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Report on urban opportunities in England.
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Urban England: What are the opportunities?
Introduction
This report seeks to assist urban tourism businesses and destinations to identify and exploit opportunities to grow their businesses and markets.
It consolidates insights from the extensive range of primary research that VisitEngland conducts into a single report, designed explicitly for organisations with a urban tourism focus. The principal sources of VisitEngland research drawn upon within the report include:
• Great Britain Tourism Survey (GBTS)
• Day Visits Survey
• Annual Visitor Attractions Survey
• Tourism Business Monitor
• England Occupancy Survey
• Staycation Research
• Destination Brand, Communications and Satisfaction Tracker
• Digital Landscape Research
2
Volume and Value of Urban Tourism 2012
Domestic Overnight (all trips)
Domestic Overnight (holiday trips)
Tourism Day Trips
% of all trips
% of all trips
% of all trips
Trips (millions)
44 42 14 31 632 43
Nights (millions)
103 33 31 20 n/a n/a
Spend (£ millions)
8040 41 3,311 30 24,953 51
Urban destinations: What makes them different from other holiday destinations?
Summary: What makes urban destinations different from other holiday destinations? / 1
Overnight Domestic Trips
Trips to urban areas made up 31% (14.2 million) of the 46.0m overnight domestic holiday trips taken for holiday purposes in 2012.
Overnight stays at urban destinations peak in summer (Jul-Sept) but continue year round, attracting more business during winter months than other destinations (45% of urban trips are taken between Oct and Mar vs. 34% of all trips).
London dominates urban domestic holidays involving an overnight stay, accounting for over a quarter of trips.
Urban trips including overnight stays are more likely than other trips to:
• Be adult only (75% of urban trips vs. 66% of all trips)
• Involve shorter stays (71% of urban trips are for 3 nights or less vs. 53% of all trips)
• Involve train travel (26% of urban trips vs. 12% of all trips)
• Use hotels/ motels for accommodation (66% of urban trips vs. 40% of all trips)
The majority of overnight visitors come from outside the region, although the South West (35%), South East (28%) and Yorkshire & Humberside (26%) attract over a quarter of their visitors from within their own region.
Summary: What makes urban destinations different from other holiday destinations? / 2
Tourism Day Trips
Urban day trips follow the profile of all day trip takers in terms of social grade, children in party, distance travelled and time spend at the destination.
However, shopping, nights out and entertainment are more likely to feature during day trips to urban destinations.
As with overnight stays, London is the main destination for domestic urban day trips, accounting for 39% of visits.
Around 70-80% of urban day trippers come from within the same region, with this highest in the East of England, South West and North West.
31% urban
(14.2m)
Trips to urban areas made up 31% of the 46.0m
overnight domestic holiday trips taken in 2012
28
18
12
11
11
9
6
5
4
9
16
14
24
11
6
8
9
4
London dominates urban domestic holidays
involving an overnight stay, accounting for over a
quarter of trips
66
19
7
5
3
40
12
27
9
10
Hotel / motel
Friends /
relatives
Holiday camp /
camping /
caravanning
Other serviced
accommodation
Self-catering
66% of all domestic urban holidays involving an
overnight stay include hotels/ motels
Overnight stays at urban destinations peak in
summer (Jul-Sept) but continue year round
18
25
31 27
14
28
38
20
Jan-Mar Apr-Jun Jul-Sep Oct-Dec
Overnight Domestic Holiday Trips
Urban trips % All trips % Source: GB Tourism Survey
London
NW
SE
SW
Y&H
West Mids
East Midls
East
NE
Urban holidays including overnight stays are less
likely than other trips to include children
The length of stay at destinations tends to be shorter
for urban trips than trips to other destinations
In addition to cars, train is a popular method of
transport for urban holidays
Urban trips are also more likely than other trips to be
made by those from higher social grades
40
30
19
12
36
30
19
15
AB
C1
C2
DE
64
26
3
8
78
12
3
7
31
40
17
7
18
35
26
17
1 2-3 4-7 8+
Number of nights away
25% 34%
75% 66%
Urban trips All trips
With children
No children
Car
Train
Organised coach
Other
Urban trips % All trips % Source: GB Tourism Survey
Overnight Domestic Holiday Trips (Cont’d)
TOURISM DAY TRIPS to urban areas are more in line with the day trip average
The social grade of visitors making day trips to urban
areas is in line with the profile of all day trip takers
The distance travelled on a day trip to an urban
destination is in line with the average distance
travelled for day trips
14% of urban day trips have children in the party – in
line with the average day trip party composition
30
31
20
19
29
30
21
20
AB
C1
C2
DE
With children
38
24
13
25
38
24
12
26
52
19
17
12
50
21
19
10
Up to 20 miles
21-60 miles
Over 60 miles
Don’t know
3-4 hours
4-5 hours
5-6 hours
6+ hours
Urban trips % All trips % Source: GB Day Visits Survey
14 16
86 84
Urban
trips
All
trips
No children
Time spent at urban destinations is in line with the
average for all day trips
39
11
11
9
8
6
6
6
4
22
17
12
10
9
11
9
8
5
London
SE
NW
Y&H
W. Mids
SW
East
E. Mids
NE
London is the main destination for domestic urban
day trips, accounting for 39% of trips
23
12
12
9
9
5
4
3
3
3
3
25
8
9
10
6
4
6
7
5
3
3
Shopping, nights out and entertainment are more
likely to feature during day trips to urban destinations
Main activity
Urban trips % All trips % Source: GB Day Visits Survey
Tourism Day Trips (Contd.)
