Final Report ONE BSR - One Baltic Sea Region
Transcription
Final Report ONE BSR - One Baltic Sea Region
ONE BSR Market Research: US Tourism Demand for the Baltic Sea Region Final Report Munich/Berlin, August 2013 ONE BSR: US Tourism Demand for the Baltic Sea Region ONE BSR Market Research: US Tourism Demand for the Baltic Sea Region Final Report Content Management Summary ............................................................................................................................. - 4 I. Initial Situation .................................................................................................................................. - 9 - II. US Tourism Flows to Europe and the Baltic Sea Region....................................................- 14 1. US travel to world regions, Europe and the BSR cities .......................................................... - 14 - 2. Characteristics and travel patterns of US tourists to Europe .............................................. - 21 2.1 General characteristics and type of travel .................................................................... - 21 - 2.2 Information and booking including online research and platforms................... - 22 - 2.3 Travel patterns, expectations and activities of US tourists ..................................... - 24 - III. Perception of the BSR and its cities in the USA ....................................................................- 27 - IV. Tour Operators for the BSR Cities..............................................................................................- 32 - V. 1. Current relation towards the BSR cities...................................................................................... - 32 - 2. Current BSR leisure tourism products ......................................................................................... - 35 - Future tourism promotion of the BSR cities ..........................................................................- 40 1. Trends and Opportunities ............................................................................................................... - 40 - 2. Suitable Target Groups .................................................................................................................... - 42 - 3. Promising Travel Topics ................................................................................................................... - 44 - 4. Sample Products and Itineraries ................................................................................................... - 48 - 5. City-specific recommendations .................................................................................................... - 52 5.1 Hamburg ................................................................................................................................... - 52 - 5.2 Helsinki ...................................................................................................................................... - 54 - 5.3 Riga ............................................................................................................................................. - 58 - 5.4 St. Petersburg .......................................................................................................................... - 60 - 5.5 Warsaw ...................................................................................................................................... - 63 - 6. Recommended promotional activities for BSR Cities............................................................ - 65 - 7. Marketing strategy recommendations for BSR cities ............................................................ - 71 7.1 First stage: Build travel trade awareness through push marketing ..................... - 71 - 7.2 Second stage: Build consumer awareness.................................................................... - 73 - 7.3 Reaching key target markets ............................................................................................. - 73 -1- ONE BSR: US Tourism Demand for the Baltic Sea Region 7.4 VI. Outreach and support to the travel trade..................................................................... - 74 - Sources...............................................................................................................................................- 77 - Figures Figure 1: Map ONE BSR cities ............................................................................................................................... - 9 - Figure 2: Overview on research activities .................................................................................................... - 10 - Figure 4: Promotion of Copenhagen in the US .......................................................................................... - 12 - Figure 3: Hamburg Travel Planner 2013 ....................................................................................................... - 13 - Figure 5: Residence of US travelers to Europe ........................................................................................... - 16 - Figure 6: Overnights of US tourists in European cities (2011) .............................................................. - 17 - Figure 7: Development overnights of US tourists in BSR cities (Index 2003 =100)...................... - 18 - Figure 8: Foreign and share of US overnights in BSR cities 2012 ........................................................ - 19 - Figure 9: Overnights, cruise passengers and direct flights to BSR cities........................................... - 20 - Figure 10: Attractiveness of the BSR cities ..................................................................................................... - 27 - Figure 11: Current Sale of BSR cities ................................................................................................................. - 32 - Figure 12: Current sale of individual BSR cities ............................................................................................ - 34 - Figure 13: Duration of typical trips including BSR cities ........................................................................... - 35 - Figure 14: Sample Tour “Scandinavia & Russia Plus” .................................................................................. - 36 - Figure 15: Sample tour “Jewels of the Baltics & Scandinavia”................................................................. - 37 - Figure 16: Sample tour “Around the North Sea” .......................................................................................... - 38 - Figure 17: Meeting the locals in Helsinki and Wittenberg ....................................................................... - 41 - Figure 18: “Extraordinary experiences” in St. Petersburg offered by Exeter International ........... - 41 - Figure 19: Suitable target groups for BSR cities ........................................................................................... - 43 - Figure 20: Relevance of travel experiences for the BSR cities ................................................................. - 48 - Figure 21: Selling BSR cities ................................................................................................................................. - 49 - Figure 22: Routes and Clusters including/connecting BSR Cities .......................................................... - 50 - Figure 23: Possible Topics and their Relevance for the Promotion of BSR cities in the US .......... - 51 - Figure 24: B2B-marketing activities recommended for BSR cities ........................................................ - 66 - Figure 25: Recommended Sales and Promotional Material for US Travel Trade.............................. - 69 - Figure 26: Recommended consumer activities ............................................................................................ - 70 - Figure 27: Market Push and Market Pull ......................................................................................................... - 71 - -2- ONE BSR: US Tourism Demand for the Baltic Sea Region Tables Table 1: Relevance and activities of BSR Cities regarding the market USA .......................................... - 11 Table 2: US Travel to international destinations (2012) .............................................................................. - 15 Table 3: Trends in Departures (US Resident Travel to Europe) ................................................................. - 16 Table 4: Main Purpose of Trip (US Resident Travel to Europe).................................................................. - 21 Table 5: Top travel websites in the US (July 2013) ........................................................................................ - 23 Table 6: Top Online Travel Agent sites by share of page views 2012 .................................................... - 24 Table 7: Types of transportation within Europe (US Resident Travel to Europe) ............................... - 25 Table 8: Typical activities (US Resident Travel to Europe) .......................................................................... - 26 Table 9: Promising Tour Operators for BSR cities (extraction from databank) ................................... - 33 Table 10: Tour operators (already selling Hamburg) ...................................................................................... - 54 Table 11: Tour operators (already selling Helsinki) ......................................................................................... - 56 Table 14: Tour operators (already selling Riga)................................................................................................. - 59 Table 13: Tour operators (already selling St. Petersburg) ............................................................................. - 61 Table 12: Tour operators (already selling Warsaw).......................................................................................... - 64 - dwif-Consulting GmbH, Munich/Berlin Michael Deckert, Karsten Heinsohn, Dr. Andrea Möller, Uta Schneider [email protected] in cooperation with Myriad Marketing, Los Angeles/New York Jaclyn Gaffaney, Jennifer Goger, Al Merschen Munich/Berlin, August 2013 -3- ONE BSR: US Tourism Demand for the Baltic Sea Region Management Summary ONE BSR: Project aim and initial situation The aim of the project is to generate an increase of overnight stays from the US market to the involved BSR cities. In this respect, the demand study was launched to prepare the tourism promotion of the BSR cities in the US market. Current tourism promotion of the BSR cities in the US market depends on the local focus and shows to be heterogeneous. None of the BSR cities is pursuing really heavy marketing campaigns directed to the US market on its own nor is the US market a priority market to any of them. If the US market is focused, this is done in cooperative marketing activities with National Tourist Boards, Airlines or supranational cooperation (e.g. Scandinavian Tourism Incorporation). US travel to world regions, Europe and the BSR cities Europe is still the global top destination for US tourists’ international travel, but faces a severe decline and a more and more competitive situation regarding exchange rates, multilateral travel, higher growth rates in Middle East, Africa and Central America. Between 2004 and 2011, US resident travel to Europe has declined by two million departures (- 17 %). Top regional source markets within the US are South Atlantic, Middle Atlantic and Pacific. Western Europe and the United Kingdom are the top destinations in Europe while only one in ten US tourists visits Eastern European destinations. Berlin is the only BSR city among the top ten city destinations in Europe, with Stockholm and St. Petersburg being the only three BSR cities with outstanding attractions for US tourists (according to a quantitative review on trip advisor). Decreasing US tourist shares among incoming tourism in BSR cities show that other international source markets are more dynamic. At the same time, also the length of stay among US tourists in BSR cities has decreased. Best direct accessibility of the BSR is given via Berlin and Copenhagen and future opportunities, showing accessibility as a key factor in terms of direct flight connections to the US. The opening of new or improvement of existing hubs (e.g. Berlin International Airport, new terminal in St. Petersburg) will have the potential to boost US tourism in the BSR and its cities in near future. The same applies for high speed and direct train connections between European and BSR cities. Characteristics and travel patterns of US tourists to Europe Educated, wealthy and experienced, the average US tourist is a best to silver ager being around 50 years, well educated, wealthy, more likely female and an experienced traveler (repeat to Europe). Two third are travelling either with their spouse or family. -4- ONE BSR: US Tourism Demand for the Baltic Sea Region Internet and personal contact as the most important travel planning sources play an increasingly important role in the US tourism market not only for planning the trip but already as a source for travel ideas and possible destinations. Google maps and MapQuest are the top consumer web pages, followed by TripAdvisor, Expedia and Priceline.com. Facebook clearly dominates social media also in matters of travelling. Tourists search mobile, but prefer booking via desktop. The average length of stay in Europe is 19,3 nights and includes 2,2 destinations. Multi-modal travel within Europe is frequent (taxis, trains, busses, ferries), with a preference for high speed trains. Access from the US is by air. Higher standard for accommodation is preferred (four stars+), but there are also target groups for three star offers. Culture and history are the main driving motives for travelling to Europe, but have to be accompanied by attractive complementary offers with regards to shopping opportunities and gastronomy. Perception of the BSR and its cities in the USA There is no clear image of the entire Baltic Sea Region, as the respective cities are very heterogeneous in terms of awareness and attractiveness from the US perspective, ranging from very attractive cities with distinct and positive associations to rather unknown places with a diffuse or even partly negative image. St. Petersburg, Berlin, Stockholm and Copenhagen are rated as the most attractive BSR cities, followed by heterogeneous results for Oslo, Helsinki, Tallinn, Hamburg and Warsaw. Riga, Vilnius, Gdansk and Malmö are rather unknown in the USA and face also “low attractiveness”. “Low attractiveness” seems thus often a result of being not known by tour operators and travel agents as well as being not requested by their clients. History and culture in general are the predominant associations not only with Europe, but also with the BSR cities in particular, with different specifications for the single BSR cities. Tour operator´s market and product development for the BSR cities US travel trade is mostly indifferent and only reacts to the tourists’ demand. The market study could identify experienced sellers to start with, but with most of them selling rather low volume of trips to the BSR. Pull market situation requires BSR cities’ full initiative. Online survey and in-depth interviews have shown that BSR cities will have to engage themselves with strategic and sincere marketing action in order to change the evident pull market situation. In general BSR cities will be part of longer European itineraries. Berlin, St. Petersburg, Copenhagen and Stockholm as the most popular BSR cities and Berlin as the trendy top destination in Germany should be part of future products as the most popular BSR cities. The Scandinavian metropolises -5- ONE BSR: US Tourism Demand for the Baltic Sea Region Stockholm, Oslo and Helsinki profit from pre- and post-cruise offers (especially Copenhagen), good direct air connections as well as the possibility of travel to St. Petersburg from Helsinki (partly visafree). The other BSR cities can only be part of a longer European itinerary or a more differentiated one country tour. The typical travel period for BSR in general is from April to October, partly often with a reference to seasonal events also for other months. Intraregional transport is mainly organized with comfortable coaches while ferries and partly trains are used for certain distances (e.g. Stockholm-Helsinki respectively St. Petersburg-Moscow). Future tourism promotion of the BSR cities Relevant trends and opportunities in the US market are the discovery of new places, the longing for authentic and unique experiences, experiential travel as well as heritage and multi-generational travel. Further developments and opportunities are due to specific good selling points (which apply to the individual BSR cities to different degrees): • the idea of a safe region where English is widely spoken (especially relevant for Scandinavia); • concentrating on selected niche or affinity markets as the BSR and its cities are no destination for the mass market today (requires particular expertise and services for the selected segment to answer the needs of the target group) • specialized tour operators develop specific products and itineraries for defined target groups (e.g. Ancestry and Jewish Heritage, Music and Performance Tours). Suitable target groups are senior citizens as most promising and the concentration on the East Coast as best connected to the BSR and densely populated. Promising travel topics show the highest relevance for Seasonal Events, Museums/Arts and Historical/Cultural Sites, meaning that specific seasonal events should be elaborated as distinctive feature and travel motivation. Regionally, “design” composes an attractive topic for Scandinavian cities, fascinating royal and imperial heritage as well as “Music and European composers” seem most appropriate for Warsaw and St. Petersburg. Ancestry and Heritage Tourism are increasingly popular, but deserve a specific putting in scene, creating individual and unique experiences. Jewish Heritage is strongly focused on Warsaw, maritime culture and waterfronts are mainly suitable for Hamburg (then Stockholm, Copenhagen, Helsinki). Gastronomy and Nordic culinary are an add-on creating no travel motivation of its own. Promising natural sites must be outstanding and specific, leaving the opportunity solely to the Fjords in this region. -6- ONE BSR: US Tourism Demand for the Baltic Sea Region Sample itineraries should include highlight cities considering combinations of especially the Scandinavian Capitals as well as the Capitals of the Baltic States and Helsinki and St. Petersburg (mostly as part of a larger tour). BSR cities should rather focus on a certain theme or tailored trip than trying to “be all things to everybody”. “History and culture” are the main topics and suitable for all, while further topics are mostly niches for only a few of the BSR cities, specific target groups and specialized tour operators. The choice of major gateway cities such as Berlin or Copenhagen and the bundling of cities to geographic clusters respectively cities with good public transport connections are highly recommended in terms of enhancing accessibility. According to the polled tour operators, escorted group travel would work best for a BSR cities itinerary. Apart from traveling through the region by cruise, Pre- and Post-Cruise Tours are considered a promising opportunity for the BSR cities. Taking into account limited budgets, promotion for the BSR cities on the US market needs to be target-oriented. In this respect, marketing should concentrate on business-to-business- (B2B-) measures (market push) with US Tour operators´ preferences on educational fam trips, cooperative marketing funds and roadshows. As far as sales and promotional material for the US travel trade are concerned, a strong and informative website for the BSR is recommended followed by available sample itineraries. Taking into account the weak image and low awareness of the Baltic Sea Region in the US, a successful promotion of the BSR cities requires a serious, long-term, continuous commitment beyond the lifetime of the ONE BSR project and respective funding. B2B-activities will have to be well adjusted to each other: BSR sponsoring functions at trade events to increase awareness among the trade, all marketing activities directing back to the website, using webinars and road shows to identify most promising partners and rewarding them with cooperative marketing funds and participation in