1. Canada’s Outbound Travel Market
David Redekop
The Conference Board of Canada

2. What we are going to talk about
Canada’s travel market performance
How Massachusetts has performed
Characteristics of Canadians visiting Massachusetts
Opportunities and prospects

3. Canadians 3 times more likely to take overseas leisure trip
The number of overseas leisure trips taken by Canadians
in 2011 was equal to 23% of the population.
Sources: USTTI, Statistics Canada and CBoC.

4. Americans would have made 85 million overseas trips in 2011 if they travelled as much as Canadians (Millions of overseas trips made in 2011 vs. would have made if ratio of trips to population were same as in Canada)
Source: US OTTI; Statistics Canada and the Conference Board of Canada calculations

5. Canada: Total Outbound leisure trips (‘000 of outbound leisure trips, all destinations)
Recession
5% CAAGR

6. Canada: Outbound leisure trips (% share outbound leisure trips)

7. Seniors will out number children by 2017 – first time in history
Thousands of Canadians 14 and under and 65+ by year
Sources: Statistics Canada and CBoC calculations

8. % of Total Outbound Leisure Trips made to US by age group
The older Canadians get, the more likely
they are to visit the US when travelling
outbound for leisure purposes.

9. Share of Trips by Air to US Growing (% share of trips to US from Canada by mode)
Forecast
Source: Statistics Canada; CBoC

10. US on five year upward trend (‘000 of 1+ nights leisure trips to US from Canada)
2009
Recession
5% - 6%
Source: Statistics Canada; CBoC

11. Performance of Massachusetts vs. other US N.E. States

12. Massachusetts has performed well since 2003
CAAGR visits 2003 to 2011
Sources: Statistics Canada and CBoC.

13. Canadian Visits to Massachusetts
3%-4%
Recession

14. Quebec & Ontario Key Geographic Travel Markets
Sources: Statistics Canada and CBoC.

15. Quebec/Auto; Ontario/Plane
% of visits to Mass. In 2011 by mode
CAA
Carriers

16. PAX from Canada to Logan Int’l.
+6.4%
74%
71%
67%
62%
57%
74% of PAX to Logan came from YYZ in 2012 – up from 57% in 2008 or pre Porter.
Source: US BTS 2008-July 2012; CBoC forecast from August 2012 through 2013

17. Modest Economic Growth forecast for Main Source Markets
% growth in Real GDP
Sources: CBoC forecast

18. 63% of Mass. visits from Ontario by travellers 45+; 44% from Quebec
% of visits in 2011 by age group
Quebec
Source: Statistics Canada and CBoC

19. Mainly Adult Visit Market
Quebec: 66% of visits to Mass. by adults only, 21% by adults and children
Ontario: 84% of visits to Mass. by adults only; 10% by adults with children

20. 2 in 3 staying in Commercial Accommodation

21. Short Stay Travel Market 8 in10 stay 1-6 nights
Share of visits to Mass. in 2011 by # of nights stayed

22. High Income Canadians Key Travel Market
‘000 of Canadians that visited N.E. USA at least once past 3 years by household income
Source: PMB 2012

23. Spend $400 - $500 per visit when visiting Mass.
Quebec: $383 CDN per person visit; $105 per person visit night when visiting Massachusetts
Ontario: $544 CDN per person visit; $125 per person visit night when visiting Massachusetts
Maine: $366 CDN per person visit
N.Y.: $372 CDN per person visit
Vermont: $216 CDN per person visit
N.E. $332 CDN per person visit
Source: Statistics Canada and CBoC

24. The Opportunities for Massachusetts

25. Leisure main purpose for Quebec; Business travel important for Ont.
Purpose of visit to Mass.
in 2011

26. Activities Quebec & Ontario Visitors engaged in while in Mass.
Activity
Quebec
Ontario
FISHING
900
3,300
VISIT A THEME OR AMUSEMENT PARK
10,900
4,100
GOLFING
1,400
GO TO A CASINO
9,300
4,200
BOATING-MOTOR/SAIL BOAT/KAYAK/CANOE/OTHER
20,800
5,200
ATTEND A SPORTS EVENT
48,900
20,900
ATTEND A FESTIVAL OR FAIR
11,300
21,400
VISIT A NATIONAL OR STATE NATURE PARK
54,800
25,800
VISIT A ZOO, AQUARIUM / BOTANICAL GARDEN
42,500
28,600
ATTEND CULTURAL EVENTS (PLAYS,CONCERTS)
20,300
31,800
PARTICIPATE IN SPORTS/OUTDOOR ACTIVITIES
63,300
40,800
GO TO A BAR OR NIGHT CLUB
68,000
50,500
VISIT FRIENDS OR RELATIVES
74,100
76,500
VISIT A MUSEUM OR ART GALLERY
110,800
82,100
VISIT A HISTORIC SITE
136,900
112,500
GO SIGHTSEEING
189,100
141,700
GO SHOPPING
213,700
152,900
Source: Statistics Canada
2011 and CBoC

