OVERALL

2010/2011 Regional Totals

Increase in overnights from 2009/2010 to 2010/2011: +95,792
Percent increase: 3%

Total Overnights Offered by Tour Operators

	Fly/Drive	Accommodation	Motorcoach	Small Group	Packages
BENELUX	157,427	165,564	152,680	6,214	4,987
FRANCE	70,290	216,883	57,000	57,060	39,432
GERMANY	139,464	143,299	204,000	23,691	50,401
ITALY	72,690	485,961	251,080	13,618	19,099
UNITED KINGDOM	82,525	182,281	332,160	52,747	87,999
TOTAL	522,396	1,193,988	996,920	153,330	201,918

Total Overnights Offered by Tour Market

	2009/2010	2010/2011	Increase	Percentage
BENELUX	445,901	486,872	40,971	9%
FRANCE	418,911	440,665	21,754	5%
GERMANY	563,157	560,855	-2,302	0%
ITALY	833,120	842,448	9,328	1%
UNITED KINGDOM	711,671	737,712	26,041	4%
TOTAL	2,972,760	3,068,552	95,792	3%

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MARKET BREAKDOWN

ITALIAN MARKET

Fly/Drive . . . . . . . . . . . . . . . . . . . . . . . . . . . . .72,690
Accommodations . . . . . . . . . . . . . . . . . . . . . . .485,961
Motorcoach . . . . . . . . . . . . . . . . . . . . . . . . . . .251,080
Packages . . . . . . . . . . . . . . . . . . . . . . . . . . . .19,099
Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13,618
TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .842,448

Increase in overnights from 2009/2010 to 2010/2011: +9,328
Percent increase: 1%

After a year that saw a dramatic increase in overnights year-over-year of nearly 212,000, the 2010/11 TRIP Report for Italy shows a more modest increase of 9,328 overnights or 1%.  92 Italian travel professionals are featuring the RMI region in 2011, keeping stable with 2009/2010 figures.  There are several operators that have recently begun featuring the region (Versis America, Bikers American Dream, Altrimenti Viaggi, Blueberry Travel and Aemme Viaggi), while others have unfortunately terminated business (Rallo Worldwide, Sprintours, Itinerando Tour, Travel West, and Nautilus).  Italian inbound US visitation is forecasted to be up 5% in 2011, reaching nearly 880,000 travelers.

Fly-Drive Tours, Packages and Motorcoach/Escorted Tours offered to the region are down by a combined 30,840 overnights mainly due to tour operator budget cuts.  Often times, this results in fewer product pages in catalogues and/or frozen web offerings, which in turn results in lower number of overnights.  There are still signs of the ongoing economic crisis, presenting a confused consumer not knowing exactly how to behave during uncertain times. Obviously the medium/high social economic classes have suffered less, and this is becoming the main target for the majority of travel professionals, who get the most rewarding results out of this demographic.

Group Tour overnights have doubled, reaching over 13,500 overnights mostly as a result of the improvement of motorcycling product based on groups.  This type of product is becoming a growing positive trend in Italy and the RMI region is becoming a preferred destination for motorcycle enthusiasts.  10 travel professionals, three new, are now offering this option in the RMI region.  Accommodations offered in the region have increased by 42,705 overnights this year due to the fact that tour operators are listing more locations and thus more lodging options.

The strong Euro is helping to ease any economic concerns and afford continued travels to the USA, which maintains its status as the preferred long haul destination for Italian consumers.  The RMI region is perceived as a genuine, wild and unique USA destination able to offer an unconventional “once in a lifetime” vacation.  Touring by car or motorcycle on self-drive itineraries is the preferred way to travel the region, followed by escorted in-country language guides for those not comfortable with the English language. 

Overall there is a good return of itineraries promoted by travel professionals in the market place: National Parks are leading the product range, followed by western heritage (rodeos are highly requested) and Native American experiences. Ranches are considered the most “exotic” ingredient during the RMI holidays. Among the outdoor activities for the region, horse riding remains the most attractive, followed by hiking.  Winter season is peaking up nicely with snowmobiling on top, followed by dog sledding and all skiing challenges, including heli ski.

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UK MARKET

Fly/Drive . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82,525
Accommodations . . . . . . . . . . . . . . . . . . . . . . .182,281
Motorcoach . . . . . . . . . . . . . . . . . . . . . . . . . . .332,160
Packages . . . . . . . . . . . . . . . . . . . . . . . . . . . . .87,999
Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52,747
TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .737,712

Increase in overnights from 2009/2010 to 2010/2011: +26,041
Percent increase: 4%

Overnights from the UK market increased by 4% this year, which is very encouraging given the current economic situation.  It still remains our number one market in visitation.  Although the recession officially ended in late 2009, recovery is slow and the country is still feeling the effects of it.  The current government is implementing huge spending cuts in an effort to reduce the deficit and consumers are cautious with their money.  Airfares have increased significantly, however, there remains a significant portion of the population who are reasonably affluent.  Most travelers to our region are drawn from this sector. 

