GLOBECAP INVESTMENT

Who travels abroad, where, and how often?

Personal use only

Executive summary (1/2)

Who travels abroad and how often

• The annual chance for a Bulgarian citizen to travel abroad is about 60% (78% for those earning 1000-2000 Lv / month)

• About 50% of the 1985 survey respondents have been to Greece at least once since 2011. The annual likelihood for visiting Greece is 24%, while for Western Europe collectively, it is 33%.

– Few Bulgarians travel outside Europe. Only 8% have visited USA since 2011, 5% have visited UAE, and 3% Thailand.

– Even high earners travel rarely outside Europe. Only 6% of the respondents earning 3000+ Lv have been to the UAE since 2011.

• City of residence does not influence travel much. Citizens of the 5 biggest cities travel only about 15% more then the rest.

How often and who uses travel agents and tour operators?

• 21% of the respondents use a travel agent at least once a year (31% of those earning 1000-2000Lv) but fragmentation is extremely high – even the biggest 4-5 firms are only used by 1% of the respondents on an annual basis

– No firm in the industry has many repeat clients. Average repeat rate per customer has been 1.33 since 2011.

• There are no big differences per income and location for those aged 25-40, then income determines the use of travel agents – Use of travel agent for all 25-40 year olds is about 15-18% per year (slightly higher for people earning BGN1-2k in Sf/Pd/Vn).

– About 40-50% of those earning above BGN1000 and aged 50+ use travel agent every year

– In general, 30% of the respondents below 40 years have used travel agent at least once for the last 5 ½ years. Afterwards usage rate increases by 5% for every 10 years of age.

• Income and age do not play a significant role on customer’s loyalty to a travel agent – About 25% of respondents have used 1 travel agent since 2011, 25% - two, 25% - three, and 25% - four and more

– There is a 10% chance that one of the larger travel agents (e.g. Astral) is exclusive for a given client and a 33% chance to be used with 4+ travel agent. With smaller firms, almost 100% of their clients have used them besides 4+ competitors over the last 5 ½ years

– About 1/3 of the customers of Astral, Bohemia, and Karaci have used both other firms, while 50% have used at least one.

2

Executive summary (2/2)

How does Astral compare to the other travel agents and operators?

• Astral is the second most used travel agent with about 7% having used it at least once since 2011 (1% on annual basis) – Compared to all respondents, Astral customers tend to have a higher income (>1000 Lv) and higher age (>45 years)

• Astral is the second most recognizable company in the sector after Bohemia – Citizens of Sofia, Plovdiv and Varna have remembered Astral more often than any other firm. However in regional capitals and smaller cities, only

12-15% of respondents have recalled the company’s name, compared to 32-36% for Bohemia.

• Nevertheless, only 20-40% of potential customers (who have used travel agent at least once since 2011 and earn >500Lv) have used Astral at least once for the last 5 ½ years

How is internet used for travel organization?

• About 40% of respondents use internet at least once a year (60% of those earning 1000-2000 Lv)

• Booking.com is the most used website (21%) together with direct purchase from airlines (22%) – Search engines are used infrequently – 12% together for all websites in the survey (eSky, Expedia, USIT, etc)

– Income is the best predictor for how actively is internet used for travel organization

– Age matters for the use of search engines and direct purchase from airlines (though not for booking.com) after 50. City of residence does not play major role in internet usage.

Do attitudes toward use of travel agents, charter flights, group travel, etc differ among survey respondents?

• Residents of large cities earning above 1000 Lv and >40 years of age are important target market, but generally prefer not to have a live interaction with a travel agent, and do not like travelling in groups

• Two attitudes must be addressed with proper marketing in order to reach important target markets – Everyone (especially people in smaller cities) believe that direct purchase from a hotel or airline is cheaper than through a travel agent

– Over 50% of respondents prefer scheduled air flights to charter ones.

• Having a dedicated contact person and organized internal travel are among the most appreciated perks that travel agencies offer. Having a Bulgarian-speaking guide and organized activities are also appreciated, but not as much.

3

Bulgarians travel abroad often, using airline websites and booking.com

Travel agents are used 2x less than internet and even large players have negligible share

12%

9%

22%

33%

2%

21%

24%

21%

38%

59%

4

What is the likelihood in a given year for someone to have… (n=1985)

Income 500-1000Lv. (n=756)

Travelled abroad

Visited Greece

Used a travel agent

Astral Holidays

Used internet to organize his/her travels

Booking.com

Airline website

Income 1000-2000Lv. (n=245)

Visited Western Europe

Travelled outside Europe

Search engine (eSky,USIT, etc) 7%

3%

13%

22%

1%

12%

18%

21%

28%

54%

15%

10%

36%

49%

3%

32%

34%

31%

60%

80%

Contents

• Main patterns in overseas travel

• Usage of a travel agent or a tour operator

• Internet usage

• Attitudes towards important topics in tourism and outbound travel

• Segmentation and target market

5

About 60% of survey respondents travel abroad every year Majority of those earning above 1000 Leva typically travel more than once a year

22% 22% 10% 5% 3%

20% 24%

30%

22%

10%

6%

18% 31%

30%

36%

3%

12%

18% 22%

2%

4% 17% 25%

<500 Lv 500-1000 Lv 1000-2000 Lv 2000-3000 Lv > 3000 Lv

1 / 2-3 years 1 / year 2-3 / year 3-5 / year 5+ / year Travels abroad

35%

54%

80% 89%

94%

24% 20%

22% 23%

7% 16%

10%

7%

Not working Income N/A

42%

63%

Annual likelihood to travel abroad

For some income groups, age has no influence on travels abroad, whereas for others likelihood grows after 50-55 years