Visited friends/ family
Shopping
Night out
Went for a meal
Entertainment
Live sporting event
General day out/ explore
Outdoor leisure activity
e.g. walking, cycling, golf
Visitor attraction
Special public event
Special personal event
e.g. wedding
As an urban destination, where do my overnight visitors come from?
As an urban destination, where do my day trip visitors come from?
Source: GB Day Visits Survey Source: GB Tourism Survey
Where 2012 visitors come from … (%)
Region visited
NE NW Y&H E.
Mid W. Mid
E Lon SE SW
NE 13 7 7 7 4 8 6 3 3
NW 17 21 11 8 13 10 12 7 9
Y&H 26 14 26 13 11 8 12 7 4
East Mids
9 12 15 21 11 12 11 6 7
West Mids
8 13 10 6 16 9 14 10 8
East 6 8 7 12 8 22 11 9 8
London 7 10 9 10 10 7 4 9 9
SE 7 9 8 14 15 14 15 28 18
SW 7 7 6 9 13 9 15 20 35
Where 2012 visitors come from … (%)
Region visited
NE NW Y&H E.
Mid W. Mid
E Lon SE SW
NE 74 2 2 1 - - 1 - 1
NW 11 83 5 2 4 - 1 1 1
Y&H 4 6 80 4 2 - 1 1 -
East Mids
1 2 6 80 7 4 3 2 1
West Mids
1 3 2 2 73 1 1 2 3
East 3 - 1 5 4 85 5 7 -
London 3 1 1 2 4 5 78 9 4
SE 2 1 1 3 2 4 8 73 7
SW 1 1 1 1 3 1 2 4 84
What are the main overnight urban holiday destinations?
Annual Average Overnight Holiday Trips (millions)
2006-8 2007-9 2008-10 2009-11 2010-12
London 3278 3398 3640 3703 3925
Manchester 674 786 863 906 878
York 600 670 801 863 856
Birmingham 475 531 509 547 560
Liverpool 246 308 395 471 548
Leeds 308 350 397 446 479
Bristol 351 374 401 428 403
Nottingham 276 330 344 365 388
Newcastle upon Tyne 385 395 428 410 387
Norwich 319 309 349 378 385
Source: GB Tourism Survey
Urban destinations: what are the emerging trends in overnight holiday trips?
Summary: What are the emerging trends in overnight holiday trips?
Overnight trips to urban areas have been growing steadily since 2007
Online booking of urban trips is rising in line with trips overall, with well over half (56%) of urban holidays now booked online. This has risen from a third in 2006. Urban trips are more likely to be booked online than visits to other types of destination.
Overnight urban trips are more likely to be made by AB social grades and representation of this audience has been increasing since 2007, consistent with the proportion of all holidays taken by this audience.
Overnight urban trips are significantly shorter in duration than the average domestic holiday, with 71% staying for 3 nights or less (vs. 53% of all trips).
