation Brand 4 3
Culture (overall) 5 5
The country has a rich cultural heritage 6 7
The country is an interesting and exciting place for contemporary culture such as
music, films, art and literature4 4
The country excels at sports 5 5
People (overall) 4 7
If I visited the country, the people would make me feel welcome 5 12
Tourism (overall) 6 5
Would like to visit the country if money was no object 5 5
The country is rich in natural beauty 17 24
The country is rich in historic buildings and monuments 7 5
The country has a vibrant city life and urban attractions 5 4
Britain’s ranking (out of 50 nations)
Market and Trade Profile USA
2.5 Perceptions of Britain
47
Source: GfK Anholt Nation Brands Index 2016
Cultural associations Adjectives describing a potential trip to
Britain
13%
15%
16%
24%
24%
29%
29%
36%
39%
39%
47%
11%
13%
26%
21%
21%
26%
25%
29%
33%
33%
46%
0% 10% 20% 30% 40% 50%
Circus
Street Carnival
None
Sculpture
Opera
Pop videos
Modern Design
Sports
Films
Music
Museums
United States All respondents
5%
6%
7%
7%
8%
15%
16%
30%
31%
34%
4%
4%
7%
5%
10%
21%
17%
36%
35%
39%
0% 10% 20% 30% 40% 50%
Depressing
Risky
Boring
Stressful
Spiritual
Relaxing
Romantic
Exciting
Fascinating
Educational
United States All respondents
Market and Trade Profile USA
2.5 Perceptions of Britain
48
Holiday wants and % saying destination is best place for…
Source: VisitBritain/Arkenford 2013
Importance GB FR IT AU GE NL6.25 Have fun and laughter 26% 17% 18% 15% 11% 8%
6.16 Enjoy the beauty of the landscape 30% 45% 58% 57% 31% 33%
6.15 Offers good value for money 20% 20% 24% 20% 17% 15%
6.10 Explore the place 33% 22% 43% 40% 18% 8%
6.07 Experience things that are new to me 28% 27% 46% 45% 20% 24%
6.06 The people are friendly and welcoming 31% 24% 37% 48% 23% 29%
6.03 See world famous sites and places 54% 61% 70% 30% 39% 20%
6.02 Do something the children would really enjoy 37% 33% 37% 43% 26% 23%
6.01 Enjoy local specialities (food and drink) 26% 60% 68% 27% 36% 15%
5.98 It offers unique holiday experiences 37% 46% 53% 59% 33% 34%
5.95 Soak up the atmosphere 20% 31% 47% 29% 20% 8%
5.92 Provides a wide range of holiday experiences 38% 41% 50% 52% 31% 25%
5.87 Broaden my mind/ Stimulate my thinking 33% 43% 49% 39% 33% 26%
5.83 Experience activities/places with a wow factor 33% 45% 58% 43% 20% 18%
5.80 Have dedicated time with my other half 36% 48% 52% 41% 31% 29%
5.80 Visit a place with a lot of history/historic sites 57% 54% 66% 16% 43% 21%
5.78 Enjoy peace & quiet 19% 18% 27% 34% 15% 26%
5.77 Enjoy high quality food and drink (gourmet food) 24% 66% 72% 13% 28% 11%
5.73 Do what I want when I want spontaneously 39% 33% 32% 22% 17% 14%
5.64 Chill/ slow down to a different pace of life 14% 21% 29% 27% 11% 15%
5.64 A good place to visit at any time of year 21% 27% 35% 38% 17% 15%
5.63 Easy to get around by public transport 45% 38% 31% 21% 29% 21%
5.59 Be physically healthier 24% 28% 32% 41% 22% 26%
5.55 Get some sun 11% 17% 25% 45% 8% 8%
5.42 Feel connected to nature 19% 14% 30% 53% 11% 24%
5.36 Revisit places of nostalgic importance to me 27% 25% 23% 14% 27% 6%
5.31 Get off the beaten track 29% 18% 21% 51% 17% 8%
5.29 Feel special or spoilt 25% 43% 38% 31% 12% 14%
5.23 Good shopping 36% 56% 59% 27% 26% 13%
5.17 Meet the locals 15% 15% 29% 39% 14% 11%
5.17 Visit places important to my family's history 36% 23% 28% 19% 26% 14%
