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Market Information 2014 UK & IRELAND

UK & IRELAND...United States Germany Russian Federation United Kingdom France Canada Australia Italy Brazil (US$ billion) Source: UNWT, Tourism Highlights, 2014 Edition . International

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Market Information 2014UK & IRELAND

Message from Chris Thompson ...............................................................3

Geography .....................................................................................................4

Demographics ..............................................................................................4

Economy ........................................................................................................5

Vacation Allocation ....................................................................................6

International Visitation Trends .................................................................8

Travel Trends ................................................................................................9

Traveler Characteristics ........................................................................... 10

Air Travel Information ...............................................................................13

Travel Market ..............................................................................................17

Brand USA Traveler Research ................................................................ 20

Brand USA FY2013/FY2014 Highlights ................................................27

About Brand USA ......................................................................................31

About Black Diamond ..............................................................................31

TABLE OF CONTENTS

About This GuideBrand USA and its representatives from Black Diamond are pleased to present you this guide, which contains a variety of information on the UK and Irish markets. Included is a snapshot of the economy in the United Kingdom and Ireland, as well as important information about the traveler (booking channels, consumer trends, U.S. visitation data, and key travel motivators and indicators).

UK & Ireland Market Information 2014 3

Welcome to WTM

Brand USA – the public-private partnership established to increase international tourism to the U.S. – looks forward to working with you in the United Kingdom and Ireland and welcoming you to WTM. This guidebook will familiarize you with the travel landscape in these important origin markets.

The United Kingdom (and Ireland) is one of three original international markets in which Brand USA launched its initial consumer-advertising campaign in 2012. Today, Brand USA has 12 offices in locations that represent the leading markets for inbound travel to the United States. In addition to the United Kingdom, Brand USA has representation offices in Australia, Brazil, Canada, China, Germany, Hong Kong, India, Japan, Mexico, New Zealand, South Korea, and Taiwan.

Brand USA conducts outreach through U.S. pavilions and international representation in a total of 20 global markets – the source of 90 percent of all international tourism to the United States. Overall, Brand USA has a marketing presence in more than 30 key markets.

I invite you to visit the Brand USA pavilion at WTM to meet with our staff and in-market representatives from the United Kingdom. We can show you how to leverage an array of marketing resources. Together with our partners, Brand USA continues to inspire travelers to “discover this land like never before!”

Best wishes for a great show.

Together, we are marketing the USA!

Chris Thompson President & CEO Brand USA

4 Brand USA www.discoveramerica.com

GeographyUnited KingdomArea

243,610 sq km World Rank: 80thSource: CIA World Factbook

IrelandArea

70,273 sq km World Rank: 120thSource: CIA World Factbook

DemographicsPopulation

United Kingdom63,742,977 (July 2014 est.), World Rank: 23rd

Ireland4,832,765 (July 2014 est.), World Rank: 123rd

United States318,892,103 (July 2014 est.), World Rank: 4th

Source: CIA World Factbook

Major Urban Areas

United KingdomLondon (capital city): 9.005 million

Birmingham: 2.272 million

Manchester: 2.213 million

West Yorkshire (county): 1.625 million

Glasgow: 1.137 million

Newcastle upon Tyne: 874,000 (2011)

IrelandDublin (capital city): 1.121 million (2011)

Source: CIA World Factbook

IRELAND

Dublin

NorthernIreland

Newcastleupon Tyne

Manchester

Birmingham

London

UNITEDKINGDOMGlasgow

Wales

England

Scotland

UK & Ireland Market Information 2014 5

Age Structure

Age USA United Kingdom Ireland

0-14 years 19.4% 17.3% 21.4%15-24 years 13.7% 12.6% 11.9%25-54 years 49.9% 41.0% 44.1%55-64 years 12.6% 11.5% 10.1%65 years and older 13.9% 17.3% 12.1%Median age 37.6 years 40.4 years 35.7 yearsPopulation growth rate (2014 est.) 0.77% 0.54% 1.2%

Source: CIA World Factbook

ClimateThe United Kingdom has a temperate climate. It is moderated by prevailing southwest winds over the North Atlantic Current and more than one-half of the days are overcast.

Ireland has a temperate maritime climate with mild winters and cool summers. It is overcast about half of the time.

EconomyUnited Kingdom

GDP: $2.387 trillion (2013 est.), World Rank 9th

GDP real growth rate: 1.8% (2013 est.)

GDP – per capita: $37,300 (2013 est.)

Unemployment rate: 7.2% (2013 est.)

Inflation rate: 2% (2013 est.)

Source: CIA World Factbook

Ireland

GDP: $190.4 billion (2013 est.), World Rank 59th

GDP real growth rate: 0.6% (2013 est.)

GDP – per capita: $41,300 (2013 est.)

Unemployment rate: 13.5% (2013 est.)