30% 30%

38%

10%

32%

40%

30%

40%

30%

69%

50% 48%

54%

44%

51% 53%

56% 57% 58% 64%

87%

79%

74%

81%

69%

89%

70%

83%

97%

99%

65%

71%

100% 100%

94%

99%

85%

100% 100% 100% 100% 100%

20 25 30 35 40 45 50 55 60 65 70

<500Lv

500-1000Lv

1000-2000Lv

2000-3000Lv

>3000Lv

7

Annual likelihood to travel abroad, %

Age

Almost 25% annual chance for visiting Greece, and 17% for Turkey For most European countries the likelihood is below 5%, outside Europe – even less

8

24%

17% 10%

7%

7%

6%

6%

6%

6%

5%

5%

4%

4%

3%

3%

3%

3%

2%

2%

1%

1%

1%

1%

Malta: 1%

1%

1%

>1%

>1%

>1%

Thai <1%

Annual likelihood for visiting a country, % (n=1985)

Other European countries = 2.9% cumulative chance

≈50% have visited Greece at least once in the last 5 ½ years. Traveling outside Europe is still very rare. More people have visited Slovenia than USA

8%

8%

9%

9%

11%

14%

14%

16%

17%

17%

19%

20%

21%

22%

23%

25%

29%

29%

30%

38%

48%

49%

Netherlands

USA

Belgium

Slovenia

Czech Republic

Hungary

Croatia

Macedonia

France

UK

Serbia / Kosovo

Spain

Austria

Germany

Romania

Turkey (other)

Greece (other)

Italy

Turkey (Istanbul)

Greece (North)

Turkey

Greece

*

* Includes Antalya and Mediterranean resorts

Nearby countries

0.8%

0.8%

0.8%

1.0%

1.0%

1.0%

1.0%

1.2%

1.3%

1.3%

1.3%

1.4%

1.4%

1.9%

2.0%

2.1%

2.2%

2.3%

2.5%

3.0%

3.0%

3.0%

3.6%

3.9%

4.0%

4.1%

4.6%

4.9%

4.9%

5.2%

5.6%

7.2%

7.9%

South Korea Australia / NZ

Argentina Canada

South Africa Brazil Cuba

Malaysia India

Mexico Japan

Indonesia / Bali Other Caribbean

Qatar Finland

Egypt China / Taiwan

Singapore Israel

Sweden Denmark Thailand

Cyprus Poland

Albania Malta Russia

UAE Portugal

Bosnia Slovakia

Switzerland Montenegro

Central and Western Europe

Non-European countries

Chances of having visited a Western European country at least once increase substantially with income levels above BGN 2000

GRE, 29%

GRE, 42%

GRE, 64%

GRE, 73%

GRE, 83%

TUR, 23%

TUR, 41%

TUR, 51% TUR, 48%

TUR, 56%

ITA

ITA, 21%

ITA, 46%

ITA, 54%

ITA, 63%

ROM, 14%

ROM, 26% ROM

ROM, 29% ROM, 31%

GER

GER

GER

GER

GER

AUT

AUT

AUT

AUT, 43%

AUT

SRB

SRB

SRB

SRB

SRB, 44%

UK

UK

UK

UK, 48% UK

FRA

FRA

FRA

FRA, 35%

FRA

SPA

SPA

SPA, 33%

SPA

SPA, 53%

USA USA, 3%

USA, 9%

USA, 20%

USA, 36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

10

Likelihood for having visited a country at least once since 2011, %

Monthly Income (BGN)

<500 500-1000 1000-2000 2000-3000 >3000

50% have visited Greece at least once in the last 5 ½ years. More people have visited Istanbul and North Greece than any other European country.

8%

8%

9%

9%

11%

14%

14%

16%

17%

17%

19%

20%

21%

22%

23%

25%

29%

29%

30%

38%

48%

49%

Netherlands

USA

Belgium

Slovenia

Czech Republic

Hungary

Croatia

Macedonia

France

UK

Serbia / Kosovo

Spain

Austria

Germany

Romania

Turkey (other)

Greece (other)

Italy

Turkey (Istanbul)

Greece (North)

Turkey

Greece

*

* Includes Antalya and Mediterranean resorts

No income <500 500-1k 1-2к 2-3к 3К+

38% 29% 42% 64% 73% 83%

32% 23% 41% 51% 48% 56%

27% 19% 30% 54% 66% 76%

21% 14% 30% 38% 40% 46%

22% 9% 21% 46% 54% 63%

22% 17% 25% 34% 46% 56%

22% 13% 27% 34% 30% 24%

21% 14% 26% 23% 29% 31%

20% 8% 16% 25% 40% 48%

17% 7% 15% 29% 43% 47%

17% 5% 12% 33% 39% 53%

12% 9% 16% 27% 39% 44%

13% 3% 10% 27% 48% 50%

15% 5% 10% 24% 35% 48%

12% 7% 16% 18% 27% 22%

10% 6% 12% 21% 28% 29%

10% 7% 13% 16% 27% 24%

9% 3% 8% 15% 22% 24%

6% 4% 8% 11% 18% 18%

7% 2% 5% 15% 20% 22%

5% 2% 3% 9% 20% 36%

6% 2% 3% 9% 28% 26%

Central and Western Europe / Other continents

USA is the first non-European destination

Nearby countries

Only 5% have been to UAE, 3% to Thailand and 1.5% to Indonesia Destinations outside Europe are visited by just 3-6% of those, earning above 3000 Leva