The specialist tour operators who our region relies on report great interest in our region and healthy bookings.  This is not the case with operators who rely on other regions in the world.  North American Travel Service reports that interest in our region is at an all time high.  They are working to increase our product in their 2012 brochure.  The increased demand means operators are expanding their programs, starting with the most well known destinations, Yellowstone and Grand Teton National Parks, and the Black Hills.  However, there are a growing number of people who have visited those areas and want to explore further.  We are currently working with several other operators to expand itineraries and include other parts of our region. 

The great interest in our region is driven by, and reflected in, media coverage.  Yellowstone is particularly popular, followed by the Black Hills and Glacier National Park as the most sought after destinations.  Operators who have seen solid business to the Black Hills, for example, are now looking to expand to nearby areas.  Wyoming and South Dakota have seen increases in overnights.  Montana has seen motorcoach overnights increase, some of which was because operators moved out of the park to stay in West Yellowstone.  But Wyoming did not see a decrease in the motorcoach category because other operators were ready to replace them. 

The US is still the #1 Long Haul destination for the UK traveler.  It is still a better value than Eurozone vacation destinations. Due to favorable exchange rates Brits are getting almost 25% more per Pound than two years ago when visiting the US.   Our region remains a popular destination due to the UK traveler’s interest in eco-friendly and non-traditional experiences.  Ranch vacations are still very popular.  Second, third and fourth time travelers here are showing increased interest in Idaho and want to explore the less well known parts of our region.   The US Department of Commerce predicts UK visitation to the US will increase between 3 to 4% each year over the next four years.  This market should remain strong. 

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GERMAN MARKET

Fly/Drive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .139,464
Accommodations . . . . . . . . . . . . . . . . . . . . . . .143,299
Motorcoach . . . . . . . . . . . . . . . . . . . . . . . . . . .204,000
Packages . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50,401
Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23,691
TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .560,855

Increase in overnights from 2009/2010 to 2010/2011: -2,302
Percent increase: 0%

Although remaining steady with 126 tour operators offering RMI product, the 2010/11 TRIP report recorded an overall slight decrease of 2,302 overnights for the German market, going from 563,157 overnights in 2010 to 560,855 in 2011.   While the Fly/Drive, Accommodation and Group categories were down, Motorcoach and Package offers both saw increases. 

The increased number of Motorcoach overnights (up 44,200) can be attributed to the fact that the major tour operators are offering more of this product type both in print and online, while at the same time increasing departures for successful tours. It’s not thought that this is a fundamental change in the way consumers travel, which is Fly/Drive heavy in this market, but rather just an increase caused by demand for the region. 

Fly/Drive overnight numbers were down almost 20,000 overnights in 2010/11, but many new tours to the region were created this year.  A trend for themes such as authenticity and nature can be seen in this market.  German tour operator Canusa has recently developed a “Taste of Travel” special Fly/Drive routings and typical accommodations combined with activities that are meant to provide a more meaningful and authentic experience. 

Package overnights increased slightly this year.  Specialized product is becoming more attractive and tour operators are catering their offerings to allow travelers the freedom of choice in the tour, accommodation and attractions that are part of their holiday.  Group numbers dropped almost 14,000 overnights in part due to the unsuccessful winter seasons in the last two years where many ski operators minimized their ski group offers.

A trend has emerged for tour operators to be more inclined to include hotels and other lodging options with their travel agency or online back-end booking tool (which RMI does not have access to) and do not make the effort to display hundreds of hotels publicly.  This is the main reason for the decrease of almost 18,000 overnights in accommodations for 2010/11.

It is noted, especially with smaller, niche operators that online product offers have increased throughout the marketplace, while many are cutting back their printed brochure.  On the other hand, German wholesalers such as Dertour and FTI are keeping their print brochures in high circulation, while also extending their online inventory. The small, specialized tour operators who are especially important for our region, face a strong price competition with the big guys, and many did not survive the economic recession of the last couple of years and had to either close shop or discontinue US product offerings, which obviously had an effect on overnight numbers in several categories.

The outlook for 2011/2012 is generally positive, with a stable economy, a profitable exchange rate and people looking for the authentic experience that the RMI region provides.  For 2011, Germany is forecasted to be in the top 10 for international inbound visitation to the US, with an expected increase of 3% to nearly 1.8 million visitors.