Inflation rate: 0.6% (2013 est.)

Source: CIA World Factbook

6 Brand USA www.discoveramerica.com

Vacation Allocation and Public HolidaysEngland, Wales and Scotland2014December 1 Monday St Andrew’s Day (substitute day)December 25 Thursday Christmas DayDecember 26 Friday Boxing Day

2015January 1 Thursday New Year’s DayJanuary 2 Friday 2nd January (Scotland only)April 3 Friday Good FridayApril 6 Monday Easter Monday (England and Wales only)May 4 Monday Early May bank holidayMay 25 Monday Spring bank holidayAugust 3 Monday Summer bank holiday (Scotland only)August 31 Monday Summer bank holiday (England and Wales only)November 30 Monday St Andrew’s Day (Scotland only)December 25 Friday Christmas DayDecember 26 Saturday Boxing DayDecember 28 Monday Boxing Day bank holiday

Northern Ireland2014December 25 Thursday Christmas DayDecember 26 Friday Boxing Day

2015January 1 Thursday New Year’s DayMarch 17 Tuesday St Patrick’s DayApril 3 Friday Good FridayApril 6 Monday Easter MondayMay 4 Monday Early May bank holidayMay 25 Monday Spring bank holidayJuly 13 Monday Battle of the Boyne (Orangemen’s Day)

(substitute day)August 31 Monday Summer bank holiday December 25 Friday Christmas DayDecember 26 Saturday Boxing DayDecember 28 Monday Boxing Day bank holiday

UK & Ireland Market Information 2014 7

Republic of Ireland2014December 25 Thursday Christmas DayDecember 26 Friday St Stephen’s Day

2015January 1 Thursday New Year’s DayMarch 17 Tuesday St Patrick’s DayApril 6 Monday Easter MondayMay 4 Monday May Day bank holidayJune 1 Monday June bank holidayAugust 3 Monday August bank holidayOctober 26 Monday October bank holidayDecember 25 Friday Christmas DayDecember 26 Saturday St Stephen’s Day

Primary Travel PeriodsFebruary: School break

April: Easter

Summer holidays: Six weeks in July/August; school starts early September

October: School break

Winter Holidays/Christmas: Ski/winter sun

Public School HolidaysSchools are generally broken up in terms, having six terms per year:

Term 1: Early September – late October

Term 2: Early November – late December

Term 3: Early January – mid February

Term 4: Late February – late March/early April

Term 5: Mid April – late May

Term 6: Early June – late July

Between each term, students receive a few days off in which families often plan travel.

8 Brand USA www.discoveramerica.com

International Visitation TrendsInternational Tourism Expenditures 2013, (US$ billion)Top 10 Spenders in International Tourism

0 20 40 60 80 100 120 140

China

United States

Germany

Russian Federation

United Kingdom

France

Canada

Australia

Italy

Brazil

(US$ billion)Source: UNWT, Tourism Highlights, 2014 Edition

International Arrivals to the U.S. 2013 (US$ million)Top 10 Countries Generating Travel to the United States

0 1 million 2 million 3 million 4 million

United Kingdom

Japan

Brazil

Germany

China(Excl. Hong Kong)

France

South Korea

Australia

India

Italy

Source: Office of Travel & Tourism Industries

UK & Ireland Market Information 2014 9

United Kingdom and Ireland Travel TrendsSpending Trends (Exports) – (Millions of U.S. Dollars) – United Kingdom

Year Total Travel & Tourism Exports

Travel Receipts Passenger Fare Receipts

Change (%) in Total Exports

2006 $13,310 $10,946 $2,364 -1

2007 $14,938 $12,120 $2,818 12

2008 $16,716 $13,155 $3,561 12

2009 $11,429 $8,884 $2,545 -32

2010 $11,305 $8,621 $2,684 -1

2011 $11,913 $8,908 $3,005 5

2012 $12,644 $9,486 $3,158 6

2013 $13,715 $10,416 $3,299 8

Change 2013/2006 $405 -$530 $935 3

Source: Office of Travel & Tourism Industries (2013)

Visitation Trends (Arrivals)Thousands of Visitors – United KingdomTotal Arrivals

0

1000

2000

3000

4000

5000

Visitor Trends - Thousands of Visitors – UK

2004 2005 20132012201120102009200820072006

Source: U.S. Department of Commerce, International Trade Administration; Office of Travel & Tourism Industries

10 Brand USA www.discoveramerica.com

Visitors – IrelandTotal Arrivals (thousands)

0

100

200

300

400

500

600

Visitor Trends - Thousands of Visitors – Ireland

2004 2005 20132012201120102009200820072006

Source: U.S. Department of Commerce, International Trade Administration; Office of Travel & Tourism Industries

