Contents this edition:

European Markets

• This month: The Dutch & Belgium Tourist to Thailand part 1 - Booking behavior
• Trends European Internet Distribution Travel & Tourism Services
• The "European Tourist" does not exist...

Asian Statistics

• Thailand new Marketing plan 2009

Niche Markets

• Understanding Holistic Tourism to market Spa & Wellness
• The Luxury Market defined...or not?

M4H writes...

• Hybrid Marketing is the future, but how is your future budget?

Survey

• Is there a special topic or subject that you would like to see highlighted in one of the next editions?

European Markets

We have filtered out the most important figures for you:

• Family, friends & relatives are still most important source of idea to visit Thailand. 30,7% got the idea to visit Thailand from family, friends and relatives who have visited Thailand before. This also directly affects the choice of accommodation, destination and planned things to see and to do. In second place comes the internet with 17,1%.
• The internet is the far most used source of information with 31,1%. At a distance, family, friends and relatives come second with 15,9%.
• At the question "Where have you booked your accommodation?", about 45% responded that they have booked this through a travel agent or Tour Operator in the Netherlands and Belgium. Half of the number of these people have booked that through the internet site of that agent.
• Another 13,5% made use of other internet sites to book their hotel (Thailand information sites, hotel booking sites etc.) and nearly 21% approached the hotel directly.
• 70% of the people are willing to book their Thailand trip through the internet next time.
• The top 5 of most important reason to visit Thailand is: 1. Roundtrip (34,7%), 2. Beach holiday (13,6%), 3. Family & friends (11,3%), 4. Cultural holiday (8,2), 5. Escaping European winter (3,8%).
• Most Dutch/ Belgium stay 3-4 weeks (35,7%) or 2-3 weeks (31,3%) in Thailand.

Comparable research shows that these outcomes are slightly projectable to other Western European countries with the exception of France and Italy.

Source: Marketing4Hospitality & Euro Leisure B.V.- The Netherlands 2008




Source: Centre for Regional Tourism Research - Denmark - 2008



For this research, in total 4000 tourists were interviewed in Thailand in 3 different seasons (October, March and December), both quantitative and qualitative.

The nationalities surveyed are:
Dutch, German, English, Scandinavian, French, Spanish, Swiss/ Austrian and Italian.

German tourists
Overall, the Germans like to travel organized and like to book organized tours. Germans tend to compare Thailand with their home country. The non-English speaking Germans face many language problems as there are only few Thai that speak German. This explains why there always is a German speaking guide accompanying the German groups. Germans tend to complain most about the cultural differences between the Thai and Germans.

French & Spanish tourists
The French and especially the Spanish tend to travel organized. Relaxing seems to be the main needs of these target groups, rather than active travel or adventure. Both countries are very interested in culture and architecture. This also explains that more French go to the cultural North than to the beach scattered South.
Thai food has been criticized much by these countries as food is an important aspect in their own culture. French and Spanish people face a language problem as well in Thailand. There are hardly any Spanish backpackers. This is caused by the fact that young Spanish do not have much money. The tourists from these countries in general appreciate a little more luxury.

Dutch & Scandinavian tourists
These countries represent all kinds of tourism: from luxury organized tourist to low budget backpackers. Good weather is an important aspect for their holiday as their own country does not have so good weather. Both nationalities are very pleased with the Thai food. There are hardly any language problems for them in Thailand and these countries can adapt to the Thai culture quite easily. This could be the reason for their only few complains about standards.
The lack of authenticity has mainly been mentioned by Scandinavian and Dutch.

English tourists
The interviewed younger English tourists like to do more than 1 Asian country in a holiday by travelling around. This mostly concern the real backpackers. They are also looking for authenticity.
The elder English tend to stay at one place during their holidays and appreciate good quality beaches very much. This is the resort type tourist which likes to travel organised. Food in general is found good. The low prices are a very important stimulus to visit Thailand.

Italian tourists
The Italians are very much interested in culture and beautiful beaches. There are only few Italian backpackers to be found in Thailand. The Italians mainly go on holiday in July/ August. The Italians who go abroad outside this period mainly concern the more wealthy social class.

Each nationality has different reasons for their visit to Thailand

Reason for visit Thailand = Beach
Germany, Scandinavia and Italy score a little higher than other countries on the question if they come to Thailand especially for beach.

Reason for visit Thailand = Culture
The Italian, French and Swiss are the most interested in culture. They score far above European average. Much less interested in culture are the Dutch, English Scandinavian and Germans.

Reason for visit Thailand = Nightlife
Very striking is the high percentage of Dutch and French who said to come to Thailand mainly for nightlife against the average. The high percentage of French can be explained by the fact that these people like to go out for diner, shows, and theatre.