27. Q2 & 3 key visit periods for Quebec & Ontario
Share of visits to Mass. in 2011 by quarter of visit

28. Geographic Markets Ontario and in particular Toronto and south
Air more than auto market in Ontario
Quebec and in particular Montreal but auto more than air market

29. Demographic Segments 45+ in all geographic markets
Professionals, managers
High income $100k+
Mainly adults without children – singles, couples, adults travelling with friends

30. Activity Based Segments

31. Sports: Armchair Athletes
Armchair athletes like sports, but only through the media. They follow their chosen sport through the season. They rarely exercise and do not consider themselves well informed about nutrition.
Toronto 940k fall in the “armchair athletes” category
Montreal 663k “armchair athletes”
Ottawa 236k “armchair athletes”

32. Sports and Active Segment
Spectator sports – professional hockey, basketball, baseball, football
Baseball: 29k watched baseball 10+ times in Toronto; 20K in Montreal.
Basketball: 22k watched basketball 10+ times in Toronto; 14k in Montreal.
Hockey: 39k watched hockey 10+ times, 66k in Montreal
Boating: 84k own a sail boat in Toronto – more than in Vancouver
Toronto and Montreal residents twice as likely to watch baseball or basketball as average Canadian resident (PMB)

33. Culture Segments Market Size of “Cultured & Active” segment:
This group reads a lot about travel and vacations, and enjoy trip planning. They are likely to choose exotic destinations. Their interests revolve around concerts and galleries, crafts and gourmet cooking.
Market Size of “Cultured & Active” segment:
Toronto 1.2 million residents
Montreal 650 thousand residents
Ottawa 240 thousand residents

34. Culture Segments
Live theatre: 65k attended a live theatre event 10+ times in Toronto; 58K in Montreal.
Classical music: 31k attended a classical music event 10+ times in Toronto; 16k in Montreal.
Art gallery: 349k attended an art gallery 10+ times, 35k in Montreal
High quality restaurants: 260k in Toronto ate in a high quality restaurant 10+ times past 12 months – 193k Montreal residents.

35. LGBT Market Toronto – 136, 000 same sex partners
Montreal – 96,000 same sex partners
Ottawa – 20,000 same sex partners

36. Luxury and Adventure Toronto – 1.4 million in category
This is an adventurous group who vacation in new and exotic destinations and are influenced by articles in magazines and newspapers. They fly business class and are likely to do active things on vacation, such as skiing, golfing, sailing and playing tennis.
Toronto – 1.4 million in category
Montreal – 918 thousand
Ottawa – 328 thousand

37. Reaching key markets
Work with major partners – they know the market, how to distribute and approach them
Canada’s travel trade is more like Europe’s than the US
National in scope, vertically integrated
Porter’s “Escapes” an exciting beginning to better package and market key US destinations like Massachusetts.

38. Reaching your key markets
Online niche marketing for specific target groups is a must – Canadians are connected.
Mobile apps of growing importance – 51% of Canadians visiting the US on vacation last summer carried a smart phone – 23% a tablet.
37% of these “smart” travellers were going to use their device to research what to see and do;
34% were likely/very likely to purchase something wit their smart device while visiting the US last summer on vacation.

39. Summing Up
Canada stronger outbound travel market than Europe or the US.
Massachusetts has performed better than average
Toronto air travellers key market due to distance and travel interests
Montreal auto travellers key market due to distance travel interests
Canadian boomers aged 45+ with HH incomes of $100k and who travel without children are key demographic market.

40. Summing Up Spectator sport a key market, particularly for Toronto area
Sailing and water sports huge market in Ontario in particular.
Culture & Active – more than 1 million in Toronto over 600 thousand in Montreal.
Market exists to attract lovers of music, opera, art in S. Ontario and Montreal area.
LGBT market is a growth market – particularly downtown Toronto.