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A NEW MARKET SCANDINAVIA AND THE NORDICS A NEW MARKET SCANDINAVIA AND THE NORDICS MARKET INSIGHTS AND HOW WE COULD BETTER SYNERGISE TRADE ACTIVITY AND GOVERNMENT SUPPORT IN NON-CORE SA TOURISM MARKETSPanel discussion Derek Houston –Houston Travel Marketing Services Per Caroe –Kenya Airways Copenhagen Ptik M i SAA C h Patrick Menzies – SAA Copenhagen Rung Button Inspirations Travel & Tours Rung Button - Inspirations Travel & Tours Pelle Landstedt Propel Africa Pelle Landstedt Propel Africa Collin Thaver Albatros Travel Collin Thaver Albatros Travel

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Page 1: A NEW MARKET – SCANDINAVIA AND THE NORDICS – MARKET ... · A NEW MARKET – SCANDINAVIA AND THE NORDICS – ... many competitors fighting for the travelling public Comparison

A NEW MARKET – SCANDINAVIA AND THE NORDICS –A NEW MARKET SCANDINAVIA AND THE NORDICS MARKET INSIGHTS AND HOW WE COULD BETTER SYNERGISE TRADE ACTIVITY AND GOVERNMENT

SUPPORT IN NON-CORE SA TOURISM MARKETS”SU O O CO S OU S S

Panel discussionDerek Houston –Houston Travel Marketing ServicesPer Caroe –Kenya Airways CopenhagenP t i k M i SAA C hPatrick Menzies – SAA CopenhagenRung Button Inspirations Travel & Tours Rung Button - Inspirations Travel & Tours Pelle Landstedt Propel Africa Pelle Landstedt Propel Africa Collin Thaver Albatros Travel Collin Thaver Albatros Travel

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NORDIC MAPNORDIC MAP

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COUNTRY STATISTICSCOUNTRY STATISTICS

SIZE POPULATION GDP ppp UNEMPLOYMENT GATEWAYS

km2 dollars per capita April 2013/14 in %

S d 450 000 9 196 000 58 164 8 1 3Sweden 450.000 9.196.000 58,164 8.1 3

Denmark 43 094 5 475 000 58 930 7 0 3Denmark 43.094 5.475.000 58,930 7.0 3

Norway 385.155 4.752.000 100.819 3.5 6

Finland 338.145 5.308.000 47.219 9,4 1

Estonia 45.227 1.340.000 18,478 8.7 1

Lith i 65 200 3 369 000 14 478 11 5 1Lithuania 65.200 3.369.000 14,478 11.5 1

Latvia 64.589 2.270.000 13,947 11.6 1

Iceland 103.000 316.000 45,263 1,

1.494.41TOTAL

1.494.410 32.026.000 16

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ARRIVAL STATISTICS FROM NORDIC COUNTRIES ARRIVAL STATISTICS FROM NORDIC COUNTRIES 2012 AND 20132012 AND 2013

• 2012 2013Sweden 40856 44125 8%Denmark 25149 26245 4,0%,Norway 23156 24736 7%Norway 23156 24736 7%Finland 10203 10680 4 5%Finland 10203 10680 4,5%

Total 99364 105786 Total 99364 105786 + 5000 from Baltic states 110 000 Grand total+ 5000 from Baltic states =110,000 Grand total

Kenya arrivals 2013Kenya arrivals 2013• Sweden 13087 Norway 10005 Denmark 9771 Finland 4675y• Total 37538

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LONG HAUL MARKET EX NORDICS

many competitors fighting for the travelling publicmany competitors fighting for the travelling publicComparison of the main overseas competition 2013Comparison of the main overseas competition – 2013statsstats

USA 1 003 000 i it f DK/NO/SE– USA, 1.003.000 visitors from DK/NO/SE– Thailand, 800.000 visitors from DK/FI/NO/SE– Dubai, 165.000 visitors from DK/FI/NO/SE –./ / /– Canada, 117.000 visitors from DK/FI/NO/SECanada, 117.000 visitors from DK/FI/NO/SE

Australia 93 400 visitors from DK/FI/NO/SE – Australia, 93.400 visitors from DK/FI/NO/SE S th Af i th 5th l g t k t • South Africa the 5th largest overseas market

• This shows there definitely is a market for South Africa and the potential to grow in Scandinaviathe potential to grow in Scandinavia

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01 THE NORDIC01: THE NORDICTRAVEL MARKETALTHOUGH THE NORDIC COUNTRIES ARE SPARSELY POPULATED, WITH ONLY 25 MILLION INHABITANTS,

TRAVEL MARKET, ,

THE NORDIC REGION IS A HIGHLY IMPORTANT MARKET FOR OUTBOUND TRAVEL, MAKING IT THE THIRDLARGEST OUTBOUNDMARKET IN EUROPE.