Traveler CharacteristicsMain Purpose of Trip – United Kingdom

Main Purpose of Trip 2012 (percent) 2013 (percent) Point Change

Vacation/Holiday 63 64 0.4

Visit Friends/Relatives 18 18 -0.4

Business 11 11 -0.3

Convention/Conference/Trade Show 5 5 0.3

Education 2 - -

Health Treatment 0.1 - -

Religion/Pilgrimages 0.1 - -

Other 1 - -

Source: U.S. Department of Commerce, International Trade Administration; Office of Travel & Tourism Industries, United Kingdom Market Profile (2013)

UK & Ireland Market Information 2014 11

All Purposes of Trip – United KingdomPurpose of Trip 2012 (percent) 2013 (percent) Point Change

Vacation/Holiday 72 72 -0.5

Visit Friends/Relatives 28 29 1.9

Business 13 13 0.1

Convention/Conference/Trade Show 6 7 0.3

Education 3 - -

Health Treatment 0.4 - -

Religion/Pilgrimages 0.3 - -

Other 2 - -

Net Purpose of Trip

Leisure & Visit Friends and Relatives 85 84 -0.9

Business & Convention 17 17 -0.1

Source: U.S. Department of Commerce, International Trade Administration; Office of Travel & Tourism Industries, United Kingdom Market Profile (2013)

Select Traveler Characteristics – United KingdomSelect Traveler Characteristics 2012 2013 Change

Length of Stay in U.S. (mean nights) 14.2 12.9 -1.3

Length of Stay in U.S. (median nights) 10 10 0.0

First International Trip to the U.S. 14 14 0.3

Source: U.S. Department of Commerce, International Trade Administration; Office of Travel & Tourism Industries (2013)

Activity Participation While in the U.S. – United Kingdom

Activity Participation While in the U.S. 2012 (percent) 2013 (percent) Point Change

Shopping 88 88 -0.3

Sightseeing 81 80 -0.8

Experience Fine Dining 40 39 -0.7

National Parks/Monuments 36 37 1.2

Small Towns/Countryside 34 32 -1.8

Historical Locations 31 31 -0.4

Amusement/Theme Parks 27 30 3.1

Guided Tours 28 30 1.2

Art Gallery/Museum 28 29 0.7

Concert/Play/Musical 20 19 -0.8

12 Brand USA www.discoveramerica.com

Snow Sports 22 - -

Cultural/Ethnic Heritage Sites 15 - -

Nightclubs/ Dancing 13 - -

Sporting Event 12 - -

Camping/Hiking 5 - -

Casino/ Gambling 11 - -

Water Sports 8 - -

Golfing/ Tennis 5 - -

Visit American Indian Communities 4 - -

Hunting/ Fishing 3 - -

Environ./Eco. Excursions 3 - -

Other 2 - -

Source: U.S. Department of Commerce, International Trade Administration; Office of Travel & Tourism Industries

U.S. Destinations Visited (States, Cities and Regions) – United Kingdom

Visitation to U.S. Destinations/Regions

Market Share 2011 (%)

Volume 2011 (000)

Market Share 2012 (%)

Volume 2012 (000)

Market Share 2013 (%)

Volume 2013 (000)

REGIONS

South Atlantic 38.4 1,473 38.2 1,438 36.0 1,381

Middle Atlantic 32.7 1,254 31.3 1,178 34.0 1,304

Pacific 18.9 725 18.9 711 18.4 706

Mountain 14.7 564 14 527 14.0 537

STATES

New York 28.5 1,093 28.0 1,054 29.6 1,135

Florida 29.6 1,135 28.9 1,088 27.8 1,066

California 17.7 679 17.2 647 17.2 660

Nevada 11.4 437 10.8 406 ** **

CITIES

New York City 27.9 1,070 27.4 1,031 29.1 1,116

Orlando 20 767 19.4 730 19.8 759

Las Vegas 11.1 426 10.5 395 ** **

San Francisco 8 307 ** ** ** **

Los Angeles 9.4 361 ** ** ** **

**Estimate not shown due to sample size fewer than 400 for this year. Source: U.S. Department of Commerce, International Trade Administration; Office of Travel & Tourism Industries (2013)

UK & Ireland Market Information 2014 13

Transportation Used in the U.S. – United KingdomTransportation Types Used in the U.S. 2012 (percent) 2013 (percent) Point Change

City Subway/Tram/Bus 32 33 1.1

Company or Private Auto 31 32 0.6

Rented Auto 36 34 -2.2

Taxi/Cab/Limousine 42 43 0.9

Air Travel between U.S. Cities 23 22 -1.6

Ferry/River Taxi/ Short Scenic Cruise 13 13 0.4

Source: U.S. Department of Commerce, International Trade Administration; Office of Travel & Tourism Industries, Market Profile (2013)