specialized fam trips. Despite all concentration on B2B-activities (first stage), it is still vital to build up awareness for the BSR and its cities among consumers (market pull) at the same time. The strategy should thus also define selected upcoming consumer oriented marketing measures and communicate them to the partners in the US tourism trade (second stage). -7- ONE BSR: US Tourism Demand for the Baltic Sea Region Tour operators most likely to be involved with the BSR are those specialized in selling Europe already, small and mid-sized operators seeing their advantage in cooperation for more individually tailored products “off the beaten track” and tour operators in specialized niches. The web site should thus host a B2B as well as a consumer oriented section, press trips and work with press accompany B2B-activity in regional markets and a BSR inspirational booklet could also be directed to the consumer. -8- ONE BSR: US Tourism Demand for the Baltic Sea Region I. Initial Situation The project “ONE BSR – Baltic Metropolises Accelerating Branding and Identity Building of the Baltic Sea Region” (ONE BSR) functions as umbrella project for branding the Baltic Sea Region (BSR) and is implemented through the EU Baltic Sea Region program and co-financed by the ERDF. Hamburg Tourismus GmbH (Germany) coordinates the tourism component of this project, cooperating with the Project Partner cities Helsinki (Finland), Riga (Latvia), Warsaw (Poland), as well as the associated partner city of St. Petersburg (Russia) referred to as stakeholder cities. The aim is to generate an increase of overnight stays from the US market to the involved BSR cities. In addition to the aforementioned stakeholder cities, these are Copenhagen (Denmark), Stockholm, Malmö (Sweden), Oslo (Norway), Tallinn (Estonia), Vilnius (Lithuania), Gdansk (Poland) and Berlin (Germany).1 Figure 1: Map ONE BSR cities Source: ONE BSR Apart from the present study on the US tourism demand for the Baltic Sea Region, the Project Partner Vidzeme University of Applied Sciences (Latvia) is working on a study regarding the supply. The demand study was launched to prepare the tourism promotion of the BSR cities in the US market. It generally considers all named cities although some parts are focused on the stakeholder cities. Cruise tourism as already established market segment and subject to other EU-funded projects (Cruise Baltic) is explicitly excluded from this market analysis. The success story of cruise tourism in the BSR nevertheless underlines the general potential for further developing the US market as a source for incoming tourism. __________________________________________________________________________ 1 ONE BSR, www.onebsr.eu, Call for tender market study -9- ONE BSR: US Tourism Demand for the Baltic Sea Region Research activities during the development of this study included • comprehensive desk research, especially on suitable US tour operators • research and analysis of available studies and statistical data • an Online Survey to US travel trade • additional in-depth interviews with US tour operators • expert interviews with actors in the US and the BSR. The Online Survey was addressed to more than 500 US tour operators and travel agents2 and additionally posted on suitable social media platforms. In total, around 100 persons participated in the survey at least partly while 66 questionnaires were fully completed. Taking into account that the survey was directed mainly to contacts with a certain affinity to European destinations in general and partly to BSR-cities in particular, it is understood that this is not a representative sample. It should consequently rather be considered as a positive selection of US travel trade. The initial approach was to conduct a workshop with US tour operators to discuss selected issues regarding the BSR and its cities. This working session was supposed to take place in a town or at least country of the BSR partner cities and be combined with an existing trade fair or business event attended by US tour operators. As this was not possible to go along with a suitable event in the given time frame, individual in-depth interviews were chosen as an alternative. Figure 2: Overview on research activities Source: dwif 2013 __________________________________________________________________________ 2 The mailing list also included 51 Canadian companies. Analysis has shown that there were no significant differences between US and Canadian respondents. The results consequently also include the Canadian respondents. - 10 - ONE BSR: US Tourism Demand for the Baltic Sea Region Current tourism marketing of BSR cities in the US market Current tourism promotion of the BSR cities in the US market depends on the local focus and shows to be heterogeneous. None of the BSR cities is pursuing really heavy marketing campaigns directed to the US market on its own nor is the US market a priority market to any of them. If the US market is focused, this is done in cooperative marketing activities with National Tourist Boards, Airlines or supranational cooperation (e.g. Scandinavian Tourism Incorporation). Table 1: Relevance and activities of BSR Cities regarding the market USA3 Relevance of the US as Source Market Activities No TOP market, but mentioned as target market in marketing strategy Cooperative Marketing with National Tourism Boards (DZT, Visit Finland), Airlines (Iceland Air, SAS etc.) and transnational organizations (Scandinavian Tourism Incorporation) Malmö, Riga, St. Petersburg No classification for the market Activities on demand, B2B-oriented Vilnius, Warsaw, Gdansk, Tallinn No reference in marketing strategy No active marketing BSR Cities Berlin, Copenhagen, Hamburg, Helsinki, Oslo, Stockholm Sources: information from city tourist boards, compilation dwif 2013 Berlin cooperates with the German National Tourist Office (DZT) and the German Convention Bureau (GCB). Additionally, the city’s tourist board visitBerlin has its own foreign representations in the US: “KMS Communications” in Los Angeles for public relations and cooperation with “Marketing Challenges international” in New York with regards to conventions.4 Recent marketing activity in the US focuses on MICE. Berlin visits fairs in the US (IMEX and Successful Meetings University International with Air Berlin). Moreover, visitBerlin promotes the direct flight connections between Berlin and the US, among them the new one from/to Los Angeles which was subject to press trips and specific marketing activities with partners from the local hotel industry.5 Cooperation with the national Tourism Office VisitDenmark and the airline SAS is also being practiced by Wonderful Copenhagen, the tourism organization for the Capital Region of Denmark. Promotion advertises for new direct flight connections from San Francisco to Copenhagen. Further cooperation partners include other Scandinavian national or city tourist boards (VisitSweden, VisitStockholm, Innovation Norway, VisitOslo), Icelandair, Travelocity and Orbitz. __________________________________________________________________________ 3 4 5 Italic type: no information available, estimation of dwif www.visitberlin.de visitBerlin: Jahresbericht. Zahlen und Fakten 2012 - 11 - ONE BSR: US Tourism Demand for the Baltic Sea Region Figure 3: Promotion of Copenhagen in the US Source: Wonderful Copenhagen Hamburg categorizes the US as “B-market” where currently only basis activities directed to travel trade, consumers (since 2013) and press are implemented, preferably in cooperation with the USrepresentation of the German National Tourist Office (DZT).6 In 2012, for example, Hamburg Tourism hosted a workshop with the Advisory Board of the DZT and was present at the USTOA conference for the first time. Additionally, the “Hamburg Travel Planner 2013” was published in February 2013 as a 8 page-supplement in the trade magazine “Recommend” with a print run of 50.000. Further 1.000 copies were distributed via the DZT and during the trade fair “cruise3sixty”. __________________________________________________________________________ 6 Hamburg Tourismus: Die Hamburg-Kommunikation, Kooperationsmöglichkeiten und Medien. - 12 - ONE BSR: US Tourism Demand for the Baltic Sea Region Figure 4: Hamburg Travel Planner 2013 Source: Hamburg Tourismus GmbH Helsinki cooperates with airlines and participates in the Scandinavian Tourism Incorporation. Promotional activities include • the participation in workshops (Icelandair, STI) • sales calls • online campaign (Expedia) • media and press trips • cooperation with VisitFinland. Also VisitOslo cooperates with the national tourist board to promote the Norwegian capital in the US. This concerns workshops, route development as well as the membership in the Advisory Board USA. Further activities includes sales trips and visits to shipping companies or the participation in the cruisefair Seatrade in Miami.7 The activities of Stockholm Visitors Board for the promotion of the city in the US are often implemented in cooperation with partners such as national tourist boards (VisitSweden, but also the respective organisations of Norway or Denmark), carriers (SAS, Icelandair) or hotels and attractions (e.g. Scandinavian workshop in Los Angeles with Vasmuseet, Clarion Hotels and Lydmar Hotel). Activities listed by the city’s tourist board include campaigns (Orbitz), trade fairs and workshops (e.g. with the network Viruoso), sales calls or PR and press work.8 __________________________________________________________________________ 7 8 VisitOslo: Markedsplan VisitOslo 2013 Stockholm Visitors Board: Privatresor & Turistservice 2012 - 13 - ONE BSR: US Tourism Demand for the Baltic Sea Region Malmö does some B2B-activities and some press trips on demand in case of very specific requests. Malmö’s tourism organization cooperates with VisitSweden as national tourist office and the airline SAS. Riga’s tourism organization Rīgas Tūrisma Attīstības Birojs puts the focus on primary and secondary markets while the USA belongs to other markets with occasional marketing activities only (e.g. relating to official visits). Warsaw and Vilnius are not doing any active marketing in the US. II. US Tourism Flows to Europe and the Baltic Sea Region 1. US travel to world regions, Europe and the BSR cities Largest share of overseas trips to Europe About 36 % of all US-American citizens hold a valid passport (total of 113,4 million valid passport by the end of 2012), which constitutes a pre-condition for international trips.9 46,9 % of all international travel by US citizens in 2012 was overseas trips. Statistical analysis shows that Europe still received the largest share of the overseas trips by US American tourists in 2012. However, the market has become more competitive during the last 15 years. Air fares to other world regions have become less expensive. The exchange rate between Euro and US-Dollar is not favorable. US tourists are pursuing a larger variety of international destinations than they traditionally had in the past. US tourists traveling abroad are no longer focusing as much on Europe. Especially in recent years, Middle East, Africa and Central America have shown higher growth rates than Europe. __________________________________________________________________________ 9 US Department of State - 14 - ONE BSR: US Tourism Demand for the Baltic Sea Region Table 2: US Travel to international destinations (2012) World Region 2006 11.244.637 12.995.893 8.946.300 25,7 Caribbean 6.435.343 5.780.787 4.020.600 60,1 Asia 4.312.544 5.207.977 3.155.100 36,7 South America 1.702.869 2.317.921 1.455.500 17,0 Central America 2.394.332 2.371.223 1.045.600 129,0 547.271 828.799 591.800 -7,5 1.500.282 478.282 433.800 245,8 364.867 167.490 137.600 165,2 Total Overseas10 28.502.145 30.148.372 19.786.300 44,0 Mexico 20.366.66711 5.747.999 3.992.400 - Canada 11.853.98112 3.861.639 3.047.200 - Europe Oceania Middle East Africa 1996 Development 1996 to 2012 (in %) 2012 Source: US Department of Commerce, International Trade Administration, Office of Travel and Tourism Industries (OTTI) More than half of all international trips undertaken by US citizens in 2012 led to destinations in North America: Mexico (33,5 %) and Canada (19,5 %). Mexico was the first among international destinations for US tourists in 2012 with more than 20 million travelers. Travel to Mexico has fluctuated over the last 10 years. The strongest growth periods were in 2000, 2004, 2005 and 2008. With almost 12 million travelers, Canada continues to be the second most visited international destination for international travel of US citizens. The peak year for US travel to Canada was in 2002 while it has declined in seven of the last nine years since then. Slower decrease for travel to Europe since 2010 According to the Market Profile for Europe published by the Office of Travel and Tourism Industries (OTTI) for 2011, US resident travel to Europe declined between 2004 and 2011 by two million departures equaling a decrease of 17 %. The years 2006 and 2007 marked the peak for US travelers to Europe. Since 2010, the decrease seems to have slowed. 13 __________________________________________________________________________ 10 Overseas and Mexico air traffic (non-stop from US port to foreign port) source: DHS APIS Mexico aggregate total (Including air, land and border 1+ nights), source: Banco de Mexico 12 Canadian aggregate total (including air, land and border 1+ nights), source: STATS Canada 13 Deviations in absolute numbers between table 1 and 2 are due to different statistical concepts, tendencies remain equal. 11 - 15 - ONE BSR: US Tourism Demand for the Baltic Sea Region Table 3: Trends in Departures (US Resident Travel to Europe) in thousands 2004 Departures 2006 2007 2008 2009 11.679 11.975 12.029 12.304 11.238 10.635 13 % Change 2005 3 0 2 -9 -5 2010 2011 Change 2011/2004 9.806 9.674 -2.005 -8 -1 -17 Source: OTTI, Market profile 2011, US Resident Travel to Europe At the same time travel spending for trips to Europe has shown a small growth of 4 % since 2004. Top countries for US spending in 2011 were Mexico ($ 9,3 billion), the United Kingdom ($ 8,7 billion), Canada ($7,7 billion), Germany ($5,6 billion) and Japan ($5,0 billion). Details are displayed in the annex. Top regional source markets are South Atlantic, Middle Atlantic and Pacific The top regional markets traveling to Europe are the South Atlantic, Middle Atlantic and Pacific, with the states of California, New York and Florida sending the most travelers. Dynamic cities with the highest potential are New York City, Washington, D.C., Los Angeles, Philadelphia and Chicago (see annex for details). With regards to accessibility of the BSR from the United States, New York and Chicago region are currently best connected and therefore seem to be the best regional markets to concentrate on (see Figure 9). Figure 5: Residence of US travelers to Europe Source: dwif 2013, OTTI, base map www.createaclickablemap.com - 16 - ONE BSR: US Tourism Demand for the Baltic Sea Region United Kingdom as the top destination in Europe Among European destinations, the United Kingdom is top for US travelers followed by France, Italy and Germany. Eastern Europe’s market share is still small with only one in ten of all trips to Europe going there (see annex for details).14 Berlin as the only BSR city among the top ten When it comes to individual cities in Europe, analysis shows that London generated the most overnights of US tourists in 2011, followed by Paris. The only BSR city among the top 10 was Berlin, which ranked 9th while Copenhagen and Stockholm appeared among the top 20. Nevertheless, the number of overnights of US tourists in these cities is below those of London or Paris. These patterns reflect the close cultural, historical and political relationship especially between the United States and the United Kingdom and also France. Figure 6: Overnights of US tourists in European cities (2011) London Paris Barcelona Madrid Florence Amsterdam Venice Prague Berlin Munich Vienna Frankfurt Budapest Zurich Brussels Copenhagen Lissabon Geneva Stockholm Sevilla 4.098.245 3.600.522 1.261.606 1.157.669 1.026.308 980.400 923.469 717.629 651.423 649.047 580.671 414.380 375.584 358.739 348.207 333.434 307.987 236.288 229.329 195.712 0 1.000.000 2.000.000 3.000.000 4.000.000 5.000.000 Source: European Cities Marketing 2012 as per DZT Marktinformation USA Taking a closer look at the BSR cities, statistical data shows that Berlin, Copenhagen and Stockholm are followed by Hamburg, Warsaw, Helsinki and Oslo each with more than 100.000 overnights stays of US tourists in 2011.15 According to the general trend, the average length of stay of US tourists has __________________________________________________________________________ 14 15 US Department of Commerce, International Trade Administration, Office of Travel and Tourism Industries (OTTI) Data on overnight stays of US-tourists in St. Petersburg not available - 17 - ONE BSR: US Tourism Demand for the Baltic Sea Region decreased in all BSR cities during the last ten years (with the exception of Gdansk) and lies currently between 2,5 (Gdansk) and 1,9 (Warsaw) days.16 Comparing the years 2003 and 2012, there has been an increase of US tourists’ overnights and arrivals in most BSR cities. The exceptions are Helsinki, Oslo and Warsaw. Overnights of US tourists in Helsinki in 2012 are almost equal to those in 2003 while the largest decline for the city has been reported in the year 2009. In Warsaw, the respective figures are even below the status of 2003. Figure 7: Development overnights of US tourists in BSR cities (Index 2003 =100)17 Sources: TourMIS, statistical offices When comparing the share of US tourists’ overnight stays to those of all international tourists in 2003 and 2012, the US tourists’ market share has decreased in almost all BSR cities and lies between 8,7 % in Stockholm and 2,1 % in Riga respectively Latvia. Detailed information is available in individual city profiles in the annex. __________________________________________________________________________ 16 17 As far as data was available, see city profiles for details Index 2003 (for Warsaw 2005)=100; data for Riga refers to entire Latvia, partly not available - 18 - ONE BSR: US Tourism Demand for the Baltic Sea Region Figure 8: Foreign and share of US overnights in BSR cities 201218 Source: TourMIS, statistical offices The popularity of the cities and their tourist sites is equally displayed in the classification of their highlight attractions according to their reviews on TripAdvisor:19 • With Berlin, Stockholm and St. Petersburg, only three BSR cities have outstanding attractions for US tourists (“fortissimo” and “forte”). • Further attractions classified as “mezzo forte” are additionally located in Oslo, Warsaw and Tallinn. Best direct accessibility of the BSR via Berlin and Copenhagen and future opportunities Direct flights are important in order to attract visitors from the United States and are a key factor especially in times of increasing competition. In this respect, the analysis shows a heterogeneous starting position of the considered BSR cities. Best accessibility is available for Berlin and Copenhagen, each with four direct connections to US airports, as well as a direct flight to Canada (Toronto). These two cities are followed by Helsinki, Warsaw and Stockholm, which offer two US airport connections (plus Toronto for Helsinki and Warsaw), while Hamburg, Oslo and Riga are directly accessible from New York only. This is also the only airport that can be reached directly from each of the aforementioned cities. Chicago is accessible from any BSR city with at least two direct flight connections. Gdansk, St. Petersburg20, Tallinn, Vilnius and Malmö currently do not have any direct flight connections to or from the United States. Cruise development illustrates the general potential of the BSR as a destination for international travel. If easy access and high quality offers are guaranteed, growth rates are above average. The opening of the new Berlin Airport will therefore presumably push the number of international and __________________________________________________________________________ 18 No data available for St. Petersburg, data for Riga refer to whole Latvia Source: Supply analysis conducted by Vidzemes Augstskola 20 Direct flights from/to New York and Boston are planned 19 - 19 - ONE BSR: US Tourism Demand for the Baltic Sea Region US tourists considerably. St. Petersburg will open a new airport terminal, which might imply also new direct flight connections to and from the USA in the future (presumably New York and Boston). But also the development of new high speed or direct train connection between BSR cities and other European metropolises opens up opportunities for further product development (e.g. train Paris – Berlin – Warsaw – Minsk – Moscow since June 2013). Figure 9: Overnights, cruise passengers and direct flights to BSR cities21 Source: statistical offices, airports, research dwif 2013 (as at July/August 2013) Summary Although Europe is still the top destination for US international travel, it faces a more and more competitive situation (exchange rates, multilateral travel, higher growth rates in Middle East, Africa and Central America). Between 2004 and 2011 US resident travel to Europe has declined by two million departures (- 17 %). Within Europe it is the Western parts and especially the UK receiving the majority of US tourists. Only one in ten US tourists visits East European destinations. Regarding the Baltic Sea Region Berlin is the only BSR city among the top ten cities´ destinations in Europe, with Stockholm and St. Petersburg being the only three BSR cities have outstanding attractions for US tourists (according to a quantitative review on trip advisor). __________________________________________________________________________ 21 Limited comparability: Data St. Petersburg refers to arrivals only (data 2006-2012), Overnights Stockholm only refer to hotels, data Warsaw 2005-2012, data Tallinn 2008-2012, data Riga refers to entire Latvia; data cruise passengers Berlin refers to Rostock, data cruise passengers Hamburg 2003-2011, data cruise passengers Malmö 2005-2011; flight connections St. Petersburg are currently not established, but planned for the future - 20 - ONE BSR: US Tourism Demand for the Baltic Sea Region Despite an increasing number of US tourists among the 13 BSR cities between 2003 and 2012, the share among incoming tourism in total today is lower, showing other international source markets as more dynamic. At the same time the length of stay among US tourists in BSR cities has decreased. Accessibility as a key factor so far favors Berlin and Copenhagen with the most direct flight connections to the US. The opening of new or improvement of existing hubs (e.g. Berlin International Airport, new terminal in St. Petersburg) sure has the potential to boost US tourism in the BSR and its cities. Same is true for high speed and direct train connections between European and BSR cities. 