40.4 41.3 39.8
47.0 43.5
46.2 46.0
11.1 10.2 11.0 12.8 12.2 13.1 14.2
0
10
20
30
40
50
60
2006 2007 2008 2009 2010 2011 2012
Overnight trips to urban areas have been growing steadily since 2007
25 29
31 35
39 42
47 33
36 40
46 50 49
56
0
10
20
30
40
50
60
70
2006 2007 2008 2009 2010 2011 2012
All trips Urban trips
Online booking of urban trips is rising in line with trips overall, with well over half of urban holidays now booked online
No. of overnight holidays (millions)
Source: GB Tourism Survey
% of overnight holidays booked online
39 34
37 38 38 38 40
32 34 35 34 32 32
30
16 18 16 16 18 18 19
13 14 12 12 12 13 12
0
10
20
30
40
50
2006 2007 2008 2009 2010 2011 2012
Urban Holidays (%)
AB C1 C2 DE
32 32 33 33 36 36 36
30 31 32 32 30 31 30
20 20 18 18 19 19 19
18 17 17 17 15 14 15
0
10
20
30
40
50
2006 2007 2008 2009 2010 2011 2012
All Holidays (%)
Overnight urban trips are more likely to be made by AB social grades and representation of this audience has been increasing since 2007.
Source: GB Tourism Survey
Overnight urban trips are significantly shorter in duration than the average domestic holiday, with 82% staying for 3 nights or less
79 79 80 82 82 82 83
21 21 20 18 18 18 17
5 5 4 4 3 4 4
0
25
50
75
2006 2007 2008 2009 2010 2011 2012
Urban Holidays (%)
1-3 nights 4-7 nights 8+ nights
63 62 63 63 64 65 66
37 38 37 37 36 35 34
6 6 6 5 5 5 5
0
25
50
75
2006 2007 2008 2009 2010 2011 2012
All Holidays (%)
Source: GB Tourism Survey
What are the attitudes of the public and businesses?
Summary: What are the attitudes of the public and businesses?
City breaks are established territory, but consumers often focus on European options, so more needs to be done to raise the profile of English cities other than London. To appeal, urban destinations should focus on their individuality and authenticity, as generic English city breaks are not sufficiently compelling in their own right.
Urban areas are not top of mind for romantic breaks, but can provide a compelling romantic option when focused on ‘good living’ (nice accommodation, good food and a variety of activities to engage in).
A few barriers to urban trips need to be tackled: perceptions of poor value for money, a less friendly welcome and less pleasant and safe environment. However, ease of access is a key strength and visitors take advantage of the broad range of activities available at urban destinations, with sightseeing complimented by relaxing and social activities.
Urban businesses are investing in their product and service in order to attract more custom:
• 20% of urban accommodation businesses are investing in staff training (vs. 9% of all businesses)
• 45% of urban accommodation businesses are investing in facilities and fittings (vs. 40% of all businesses)
• 35% of urban attractions offer corporate events (vs. 25% of all attractions)
• 45% of urban attractions offer venue hire (vs. 38% of all attractions)
Urban attractions are also investing in social media with 60% on Facebook, 49% on Twitter and 37% publishing e-newsletters.
Within urban attractions, there is a trend towards replacing permanent staff with unpaid volunteers. It will be important to train and motivate these volunteers in order to maintain standards and meet visitor expectations.
English cities/ large towns can appeal, but individuality and benefits need to be called out
Romantic heritage city breaks are
not top of mind, but conjure up a
compelling option.
City breaks are established
territory, but English cities are not
always top of mind
• The idea of a break that can be enjoyed
year-round works well
• Eating out is one of main attractions of
such a break.
• Accommodation is a key element
• Emphasize a variety of activities rather
than focus on niche interests.
• European cities often preferred…
• …and a generic English city breaks is not
sufficiently compelling in its own right
• …so it is important for English cities to
focus on their individuality
• City breaks appeal more to post family, or
those with older children
55
53
46
40
41
37
Urban trips % All trips %
57
61
60
55
67
70
68
61
Urban trips % All trips %
Visitors to urban destinations look for a broad range of activities, with sightseeing complimented by relaxing and social activities
Activities on overnight holiday stays at urban destinations
Sightseeing on foot 3.9m
Just relax 2.7m
Short walk 2.1m
Centre based walking 1.9m
Visiting a museum 1.8m
Sightseeing by car 1.3m
Activities on tourism day trips to urban destinations (millions of trips)
Go for a meal 163m
Go for a drink 138m
Go to the cinema 49m
Go to a fast food outlet 41m
Just relax 30m
Centre based walking 28m
Sightseeing on foot 24m
Ease of access is a key strength of urban destinations over alternatives
…% rating excellent / good
Source: VE Brand, Communications and Satisfaction Tracker Source: GB Tourism Survey / GB Day Visits Survey
…% rating excellent / good
Lowest ratings for urban destinations compared with other types of destination mainly relate to the environment and value
Easy to get to by
public transport
Ease of getting around
by public transport
Availability of festivals,
music, sporting &
cultural events
Clean and tidy
environment
Place I feel safe and
secure
Welcoming and friendly
Value for money
Urban businesses are more focused on discounting & staff training than other businesses
Should businesses be investing in staff more?
