Tourism Data Report - industry.yorkshire.com

Tourism Data ReportMarch 2020

In this issue• Accommodation Occupancy

and Revenue• GB Domestic Tourism Update • Inbound Visitor Trends• Tourism Day Visits• Generation Z • Easter Activity

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COVER IMAGE: Brodsworth Hall and Gardens.

Welcome

We have selected findings that we feel are important to highlight and will be of use to you and your business from an extensive selection of reports that are available on the Visit Britain website. If you are interested in finding out more, go to www.visitbritain.org

We will also include updates on recent Welcome to Yorkshire activity and how it has helped visitor growth and promotion in the region.

Welcome to our Tourism Data Report. We compile this quarterly newsletter to bring you a range of tourism data and insight for the Yorkshire and Humber region as well as England.

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Please note that the latest 2018 & 2019 results are subject to minor changes.

MONTH ROOM OCC ROOM OCC BEDSPACE BEDSPACE ADR (19) ADR (18) RevPAR RevPAR (19) (18) OCC (19) OCC (18) (19) (18)

January 60% 61% 43% 43% £56.31 £57.00 £33.89 £34.69

February 74% 71% 53% 50% £58.76 £59.91 £42.03 £42.29

March 72% 69% 51% 50% £60.10 £61.02 £43.23 £42.25

April 75% 74% 55% 53% £61.79 £61.90 £46.38 £45.53

May 76% 75% 55% 54% £64.75 £65.03 £49.19 £48.61

June 79% 78% 56% 56% £66.89 £65.90 £52.84 £51.29

July 83% 80% 58% 57% £67.98 £67.02 £56.10 £56.10

August 81% 79% 61% 59% £66.41 £63.00 £53.54 £49.60

September 82% 80% 57% 57% £67.01 £66.41 £54.80 £53.19

October 80% 77% 58% 55% £63.89 £64.44 £50.95 £49.92

November 80% 77% 57% 54% £66.39 £65.20 £52.98 £50.05

Source: Visit England, Accommodation Occupancy 2019

There is a consistent growth in occupancy rates from January until September, where after a small drop in October, rates have stabilised at 80% into November. For the month of November there was an increase in ADR, from £63.89 in October, to £66.39 which drove a corresponding increase in RevPAR. RevPAR stayed ahead of 2018 figures for all the autumn months.

Accommodation Occupancy and Revenue

Key terms:

* Average Daily Rate (ADR) - This is the average rate paid

for rooms sold. It is calculated by dividing room revenue

by rooms sold, i.e. ADR = Room Revenue / Rooms Sold.

** Revenue per Available Room (RevPAR) - This is the

revenue generated from the sale of actual rooms.

RevPAR can be calculated by using one of the

following formulas - total revenue from guest rooms /

total number of available rooms or Occupancy x ADR

Table 1: Yorkshire and Humber Occupancy and Revenue January - November 2019 versus 2018

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GB Domestic Tourism Update: Volume and Value Comparisons

The figures below compare Yorkshire and Humber (Y&H) domestic tourism metrics against England for the period January-June 2018 versus the same period in 2019.

These figures show that the Y&H region have seen

less favourable results in terms of number of trips, bed

nights and total expenditure than England in the same

time period.

However, the region has been much more successful in

increasing average spend per night with growth in Y&H of

13.9% compared to only 5% for England. The region also

saw significant growth in average spend per trip of 10.1%

compared to 0.7% for England. Both Y&H and England

saw small decreases in the average of length of stay by

3.9% and 4.4% respectively.