2. Characteristics and travel patterns of US tourists to Europe 2.1 General characteristics and type of travel Educated, wealthy and experienced The average US tourist to Europe22 is almost 50 years old, with male travelers skewing slightly older (49 years) and female travelers slightly younger (47 years). Statistics reveal that there are slightly more women (55 %) going on journeys to Europe. With regards to education and income, the levels are higher-than-average with a mean average household income of $ 116.200. Most travelers to Europe (92 %) have previously been on an international trip from the United States. Table 4: Main Purpose of Trip (US Resident Travel to Europe) 2010 (%) 2011 (%) Point Change Leisure/Recreation/Holidays 44 43 -1.3 Visit Friends/Relatives 28 28 -0.4 Business/Professional 18 21 2.5 Study/Teaching 5 5 -0.1 Main Purpose of Trip (top 4 of 8) Source: OTTI, Market profile 2011, US Resident Travel to Europe Leisure is the dominant travel purpose of US resident travel to Europe followed by Visits to Friends and Relatives. The average travel party size of US travelers to Europe is 1,5. Detailed information regarding leisure or VFR overseas trips in general shows: • 38 % travel alone • 34 % travel with their spouse • 28 % travel with family/relatives • 11 % travel with friends. __________________________________________________________________________ 22 Main Sources: OTTI: Market profile 2011, US Resident Travel to Europe and Profile of US Resident Travelers Visiting Overseas Destinations: 2011 Outbound - 21 - ONE BSR: US Tourism Demand for the Baltic Sea Region 2.2 Information and booking including online research and platforms The internet plays an increasingly important role in the US tourism market. Both customer and travel companies will highly depend and relate to online information during research for travel and destination. 78,1 % of the population in the USA was using the internet in 2012 (i.e. 245.203.319 persons).23 At the same time, analysis shows that the situation for senior citizens (65+) is still different. They hold a huge growth potential with regards to access (currently about half of them use the internet) and time spent at it. Relatively few of them have smartphones or are active in social networks. With regards to media usage, TV still constitutes “the medium that matters most for seniors”.24 Internet and personal contact as most important travel planning sources First brainstorming on potential destinations starts on the internet: 65 % of leisure travelers “begin researching online before they’ve decided where or how to travel.”25 Also with regards to the more concrete travel planning, the internet constitutes the most important source of information: According to the study “The Traveler’s Road to Decision 2011”, 85 % of US personal travelers (as opposed to business travelers) use the internet as travel planning source while 60 % ask family, friends or colleagues. Further sources include • Information brochures (32 %) • Magazines (24 %) • TV (22 %) • Travel Agents (18 %) • Books (18 %) • Newspapers (12 %) • 800 or toll-free number (11 %) • Travel groups (10 % ) • Radio (7 %).26 Being present in an attractive way on Google Maps is vital for tourist destinations. Recent analysis identifies the top travel websites in the US and clearly shows that Google Maps has been the most popular travel website for months. The results underline that this website held more than twice the visit shares of the second (MapQuest). Further major sites are TripAdvisor, Expedia and Priceline.com. Although Hitwise US compiled these sites in this analysis, it is understood that Google Maps and MapQuest are primarily domestic maps while the others are online travel sellers or planners. __________________________________________________________________________ 23 24 25 26 Internet World Stats, December 2012/ETC eMarketer, March 2013 HOTELMARKETING.COM, June 2013 as per European Travel Commission: New Media Trend Watch ThinkInsights/Google: The Traveler’s Road to Decision 2011/European Travel Commission: New Media Trend Watch - 22 - ONE BSR: US Tourism Demand for the Baltic Sea Region Table 5: Top travel websites in the US (July 2013) Website Total Visits Visits Share Rank 6/13 Rank 5/13 Rank 4/13 Google Maps 241.881.559 14,74 % 1 1 1 MapQuest 117.484.722 7,16 % 2 2 2 TripAdvisor 54.755.461 3,34 % 3 3 4 Expedia 50.246.407 3,06 % 4 4 3 Priceline.com 39.278.086 2,39 % 6 6 6 Source: Hitwise US Facebook clearly dominates social media As highlighted by a survey conducted by TripAdvisor, social media and travel are closely connected: 76 % of the respondents share travel experiences (especially photos) through social networks, 42 % use social media for travel planning and 40 % use these channels for inspiration.27 Facebook clearly dominates the usage of social networks with 83 % of the time spent on this site and is followed by Tumblr (5,7 %), Pinterest (1,9 %) and Twitter (1,7 %).28 Search mobile, but booking rather via desktop Searches on mobile phones and tablets are increasingly popular with a total of 113,1 million searches on mobile phones and 38,7 million on tablets in December 2012 alone. However, these searches mostly refer to local business searched while “on the go” with a need for immediate information.29 The booking followed a research on the tablet (smartphone) is made • online via a desktop by 54 % (62 %) • via mobile website on tablet (smartphone) by 26 % (19 %) • via mobile app on tablet (smartphone) by 16 % (15 %).30 With regards to online travel agents, a recent ranking shows that Expedia is the top site with nearly one-third share of all category page views, followed by Priceline.com (17,3 %) and Orbitz Worldwide (12,9 %). All other named sites have a share of less than 10 %. __________________________________________________________________________ 27 28 29 30 HOTELMARKETING.COM, September 2012 as per European Travel Commission: New Media Trend Watch comScore, February 2013 eMarketer Tnooz/European Travel Commission: New Media Trend Watch - 23 - ONE BSR: US Tourism Demand for the Baltic Sea Region Table 6: Top Online Travel Agent sites by share of page views 2012 Rank Property Share of page views31 Percentage points compared to 2011 1 Expedia Inc. 31,6 % -6,0 % 2 Priceline.com Inc. 17,3 % +1,6 % 3 Orbitz Worldwide 12,9 % -0,1 % 4 Fareportal Media Group 9,2 % +0,7 % 5 Travelocity 7,6 % -2,4 % 6 Kayak.com Network 6,9 % +2,2 % 7 BookingBuddy Sites 2,3 % +2,3 % 8 CheapCaribbean.com 1,4 % +0,5 % 9 BookIt.com 1,1 % +0,1 % 10 AppleVacations.com 0,6 % -0,1 % Source: comScore, Inc.: Press Release, February 2013 The decision for the trip to Europe is made 90 days in advance (median days).32 2.3 Travel patterns, expectations and activities of US tourists33 The average length of stay for trips to Europe is 19,3 nights (mean nights) respectively 12 nights (median nights). More than two-thirds of travelers visit only one country while the average number of destinations visited is 2,2. Nearly all US tourists to Europe arrive by plane. Within the destination, air connections are equally important to combine different cities and countries (multi-destination tours). Still, nearly one-third uses railroad connections between cities. In this respect, high-speed trains, such as the ones between Hamburg and Berlin or Helsinki and St. Petersburg, are frequently used. Additional types of transport used within Europe are taxis or limousines, city subway, tram or bus as well as cars (company, private or rented). With regards to the Baltic Sea Region, boat connections are also relevant: Tourists use ferries to travel between BSR cities such as Stockholm and Helsinki or Helsinki and Tallinn, which is also demonstrated in the sample products (see IV.2). __________________________________________________________________________ 31 32 33 Total US – home and work computers OTTI Main Sources: OTTI, Market profile 2011, US Resident Travel to Europe, Expert Interviews dwif - 24 - ONE BSR: US Tourism Demand for the Baltic Sea Region Table 7: Types of transportation within Europe (US Resident Travel to Europe) Transportation Types used within Europe 2010 (%) 2011 (%) Point Change Airline between Cities 39 37 -1,5 Taxi/Cab/Limousine 38 37 -1,1 Railroad between Cities 29 30 0,3 City Subway/Tram/Bus 29 29 -0,6 Company or Private Auto 23 24 0,8 Rented car 18 19 0,9 (multiple response--top 5 of 8) Source: OTTI, Market profile 2011, US Resident Travel to Europe Higher standard for accommodation preferred Staying in a hotel or motel is the most common type of accommodation for US tourists traveling to Europe (with 68 % staying for at least one night). The average number of nights spent in this type of lodging is 8,5. Generally, a higher and American level of standard is preferred in terms of comfort and cleanliness. For example, in 2011, 43 % of the US tourists in Germany chose first-class hotels (4 or 5 stars) whereas middle class (10 %) and budget (7 %) hotels are booked less frequently.34 But there are also target groups for three star offers as younger couples or families might dispose of considerable lower income. Air condition, internet access and the acceptance of credit cards are considered as important features for US guests. Moreover, English should be spoken (at least by guides). Offers for senior travelers need to consider slower pace and mobility issues. Safety is a further important aspect for US tourists. Experience shows that even minor incidents such as strikes or demonstrations have had a negative impact on travel patterns. Dining, shopping and historical places as typical activities The analysis of typical activities of US tourists in Europe shows that dining in restaurants, shopping and visits to historical places constitute the top three, followed by visits to small towns, citysightseeing and cultural heritage sites (see Table 8). This overview underlines that on the one hand the general offer in terms of (cultural) places of interest is very important to US tourists. Still it __________________________________________________________________________ 34 Further types of accommodation: private and other; source: World Travel Monitor 2011 as per DZTMarktinformationen - 25 - ONE BSR: US Tourism Demand for the Baltic Sea Region demonstrates on the other hand that an attractive complementary offer with regards to shopping opportunities and gastronomy is equally significant. Table 8: Typical activities (US Resident Travel to Europe) Activities within Europe (multiple response- 2010 (%) 2011 (%) Point Change Dining in Restaurants 85 86 1,3 Shopping 74 73 -0.8 Visit Historical Places 68 71 2.7 Visit Small Towns 52 55 2.9 Sightseeing in Cities 52 53 0.8 Cultural Heritage Sites 43 44 1.5 Touring Countryside 42 43 1.0 Art Gallery/Museum 40 40 0.3 Guided Tours 24 23 -0,8 Nightclubs/Dancing 17 16 -0,3 Concert/Play/Musical 17 16 -0,3 -top 10 of 25) Source: OTTI, Market profile 2011, US Resident Travel to Europe Summary The average US tourist is a best to silver ager being around 50 years, well educated, wealthy, more likely female and an experienced traveler (repeat to Europe). Two thirds travel either with their spouse or family. The internet plays an increasingly important role in US tourism market not only for planning the trip but already as source for travel ideas and possible destinations. Google maps and MapQuest are the top consumer web pages, followed by TripAdvisor, Expedia and Priceline.com. Facebook clearly dominates social media also in matters of travelling. The average length of stay to Europe is 19,3 nights and includes 2,2 destinations. Access from US is by air, but multimodal travel within Europe is frequent (taxis, trains, busses, ferries), with a preference for high speed trains. Higher standard for accommodation is preferred (four stars+), but there are also target groups for three star offers. Culture and history are main driving motives for travelling to Europe, but have to be accompanied by attractive complementary offers with regards to shopping opportunities and gastronomy. - 26 - ONE BSR: US Tourism Demand for the Baltic Sea Region III. Perception of the BSR and its cities in the USA Europe in general is perceived as a safe destination with somewhat expensive, but high quality products and services. When it comes to travel topics, Europe’s image is dominated by the aspects of history and culture. No clear image of the entire Baltic Sea Region With regards to the Baltic Sea Region, experts confirm that it is rather unknown, virtually does not have any clear image in the United States and, if at all, is partly known for cruises. Nevertheless, the interviewed tour operators give generally positive responses with one-third mentioning culture/history and one-quarter cruise. Apart from this, the region as a whole otherwise does not evoke any clear or uniform associations. However, some individual cities or areas such as Scandinavia have developed their own image. This lack of a common image can also be traced back to heterogeneous perceptions of the different BSR countries or areas themselves: Scandinavia, for example, is appreciated as a safe destination, but also known for its expensiveness while traveling in other BSR regions such as Poland or Latvia is known to be relatively cheap. The same general sentiment applies for the BSR cities. As the online survey among US tour operators has shown, some BSR cities are rated as very attractive while others are rather unknown (see also Figure 10). The heterogeneous image is equally displayed in the associations referring to the individual cities. Figure 10: Attractiveness of the BSR cities St. Petersburg 69,6 Berlin 62,8 55,8 37,7 Copenhagen 54,5 39,0 38,2 Helsinki Tallinn Hamburg Warsaw Riga Vilnius 10,5 Gdansk 9,6 Malmö 0% 20,0 1,3 35,5 20% Very attractive 30% Attractive 40% 50% Less attractive 26,3 5,5 23,3 4,1 35,6 60% 11,5 19,2 2,6 26,0 27,4 13,3 25,0 31,6 35,6 10% 2,7 23,7 28,9 4,1 15,8 17,1 52,6 14,5 8,0 12,0 1,3 44,0 16,7 9,2 6,6 40,8 20,0 5,2 2,6 3,9 49,3 25,0 7,7 1,3 46,1 30,7 5,1 1,3 26,9 Stockholm Oslo 1,3 1,3 24,1 70% Not attractive at all 28,8 80% 90% 100% Do not know the city Source: Online Survey dwif 2013 - 27 - ONE BSR: US Tourism Demand for the Baltic Sea Region St. Petersburg, Berlin, Stockholm and Copenhagen as the most attractive BSR cities Nearly 70 % of the respondents rate St. Petersburg as very attractive with further 24 % perceiving it as attractive. St. Petersburg consequently is ranked first among the other BSR cities. The attractiveness of the city is reflected in the associations of the participating US tourism professionals: It is mainly characterized with very positive adjectives expressing the specific appeal of this city such as beautiful, fascinating or amazing. Apart from this, St. Petersburg is primarily associated with its history and culture; with art and architecture also playing an important role. Other frequent mentions include references to the Hermitage or museums in general and to royal history (palaces, Tsars). Further fewer associations refer to rivers and canals, St. Petersburg’s geographic location at the Western border of Russia (“gateway to Russia”, “window on the west”) and the White Nights. Those respondents who rated St. Petersburg as “very attractive” highlight first of all its history, but also its cultural offerings with regards to art and architecture as most important determinants for their assessment. The attractiveness and the associations as results of the online survey are confirmed by the findings of interviews: History and culture determine St. Petersburg’s image, and US tour operators indicate a lot of demand for this city as well as its potential due to cruising. There still is the question of visa for trips to Russia. A possible alternative is traveling on ferry from Helsinki to St. Petersburg that allows a visa-free journey for up to three days.35 Berlin is ranked second: About 63 % of the participating tour operators confirm that the German capital is a very attractive destination while further 27 % rate the city as attractive. A well-known and popular city, Berlin possesses a very positive image and is considered as the “new hotspot in Europe”, a “hip” and “trendy” place. Moreover, it offers a huge variety and a good priceperformance ratio. The respondents to the Online Survey rate the city as “very attractive”, often referring to its rich history and partly to its connection to the USA (Berlin Wall, Cold War). Apart from this, Berlin’s cultural offerings in general and museums in particular are highlighted, as well as the city’s popularity and its cosmopolitan, trendy and dynamic atmosphere. Referring to the results of the online survey, Stockholm and Copenhagen are almost equally attractive: More than 55 % see Stockholm as very attractive and almost 38 % see it as attractive. The city is known as the Swedish capital, associations refer to the royals, the Nobel Prize and the archipelago. The data is similar for the Danish capital (54,5 % very attractive, and 39 % attractive). Associations referring to Copenhagen include architecture and design, the cruise port and friendliness. Determinants for the attractiveness36 of Stockholm and Copenhagen are equally quite similar: Among the factors named are their high profiles (“name recognition”, “well-known”) as well as their general beauty, cleanliness, safety and friendliness. Besides, historic and cultural sites or the cities’ functions as a gateway for cruises or tours lead to very positive ratings. __________________________________________________________________________ 35 36 E.g. http://www.stpeterline.com/en/Goodtoknow/Visafreerule.aspx Named by the respondents rating Stockholm as „very attractive“ - 28 - ONE BSR: US Tourism Demand for the Baltic Sea Region Due to their high attractiveness and positive associations, these four cities can be considered as highlight cities in the region and consequently as flagships for the tourism promotion. Heterogeneous results for Oslo, Helsinki, Tallinn, Hamburg and Warsaw Although generally known as a Scandinavian capital, Oslo is weaker than Copenhagen and Stockholm when it comes to awareness and image. About 38 % of the respondents rate Oslo as a very attractive destination, but even more of them (46,1 %) as attractive. The image of Norway is