Source: Survey of Visits to Visitor Attractions
45
22
24
20
40
22
17
9
Urbanaccommodation
Allaccommodation
Facilities / fittings
Marketing
Discounts and deals
Staff training
Website
Retail shop
Public events
Member scheme
Café / restaurant
Venue hire
Corporate events
78
71
62
44
46
45
35
79
68
57
56
51
38
25
Urbanattractions
All attractions
Urban attractions are less likely to offer member schemes,
instead placing more focus on venue hire and corporate
events
FT permanent
FT seasonal
PT permanent
PT seasonal
Unpaid volunteers
8
4
9
5
26
7
5
8
8
25
As unpaid volunteers replace full-time staff, we must
remember to train and motivate these volunteers.
% down
Urban visitor attractions offering… (2012 %)
11
1
10
3
5
10
3
8
5
5
Urban accommodation businesses intending
to increase investment in 2013 (%)
Urban visitor attraction change in employees
(2011-2012)
Source: Survey of Visits to Visitor Attractions
% up
Source: Tourism Business Monitor
Urban attractions are leading the way with use of social media
60% are on Facebook
49% are on Twitter
37% have e-newsletters
19% operate online blogs
12% have a mobile-optimised website
8% have mobile apps
Urban Visitor Attractions (2012)
All Visitor Attractions (2012)
Source: Survey of Visits to Visitor Attractions
55% are on Facebook
45% are on Twitter
29% have e-newsletters
16% operate online blogs
10% have a mobile-optimised website
7% have mobile apps
What are the trends affecting us all?
Summary: What are the trends affecting us all?
Staycations look set to stay for the foreseeable future, with Empty Nesters leading trip growth
The 2012 Olympics, Paralympics and Diamond Jubilee events have further strengthened the appetite for holidaying in the UK
Day trips from home remain an important opportunity with the notable recent decline in holiday trips abroad and an increasing societal shift towards ‘all things local’.
The economy continues to impact upon us all, and as a result free attractions are proving popular. However, there are some signs of improved consumer confidence and indications of an increasing willingness of banks to lend
Overall, charging attractions saw a drop in visitor numbers in 2012, but were able to maintain revenue through price increases
There is strong evidence that businesses with the ability and confidence to invest in these tough times are reaping rewards
Exploiting the digital revolution is key to the success of tourism businesses:
• Provision of online booking facilities is rising rapidly
• Seeking information via mobile devices is now the norm, both at home and ‘on the hoof’
• Google is very often the first port of call
There are some societal shifts taking place in the background:
• An ageing population , but which is staying active longer
• Emerging traveller parties: extended families and singles travel
• Generation Y travellers who expect personal, tailored experience and who book late
Staycations look set to stay for the foreseeable future
Day trips from home are a major segment of the market
Overnight stays in England remain at the high levels observed in 2009…
Older age groups lead growth in trips
Average annual % change 2007-12
ALL HOLIDAYS +2.6%
Pre-nesters +2.1%
Families +2.4%
Older independents +3.2%
Empty nesters +3.0% The 2012 Olympics, Paralympics and Diamond Jubilee have increased appetite for holidaying in the UK: by instilling pride in our country and highlighting the diversity of destinations.
One in five Brits say the events of 2012 make them more likely to take holidays in England in future.
“I think it has lifted the spirits of the domestic market and makes them want to do more things”
But you cannot assume that people know where your destination is or how long it takes to reach you: geographical awareness is often limited
2011
1,306m
2012
1,467m
Tourism Day
Trips
There is an opportunity to attract the local market, especially with high petrol prices and increasing pride in all things local.
… perhaps not surprising given the sharp decline in visits abroad by GB residents since 2008.
35%
33%
28%
37%
40%
39%
33%
44%
42%
41%
32%
42%
44%
39%
35%
44%
46%
41%
33%
48%
12%
21%
26%
15%
13%
24%
29%
16%
13%
23%
28%
16%
13%
24%
28%
16%
12%
22%
29%
15%
52%
46%
46%
48%
47%
37%
38%
40%
45%
36%
40%
42%
43%
37%
37%
40%
42%
38%
39%
37%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
GB Outbound GB Domestic 4+ nt trips GB Domestic Hols - 1-3 nt trips
Free attractions are proving popular during the recession, but price increases have enabled charging attractions to maintain revenue
Two important benchmarks for visitor
attractions:
Adult admission charges increased by
average of +4% in 2012
However, gross revenue only increased by
average of +1% in 2012:
• +3% amongst free attractions
• No change for paid attractions
Similar to recent years
• 5% in 2011
• 5% in 2010
• 4% in 2009
This decline in revenue is explained by a
drop in visitor numbers in 2012.