4.96 Experience adrenalin filled adventures 18% 23% 32% 65% 28% 14%
4.89 Go somewhere that provided lots of laid on entertainment/nightlife 43% 45% 48% 41% 36% 34%
4.85 Meet and have fun with other tourists 47% 14% 37% 39% 33% 18%
4.76 To participate in an active pastime or sport 19% 21% 31% 31% 11% 13%
4.65 Do something environmentally sustainable/ green 6% 27% 21% 49% 23% 14%
4.59 Party 30% 38% 28% 36% 41% 25%
4.54 Watch a sporting event 29% 27% 36% 24% 25% 10%
4.53 Fashionable destination 30% 62% 57% 26% 19% 15%
4.32 Do something useful like volunteering to help on a project 42% 36% 31% 35% 33% 30%
Market and Trade Profile USA
8%
9%
10%
12%
12%
13%
13%
16%
16%
17%
18%
18%
18%
19%
19%
21%
22%
22%
22%
22%
22%
23%
25%
42%
12%
12%
17%
12%
14%
12%
16%
20%
18%
22%
16%
18%
19%
18%
15%
15%
18%
23%
26%
22%
20%
17%
23%
33%
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Easy to visit with children
Visit a film/TV location
Watching sport
Cost of staying in the destination
The climate / weather
Wide range of holiday activities
Meeting locals
Easy to get plan/organise
Accommodation (variety & quality)
Security / safety
A good deal
Try local food and drink
Contemporary culture
A mix of old and new
A culture different from own
Ease of getting to the country
Visiting friends or relatives
Somewhere English-spoken
Easy to get around
Countryside/natural beauty
Vibrant cities
Wanted to go somewhere new
Wide variety of places to visit
Cultural attractions
USA All markets
2.5 Perceptions of Britain
49
Source: VisitBritain/IPSOS 2016, base: visitors (Market scores have been adjusted so that the sum of all
motivations for each market is equivalent to the global total, to enable meaningful comparisons)
Motivations for choosing Britain as a holiday destination
Market and Trade Profile USA
Access and travel
trade
Chapter 3:
50
Market and Trade Profile USA
• 31 airports in the USA were connected to the UK via direct
flights in 2016 with an average weekly capacity of almost
240,000 seats. This is the highest level that has been
measured since 2006. Airline capacity is very important as
85% of American visits to the UK were made by plane in
2016.
• London Heathrow has 78% of this seat capacity, followed by
London Gatwick and Manchester International.
• The travel trade structure in the US is made up of tour
operators, online travel agents (OTA’s) and front-line retail
travel agents.
• 70% of American visitors to Britain book their travel and
accommodation together. This is higher than the average
international visitor (50%).
51
3. Access and travel trade
Source: Apex Rdc 2016, VisitBritain/IPSOS 2016, base: visitors
Seat capacityfrom the USA to the UK has reached its
highest level in 2016 since 2006
Market and Trade Profile USA
3.1 Access: key facts
• 85% of American visitors travel to the United
Kingdom by plane. Another 12% arrive
through the Channel Tunnel as part of a
multi-country trip and 3% by ferry.
• Annual seat capacity from the USA has
increased year on year since 2013 and has
reached its highest level since 2006.
• Three airports in the UK welcome 92% of US
direct flights into the UK. London Heathrow
received more than 3 in 4 direct flights in
2016, followed by Manchester International
and London Gatwick with 8% and 7%
respectively.
52
85% of American
visitors travel to the
UK by plane.