They are big spenders

• Spend more than USD 20 billion on travelling per annum.Spend more than USD 20 billion on travelling per annum.• Travel spending per capita is among the highest in the world.• Nordic countries far surpassing spending from Germany and England.

They are frequent travellers

• The high spending power facilitates frequent travelThe high spending power facilitates frequent travel• Almost nowhere in the world do people travel abroad as often as the Nordic tourists.

They journey outside EuropeThey journey outside Europe

• Currently more than 18 % head beyond the borders of Europe per annum – Thailand & USA big• Travel outside Europe is in search for leisure and culture Growing• Travel outside Europe is in search for leisure and culture. ‐ Growing

They plan more holidays

Statistics show that the Nordic tourists are planning more holiday travels in 2014 and beyond.

The world’s best touristsThe world’s best tourists

A recent research study revealed that Nordic tourists are the best tourists in the World – basedti i fi diff t

2012

on ratings in five different areas:

Categories:2012.

1. Willingness to speak the local language2. Polite and approachable

ll l l l3. Willingness to adapt to local culture4. Willingness to try the local cuisine5. Give a generous tip

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AIR ACCESS TO SOUTH AFRICAAIR ACCESS TO SOUTH AFRICA

KQ/AF/KLQ/ / SAA SAA Lufthansa/Swiss/ British Airways British Airways Gulf carriers Turkish Turkish

E hi i Ethiopian

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2014/08/27

AIR FRANCE AND KLM IN NORTH EUROPEAIR FRANCE AND KLM IN NORTH EUROPESummer schedule 2014Summer schedule 2014

Trondheim

Oslo (3 daily to Amsterdam)

ÅlesundHelsinki

(5 d il t P i● (3 daily to Paris,

6 daily Amsterdam)Bergen

Ålesund (2 daily to Amsterdam)

●Stockholm (3 daily to Paris,

5 d il t A t d )

(5 daily to Paris, 3 daily to Amsterdam)

●Stavanger

g(5 daily to Amsterdam) ●

●●

●5 daily to Amsterdam)

Linköping●●

Sta a ge(5 daily to Amsterdam

2 daily to Paris) ●● ●

● (3 daily to Amsterdam2 daily 7JUL-31AUG)

Göteborg●●Sandefjord

(2 daily to Amsterdam)

●●

●Göteborg

(3 daily to Paris, 5 daily to Amsterdam, 1 daily

( t S t t L )Aalborg

Kristiansand (2 daily to Amsterdam) ● (except Sat to Lyon)

Copenhagen

g(3 daily to Amsterdam)

Billund Copenhagen(5 daily to Paris,

6 daily to Amsterdam)

(1 daily to Paris, 5 daily to Amsterdam)

6 daily to Amsterdam)

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STAR ALLIANCE NORDIC & BALTIC CONNECTIONS

In cooperation with our Star Alliance Partners Scandinavian Airlines & Lufthansa SAA offers multipleLufthansa, SAA offers multiple connections to London, Frankfurt & Munich from:Copenhagen & Billund in DenmarkCopenhagen & Billund in DenmarkBergen, Oslo & Stavanger in Norwayg g yGothenburg & Stockholm in SwedenHelsinki in FinlandHelsinki in FinlandTallinn in EstoniaRiga in LatviaVilni s in Lith aniaVilnius in Lithuania

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LONG HAUL MARKET PROFILE EX NORDICSLONG HAUL MARKET PROFILE EX NORDICS

Long Haul travel is on the increase where Thailand and the USA are by far the biggest. A couple of reasons for this:

1. DK and SE have long standing cultural ties with Thailand. A small example of this is the start up of Thai Airways which was largely example of this is the start up of Thai Airways which was largely aided by SAS executives and operational staff. Even Thai’s “motto” y pSmooth As Silk is a tribute to SAS

• Thai Airways offer 10 weekly from CPH and daily from STO and OSLOSL

• Finnair offer 10 weekly flights HEL BKK • Finnair offer 10 weekly flights HEL-BKK • Norwegian (LCC) offer 4 weekly OSL BKK 3 weekly STO BKK and • Norwegian (LCC) offer 4 weekly OSL-BKK, 3 weekly STO-BKK and

from OCT14 2 weekly CPH-BKK. y• the entry of EK and QR has put enormous pressure on all Asian

destinations – all in all more capacity and lower fares2. SAS, Norwegian, AC, AY, DL & UA all have non-stop services to the

USAUSA3 seasonal charters to some Caribbean destinations 3. seasonal charters to some Caribbean destinations.

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03: THE NORDIC03: THE NORDICECONOMIC SITUATION• The level of income in the Nordic countries is generally

ECONOMIC SITUATIONhigh

R d hi h t f i i t• Record‐high percentage of income is spent ontravelling.

• Nordic tourists’ per capita travel spending is among thehighest.highest.

• They travel abroad more frequently than other touristsin the world.

• The research also shows that after Germany and UKthe Nordic countries are the marked that spends the

t t lli i Emost money on travelling in Europe.

• In the past ten years the Nordic countries have had a• In the past ten years, the Nordic countries have had anoticeably greater increase in GDP.

• Nordic tourists’ private consumption is also seeing apositive trend.

• Nordic tourists spend 90% more money than theaverage European tourist on food, accommodationand attractions while on holiday.

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03: THE NORDIC ECONOMIC SITUATIONHowmuch money do they spend on travelling?

03: THE NORDIC ECONOMIC SITUATIONcont…

Research shows thatNordic tourists spend

How much money do they spend on travelling?

• The average Nordic tourist spends more than 1,000 euro when vacationing withinEurope.(t t d ti & ti )

Nordic tourists spendmore money on travelling

(transport, accommodation & consumption).

• Whilst a greater amount is spent outside Europe *This is also a growing market asthan any other Europeangroup and the numbersWhilst a greater amount is spent outside Europe, This is also a growing market as

most have visited Europe over the years and is looking for new destinations.group and the numbersare increasing each year.

• Research shows that Nordic tourists spend more money on travelling than anyother European group and the numbers are increasing each year.

Danish travel spending has for instance grown 63 % in just three years.

Swedish tourists’ holiday consumption in 2015 is expected to amount to 11.1billion Euro.

While the Norwegian tourists are expected to spend 11.9 billion euro.

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PROFILE OF NORDIC TOURISTS TO SOUTH AFRICA BY PROFILE OF NORDIC TOURISTS TO SOUTH AFRICA BY RUNG BUTTONRUNG BUTTON

T ll g ll 30+ ( g b k flight ti k t li• Travellers are generally 30+ years (younger book flight tickets online• Groups Travel popular for older passengers who need specialist language guiding G oups a e popu a o o de passe ge s o eed spec a st a guage gu d g

/ help with practical check-in/out and other arrangements.English is widely spoken Finnish clients where English is not as widely spoken • English is widely spoken. Finnish clients where English is not as widely spoken

• Increasing demand for FIT bookings, including bigger family groups 8 – 12 pax.g g g gg y g• Most ask for SA only, some ask for combination with other destinations they tend

to visit only one country at a time (with exception of extension visits to Vic Falls)to visit only one country at a time (with exception of extension visits to Vic Falls)• Duration: generally 8 – 14 days• Approximately 80% of requests are for 4* hotels / lodges• Main drawcards are: nature / wildlife / safari and also city life / city • Main drawcards are: nature / wildlife / safari and also city life / city

exploration. Culture is less of a drawcard.• Security: not a major obstacle.• Only a few book self-drive holidays they are unsure of driving ‘on the wrong side Only a few book self drive holidays, they are unsure of driving on the wrong side

of the road’M i l l i t ll ll ti f b i t ll• Mainly leisure travellers, very small portion of business travellers.