Air Travel InformationTop 10 Foreign Airports (Passenger Traffic to/from U.S.) – Annual 201374.1 million Passengers, 40% of Total International Air Traffic

0

3

6

9

12

15

Vancouver (YVR)

Amsterdam (A

MS)

Incheon (ICT)

Mexico City (MEX)

Cancun (CUN)

Paris/de Gaulle (C

DG)

Frankfurt (FRT)

Tokyo Narita (N

RT)

Toronto (YYZ)

London

Heathrow (LHR)

(Mill

ions

)

Source: U.S. Department of Commerce, International Trade Administration; Office of Travel & Tourism Industries

14 Brand USA www.discoveramerica.com

Non-stop flights from the United Kingdom and Ireland to USA destinations:

Flights to Code Flights from Code Airline name

Atlanta ATL Dublin DUB Delta

Atlanta ATL London Heathrow LHR British Airways

Atlanta ATL London Heathrow LHR Delta

Atlanta ATL Manchester MAN Delta

Austin AUS London Heathrow LHR British Airways

Baltimore BWI London Heathrow LHR British Airways

Boston BOS Dublin DUB Aer Lingus

Boston BOS London Heathrow LHR British Airways

Boston BOS London Heathrow LHR Delta

Boston BOS London Heathrow LHR Virgin Atlantic

Boston BOS Shannon SNN Aer Lingus

Charlotte CLT Dublin DUB U.S. Airways

Charlotte CLT London Heathrow LHR U.S. Airways

Charlotte CLT Manchester MAN U.S. Airways

Chicago O’Hare ORD Dublin DUB Aer Lingus

Chicago O’Hare ORD Dublin DUB American Airlines

Chicago O’Hare ORD Edinburgh EDI United

Chicago O’Hare ORD London Heathrow LHR American Airlines

Chicago O’Hare ORD London Heathrow LHR British Airways

Chicago O’Hare ORD London Heathrow LHR United

Chicago O’Hare ORD London Heathrow LHR Virgin Atlantic

Chicago O’Hare ORD Manchester MAN American Airlines

Chicago O’Hare ORD Shannon SNN United

Dallas/Fort Worth DFW London Heathrow LHR American Airlines

Dallas/Fort Worth DFW London Heathrow LHR British Airways

Denver DEN London Heathrow LHR British Airways

Detroit DTW London Heathrow LHR Delta

Fort Lauderdale FLL London Gatwick LGW Norwegian Air

Houston IAH London Heathrow LHR British Airways

Houston IAH London Heathrow LHR United

Las Vegas LAS London Gatwick LGW British Airways

Las Vegas LAS London Gatwick LGW Virgin Atlantic

Las Vegas LAS London Heathrow LHR British Airways

Las Vegas LAS Manchester MAN American Airlines

Las Vegas LAS Manchester MAN Thomas Cook Airlines

Las Vegas LAS Manchester MAN U.S. Airways

Las Vegas LAS Manchester MAN Virgin Atlantic

UK & Ireland Market Information 2014 15

Los Angeles LAX London Gatwick LGW Norwegian Air

Los Angeles LAX London Heathrow LHR Air New Zealand

Los Angeles LAX London Heathrow LHR American Airlines

Los Angeles LAX London Heathrow LHR British Airways

Los Angeles LAX London Heathrow LHR United

Los Angeles LAX London Heathrow LHR Virgin Atlantic

Miami MIA London Heathrow LHR American Airlines

Miami MIA London Heathrow LHR British Airways

Miami MIA London Heathrow LHR Virgin Atlantic

Minneapolis MSP London Heathrow LHR Delta

New York (JFK) JFK London City LCY British Airways

New York (JFK) JFK London Gatwick LGW Norwegian Air

New York (JFK) JFK London Heathrow LHR American Airlines

New York (JFK) JFK London Heathrow LHR British Airways

New York (JFK) JFK London Heathrow LHR Delta

New York (JFK) JFK London Heathrow LHR Kuwait Airways

New York (JFK) JFK London Heathrow LHR Virgin Atlantic

New York (JFK) JFK Manchester MAN American Airlines

New York (JFK) JFK Manchester MAN Thomas Cook Airlines

New York (JFK) JFK Shannon SNN Aer Lingus

New York (JFK) JFK Shannon SNN Delta

New York Newark EWR Belfast International BFS United

New York Newark EWR Birmingham BHX United

New York Newark EWR Dublin DUB Aer Lingus

New York Newark EWR Dublin DUB American Airlines

New York Newark EWR Dublin DUB Delta

New York Newark EWR Dublin DUB United

New York Newark EWR East Midlands EMA Jet2

New York Newark EWR Edinburgh EDI United

New York Newark EWR Glasgow GLA Jet2

New York Newark EWR Glasgow GLA United

New York Newark EWR Leeds/Bradford LBA Jet2

New York Newark EWR London Heathrow LHR British Airways

New York Newark EWR London Heathrow LHR United

New York Newark EWR London Heathrow LHR Virgin Atlantic

New York Newark EWR Manchester MAN Jet2

New York Newark EWR Manchester MAN United Airlines

