15 May 2013 / Webinar Source Market Central Europe / First ......15 May 2013 / Webinar Source Market...

15 May 2013 / Webinar Source Market Central Europe / First Part


Webinar: Source Market Central Europe

First part:

Market information for strategic and profitable decisions

Module 1:

Market environment – stakeholders, their interests and behaviours -

understanding the German market and profiting form it

Dres. Dingeldey Business Consultants | [email protected]


The Presenters

David Ruetz

Head of ITB Berlin

[email protected]

Dr. Alexander Dingeldey

Dres. Dingeldey Business Consultants

Strategy consultant Tourist Trade since 2002

[email protected]

Dr. Klaus Dingeldey

Dres. Dingeldey Business Consultants

Strategy consultant Tourist Trade since 1969

[email protected]



How We Work Together

Charts and webcast will be published on the website

Questions:

Box for your questions

General questions will be answered to all participants

Private questions directly to you

Questions will be answered after each module as far as possible

Open questions will be answered per email after the webinar

Feel free to ask personal questions after the webinar to:

[email protected]

[email protected]



Agenda

First part: Market information for strategic and profitable decisions (today)

Module 1: Market environment – stakeholders, their interests and behaviors - understanding the

German market and profiting from it

Module 2: Tourism companies in Germany, Austria and Switzerland as business partners and

their potential to generate business

Second part: Tailor made products and marketing (4th of June 2013)

Module 3: Travel needs and behavior of German, Austrian and Swiss tourists and how Asian

tourism companies can profit from it

Module 4: What are German guests expecting form destinations and tourism companies in Asia

– Products and services with a high potential for demand



General Economic Development in Europe


GDP per capita in US$, current prices

• Many headlines during the last years have called on economic crisis in Europe.

• However the financial and economic crisis since 2008 did touch the various countries with a different impact.

• Within the European Union the Middle- and Northern European countries turned back to a positive development with different

growth rates with Germany in the lead, where as the Mediterranean Countries still are suffering from an economic downturn.

• Never the less because of the general level of economic development, all European countries have potentials for tourism to

Asian destinations.

• The gems amongst the source markets for tourism are Switzerland, Germany, Austria, the Netherlands, Luxemburg and the

Nordic Countries

Source: IMF WEO April 2013

0

10.000

20.000

30.000

40.000

50.000

60.000

70.000

80.000

90.000

1980 1984 1988 1992 1996 2000 2004 2008 2012 2016

Germany

Austria

Singapore

Switzerland


Constantly Growing Purchasing Power in Central European Countries


GDP per capita in Purchasing Power Standards 2011 (Average: EU27=100)

100

110

120

130

140

150

160

2000 2002 2004 2006 2008 2010

Switzerland

Austria

Germany

EU (27 countries)

Development:

Source: Eurostat 2013


Spacial Distribution of Purchasing Power in Germany, Austria and Switzerland


Source: GfK 2012

Index of Purchasing Power

per Capita (Average=100)

under 72%

72% to 80%

80% to 88%

88% to 96%

96% to 104%

104% to 112%

112% to 120%

120% to 128%

128% and over


The Average German Household 2011 – Expenses and Possessions


Income and expenses

per household per month in Euro

Income before Tax and Social Security: 3871

Income after Tax and Social Security: 2988

Spendings:

• Food&Beverage 312

• Clothing 104

• Living, Energy 775

• Traffic (Car, Train, Fuel,...) 319

• Leisure, Culture, Package Holiday... 244

• Hotel and Restaurant 119

Possessions

share of households that own:

Car 77.9

Television 96.2

Camera 88.1

Computer 82.0

Telephone 92.7

Mobile Phone 90.0

Afford at least one week of holiday per year 74.9 Source: DESTATIS


The Financial Resources for Travelling Vary Widely within Europe

0

10

20

30

40

50

60

70

80

90

100

NO DK LU SE CH NL IS FI IE UK BE DE AT FR SI CZ ES IT GR CY SK EE LT PT LV HU PL MT RO BG


Share of household that can afford at least a one week holiday

away from home per year (%)


Seite 10


Demographic Change Leads to Growing Potentials for Tourism


Prospected change of average population

• Low birth rate, but fast increasing life expectancy, increasing inbound migration

• Older population travels with a high intensity – they keep their travel behaviour much longer than in former times

• More spare time in comparison to work time more time for travel

• Increasing average age of mothers at time of birth of their children longer phase as singles and DINKs higher potential for

long distance trips

• State funded family leave for the first year after birth of a child in Germany makes it possible that parents can go on long

holidays Need of products for families with small children

0,0%

20,0%

40,0%

60,0%

80,0%

100,0%

120,0%

140,0%

2010 2020 2030 2040 2050 2060

Switzerland

Austria

Germany

EU27 Average


2010:

Germany: 81.7 Mio.

Austria: 8.3 Mio.

