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Market and Trade Profile: USA USA

Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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Page 1: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

Market and Trade Profile USA

Market and

Trade Profile: USA

USA

Page 2: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 3: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 4: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

Market and Trade Profile USA

Inbound market

statistics

Chapter 1:

4

Page 5: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 6: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 7: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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%

Page 8: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 9: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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.

Page 10: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 11: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 12: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 13: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 14: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 15: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 16: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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.

Page 17: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 18: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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+

Page 19: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 20: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 21: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 22: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 23: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 24: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 25: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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.

Page 26: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 27: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

Page 28: Market and Trade Profile: USA...Market and Trade Profile USA 1.1 Key statistics –volume and value 8 Source: International Passenger Survey by ONS, *small base Measure 2016 Change

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

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Market and Trade Profile USA

Understanding

the market

Chapter 2:

29

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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

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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

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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)

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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.

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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.

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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

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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.

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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 (%)

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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

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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.

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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

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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

Facebook

dominates the social media platforms in

the USA

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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).

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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

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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

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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

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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)

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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

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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%

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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

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Market and Trade Profile USA

Access and travel

trade

Chapter 3:

50

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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

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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*

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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])

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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])

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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])

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Market and Trade Profile USA

Market and

Trade Profile: USA