TI News: An information service from Office of Travel & Tourism Industries (OTTI)

October 26, 2010

BOOKINGS FOR THE TOP THREE OVERSEAS TRAVEL EXPORT MARKETS

UNITED KINGDOM Travel Trade Barometer: After a Modest Start in 2010, Bookings Contracted in the Second Quarter

• United Kingdom tour operators reported in the U.S. Department of Commerce sponsored United Kingdom Travel Trade Barometer (as of July 21 – September 6, 2010) that bookings for travel to the United States in the second quarter 2010 decreased one to three percent, on average, compared to second quarter 2009.
• Summer bookings were projected to be higher, on average, compared the summer 2009. Half (50%) of the travel trade projected bookings to be higher, on average, compared to the same time last year. In contrast, two fifths (42%) of the trade projected bookings to be about the same as last summer. None of the trade projected a decline.
• Half of the trade projected bookings to be higher to close out the year. Approximately 17% projected fourth quarter bookings to be on par with last year. However, one quarter (25%) of the trade projected bookings to be lower, which pushed the average to be flat.
• Only one factor was listed to be a motivator, on average, for bookings in the next six months, travel safety.
• In contrast, 10 factors were listed as a deterrent to bookings to the United States in the next six months. For the third survey in a row, the top deterrent, on average, was the level of promotion by other long-haul destinations. Visa processing continues to rank high (2nd). The cost of airfare to fly to the United States rounded out the top three deterrents, on average.

JAPAN Travel Trade Barometer: 2010 Bookings Registered Strong Gains

• Japan tour operators reported in the U.S. Department of Commerce sponsored Japan Travel Trade Barometer (as of July 26 – September 6, 2010) that bookings for travel to the United States in second quarter 2010 soared, with the average increase reported to be up 10 to 15 percent.
• Just over three quarters (76%) of the travel trade projected summer bookings from Japan to the United States to be higher, on average, compared to summer 2009.
• Fourth quarter bookings were also projected to remain positive, with three quarters of the trade projecting higher bookings
• The top motivator listed for travel from Japan to the United States in the next six months was the exchange rate to the U.S. dollar. Deregulation of charter flights and the level of promotion by U.S. destinations and businesses rounded out the top three.
• The top deterrent was the global economy. The requirement to implement the Electronic System for Travel Authorization ranked as the third most concerning deterrent for the next six months.

GERMANY Travel Trade Barometer: Positive Growth Continues Through the Summer 2010, But Wanes in the Fourth Quarter

• According to the U.S. Department of Commerce sponsored Germany Travel Trade Barometer, Germany tour operators reported (as of July 21 – August 30, 2010) that bookings to the United States in the second quarter 2010 increased one to three percent, on average, compared to 2009 second quarter bookings. A strong majority (91%) of the travel trade reported increases in bookings
• On average, bookings from Germany to the United States were projected to continue to increase through the summer.
• However, the growth in bookings was projected to flatten in the fourth quarter. A slight majority of the travel trade projected bookings to be about the same as last year.
• On average, in the next six months, the German travel trade did not list a single factor as a motivator. The closest was air capacity, which was not impacting travel positively or negatively.
• The top rated deterrent was the level of promotion by other long-haul destinations. Entry and exit requirements were a close second, followed by natural disasters, reflecting concerns for the oil spill in the Gulf of Mexico.

NATIONAL EXPORT INITIATIVE:
To improve conditions that directly affect the private sector’s ability to export, on March 11, 2010 President Obama created the National Export Initiative (NEI). U.S. bookings data and travel motivators and deterrents outlined in the Travel Trade Barometer reports support OTTI’s ongoing economic analysis and are elements of OTTI’s toolkit to help achieve the goals of the National Export Initiative. To learn more about the NEI, you are encouraged to visit <http://www.trade.gov/nei/index.asp>.

BACKGROUD AND SOURCE: Travel Market Insights (www.travelmi.com) conducts the Canada, Japan, United Kingdom, Mexico and Germany Travel Trade Barometer programs. The U.S. Department of Commerce, Office of Travel and Tourism Industries, is a sponsor and was the initial developer of the barometer program. The Barometer program is conducted with support from the U.S. Commercial Service and various Visit USA Committees and additional sponsors.

Travel Market Insights conducts the Japan Travel Trade Barometer in conjunction with the U.S. Department of Commerce, Office of Travel and Tourism Industries, Sloan Travel and Tourism Industry Center/University of South Carolina and the National Tour Association. The Japan Travel Trade Barometer program is also conducted in partnership with Japan Tourism Marketing and the Japan Visit USA Committee.

The Travel Trade Barometer survey is conducted on a quarterly basis in Canada, Japan, the United Kingdom, Mexico and Germany and is available through subscription. Reports sent to subscribers include additional information, such as:

• Bookings - looking at the past quarter and the next two quarters for U.S. and competitive regional destinations;
• Short term bookings for more than five specific travel segments; and
• Over 15 motivators or deterrents for travel to the United States.

Specific (proprietary) destination data is also available through a subscription.

For more information on the Travel Barometer Program, please visit http://tinet.ita.doc.gov/research/programs/barometer/index.html

CONTACT:
U.S. Department of Commerce, International Trade Administration
Office of Travel and Tourism Industries (OTTI)
1401 Constitution Avenue N.W., Room 1003
Washington, D.C. 20230
Phone: (202) 482-0140
Fax: (202) 482-4279
Email: otti@trade.gov