Table 2: GB Domestic Tourism January to June 2018 v 2019


TRIPS (MILLIONS)

2018 2019 % change

England 45.363 45.827 1%

Yorkshire and Humber 4.647 4.246 -8.6%

BEDNIGHTS (MILLIONS)

2018 2019 % change

England 129.528 125.312 -3.3%


EXPENDITURE (£ MILLIONS)

2018 2019 % change

England £8,667 £8,816 1.7%

Yorkshire and Humber £717 £720 0.4%

AVERAGE LENGTH OF STAY (NIGHTS)

2018 2019 % change

England 2.86 2.73 -4.4%


AVERAGE SPEND PER NIGHT

2018 2019 % change

England £67 £70 5%


AVERAGE SPEND PER TRIP

2018 2019 % change

England £191 £192 0.7%


Source: Visit England, Kantar, 2019

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The following charts show inbound international visitor trends in terms of number of visits (millions), amount of spend (£millions) and number of nights stayed (millions) between 2008 and 2018.

Inbound International Visitor Annual Trends for Yorkshire

VisitsThe first chart below shows the ten-year trend for

Yorkshire for the number of inbound international visits

to the region. Overall, the number of annual visits has

increased over the ten-year period by 0.13 million visits or

10.32%. 2018 is the highest year for visit numbers of all the

years tracked. However, there were periods of significant

decline over this time period, for example between

2008-2010, perhaps coinciding with the global recession

of that same period. There were also drops in 2012

(London Olympics) and 2015. Comparatively, visit growth

for the UK over the same ten-year period was 18.5%.


Inbound International Visits to Yorkshire (millions) VisitBritain, 2019

20

08

20

09

20

10

20

12

20

13

20

14

20

11

20

15

20

16

20

17

20

181.6

1.4

1.2

1

0.8

0.6

0.4

0.2

0

1.26

1.08

1.041.13

1.09

1.21

1.371.29

1.36 1.341.39

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SpendThe next chart looks at the same ten-year period, but

analyses spend from international inbound visitors to the

Yorkshire region. It follows a roughly similar pattern to the

visit number trend with drops in spend between 2009-10,

2012 and 2015. Overall, annual international inbound visitor

spend has increased by £153.4 million or 34.06% over the

ten-year period. Comparatively, spend growth for the UK

over the same period was 40.65%.

NightsThe final trend chart looks at inbound international visitor

nights to Yorkshire over the same period. Here again the

dips in visitor nights mirror the trends in the previous

chart, but in contrast we see a decrease of 2.29 million or

-18.03% in the annual visitor night figures from 2008 until

2018. This means that although the number of visits is

increasing international visitors are staying for less nights

per trip. Comparatively, visitor nights for the UK over the

same period grew by 8.28%.

Inbound International Visitor Spend in Yorkshire in £millions VisitBritain, 2019

Inbound International Visitor Nights in Yorkshire (millions) VisitBritain, 2019

20

08

20

09

20

10

20

12

20

13

20

14

20

11

20

15

20

16

20

17

20

18

700

600

500

400

300

200

100

0

14

12

10

8

6

4

2

0

20

08

20

09

20

10

20

12

20

13

20

14

20

11

20

15

20

16

20

17

20

18

450.33 461.22

417.16

482.19

432.93

581.03 569.91

515.52

515.54

567.22

603.73

12.70

9.218.22

10.55

9.36

10.3911.20

10.36

11.48

10.29

10.41

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The following charts provide a breakdown of the 2018 inbound international visitors into the Yorkshire region in terms of seasonality, purpose of trip and duration of stay.

Focus on 2018 Visits and Spend in Yorkshire

SeasonalityIn terms of seasonality we can see that the summer period

of July-September is the main period of travel, followed

by spring. However, the split across all four seasons is

relatively even. Interestingly, in terms of spend, whilst

July-September remains the key period, the period

October-December provides a high level of spend despite

having less visits than in spring. This is likely to be due

to the Christmas activities during this period.

Source: VisitBritain, 2019

Seasonality 2018 Visits %

Jan - Mar Jul - SeptApr - Jun Oct - Dec

22.74% 20.95%

31.01%

25.29%

26.37%

36.09%

16.49%

21.05%

Seasonality 2018 Spend %

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Journey PurposeThese charts look at journey purpose in terms of the

percentage of visits to Yorkshire and spend in the region.