0.8%

0.8%

0.8%

1.0%

1.0%

1.0%

1.0%

1.2%

1.3%

1.3%

1.3%

1.4%

1.4%

1.9%

2.0%

2.1%

2.2%

2.3%

2.5%

3.0%

3.0%

3.0%

3.6%

3.9%

4.0%

4.1%

4.6%

4.9%

4.9%

5.2%

5.6%

7.2%

7.9%

South Korea

Australia / NZ

Argentina

Canada

South Africa

Brazil

Cuba

Malaysia

India

Mexico

Japan

Indonesia / Bali

Other Caribbean

Qatar

Finland

Egypt

China / Taiwan

Singapore

Israel

Sweden

Denmark

Thailand

Cyprus

Poland

Albania

Malta

Russia

UAE

Portugal

Bosnia

Slovakia

Switzerland

Montenegro

No income <500 500-1k 1-2к 2-3к 3К+

Montenegro 4.2% 1.8% 15.2% 9.4% 3.6% 4.2%

Switzerland 5.8% 1.2% 10.3% 5.2% 4.8% 9.1%

Slovakia 3.9% 0.6% 11.2% 6.1% 2.7% 2.4%

Bosnia 1.2% 1.2% 10.6% 4.8% 2.4% 3.6%

Portugal 3.6% 0.3% 3.6% 4.5% 4.5% 6.1%

UAE 2.1% 0.3% 3.9% 5.2% 3.9% 6.4%

Russia 4.2% 1.2% 7.9% 3.6% 1.5% 3.6%

Malta 3.9% 0.6% 3.3% 3.3% 3.6% 4.5%

Albania 2.1% 0.6% 7.0% 3.9% 3.0% 2.1%

Poland 3.0% 1.2% 7.0% 2.4% 1.5% 3.3%

Cyprus 2.4% 1.2% 4.5% 3.0% 2.1% 3.9%

Thailand 1.2% 2.1% 2.1% 3.0% 5.2%

Denmark 1.2% 0.6% 2.1% 3.3% 2.7% 3.9%

Sweden 1.2% 0.3% 2.1% 3.3% 3.6% 3.9%

Israel 1.8% 0.3% 5.2% 2.1% 1.5% 1.8%

Singapore 1.2% 0.6% 2.7% 5.8%

China 0.9% 0.9% 0.6% 2.1% 4.8%

Egypt 1.2% 2.4% 1.8% 1.8% 2.4%

Finland 0.9% 0.3% 1.8% 1.8% 1.5% 2.7%

Qatar 0.3% 0.6% 1.2% 2.1% 3.3%

Other Caribbean 0.3% 0.3% 0.6% 1.2% 1.8% 2.7%

Indonesia / Bali 0.6% 0.3% 1.5% 3.0%

Japan 0.3% 0.3% 0.6% 0.9% 0.6% 3.0%

Mexico 1.2% 0.3% 0.9% 1.2% 2.4%

India 0.3% 1.2% 1.2% 2.1%

Malaysia 0.6% 1.5% 2.1%

Cuba 0.3% 0.6% 1.5% 1.8%

Brazil 0.9% 1.5% 1.8%

South Africa 0.6% 0.6% 0.6% 0.9% 1.5%

Canada 0.3% 0.3% 0.3% 0.3% 1.8% 1.2%

Argentina 0.6% 0.9% 2.1%

AUS / NZ 0.3% 0.6% 0.6% 0.3% 0.9%

South Korea 0.3% 0.6% 0.6% 1.8%

European countries

27% of all outbound travelers since 2011 have only visited nearby countries. The rest have been to Western Europe or beyond

13

Greece Turkey

Western Europe

Other Nearby Countries

336

106

55

173 78

98

60

67

33

71 57

44

96 62

88

549

Haven’t travelled abroad

Greece & Turkey only

Western Europe and Nearby countries (without Greece & Turkey)

12 Have only travelled

outside Europe

(n=1985)

People in Sofia, Plovdiv, Varna and Burgas travel ≈15% more Controlling for income, location does not seem to play major role.

19% 24%

21%

13% 14%

33%

17% 11% 14%

20% 14% 14% 14%

24%

16% 14%

11%

18%

11% 7%

10%

21% 19%

8% 9%

18%

11% 10%

Spain Italy Germany France

Sofia Plovdiv Varna Burgas Ruse Regional capital Other city

Percentage of respondents, earning 500-1000 Lev, who have visited at least once the following country (per city of respondent):

24% 30%

18%

6%

47%

31% 28%

8%

29% 24%

8% 8%

32% 30%

16% 8%

29%

11% 11% 4%

31% 24%

16% 5%

29% 26%

13% 4%

Turkey (resorts) Greece (Central / South) Austria Belgium

Respondents: Sofia (67), Plovdiv (36), Varna (51), Burgas (37), Ruse (28), Regional Capital (296), Other cities (202)

Contents

• Main patterns in overseas travel

• Usage of a travel agent or a tour operator

• Internet usage

• Attitudes towards important topics in tourism and outbound travel

• Segmentation and target market

15

21% of all respondents use travel agent every year, and 1/3 – at least once since 2011. Those in 1000-2000Lv category do most often.