Reason for visit Thailand = Active features
The Dutch, French, Scandinavian and Swiss/ Austrian appeared to be the most active countries as they score the highest on active reasons for visit.

We therefore may conclude that there is no "European" tourist as each European country requires a separate marketing strategy.

Asian Statistics

Revenue Targets For 2009

• International visitor arrivals to Thailand are expected to contribute 630 billion baht in foreign exchange earnings to the Thai economy. This represents a 5 per cent increase in tourism revenue over 2008. Total international visitor arrivals for 2009 is forecasted to be approximately 16 million.
• Domestic tourism is expected to contribute a projected revenue of 407.6 billion baht - a 5 per cent increase over 2008. In 2009, domestic travelers are expected to make a total of 87 million trips.

Marketing Objectives

• Firmly establish Thailand's market positioning as a "Quality Destination" - one that is clean, convenient and safe, and is perceived as being unique.
• Focus on achieving economic growth by:
  • Retaining market share
  • Expanding into new markets
  • Highlighting value for money. This is one of Thailand's key destination strengths and a key marketing attribute.
  • Highlighting Thailand's vast range of quality product and services that offer tremendous value for money, especially luxury products and services and activities that enhance the value perception of the destination
  • Enhancing the capabilities of TAT's strategic partners to generate a 5 per cent increase in tourism revenue or 630 billion baht in foreign exchange earnings from international visitor arrivals to Thailand. TAT forecasts approximately 16 million international visitors for 2009.
    
    Domestic tourism is expected to contribute a projected revenue of 407.6 billion baht to the Thai economy. In 2009, domestic travelers are expected to make a total of 87 million trips.
    
  
  
• Maintain Thailand's competitive edge by pursuing product differentiation and by strengthening the "Thailand" brand
• Promote widespread international awareness of Thai tourism products and services in key markets by leveraging the "7 Wonders of Amazing Thailand" theme

Key Target Markets
TAT is targeting the following:

• 'Rising stars' such as Russia, India, China, the Middle East and Spain, short-haul markets
• Short-haul markets such as Vietnam and Indonesia
• Existing markets in Western Europe and key markets in Asia such as Japan, Singapore, Korea and Hong Kong
• Northeast Asia, the ASEAN region, South Asia, South Pacific, Europe and The Americas (includes the United States, Canada and Latin America) as well as regional market clusters

Niche Markets

Market characteristics:

• Most holistic tourists are urban-dwelling AB or C1, in professional, high-pressured jobs.
• Holistic tourism is a means of product diversification for new or mature destinations. This is one of the reasons that it has taken off well in Europe. Unlike most sectors in the industry, holistic holidays are product-, not destination-led.
• It is also helps to create seasonal spread, as holistic holidays attract international visitors throughout the year. Ayurveda, for instance, is said to work best in the monsoon season, when traditionally tourism numbers to Asia are reduced.
• One of the most consistent aspects of holistic holidays across the market is their ability to attract repeat visitors.
• Holistic operators rely heavily on testimonials from the media and participants to promote their product. The media, direct marketing, the Internet, and word of mouth are key marketing tools used in this sector as well as good aftercare.
• Although an ageing population is increasingly a big factor driving medical, wellness and spa tourism, it is 'the baby boomers (who are now in their late 30s to mid 50s) that are another key target market for the holistic tourism sector. Holistic tourists are professional women, mainly in their 20s, 30s and 40s, seeking a work life balance/break from a stressful job.
• Up market destination spas, and a sprinkling of hotels and resorts now offer holistic therapies, such as Indian head massage or reflexology. Many five-star hotel spas, such as the Six Senses Spa, are now offering free yoga and pilates classes as add-ons. The standard is improving, and more hotels, such as Per Aquum's hotels in the Maldives and Sri Lanka and Orient Express' Maroma hotel in Mexico, are employing well-known yoga teachers to run retreats.
• Asia's strength in the holistic market is in its authenticity - many of the alternative therapies are indigenous and part of a cultural approach to wellbeing. It also has a wide range of offerings from top-end destination spas to small guesthouses offering alternative practices and therapies to backpackers/independent travelers. Thailand, India and Sri Lanka are particularly associated with holistic offerings on the continent. India is profiled as holistic tourism's spiritual home, and Japan - home of shiatsu - as a good example of product diversification adding a holistic bent to an established market.
• Significantly, among the spa buzz words for 2008 are 'Ayurveda', 'Body/Mind/Spirit', 'Holistic' and 'Wellness'. Spa Finder has identified similar market trends to the holistic market's industry insight. Spas make a more mainstream market open to holistic offerings by allowing tourists to try something new, but in a familiar environment. These tourists may then be a market for holistic holidays.