Source: International Passenger Survey by ONS, GOV.UK, Apex RdC 2016 * non-stop flights only
Measure 2016
Weekly aircraft departures 901
Weekly aircraft seat capacity 239,376
Airports with direct routes in the USA 31
Airports with direct routes in Britain 14
Access to Britain*
Market and Trade Profile USA
3.1 Access: mode of transport
53
Source: International Passenger Survey by ONS
Visits by mode of transport Sea and tunnel travel (000s) in 2016
2,933
118
405
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
Vis
its
(0
00
)
Air Sea Tunnel
Annual share by mode (2016)
9
24
84
5
16
384
0 200 400 600
PrivateVehicle
Coach
Foot
Vis
its
(00
0)
Tunnel Sea
85%
3%12%
74%
14% 12%
0%
20%
40%
60%
80%
100%
Air Sea Tunnel
USA All markets
Market and Trade Profile USA
3.1 Access: capacity
54
Source: Apex Rdc 2016: non-stop flights only
Annual airline seat capacity trends Origin airport annual seat capacity (2016)
*Airports with less than 5% annual seat share grouped in other: Hartsfield-Jackson Atlanta International,
Las Vegas - McCarran International, Philadelphia International, Dallas/Ft. Worth International, Houston - George Bush
Intercontinental, Seattle/Tacoma International, Charlotte - Douglas, Detroit - Wayne County, Phoenix - Sky Harbor
International, Denver International, San Diego International, Tampa International, Orlando Sanford Intl, Minneapolis - St
Paul International, Austin-Bergstrom International, Raleigh/Durham, Baltimore/Washington International Thurgood
Marshall, San Jose - Norman Y. Mineta International, Salt Lake City International, Metropolitan Oakland International,
Fort Lauderdale-Hollywood International, New Orleans - Louis Armstrong International
20%
8%
8%
7%
6%5%5%
5%
5%
31%
New York - John F. Kennedy International Los Angeles International
New York - Newark Liberty International Orlando International
Chicago - O'Hare International Miami International
San Francisco International Washington - Dulles International
Boston - Logan International Other*
12,447,549
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
2006 2008 2010 2012 2014 2016
Dep
art
ing
se
ats
Market and Trade Profile USA
3.1 Access: capacity
55
Airline seat capacity by carrier (2016)
Source: Apex Rdc 2016: non-stop flights only
Destination airport annual seat capacity(2016)
*Airports with less than 1% annual seat share grouped in other: Belfast International
London – Stansted, Newcastle, London - Luton, London City, East Midlands, Leeds/Bradford, Cardiff
78%
9%
8%
1%1%1%
1%
London - Heathrow London - Gatwick
Manchester International Edinburgh
Glasgow International Birmingham International
Other*
35%
19%
17%
14%
7%
3%3%
1%1%
1%
British Airways Virgin Atlantic Airways
American Airlines United Airlines
Delta Air Lines Thomas Cook Airlines
Norwegian Air New Zealand
Thomson Airways Other
Market and Trade Profile USA
The travel trade structure in the US is made up of tour operators, online travel agents
(OTAs) and front-line retail travel agents:
• Tour operators: this category covers escorted tours, FITs and ‘Special Interest’ (which
can incorporate both niche interests, such as antiques, gardening tours through to
University Alumni large escorted group tours).
• Retail travel agents: this category covers independent and / or home based agents,
consortia co-ops and franchise networks.
• Online travel agents: this category is dominated by Expedia and The Priceline Group
with many subsidiaries being searched by the consumer, such as Priceline, Travelocity,
Booking.com, Hotels.com and Kayak.
It is a relatively complex mix as operators can sell consumer-direct or via travel agents;
whilst travel agents compete head to head with OTAs mainly on air and accommodation
and yet offer a more detailed and tailored service for those consumers wishing to book a
more complex trip.
56
3.2 Travel trade: general overview
Market and Trade Profile USA
3.2 Travel trade: general overview
• American travellers seek ‘off the beaten track’ and
authentic experiences. Even in more standard
packages, consumers are looking for experiential
moments that go beyond the ordinary tourist
experience and create a sense of place.
• Other growth areas in the American travel market
include culinary tourism and ‘soft adventure’,
which covers a wide spectrum of activities that are
low risk and require little or no experience.
• Many US outbound travel audiences are 50+ but
the multi-generational and Millennial travel
segments are growing. Millennials are mostly
interested in FIT packages.
• There is a recognition among the US trade of
the need to diversify with new experiences and
destinations. However, the trade are consumer-
data driven and unlikely to develop new product
/ packages unless there is proven consumer
demand.
• Seven out of ten American visitors to Britain book
their travel and accommodation together.
57
70%
30%
Booked travel & accommodation together
Booked travel & accommodation separately
Market and Trade Profile USA
3.2 Travel trade: American holidays
58
National public holidays Major Jewish holidays
2017 2018 National public holidays
2 January 1 January New Year’s Day
16 January 15 January Martin Luther King Jr. Day
20 February 19 February Presidents’ Day
29 May 28 May Memorial Day
4 July 4 July Independence Day
4 September 3 September Labor Day
9 October 8 October Columbus Day (most regions)
10 November 12 November Veterans Day
23 November 22 November Thanksgiving Day
25 December 25 December Christmas Day
Source: www.timeanddate.com/holidays/us/
Rosh Hashana
• 21 September 2017
• 10 September 2018
Yom Kippur
• 30 September 2017
• 19 September 2018
Chanukah/Hanukkah
• 13 December 2017
• 3 December 2018
Market and Trade Profile USA
3.2 Travel trade: practical information
General practical information
• Standard business hours are Monday to Friday, 9am-5pm
local time. Note that many businesses will close early on
the day prior to a major public holiday.
• The US operates on 4 time zones; Eastern Standard Time
(EST), Central Standard Time (CST), Mountain Standard
Time (MST) and Pacific Standard Time (PST). They are
respectively 5, 6, 7 and 8 hours behind GMT.