For both metrics the largest percentage in terms of the

purpose of the journey is visiting friends and relatives

(VFR), with just under double of the next highest reason,

that of taking a holiday. The percentage of visits and

spend across all journey reasons is relatively the same,

with the exception of study where spend is greater.

Duration of StayThe final area is the duration of stay in the Yorkshire region

in terms of visits and spend. Here the highest percentage

of visits are for 1-3 nights, closely followed by 4-7 nights.

From this we can see that the Yorkshire region performs

strongly in the short-break market. However, looking at

the spend statistics it is probably not surprising that those

visitors who stay longer in the region spend more, with

27.4% of the spend coming from those that stay 4-7 nights

in comparison to 19.92% for those that stay 1-3 nights.

Duration of Stay 2018 Visits %

1-3 nights 8-14 nights4-7 nights 15+ nights

Journey Purpose 2018 Visits %

Holiday VFRBusiness Study

Journey Purpose 2018 Spend %

Duration of Stay 2018 Spend %

Miscellaneous

1.36% 28.81%

44.7%

22.88%

44.32%

26.7%

22.18%

18.31% 31.53%

20.55%

29.61%

26.06%

26.62%

19.92%

2.25% 4.3% 2.51%

27.40%

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DISTANCE YORKSHIRE & HUMBER NORTH EAST NORTH WEST (MILLIONS) (MILLIONS) (MILLIONS)

Less than 5 miles 19 14 31

Between 5 and 10 miles 20 14 37

11 to 20 miles 24 14 30

21 to 40 miles 21 12 22

41 to 60 miles 11 6 13

61 to 80 miles 8 4 8

81 to 100 miles 6 3 6

Over 100 miles 12 8 14

Don’t know 8 3 9

Total volume of visits 129 78 170

Average distnace travelled (miles) 45 44 38

Source: Kantar and Visit England, Visit Scotland, Visit Wales, The Great Britain Day Visitor 2018 Annual Report

The table below shows the volume of visits in millions with the corresponding distance travelled to the region. It also shows the average distance travelled. Of the three regions, Yorkshire and Humber has the highest average distance travelled with 45 miles.

The region also performs strongly in terms of long distance

travelled (over 100 miles), with 12 million visits. The North

West performs strongly with the volume of tourism day

visits under 40 miles, this could be attributed in part to the

regions successful Premiership Football scene.

Table 3: Tourism Day Visits - Volume and Distance Travelled 2018

Tourism Day Visits Volume and Distance Travelled

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References:

Booking.com (2019). Booking.com Gen Z Research Unpacked. Retrieved from https://partner.

booking.com/en-gb/click-magazine/bookingcom-gen-z-research-unpacked

Expedia Group Media Solutions (2018). Gen Z Travelers: More Open to Influence and

Inspiration then Other Generations. Retrieved from https://advertising.expedia.com/about/

press-releases/gen-z-travelers-more-open-influence-and-inspiration-other-generations

Globetrender (2020). Gen Z Travellers Think ‘A Lot’ about their Environmental Impact.

Retrieved from https://globetrender.com/2020/01/12/gen-z-environment-travel-2020/

Skift (2020). Megatrends: Defining Travel in 2020. Retrieved from https://skift.com/

megatrends-2020/

UNiDAYS (2018). Meet Gen Z: The Traveling Generation. Retrieved from https://cdn2.hubspot.

net/hubfs/4000540/4%20-%20unidays-content/reports/reports-pdf-versions/UNiDAYS-Ad-

Age-Travel-2018-Report.pdf

Anyone born in the mid-1990s and beyond is considered to be Generation Z. They comprise 32% of the global population, surpassing the number of millennials (Skift, 2020). This is the generation which has always known the presence of technology and as they become adults, travelling is increasingly important to them. The spending power of this generation is already US $143 billion (UNiDAYS, 2018).

Gen Z Is this Yorkshire’s next big travel opportunity?

What is important to Gen Z when travelling?