closely connected to nature, and this applies even for the capital, which is associated with the famous fjords respectively seen as a gateway to visit these natural attractions. The determining factors that make Oslo very attractive are similar to those named for Stockholm and Copenhagen: Safety, cleanliness and Oslo’s function as a starting point to the region including pre- and post-cruise extensions. These factors stand alongside sights related to history, culture, art and architecture. What distinguishes Oslo here is the clear relation to natural sites (gateway to the fjords). Helsinki, rated as very attractive by more than 30 % and as attractive by nearly half of the respondents, generally possesses a positive image and a good awareness. Positive adjectives like attractive or beautiful are named quite often followed by mentions referring to an image of a green, clean and friendly city. Further associations refer to its geographic location. While one tour operator describes it as “a bit out of the way”, several others highlight Helsinki’s function as gateway city. This aspect has equally been named several times by the participants of the online survey. The Finnish capital is consequently an interesting starting point to visit other places in the area, which especially applies to St. Petersburg, but also to Tallinn and further places in Finland and Scandinavia in general. Further mentions include design and architecture, culture in general, history, but also nature and activities as well as cruises, ferries and the port. Moreover, Helsinki’s image is connected to Scandinavia and the Nordic region. Those respondents who rate the city as “very attractive” quote its reputation in terms of beauty, general awareness, cleanliness and safety. Further mentions are Helsinki’s modern character, architecture and design and others (e. g. shopping, culinary). Moreover, trips to and combinations with St. Petersburg, Tallinn and natural attractions are equally considered to be attractive features. But as mentioned in one of the interviews, the Finnish capital possibly is even perceived as nicer than it is in reality. Despite all the positive descriptions, some respondents thus also alluded to negative aspects (cold, grey, expensive) or ignorance of the city. A number of participants in the online survey, 12 %, consequently rate the city as less attractive. The flight connection from the US to Helsinki integrating Iceland (Icelandair) was mentioned by some tour operators as very attractive and popular as Iceland offers exotic experiences (e.g. hot springs).37 __________________________________________________________________________ 37 Carriers are very attractive partners for co-op marketing. Icelandair for example does a lot of marketing for its connections between North America and Europe, Ryanair is generally interested of promoting its central role as major regional carrier bringing US-Americans from London/UK to the rest of the European continent and this also already in the US. They might be interesting sponsors for press or fam trips and also interested to be present at trade events in the US. - 29 - ONE BSR: US Tourism Demand for the Baltic Sea Region Tallinn turns out to be the most popular among the Baltic States’ capitals (25 % rate it as very attractive, about 41 % as attractive). Those who expect the city to be “very attractive” mainly refer to its picturesque appearance (“lovely city”, “old town charm”, “people seem to love it”) and its location, which allows for combinations with Helsinki, St. Petersburg and cruises. Moreover, the aspect “music” is named twice. However, around 17 % of the respondents assess the city as less attractive and nearly 16 % indicate not to know the city at all. This is also reflected by the interviewed experts who describe Tallinn as rather unknown and partly being associated with the “old Russia” or the image of a “communist city”. The results of the online survey equally reveal a heterogeneous picture of Hamburg: While onefifth perceives the city as very attractive (44 % as attractive), still a further fifth expects it to be less attractive and more than 13 % do not know Hamburg. Tour operators indicate that there is not much demand for trips to this city. These findings are also reflected by the respective associations: The majority refers to the port, and as it was pointed out during several interviews, this mainly means negative features (industry, dirt). “Industrial” is consequently another negative association. Further aspects of Hamburg’s image include its history, the Hanseatic league, emigration and the gateway-function as well as culture in general and architecture. Moreover, some mentions refer to the commercial and business character of the city, characterize it as large, modern and affluent while others name water (lakes, rivers, waterfront) or the “Reeperbahn”. Nevertheless, the results also show that the respondents and interview partners are partly unfamiliar with Hamburg and do not have any clear idea of the city and its tourism offerings. Even if the name of Hamburg might be known (e.g. to cruise passengers), it is not connected to any distinct positive image. One big tour operator stated that as long as the market does not ask for trips to Hamburg, they would not try to sell it. The respondents who rate Hamburg as “very attractive” name culture and history in general as well as the broad offerings, which are a surprise to the visitors. When it comes to the assessment of the Polish capital, only about 17 % of the respondents see Warsaw as very attractive and still more than half of them see it as attractive. Those who rate it best call it an interesting place and refer to history in general, Jewish heritage, music and culinary. Nevertheless, nearly a fifth expects it to be less attractive. Main associations refer to its history with the subthemes Jewish history, the Warsaw Ghetto and World War II. Further mentions include culture in general and music respectively musicians (Chopin). Several respondents know Warsaw as Polish capital, while others associate it with Eastern Europe. Moreover, some participants refer to family roots/heritage and culinary. With regards to architecture, both traditional (castle, old town) and modern aspects of the city are named. Single respondents characterize the city as cold, grey or ugly. Some experts also mention that Warsaw is rather unknown and does not have any strong image in the United States. - 30 - ONE BSR: US Tourism Demand for the Baltic Sea Region Riga, Vilnius, Gdansk and Malmö as rather unknown in the USA A quarter of the respondents to the online survey indicates that they do not know Riga and a further quarter expects it to be less or not attractive. Nevertheless, more than a third rates the city to be attractive and nearly 15 % even as very attractive mentioning architecture, history, charm, but also the fact of being unfamiliar. Experts and tour operators confirm that the Latvian capital is widely unknown. This is also frequently named in the online survey to characterize the city. Those who have an idea of Riga often describe it with positive adjectives such as “pretty” or “charming” and highlight the architecture, art nouveau, its old town and medieval aspects as well as history and culture in general. Still, similarly to the idea of Tallinn, some negative associations refer to the image of a grey “communist city”. With regards to Vilnius, more than a quarter of the respondents does not know the city and about one third rates it as less or not attractive. Experts confirm that the city is unknown in the US and that it might be associated with the “old Russia”. Nevertheless, nearly 40 % indicate a more positive image (10,5 % as very attractive, 28,9 % as attractive). Gdansk is equally unknown by nearly a quarter of the participating tour operators while almost one third rates the city as less or not attractive. Nevertheless, about 45 % confirm a generally positive image (9,6 % as very attractive, 35,6 % as attractive). The analysis does not reveal any distinct associations with Gdansk. Malmö, finally, is the BSR city with the lowest awareness and attractiveness from the view of the polled US tour operators: Only around 4 % believe it to be very attractive (27,4 % attractive) while nearly 40 % expect it to be less or not attractive. Almost 30 % do not know the city at all. Experts confirm that the city is hardly known in the US. Summary To sum it up, the analysis shows that the Baltic Sea Region does not have a clear and uniform image while the respective cities are equally very heterogeneous in terms of awareness and attractiveness from the US perspective. The range goes from very attractive cities with distinct and positive associations to rather unknown places with a diffuse or even partly negative image. Those few respondents who rate certain cities as “not attractive at all” mostly based their assessment on the fact that the respective place is not known (also no requests from their clients). History and culture in general are the predominant associations not only with Europe, but also with the BSR cities in particular. However, the answers to the online survey show different specifications. These findings constitute an important basis for future product development. In this respect, Figure 23 indicates potential travel topics and their relevance for the entire region resp. the concerned cities. - 31 - ONE BSR: US Tourism Demand for the Baltic Sea Region IV. Tour Operators for the BSR Cities Tour Operators and Travel Agencies are important business partners to promote the BSR region and its cities in the US market. The study has thus researched and analyzed suitable companies that either already offer trips to (parts of) the Baltic Sea Region or are likely to include it in their future products. In order to learn more on their attitude towards the BSR and its cities, all these companies were invited to the Online Survey conducted during the research. Additionally, in-depth interviews were conducted with selected further contacts 1. Current relation towards the BSR cities Pull market situation requires BSR cities’ full initiative The current status of tour operators in the survey concerning sales of BSR cities proves that the sample extracted is highly relevant for the project and participating destinations: 77 % of the participants in the Online Survey confirm that they are currently selling cities in the Baltic Sea Region, among them 22 % indicating that their offerings are growing. Further 15 % show a future potential as they are either planning to sell these cities in the near future (6 %) or may consider doing so (9 %). Only 6 % of the respondents indicate that they do not sell BSR cities anymore. The respective companies explain this decision with the general variety and change of destinations and programs or the creation of packages on demand only. Figure 11: Current Sale of BSR cities I don't know 2,3% No, but may consider them in the future. 9,2% No, but we do plan to sell BSR cities in the near future. 5,7% We have sold BSR cities in the past, but no longer sell them. 5,7% Yes, we are selling BSR cities. 55,2% Yes, we are selling BSR cities and our offerings are growing. 21,8% Source: Online Survey dwif 2013 Nevertheless in-depth interviews showed clearly that US travel trade is mostly passive and indifferent towards marketing initiative for BSR cities. The BSR cities are confronted with a classical pull market where tour operators and travel agents only react to the tourists’ demand. Since the economic crisis in the past years, very few tour operators actively push destinations on their own. This situation can only be changed by strategic and sincere marketing action from the destinations themselves. Long-term engagement will be essential for success. - 32 - ONE BSR: US Tourism Demand for the Baltic Sea Region A comprehensive databank containing the data of suitable tour operators and travel agents has been set up and is an annex to this report. In total, it includes more than 500 companies with information on contact persons, products including BSR cities, as well as a categorization concerning their potential for working with respectively their current relation to the ONE BSR project. A short extraction is displayed in Table 9. Detailed profiles of the most promising companies are included in the annex. Table 9: Promising Tour Operators for BSR cities (extraction from databank)38 Tourism products for BSR stakeholder cities Tour Operator / Agent Abercrombie & Kent Category Hamburg B Helsinki Riga St. Petersburg Warsaw x x x x x x ACIS A x Avanti Destinations A x x Borton Overseas B Brendan Vacations B Brownell Travel (Marion Harbison) Casto Vacations Collette Vacations A Continental Journeys B x Cultural Tour Consultants B x East West Tours B EF Educational Tours B Europe Too (by Isram World) B Exeter International B Five Stars of Scandinavia B Frontiers International Travel B Gindroz & Co. A Grand European Tour A Herzerl Tours A Maupintour B x Odyssey Travel A x Passage Custom Tours A x Premier World Discovery B x x Rail Europe A x x Tauck A Travel Bound x x x x x x x x x A x x x x x B x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x B x x x x x Travcoa B x x x x x TravelStore B x x x x TT & A Travel B x x x x Uniworld (river cruises) A VIP Alpine Tours B x x x x x x x x Source: dwif 2013 __________________________________________________________________________ 38 Categories: A=completed Online Survey and personal interview; B=completed Online Survey - 33 - ONE BSR: US Tourism Demand for the Baltic Sea Region Berlin, Copenhagen, St. Petersburg and Stockholm39 as most popular BSR cities With regards to the individual BSR cities, most respondents sell St. Petersburg, Copenhagen, Stockholm and Berlin (each more than 75 % of those selling BSR cities). Oslo, Warsaw, Helsinki, Tallinn and Hamburg are still being sold by more than half of the polled companies (see also Figure 12). The three best-selling among the BSR cities are Berlin, St. Petersburg and Copenhagen (followed by Stockholm). Figure 12: Current sale of individual BSR cities St. Petersburg Copenhagen Stockholm Berlin Oslo Warsaw Helsinki Tallinn Hamburg Riga Vilnius Gdansk Malmö 82,6% 81,2% 78,3% 75,4% 72,5% 68,1% 66,7% 63,8% 52,2% 47,8% 40,6% 40,6% 29,0% 0% Source: 20% 40% 60% 80% 100% Online Survey dwif 2013 These results of the online survey are being confirmed through the analysis of sample products: St. Petersburg stands out as a must-see in the Baltic Sea Region. The Scandinavian metropolises Stockholm, Oslo and Helsinki similarly prove to be among the top cities which is due to pre- and post-cruise offers (especially Copenhagen), good direct air connections as well as the possibility of travel to St. Petersburg from Helsinki (partly visa-free). Berlin is top among trips to Germany. Warsaw is equally en vogue as destination and might also profit from nearby Cracow. Hamburg, Gdansk and Malmö are scarcely present in the analyzed products. Experienced sellers, but rather low volume The results of the survey also show that nearly 60 % of the respondents have been selling BSR cities for more than ten years and further around 17 % for more than five years already. Almost 23 % have been doing so for one to five years. The volume generated by these tour operators and travel agents, however, is rather low: Almost 40 % do not sell more than five trips and further around 13 % not more than 15 trips per year which include at least three BSR cities across three countries. Nevertheless, a significant portion of respondents, nearly one-third, indicates very strong sales of the region with a yearly distribution of more than 50 trips. __________________________________________________________________________ 39 in alphabetical order - 34 - ONE BSR: US Tourism Demand for the Baltic Sea Region 2. Current BSR leisure tourism products Information provided by the participants in the online survey and the analysis of sample products to US tourist provides an overview on current leisure packages including one or several BSR cities: BSR cities as part of longer Europe itineraries The trips are usually offered for the period from April to October, partly often with a reference to seasonal events also for other months. Most trips last longer than seven nights in total. The situation is different for the BSR portion: More than 88 % of the respondents indicate that the typical share is one to seven nights. The most frequent BSR portion is one to three nights, thus only a (minor) part of a typical tour (see Figure 13 for details). Over one third of the respondents normally combines three BSR cities within one itinerary (27,9 % two cities, 14,7 % four cities). Figure 13: Duration of typical trips including BSR cities 33,3% more than 10 nights 3,4% 42,6% 7-10 nights 8,5% 14,8% 3-7 nights 35,6% 9,3% up to 3 nights 52,5% 0% 10% 20% whole trip Source: 30% 40% 50% 60% BSR-portion Online Survey dwif 2013 Sample tours to BSR cities often include Scandinavian cities and St. Petersburg The analysis of sample products offered to US tourists confirms that typical itineraries often include Scandinavian cities and St. Petersburg. Apart from these border-transgressing combinations, tour operators also provide tours to one country respectively one region such as “Highlights of Germany”, “Discovering Poland” or quite frequently Scandinavia (e.g. “Best of Scandinavia”, “Capitals of Scandinavia”). Intraregional transport is mainly organized with comfortable coaches while ferries and partly trains are used for certain distances (e.g. Stockholm-Helsinki respectively St. PetersburgMoscow). The sample products analyzed in detail have an average duration of 13 days with a minimum of seven and a maximum of 29 days. In order to give an insight into current products including BSR cities, the report displays selected examples. - 35 - ONE BSR: US Tourism Demand for the Baltic Sea Region Figure 14: Sample Tour “Scandinavia & Russia Plus” Source: http://www.contiki.com/destinations/europe/tours/194-scandinavia-russia The sample tour “Scandinavia & Russia Plus” offered by Contiki Holidays goes from Berlin or Copenhagen via Norway, Sweden, Finland, Russia, Belarus and Poland (back) to Berlin and includes seven BSR cities. It is set up as follows (see also Figure 14):40 • 21 nights (7 nights hostel, 13 nights hotels, 1 night cruise) − Day 1: Berlin/Copenhagen (start in Berlin optional only, also start in Copenhagen possible) − Day 2: Copenhagen (“full of history”, “stylish capital”) − Day 3: Copenhagen/Oslo − Day 4: Oslo (“Scandinavia’s oldest capital”) − Day 5: Oslo/Voss (“Norway’s adventure capital”) − Day 6: Voss/Geiranger Fjord − Day 7: Geiranger Fjord/Gjovik (overnight stop at “Norway’s largest lake”) − Day 8: Gjovik/Stockholm (“Sweden’s cosmopolitan capital”) − Day 9: Stockholm − Day 10: Stockholm/sail to Helsinki − Day 11: Helsinki (“a blend of Finish and Russian influences”) − Day 12: Helsinki/St. Petersburg (“imperial city”) − Day 13/14: St. Petersburg __________________________________________________________________________ 40 http://www.contiki.com/destinations/europe/tours/194-scandinavia-russia - 36 - ONE BSR: US Tourism Demand for the Baltic Sea Region − Day 15: St. Petersburg/Novgorod − Day 16: Novgorod/Moscow − Day 17/18: Moscow − Day 19: Moscow/Minsk − Day 20: Minsk/Warsaw − Day 21: Warsaw (“budding”, “troubled history”) − Day 22: Depart Warsaw/Berlin • 32 meals (21 breakfasts, 1 lunch, 10 dinners) • Transport with modern coaches, overnight cruise, ferry crossings • Sightseeing tours in all major cities Figure 15: Sample tour “Jewels of the Baltics & Scandinavia” Source: http://www.cosmos.com/Product.aspx?trip=36930&content=overview The sample tour “Jewels of the Baltics & Scandinavia” offered by Cosmos mainly leads from Copenhagen via Berlin, Warsaw, Baltic capitals, St. Petersburg, and Helsinki to Stockholm and is set up as follows (see also Figure 15):41 • 16 days from Copenhagen to Stockholm (standard and first-class hotels) − Day 1: Copenhagen − Day 2: Copenhagen/ Berlin (Ferry Crossing) − Day 3: Berlin/Poznan − Day 4: Poznan/Warsaw − Day 5: Warsaw/Vilnius − Day 6: Vilnius __________________________________________________________________________ 41 http://www.cosmos.com/Product.aspx?trip=36930&content=overview - 37 - ONE BSR: US Tourism Demand for the Baltic Sea Region − Day 7: Vilnius/Rundales Pils/Riga − Day 8: Riga − Day 9: Riga/Parnu/Tallinn − Day 10: Tallinn − Day 11: Tallinn/St. Petersburg − Day 12: St. Petersburg − Day 13: St. Petersburg/Vyborg/Helsinki − Day 14: Helsinki/Stockholm (Overnight Baltic Sea Crossing) − Day 15: Stockholm − Day 16: Stockholm • Buffet breakfasts, 