• Most popular travel period: the traditional high season (Oct – Apr).p p p g ( p )• Remember that Scandinavia have a longer, colder and darker winter - need for a

warm and sunny holiday destination is very importantwarm and sunny holiday destination is very important.• combination of beach / city / wildlife,

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MARKET PROFILE SWEDISH TRAVELLERS –PELLE MARKET PROFILE SWEDISH TRAVELLERS –PELLE LANGSTEDTLANGSTEDT

Ages Incentive groups: 30-55 Leisure groups: 55+Ages Incentive groups: 30 55 Leisure groups: 55+FIT or Groups : groups from Sweden has gone down over the lastFIT or Groups : groups from Sweden has gone down over the last five years FIT-segment is rapidly growing.five years FIT segment is rapidly growing.South Africa Only or multi country Incentive groups:vastSouth Africa Only or multi country Incentive groups:vastmajority only RSA. A few choose an add-on country and almostmajority only RSA. A few choose an add on country, and almost always Victoria Falls. Leisure groups: Most leisure groups do more y g p g pcountries than just RSA. jLength of Stay in SA Incentive: 3-5 nights .Leisure: 7-12 nightsg y g gThree star or Five star Incentive: 3-4 star (but most often 4)Three star or Five star Incentive: 3 4 star (but most often 4) Leisure FIT’s: 3-4 star (but most often 3)( )Culture Incentives: always encourage a visit to the townships linkedCulture Incentives: always encourage a visit to the townships linked to some CSR activity.-often seen as the highlight of the tripy g g pLeisure : Definitely high cultural interestLeisure : Definitely high cultural interest

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MARKET PROFILE SWEDISH VISITORS –PELLE LANGSTEDT

Main destinations Incentive: mostly just Cape Town (but also f i if b d t)safari if budget)

L i r Tr ll r C T Wi l d b h ft l dLeisure Travellers: Cape Town, Winelands, bush often overland Garden RouteGarden Route

Security concerns Incentives: Very little Leisure : SomeSecurity concerns Incentives: Very little. Leisure : Some concerns but has decreased over the last 5-7 yearsy

Self Drive growing segment from Sweden.g g gYouth- voluntourism 2-3 groups per year, but this is not a huge g p p y , g

segment.Beach Resorts –In SA or Mozambique No demand for SA

beach resorts - some add-on’s to Mozambique Safaris -in SA or neighbouring countries Primarily Greater Kruger,

Pil b M dik d i E C & BPilanesberg, Madikwe and some in Eastern Cape & Botswana.

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MARKET PROFILE FINNISH TOURISTS BY TOUR MARKET PROFILE FINNISH TOURISTS BY TOUR OPERATOROPERATOR

Characteristics of the Finnish travellers to South Africa Characteristics of the Finnish travellers to South Africa Ages +40 ( main interest 50-65) Ages +40 ( main interest 50 65) FIT or Groups FIT, p special groups, who do have special interest are growing ( Wine, golf, safari..) South Africa Only but can be with Namibia/ Botswana &Mozambique

L h f S i SA Mi i 10 14 d Length of Stay in SA Minimum 10, average 14 days 4* 5* 4* -5* Main attraction for visiting South Africa - Nature/ Safari/Wine/Golfg / / / Culture Zulu culture, culture would be one part of the tour(max two days in 14

days journey)M i d ti ti C T G d R t K g KZN Main destinations , Cape Town , Garden Route, Kruger, KZN

Security concerns Very much Security concerns Very much Self Drive Very populary p p Youth- voluntourism Very few General Market Conditions in Finland - Increasing demand for Long Haul travel

80 000 80,000 Finnish tourists to Thailand per year

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CURRENT PROMOTIONAL ACTIVITY BY SOUTH CURRENT PROMOTIONAL ACTIVITY BY SOUTH AFRICAN EMBASSIES IN NORDICS AFRICAN EMBASSIES IN NORDICS

Denmark• Continued publishing of the Embassy’s monthly newsletter presenting

events taking place in South Africa two months ahead. The electronic newsletter is circulated to tour operators wine importers and othernewsletter is circulated to tour operators, wine importers and other Embassy contacts..Embassy contacts..