Experience, experience, experience!Gen Z is characterised by having a YOLO (you only live

once) state of mind and are activity and experience driven.

They are not destination driven. Booking.com (2019)

reported that 65% of Gen Z ranked exploring the world

as the most important way to spend their money. They

are always searching for their next great escapade from

adventure holidays to local food experiences and are keen

to travel abroad. UNiDAYS (2018) found that Gen Z travel

regularly throughout the year and they make last-minute

travel plans.

Do not underestimate the power of social mediaThis generation is influenced highly by social media.

They seek endorsements from trusted online sources

and influencers and in turn become micro influencers by

disseminating their own travels on social media (UNiDAYS,

2018). Skift (2020) found that the top 3 social networks

used by Gen Z in the UK are Instagram, Snapchat/YouTube

and Twitter. On the other hand, millennials in the UK

engage more with Facebook, WhatsApp and YouTube.

What does this mean for Yorkshire tourism?Gen Z is a potential market for international travellers

as Yorkshire can offer the diverse cultural experiences

these travellers are seeking. These travellers do not book

holidays to sit on a beach or relax in a resort. They want

to explore and learn about the destination and have new

experiences. These tourists are last-minute bookers and

influence where their families go on holidays. With this in

mind, Yorkshire tourism businesses can develop attractive

offers based around their requirements. If you engage with

this market now, you can create loyalty for your brand

through targeted social media and in turn Gen Z may

become influencers for your business.

Caring for the environmentThere is a strong environmental ethos when Gen Z travel.

They search for eco-friendly travel options and ethical

practices and are willing to pay more for this. They also

see their travel supporting local economies (Globetrender,

2020).

Yes to technology Gen Z engage more with smartphones when purchasing

travel compared to other generations (Expedia Group

Media Solutions, 2018). They are always online. They will

use channels such as booking via chats and virtual tours

and will seek out digitised personalised experiences.

Content-rich mobile messages and Gen Z friendly speak

(emojis and acronyms) are important in reaching this

market (Expedia Group Media Solutions, 2018).

Bleisure - business travel for leisure Expedia Group Media Solutions (2018) reported that 60%

of Gen Z business trips were extended for leisure holidays

and 88% save for bleisure trips. Given that Gen Z are

now coming into the workforce and having their financial

independence, it is expected that bleisure trips will grow.

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Visit England commission surveys periodically to collect data on the number of GB consumers who plan to take an overnight trip at key times throughout the year, such as Christmas and Easter. In 2019 this survey was conducted in the last week of March before the Easter weekend which ran from the 19 - 22 April.

Easter Activity

Visit England survey highlights 73%

73% of those aged under 45 said

they “definitely” or “might” take

a day trip over Easter compared

to 48% for those over 45.

13%13% would “definitely” take a

holiday or short break in England

over the Easter weekend up from

8% in 2018.

64%64% of parents were “definitely”

planning an overnight stay

compared to 28% without

children. For day trips the

percentage for parents increased

to 81% and for those without

children to 49%.

15% 15% of British adults said they

were “undecided” about whether

to take a trip. This represents

at 2% decrease in those

“undecided” from the survey

conducted in Easter 2018.

25%25% of adults in Britain

“definitely” planned to take an

overnight trip over the Easter

weekend at home or abroad,

up from 17% in 2018.

The survey also explored the reasons people had for

waiting to plan a trip and these are highlighted in the table

below. The most common reason for delaying plans was

to see what the weather was like and the least common

reason was not knowing where they’d like to go.

REASON FOR WAITING %

Waiting to see what the weather is like 31Waiting to see if I can afford it 27Waiting for someone else/for other people to make plans/book trips 24No real reason, just prefer to decide at the last minute 23Waiting to see if there are any deals/special offers 22Not sure where I’d like to go 19

Source: Visit England 2019

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For further information:

Contact

T 0114 225 2095

E [email protected]

Go to www.visitbritain.org

to explore a wide range of tourism insight reports.

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