State of Travel 2015: Europe

2015

INTRODUCTION

Welcome to the Europe installment of Skift’s annual State of Travel data deck. Last year we launched

the global State of Travel data deck, and this year Europe is our first in other major global industry

regions to come, including Latin America, Asia, Middle East and others.

Evolving from our daily coverage of the global travel industry, fueled by our ongoing series of trend

reports, and featuring expert research and insights, what follows is a cross section of key data — in-

formation that frames and contextualizes the vibrant, dynamic European travel landscape.

From overarching trends to the ever-increasing impact of mobile and online technology — and offer-

ing a deep look at what’s happening in every critical travel vertical — this is the state of the travel

industry in Europe in 2015.

Attention is also given to traveler demographics, to the continued influence of the Chinese outbound

traveler on European brands and destinations, and to revenue-relevant sectors such as business

travel, the sharing economy, and ways in which start-ups are reacting to shifting brand, passenger,

and guest demands.

Learn even more about the business of going places by staying in touch with Skift’s in-depth consid-

erations of travel news and trends at skift.com.

Written & curated by James O’ Brien and Rafat Ali, Skift

ABOUT SKIFT

Skift is the largest industry intelligence and marketing platform in travel, providing news,

information, data and services to all sectors of the world’s largest industry.

Based in New York City, Skift has deep experience in identifying and synthesizing existing and

emerging trends, in its daily coverage of the global travel industry, through its Skift Trends Reports

and its data insight from SkiftIQ competitive intelligence service.

Within a short two years of its existence, Skift has become the lingo in the travel industry, and is

now a daily tool by the top strategists, technologists, and marketers in travel.

“Simply love you guys. The freshest cogent ideas / POV’s come from your team. Thanks.”

Christopher Baer, head of innovation, Marriott.

“As a 20 year veteran of technology and travel, Skift has become my must read of the day.”

Michael McDowell, head of innovation, Hertz.

“Talk about a gap in the market. Not sure where we in the travel industry got our news, insight &

analysis from before Rafat created Skift.”

Chris Boden, former head of innovation, Lonely Planet.

The State of European Tourism

Travel and Technology: European Mobile in 2015

OTAs and Online Bookings in Europe

European Airports & Airlines

The European Hospitality Sector

Cruises: European Industry Expands to Meet Demand

Europe's Museums, Attractions, Culture, and Heritage

European Demographics: Millennials, Gen X, Boomers, and More

The Chinese Traveler in Europe

European Business Travel in 2015

The Sharing Economy

The European Travel Start-Up

5

13

21

32

48

56

65

73

81

94

99

104

TABLE OF CONTENTS

THE

STATE OF

EUROPEAN TOURISM

State of Travel 2015: Europe6

Tourism Fuels European Economic Development and Employment

Source: European Commission/DG Enterprise and Industry Tourism Policy Unit (2014)

% of EU GDP

Tourism Sector Only

All Related Sectors

% of Total Employment Number of Jobs Sustained

9M

22M

25

20

15

10

5

0

10

8

6

4

2

0

4.1%

10%10

8

6

4

2

0

9%

3.3%

1


Market Share of International Tourist Arrivals

2 European Tourism Market Share

41%

30%

14%

8%

7%

Europe

Asia Pacific

Middle East

Americas

Africa

Source: ETC (2014)


Tourism Visitor Totals

Projected Avg. Int’l Tourism Growth

% Growth of European Tourism Sector

2010–2025

2.5

2.0

1.5

1.0

0.5

0

2.4%

2014

4

2

0

4%

3 A Year of Growth in Tourism

4002000

2013

2014

600

566M

588M

Overall, inbound European tourism is on a path toward record growth.

Source: UNWTO (2014)


December destinations were dominated by European travelers.

806040200

78%

13%

11%

5%

European Travelers Booking to Europe

Latin American Travelers Booking to Europe

North American Travelers Booking to Europe

Asia-Pacific Travelers Booking to Europe

4 A Year of Growth in Tourism

Source: Sojern (2015)


The European Tourism Commission notes that most of the top-five destinations are “investing in their tourism potential” or marked by the “recovery of business travel and price convenience”.

5 Iceland and Greece Ahead by Visitor-Volume GrowthIceland and Greece Ahead by Visitor-Volume Growth

24%

Czech Republic

Romania

Serbia

Latvia

Greece

Iceland

23%

15%

12%

11%

11%

2520151050

Source: ETC (2014)


29.9%

Lithuania

Montenegro

Romania

Iceland

Greece

28%

26%

19.8%

19.7%

30150

6 Greece and Iceland Also Lead ETC Destinations by U.S. Visitor-Volume Growth

Source: ETC (2014)


Growth in Context: European Market Share — A Critical Juncture

Europe Asia-Pacific Americas Africa

2010–2030

1995–2010

1980–1995

4.1%

8.8%

3.0%

5.3%

3.4%

5.8%

2.2%

6.1%

2.5%

5.0%

2.6%

5.7%

7 International Tourist Arrivals Throughout the Years (% Avg. Growth)

Source: ETC (2014)