3 lunches, 7 dinners • Transport with first-class motor coach, ferry, overnight cruise • City sightseeing in Copenhagen, Vilnius, Riga, Tallinn, St. Petersburg, Helsinki, Stockholm. • Optional excursions Figure 16: Sample tour “Around the North Sea” Source: http://www.acis.com/trips/itinerary/program/BHA#/trips/itinerary/program/BHA/?tab=itinerary One of the few samples including Hamburg is the educational tour “Around the North Sea” (!) offered by ACIS. It comprehends the highlight BSR cities of Berlin, Copenhagen as well as one day in Hamburg on the way to Amsterdam. Although being titled in reference to the North Sea, there is rather explicit connection to the Baltic Sea (ferry tip, Lübeck as “Gate to the Baltic”). In detail, the tour is set up as follows (see also Figure 16):42 __________________________________________________________________________ 42 http://www.acis.com/trips/itinerary/program/BHA#/trips/itinerary/program/BHA/?tab=itinerary - 38 - ONE BSR: US Tourism Demand for the Baltic Sea Region • 9 days, 7 nights (2 Berlin, 2 Copenhagen, 1 Hamburg, 2 Amsterdam) − Day 1: Depart from the USA, Overnight flight − Day 2: Berlin (“Germany's capital and largest city”) − Day 3: Berlin − Day 4: Copenhagen (ferry across the Baltic Sea (!) to the Danish capital) − Day 5: Copenhagen (“known as the Paris of the North”) − Day 6: Hamburg (with a stop in the “Gate to the Baltic (!), Lübeck”, “sightseeing … shows you the harbor and neighborhoods of this city where the Beatles started their career, and includes entrance to the opulent Rathaus”) − Day 7: Amsterdam (with stops in Bremen and Het Loo Palace) − Day 8: Amsterdam − Day 9: Departure for the USA. • Available for private groups on request • Optional Extensions and Extra Nights: 2 nights extension from Amsterdam to Paris Summary Online survey and in-depth interviews have shown that BSR cities will have to engage themselves with strategic and sincere marketing action in order to change the evident pull market situation. US travel trade is mostly indifferent and only reacts to the tourists’ demand. The market study could identify experienced sellers to start with, but with most of them selling rather low volume (trips to BSR). Berlin as trendy top destination in Germany, St. Petersburg as must see, Copenhagen and Stockholm should be part of futures products as most popular BSR cities. The Scandinavian metropolises Stockholm, Oslo and Helsinki profit from pre- and post-cruise offers (especially Copenhagen), good direct air connections as well as the possibility of travel to St. Petersburg from Helsinki (partly visafree). These BSR cities can only be part of a longer European itinerary or a more differentiated onecountry-tour. Typical travel period for BSR in general is from April to October, partly often with a reference to seasonal events also for other months. Intraregional transport is mainly organized with comfortable coaches while ferries and partly trains are used for certain distances (e.g. Stockholm-Helsinki respectively St. Petersburg-Moscow). - 39 - ONE BSR: US Tourism Demand for the Baltic Sea Region V. Future tourism promotion of the BSR cities The project ONE BSR aims at joint promotion of the BSR cities in the US market. In this respect, the analysis has identified relevant trends and opportunities, suitable target groups and promising travel topics. Moreover, it gives hints on product development and recommendations on promotional activities. 1. Trends and Opportunities The analysis has identified current trends and developments that are suited to affect the future potential of the BSR cities on the US-market. Discovery of new places As the research has underlined, the Baltic Sea Region and its cities are not among the topdestinations of US tourists in Europe. This fact can also be interpreted as an opportunity for the region. Experienced travelers who have already visited the landmarks of Europe may be ready to discover “new” places “off the beaten track”. Taking into account the most popular places for UStourists in Europe and in comparison to cities like London, Paris, Barcelona or Madrid, this approach needs to consider that even the most promising countries and cities in the BSR could already be understood as “off the beaten track” from the US-perspective. The aspect of “exploration” equally applies to cruise guests who come back to learn more about a town or a region known during their cruise. Cruises can thus be understood as “entrance ticket” for the BSR cities. Authentic and unique experiences, Experiential Travel Based on the idea of being a visitor rather than a tourist, travelers intend to discover the destination in an unusual and active way. Guided city tours by bike, Segway or jogging are only exemplary for this approach. Authentic insights are becoming increasingly popular, can be seen in the number of websites presenting accommodation or sightseeing with locals. Offers such as “meeting the locals” are valued as an interesting methods to discover the “real” life of families living in the country visited. An example of this type of local experience is available in Helsinki and presents the city from the perspective of a young inhabitant. Another sample is the city of Wittenberg in Germany where local families invite US-tourists to a traditional coffee party in their homes. Here, the Tourism Information office cooperates with the company Grand Circle Cruise.43 (See Figure 17) __________________________________________________________________________ 43 http://www.lutherstadt-wittenberg.de/kaffeeklatsch.html, wandeln-deutschland-auf-luthers-spuren http://www.luther2017.de/20247/us-amerikaner- - 40 - ONE BSR: US Tourism Demand for the Baltic Sea Region Figure 17: Meeting the locals in Helsinki and Wittenberg Sources: blog.visithelsinki.fi, Tourist and www.lutherstadt-wittenberg.de Convention Bureau’s Material Bank/Kaisa Luukannel, Tour operators estimate “Experiential Travel” as up-and-coming including hands-on, learning, authentic experiences and engaging with local people. Hands-on-activities referring to local traditions, such as a cooking courses or private tastings for local specialties constitute popular products. There are a lot of further ideas on how to enrich the trip with unique experiences. This may include special guided tours to places normally not open for visitors or the special attention of a local representative (e.g. hotel manager, mayor). “Different, unusual and often closed to the general public we can offer special insider access that defines experiential travel”, this is how Exeter International for instance promotes its “Extraordinary Experiences”.44 With regards to St. Petersburg, this kind of offering is available for example in “Amber Room Workshops”, a gala evening in a famous palace or private vodka tasting with traditional snacks and the introduction of the Restaurant Manager in a high-class hotel. Figure 18: “Extraordinary experiences” in St. Petersburg offered by Exeter International Source: http://www.exeterinternational.com/ __________________________________________________________________________ 44 http://www.exeterinternational.com/ - 41 - ONE BSR: US Tourism Demand for the Baltic Sea Region Heritage and multi-generational travel Being known as “heritage” or “roots” tourism, traveling to discover one’s own ancestry is another trend with relevance for the Baltic Sea Region. The German National Tourist Office (DZT) states that there are more than 50 million people with German roots living in the United States today. They are considered as a huge potential market for trips to Germany and should be targeted with specific offers and promotion.45 BallinStadt Emigration Museum in Hamburg or the German Emigration Center “Deutsches Auswandererhaus” in Bremerhaven (about two hours away from Hamburg) are examples for thematic attractions in the BSR. The significance of heritage tourism is underlined by the assessment of the tour operators polled via online questionnaire: Almost 90 % of the respondents state that this topic is (very) relevant to promote the BSR cities. Some experts also mentioned “multigenerational travel”, which is especially relevant for, but not limited to heritage tourism. The occasions for the “togethering” of various generations during a journey are often linked to private anniversaries. Further developments and opportunities When it comes to “value for money”, the position of the Baltic Sea Region is heterogeneous: As mentioned above, some regions are rather upscale while others have competitive prices. This development is consequently only an opportunity for parts of the BSR. Further good selling points (which apply to the individual BSR cities to different degrees) are the ideas of a safe region where English is widely spoken. This is especially relevant for Scandinavia. Taking into account that the BSR and its cities are no destination for the mass market today, there is much opportunity in concentrating on selected niche or affinity markets (see also V.3). Specialized tour operators develop specific products and itineraries for defined target groups (e.g. Ancestry and Jewish Heritage, Music and Performance Tours). Concentration on niche markets would require particular expertise and services for the selected segment to answer the needs of the target group. 2. Suitable Target Groups Senior citizens as most promising target group The research activities have identified suitable target groups for the promotion of the BSR cities on the US-market. Both Interviews and Online Survey clearly showed that wealthy and educated senior citizens constitute the most promising potential. It is the generation of the “babyboomers” that is reaching the age of retirement. Being retired with grown-up children, they are the people who have the time and the financial resources for overseas travel. While nearly 80 % of the polled tour __________________________________________________________________________ 45 DZT: Marktinformationen - 42 - ONE BSR: US Tourism Demand for the Baltic Sea Region operators selected this group as most suitable, still a significant portion of respondents, more than half, opted for couples between 30 and 55 years as a promising potential market. As already outlined above, the Baltic Sea Region and its cities are not destinations for first-timevisitors to Europe. It is more promising to address repeating visitors who are already familiar with the classical European landmarks and could be attracted by “new” destinations. Referring to the results of the Online Survey, young adults and student groups, as well as families and multigenerational groups are considered as less important (still more than 20 % each). There are specialized tour operators taking care of these target groups that often require a specific programme. Their relevance thus depends on the products and the orientation of the selected cooperation partners in the market. Figure 19: Suitable target groups for BSR cities46 Seniors 55+ 79,70% Couples 30 to 55 53,10% Repeat to Europe 48,40% Young adults and student groups 23,40% Families and multi-generational groups 21,90% Business travelers 6,30% Other 1,60% 0% 20% 40% 60% 80% 100% Source: Online Survey dwif 2013 Concentration on the East Coast Taking into account that marketing budgets for the promotion in the US market are limited, BSR cities should concentrate their activities on the most promising regional source markets. Respondents to the Online Survey mostly state that the East Coast has the highest potential for the BSR (91,7 %). Still, 43,3 % recommend the West Coast while only 25 % opt for Central (multiple answers possible). As the analysis above has shown, current US-tourists to Europe mostly reside in South and Middle Atlantic while New York and Florida are among the top states. Most direct flight connections from the BSR are mainly available from New York. The focus of tourism promotion should therefore lie on the East Coast of the United States, and especially in New York. __________________________________________________________________________ 46 Multiple answers possible - 43 - ONE BSR: US Tourism Demand for the Baltic Sea Region 3. Promising Travel Topics Highest relevance for Seasonal Events, Museums/Arts and Historical/Cultural Sites The term “Baltic Sea Region” alone is not sufficient for the tourism marketing in the US (rather unknown, in need of explanation, weak/unclear image). Promotion should therefore work with specific themes or travel experiences. But as analysis has shown, the perception of the BSR and its cities is heterogeneous. However, there is one overarching thread of culture and history in general, which not only applies to the Europe in general but also to the BSR cities in particular. The Online Survey among US-tour operators has identified several more concrete promising travel topics for the promotion of the BSR cities to the US-market: The cultural subthemes “Museums and Arts” and “UNESCO, Historical or Cultural Sites” are highly valued (see Figure 20): More than 50 % of the respondents state that these topics are very relevant while further 41,2 % (Museums and Arts) respectively 38,8 % (UNESCO, Historical or Cultural Sites) still judge them as relevant. In-depth interviews confirmed that history, museums and art are well-established travel experiences in the US travel market for the BSR. The respondents who selected “very relevant” for these travel topics, explained their choice predominantly with quality and quantity of the existing offerings (“great museums”, “top of the line art museums”, “Hermitage”, “lots of museums to see”, “Riga, Warsaw center, those jewel boxes of culture and history”) or their clients’ needs (“Art is a driver for our customers”, “most Americans like museums and understand art”, “always a strong factor to visit a region”). Although expert interviews and comments by the participants in the Online Survey have shown that the UNESCO-label is less relevant for tourism promotion in the US (“No one cares.”, “US-Americans don’t know/don’t understand what it means”, “UNESCO is to Americans no value”), some mentioned different perceptions (“In general, UNESCO sites are worth visiting.”, “UNESCO is always a draw.”, “We try to include UNESCO sites in our tours when possible.”). Looking at the specific recommendations for individual cities clearly underlines the highest relevance of these topics for St. Petersburg (73,9 % for Museums and Arts, 67,4 % for UNESCO, Historical and Cultural Sites). Specific Seasonal Events as distinctive feature and travel motivation Apart from these classical cultural and historic travel experiences, the Online Survey demonstrates that “Specific Seasonal Events” constitute an important promotional topic for the BSR cities. More than 55 % of the respondents value them as very relevant and further 32,8 % as relevant. Respondents praise events as “major highlight of travel” and state that unique events allow different experiences and make the area interesting. Seasonal Events with a relation to the BSR cities may be Christmas Markets, Northern Lights, Summer Solstice or the White Nights, thus mostly occasions that are very specific for the BSR. They consequently help to distinguish the area from other destinations and create reasons for travel. According to the polled tour operators, seasonal events are especially relevant for the cities of St. Petersburg, Helsinki and Hamburg (Christmas Markets). - 44 - ONE BSR: US Tourism Demand for the Baltic Sea Region Design as attractive topic for Scandinavian cities “Scandinavian and Baltic Architecture and Design” is equally judged as a promising travel experience for the BSR cities (47 % very relevant, 34,8 % relevant). One of the determining factors for this attractive feature is Scandinavian design. Several respondents named concrete brands (Dansk, Marimekko, IKEA). Obviously, there is a close connection to Helsinki, the World Design Capital in 2012. In September 2013, the annual festival “Helsinki Design Week” will take place, and the city’s Tourist Board also makes use of this topic. The polled tour operators state in their comments that (Scandinavian) design (including interior design) and architecture are also connected to both local lifestyle and current accommodation in the US: “Many new homes in the US incorporate these designs.”, “Thanks to IKEA, this style is now gaining popularity in the US”. Scandinavian design (and architecture) are thus suitable to serve as a specific distinctive feature for (a certain part of) the BSR cities. Moreover, this topic can also be considered as a niche for experts (e.g. Art and Architecture Tours). Apart from Helsinki, some respondents also mentioned St. Petersburg in connection to this topic. Fascinating royal and imperial heritage “Royal and Imperial Heritage” are also a relevant topic for the promotion of BSR cities to the USmarket: Nearly 90 % of the respondents see it as very relevant or relevant. This positive acknowledgement can be traced back to a certain fascination for this topic which is understood as interesting and important. As commented by one of the tour operators, “Americans are fascinated by the romance of royals even though they believe in a democracy.” This topic is very closely connected to St. Petersburg (“a huge draw for this”), but also to the Royal palaces in Copenhagen, Stockholm and Oslo. Music and European composers in Warsaw and St. Petersburg “Music and European Composers” are also important whereas Warsaw (Chopin) and St. Petersburg are considered as key cities to this topic. With regards to promotion and business partnerships, it would be suitable as a niche topic for specialized tour operators. In this respect, music lovers for “classical music tours” or choirs going on “performance tours” are seen as suitable target groups while average travelers would rather experience a concert as a complement to sightseeing. Ancestry and Heritage Tourism increasingly popular As already pointed out above, “Ancestry and Heritage Tourism” constitutes a promising topic for the BSR region. Although it is rather a niche topic and not suitable for escorted groups, some respondents state that this topic is (becoming more and more) popular. This could generally be applied to all BSR cities although the tour operators see Warsaw before St. Petersburg, Hamburg, followed by Riga and Helsinki. This topic is suitable to all citizens with family roots in one of the concerned countries and with an interest in genealogy. Although the focus will be on this country of origin, it is likely that the visitors will be interested in seeing another city or two, either choosing from one of the most popular cities like London or Paris or a nearby city or country to the region - 45 - ONE BSR: US Tourism Demand for the Baltic Sea Region that they are going for heritage. Tour operators mentioned during the in-depth interviews that ancestry/heritage travel is the largest niche market growing in the United States. Promising natural sites must be outstanding and specific The analysis has already shown that the cities of the Baltic Sea Region are more associated with culture and history than with nature which is self-evident as it is about urban areas. Consequently, more than 15 % of the polled tour operators consider “Natural Sites“ as less relevant. As demonstrated above, the exception is Oslo, which is closely connected to the fjords. However, especially Scandinavian countries are known for their natural sites and the cities’ surroundings may offer respective attractions. 