Italy Market Report. Visit Finland Country Representative. Sanna Tuononen November
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1 Italy Market Report Visit Finland Country Representative Sanna Tuononen November
2 Semiannual Report - ITALY Summer season 2017 and outlook for winter CONTENTS What factors have affected the results of the summer season, especially with regard to Finland? What are the prospects for the coming winter season? Other important things to pay attention to Trends and other travel related topics Facts and figures
3 What factors have affected the results of the summer season, especially with regard to Finland? Reasons for the increase/decrease in overall outbound travelling from your market? Outbound travelling from Italy decreased this summer season as more Italians spent their holidays in Italy than last year (21,2 % travelled abroad against 25,5 % in 2016). The average travel budget decreased also a little bit (838 against 869 in 2016). * Economic situation in Italy is still quite unsure and households watch out for their budgets. They do travel, but try to do it in a less expensive way. Neighbor markets are the most popular destinations and many Italians stay in Italy during summer holidays. There are no big chances in holiday periods. August is the main summer holiday month, even though July and September are also getting more busy. New target group for Finland could be active travelers looking for nature experiences with or without a city break. Also Millenials are interesting and potential new target group and are travelling more abroad than average Italians. *Source: Communicato stampa di Federalberghi
4 What factors have affected the results of the summer season, especially with regard to Finland? Reasons for the increase/decrease in travelling to Finland? Summer season (June-August) was stable in total, but there was a decrease during the main holiday month, August. Reasons for this is probably the frozen economic situation; Italians have tight budget for travelling and Finland is relatively expensive destination. Finland haven t had marketing campaigns in Italy for few years, and this might have influenced too. Coast and archipelago and Lakeland were successful destinations this summer. Demand for Lapland is increasing steadily, also in summer. Demand for Finland is changing little bit and more active holidays are requested. There is also interest for wildlife products (wild- and bear-watching). Demand is changing also concerning winter products as outdoor activities and Northern Lights are more asked (instead of only Santa Claus themed holidays). Global socio-political situation has changed the demand and there is more interest in Nordic destinations. Accessibility hasn t change and is not so good than competitors accessibility. Flight tickets are often more expensive for Finland than for Sweden or Norway and therefor the holiday package price goes up.
5 What are the prospects for the coming winter season? The overall outlook of travelling to Finland for the coming winter? The coming winter season looks good. The charter flights will operate as the year before and the demand seems to be good. Some of the most important Italian Tour Operators (e.g. Il Diamante, Blueberry Travel, Norama) are diversifying their Finland offering and have new winter products in their winter season catalogues. How attractive are round trips (visiting at least two Nordic countries or at least two destinations in Finland)? Round trips during the winter season are not so popular than during the summer season. As winter holidays are mostly spent in Lapland, the travelers stay in one place and do the excursions around. Some of them may combine 2 or more destinations in Finland (city break + nature/outdoor activities, e.g. Helsinki + Lapland during winter or Helsinki + Lakeland during summer).
6 What are the prospects for the coming winter season? The overall outlook of travelling to Finland for the coming winter? What trends should be considered in product development to increase the demand in the winter time? The price is an important part of the criteria when Italians are choosing their holidays. Finland products are quite expensive and sometimes even more than our competitors products (e.g. Norway s). To increase the demand, products could be packaged in a different way to reach new target groups. For example concerning existing winter products, it would be good to separate family destinations/products and couples destinations/products, which means also in practice with or without Santa Claus. Northern Lights and special, out-of-common, accommodations (e.g. glass igloos, aurora bubbles, Arctic TreeHouse) are big trends at the moment. Which target groups should be considered to increase the demand? As Finland is more expensive destination than some other markets, our most important target groups are well earning citizens who are looking for an easy and relaxing (exotic) winter holiday. Those can be families or couples. Millennials and prospects from Central and Southern Italy are also an interesting new target groups. According to published studies, in 2025, Millennial consumers will make up half of all travellers worldwide and they consider travel and holidays as a necessary element of their lives; they travel more and for a longer time. Their planning, decision to purchase and the purchase are made on the internet.
7 What are the prospects for the coming winter season? Marketing opportunities Cooperation with TOs is important concerning the winter season as still most of the products are bought through TOs. Main target group in winter time are families, and they are looking for a easy, packaged holiday. Language is also still an important factor and therefor a ready made packages with an Italian guide are preferred. Safety is also important criteria and tour operators guarantees are seen assuring. Famtrips are a good way of presenting the products to tour operators. Events are an efficient way of creating new professional contacts, but also updating the existing ones. Be Nordic is a good combination of B2B and B2C events and allow to have feedback both from professionals but also from consumers and potential end customers. As the event has been organized already 4 times, it has become a known event in Milano and the visitor figures are high. Finland s winter image will be promoted also during Pisa Book Festival (with Finland as Guest of Honor) and Moomin exhibition (Palazzo Blu in Pisa, ). There will be Visit Finland s videos and brochures to show the visitors Finnish winter atmosphere.
8 What are the prospects for the coming winter season? Marketing opportunities PR work is essential and creates Finland s image both for the winter season but also for the summer season. Winter image is strongly built around Lapland and Babbo Natale (Santa Claus). PR work is also essential for diversifying this winter image. There will be PR event in Milan ( ) and Symphony of Extremes-Finnish DNA to promote the coming winter season. Social media visibility is a must in Italy. Finland s competitors are very active in social media channels and in Italian language. Italians are one of the Europeans using the most the different online channels and therefor it is primordial tool for them in travel planning.