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BENELUX MARKET

Fly/Drive . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .157,427
Accommodations . . . . . . . . . . . . . . . . . . . . . . .165,564
Motorcoach . . . . . . . . . . . . . . . . . . . . . . . . . . .152,680
Packages . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4,987
Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6,214
TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .486,872

Increase in overnights from 2009/2010 to 2010/2011: +40,971
Percent increase: 9%

Total overnights in the Benelux market increased 9%, the largest increase in all of RMI’s markets.  There were significant increases in overnights in all four states from the Benelux due to the continuing increase in the number of tour operators featuring the RMI region. The trend continues for smaller specialized tour operators to gain market share and compete successfully with larger companies because of their online presence.  Recently these small companies have improved their websites with more detailed destination information and better booking engines.  Dutch travelers increasingly research their own vacations and compose their own tours and demand tailor made holidays.  Therefore, fly drives are gaining in popularity while motorcoach and packaged tours are under increased pressure. This year, because of the addition of overnights by Thomas Cook, motorcoach overnights increased overall by 3%, but that is not the expected trend in the future.

Tour operators continue to produce magazine-style brochures, without rates, highlighting destinations that inspire travel and portray an experience, therefore, motivating clients to view websites where more in depth information can be accessed.  Social media, blogs and review websites are gaining in popularity.  Over 60% use the internet as the main inspiration to decide on their travel plans while only 33% use a tour operator brochure.  The increase in fly/drives and accommodations, which offer more freedom for clients to customize their travel, reflects this trend. 

New operators include Americas Tentlodges (offering fly/drives), Thomas Cook (offering accommodations and motorcoach), Travel2Explore (groups), USA Fiets Tours (packages), Joker (groups) and VTB Reizen (groups).  Of these, Joker and Travel2Explore are likely to expand. 

Three operators no longer offer our region: Hotelplan (which resulted in a loss of 1,500 fly drives in Wyoming), Baobab and Sawadee.  The latter two companies only offered one tour to our region and only had small group overnights.  The loss of these operators has not significantly affected our region.  Because their clients are loyal to these companies, they needed to change the tours in order to keep it attractive to their clients.  Kuoni Belgium likewise reduced their accommodations and motorcoach overnights but increased their fly/drives in an effort to offer a variety of tour options to their loyal customers. 

On average the Dutch have 25 paid vacation days per year and Belgians have 20 days.  The Benelux region has the highest percentage of travelers in the world.  Most (81%) Dutch take at least one traveling holiday each year and most travel internationally.  The percentage of vacations taken abroad increased faster than the percentage of domestic holidays over the past 30 years. Their average travel budgets increased over the past year as well.  We expect interest in our region from this market to remain high.  Although consumers are more careful with large expenditures, skipping a vacation is not an option to these dedicated travelers.  The US is still their most popular long haul destination and we are confident that product and interest will continue to grow in this market.

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FRENCH MARKET

Fly/Drive   . . . . . . . . . . . . . . . . . . . . . . . . . . . . .70,290
Accommodations . . . . . . . . . . . . . . . . . . . . . . .216,883
Motorcoach . . . . . . . . . . . . . . . . . . . . . . . . . . .57,000
Packages . . . . . . . . . . . . . . . . . . . . . . . . . . . .39,432
Group . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57,060
TOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .440,665

Increase in overnights from 2009/2010 to 2010/2011: +21,752
Percent increase: 5%

The French market’s overnights increased 5% overall, which reflects the steadily increasing interest in our region and the French traveler’s increasingly sophisticated knowledge of what we offer and their desire to experience what is authentic and unique.  Niche tour operators are responding to the continued demand by expanding their offerings in our region and they are flourishing.  Large operators offering mass-market group tours are suffering. 

The most notable increases were in accommodations and fly/drives, while the decrease in motorcoach and the fact that packages remained flat were not a surprise due to the continuing shift to a demand for tailor made trips.  Tourmonde closed its doors this past year, which contributed to some of the drop in motorcoach overnights (5,040).  When the French first began to explore our region they visited on escorted motorcoach trips.  As they visit our region more and become more familiar with it, and because younger travelers are more comfortable with speaking English, they demanded custom trips, so we see an increase in fly/drive overnights.  Many still choose to book through an experienced niche operator because of their expertise. 

Three tour operators offered product in our region for the first time this year: Equinoxiales (part of Jetset Voyages group), Terres d’Aventure and My Luxury Travel and all offer fly/drives.  Equinoxiales also offers accommodations and packages, Terres d’Aventure also offers groups and My Luxury Travel also offers accommodations.  The overnights for these companies are modest but show potential for huge growth and are another indicator of increasing interest in our region.

There was no dramatic change in production for any operator.  Business is doing very well so operators decided to keep more or less the same products or itineraries because they seem to work well for their clients.  This is extremely encouraging because one of the biggest challenges our overseas offices face is to make sure that not only do they feature our region, but that this perpetuates. 

In 2010 France had over 1.3 million visitors to the US, which was an 11% increase over 2009.  France was again in the #4 spot for overseas visitors to the US.  The US Department of Commerce predicts France’s visitation will grow between 5 and 10% each year for the next three years.  French visitors continue to be attracted to our region by the wide range of authentic experiences we offer. We expect France to remain a strong market and to exhibit steady growth over the coming years.