Trends for 2008 which cross over with the field of holistic holidays are:

• Detox: spas' range of detox solutions include relaxation, all-organic diets, sweating (exercise, steams and saunas), and the purging of emotional baggage through one-on-one or group therapy work.
• Spa retreats: look for offerings such as wellness workshops, spiritual retreats, boot camps, or 'find your inner artist' getaways to energise resort and hotel spa programmes, attracting solo travelers with group events, workshops and shared meals.
• Bring the family: recognising the growing priority among parents to raise their children in an active, healthful, communal environment, more spa lifestyle communities will offer structured outdoor/exercise activities and healthy eating options for children.
• Social spa-ing: community is the new privacy; the search for solitude will be trumped by the natural desire for community, and a growing awareness that social interaction is an important aspect of health.
• Green spas: the spa's mantra is extending past the 'self' to include others and the planet. Spas and spa consumers are getting serious about terms like 'natural', 'organic', 'holistic', 'green', 'eco-friendly', and 'sustainable'. Guests can expect authentic indigenous treatments, using local staff, and therefore contributing to the community.

The luxury traveler is characterized by (one or more of) these characteristics:

• Luxury travelers are middle-aged and between 45-54 years old
• Also the age group of 50+ knows many luxury travelers, because this group has the available time and the money
• Few luxury travelers book their holiday through the internet, however the source for information is mostly internet
• Emerging rich is a growing segment in the luxury market, these emerging rich are often young people with high-paying jobs
• Over 60% always or often stays in luxury hotels
• Favorite activities during a luxurious holiday are: luxury cruises, yacht rentals and staying in luxurious hotels/resort/spa
• High expenditures, especially in the US and secondly in Asia.

Generating markets for luxury travel are above all the European market and the US market, although the Russian market as well as the Chinese and Indian are also becoming more important. For luxury holidays to Thailand the European markets, like the UK and Scandinavian market are important, but also the US market is of high importance.

Although the world is characterized by a global recession the luxury market is expected to continue to grow the coming years. This growth is supported by the increase of the high net worth of individuals.
This growth will be attended with a number of trends:

• Diversification of the luxury travel market, luxury holidays will not only be accessible for the rich and famous, but also for the more average traveler.
• Probably partnerships will be formed between hotel developers and luxury brands, like the Armani Hotels and Resorts.
• Luxury is not only characterized by material goods and money, but rather by experiences and uniqueness.
• The age of the luxury traveler is moving downwards, the 40-year olds and the Generation X are the new luxury travelers and will even travel with the whole family to luxurious destinations.
• A specific segment in luxury holidays will develop further and will become more popular: cultural luxury holidays
• Development of destination clubs, members pay a fixed annual fee and get unlimited access to private residences, yachts and tours worldwide
• Also the airline industry will develop special packages for the luxurious travelers, with lounges, in-flight massages and special terminals.

The luxury market will develop according to all these trends. In addition to that, some destinations are already tipped as the new/popular luxurious destinations for 2020: Sao Paulo, Toronto, Seoul, Stockholm, Cape Town, Doha and The Baltic States.

M4H writes...

The internet should become a standard issue in your sales and marketing portfolio and should get as much attention as the conventional distribution channels. Many purchase decisions are made by internet impressions of the products offered. The figures mentioned in this newsletter show a never ending increase for the future.

On the other hand, the conventional channels such as travel agents and Tour Operators remain important to tourists as nearly half of them book their trip through this channel or make use of the product presented on the website of the Tour Operators. Thereupon, conventional promotional media such as travel magazines, trade fairs and news media should also not be forgotten as the impact is still measurable high.

How to operate multi channel but deal with your limited marketing budget?
Although Internet Marketing is relatively cheap and quick compared with approaching agents in Europe, sales calls, Travel Trade Fairs, personal visits or familiarization trips, a special budget should be reserved for web design, online ads, SEO and maintenance.

Thereupon, cut down on your budget for conventional marketing is also not an option. What next?

Getting an oversees marketing representative who can work your conventional distribution channels in Europe will save a lot of time, money and efforts. Many marketing representative offices also know how to carry out internet marketing, have their own network or dispose of own booking websites that they can use for these purposes.

Dividing budget in such manner will keep you operating hybrid:
  A. Conquer the internet and be ahead of those hotels that see the internet just as necessary evil
  B. Maintain and expand the conventional channels such as tour operators, travel agents, media etc.

Survey

Is there a special topic or subject that you would like to see highlighted in one of the next editions?
Please let us know by the checkboxes below.
We will do our best to get hold on the best up to date (market) information about that topic to publish it at one of our next Trends4Travel editions!



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