36,4 % of the polled tour operators thus evaluate “Natural Sites” as very relevant and 45,5 % still as “relevant”. Some tour operators suggested in the in-depth interviews to combine city/urban with country/rural and activity. Among the five stakeholder cities, the highest relevance is attributed to Helsinki (followed by Riga). Taking into account the manifold presence of spectacular natural attractions in the United States and other destinations worldwide underlines that only outstanding and specific natural sites of the BSR (such as the fjords) are promising for promotion. Jewish Heritage focused on Warsaw Although more than a fifth of the respondents to the Online Survey thinks that “Jewish Heritage” is “less relevant” as travel topic for the BSR cities, still almost one-third understands it as “very relevant” (and nearly 42 % as relevant). It is clearly connected to the city of Warsaw where this topic is already present in tourism (e. g. brochure Warsaw Judaica with information and proposals for thematic itineraries). Comments of tour operators show that this topic is mostly understood as relevant for Americans seeking the roots of their own families, thus as a sub-topic of Heritage Tourism. Maritime culture and waterfronts mainly for Hamburg Although the concerned cities are widely defined as part of the Baltic Sea Region, only some of them are located directly at water fronts. Others, such as Berlin, Vilnius or Warsaw are even relatively far from water bodies. This explains why more than 15 % of the polled tour operators judge the topic “Maritime Culture, Waterfronts, Harbor and Events, Maritime Museums” as less relevant. Still, more than 87 % think that it is relevant or even very relevant. This applies especially to Hamburg, which promotes itself as maritime city (including specific leaflets such as “Hamburg Maritime”, a dedicated section on the website or the offer of maritime hotels). To some extent, Helsinki is equally expected to suit to this topic, and it can be assumed that this is also valid for Copenhagen, Oslo and Stockholm. It is understood, that Maritime Culture and Water Fronts are able to constitute a distinctive feature and possess a high relevance for cruise passengers. However, as shown above, ports can also induce negative associations. - 46 - ONE BSR: US Tourism Demand for the Baltic Sea Region Gastronomy and Nordic culinary As outlined earlier, dining in restaurants is a frequent activity of US tourists in Europe. While eating in general is part of daily life, experiencing local cuisine may become an important part of travelers’ visit to the region. Half of the polled tour operators is thus of the opinion that “Gastronomy and Nordic Culinary” are relevant travel experiences in the BSR cities. Almost one-third rates this topic as “very relevant”, and comments show that local cuisine is considered as an important and upcoming product to “discover” the destination. Interviewed tour operators indicated future potential for this topic. Positive mentions refer to fish dishes, healthy Nordic food, good own experiences and the famous restaurant “Noma” in Copenhagen. Referring to the results of the Online Survey, this topic fits best to Helsinki (and to a lower extent also to Hamburg). Nevertheless, 17,2 % of the respondents expect it to be less important. Unlike other European destinations, such as France or Italy, the Baltic Sea Region is not primarily associated with gastronomy, a topic that would have to be developed further. Taking into account the current status, explicit gastronomic trips to the BSR cities would first of all be suitable for specialized tour operators. Otherwise, it should rather be an integral part of the journey rather than a focus of product and promotion. Additional travel experiences with lower relevance Additional travel experiences seem less relevant for the promotion of the BSR cities on the USmarket: • “Outdoor Activities and Soft Adventure” are still considered as not relevant by more than a quarter of the respondents. However, a further quarter judges it even as “very relevant” and further 46,2 % as “relevant”. This topic is closely connected to Helsinki, probably also Oslo and to a certain degree also to Riga and Hamburg. In general, tour operators see it as an up and-coming travel experience. • “Entertainment” such as Musicals and Plays were seen as “less relevant” by almost 40 % of the respondents. Nevertheless, further around 46 % consider this topic as relevant for the BSR cities. It is mostly connected to St. Petersburg and Hamburg and could also be used to promote the relevant cities, but rather not as main topic. • “Health and Wellness” were equally evaluated as “less relevant” by nearly 50 % of the respondents and as “not relevant at all” by further 6,3 %. One of them stated: “USA travelers are not at all likely to travel abroad for health reasons. Spa maybe but even then the Caribbean and Mexico would be more appropriate.” Most respondents attributed this topic to Helsinki, probably thinking of Finish saunas. But just as “Shopping”, “Health and Wellness” would rather be appropriate as an additional offer on-site. • “Shopping” was judged as “less relevant” by almost 50 % of the respondents and would rather be an add-on for certain cities (St. Petersburg, Hamburg, Helsinki) than a promotional theme. In order to make shopping in the BSR cities specific, reference to local or regional specialties is useful. - 47 - ONE BSR: US Tourism Demand for the Baltic Sea Region Figure 20: Relevance of travel experiences for the BSR cities Specific Seasonal Events 55,2 Museums and Arts 52,9 UNESCO, Historical or Cultural Sites 52,2 Architecture and Design 32,8 15,2 44,8 44,8 Music, European Composers 44,4 46,0 40,3 31,3 Maritime Culture, Waterfronts 30,9 Gastronomy, Nordic Culinary 13,4 Health and Wellness 12,5 Shopping 20,9 50,0 17,2 46,2 23,1 46,3 38,8 29,7 48,4 35,4 10% very relevant 11,8 55,9 7,7 0% 9,0 15,2 41,8 26,2 Entertainment (Musicals, Plays) 7,9 45,5 29,7 Outdoor Activities and Soft Adventure 7,5 47,8 36,4 Jewish Heritage 3,0 34,8 Royal and Imperial Heritage Natural Sites 4,4 41,2 38,8 47,0 Other Ancestry, Heritage Tourism 10,4 20% 49,2 30% relevant 40% less relevant 50% 60% 70% not relevant at all 80% 90% 100% not familiar with this topic Source: Online Survey dwif 2013 4. Sample Products and Itineraries Sample itineraries should include highlight cities The development and presentation of sample products and itineraries are an important basis for the joint promotion of the BSR cities. They serve as models to demonstrate the area’s offerings as well as possible itinerary combinations. As the research has shown, the region and its cities are not able to compete with the classical European destinations in Europe, but they are of interest for repeating visitors. Taking into account that only select BSR cities are better known and rather popular in the United States, it is strongly recommended to package them for the promotion of the BSR cities in the US market. Almost 79 % of the polled tour operators confirm that only some of them can be sold as stand-alone destinations (see Figure 21). Personal interviews showed that this could merely be St. Petersburg, Berlin or Copenhagen while all others should be sold as part of larger itineraries (or pre-/post-cruise). The general approach should thus be to combine unknown cities with outstanding attractions in- or outside the BSR. At least one of the cities St. Petersburg, Berlin, Stockholm or Copenhagen should be included in sample itineraries. With regards to other European highlights, tour operators suggest to create combinations with Amsterdam, Munich, Prague, Vienna or London. Further possible conjunctions include Paris and Moscow. Apart from that, packaging cities also may contribute to gaining attention while it would be much more difficult for single, rather unknown cities. - 48 - ONE BSR: US Tourism Demand for the Baltic Sea Region Figure 21: Selling BSR cities Source: Online-Survey dwif 2013 Typical itineraries and suggestions of tour operators as model It is understood that packages with all 13 BSR cities at once are currently not realistic. They are just too different in terms of thematic focus, image and location. Parts of them, by contrast, are very likely to be offered as a package. Tour operators recommend pursuing in smaller sub-regions (or by theme). As research has shown, typical and popular (border-transgressing) combinations are as follows: • Scandinavian Capitals: Copenhagen, Oslo, Stockholm, Helsinki (very frequent and equally recommended by many tour operators in personal interviews) • Capitals of the Baltic States (in combination with other cities, e.g. St. Petersburg, Warsaw, Moscow): Riga, Vilnius, Tallinn (also recommended by several tour operators in personal interviews) • Helsinki and St. Petersburg (mostly as part of a larger tour) • Helsinki and Tallinn (as part of a larger tour) • Berlin and Warsaw (in combination with other cities, e.g. Prague, Vienna, Budapest) As mentioned above, Hamburg rarely appears among the analyzed products and tour proposals. Due to the comfortable train connection and the attractiveness of the German capital, future potential lies in the combination of Hamburg with Berlin, and further cities, e.g. Warsaw or Copenhagen. - 49 - ONE BSR: US Tourism Demand for the Baltic Sea Region Figure 22: Routes and Clusters including/connecting BSR Cities Source: dwif 2013 Further itinerary suggestions tour operators named in in-depth interviews include • Berlin, Warsaw, Vilnius, Riga, Helsinki • Hamburg, Berlin, Warsaw, Gdansk • Helsinki, St. Petersburg, Poland (not necessarily Gdansk), Hamburg • Copenhagen, Stockholm, Tallinn, Helsinki, St. Petersburg • Helsinki, St. Petersburg, Tallinn • Copenhagen and Denmark • Berlin, Hamburg, Sweden • Budapest, Prague, Berlin • Combinations with Prague, Amsterdam, London, Vienna or Munich. For a BSR itinerary, the US travel trade suggests an average of three cities per itinerary and between eight and 12 nights for the region (maximum six if sold as Pre-/Post Cruise or added to another European itinerary). Several respondents also recommended packaging smaller or shorter stays, then customizing a longer itinerary according to clients‘ interest. - 50 - ONE BSR: US Tourism Demand for the Baltic Sea Region Focus on selected themes As indicated above, tour operators suggest to focus on a certain theme or tailored trip, rather than trying to “be all things to everybody”. In this respect, Figure 23 indicates possible travel experiences, their relevance for the joint promotion of the concerned BSR cities, as well as possible thematic combinations. While some topics apply to the majority or even all five cities, others are only relevant for one of them (e.g. Jewish Heritage for Warsaw, Health and Wellness for Helsinki). When it comes to their current and future potential, “Museums and Arts”, as well as “Historical and Cultural Sites” constitute the established main topics while others hold future potential. In order to push one or two of these growth topics, a long-term engagement is required. Several further topics are mostly niches for specific target groups and specialized tour operators. The remaining experiences should rather be added instead of being explicitly promoted as a separate travel experience. The overview demonstrates that “urban” topics, such as culture, art and history dominate. City Stays combining different places are thus the main point. Contrasts could be set by adding specific experiences with a reference to: • unique Natural Sites/Countryside (e.g. Fjords) or • to a certain extent Outdoor Activities/Soft Adventure (e.g. bicycle tours, hiking or winter activities in combination with the topic “Christmas”, e.g. skiing, tobogganing). Figure 23: Possible Topics and their Relevance for the Promotion of BSR cities in the US47 Source: dwif 2013 __________________________________________________________________________ 47 Natural Sites: closely connected to Scandinavia and esp. Norway/Oslo/Fjords; Health and Wellness in Finland focused on typical Sauna - 51 - ONE BSR: US Tourism Demand for the Baltic Sea Region Consideration of gateway cities In terms of accessibility, the creation of itineraries should consider direct flight connections (see Figure 9). Major gateway cities such as Berlin or Copenhagen are predestined to be starting or ending points of tours, but also further ones offering direct flights can be considered. However, the mentions of tour operators indicate that logistics could be challenging due to timing of flights and the long transfer times/distances between cities. Bundling of cities should thus focus on geographic clusters respectively cities with good public transport connections (e.g. high speed trains between Helsinki and St. Petersburg or Hamburg and Berlin). Escorted group travel and cruises mostly recommended According to the polled tour operators, escorted group travel would work best for a BSR cities itinerary (61,1 %). 51,4 % recommend Cruises while 47,2 % selected FIT/customized travel.48 Tour operators expect escorted group travel to remain popular for the region, especially for the elder market. This form of travel helps control quality, comfort and costs of the entire trip. As alluded in in-depth interviews, US travelers generally may not be too comfortable in the region (partly due to unfamiliarity, partly due to the nature of the US traveler), and this means they will prefer either an escorted group or guided FIT package or cruise. Apart from traveling through the region by cruise, Pre- and Post-Cruise Tours are considered an opportunity for the BSR cities. This applies mainly to Oslo, Copenhagen, St. Petersburg and Helsinki, but also others could be included (e.g. Hamburg, Gdansk, Riga, Tallinn). Pre- and Post-Business Travel plays only a minor role. 5. City-specific recommendations The analysis shows that each of the stakeholder BSR-cities has an individual starting position with regards to the promotion on the US market. The key findings and specific recommendations for the respective cities are summarized below. 5.1 Hamburg • More than 100.000 overnight stays by US tourists and direct access from USA Image / high profile • Compared to other BSR cities Hamburg´s general attractiveness is underestimated • General lack of image even if name is known • Controversy image as port city with negative associations such as industrial, dirty Work on Hamburg´s attractiveness, refer rather to Maritime city than port city, promote as preand post-cruise destination, gateway to North Sea, to Baltic Sea via Belt or Copenhagen/Rostock-Warnemünde __________________________________________________________________________ 48 Multiple answers possible - 52 - ONE BSR: US Tourism Demand for the Baltic Sea Region Travel topics • Growth topics: − History, the Hanseatic league (Baltic Sea + Bremen), emigration (Bremerhaven) and the gateway-function as well as culture in general and architecture − Maritime Culture, Waterfronts, Harbor and Events, Maritime Museums as general match, needs more promotion (additional to existing leaflets such as “Hamburg Maritime”, a dedicated section on the website or the offer of maritime hotels) – e.g. Internationales Maritimes Museum (mentioned in trip advisor) with special offer for Alumni travel • Niche topics: − “Music and European Composers” only in connection with Warsaw (Chopin) and St. Petersburg − Seasonal occasions and events: Hafengeburtstag, Alstervergnügen, Christmas market (with others), Cherry blossom in the “Alten Land”, Hamburg Classics …) underlining Hamburg´s attractiveness and entertainment offer • Add-ons: − Elaborate Culinary aspect for Hamburg − Work on soft adventure topics e.g. sailing, rowing, canoeing on the Alster, Elbe, attractive bike trails etc. Geographical clusters for product development Hamburg could be sold with • Amsterdam • Scandinavian cities, especially Copenhagen (train and ferry) • Bremen / Bremerhaven (train; topic emigration/ roots tourism with exhibitions Ballinstadt und German Emigration Center/Deutsches Auswandererhaus) • Potential to cooperate with Berlin (using high speed train), further connection: Warsaw or via night train connection to St. Petersburg • Raise image and attractiveness, selling the attractive surroundings like Lübeck as UNESCO World Heritage or attractive destinations in Mecklenburg-West Pomerania as UNESCO cities Wismar and Stralsund with Pre- and Post-Cruise Elaborate cooperation structures for clusters Target groups / market segments • Pre- and Post-Cruise • Repeat to Europe • Possibly MICE (according to/ in cooperation with Berlin; recent Berlin strategy focusses on profiling and selling Berlin as MICE destination in the US) - 53 - ONE BSR: US Tourism Demand for the Baltic Sea Region Table 10: Tour operators (already selling Hamburg) Name of tour operator Name of tour operator AAA member choice vacations ACIS Adventure Caravans Alamo World Travel & Tours American Travel Tours Avanti Destinations Aviation & Tourism International Bike Tours Direct Celtic Tours Cole Travel Continental Journeys Cosmopolitan Travel by Scott David Travel European Destinations European Tours EuroVacations Express Travel Grand Circle Travel Horizon & Co. Int Travel Passport Travel & Tours Peak Performance Tours Polk Corporate Travel Management Prime Time Travel Rail Europe Redyk Travel responsibletravel.com Seniortours Tatra Travel The Annemarie Victory Organization, Inc. Thomas Tours & Travel Tradesco Travel Travel Options Viator Viking Travel Service Royal Caribbean International Jensen World Travel Key Tours International New Millenium Travel Odyssey Travel Pack & Pedal Europe, Inc. Source: dwif 2013 5.2 Helsinki • More than 100.000 overnights stays of US tourists in 2011 and direct access from US, attractive flight connection with stop-over in Iceland, promotional campaigns by Iceland Air, USP because of gateway function for St. Petersburg (Visa free – short trip) Image / high profile • Rated as very attractive by more than 30 % and as attractive by nearly half of the respondents • Generally possesses a positive image and good awareness • Function as gateway city to St. Petersburg • Image is connected to Scandinavia and the Nordic region - 54 - ONE BSR: US Tourism Demand for the Baltic Sea Region • Modern character, architecture and design and others (e. g. shopping, culinary) • Despite all the positive descriptions, some respondents thus also alluded to negative aspects (cold, grey, expensive) or ignorance of the city Work on Helsinki´s positive image stressing the gateway function (St. Petersburg) and the connection to positively recognized destination Scandinavia, intensive use of cooperative marketing opportunities with Iceland Air Indirect/ long term: improve unattractive parts of the city (planning and development), bring in the tourism perspective into the cities´ development strategy, start awareness building process for tourism among politics, general economy, trade and population, work on “value for money”-relation Travel topics • Growth topics: Product development should work in the directions the image is already developed (see above) − the attractive flight connection via Iceland which offers exotic experiences (hot springs, cultural and natural experience) and opens up cooperative marketing topics (e.g. design twins) − Packages and tours stressing the unique gateway situation to St. Petersburg, highlighting history and sightseeing (high speed train) − The Scandinavian experience combining Helsinki either with other Scandinavian capitols or with the Fjords as unique natural experience − Maritime Culture, Waterfronts, Harbor and Events, Maritime Museums as Helsinki is equally expected to suit to this topic to some extent • Niche topics: − Design: Obviously, there is a close connection to Helsinki, the World Design Capital in 2012. In September 2013, the annual festival “Helsinki Design Week” will take place, and the city’s Tourist Board also makes use of this topic; package had been developed with Iceland/ Reykjavik (design twins) – could be expanded in connection with other Scandinavian and Baltic cities; niche for experts (e.g. Art and Architecture Tours) − Build upon the already elaborated offers such as “meeting the locals” (Bal MetPromo project) and transfer to US market as there is growing interest among Repeat-to-Europe visitors to gain unique insights in local culture and lifestyles – combination with heritage and ancestry tourism also applicable − Educational travel, if specific arrangements are available in connection with “meeting the locals” • Add-ons: − Elaborate Culinary aspect (best fitted of all BSR cities) and regional shopping for design (Marimekko) − Work on soft adventure topics e.g. sailing, rowing, canoeing, attractive bike trails etc. - 55 - ONE BSR: US Tourism Demand for the Baltic Sea Region − Use also events for motivating seasonal travel (e.g. christmas markets, Summer Solstice, Northern Lights) − Wellness in connection to Finnish Sauna, but pay attention to US American attitude towards nakedness Geographical clusters for Product development Helsinki could be sold with • Scandinavian cities • St. Petersburg • Iceland / Reykjavik • (Baltic cities) Strengthen existing cooperation structures for clusters Target groups / market segments • Pre- and Post-cruise • Repeat to Europe • (Students / Educational travel) Table 11: Tour operators (already selling Helsinki) Name of tour operator Name of tour operator Academic Arrangements Abroad iExplore ACIS In Quest of the Classics Adventure Centre Insight Vacations Alamo World Travel & Tours Int Travel Ambassadair Intrepid Travel America Asia Travel Center Jensen World Travel America by Rail Legendary Journeys American Travel Tours Majestic Vacations Artisans of Leisure Montrose Travel Aviation & Tourism