Apart from the newsletter, nothing has been planned due to lack of fundsp , g pFINLAND• Nothing planned for rest of the year. Participate in MATKA and TOUREST

ESTONIASWEDENSWEDENTUR Gothenb rg Febr ar 2015 b t f nding problemTUR Gothenburg –February 2015 but funding problemANTOR Sweden Roadshow ANTOR Sweden Roadshow .Senior Show October Stockholm –as very travel focusedSenior Show October Stockholm as very travel focusedNORWAYNORWAYShort staffed .Have not exhibited at Trade shows for past few yearsp y

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WHAT SHOULD SAT /DEPT OF TOURISM BE DOING TO WHAT SHOULD SAT /DEPT. OF TOURISM BE DOING TO PROMOTE TOURISM TO SOUTH AFRICAPROMOTE TOURISM TO SOUTH AFRICA

Cultural events for the public Workshops for tour operators

E t bli h t k f t t d t l t lli S th Establish a network for tour operators and travel agents selling South Africa FUNDI programme?Africa…FUNDI programme?

Invite Danish travel journalists to cultural events in South Africa Invite Danish travel journalists to cultural events in South Africa Organize promotion of golf in South Africa to Danish golf clubsg p g g A Danish website promoting tourism to South Africa Co-operate with staff clubs in bigger Danish companies and organisations

about SA evenings with SA food, wine and tourism presentations. Financial support to participate in Trade Fairs

C Ad ti i g Consumer Advertising Press trips air tickets always a problem Press trips-air tickets always a problem BROCHURES & POSTERS –particularly from Cities and Provinces BROCHURES & POSTERS –particularly from Cities and Provinces

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WHAT DO THE INTERNAL ROLE PLAYERS FEEL ABOUT WHAT DO THE INTERNAL ROLE PLAYERS FEEL ABOUT TOURISM GROWTH TO SOUTH AFRICA: TOURISM GROWTH TO SOUTH AFRICA:

Abstracts taken out from published articles or discussions with Henrick Koch, CEO of Scandinavian tourism PR agency, Karin Gert Nielsen, MD and CEO of Tourism Promotion Agency, Atlantic Link, Ben Hurst, Product Developer, Albatros Travel AS; Eva Stenmarck Travel Marketing Nordic Nick Buckland Into Africa Johnny Henson Vice Chair NSBC and Travel AS; Eva Stenmarck, Travel Marketing Nordic, Nick Buckland, Into Africa, Johnny Henson,Vice Chair NSBC and director IFU, Monika Luel, GM International Marketing

Nordic Travellers offer great and untapped potential to Southern Africa – Suppliers and TO – Based on disposable income and length of holidays each yearand TO Based on disposable income and length of holidays each year

Compelling arguments for investing in Nordic Countries – Large part spent on travelling, 90% more money spent on Food, accommodation and attractions, 60% take a holiday once a year 3rd largest market for outbound tourismtake a holiday once a year, 3 largest market for outbound tourism

Scandinavian travellers are very resilient in the face of economic crisis – they tend to travel more – 66% said when surveyed and 23% tailor their holiday plansNordic travel spend is more than US$ 20 bn or R 199 bn and steadily increasing Nordic travel spend is more than US$ 20 bn or R 199 bn and steadily increasing

Annual growth of about 5.9% collectively YOY (based on SAT) could be far greater.Annual growth of about 5.9% collectively YOY (based on SAT) could be far greater. South Africa is the perfect match – as Nordic travellers are seeking authentic and distinguished destinations – SA’s history, culture and beautiful nature create the unique experience Nordic’s love unique experience Nordic s love

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WHAT FACTORS DO WE NEED TO CONSIDER AS ROLE WHAT FACTORS DO WE NEED TO CONSIDER AS ROLE PLAYERS WANTING A GREATER SHARE OF THIS MARKET:PLAYERS WANTING A GREATER SHARE OF THIS MARKET:

SAT needs to consider NORDICS as a region and not as individual countries. Will show greater tourism impact as compared to current setup.