4% 6% 9% 9% 11%

8%

10% 12% 15% 12%

7%

12%

17% 10% 11% 2%

5%

3% 1%

2%

2%

<500 Lv 500-1000 Lv 1000-2000 Lv 2000-3000 Lv > 3000 Lv

Undeclared 1 / 2-3 years 1 / year 2-3 / year 3+ / year

6%

11%

10%

11%

9%

14%

1%

3%

4%

Not working Income N/A

Usage of tour agent

11% / 19%

21% / 32%

31% / 45%

23% / 39%

21% / 36%

18% / 28%

28% / 43% XX% / XX% Use TA every year / Used at least once since 2011

(“Undeclared” means that the survey respondent has indicated using a travel agent, but not mentioned how often)

Travel agent use grows slowly with age and peaks at 50+ years No big differences for all city/income groups till 45 years, then income determines TA use

12% 11% 14% 18% 15% 17%

21% 22% 25%

27%

38%

27%

47% 46%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

20 25 30 35 40 45 50 55 60

Average

<BGN500 All cities

BGN500-1000 Sf/Pd/Vn

BGN500-1000 Reg.capital

BGN500-1000 Other

BGN1k-2k Sf/Pd/Vn

BGN1-2k Other

>BGN2k All cities

Percentage of respondents use a TA / TO annually (by respondent’s age) (n=1985)

17

Astral Holidays is the second most used company (6.6% from all respondents) , but has very few repeat customers

161

25

25

26

26

31

31

38

49

50

58

60

63

68

81

91

94

112

105

113

58

2

3

3

3

5

7

13

10

18

15

13

19

18

24

40

9

7

Others

Win Travel

Destination Touristic …

Hermes Holidays

Jupiter Travel

Compass

Mondel Travel

Marbro Tours

Solvex

TEZ Tour

Geographic World

USIT Colors

Albena Tour

Sunny Tours

Rual Travel

Alfatour

Emerald Travel

Karaci Tours

Astral Holidays

Bohemia

Once

2-3 times

4+ times

Respondents who have used TA/TO at least once since 1/1/2011 (out of 1985 in total)

18

160 Total

131

131

117

108

98

95

76

75

67

57

53

41

34

33

28

27

26

25

239

Average repeats per client since 1/1/2011

1.00

1.06

1.09

1.11

1.13

1.15

1.16

1.20

1.24

1.27

1.28

1.31

1.33

1.34

1.36

1.37

1.38

1.55

1.67

Win

Destination

Compass

Marbro

Mondel

Hermes

Solvex

Jupiter

Karaci

TEZ

Geo.World

Rual

Alfatour

Astral

Albena

USIT

Emerald

Bohemia

Sunny tours

Astral is the second most recognized brand after Bohemia Unprompted brand recognition best in Sofia, Plovdiv, Varna, and among younger high-earners

Answers (n=709)

% of customers

Location Age Income

Sofia Pd/Varna Reg. Cap. Smaller <30 30-49 50+ 500-1000 1-2 ths. 2000+

Astral Holidays 156 31% 36% 54% 12% 15% 30% 25% 12% 14% 29% 40%

Bohemia 220 50% 29% 44% 32% 36% 26% 28% 40% 35% 35% 31%

Karaci Tours 66 24% 11% 13% 9% 10% 13% 7% 11% 11% 5% 9%

Emerald Travel 85 50% 7% 19% 13% 21% 9% 12% 14% 13% 11% 5%

Alfatour 77 26% 16% 17% 10% 6% 11% 11% 10% 10% 13% 17%

Rual Travel 73 31% 8% 22% 13% 8% 9% 9% 14% 11% 12% 8%

Sunny Tours 33 35% 2% 6% 6% 7% 2% 6% 4% 5% 4% 1%

19

• Astral Holidays has best brand recognition in Sofia and Plovdiv and also among people aged below 30 and those earning above 2000 Lv.

• It is second by a small margin in the 30-49 category and among those earning 1000-2000 Lv.

• Bohemia is the most often recognized brand (50% more than Astral) and is first or second in any category • It is three times more popular than Astral in regional capitals and smaller cities as well as among people earning

500-1000Lv (might be due to Bohemia’s bus lines to Europe)

• About 1/3 of Astral’s own clients have recognized the company’s name without external help, while the same share among Bohemia’s and Emerald’s customers is 50%

• This may be related to Astral’s customers simply not wanting to fill in additional fields in the questionnaire

“XX% of clients” means how may of the company’s own clients have recalled brand when asked to identify major Bulgarian tour operators and travel agents

Compared to the general population, Astral’s clients are mostly aged above 45 and earn above 1000 Leva / month

6%

6%

5%

4%

9%

6%

4%

4%

8%

10%

9%

6%

19%

7%

5%

5%

5%

13%

6%

15%

4%

6%

7%

17%

18%

22%

2%

17%

50%

25%

10%

4%

20%

14%

10%

4%

22%

25%

22%

9%

6%

40%

50%

20%

15 20 25 30 35 40 45 50 55 60 65

Does not work

Undeclared income

<500 Lv

500 – 1000 Lv.

1000 -2000 Lv..

2000 - 3000 Lv..

>3000 Lv.

+

Percentage of respondents (per age and income group) who have used Astral at least once since 1/1/2011

20 “50%” means that half of the survey respondents in a given income / age segment have used Astral at least once since 2011

However, only 20-40% of the travel agent users earning above 500Lv have been Astral’s customers at least once since 2011

Not working Undeclared

income <500 Lv 500-1000 1000-2000 2000-3000 >3000 Lv

Sofia 20% 37% 20% 21% 27% 21%

Plovdiv 63% 71% 29% 38%

Varna 30% 17% 26% 20%

Burgas 0% 14% 0%

Ruse 25% 13% 25%

Reg. Capital 22% 13% 5% 14% 39%

Other city 14% 20% 0% 7% 14%

21

Astral’s customers as a percentage of all travel agent users since 2011

Takeaways: • Even if only focusing on clients >45 years and earning 1000-2000Lv, potential market is about 2.5-3

times bigger across the country (for Sofia, it is 5x bigger) • Whereas those with income 500-1000 Lv are not part of our current target market, they use TA/TO

relatively actively. Given the 21% usage rate from earlier slides, Astral has a quite substantial room for growth in those income segments.