9 Other important things to pay attention to New distribution channels There is an interest and potential for Finland among some new tour operators. However, their knowledge of Finland as a destination is often quite weak and they need help in finding the partners/suppliers in Finland and in developing the product. Famtrips allow to introduce the destinations in Finland for new operators. Visit Finland s support is needed also in launching phase. Common campaigns or events are a good way of helping the operator to get their new Finland s products known. There is also potential among the existing tour operators programming Finland. They are looking for new products and are willing to sell Finland all year around. However, as 4 out of 5 Italian tourists make their travel planning and part of the purchases online, the role of digital marketing channels to promote Finland is crucial. Online channels Italians are very active in online channels and use different online tools for planning of their holidays. It would be important that Finland s visibility is assured in different social media channels (Facebook, twitter, Instagram etc.), travel blogs, travel portals, OTA channels, TO s online channels and blogs. The presence could be done through cooperation with the Tour operators and airline companies, PR work and paid visibility.
10 Other important things to pay attention to Competitors actions Norway is active in promotion and advertisement both for the summer season, but also for the winter season. Their summer destination image is and has been strong, but winter image is also getting better. Norway is using different online and offline channels. They are active in social media communication, but do also traditional advertisement (OOH and printed). Hurtigruten is very active and has advertising campaigns both online and offline. Norway s key message concerning summer promotion is nature destination and outdoors activities. Norway is working closely with the traditional sales channels. Island do promotion together with Iceland Air all year round. Island do active online advertisement, but uses also printed and OOH advertisement. Their main messages are around stopover products and nature activities (Northern lights). They do also communication with the campaign Meet the locals. Island doesn t have own office in Italy, but they are working actively with the traditional sales channels (TOs and agencies). They do invite most important Tour operators yearly to Iceland workshop.
11 Other important things to pay attention to Competitors actions Sweden closed their Italian office end of 2016 and has been less active since. They do continue promotion in online channels through social media visibility and PR work. The key message is around city breaks (Stockholm) and Swedish way of living. They do also promote nature destinations and Swedish archipelago. Visit Sweden doesn t cooperate actively with the tour operators and agencies. Nevertheless, some regions and Stockholm city tourist board are working with b2b contacts through famtrips and sales calls.
12 Other important things to pay attention to Trends and other travel related topics Free word The digital revolution has affected the tourism sector in Italy and has changed the consumer behaviour, from the moment of decision up to actual consumption of the travel product. Among all users who have Internet access: 91 % have booked on-line at least one product or service over the last 12 months and use search engines as their primary source when seeking or planning a holiday; 42 % use a mobile device (smartphone, tablet, etc.) to plan, book and obtain information; 68 % search on-line before choosing the place and type of holiday. Italian market reacts very slow to technological innovations and digitalization but, after this first phase, had a real "boom" and now smartphones are the most used devices for searching/buying in the tourism sector (27% of all the reservations). Italy suffered a strong economic slow down and the situation is still unsure. This influences the travel decisions and Italians are looking and comparing carefully different travel offers. Finland s (and Nordic countries ) image is expensive destination. Therefor, for Finland, the main potential target groups are Italian travellers having a better income and who are looking for a relaxing nature related holidays.
13 Facts and figures Nordic countries are more and more trendy and the image is good. Round trips in Nordic countries are popular in summer. The most known is the Hurtigruten product, which goes up Norwegian coast and then down through Finland. Also city/capital visits are popular and often travelers are combining 2-3 of them Overnights Sustainable travel and nature excursions are trendy and people are looking for wellbeing experiences from the nature. Spending per trip in Finland (2016) 537 Seasonality of Overnights % 44% Winter (11-04) Summer (05-10) +10% +5% Almost half of the overnights 2016 in Helsinki Area In Lapland biggest growth from previous year 44% 18% 12% 26% Finland (+9% growth from previous year) Helsinki Metropolitan Area (+6%) Coast and Archipelago (+18%) Lakeland (+12%) Lapland (+31%) Share of overnights by regions Sources: Visit Finland Statistics Statistics Service Rudolf VF Visitor Survey 2016 VF Market Report
14 Italian overnights in Finland High seasons: winter and summer 2017 Italy High winter season (12-02) 2017 Nights spent Change of nights spend, % WHOLE COUNTRY ,0 LAPLAND ,5 HELSINKI METROPOLITAN AREA ,4 COAST AND ARCHIPELAGO ,2 LAKELAND ,8 Italy High summer season (06-08) 2017 Nights spent Change of nights spend, % WHOLE COUNTRY ,8 HELSINKI METROPOLITAN AREA ,0 COAST AND ARCHIPELAGO ,7 LAKELAND ,0 LAPLAND ,8 Source: Visit Finland Statistics Service Rudolf, Statistics Finland
15 Italy Latest overnight figures Jan-Aug 2017 Nights spent Nights spent Jan-Aug 2017 Foreign Russian Federation Germany Sweden United Kingdom China and Hong Kong France United States Netherlands Japan Norway Italy Change of nights spend, % Total foreign 19,4 20,2 23,7 16,3 11,7 12,2 11,2 11,6 Italy 15,7 0,5 24,8 7,8 11,0 21,3-1,6-1,3 January-August 2017 Italy Nights spent Change of nights spend, % Jan-Aug 2017 Jan-Aug 2017 WHOLE COUNTRY ,0 HELSINKI METROPOLITAN AREA ,0 LAPLAND ,3 COAST AND ARCHIPELAGO ,8 LAKELAND ,8 Source: Visit Finland Statistics Service Rudolf, Statistics Finland
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