Spring Market Update. Korea Market Recap

Transcription

1 Spring Market Update Korea Market Recap March 5, 2014

2 2013 Highlights

3 Highlights of 2013

4 Korea Market Overview

5 Korea Market Overview Korea s economy is the 4 th largest in Asia and 15 th largest in the world 3.1% economic growth in 2013 with 4.4% growth projected in 2014 Exchange Rate: 1,056 won per US dollar Unemployment Rate: 2.9% Leap months (October ~ November): Koreans avoid getting married during leap months, which can have an impact on the honeymoon travel traffic to Hawai i

6 Korea Market Overview Dramatic increase in the supply of air seats to Hawai i by 3 carriers in recent years Korea market has become even more competitive Profitability of Hawai i sales is becoming less attractive to both airlines and travel agents The perceived lack of hotel rooms is becoming a serious concern among Korean travel trade Travel agents are looking for substitute destinations

7 Korea Market Overview Honeymoon travel patterns are shifting from package tours to FIT Other new luxury destinations are on the rise for the honeymoon market: Cancun, Maldives Huge new competition among honeymoon destinations Hawai i is relatively expensive compared to other long-haul honeymoon destinations

8 Korean Profile to Hawai i First time visitors (81.4%) vs. Repeaters (18.6%) O ahu (98%), Maui (25%), Hawai i Island (9.2%), and Kaua i (3.1%) True independent travelers (37.9%) vs Honeymooners (36.8%) 90% of Korean travelers stay in hotels, 3.5% stay in condominium properties 2013 (Jan. Oct.) Visitor Expenditures ($ Millions) Visitor Days 1,016,208 PPPD ($) 257.4

9 Total Outbound vs. Hawai i 171,506 (1.16%) 14,846,485 Total Outbound Hawai i Destination % Change Outbound TTL 14,846,485 13,736,976 Up 8.1% Hawai i 171, ,338 Up 11.8%

10 Airlift Status < Share by Airlines> <Air seats to Hawai i> Flights P KE051/ , ,000 77,000 82,000 KE053/ , , , ,000 OZ 232/231 28,000 61,000 97,000 72,000 HA460/459 55,000 74,000 96,000 96,000 TOTAL 313, , , ,000

11 Airlift Challenges & Opportunities Challenges: Low load factors on weekday flights Direct flights by Chinese carriers to Hawai i, resulting in a decrease in China-Incheon-Honolulu traffic Opportunities: Availability of competitive pricing Recovery of Korea s MCI market Continued growth in Busan and secondary markets

12 Korea Market Opportunities The number of Korean visitors to Hawai i continues to grow by double digit percentage increases each year In 2013, 171,506 Koreans visited Hawai i (11.8% increase) Steady increase in average length of stay 5N7D (5 night/7day) stays are most popular, with an increase in 6 night/8day tours, especially in the honeymoon market

13 Korea Market Opportunities Hawai i arrivals

14 Korea Market Opportunities Growing FIT & Repeater Market Huge potential to build a strong repeater market from Korea to Hawai i (only 18.6% are currently repeaters) Great brand image in Korea -- Hawai i continues to rank as one of the most desirable place to visit Korea s FIT market is steadily growing % of Koreans now prefer individual travel The number of Korean visitors to Hawai i from Busan and other 2nd-tier cities has also seen noticeable growth

15 Korea Market Opportunities Online Market and Penetration of SNS Over 90% of Koreans access the Internet daily via broadband, with over 50% of Koreans using the Internet to search for destination information The most popular social media platforms are blogs, with an astounding 65.7% of Korean Internet users using blogs on a daily basis Koreans are extremely dependent on domestic portals - Naver.com and Daum.net Travel arrangements & travel reservation services make up the biggest on-line transaction category in Korea

16 2014 Korea Marketing Programs

17 2014 Marketing Programs Korea Travel Mission May in Busan and Seoul Key marketing platform for Hawai i Five functions in three days: Market Briefing & MICE Market Update (New) Busan Networking Dinner (New) Travel Mart Media Mart (New) Aloha VIP Reception Seoul Busan

18 2014 Marketing Programs Korea MASTER FAM Tour March 20 28, visiting O ahu, Lana i, and Maui 16 key honeymoon, package and FIT agents from Seoul Korea MASTER FAM tour-busan will be held in Q3, visiting Hawai i Island, Kaua i, and O ahu Hawai i Master Online Training program will be launched with FAM participants

19 2014 Marketing Programs JTBC TV Project, Show-off your husband, and win a free trip to Hawai'i JTBC is the TV network of the JoongAng Media, Korea's largest media group Air time: Every Sunday 11PM Hawai i is the grand prize and will be mentioned repeatedly each week as a dream destination for couples

20 2014 Marketing Programs Airlift Promotions HTK will focus on supporting airlines to maintain healthy load factors, focusing on weekday campaigns Family Promotion offering special Hawai i packages to the employees of airlines and their families Mileage Promotion offering Hawai i at reduced bonus mileage costs (i.e fly to Hawai i with just 50,000 miles!) Credit Card Campaigns offering cash-back incentives to Koreans who fly to Hawai i during a campaign period in cooperation with major credit card companies Prestige Class Passenger Promotion

21 2014 Marketing Programs - MCI 2014 Hawai i MICE Education Seminars Hawai i has one of the highest levels of customer satisfactions, but not from TMCs Korean TMCs can come across as unreasonable in business dealings as they are not used to handling incentive groups on U.S. soil Hawai i is constantly being compared to Asian and other Southeast Asian MCI destinations HTK will invite industry leaders to conduct a seminar educating Hawai i partners about the Korean MCI market and what is expected from customers as well as TMCs

22 2014 Marketing Programs - MCI 2014 Hawai i MICE Incentive Program Production of 2014 Hawai i MCI Brochure, to be distributed to agents handling MCI groups in Korea MICE incentives will provide monetary support for groups of 15 or more from Busan, and 20 or more from Seoul

23 New Initiatives for 2014 Edu Tours Korean moms have an unwavering, interest in English education for their children feverish Korea s short-term overseas English study travel market exceeds $1.5 billion Edu Tour programs will be developed with select partners in Hawai i and possibly in conjunction with the University of Hawai i New Hawai i Edu Tours will position Hawai i as a safe and fun place for kids to study English and a great place for moms to shop & dine

24 New Initiatives for 2014 Wifelogger FAM Tours for High-end Market Wifelogger combines wife and blogger to describe the many affluent housewives who are active bloggers in Korea Work with major travel agents to promote Hawai i as a high-end leisure destination, using viral marketing through wifeloggers Conduct a wide range of social media and off-line promotions ensuring wifeloggers increasingly blog about Hawai i

25 New Initiatives for 2014 Social Media Promotions HTK launched a new Facebook channel to communicate with Korean travelers and provide real travel stories as well as travel tips on Hawai i Interactive Facebook consumer events and promotions are boosting social media buzz in Korea and interaction with loyal fans as well as prospective Korean travelers

26 Mahalo!