Presentation on theme: "Canada’s Outbound Travel Market"— Presentation transcript:
1Canada’s Outbound Travel Market David RedekopThe Conference Board of Canada
2What we are going to talk about Canada’s travel market performanceHow Massachusetts has performedCharacteristics of Canadians visiting MassachusettsOpportunities and prospects
3Canadians 3 times more likely to take overseas leisure trip The number of overseas leisure trips taken by Canadiansin 2011 was equal to 23% of the population.Sources: USTTI, Statistics Canada and CBoC.
4Americans 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
5Canada: Total Outbound leisure trips (‘000 of outbound leisure trips, all destinations) Recession5% CAAGR
15Quebec/Auto; Ontario/Plane % of visits to Mass. In 2011 by modeCAACarriers
16PAX 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
17Modest Economic Growth forecast for Main Source Markets % growth in Real GDPSources: CBoC forecast
1863% of Mass. visits from Ontario by travellers 45+; 44% from Quebec % of visits in 2011 by age groupQuebecSource: Statistics Canada and CBoC
19Mainly Adult Visit Market Quebec: 66% of visits to Mass. by adults only, 21% by adults and childrenOntario: 84% of visits to Mass. by adults only; 10% by adults with children
21Short Stay Travel Market 8 in10 stay 1-6 nights Share of visits to Mass. in 2011 by # of nights stayed
22High Income Canadians Key Travel Market ‘000 of Canadians that visited N.E. USA at least once past 3 years by household incomeSource: PMB 2012
23Spend $400 - $500 per visit when visiting Mass. Quebec: $383 CDN per person visit; $105 per person visit night when visiting MassachusettsOntario: $544 CDN per person visit; $125 per person visit night when visiting MassachusettsMaine: $366 CDN per person visitN.Y.: $372 CDN per person visitVermont: $216 CDN per person visitN.E. $332 CDN per person visitSource: Statistics Canada and CBoC
25Leisure main purpose for Quebec; Business travel important for Ont. Purpose of visit to Mass.in 2011
26Activities Quebec & Ontario Visitors engaged in while in Mass. ActivityQuebecOntarioFISHING9003,300VISIT A THEME OR AMUSEMENT PARK10,9004,100GOLFING1,400GO TO A CASINO9,3004,200BOATING-MOTOR/SAIL BOAT/KAYAK/CANOE/OTHER20,8005,200ATTEND A SPORTS EVENT48,90020,900ATTEND A FESTIVAL OR FAIR11,30021,400VISIT A NATIONAL OR STATE NATURE PARK54,80025,800VISIT A ZOO, AQUARIUM / BOTANICAL GARDEN42,50028,600ATTEND CULTURAL EVENTS (PLAYS,CONCERTS)20,30031,800PARTICIPATE IN SPORTS/OUTDOOR ACTIVITIES63,30040,800GO TO A BAR OR NIGHT CLUB68,00050,500VISIT FRIENDS OR RELATIVES74,10076,500VISIT A MUSEUM OR ART GALLERY110,80082,100VISIT A HISTORIC SITE136,900112,500GO SIGHTSEEING189,100141,700GO SHOPPING213,700152,900Source: Statistics Canada2011 and CBoC
27Q2 & 3 key visit periods for Quebec & Ontario Share of visits to Mass. in 2011 by quarter of visit
28Geographic Markets Ontario and in particular Toronto and south Air more than auto market in OntarioQuebec and in particular Montreal but auto more than air market
29Demographic Segments 45+ in all geographic markets Professionals, managersHigh income $100k+Mainly adults without children – singles, couples, adults travelling with friends
31Sports: 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” categoryMontreal 663k “armchair athletes”Ottawa 236k “armchair athletes”
32Sports and Active Segment Spectator sports – professional hockey, basketball, baseball, footballBaseball: 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 MontrealBoating: 84k own a sail boat in Toronto – more than in VancouverToronto and Montreal residents twice as likely to watch baseball or basketball as average Canadian resident (PMB)
33Culture 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 residentsMontreal 650 thousand residentsOttawa 240 thousand residents
34Culture SegmentsLive 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 MontrealHigh quality restaurants: 260k in Toronto ate in a high quality restaurant 10+ times past 12 months – 193k Montreal residents.
35LGBT Market Toronto – 136, 000 same sex partners Montreal – 96,000 same sex partnersOttawa – 20,000 same sex partners
36Luxury 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 categoryMontreal – 918 thousandOttawa – 328 thousand
37Reaching key marketsWork with major partners – they know the market, how to distribute and approach themCanada’s travel trade is more like Europe’s than the USNational in scope, vertically integratedPorter’s “Escapes” an exciting beginning to better package and market key US destinations like Massachusetts.
38Reaching 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.
39Summing UpCanada stronger outbound travel market than Europe or the US.Massachusetts has performed better than averageToronto air travellers key market due to distance and travel interestsMontreal auto travellers key market due to distance travel interestsCanadian boomers aged 45+ with HH incomes of $100k and who travel without children are key demographic market.
40Summing 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.