• When making appointments it is best to avoid Monday
mornings and Friday afternoons. It is also recommended to
check dates for major Christian & Jewish Holidays as this
can affect attendance at events and/or meetings.
• Direct eye contact is important and in most situations you
can call people by their first names. However, in formal
circumstances, you may want to use titles and surnames
as a courtesy until you are invited to move to a first name
basis, which will happen quickly. Business cards are
exchanged without formal ritual.
• Americans tend to speak clearly and in a straightforward
manner. Your own business delivery should be polite and
yet mirror the US expectations displayed during the
meeting. Do research on the company and be
knowledgeable of what travel agency consortia they may
prefer. Identify the opportunity for business and discuss the
point in hand and if follow-up is required this should be
done in a timely fashion and within a 24-hour turnaround
period.
• When calling on wholesalers, quote net prices, sufficient to
allow them a 20%-25% mark-up, as they will have to
relinquish at least 10% to a travel agent.
• The best times of the year to call are between January and
April for travel agents and between April and June for
wholesalers. Lead time with tour operators varies from 6
months to 2 years to see a new product come online.
• UK suppliers can also sell through a representative in the
US. This is an effective method and normally the most
costly means of selling your product overseas.
59
Market and Trade Profile USA
3.2 Travel trade: Planning cycle
Planning cycle
• The planning cycle for operators depends on the size of
the company and business focus. Many do have main
season and off-season product, so will engage in the
buying process with suppliers in spring for the following
year.
• Generally speaking, we suggest a minimum of 2 years
lead time for an escorted operator to get new product ‘on
the shelf’ and out to the consumer or travel agent.
• Alternatively, FIT/independent travel product can be more
flexible and allow for shorter lead time (6 months to 1 year)
for integration into their existing business model. Operators
will need time for planning, sourcing product, costing and
pricing. Be prepared to consider offering co-operative
marketing dollars to support the marketing necessary to
promote this new product.
• For the most part, contracting for the following year can
start any time from the fall (World Travel Market) through
until June.
• Brochure production time is mainly September/October in
order to release “Early Bird” special offers, in the fall, for
promotion for the following season.
• Although the planning cycle is shared here, some
independent operators will develop product at various
times throughout the year as many no longer publish
printed brochures. This allows more flexibility with
developing and promoting new offers online.
60
Market and Trade Profile USA
Meeting etiquette
• Plan your travel schedule in advance. In major US cities
where traffic is heavy, it is recommended to double the
estimated travel time just to be safe.
• Arrive on time, call ahead if running late.
• Be prepared with your objectives you wish to accomplish
from a face to face meeting.
• If you arrive unprepared, remember there is probably
another product supplier hot on your heels and next in
line. At certain key contracting times, it is not uncommon
for VisitBritain to know of 3+ British suppliers to be in a
city at any one time, all undertaking independent sales
calls to the same tour operators / travel agents.
Hospitality etiquette
• When hosting a US client for dinner or drinks you should
be prepared for the check (bill) to arrive either inclusive-
of or subject-to a gratuity. This can vary from 15 to 20%
dependent on the service. It is not advisable to dismiss
the addition of a gratuity as it is common practice, and an
expectation in the US service industry, and you would
embarrass a US client if you did not make the gratuity
addition.
• A hosted client may stay for the minimum time it takes to
dine and conduct a business discussion but do not be
surprised if they make their excuses to leave after that
point. Unlike many British people whom may extend the
evening to get better acquainted and have access to
good public transport in all cities, Americans may have to
drive home or travel long distances and so time can be
precious.
3.2 Travel trade: hospitality etiquette
61
Market and Trade Profile USA
3.3 Caring for the consumer
62
Accommodation
• As many will arrive in Britain on overnight flights from
the US consideration for early check-in at
hotels/accommodation is always appreciated. If you
are their first port of call from the airport, try and
arrange for some form of hospitality and services
when they arrive, especially if their accommodation is
not ready. This mainly applies to business visitors
and those on upscale FIT trips.
• Americans are used to larger rooms than are
generally found in Britain and, without exception, to
having private bathroom facilities. Americans view
accommodation as an important part of the travel
experience. They will put a premium on staying at a
historic/grand property or a hotel that reflects the
local culture.
• The majority of Americans will want to stay in a 3-star
plus property in a good/central location. They are
used to larger beds.
• Health and wellness is trending in the USA. More
Americans are looking for destinations that cater to
that interest (e.g. yoga, meditation, spa, staying
active).