Bohemia has more clients earning <1000 Lv, and among high earners aged 50-60, while Astral is better among 40-50 and 60+

+

1%

6%

4%

2%

9%

3%

5%

3%

17%

18%

22%

3%

17%

25%

7%

40%

50%

6%

5%

8%

7%

9% 5%

3% 3%

4%

2%

4%

8%

3%

9%

7%

8%

25%

7%

7%

9%

25%

20%

6%

12%

15 20 25 30 35 40 45 50 55 60 65

Astral has more clients Bohemia has more clients

Percentage point difference among respondents, who have used Astral or Bohemia at least once since 1/1/2011

22

Does not work

Undeclared income

<500 Lv

500 – 1000 Lv.

1000 -2000 Lv..

2000 - 3000 Lv..

>3000 Lv.

Brand loyalty does not depend on income and age About 25% use 1, 2, 3, or more travel agents and tour operators

29% 25% 22% 11% 14% 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

1 2 3 4 5+

<30 30-39

40-49 50+

Income 500-1000 Lv

24% 18% 26% 18% 14% 0%

5%

10%

15%

20%

25%

30%

35%

1 2 3 4 5+

<30 30-39

40-49 50+

Income 1000-2000 Lv

25% 33% 20% 7% 15% 0%

5%

10%

15%

20%

25%

30%

35%

1 2 3 4 5+

30-39

Income 2000+ Lv

TA/TO used since 2011 TA/TO used since 2011 TA/TO used since 2011

23

85% of the clients of smaller firms have used 4+ competitors, whereas 10% of the clients of large TAs have not used any others

0 1 2 3 4+

Bohemia 10% 16% 23% 17% 34%

Astral Holidays 11% 14% 24% 15% 37%

Karaci Tours 11% 17% 23% 10% 39%

Emerald Travel 9% 17% 22% 14% 38%

Alfatour 11% 17% 18% 14% 41%

Rual Travel 5% 10% 19% 19% 46%

Sunny Tours 8% 19% 16% 12% 45%

Albena Tours 13% 17% 13% 13% 43%

USIT Colors 9% 19% 16% 11% 45%

Geographic World 1% 12% 15% 15% 57%

TEZ Tour 4% 4% 23% 12% 58%

Solvex 2% 15% 9% 17% 57%

Marbro Tours 5% 7% 7% 5% 76%

Mondel Travel 0% 6% 3% 9% 82%

Compass 0% 3% 6% 9% 82%

Jupiter Travel 0% 0% 4% 4% 93%

Hermes Holidays 4% 0% 4% 4% 89%

Destination Touristic Services 0% 0% 4% 4% 92%

Win Travel 0% 4% 4% 0% 92%

How many other travel agents / tour operators have you used?

24

Only 11% of Astral’s customers have used it exclusively, but they are mostly in the 1000+ Lv income group

Clients who have used only 1 tour operator

11

1

1

1

3

2

3

2

1

2

5

1

1

2

1

2

1

2

1

2

7

1

1

1

2

2

1

16

1

1

2

2

5

4

3

4

2

9

7

7

1

1

2

3

5

2

1

1

1

1

2

2

2

1

1

1

2

1

OtherTA

Hermes Holidays

Solvex

Geographic World

TEZ Tour

Marbro Tours

Rual Travel

Usit Colors

Sunny Tours

Emerald Travel

Albena Tours

Alfatours

Astral Holidays

Karaci Tours

Bohemia

N/A N/D <500 500-1K 1K-2K 2K-3K >3K

25

About 30% from the clients of the three biggest firms have used both others, while 50% have used at least one of them

37

24 22

20

14 16

15

Other

38

Other 33

Other

63

26

The large firms have most mutual clients Almost 100% of the customers of the small TAs have used most other competitors

Общо Туроператор Албена Тур

108 Alfatour 34 Alfa

131 Astral Holidays 34 50 Astral Holidays

160 Bohemia 39 50 57 Bohemia

67 Geographic World 29 31 36 40 Geographic World

26 Destination Touristic Services 23 24 24 25 24 Destination

117 Emerald Travel 32 35 43 51 37 24 Emerald

131 Karaci Tours 32 42 59 61 32 25 52 Karaci

33 Compass 25 25 28 29 24 23 25 26 Compass

41 Marbro Tours 23 27 32 28 26 23 25 30 23 Marbro Tours

34 Mondel Travel 25 25 25 30 26 23 26 24 24 23 Mondel Travel

98 Rual Travel 28 36 46 55 35 23 44 47 27 27 28 Rual

53 Solvex 26 27 29 35 26 23 29 31 24 27 25 30 Solvex

95 Sunny Tours 35 39 44 39 28 23 39 40 26 27 23 34 28 Sunny

57 TEZ Tour 26 36 35 30 28 23 31 34 24 27 23 27 30 33 TEZ

25 Win Travel 23 23 23 23 22 23 23 23 23 23 23 24 23 23 24 Win

27 Hermes Holidays 24 25 24 24 23 23 23 23 23 23 23 24 23 23 23 23 Hermes

28 Jupiter Travel 25 25 25 24 24 24 24 28 23 24 23 23 24 23 25 23 23 Jupiter

75 Usit Colors 33 36 36 42 26 23 25 32 26 24 25 28 26 31 26 23 24 25 Usit

245 Others 22 16 39 77 32 12 65 44 11 19 19 48 23 38 27 12 13 11 31

Total for the TA 76 108 131 160 67 26 117 131 33 41 34 98 53 95 57 25 27 28 75

Survey respondents who have used both companies at least once since 2011

27

Contents

• Main patterns in overseas travel

• Usage of a travel agent or a tour operator

• Internet usage

• Attitudes towards important topics in tourism and outbound travel

• Segmentation and target market

28

Booking.com and direct purchases from airlines dominate internet traffic. Other websites are infrequently used.