New York Newark EWR Newcastle NCL Jet2

New York Newark EWR Shannon SNN United

Orlando International MCO Dublin DUB Aer Lingus

Orlando International MCO Glasgow GLA Thomas Cook Airlines

16 Brand USA www.discoveramerica.com

Orlando International MCO Glasgow GLA U.S. Airways

Orlando International MCO Glasgow GLA Virgin Atlantic

Orlando International MCO London Gatwick LGW British Airways

Orlando International MCO London Gatwick LGW Virgin Atlantic

Orlando International MCO Manchester MAN Virgin Atlantic

Orlando Sanford SFB Birmingham BHX Thomson

Orlando Sanford SFB East Midlands EMA Thomson

Orlando Sanford SFB Glasgow GLA Thomson

Orlando Sanford SFB Newcastle NCL Thomson

Philadelphia PHL Dublin DUB U.S. Airways

Philadelphia PHL Edinburgh EDI U.S. Airways

Philadelphia PHL Manchester MAN U.S. Airways

Philadelphia PHL Glasgow GLA U.S. Airways

Philadelphia PHL London Heathrow LHR British Airways

Philadelphia PHL London Heathrow LHR U.S. Airways

Philadelphia PHL Shannon SNN U.S. Airways

Phoenix PHX London Heathrow LHR British Airways

Raleigh-Durham RDU London Heathrow LHR American Airlines

San Diego SAN London Heathrow LHR British Airways

San Francisco SFO Dublin DUB Aer Lingus

San Francisco SFO London Heathrow LHR British Airways

San Francisco SFO London Heathrow LHR United

San Francisco SFO London Heathrow LHR Virgin Atlantic

Seattle SEA London Heathrow LHR British Airways

Seattle SEA London Heathrow LHR Delta

Tampa TPA Glasgow GLA U.S. Airways

Tampa TPA London Gatwick LGW British Airways

Washington, D.C. (Dulles)

IAD Dublin DUB United

Washington, D.C. (Dulles)

IAD London Heathrow LHR British Airways

Washington, D.C. (Dulles)

IAD London Heathrow LHR United

Washington, D.C. (Dulles)

IAD London Heathrow LHR Virgin Atlantic

Washington, D.C. (Dulles)

IAD Manchester MAN United

UK & Ireland Market Information 2014 17

To launch –• Virgin launching new flight from Belfast to Orlando and Glasgow to

Las Vegas in 2015.

• Last month, Virgin Atlantic announced changes to its network, which included a new daily service between London Heathrow and Detroit, additional daily services to New York JFK and Los Angeles, additional summer services to Atlanta and San Francisco, a second daily service to Miami from London Heathrow in the winter season and a daily service from Manchester to Atlanta (press release attached).

• Icelandair announced it will commence flights from London to Portland, Oregon, from 19 May 2015.

Travel MarketsBrand USA has collaborated with a number of in-market media outlets in conjunction with our partners. These have included joint city guide campaigns for Rhythms of the South and Visit Austin with The Guardian, as well as a high impact multimedia campaign partnership with The Telegraph. The latter partnership is running over 6 months in two bursts - spring (April – June 2014) and fall (September to December). The following results have been taken from mid-campaign research.

Market intel from Rhythms of the South campaign with The GuardianQuestion: The USA is a fresh and exciting destination that provides unique holiday experiences

Strongly agree 52.4%

Agree 36.1%

Neither agree nor disagree 5.1%

Disagree 0.4%

Strongly disagree 6.0%

18 Brand USA www.discoveramerica.com

Question: Music and culture is a key factor in my decision to visit the USA

Strongly agree 42.2%

Agree 36.7%

Neither agree nor disagree 15.4%

Disagree 2.6%

Strongly disagree 3.1%

Market intel from Visit Austin campaign with The Guardian

Question: The USA is a fresh and exciting destination that provides unique holiday experiences

Strongly agree 54.9%

Agree 39.3%

Neither agree nor disagree 5.3%

Disagree 0.2%

Strongly disagree 0.2%

Question: Music and culture is a key factor in my decision to visit the USA

Strongly agree 32.2%

Agree 43%

Neither agree nor disagree 22.3%

Disagree 2.2%

Strongly disagree 0.2%

UK & Ireland Market Information 2014 19

Mid-campaign market research from The Telegraph campaign (Spring 2014)

43% said the campaign had introduced them to areas of the USA that they hadn’t previously considered.

79% of those who recalled the campaign would consider visiting the USA.