Switzerland: 7.8 Mio. 0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

2010 2020 2030 2040 2050 2060

Switzerland

Austria

Germany

EU27 Average

Share of population over 65


The main Outbound Tourism from the Source Markets in Europe is Heading for Destinations within Europe

Outbound Tourism

Departures of overnight tourists




The continents except Europe have different market shares on the European source markets

Outbound Tourism

Departures of overnight tourists



Media Usage and Chances for Marketing Communication


0,0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% 80,0% 90,0%

Reading Newspaper

Reading Magazine

Watching TV

Listening to Radio

Listening to Music (CD, mp3,...)

Watching Videos/DVDs

Going to Cinema

Going to Theatre, Concert

Sporting/Fitness

Going to Bars, Discothequs...

Do-It-Yourself

Use Computer

Use Computer Dayly

Media usage and spare time activities in Germany

Activities done more than once a week 2012:

Source: ARD – German State TV 2013, Persons over 10 years

• Main Sources of Information: TV, Radio, Newspapers and Computer

• 75% of the Population use the Computer more than once a week – to get information, for work or to play games.

• Public and private Television and Radio Stations in Germany, Switzerland and Austria

• Newspapers: In Germany, Austria and Switzerland spread their papers to a small extend nationwide, mostly regional and local.

Germany Austria Switzerland

Population 81.31 8.29 7.93

Internet User 66.48 6.56 6.51

Facebook User 25.33 2.92 3.06

Selected Online Activities:

Reading Online Newspapers 67% 57% n/a

Internet Banking 55% 57% n/a

Posting Messages to Social Media 42% 46% n/a

Book Travel and Accomodation

Service 62% 51% n/a

Creating a Website or Blog 8% 10% n/a

Online activity 2012:

Source: Eurostat, Internet World Stats


Growing Influence of Mass Media


Anthrax, Bird Flu, Swine Flu, SARS,... Anthrax, Bird Flu, Swine Flu, SARS,...– Hysteria

Reality Media driven Reality


The EU has a Deep Framework of Regulations Concerning Travel and Tourism

EU Consumer Protection

Passenger rights for air, rail and ship transport

Package holiday regulation with protection of the consumer in case of bankruptcy

(compulsory insurance)

Airline tax

7,50/23,43/42,18 Euro per departure form a German Airport

No Tax if a people depart from AMS, ZRH, PRG…

Schengen

Group of countries with one border control at entry and departure

Heterogeneous visa regulation of different countries

Harder to remain visa (protection against terrorists, Illegal workers, criminals,...)

Harder for Schengen citizens to get visa in partnering countries as retaliation – if it gets

harder to get a Schengen Visa the partner countries make it more difficult as well

Margin Tax

VAT for travel within the EU, no VAT for cross border trips outside the EU –

Reason that the package production of tour operators is often located in Switzerland



Conclusions Module 1

Due to the economic and demographic development, size of the market, purchasing power and

general travel intensity and attraction to Asian destinations Germany, Switzerland and Austria

belong to the core markets within Europe for Asian suppliers.

3.8 Mio guests from Germany, Austria and Switzerland travelled to Asia in 2011

Because of the long distance holiday guests from Central Europe stay with an average of

23 days at far eastern destinations and spend 110 Euro per day.

Given that the Asian destinations will develop their attraction to European tourists in general and

for special segments and target groups there is a high potential within central Europe to gain

further guests in future.



Webinar: Source Market Central Europe

First part:

Market information for strategic and profitable decisions

Module 2:

Tourism companies in Germany, Austria and Switzerland

as business partners and their potential to generate business



Historic Tourism Value Chain (~1990) still has a big influence on the Current Market Structure

Hotel Incoming Transport Tour-

operator Travel

Agency

Media Intermediary


Supplier

Guest

Personal selling

Telephone

Advertisement

Catalogue

Direct Mailings

TV/Radio

Seite 19


Structure of Communication, Packaging and Purchasing Process are Changing Tremendously


Media Supplier Intermediary

Guest

Hotel

Incoming

Flight

Coach

Car Rental

Train

Travel Agency

Online and

Offline Tour Operator

Online and

Offline

Bed-Banks

Personal selling

WWW

TV/Radio

Telephone

E-Mail

Advertisement

Catalogue

Snail-Mail

Price

Comparison

Systems

Evaluation

Portals

Direct

Ship

Other

Seite 20


Change of the Importance of Booking Channels and Holiday Organisation in Germany


44%

8%

7%

21%

13%

34%

7%

15%

29%

14%

0% 10% 20% 30% 40% 50%

Travel Agency

Tour Operator

directly

Online Travel

Agency

Accommodation

directly

Transport directly

2005 2012

Booking channels 2012:

48%

27%

11%

6%

17%

34%

42%

33%

13%

15%

0% 10% 20% 30% 40% 50% 60%

Holiday Package/

Modular Package

Hotel seperatly

Tickets seperatly

Other parts

seperatly

Nothing

prebooked

2005 2012

Holiday organisation 2012:

Source: FUR, holiday trips with 5 days and longer

Seite 21


The destination has a Strong Influence in the Type of Travel Organisation – Example German Source Market


16%

49%

65%

2% 3%

9%

15% 14%

34%

16%

46%

13%

4%

26%

52%

18%

0%

10%

20%

30%

40%

50%

60%

70%

Domestic International Med-Haul Long-Haul

Holiday Package

Modular Package

Tickets seperatly

Hotel seperatly

Other parts seperatly

Nothing prebooked

Organisation of holidays in Germany 2010



German Tour Operator and Travel Agency Market

0

5000

10000

15000

20000

25000

30000

1995 2000 2005 2010 2012

Other

FTI

Alltours

Thomas Cook

REWE

TUI

41.9%

35.1%

38.3% 44.1%

Source: FVW, Methodical Change 2003: Bei TUI, TC and REWE only German Revenue since 2003, Total Market: FVW, TouristScope, DRV and own calculations

Revenue in M

io. E

uro

21.3 Bn.

19.5 Bn. 19.1 Bn.

15.4 Bn.

18.6%

19.2%

15.7%

22.3%

15.6%

17.5%

23.2%

14.6%

15.4%

18.0%

14.0%

13.4%

24.3 Bn.

43.2%

18.3%

13.1%

13.1%

Thomas Cook

5,5%

LH

City

Center

RSG

4,4%

CWT

4,0%

TMCV

9,6%

TUI

Leisure

Travel

REWE

17,4%

QTA

20,6%

BCD

7,5%

OFT

3,4% Other

1,3%

Tour Operators (by Turnover): Travel Agencies (by Turnover):

QTA: RTK, Schmetterling, Best-RMG, Alpha, TUI Travel Star

TMCV: TSS, AER

RSG: ProTours/ RCE, Deutscher Reisering, TourContact, Prima Urlaub



Austrian Tour Operator and Travel Agency Market 2011

Tour Operators (by Turnover):


Jumbo

7,2%

TUI

38,0%

REWE

17,8%

FTI

9,0%

Thomas

Cook

17,8%

Alltours

5,0%

Other

5,2%

Source: ÖRV, WKO

Other

Individual

TA

18,2%

TUI Travel

Star

20,0%

ÖVB

Ruefa

Reisen

20,0%

TUI Reise-

center

13,6%Kuoni,

Gruber,

Raiffeisen

17,3%

Other

TA

Chains

Travel Agencies (by Turnover):

~650 tour operators in total ~2100 travel agencies

1.9 Bn. Euro turnover


0%

10%

20%

30%

40%

50%

60%

70%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Access

Information

Booking

Source: FUR

Increasing Use of the Internet for Information and Booking


Share of the population over 14, that has access to the Internet, uses it for

information about travel products and bookings.


Online Information and Booking 2012:


3%

3%

3%

9%

8%

16%

16%

19%

6%

7%

10%

16%

22%

32%

32%

37%

0% 10% 20% 30% 40%

Info Car Rental

Info Train

Info about Event at Destination

Info Fight

Info Package/Modular Tour

Info Accomodation

Price Comparison

Info Destination

2005 2012

Online topics of information:

2%

2%

2%

4%

4%

7%

4%

5%

5%

10%

10%

18%

0% 5% 10% 15% 20%

Ticket (Cinema,

Theatre,...)

Car Rental

Train Ticket

Hoilday

Package/Module

Flight

Accomodation

2005 2012

Online booking:



Conclusions Module 2

The presence in the internet is mandatory for any supplier who wants to sell on the Central

European market

The offer should be made in English or even better in German (further information in Part 2)

With business partners communication in English is common

To be successful on the Central European Market it is still necessary besides an informative

internet presence to use the support of partners – tour operators, travel agencies, global hotel

chains – to develop the market

To select the right partners every enterprise has will have its own criteria: Size, strategy and

philosophy, target group orientation, branding, coverage, compatibility of processes and

systems.

Further information about potential partners you will find with national trade associations,

national tourism organisations, trade directories (like www.tid.de) and trade fairs.



Outlook: Second Part 4th of June 2013 10:00 am CET

Tailor made products and marketing:

Module 3: Travel needs and behaviour of German, Austrian and Swiss tourists and how Asian

tourism companies can profit from

Module 4: What are German guests expecting form destinations and tourism companies in Asia

– Products and services with a high potential for demand



Questions and Further Information:

Dres. Dingeldey Business Consultants:

Clermont-Ferrand-Allee 28

D-93049 Regensburg

Tel: +49 941 565911

Fax: +49 941 565912

Rohrer Str. 19

A-6280 Zell am Ziller

Tel: +43 5282 20555

[email protected]

[email protected]


ITB Academy

[email protected]

15 May 2013 / Webinar Source Market Central Europe / First ......15 May 2013 / Webinar Source Market...

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Transcript of 15 May 2013 / Webinar Source Market Central Europe / First ......15 May 2013 / Webinar Source Market...