29

Average annual users of websites and applications

25

41

45

48

58

91

107

162

214

312

411

Kayak

Expedia

Usit Colors

hotels.com

SkyScanner

eSky

AirBNB

Hotel websites (no search engines)

Regular airline

Budget airline

Booking.com 21%

16%

11%

8%

5%

5%

3%

2%

2%

2%

1% 29

67

111

80

72

219

120

230

231

334

321

21

25

56

60

101

141

159

29

34

56

78

118

208

Kayak

Expedia

Usit Colors

hotels.com

SkyScanner

eSky

AirBNB

Hotel websites (no search engines)

Regular airline

Budget airline

Booking.com

1-2 times

3-5 times

6+ times

Average clients who have used a website at least once since 2011:

688

593

410

346

210

257

114

112

129

95

48

Income plays highest role for the use of booking.com. Age does not have a significant influence.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

20 25 30 35 40 45 50 55 60

<500 500-1000 Sf/Pd/Vn 500-1000 Reg 500-1000 Oth 1-2к Sf/Pd/Vn 1-2к Reg/Oth 2к+

30

• For respondents earning >2000Lv, 90% of those around 30 and above 55 have used the website at least once since 2011. Lower usage for those aged 45-50 might be due to lack of time, or preference for live interaction with travel agent.

• Whereas those earning 500-1000Lv in Sofia, Plovdiv and Varna use the site about the same, regardless of their age, people under 35 in smaller cities use it more actively, whereas in regional capitals, usage peaks for those aged 35-50.

Age is not a factor for the use of budget airline websites, but location may play a role sometimes

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

20 25 30 35 40 45 50 55 60

<500 500-1000 Sf/Pd/Vn 500-1000 Reg 500-1000 Oth 1-2к Sf/Pd/Vn 1-2к Reg/Oth 2к+

31

1

2

1. Citizens of Sofia, Plovdiv, and Varna earning 500-1000Lv use the websites of low cost airlines about 20% more than people with the same income in other cities (which is logical, given that low cost airlines fly only to those cities)

2. Sudden peaks and troughs for those earning 1000-2000Lv in regional capital and smaller cities might be related to the relatively small number of respondents in those categories (between 12-29 people for each age segment)

eSky is used mostly by those earning >1000Lv and aged >40 It is also used by citizens of Sofia, Plovdiv and Varna with lower incomes

0%

5%

10%

15%

20%

25%

30%

35%

40%

20 25 30 35 40 45 50 55 60

<500 500-1000 Sf/Pd/Vn 500-1000 Reg 500-1000 Oth 1-2к Sf/Pd/Vn 1-2к Reg/Oth 2к+

32

1. Significantly more young people (age <30) use eSky in Sofia, Plovdiv, and Varna, than in regional capitals and other cities

2. For those aged 30-45, differences are relatively small regardless of income or location

3. About 30-35% of those aged around 50 use eSky. Usage afterwards drops significantly as age grows

4. About 5-15% of those earning <1000Lv and aged >40 use the website, regardless of their location

1 3

4

2

Contents

• Main patterns in overseas travel

• Usage of a travel agent or a tour operator

• Internet usage

• Attitudes towards important topics in tourism and outbound travel

• Segmentation and target market

33

Travel agents are not considered an anachronism For all 6 questions, opinions are mostly equivocal with a slight positive preference

3.44 3.64 3.63

4.06 4.11

5.81 5.93

2.32

2.63

2.94

2.06

3.02 2.80

3.80

2.92 3.14 3.16

3.36 3.59 3.64

5.29

1

2

3

4

5

6

7

Foreign websites are more reliable

I prefer regular flights to charter

Direct booking better than travel agent

I don't like group travel

Direct booking better than metasearch

I prefer live contact with travel rep

Travel agents are an anachronism

34

100% disagree

100% agree

50/50

For every question, the graph shows the difference between the highest, lowest, and average opinion for 10 different socio demographic groups (e.g. citizens of Sofia / Plovdiv / Varna earning 500-1000Lv, respondents earning 3000+ Lv, etc.)

Age plays no role on a respondents’ opinion for 4 of the questions, whereas for the other 3 questions differences are more significant

1

2

3

4

5

6

7

20 25 30 35 40 45 50 55 60

Foreign websites Direct booking better than TA Direct hotel better than metasearch Regular flight vs Charter

35

1

2

3

4

5

6

7

20 25 30 35 40 45 50 55 60

TA is an anachronism Prefer live communication Don't like groups

100% yes

100% no

100% yes

100% no

High-earners in Sofia, Plovdiv and Varna seem most opposed to travel agents, group traveling and personal visit to tourist offices

5.5 5.1 5.3 4.8 4.0 3.4

5.4 5.3 5.9 5.7 7.0

6.3 5.3 5.8 5.9 5.9

Unemployed income <500 500-1000 1000-2000 2000-3000 3000+

Sofia / Plovdiv/ Varna Regional Capitals Other

36

Tour operators and travel agents are an anachronism (1=yes, 7=no)

The only group with negative opinion to travel agents is high-earners in the 3 largest cities. Paradoxically, support is strongest among those in smaller cities earning BGN 2000+

3.4 2.5 3.7

5.0 5.6 6.2

2.5 3.1 2.9 3.5 3.3 3.3 3.5 2.8 3.0 3.3

I prefer to visit a TA office and to talk to someone (live) before deciding where to travel (1=yes, 7=no)

3.3 3.9

3.2 2.8 2.2 1.8 3.3 3.4

4.1 3.5 2.8

4.0 3.4 3.9 4.1 3.9

Unemployed Income <500 500-1000 1000-2000 2000-3000 3000+

I don’t like group travels and prefer to organize my vacations on my own (1=yes, 7=no)

High-earners in Sofia, Plovdiv and Varna don’t like to visit offices and talk to people. They also don’t like group traveling.