Question: To what extent do you agree with the following statements? (any agree)

The features on the USA [as part of the campaign]…Question: To what extent do you agree with the following statements? (any agree)

Increase my interest in the USA

as a holiday destination

Introduced me to areas in the USA

that I hadn’t previously considered

Encouraged me to take a holiday or short break in the USA in the future

Increased the likelihood that I will

recommend a holiday in the USA

to others

24%

28%

43%

34%

Question: You have said that you would consider visiting the USA in the next 2 years. What would you be interested in on a USA holiday?

0 20 40 60 80 100

Outdoor sports/activities

Family

Events & festivals

Shopping

Beaches

Arts & architecture

Food & wine

Great drives

History

Charming towns

Natural wonders

Pre-campaign Mid-campaign

20 Brand USA www.discoveramerica.com

Brand USA Traveler ResearchIn the summer of 2013, Brand USA launched its Global Market Intelligence program. As part of this program, Brand USA commissioned PhoCusWright, Inc. to initially conduct proprietary consumer research in 10 markets around the world (Australia, Canada, China, France, Germany, India, South Korea, Japan, Russia and the UK). Two additional markets were added in 2014 (Brazil and Mexico). Respondents were recruited from an online panel. For markets outside of North America, the results reflect responses from adults who travel outside of their continent for leisure. The objective of the Global Market Intelligence program is to gain insight into travelers’ perceptions of the USA, its competitors, as well as general travel behaviors and preferences.

UK & Ireland Market Information 2014 21

United Kingdom

Top 5 Motivations for Selecting Last Intercontinental Destination

Motivation % Selected

Local Lifestyle 46%

Cultural/Historical Attractions 46%

Beaches/Seaside Attractions 45%

Dining/Gastronomy 31%

Shopping 31%

Top 5 Strongest Impressions of the USA

Impression % Selected

Friendly 48%

Diverse 41%

Energetic 40%

Adventurous 38%

Open-minded 25%

Question: What motivates your desire to visit that destination? Select all that apply. For each of the following countries, select which characteristics, if any, describe it as a holiday destination. Select all that apply. Base: U.K. Intercontinental travelers (N=1,013) Source: Brand USA Custom Study

22 Brand USA www.discoveramerica.com

Destination Decision and Air Booking Windows for Next Intercontinental TripDestination Decision

3%

2%

5%

5%

6%

14%

9%

27%

29%

More than one year

6 to 12 months

3 to 5 months

1 to 2 months

3 to 4 weeks

1 to 2 weeks

2 to 6 days

1 day or less

I did/will not research/decide in advance

Question: How far in advance of your departure date did/will you decide on the destination? Please select one answer for each of the following questions. How far in advance of your departure date did/will you book the travel products for this holiday? Select one option from the drop-down box. Base U.K. Intercontinental travelers (N=1,013) Note: Totals may not add up to 100% due to rounding. Source: Brand USA Custom Study

Air Booking

0%

3%

6%

10%

21%

1%

33%

25%

More than one year

6 to 12 months

3 to 5 months

1 to 2 months

3 to 4 weeks

1 to 2 weeks

2 to 6 days

1 day or less/did notdecide in advance

UK & Ireland Market Information 2014 23

Top 5 Channels Used in Destination Selection for Last Intercontinental Trip

Channels % Selected

Websites via computer or laptop 61%

Personal recommendations from friends/family

33%

Information in printed travel guidebooks

26%

Websites/applications via tablet 24%

Printed publications articles and brochures

21%

Question: What sources of information did/will you use to select the destination for this holiday? Select all that apply. Base U.K. Intercontinental travelers (N=1,013) Source: Brand USA Custom Study

Countries travelers from the United Kingdom would most like to visit

24 Brand USA www.discoveramerica.com

Expected Household Travel Spend for Next Intercontinental Trip

Mean Median

$5,256 $4,274

10%

10%

19%

36%

24%

$10,000+

$7,500-$9,999

$5,000-$7,499

$2,500-$4,999

Less than $2,499

Question: What is the total amount you expect your household to spend on each of the following elements of this holiday? Enter a whole number without the currency Airline tickets/Lodging/Additional trip-related expenses, such as dining, local transportation, souvenirs and local tours. Base U.K. Intercontinental travelers (N=1,013) Note: Totals may not add up to 100% due to rounding. Source: Brand USA Custom Study (Conversion GBP to USD=1.583

Expected Travel Party Size of Next Intercontinental Tripof Next Intercontinental Trip

5+

4

3

2

1 21%

12%

5%

15%

47%

5+

4

3

2

1

Question: How many people in your household will go on this trip? Please count yourself as 1. Base U.K. Intercontinental travelers (N=1,013) Note: Totals may not add up to 100% due to rounding. Source: Brand USA Custom Study

UK & Ireland Market Information 2014 25

Months Traveled (April 2012 – April 2014)