Language
• The old adage “Two nations separated by one
common language” holds true to a certain extent.
American English does differ in many common
words, and Americans find the British accent very
interesting. This may cause confusion and yet at the
same time serve as an ice-breaker for visitors and
locals alike! It forms part of the charm and intrigue
that Americans appreciate about Britain and adds to
the authenticity of the travel experience.
• According to the Central Intelligence Agency 79% of
Americans first language is English. Spanish is for
13% the main language.
Source: CIA Worldfactbook 2017
Market and Trade Profile USA
Food and drink
• For American travellers food is not considered a
priority factor in planning a holiday. Food is seen as a
secondary consideration behind price, safety,
historical landmarks and cultural experiences.
• While existing stereotypes mean there is a lack of
excitement about British cuisine pre-visit, perceptions
improve after having visited due to the culturally
diverse range of foods available and the modern food
scene.
• 89% of American visitors to the UK were satisfied
with their food and drink and 53% were very satisfied;
both scores are above average for all visitors to the
UK.
• 71% of American international travellers think that
British food products are good quality.
• American travellers want food experiences that are
off the beaten path; they seek authentic and unique
experiences. Recommendations by locals are highly
valued.
• There is a particular interest in locally sourced and
organic produce and vegan and Gluten Free food is
becoming more and more popular as a dietary
choice.
• Americans will tend to eat an evening meal fairly
early, especially those with families. Visitors from
metropolitan cities may have more flexible eating
habits as restaurants tend to open late.
• Americans are very comfortable paying for goods and
services with a credit card.
• America has a tipping culture when it comes to
service, and tipping between 15-20% of the food total
bill is standard. As a result of this they will expect
good service from restaurants, even on the budget
side, with tap water provided and refilled as happens
routinely in most US restaurants.
3.3 Caring for the Consumer
63
Source: International Passenger Survey by ONS, VisitBritain/ICM A taste of Britain 2017,
VisitBritain/ORC qualitative research 2017
Market and Trade Profile USA
We can help you extend your reach
through:• Digital and social media such as through
Twitter, our Facebook page – Love GREAT
Britain, or Pinterest
• Press and PR by sending us your newsworthy
stories or hosting our journalists and broadcast
crew
• Leisure, and the business travel trade via our
programme of sales missions, workshops and
exhibitions or promotion to our qualified
Britagents and supplier directory
• Print advertising in targeted media/Britain
supplements
• Retailing your product through the VisitBritain
shop
• Or as a major campaign partner
64
3.4 Working with VisitBritain
We are here to support you and look
forward to working with you.
To find out more browse our
opportunity search
(visitbritain.org/opportunities)
or trade website
(trade.visitbritain.com)
or contact the B2B events team
(Email: [email protected])
or campaign partnerships team
(Email: [email protected])
or trade support team
(Email: [email protected])
Market and Trade Profile USA
We have dedicated research and insights
available which include:
• Latest monthly and quarterly data from the
International Passenger Survey by ONS
(visitbritain.org/latest-monthly-data
visitbritain.org/latest-quarterly-data-uk-overall
visitbritain.org/latest-quarterly-data-area)
• Inbound Tourism Trends by Market
visitbritain.org/inbound-tourism-trends
• Sector-specific research
visitbritain.org/sector-specifc-research
• 2017 Inbound Tourism Forecast
visitbritain.org/forecast
• Britain‘s competitiveness
visitbritain.org/britains-competitiveness
65
3.5 Useful research resources
We are here to support you and look
forward to working with you.
To find out more about the USA or other
inbound markets browse
our markets & segments pages
(visitbritain.org/markets-segments)
or our inbound research & insights
(visitbritain.org/inbound-research-insights)
or contact us directly
(Email: [email protected])
Market and Trade Profile USA
We have dedicated research and insights
available which include:
• Planning, decision-making and booking cycle of
international leisure visitors to Britain
https://www.visitbritain.org/understanding-
international-visitors
• Technology and social media
https://www.visitbritain.org/understanding-
international-visitors
• Gateways in England, insights on overseas
visitors to England's regions, participation in
leisure activities, multi-destination trips and
more
visitbritain.org/visitor-characteristics-and-
behaviour
66
3.5 Useful market-specific research resources
We are here to support you and look
forward to working with you.
To find out more the USA or other inbound
markets browse
our markets & segments pages or
(visitbritain.org/markets-segments)
our inbound research & insights or
(visitbritain.org/inbound-research-insights)
contact us directly
(Email: [email protected])
Market and Trade Profile USA
Market and
Trade Profile: USA