Some marketing may be required to improve perceptions of purchasing through travel agent and toward charter flights

3.6 3.2 3.2 3.4 3.2 2.8 2.9 3.1 3.1 3.3 3.2 3.2 2.9 2.6

Sofia / Plovdiv/ Varna Regional Capitals Other

37

Direct purchase from a hotel / airline is better than through a travel agent (1=yes, 7=no)

All groups believe slightly more that purchasing directly is better than through intermediary, and views seem slightly more negative for travel agents than for internet search engine.

4.1 3.9 3.7 3.7 4.1 3.1 3.1 3.4 3.5 3.6 3.1 3.4 3.6 3.4

Unemployed income <500 500-1000 1000-2000 2000+

Direct purchase from a hotel / airline is better than through a search engine (1=yes, 7=no)

3.0 3.7 3.6 3.6

3.0 2.8 2.6 2.6 3.2 3.4 3.8

4.5

3.3 2.6

3.3 3.9

Unemployed Income <500 500-1000 1000-2000 2000-3000 3000+

I prefer regular flights to a charter (1=yes, 7=no)

For some reason, nobody seems to like charter flights (apart from high-earning regional capital residents – but not those in Sofia, Plovdiv or Varna)

Having organized transport and dedicated contact person are the most appreciated “perks” that travel agencies offer

38

2.1 2.3 2.3 2.4 2.2 1.8 1.7 1.8 1.6

1

2

3

4

5

20 25 30 35 40 45 50 55 60

All <BGN1k BGN1k-2k BGN2k+

Organized transport is important for everyone (avg. rate 2.0/5), mostly to people earning <BGN1k and to those aged above 40

Imp

ort

ance

3.0 3.1 3.3 3.2 2.8

2.1 2.2 1.9 1.8

20 25 30 35 40 45 50 55 60

Having a Bulgarian-speaking guide is less important (avg. 2.6), but opinions vary a lot with age and income

2.8 3.1 3.1 3.2 3.0 2.6 2.6 2.4 2.2

1

2

3

4

5

20 25 30 35 40 45 50 55 60

All <BGN1k BGN1k-2k BGN2k+

Organized activities have below average importance (2.8/5) with a small preference by respondents above 45

Imp

ort

ance

2.0 2.3 2.4 2.3 2.1 1.9 1.8 1.7 1.7

20 25 30 35 40 45 50 55 60

Having a dedicated contact person is important (2.0/5) regardless of age for those earning <2000Lv. Its importance for high earners increases above 50.

Contents

• Main patterns in overseas travel

• Usage of a travel agent or a tour operator

• Internet usage

• Attitudes towards important topics in tourism and outbound travel

• Segmentation and target market

39

41

44

47

51

54

57

61

64

67

Cat 31

Cat 34

Cat 37

All respondents have been grouped into 28 categories based on their age, city of residence and income group

40

Not working

Cat

11

Cat

14

Cat

17

Cat

21

Cat

24

Cat

27

Income BGN 500-1000

71

74

77

81

84

87

BGN 1000 - 2000

Income below BGN 500

91

94

97

Cat: 0

Undeclared income

BGN 2000 +

e.g. “Citizen of regional capital, aged 30-49 and earning BGN 500-1000”

The likelihood to travel abroad, to use a travel agency or internet and the attitudes towards important travel-related questions have been mapped

41

Segment n= Avg trips

abroad p.a.

Annual chance to visit Annual use of internet Use of travel agent Predispositions (1=agree, 7=disagree)