International Mountain Travel Sobek Bike Tours Direct MTS Travel Borton Overseas Nelson's Scandinavia Brekke Tours New Millenium Travel Brendan Vacations Odyssey Travel China Travel Service Los Angeles Passport Travel & Tours Classical Movements, Inc. Peak Performance Tours Cole Travel Pilgrim Tours Compagnie du Ponant Polk Corporate Travel Management Contiki Prime Time Travel Continental Journeys Princess Cruises - 56 - ONE BSR: US Tourism Demand for the Baltic Sea Region Corporate Travel Service Rail Europe Cosmopolitan Travel by Scott Redyk Travel Cosmos responsibletravel.com Cruise Planners Rockport Tours David Travel Sacca Tours East West Tours Scandia World Travel Educational Opportunities Tours Scandinavian American World Tours, Inc. EF College Study Tours Scantours EF Educational Tours Seniortours Euro River Cruises Smolka Tours Eurobound Spirit Cruises European Destinations Tauck European Tours Thomas P. Gohagan & Company EuroVacations Thomas Tours & Travel Exeter International Tour Designs Inc. explorica ToursFun Express Travel Trafalgar Five Stars of Scandinavia Travcoa FOS Tours & Travel, Inc. Travel Impressions Garlin Travel Vacations To Go Gate Travel Viator Gateway Music Festivals & Tours Viking River Cruise General Tours Viking Travel Service Gindroz & Co, Inc. VIP Alpine Tours Go Ahead Tours Walking Adventures International Go Today Artistic Ambassadors Grand Circle Travel Globus Journeys Group Travel Directors Royal Caribbean International Harmon Travel Safety Tours Hermes Tours Virgin Vacations Horizon & Co. Zegrahm Expeditions Source: dwif 2013 - 57 - ONE BSR: US Tourism Demand for the Baltic Sea Region 5.3 Riga • Less than 100.000 overnights stays of US tourists in 2011, but directly accessible from New York • No focus on US tourism market so far Image / high profile • The Latvian capital is widely unknown (25% of the respondents to the online survey) and among those, who just have heard of it by name, many expect it to be less or not attractive. • Those who know more about Riga rate the city to be attractive and even very attractive (15 % ), mentioning architecture, history, charm. • Positive adjectives are such as “pretty” or “charming”. • Highlighted are the architecture, art nouveau, Riga´s old town and medieval aspects as well as history and culture in general. • Still, similarly to the idea of Tallinn, some negative associations refer to the image of a grey “communist city”. Use BSR project to raise awareness for Riga by combining Riga with more known BSR cities (e.g. St. Petersburg) Bundle as Baltic capitals with Tallinn and Vilnius to produce synergies and use association with whole region Indirect/ long term: improve unattractive parts of the city (planning and development), bring in the tourism perspective into the cities´ development strategy, start awareness building process for tourism among politics, general economy, trade and population Travel topics • Growth topics: Product development should work in the directions the image is already developed (see above) with history, art nouveau, ancestry and heritage tourism • Niche topics: − Natural and landscape experience highlighting Curonian Spit, the unspoiled landscape in connection to soft adventure e.g. sailing, rowing, canoeing, attractive bike trails etc. • Add-ons: − Elaborate Culinary aspect, but beware of too heavy meals and giblets/innards − Work on soft adventure topics Geographical clusters for product development As pointed out above Riga could be sold with • St. Petersburg and/or the other Baltic capitals • In connection with landscape and nature together with Helsinki - 58 - ONE BSR: US Tourism Demand for the Baltic Sea Region • Concerning history and ancestry together with Warsaw, Hamburg, St. Petersburg and Helsinki Table 12: Tour operators (already selling Riga) Name of tour operator Alamo World Travel & Tours American Travel Tours Bike Tours Direct Cole Travel Continental Journeys Cosmopolitan Travel by Scott Cosmos David Travel European Destinations European Tours EuroVacations Exeter International Express Travel Gate 1 Travel Go Ahead Tours Grand Circle Travel Horizon & Co. In Quest of the Classics Int Travel Intrepid Travel New Millenium Travel Odyssey Travel Passport Travel & Tours Peak Performance Tours Pilgrim Tours Polk Corporate Travel Management Prime Time Travel Redyk Travel responsibletravel.com Seniortours Tauck Thomas Tours & Travel Tour Designs Inc. Tours4Fun Travcoa Viator Name of tour operator Safety Tours Cox & Kings Isram World Tours (Europe Too) Grand European Tours Kompas Krakowiak Travel Agency Tradesco Travel Academic Arrangements Abroad Compagnie du Ponant Cruise Planners East West ToursEuro River Cruises Five Stars of Scandinavia FOS Tours & Travel, Inc. Gindroz & Co, Inc. Harmon Travel Jensen World Travel Scandinavian American World Tours, Inc. Scantours Trafalgar Vacations To Go VIP Alpine Tours Walking Adventures International Zegrahm Expeditions Five Star Touring Lindblad Expeditions Overseas Adventure Travel Adventure Centre PAT Tours Artisans of Leisure Nelson's Scandinavia AER World Tours Jewish Travel Agency Pack & Pedal Europe, Inc. Select International Tours Travel Gallery, Inc. - 59 - ONE BSR: US Tourism Demand for the Baltic Sea Region Viking Travel Service Artistic Ambassadors Globus Journeys Source: dwif 2013 5.4 St. Petersburg • St. Petersburg is a definite “Must See” of BSR, being with Berlin and - with restrictions Stockholm among the only BSR cities having outstanding attractions for US tourists (according to TripAdvisor - analysis, “fortissimo” and “forte”) • More than 120.000 arrivals by US tourists in 2012 (number of overnights not available) • Situation due to visa regulation for international tourists and no direct flight connection to the US is difficult and does not reflect the given demand; but St. Petersburg will open a new airport terminal, which might imply also new direct flight connections to and from the USA in the future (presumably New York and Boston) Image / high profile • Nearly 70 % of the respondents rate St. Petersburg as very attractive with further 24 % perceiving it as attractive. St. Petersburg consequently is ranked first among the other BSR cities • It is mainly characterized with very positive adjectives expressing such as beautiful, fascinating or amazing, History and culture determine St. Petersburg’s image, the Hermitage being the most known attraction as well as the Tsar history • Russian destinations (further Moscow) are generally perceived as most exotic and the highlights of trips to BSR region. Underline and promote existing image Main effects for attracting more US tourists will result from improving the visa regulation and the direct air accessibility. Travel topics • Growth topics: − Stand-alone destination St. Petersburg: respondents clearly marked the city as possible stand-alone product, the major topic being its world famous architecture and sights (palaces, museums), the Royal and Imperial history of the Tsars and events (White Nights) − St. Petersburg thus could be connected to all tours around BSR as highlight destination • Niche topics: − “Music and European Composers”: with important composers e.g. Tschaikowsky and the famous “White Nights Festival” (consists of a series of classical ballet, opera and music events and includes performances by Russian dancers, singers, musicians and actors, as well as famous international guest stars) St. Petersburg offers attractive events in this section - 60 - ONE BSR: US Tourism Demand for the Baltic Sea Region • Add-ons: − Shopping − Entertainment Geographical clusters for Product development St. Petersburg: • Scandinavia, than for easy access via high speed train from Helsinki • Concerning history and ancestry together with Hamburg, St. Petersburg, Riga (further Baltic Cities) and Helsinki • Potential to cooperate with Hamburg - Berlin (using high speed train) than further connection to Warsaw via new night train • In connection with “Music and European Composers” with Hamburg and Warsaw (Chopin) Build up new and strengthen existing cooperation structures for clusters Target groups / market segments • Pre- and Post-Cruise • Repeat to Europe Table 13: Tour operators (already selling St. Petersburg) Name of tour operator Name of tour operator Alamo World Travel & Tours Aviation & Tourism International American Travel Tours Borton Overseas Bike Tours Direct Compagnie du Ponant Brendan Vacations Corporate Travel Service Cole Travel Cruise Planners Contiki East West Tours Continental Journeys Educational Opportunities Tours Cosmopolitan Travel by Scott EF College Study Tours Cosmos Euro River Cruises David Travel explorica EF Educational Tours Five Stars of Scandinavia European Destinations FOS Tours & Travel, Inc. European Tours Garlin Travel EuroVacations Gindroz & Co, Inc. Exeter International Group Travel Directors Express Travel Harmon Travel Gate 1 Travel iExplore Go Ahead Tours Jensen World Travel Grand Circle Travel Legendary Journeys - 61 - ONE BSR: US Tourism Demand for the Baltic Sea Region Horizon & Co. Montrose Travel In Quest of the Classics Mountain Travel Sobek Insight Vacations MTS Travel Int Travel Princess Cruises Intrepid Travel Rockport Tours New Millenium Travel Scandinavian American World Tours, Inc. Odyssey Travel Scantours Passport Travel & Tours Smolka Tours Peak Performance Tours Spirit Cruises Pilgrim Tours Thomas P. Gohagan & Company Polk Corporate Travel Management Trafalgar Prime Time Travel Vacations To Go Redyk Travel Viking River Cruise responsibletravel.com VIP Alpine Tours Seniortours Walking Adventures International Tauck Royal Caribbean International Thomas Tours & Travel Virgin Vacations Tour Designs Inc. Zegrahm Expeditions Tours4Fun A Touch of Class Tours Travcoa AAA member choice vacations Viator Abercrombie & Kent Viking Travel Service AHI Travel (Alumni Holidays) Artistic Ambassadors CIE Tours Globus Journeys Cultural CrossRoads Safety Tours DAI Travel 206 Tours Elite Travel Celtic Tours Five Star Touring Collette Vacations Gutsy Women Travel Cox & Kings Holland America Line Isram World Tours (Europe Too) Homeric Tours Grand European Tours Lakani World Tours Kompas Lindblad Expeditions Krakowiak Travel Agency Maupintour Extraordinary Vacations Sawa Travel Music Travel Consultants Syrena Travel Agency Overseas Adventure Travel Tatra Travel The Annemarie Victory Organization, Inc. Tradesco Travel Women Traveling Together WorldStrides AIMS Academic Arrangements Abroad Group Destination Planners ACIS Sita World Tours Ambassadair - 62 - ONE BSR: US Tourism Demand for the Baltic Sea Region America Asia Travel Center America by Rail Source: dwif 2013 5.5 Warsaw • More than 100.000 overnights stays of US tourists in 2011, but actual status is below 2003, average length of stay of US tourists in BSR cities is lowest in Warsaw (1,9 days), direct flight connection • Still tourism board recognizes high proportion of US tourists among international tourism, which may have jewish background or also roots and heritage tourism • Probably profits from in-destination Cracow Image / high profile • Only about 17 % of the respondents see Warsaw as very attractive and still more than half of them see it as attractive • Main associations refer to its history with the subthemes Jewish history, the Warsaw Ghetto and World War II • Single respondents characterize the city as cold, grey or ugly • Some experts also mention that Warsaw is rather unknown and does not have any strong image in the United States Concentrate on image and topics Warsaw is already known for (e.g. history, Jewish heritage with new opened museum, heritage tourism) Use the nearby in-destination Cracow for motivating more visits to Warsaw (Warsaw as gateway to Cracow) Stress tourist friendly value-for-money – relation Indirect/ long term: improve unattractive parts of the city (planning and development), bring in the tourism perspective into the cities´ development strategy, start awareness building process for tourism among politics, general economy, trade and population Travel topics • Growth topics: Product development should work in the directions the image is already developed (see above) with history with the special focus on Jewish legacy, but also in general and architecture, imperial epoques (Polish kings), ancestry and heritage tourism • Promote Warsaw in combination with nearby in-destinations e.g. Berlin and Cracow • Niche topics: − “Music and European Composers” as Warsaw was the only destination associated with classical music (Chopin with Chopin Airport, Museum, Festival, Memorial) • Add-ons: − Elaborate Culinary aspect, but beware of too heavy meals and giblets/innards - 63 - ONE BSR: US Tourism Demand for the Baltic Sea Region − Work on soft adventure topics e.g. sailing, rowing, canoeing, attractive bike trails etc. Geographical clusters for Product development Warsaw could be sold with • Nearby Berlin and Hamburg as well as Baltic Cities • Also in direction to Tchech Republic (Prague, Vienna) • Concerning history and ancestry together with Hamburg, St. Petersburg, Riga and Helsinki • Potential to cooperate with Berlin (using high speed train), further connection: Warsaw or via night train connection to St. Petersburg • In connection with “Music and European Composers” (Chopin) with Hamburg and St. Petersburg • Bundled with in-destination Cracow Build up new and strengthen existing cooperation structures for clusters Target groups / market segments • Pre- and Post-Cruise • Repeat to Europe • (Students / Educational travel) Table 14: Tour operators (already selling Warsaw) Name of tour operator Name of tour operator Adventure Centre responsibletravel.com Alamo World Travel & Tours Seniortours American Travel Tours Tauck Bike Tours Direct Thomas Tours & Travel Brendan Vacations Tour Designs Inc. Cole Travel Tours4Fun Contiki Travcoa Continental Journeys Travel Impressions Cosmopolitan Travel by Scott Viator Cosmos Viking Travel Service David Travel Artistic Ambassadors EF Educational Tours Globus Journeys European Destinations Safety Tours European Tours 206 Tours EuroVacations Avanti Destinations Exeter International Celtic Tours Express Travel Classic Travel - 64 - ONE BSR: US Tourism Demand for the Baltic Sea Region Gate 1 Travel Collette Vacations Gateway Music Festivals & Tours Cox & Kings Go Ahead Tours Isram World Tours (Europe Too) Go Today Grand European Tours Grand Circle Travel Kompas Horizon & Co. Krakowiak Travel Agency In Quest of the Classics Mosaic Group Travel Insight Vacations PAT Tours Int Travel Peter's Way Tours Intrepid Travel Poland Culinary Vacations, Inc. New Millenium Travel Ritz Tours Odyssey Travel Sawa Travel Passport Travel & Tours SST Tours Peak Performance Tours Syrena Travel Agency Pilgrim Tours Tatra Travel Polk Corporate Travel Management Tradesco Travel Prime Time Travel VBT Bicycling and Walking Vacations Rail Europe WorldStrides Redyk Travel Source: dwif 2013 6. Recommended promotional activities for BSR Cities Focus on B2B-marketing strengthening market push Taking into account limited budgets, promotional activities for the BSR cities on the US market need to be target-oriented. In this respect, marketing should concentrate on business-to-business(B2B-) measures (market push). Fam-trips US-tour operators clearly recommend conducting educational fam-trips to the BSR cities (78,7 %). It is understood that these are very expensive and the request for these trips may be motivated by respondents’ individual desire, but may not necessarily provide the best return on investment. In terms of “quality before quantity”, they should thus be realized with small groups consisting of the “right” stakeholders only. Trip itineraries, topics and regions visited must be determined by the specific needs of the attending stakeholders as well as compatibility with the stakeholders’ portfolio. This approach enhances both success of the measure and interest of the tour operator. Much of this can be pushed through inbound tour operators as their responsibility. (As one interview partner mentioned, he would only go to places or topics that he could sell realistically.) Tour operators also acknowledged that fam-trips would make a difference in selling the destination (for agent or key sales staff training). - 65 - ONE BSR: US Tourism Demand for the Baltic Sea Region Figure 24: B2B-marketing activities recommended for BSR cities49 Educational fam-trips to BSR cities 78,7% Cooperative marketing funds T/O 41,0% BSR-cities roadshow 41,0% Online training, specialist programs 36,1% Established US travel trade events 29,5% Webinars 24,6% Sales Calls 9,8% Other 3,3% 0% 25% 50% 75% 100% Source: Online Survey dwif 2013 Cooperative marketing funds with tour operators 41 % each recommend cooperative marketing funds with tour operators or hosting a BSR cities roadshow with workshops and product training. Interview partners mentioned that a single destination campaign can cost between USD $30,000-$40,000 and that the individual operator could not afford this amount of marketing for one destination. Practical examples: • Croatia saw a boost in numbers to the destination after participating in a co-op marketing campaign with a major US tour operator • Switzerland Tourism executed a co-op mailing through US organization AARP, which worked well. Other respondents recommended to cooperate with tour operators only (not particular agencies) or to invest in a cooperative strategy rather than in “brochure pages”. Cooperation with consortia and associations Moreover, interview partners recommend cooperating with consortia and associations. Working with these consortia was seen as “a great way to reach a large group of qualified and active agents” (examples: Virtuoso, Signature Travel Network, Travel Savers, Travel Leaders, Vacation.com, WESTA). As for associations of tour operators and travel agents, USTOA (United States Association of Tour Operators) and ASTA (American Society of Travel Agents) were recommended. __________________________________________________________________________ 49 Multiple answers possible - 66 - ONE BSR: US Tourism Demand for the Baltic Sea Region Roadshow for the BSR cities A roadshow for the BSR cities should focus on selected regional markets. Several tour operators mentioned in in-depth interviews that they would not travel to attend a roadshow themselves. With respect to the format, responses were mixed: Several expressed interest in attending to receive direct contacts for on-the-ground product, and others wanting to participate as a supplier and meet with US-based travel agents. Practical examples: • The Australian States come together for an annual event bringing in hosted buyers and suppliers to one location. • Visit Britain and Switzerland Tourism host road shows in several cities with regional representatives/product and agents in attendance. Online training courses and webinars Online training courses and specialist programs were recommended by more than one-third of the respondents while only about one-quarter selected webinars. Especially online trainings are costeffective for the suppliers and easily accessible and less time-consuming for participants. This is a way of enhancing awareness and motivation among advisors and giving them a better feel of the destination. However, there are numerous similar offers on the market. It is thus crucial to provide and communicate an (economic) advantage for participants (e.g. credits/certificates), to deliver “fresh” content in an attractive way. Practical examples: • One respondent conducts a continuous series of online training courses with their Australia/Pacific and Africa specialist agent networks. • GNTO frequently hosts co-op webinars with a regional tourism board (e.g. Berlin) and a USbased tour operator to conduct agent training. Travel trade events Yet almost 30 % recommend to attend established travel trade events. As suggested during an indepth interview, the choice should mix the big ones (such as USTOA’s Annual Conference or SeaTrade) with smaller, specific events (such as the Educational Travel Conference or hosted events during travel agent Consortia Annual Meetings). BSR cities ideally should select a few key events and make a bigger impact (e.g. sponsoring evenings, speakers or educational opportunities) to raise destination awareness among key industry groups. For future years, when the reputation of the group is more established, then just attending (a broader range) events will be okay. However, taking into account budget restrictions, it is understood that attending all events is not realistic. Sales calls Only about 10 % would do sales calls to promote the BSR cities. Nevertheless, several interview