Dedicated Nordic SAT person based in the region or out of London– worked better in the past – SAT need to ensure greater involvement and awareness SAT Collaboration with independent roadshows and marketing efforts. Why work divided rather pool resourcesdivided rather pool resources English is a common understood medium in Scandinavia not so much Finland –gcommunication barrier is not so much of a challenge as made out. Learnings from Swedish key trade partners, TUR and familiarisation trips – needs to be capitalised within the full potential in this region – not just one country –to be capitalised within the full potential in this region not just one country currently Sweden Sweden currently an investment market going to be downgraded as Watchlist market q estionable all 3 Scandina ian co ntries ill be atchlist markets market– questionable – all 3 Scandinavian countries will be watchlist markets. Could kill future growth. g Embassy involvement needs to be increased

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WHAT SOUTH AFRICA COULD DO TO INCREASE NUMBERS FROM NORDICS MARKETNUMBERS FROM NORDICS MARKET1. Active advertising:

Appoint a good PR agency ensure the “good stories” are told in the local press This could Appoint a good PR agency ensure the good stories are told in the local press. This could also be the channel to change any negative perceptions

joint marketing with various tour ops./agents to keep costs down and help create “loyalty” from the agents They are more likely to sell products they advertiseloyalty from the agents. They are more likely to sell products they advertise.

Join forces with other SATSA countries to better promote the region2. Some TV channels have “this programme is brought to you by….” This could be used to create

a link between various relevant nature programmes and South Africaa link between various relevant nature programmes and South Africa3. Support SA DMCs and “individual products” that are active, specifically in this market – there

are several that visit Scandinavia on a yearly basis to keep in touch with clients and to seek new business new business.

4. Continued and more active participation at TUR trade show in Gothenburg – ensure exhibiters search for business rather than sit and wait for it to come

5 Encourage DMCs and suppliers to visit the area and have individual meetings 5. Encourage DMCs and suppliers to visit the area and have individual meetings 6. Ensure all campaigns cover the full spectre of SA properties7. Focus on specific segments – as mentioned Golf is very popular here. 8. Actively market Indaba in Scandinavian Travel Trade media

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LONG HAUL MARKET EX NORDICS

many competitors fighting for the travelling publicmany competitors fighting for the travelling publicComparison of the main overseas competition 2013Comparison of the main overseas competition – 2013statsstats

USA 1 003 000 i it f DK/NO/SE– USA, 1.003.000 visitors from DK/NO/SE– Thailand, 800.000 visitors from DK/FI/NO/SE– Dubai, 165.000 visitors from DK/FI/NO/SE –./ / /– Canada, 117.000 visitors from DK/FI/NO/SECanada, 117.000 visitors from DK/FI/NO/SE

Australia 93 400 visitors from DK/FI/NO/SE – Australia, 93.400 visitors from DK/FI/NO/SE S th Af i th 5th l g t k t • South Africa the 5th largest overseas market

• This shows there definitely is a market for South Africa and the potential to grow in Scandinaviathe potential to grow in Scandinavia

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WHAT SHOULD SATSA MEMBERS BE DOING TO GENERATE SALES

• Get basics right• Train partners in local seminars,p ,

• Supplement with Educationals.• Do joint calls with partners to key customersj p y• Concentrate on targetted activities and work Concentrate on targetted activities and work

shopsp• Take advantage of partners database Take advantage of partners database

challenge the use of it. Be certain who you g ytarget; Tos, Tas, MICE, Individuals, Corporates (line of business), Public offices

• Be active in PR• Work Closely with the Embassiesy

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NEWMARKET TONEWMARKET TO

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04: TRAVEL HABITS cont…

Popular destinations

The most popular European holiday destination for Nordic tourists is Spain.However, there seems to be an increasing interest in non‐European destinationswhen buying package tourswhen buying package tours.

Approximately one out of four holidays go to a destination outside Europe

• Thailand is a very popular holiday destination outside Europe.

This is due to low prices for flights and hotels – and the possibility fordifferent experiences.

• The US is also one of themost popular destinations.

• It is mainly in the winter that Nordic tourists make these overseasjourneys.

They like a good deal

Nordic travelers are very aware of exchange rates and make good use of thepossibilities this brings. i.e. the low dollar rate encourages them to travel acrossh l d d hthe Atlantic and down South.

How do they prefer to travel?How do they prefer to travel?

The most popular forms of travel amongN di iNordic tourists are:

1. All‐inclusive Package Tours – Longer stay. All inclusive Package Tours onger stay2. City Breaks – Shorter trips3. Cruises – Seeing many places4 S id E S lf C t i4. Seaside Escapes – Self Catering

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04: TRAVEL HABITS cont…

Length of travel

Nordic people have long holidays compared to othercountries 5‐6 weeks is the average for all four countriescountries. 5‐6 weeks is the average for all four countries.They often take 3 successive weeks in the summer orwinter timewinter time.