December

November

October

September

August

July

June

May

April

March

February

January 14%

15%

17%

25%

23%24%

28%31%

26%

21%

15%

17%December

November

October

September

August

July

June

May

April

March

February

January

Question: During what month(s) did you take your N holiday(s)? Base: U.K. Intercontinental travelers (N=1,013) Source: Brand USA Custom Study

Destination Interest – Top 10 States

Colorado

Arizona

Nevada

Alaska

Texas

Washington

Hawaii

Florida

New York

California

44%

45%

43%

24%

15%

14%

12%

12%

11%

11%

Question: You indicated in a previous question that you have interest in visiting the U.S. sometime in the future. Which U.S. state(s) are you interested in visiting? Base: U.K. Intercontinental travelers with interest in visiting the United States (N=966) Source: Brand USA Custom Study

26 Brand USA www.discoveramerica.com

Likelihood of Travel to USA

16%

19%

24%

23%

14%

5%Not likely to ever visit

Maybe some timein the distant future

2-5 years from now

1-2 years

6-12 months

In the next 6 months

Question: When, if ever, are you likely to visit the following countries? United States of America. Base U.K. Intercontinental travelers (N=1,013) Source: Brand USA Custom Study

Net Promoter

45%

31%

19%

4%

1%I would bring it up to discouragepeople from travelling there

I would tell people negative thingsabout it if it were brought up

I would tell people neither positive nornegative things if it were brought up

I would tell people positive thingsabout it if it were brought up

I would bring it up torecommend as a destination

Question: United States of America: If a friend or relative were discussing a future holiday destination with you, which statement would best describe your attitude toward the following countries? Base: U.K. Intercontinental travelers (N=1,013) Note: Totals may not add up to 100% due to rounding. Source: Brand USA Custom Study

UK & Ireland Market Information 2014 27

Brand USA Highlights Results to Date and Key Programs for 2014 Brand USA is building on success.• Brand USA is fully deployed (consumer, co-op and trade outreach) in 10 key

markets that generate more than 75% of international visitation (Australia, Brazil, Canada, China, Germany, Japan, Mexico, New Zealand, South Korea and the United Kingdom).

• Every 1 percent increase in travel from these markets fuels the nation’s economy by generating 500,000 additional visitors and $1 billion in international visitor spend a year.

• Brand USA is working directly with the international travel trade in 20 top travel markets and is building the nation’s largest international representation network.

• Brand USA has marketing initiatives in more than 30 key markets.

• Brand USA has more than doubled its partnership program offerings—providing opportunities for organizations of all shapes and sizes and across various industries to participate in the U.S. marketing effort. These program offerings have helped Brand USA double its contributions from FY12 to FY13 and expand its partner base more than three-fold—from 87 core partners in FY12 to 339 in FY13.

• Brand USA has a long-term strategic plan in place to leverage the full momentum of its international marketing efforts.

Brand USA’s international marketing efforts are yielding strong results.• According to a study by Oxford Economics in February 2014, Brand USA’s

marketing efforts have had a 47:1 return on investment and are having a significant and positive impact on the U.S. international arrivals and the U.S. economy.

• As reported in the study, in the eight markets where Brand USA fully deployed its marketing initiatives during 2013 (consumer, co-op, and trade), international arrivals rose an incremental 1.1 million. Those additional visitors spent $3.4 billion on travel-related purchases, infused $7.4 billion into the economy in total spend (direct, indirect and induced), and supported 53,000 new jobs.

• The impact of Brand USA’s efforts extend well beyond the travel industry—supporting job growth in communities large and small across the United States.

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Brand USA enjoys demonstrated strong support from its partners.• Brand USA more than doubled its contributions revenue (from $60 million

in FY12 to $130 million in FY13)—quite an accomplishment for a start-up organization.

• During FY13, Brand USA formed partnerships with 339 organizations who contributed more than $130 million to the nation’s marketing efforts (compared to a core 87 partners in FY12).

• Brand USA has a 97% partnership retention rate.

• Key partnerships include millions of dollars of support from British Airways, the National Football League, Thomas Cook, the nation’s largest hotel companies, leading car-hire organizations, and key DMOs representing destinations in all 50 states, the District of Columbia, and the five U.S. territories.

• Brand USA has partnerships with all key segments of the travel industry. The top three segments are:

> Destination Marketing Organizations, which comprise the largest, or 51%, of Brand USA’s partnership base

> Travel Agents and Tour Operators, which comprise 14% of Brand USA’s partnership base

> Lodging organizations, which comprise 9% of Brand USA’s partnership base.

• Brand USA’s largest destination partner is NYC & Co.

> NYC is both a Founding partner and is a Diamond level partner—recognizing both NYC’s early support of the international marketing effort and its ongoing partnership with Brand USA at the highest contribution level.

