TEAM LONDON BRIDGE KEN KELLING

Transcription

1 TEAM LONDON BRIDGE KEN KELLING

2 TODAY Market Conditions What is Visit London doing? What should I be doing?

3 MARKET CONDITIONS

4 GLOBAL RECESSION Tourism statistics what can you rely on? Global recession means GLOBAL recession! The consumer is paramount.

5 LATEST INBOUND FIGURES Overseas visits as at December Total visits down by -17%, putting Year To Date for 2008 at -2% - North America -33% (-13% YTD) - EU15-12% (-2% YTD) - Accession 12-37% (+8% YTD) - Rest of Europe -7% (0% YTD) - Rest of World -21% (0% YTD) Spend -21%, (YTD +3%)

6 INBOUND FORECASTS forecast 2009 forecast Growth Range Growth Range Visits -2.7% -4.5% to -0.9% - 0.7% -1.7% to +3.3% Spend +2.5% +0.5% to 4.4% +2.4% +1.4% to +6.4%

7 IMPACTS ON VISITOR ECONOMY Scenario 1. Potential impact of recession Visitor economy loses 11bn, resulting in the loss of 114,000 jobs. Scenario 2. Potential impact of gradual decline in UK s competitiveness Visitor economy loses 9.7bn, resulting in the loss of 68,000 jobs. Deloitte The Economic Case for the Visitor Economy September 2008.

8 UK CREDIT CRUNCH RESEARCH Consumers becoming increasingly pessimistic Over half (54%) already feeling the pinch. Particularly among families, lower socio-economic groups and certain industries, eg Banking, Housing Already affecting lives; the majority are cutting down now (72%) or plan to soon (18%)...particularly on high frequency low cost areas: Food, Fuel, Clothes & sundries Entertaining, going out, little luxuries

9 CREDIT CRUNCH RESEARCH More significant purchases less likely to be current targets for cut backs partly because less frequent to start with: Holidays Major purchases (eg car, computer, washing machine) Moving house/ home improvements For many, holidays / breaks low on list of savings they become more important in times of downturn

10 CREDIT CRUNCH RESEARCH But here consumers will take more planned, considered and prudent choices with 4 key factors affecting whether take short break in the UK or not. 1. Core needs: holidays are increasingly a necessity not a luxury! 2. Individual predispositions: to the economy, UK/London as destinations 3. Barriers to UK heightened by downturn: cost of accommodation, subsistence, entertainment 4. Barriers to abroad - also heightened by downturn: flight costs, exchange rates, stability of tour firms/airlines

11 CREDIT CRUNCH RESEARCH Short breaks UK & London key targets: costly, savings easily identified; day trips replacing some short breaks Deals to enable trips to be taken/ experienced to the full; offers help combat the credit crunch, and fit belt tightening mindsets They want to see these in national and local press, but is also a popular route and could provide the prompt needed to make a spontaneous trip. Particularly powerful if tapping into key barriers and addressing costs of overnight packages, or going out/eating out packages itineraries.

12 CREDIT CRUNCH BUSTING Stimulating Enabling Enhancing Self justifying Catch eye Encourage when perhaps weren t considering More well off Provide access when can t afford Particularly families and less well off Provide a better experience Particularly empty nesters, women and more well off Post rationalisation that although spending money getting good deal E.G very cheap train fares, big events, interesting packages, hobbies / interests e.g. 2 for price of 1 admissions, loyalty tokens Upgrades, free spa treatments, meals at local restaurants Any promotions Grab eye spontaneously Often searched and when found then plan time When investigating / planning search for these extras...can serve as catalyst Have decided but helps convince..and afterwards can justify for themselves

13 CREDIT CRUNCH RESEARCH International research USA, Germany, France, Spain. Results and solutions - Best Of Britain and Ireland March 09

14 WHAT IS VISIT LONDON DOING?

15 ANNUAL MARKETING PLAN

16 RECOVERY CAMPAIGN

17 RECOVERY CAMPAIGN - UK

18 JOINT RYANAIR CAMPAIGN ITALY

19 JOINT RYANAIR CAMPAIGN SPAIN & GERMANY

20 NORTH AMERICA

21 RESULTS SO FAR UK 392,100 in economic benefit to the capital already Best ever bookings week through visitlondon.com Europe 22 Dec 12 Jan Ryanair report an uplift of 9,000 passenger bookings across Germany, Italy and Spain, attributable to the joint campaign. Estimated value of 3.5m incremental economic benefit to London so far, equating to a 24:1 ROI with another month and a half to go. US Campaign has just launched. Estimated value of campaign will be 50-60m.

22 FURTHER CAMPAIGN ANNOUNCEMENT? Consumers have told us Show us what s unique about London We want eye-catching opportunities and unique experiences Then how I can get them at good value?

23 WHAT SHOULD I DO?

24 WHAT SHOULD I DO? Get across the consumer research. Build strategy (single or joint) based on what it says. Concentrate on unique USPs with a supporting value message. Tell Visit London right NOW what makes your business unique. Watch out for announcement next week.