• During 2011, Finnish residents aged 15‐74 made a total of 5.6During 2011, Finnish residents aged 15 74 made a total of 5.6million leisure trips abroad.

• In Norway, there has been an increase of 4.6% in travelling abroadfrom 2008‐2012

• Since the millennium, Swedes’ holiday travel has Increased by17.5%

• According to new research, 50% of Swedish Tourists are planningmore tra els abroadmore travels abroad.

• In 2014 compared to 2013. The corresponding figures for Norwayp p g g yand Denmark are 42% and 36% respectively.

What will they be looking for?

New perspectives

Thailand, USA and Canada will remain popular.

h h l l lOther destinations such as Brazil, Australia, Japan and unique placessuch as Southern Africa and East Africa will become even more populartravel destinations in the futuretravel destinations in the future.

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05: IMPORTANT05: IMPORTANTSEGMENTSSEGMENTSThere are three important market segments with greatpotential when entering the Nordic travel marketpotential when entering the Nordic travel market.

ThThey are:1. Families with children2. Singles with no children3. Empty Nesters

The most important*Travel activity is increasing for all groups.

The most important aspects for these families Travel activity is increasing for all groups.

Families with childrenTh hild h ld h f

pwhen travelling are:

• Families with children are an important Segment of the Nordictourism market.

• The children should have fun• The family should have shared

experiences• These families typically use the school holidays to be together.

experiences.• The parents want to relax• The parents need time with their

• Experiencing things together is important because the parentshave less and less time.

The parents need time with theirchildren.

• The children should be active

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05: IMPORTANTi l

05: IMPORTANTSEGMENTS cont…

Empty Nesters

E t t d lt l d

Singles

Singles either travel with other singles or they go alone on group Empty nesters are adult couples, aged45+ with no children living at home.

Singles either travel with other singles or they go alone on grouprelated tours, which more and more singles are daring to try.

l l d l f l hEmpty nesters are an attractive target group due tothe fact that they

• Single culture is growing, and a large proportion of singles haveno children.

y

• Have a great desire to travelH l t f

• This makes singles’ holiday travel a growing industry within theNordic countries.

• Have a lot of money• Spend more money than the average tourist• Take longer vacations

Why do they go?g

• Can take vacations outside the peak season

E t t idl

The advantages of singles’ holidays are freedom and social interaction between single travellers. Empty nesters are a rapidly 

growing segment globally and in all the Nordic 

and social interaction between single travellers. 

• Only 30 % of the women and half of the men would travel tofi d countries

In Denmark, the number of people over 60

find a partner.

• Instead, the majority choose singles vacations in order to findmakes up 33 % of the Danish population.

Nordic region empty nesters are very interesting as antb d t ll d t th i i h t l d

, j y gnew friends and share experiences.

outbound travellers due to their richer travel spend.

They also take longer vacations and most of them areable to travel outside of peak season for instanceable to travel outside of peak season, for instance

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06: BOOKING06: BOOKINGBEHAVIOUR &BEHAVIOUR & PLATFORMSActive Online Searchers

PLATFORMSActive Online Searchers

Nordic tourists are active onlineh th i

The most important sources of informationsearchers gathering moreinformation than the averageEuropean tourist. Information

The most important sources of information for choosing a specificdestination for Nordic tourists, are:

searches on the Internet areincreasing and an average of60 % book their vacations online

In Norway, travel and holidays are the most bought or ordered products online.

60 % book their vacations online.

Booking patterns should be flexiblef b ki li b i i fl ibl d h

1. Been there before• Prefer booking online because it is flexible and they can

search and plan their holiday exactly the way they want it.2. Google.com3. Recommendations from friends or families4. Official website for travel agency

63 % are satisfied with planning their holiday themselves 57 % used three or more websites to plan their holiday 39 % will definitely plan their next

4. Official website for travel agency5. Official website for hotels, attractions etc.6. Newspaper advertising

39 % will definitely plan their nextholiday themselves What’s important?