Greece/ Turkey

Near countries

Western Europe

Accommodation Airfare Since2011 Annually

Live chat with rep

Don’t like groups

Scheduled flights

Direct booking

Internal transport

BG tour guide

Org activities

Contact person

0 279 1.65 39% 51% 39% 15% 13% 36% 23% 3.20 2.79 2.08 1.93 2.04 2.88 3.03 2.04

11 63 0.93 25% 35% 30% 12% 7% 22% 11% 3.14 2.65 2.10 2.32 2.02 3.10 2.79 2.04

14 40 1.53 33% 47% 47% 18% 13% 43% 24% 3.63 2.30 1.80 3.23 1.92 3.42 3.44 2.15

17 37 0.51 17% 24% 12% 1% 1% 16% 7% 3.03 3.30 1.27 1.59 1.91 2.39 2.78 2.06

21 64 0.65 26% 33% 15% 5% 3% 19% 13% 3.14 2.64 2.03 1.73 2.13 2.63 2.88 2.07

24 66 0.64 20% 24% 20% 7% 2% 17% 9% 2.39 2.12 1.83 1.86 2.18 2.35 2.73 1.80

27 72 1.12 34% 41% 24% 6% 3% 42% 22% 1.63 3.25 1.74 1.32 1.58 1.69 1.99 1.45

31 23 1.51 45% 58% 38% 11% 7% 52% 42% 2.22 5.09 2.35 2.74 1.41 1.78 2.43 1.26

34 93 0.53 19% 28% 9% 3% 2% 20% 10% 2.69 2.82 1.51 1.75 1.59 1.74 1.98 1.63

37 41 0.43 17% 24% 12% 2% 2% 17% 7% 1.80 2.93 1.66 1.10 1.53 1.90 1.87 1.55

41 85 1.16 32% 46% 29% 14% 10% 34% 18% 3.68 2.92 2.80 2.22 2.22 2.93 2.90 2.19

44 65 1.02 33% 43% 26% 14% 10% 32% 15% 3.32 2.74 2.45 2.54 2.23 2.67 3.09 2.22

47 29 1.2 37% 50% 23% 5% 3% 38% 27% 2.21 3.07 2.48 1.69 1.90 1.55 2.04 1.61

51 43 0.7 19% 25% 13% 13% 9% 21% 12% 2.63 3.12 2.33 2.16 2.49 2.67 2.64 1.80

54 220 0.91 32% 44% 19% 11% 5% 35% 23% 2.65 3.52 2.16 2.02 1.59 1.84 2.43 1.59

57 113 1.13 33% 45% 26% 11% 7% 32% 18% 2.18 3.92 2.18 1.64 1.78 1.91 2.65 1.86

61 13 1.15 31% 47% 36% 8% 8% 46% 27% 4.31 3.54 3.23 2.54 1.77 1.85 2.08 2.23

64 138 0.85 28% 36% 18% 5% 5% 25% 15% 2.42 3.33 2.14 1.60 1.87 2.02 2.51 1.83

67 47 1.09 38% 50% 23% 4% 2% 36% 18% 2.53 4.13 2.36 1.79 1.72 1.83 2.11 1.73

71 43 1.85 48% 58% 56% 19% 16% 37% 18% 5.19 2.72 2.72 2.72 2.74 4.12 3.81 2.95

74 89 1.96 52% 65% 57% 22% 20% 36% 27% 4.27 2.39 2.63 2.38 2.49 3.83 3.66 2.50

77 14 1.95 47% 61% 53% 23% 15% 64% 42% 3.14 4.57 3.29 2.64 1.71 2.36 2.77 2.31

84 69 1.54 45% 59% 36% 18% 13% 49% 27% 3.09 2.78 2.42 1.81 1.98 2.58 2.59 2.00

87 24 2.06 51% 67% 47% 28% 25% 75% 55% 2.75 3.75 2.96 2.38 2.00 1.79 3.00 1.78

91 38 2.97 52% 75% 75% 30% 21% 32% 10% 5.32 1.92 2.26 2.29 2.97 4.74 4.03 3.22

94 155 3.16 66% 74% 69% 27% 20% 35% 20% 5.12 1.92 2.17 2.65 2.94 4.46 3.95 3.23

97 17 4.39 73% 88% 81% 46% 35% 71% 48% 4.35 2.35 2.76 2.24 2.13 3.44 2.40 1.94

1

1

2

2

3

3

Thes

e n

um

ber

s re

fer

to

cate

gori

es o

n t

he

nex

t p

age

Astral should focus on people outside Sofia, Plovdiv and Varna earning 1000-2000Lv, and on those aged 50+ in the biggest cities who earn above BGN1k

(1) Ideal customers are: (2) High potential group, but hard to get (3) Low potential, easier to attract

1. People from all age groups living outside Sofia, Plovdiv, and Varna, earning 1000-2000 Lv.

2. Citizens of Sofia, Plovdiv and Varna aged 50+ and earning above 1000 Lv.

1. People earning BGN2000+ and aged below 50

2. Young people in Sofia, Plovdiv and Varna (age <30) who earn 1000-2000

1. People earning BGN 500-1000 and living in Sofia, Plovdiv and Varna

2. (Secondary option) people earning BGN 500-1000, aged 30+ in smaller cities

• Good chance to travel abroad (55% annual likelihood for visiting Western Europe for SOF/PLD/VAR and 40-50% for other cities) and to use travel agent (40% S/P/D, 30-50% others)

• Favorable attitude toward talking to a live rep and visiting travel office, group and charter travel, BG-speaking guide, etc

• Travel the most (70-80% chance of visiting Western Europe per year and 60% for those earning 1000-2000 Lv)

• One of the lowest chances of using a travel agent (only 10% for people aged <30 and earning BGN2k+)

• Least interested in visiting office and talking to a live representative

• Least interested in having dedicated contact person, organized travel, etc.

• Travel 3x less than high-income people and 50% less than those in the BGN1000-2000 category

• About 20% chance of using TA (almost 30% for those, aged 50+)

• Those outside Sofia, Plovdiv and Varna have very favorable attitude toward visiting travel offices, group travel, organized transport and activity, etc.

42

Next steps and issues to consider

• Finding new destinations to travel is NOT the most important strategic question

– Out of ≈20% who use travel agents every year, only 1% use Astral. The remaining 19% go to the same destinations, where Astral travels

– The more rewarding question is how to attract the remaining 19% to use Astral and not another TA

• Focusing on locations outside Sofia, Plovdiv and Varna can increase customers fastest

– They travel often, are comfortable with using travel agent and are more favorable than visiting travel offices, traveling with charter flights and in organized groups, etc. then people in Sofia, Plovdiv and Varna (especially younger ones and those earning BGN 2000+)

– The real question is how to penetrate this market? Is it a good idea to open offices in a few cities, or through telemarketing and a better advertising campaign?

• Organized marketing campaign can be used to improve opinion towards travel agents

– Should focus on the fact that value added services (contact person, organized travel, etc) are a big advantage.

– Current marketing is very simple and has not changed for 20 years – it “sells” a specific destination by presenting a picture, the price, and some very basic location (how many nights / what category hotel). This type of marketing cannot improve attitudes towards travel agents on its own.

43