Since its inception, Brand USA has significantly expanded each of its marketing efforts in each of the following three areas: • Consumer marketing and advertising

• Co-op marketing programs

• Travel trade outreach

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The Brand USA consumer marketing effort is a fully integrated campaign comprised of broadcast, out of home, print, and social media components. • In FY13, the consumer campaign ran in eight international markets during

peak travel planning periods: Australia, Brazil, Canada, Germany, Brazil, Mexico, South Korea, and the United Kingdom.

• During FY14, the campaign is running in 10 international markets: Australia, Brazil, Canada, China, Germany, Japan, Mexico, South Korea, Taiwan, and the United Kingdom.

• These markets generate nearly 80% of inbound visitation and spend in the United States.

• Based on 2013 visitation and spend levels, every 1 percent increase in travel from these markets will generate 500,000 additional visitors and $1 billion in international visitor spend a year.

• The call to action in the advertising campaign, “Discover this land like never before” and all digital/online components are in the native language of each market.

• The campaign is driving significant increases in intent to travel to the United States (12% in Canada, 14% in Brazil and the United Kingdom in the launch year).

• The consumer campaign is approximately 33% of the overall marketing budget.

The Brand USA partner co-op marketing effort is comprised of nearly 100 co-op program opportunities.• Co-op marketing programs enable Brand USA partners to amplify their

reach internationally and include opportunities to create a direct call to action, drive international travelers to their destinations, attraction, or travel brand—and measure the results of their efforts.

• Program categories include Brand USA Originals, Affinity Programs (OTAs and other travel distribution/publishers), and Market-Specific Opportunities.

> Brand USA Originals include: Discover America Global Inspiration Guides (language-specific guides), Marketing and Advertising Opportunities on DiscoverAmerica.com (Brand USA’s consumer website), Media Planning and Buying (coordinated efforts to amplify international advertising efforts), Custom In-Country Multi-Channel

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Programs (print, digital, video, email, radio and television), Media/PR and Travel Trade Outreach (online platforms that enable destinations, attractions and travel brands to connect directly with international journalists and travel professionals), USA Discovery Program (online training tool to educate the international travel trade to sell the diverse destinations and experiences available in the USA).

• The partner co-op marketing effort is approximately 53% of the overall marketing budget.

The Brand USA travel trade marketing effort is comprised of outreach with influential travel trade through international representation offices, training programs, familiarization trips, sales missions and USA Pavilions at influential travel shows. • Brand USA international representatives are extensions of the Brand USA

team in-market and fulfill a variety of functions ranging from traditional trade activities like trade shows and PR communications, to collaborating with U.S. embassies and consulates on projects of mutual interest in order to increase international visitation to the United States.

• In addition, these offices also facilitate ongoing trade and consumer outreach through co-operative marketing efforts with the international travel trade, conducting destination training programs, as well as organizing the nation’s first mega familiarization trips and sales missions that inspire the travel trade to book more trips to the USA.

• Brand USA has expanded its travel trade outreach to 20 markets. This outreach is managed out of 12 offices throughout Europe, the United Kingdom, Latin America, Australia, and Asia.

• These offices promote international travel to the United States from Australia, Austria, Brazil, Canada, China, Germany, Hong Kong, India, Ireland, Japan, Mexico and Central America, New Zealand, South Korea, Switzerland, Taiwan, and the United Kingdom.

• Once fully established, Brand USA will have international representation offices in 18 regions covering over 40 countries. Travel from these markets makes up 93% of inbound visitation to the United States.

• Brand USA is hosting USA pavilions at 24 key travel shows during 2014.

• The international travel trade marketing effort is approximately 14% of the overall marketing budget.

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About Brand USABrand USA is the public-private partnership responsible for promoting the United States as a premier travel destination and communicating U.S. entry/exit policies and procedures. Established by the Travel Promotion Act in 2010, the organization’s mission is to increase international visitation to the United States while working in partnership with the travel industry to maximize the economic and social benefits of travel. These benefits include creating jobs essential to the economy and fostering understanding between people and cultures.

About Black DiamondFounded in 1991, Black Diamond is an experienced full-service agency that has represented 25 United States destinations. Made up of six divisions, including Travel, Television, Events, Management, Digital and Luxury, the London-based company provides trade, marketing, communications, technology, creative, media planning and brand strategy services.

Award-winning Black Diamond brings a fresh and effective perspective, using a rigorous and analytical approach that employs planners and digital strategists alongside staff and consultants with decades of UK travel trade representation and public relations experience.

Contact

Guy Chambers, Managing [email protected]

Jonah Whitaker, Strategy [email protected]

Gerry Boyle, Travel Trade [email protected]

Sarah Barnett, PR & Communications [email protected]

Tel: +44 (0)20 7240 4071

Black Diamond15 Bedford StreetLondonWC2E 9HEUnited Kingdom

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