Inspiration from the Internet makes up*When travelling into Africa or unknowndestinations, preference is given to usea travel specialist.

three out of five information sources andtherefore it plays a very important rolein terms of searching for inspiration andp

The women make the decisions• Research shows that women take the lead when vacations

in terms of searching for inspiration andbooking a holiday.

h ’ i ?• Research shows that women take the lead when vacationsare being planned and booked. 4‐5 years ago only one infour women decided on the holiday.

What’s not important?The most ineffective information sourcesare TV spots, exhibition visits and travelp ,programmes on TV. Nordic tourists clearlyprefer new communication technologiesover traditional mediaover traditional media.

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04: TRAVEL04: TRAVELHABITSHABITSThe Nordic tourists travel a lot and they will be travelling more in 2015 than in recentyears. (Increase expected to exceed)

About 50% of all their travels are to foreign countries.

Overseas holiday travel will become more popular in the future.

Th N di t i th thi d l tThe Nordic countries are the third largestOutbound market in Europe.

They are starting to travel in their summertime• 30 % of all Danish vacations in 2012 took place in July and August.• This is almost the same in Swedenwith 32 2 %This is almost the same in Swedenwith 32.2 %

of all annual outbound travel.

Sh t t i b i lShorter trips becoming popular• For instance, they take city breaks in the Easter period or autumn holidays,

and then a longer vacation in the summer or during the winter.

They prefer a warm climate• Nordic tourists prefer to travel to destinations with a warm climate whereNordic tourists prefer to travel to destinations with a warm climate where

they can relax and spend time with family, relatives and friends.• Experiencing big cities and different cultures are other elements that attract

di i h li b dNordic tourists when traveling abroad.

SA is the perfect match withSA is the perfect match with“Sun, Sand, Sea and Wildlife.

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SA EMBASSY DENMARK MARKET PROFILE

I g l th bigg t g f t ll t S th Af i 50+ • In general, the biggest group of travellers to South Africa are 50+, • Danes are often travelling to South Africa in smaller groups (often in families). a es a e o te t a e g to Sout ca s a e g oups (o te a es)• most Danes organize their own holidays and book everything on the internet.

M f h D i h i l l S h Af i • Most of the Danish tourists only travel to South Africa. • Length of the stay is often around 14 days. Length of the stay is often around 14 days. • Accommodation is often three-four star and small guesthouses and B&Bs are

popular amongst self drive tourists popular amongst self-drive tourists. •

• The main attractions nature and animal life but culture and history are growing growing.

• Main destinations are Kruger Park, Cape Town, Wine lands, Garden Route. • The security situation has certainly discouraged some potential tourist from

going to South Africa going to South Africa.. • Self-drive is very popular. • Voluntourism is growing for youth as well as for pensioners. Danish NGOs are

offering such tours.g

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TRAVEL & TOURISMTRAVEL & TOURISM

The 2014 Travel Image report on Nordic Outbound Travel has just been published. The study encompasses responses from 2300 people over 18 years of age and looks at the Image of and the respondents Awareness and y g gAttractiveness of 89 destinations.See: http://www related dk/files/pdf/Travel Image/travel image 2014 pdfSee: http://www.related.dk/files/pdf/Travel_Image/travel_image_2014.pdfSome interesting details:1. The Image of SA ranks 45 overall and 18 of the overseas destinations, with New Zealand the winner, it’s

popularity mainly driven by the two movies, Lord of the Rings and The Hobbit – however arrivals to NZ are about half of to SA

2 The Image of SA ranks 4 when asked about Africa and Indian Ocean Islands2. The Image of SA ranks 4 when asked about Africa and Indian Ocean Islands3. The Awareness of SA ranks 50 overall and 14 of the overseas destinations 4. The Attractiveness of SA ranks 48 overall and 21 of the overseas destinationsDestinations like USA & Thailand are very well marketed in this area. Both offer excellent value for money and y ysafety. The US is known for its diversity, shopping, “culture” i.e. movies and books etc. There is also a rather large VFA market to the States. VFA market to the States. Thailand has always highlighted its beaches in the south and the tribes of the north. I think we are all familiar with their culture and cuisine their culture and cuisine. Scandinavians know of South Africa, but not enough to make it highly attractive. This clearly indicates there is ”room to improve” and the most important tool must be Marketing - see the following slides.