partners mentioned Sales Calls and destination training in-person as useful with one saying that it would be better to train all of their staff than to bring only one person on a fam-trip. - 67 - ONE BSR: US Tourism Demand for the Baltic Sea Region Tour operators recommend informative BSR website As far as sales and promotional material for the US travel trade are concerned, tour operators and further experts clearly recommend a strong and informative website for the BSR. As suggested in several interviews, this website should be split with one section each for professionals and consumers. The US travel trade expects • Sample itineraries (including sample city combinations and information on transfers between regions) • Information on the destinations overall (also as a resource for consumers) • Contacts to relevant tourism boards, hotels and further suppliers • Sales manuals, guidebooks and maps (online). Displaying sample itineraries provides an idea of possible combinations per theme and/or geographic proximity and logistics, thus supports tour operators and travel agents in developing their products and selling the BSR cities. The same applies for business contacts and sales manuals, destination guidebooks and maps which are available online and for download. Overall information on the region and its cities would equally be relevant for consumers as well. As these consumers are often doing their own research, suitable information and attractive pictures are very important. Taking into account that the BSR cities intend to move forward with a joint promotion, it is highly recommended to establish a central website instead of referring to the existing websites of individual cities. All marketing activities would thus direct back to this website. The maintenance and regular updates of this common website require the partners’ commitment, ideally beyond the project’s lifetime. It is understood that the question of responsibility after the funding by the Baltic Sea Region-program poses a challenge and would need to be discussed among the involved institutions. In order to secure the website’s ongoing maintenance, however, the following ideas should be evaluated within the partnership: • One partner could overtake the responsibility for hosting the website. This option would require an appropriate benefit for this partner, which should already be considered during the planning phase. • The site could be turned over to a top selling US-tour operator as they often have numerous URLs to distribute their products, and this new one would already have established value developed during project time. Instead of a full-service website, the BSR cities could set up a landing-page only that has less content and directs to individual cities. Instead of merely being a gateway, this site, however, would have to offer an additional benefit for travel trade and consumers such as online trainings, topics etc. Instead of being a full-fledged website, it could offer some lively and updated modules, e.g. high class events in the BSR cities, distinctive features and press releases. - 68 - ONE BSR: US Tourism Demand for the Baltic Sea Region Figure 25: Recommended Sales and Promotional Material for US Travel Trade50 Informative BSR website 60,0% Sample itineraries for BSR trips 49,2% Contacts "One stop shop" DMCs 36,9% Online trainings/webinars 30,8% Sales manuals etc. (online/downl.) 29,2% Product contacts in BSR cities 24,6% Quick responses to queries 23,1% Sales manuals etc. (print) 16,9% 0% 25% 50% 75% Source: Online Survey dwif 2013 The website should then also include further support for tour operators such as the introduction to contacts, trainings, webinars or sales manuals (see also Figure 25). Create awareness among consumers for increasing market pull Despite all concentration on B2B-activities, it is vital to build up awareness for the BSR and its cities among consumers (market pull). Tour operators often book according to their clients’ requests respectively will consider destinations only if they receive relevant demand. Accordingly, interview partners recommended more exposure for the destinations overall. Reaction of tour operators to B2B measures will strongly depend on whether they trust also in the market pull - strategy conceived by the destination involved. Any, if not all of the B2C-marketing should be pursued to raise consumer awareness and therefore demand for the destination. Experts outlined the relevance of continuous press work and recommended to conduct press tours to the region respectively to parts of it. It was also mentioned that the acquisition of media for tours to “unknown” regions can be beneficial. As per the respondents to the Online Survey, the top three recommended consumer activities for the promotion of the BSR cities are • Travel TV Shows (52,5 %) • Social Media (50,8 %) • Travel Magazine Advertising (42,6 %).51 __________________________________________________________________________ 50 51 Multiple answers possible See Figure 26 for details - 69 - ONE BSR: US Tourism Demand for the Baltic Sea Region TV and magazine activities are relatively expensive, but tour operators said in in-depth interviews that these were good vehicles for increasing consumer familiarity with the destination. Getting dynamic images in front of the consumer would help to build interest in and awareness of the region. Taking into account the media usage of senior citizens as a central target group, TV even gains importance. Figure 26: Recommended consumer activities52 Travel TV Shows 52,5% Social Media 50,8% Travel magazine advertising 42,6% Public relations 32,8% Consumer sweepstakes/trip giveaways 26,2% Consortia advertising 26,2% Online advertising 26,2% 0% 25% 50% 75% Source: Online Survey dwif 2013 Focused and continuous engagement required The Baltic Sea Region and its cities are widely unknown as tourism destination in the US market and need to compete with established destinations worldwide and in other parts of Europe. Taking into account the weak image and low awareness of the Baltic Sea Region in the US, promotion needs to present selected themes. Research has shown that the future promotion should clearly focus on defined segments only instead of “trying to please everybody”. In case of certain niche or affinity markets, this would imply distinctive products and services for the specific target group. The project and its partners need to be aware that the successful promotion of the BSR cities in the US market, convincing business partners and raising awareness among consumers requires a serious, long-term, continuous commitment beyond the lifetime of the ONE BSR project and respective funding. __________________________________________________________________________ 52 Multiple answers possible - 70 - ONE BSR: US Tourism Demand for the Baltic Sea Region 7. Marketing strategy recommendations for BSR cities Although focusing resources on the push side, building awareness among travel trade, the strategy will also have to incorporate action towards market pull, raising awareness among consumers. Only this way tour operators and travel agents will be motivated to join in and cooperate. Figure 27: Market Push and Market Pull STEP 1 MARKET PUSH Building travel trade awareness 7.1 BSR Website Travel industry events Specific fam trip Educational webinars Co-op marketing with US Tour Operators Roadshows visiting several US cities STEP 2 MARKET PULL Activating consumer awareness BSR website strategic press trip(s) BSR inspirational booklet Social media First stage: Build travel trade awareness through push marketing • Begin with a trade marketing campaign. At the same time, inform the trade that a consumer awareness campaign will be coming 6 months later. Building a BSR Website • The website may include information relevant to both consumers and the travel trade. • All marketing activities would direct back to this website. • The website could include a list of US-based tour operators, on-the-ground product, and/or DMCs • Agent training courses and webinars could be housed here. • Advertising campaigns could direct consumers to this site for BSR information or special offers for the BSR. Attending travel industry events • Recommended events for BSR to participate in: − CLIA’s Cruise3sixty − SeaTrade − USTOA Annual Conference − ASTA Global Convention − Educational Travel Conference - 71 - ONE BSR: US Tourism Demand for the Baltic Sea Region • BSR may also sponsor functions at these events to increase destination awareness among the travel trade. Developing a specific fam-trip • Developing a fam-trip or series of 2-3 fa- trips − that are specific to areas of 3-4 cities or niche topics (like Jewish heritage or design etc.) − based off of the recommended itineraries. (It would only work if BSR and DMCs were able to provide the marketing company completed product itinerary(ies)). • Product managers/developers for tour operators would be invited to attend the fam-trips, and would make the investment of developing their own product itinerary after the fam. • If they reach a certain percentage of sales, they could receive the co-operative marketing funds mentioned below. Educational webinars • Webinars housed on the BSR website would act as educational sessions for travel agents. • Each webinar would highlight a specific regional theme or highlighted niche itinerary for trips to the BSR. − The webinar would inspire agents with strong visual components and also demonstrate how each type of trip would be put together in a BSR itinerary. − The webinar hosts could be US Tour Operators or BSR based DMCs and product. They would talk about specific product they sell to the US market as well as the regional theme or niche topic for each webinar. The host would also act as the direct contact for agents. Co-op marketing with US Tour Operators • The BSR would offer co-op funds to Tour Operators to help advertise and promote specific BSR itineraries. • These itineraries would either use existing product sold by the Tour Operators, or would be new product developed together with assistance from the BSR. • Tour Operators would reach out to their past client databases in addition to other advertising. For a detailed description on past client outreach, please refer to the section below: How to reach the “Return to Europe” market. Roadshows visiting several US cities • Two-part roadshow − Executive brunch/lunch for key members of the travel trade, including Tour Operators, trade media, relevant tourism boards etc. - 72 - ONE BSR: US Tourism Demand for the Baltic Sea Region − Afternoon destination training for agents, concluding the function with a cocktail networking function • DMCs, product and tourism boards would conduct meetings and training with travel agents. • Location: Several cities on the East Coast. In selecting cities, include some regions with large numbers of consumers with ties to BSR heritage and culture. 7.2 Second stage: Build consumer awareness Build a BSR website • including information relevant to both consumers and travel trade (as mentioned above) • For a detailed description on recommendations for a BSR website, please refer to the section below: BSR-Website Organise strategic press trip(s) • Focus on developing very strategic press trips (due to limited budget) • Mirror any developed niche markets (i.e. the special topics listed above) Develop a BSR inspirational booklet to insert into travel magazines • Would also be made available in digital format and housed on BSR website. • For a detailed description on this item, please refer to the section below: Inspirational Booklet. Social media • Utilize well-known members of the travel trade to talk about and promote the destination to their followers. Develop a social media dialogue with travel trade who are active in the region. 7.3 Reaching key target markets How to reach the “Return to Europe” market • Provide Co-op marketing funds to Tour Operators and/or agencies selling BSR product directly to consumers. − Operators would promote existing product or newly developed product, including valueadded components or other special offers. − Marketing would be done through a variety of methods and could include: Email-blasts, direct mail (print), or through traditional print and online advertising. • Market to niche groups − Market to regions in the US with strong connections to BSR heritage (mostly East Coast). - 73 - ONE BSR: US Tourism Demand for the Baltic Sea Region • Online marketing − Banner ads in TripAdvisor and other Online Travel Agencies (OTAs) − Ads would target travelers who are already searching for hotels or airfare to Europe and would direct them to web pages with BSR travel packages. How to reach the pre- and post-cruise market This market will provide a big window of opportunity for the BSR. • If travelers book their cruises through travel agents: − Provide an incentive to travel agents for booking any pre/post tours to the BSR-cities − Provide itinerary samples to the agents and direct connections to on-the-ground product. • If clients are booking directly with a cruise line: − Work with the cruise lines’ product development teams to assist in developing itineraries. − Conduct a special BSR promotion with cruise lines − Conduct training exercises in the reservation call centers for major cruise lines. − Establish direct contact with product managers and other key industry partners at events such as SeaTrade or CLIA’s Cruise3sixty − Conduct targeted sales calls and training in conjunction with these events. 7.4 7.4.1 Outreach and support to the travel trade Itinerary development and guidance • Develop sample itineraries focused on niche/affinities, such as: − Baltic Sea Region Christmas markets − Best small towns in the region − Heritage − WWII History tour − Historical palaces and architecture − Royal and imperial heritage tour − Pre and post cruising − Soft adventure • Educational Webinars will also outline sample itineraries in detail. • List sample itineraries on the BSR website − Longer (10-day) itineraries over 2-3 BSR cities − Shorter regional itineraries which can be joined together − Include niche/affinity itineraries samples as above - 74 - ONE BSR: US Tourism Demand for the Baltic Sea Region 7.4.2 Sales and promotional materials BSR Website (both for consumers and the travel trade)53 • This website would be a central location for hosting marketing activities, including: − Destination information − Information on upcoming events (both consumer and travel trade) − Micro-websites for special BSR promotions − Archived copies of webinars and e-newsletters • The site would also host individual BSR cities’ information − This would include links to all individual cities tourism websites, as well as listings of product and sample itineraries for each city. • Travel trade section of the website − This would include contact information for on-the-ground product and DMCs • Consumer section of the website − This would include contact information for Tour Operators and travel agents E-Newsletter • This e-newsletter would be a brief highlight of information on the BSR website as well as updates from the region. Possible articles to include in the e-newsletter: − Sample itineraries − Niche product − New webinars − Upcoming events • The e-newsletter would be published on a monthly or quarterly basis. • The e-newsletter would be sent out to Consumers and/or the Travel Trade Inspirational Booklet • The booklet would be developed in print and digital versions that operators and agents can send to clients, either by standard mail or email. − This would serve to excite clients who are already booked to the BSR or to inspire prospective clients. • This could also be distributed at travel trade events. • The booklet would also include regional and city maps, including a focus on sample itineraries. __________________________________________________________________________ 53 The information could partly also be included in an e-brochure as a first step (e.g. information on the destination and regular events). - 75 - ONE BSR: US Tourism Demand for the Baltic Sea Region 7.4.3 Tour operators most likely to be involved with BSR • Those who are specialized in selling Europe already − Example: Avanti Destinations • Small and mid-sized operators − Example: Exeter International, Eurobound • Education/academic travel organizations − Example: EF Educational Tours • Niche/affinity tour operators (including history and heritage tours) − Example: Luther Tours • To determine which tour operators are likely to participate, this will depend on what marketing projects BSR develops with the market. − If the BSR and its cities are offering support to their existing marketing efforts, a smaller company will likely be more interested in investing in promotions for the BSR. - 76 - ONE BSR: US Tourism Demand for the Baltic Sea Region VI. Sources Studies Deutsche Zentrale für Tourismus e. V. (2013): Marktinformationen USA. Incoming-Tourismus Deutschland. dwif (2010): Concept PATA CrossCulTour. Munich. European Travel Commission (2013): Key Findings – Study on the US Outbound Market. European Travel Commission (2013): New Media Trend Watch. USA Online Travel Market. European Travel Commission (2009): Market Insights USA. European Travel Commission (2004): The Image of Europe in North America. Google/Ipsos Media CT (2012): The 2012 Traveler. Hamburg Tourismus (2010): Die Hamburg-Kommunikation. Kooperationsmöglichkeiten und Medien. Institut für Management und Tourismus (2011): Analyse ausgewählter Auslandsmärkte für die Hamburg Tourismus GmbH. Office of Travel and Tourism Industries (2011): Profile of U.S. Resident Travelers Visiting Overseas Destinations Outbound 2011. Office of Travel and Tourism Industries (2011): Market Profile. U.S. Resident Travel to Europe. Office of Travel and Tourism Industries (2011): United States Resident Travel Abroad. Österreich Werbung (2013): Märkte und Marktstrategien. Märkte mit dem größten Potenzial für „Urlaub in Österreich!“. Handbuch 2013. Stockholm Visitors Board: Privatresor & Turistservice 2012. visitBerlin: Jahresbericht. Zahlen und Fakten 2012. Visit Finland (2011): Outbound Travel USA. - 77 - ONE BSR: US Tourism Demand for the Baltic Sea Region VisitOslo: Markedsplan VisitOslo 2013. Internet Sources www.acis.com www.comscore.com www.contiki.com www.cosmos.com www.emarketer.com www.exeterinternational.com www.hotelmarketing.com www.internetworldstats.com www.lutherstadt-wittenberg.de www.luther2017.de www.newmediatrendwatch.com www.tourmis.info www.visitberlin.de Expert Interviews National Tourist Boards Contact Person Date Latvian Tourism Development Agency Inese Sirava 04th June 2013 German National Tourist Office Ricarda Lindner 07th June 2013 Polar Star Marketing Solutions LLC (USrepresentation of Finnish Tourist Board) Helena Niskanen 12th June 2013 City Tourist Boards Hamburg Tourism GmbH Contact Person Nadja Biebow, Julia Grundmann Date 09th April 2013 City of Helsinki / Tourist and Convention Bureau Hanna Muoniovaara 03rd May 2013 Convention Bureau Warsaw Mateusz Czerwinski 06th May 2013 Live Riga/Rīgas Tūrisma Attīstības Birojs Aigars Smiltans 08th July 2013 Further Companies and Institutions Contact Person Date Riga City Council Ieva Kalnina 07th May 2013 KMS Communication Kirsten Schmidt 07th June 2013 The Travel Experience Merja Hart 13th June 2013 Hamburg Airport Anja Compton 19th June 2013 Magic Cities Dorothea Niestert 08th July 2013 - 78 - ONE BSR: US Tourism Demand for the Baltic Sea Region Kempinski Hotel Atlantic Hamburg Judith Fuchs-Eckhoff 15th August 2013 In-depth Interviews Tour Operators dwif – Consulting GmbH Tour Operator Contact Person Date ACIS James Matthews 10th July 2013 Odyssey Travel Karen Upchurch 15th July 2013 Travcoa Cathy Holler 16th July 2013 Tauck Rakesh Dewan 22nd July 2013 Avanti Destinations Harry Dalgaard 24th July 2013 Rail Europe Simone Ruf 24th July 2013 Myriad Marketing Tour Operator Contact Person Date Friendly Planet Travel Peggy Goldman 17th July 2013 SITA World Tours* Laudie Hanou 17th July 2013 Borton Overseas Linda McCormick 18th July 2013 Beatty Group Donna Johnson 18th July 2013 Gindroz & Co Karen Gindroz 18th July 2013 Marion Harbison Travel Marion Harbison 19th July 2013 Culture Quest Jean Harris 19th July 2013 Herzerl Tours Suzanne Servin 19th July 2013 Passage Custom Tours Gordon Hoffert 19th July 2013 Grand European Tours John Miller 19th July 2013 Uniworld Boutique River Cruise Collection Wanda Kowalczyk 19th July 2013 Collette Vacations David Luz 23rd July 2013 Goway* Emma Cottis 23rd July 2013 Avanti Destinations Regina Bang 24th July 2013 * = Shortened interview. Do not sell destination. - 79 -