Source: Visits to visitor attractions survey
Lower than in recent years
• 5% in 2011
• 5% in 2010
• 8% in 2009
8
2 1
-*
3 3 2
5
3 3
-1
Annual % change in visits
’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ‘12
This was driven by attractions charging for
admission, where there was a 3% decline in
visits, contrasting to a 2% increase
amongst sites with free entry.
The economy continues to impact on us all, although signs of improved confidence.
Those investing in tough times are reaping rewards, exploiting the opportunity to build loyalty
The Banking Taskforce’s on-going SME Finance Monitor reports:
9% of SME’s in Q4 2012 reported making applications for new/renewed loan or overdraft
facilities in past year
71% of all applications successful (49% for first timers)
43% of prospective applicants are now confident that their bank would agree to a request, up from 33% in Q3 2012.
Only half of SMEs aware of initiatives such as Funding for Lending and the National Loan Guarantee Scheme.
Attractions increasing marketing spend have recently seen stronger growth in visits and revenue:
Our Tourism Business Monitor is full of anecdotal evidence of businesses which have seen the benefits of investing in facilities, products and staff.
6967
7072
74
6461
58
63
75
70
6664656665
6059
53
5958596160
5754
4947
5452
4643
40
49
5657
6362
55
65
Feb-13Sep-12Feb-12Sep-11Mar-11Sep-10Feb-10Oct-09Jun-09Feb-09Oct-08
Very concernedabout it
Concernedabout jobsecurityWorried aboutmaking endsmeetUK one of mostaffected
Q1. To what extent do you personally agree or disagree with the following statements about the economic downturn or credit crunch? Base: All respondents (1000+) Differences of c 5% are significant
Level of agreement with each statement% ‘Strongly agree’/ ‘Slightly agree’ with each statement
Case Study: Bodmin Jail
Our business really is exactly what it says on the tin – we’re an all-weather, family friendly
day out.
Although we’ve benefitted from the wet weather recently, as people can come and spend the
day here out of the rain, we’re constantly evolving and improving our current offer, which
helps us drive repeat visits. For example, this winter we are excavating the lower levels of
the jail, which all helps keep our business fresh and means there are always new things for
visitors to see.
We have developed additional revenue streams, such as our function suite, which does a
good business in weddings, birthdays and other events, in addition to our paranormal work.
We support everything through a concentrated marketing campaign via newspapers,
leaflets, websites, and tap into local groups, such as rotary groups and Freemasons.
5-10% increase in visitor numbers in 2012 year to date compared the same
period in 2011.
Marketing spend in 2012
2011 / 12 change in… Up Down
Total visitor admissions +3% -1%
Local visits +6% -14%
Overseas visits +8% +11%
Gross revenue +5% -6%
How can tourism businesses exploit digital revolution?
People are constantly sharing their thoughts and images of your business or destination with others on social networking and online review sites. Are you proactively portraying yourself well on digital channels – your website, social media? Are you dealing with dissatisfied visitors effectively?
Holiday inspiration is now continual, year round.
Mobile has become massive
• In 2009 many suggested “one day we will use our phones when we are on trips to source info.” By 2012 this has become a truth across many lifestages. Now regularly used for maps / directions, opening times / ticket prices, Plan B’s / alternatives, local restaurants / bars / entertainment
• Indeed, for pre-families this can be THE source of info, through Apps e.g. Around Me, Taste Card
Google is usually the first port of call
• Either a very general search on the first visit e.g. mood, general location, day trip
• Or to find very specific type of holiday or location
Use picture imagery where you can
• The influence of pictures cannot be overstated
• Pictures enable the viewer to place themselves in the mood, feeling or emotions of a place
• People-focussed pictures are most powerful
Source: Digital Landscape Research
The background is an ageing population, but which is staying active much longer
And a set of emerging traveller types, for example…
Over 60s will hold 50% of world’s wealth in 10 years. They want to keep the body and mind stimulated and meet like minded people.
Emergence of extended families and singles travel: you need flexible rooms, spaces, ticketing etc.
Generation Y born since 1982. They expect personal, tailored visit experiences and are, spontaneous / late bookers.
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