United States Department of Commerce Office of Travel and Tourism Industries United Kingdom Pilot Promotion Program
Illinois Governor’s Conference Cathleen Johnson & Julie Heizer March 29, 2005
What’s the “Back Story?”
International Statistics
INTERNATIONAL ARRIVALS TO THE UNITED STATES
Arrivals in Thousands
1998r – 2003r
Mexico
60,000 50,000 40,000 30,000 20,000 10,000 0
46,369 48,504
Canada
51,219 46,907
Overseas *
43,525 41,213
24,466 25,975 21,833 23,698 19,117 18,026 13,422 14,110 14,648 13,507 12,968 12,660 9,249 9,928 10,596 11,567 11,440 10,526
1998r
1999r 2000r
2001r
2002r
2003r
Source: U.S. Department of Commerce, ITA, Office of Travel and Tourism Industries; Secretaria de Turismo & Banco de Mexico for Mexico; & Statistics Canada, Mexico figures may be revised again pending a Banco review Note: All arrivals are for one or more nights •Overseas includes all countries except Canada and Mexico • r = revised Mexico figures received from Banco de Mexico in 2004
USA MARKET SHARE OF WORLD ARRIVALS & RECEIPTS
New 1993r – 2003r
Percent
Arrivals
Receipts
20 15 10 5 0
19 93 r 19 94 r 19 95 r 19 96 r 19 97 r 19 98 r 19 99 r 20 00 r 20 01 r 20 02 r 20 03 pr
17.5 16.4 15.5 15.8 16.6 16.0 16.4 17.3 15.5
13.9
12.6 6.0
9.1
8.5
8.0
8.1
8.0
7.5
7.6
7.5
6.9
6.2
Source: U.S. Department of Commerce, ITA, Office of Travel & Tourism Industries; World Tourism Organization r = revised using the September 2004 WTO figures and December 2004 OTTI figures
PERCENTAGE CHANGE IN ARRIVALS FOR TOP
INTERNATIONAL MARKETS TO THE U.S. 2004 / 2003
Market Canada Mexico * Overseas U.K. Japan Germany France South Korea Australia Italy Netherlands Brazil India Total International* January – November Total (000) January – November 04/03 % Change
12,958 3,465 18,539 3,930 3,451 1,228 712 577 468 422 392 342 291 34,962
9% 5% 14% 10% 21% 13% 14% 1% 30% 16% 15% 12% 14% 11%
Source: U.S. Department of Commerce, ITA, Office of Travel & Tourism Industries * - Mexico & Total International monthly arrivals data are not comparable to all other markets, as Mexico arrivals are under reported monthly. Overseas excludes Canada and Mexico.
PERCENTAGE CHANGE IN ARRIVALS FOR TOP OVERSEAS MARKETS FOR 2003 – 2005(rp)
2003 United Kingdom Japan Germany France Korea, Rep. Of Australia Italy Netherlands Brazil Ireland 3,936 3,170 1,180 689 618 406 409 374 349 254 % % Change 2004(p) Change 2005(p) 03/02 04/03 3% -13% -1% -6% -3% 0% 1% -3% -14% -2% 4,298 3,778 1,324 778 621 522 467 426 388 335 9% 19% 12% 13% 1% 29% 14% 14% 11% 32% 4,599 4,080 1,263 825 671 559 509 460 415 358 % Change 05/04 7% 8% 7% 6% 8% 7% 9% 8% 7% 7%
Source: U.S. Department of Commerce, ITA, Office of Travel & Tourism Industries (OTTI)
rp = revised projections based on estimates developed by OTTI
INTERNATIONAL ARRIVALS TO THE UNITED STATES AND PROJECTIONS
Arrivals in Millions
1997-2003r actual & 2004 - 2007(p)
52.2
60
51.2 46.9 43.5 41.2
50
47.9
46.4
48.5
50.0 45.0 47.4
40
30
1997r 1998r 1999r 2000r 2001r 2002r 2003r 2004(p) 2005(p) 2006(p) 2007(p)
Source: U.S. Department of Commerce, ITA, Office of Travel & Tourism Industries; Banco de Mexico; Statistics Canada p = projection; Originally issued April 2004 and revised in October 2004 based upon OTTI estimates r = revised figures due to changes in Mexico arrivals
United States Department of Commerce Office of Travel and Tourism Industries United Kingdom Pilot Promotion Program
The Current Story
A Quick Review
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Campaign Objectives
– Improve perception of U.S. as desirable travel destination – Increase visitation and future intent to visit – Create a campaign model for future markets
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Consumer Strategies
– Compelling advertising and promotions to stimulate reconsideration of US as destination – PR to build anticipation, maximize and extend impact of the campaign
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Industry Strategies
– Develop an umbrella platform for industry efforts, and a coop program that offers participation opportunity at all levels
A Well-Received Plan
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Overwhelming enthusiasm and support for a national campaign Excitement about the creative platform from the destinations Unanimous support from film studios and MPAA for campaign Solid support from U.S. and UK associations – particularly TIA and Visit USA-UK
Key Partnerships
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Our Web Content Partner: TIA - Donated URL: SeeAmerica.org.uk - Primary call-to-action for campaign – TIA database repurposed through search engine – TIA tie in with SeeAmerica‟s Treasures
Key Partnerships
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Our Fulfillment Partner: Visit USA-UK
– Travelplanner is print fulfillment – “0845” number on advertising – Travelplanner cover designed to promote the campaign – 8 pages of advertising donated to coop program
Travelplanner
Why Begin in the UK?
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The UK is a relatively mature market for U.S. travel:
– Strong familiarity and interest
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The challenges – maintaining high awareness and motivating repeat travel Competitors have more trouble closing the sale USA has opportunity to pre-empt competitors through strong call-to-action
How Brits View the U.S.
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The USA has a superlative image in most areas that are important motivators And it delivers more than expected The recommended strategy:
– Communicate excitement through variety – Demonstrate broad appeal – Include more than just the coasts
• To address scenery weakness • To encourage repeat visitors
The USA as Holiday Destination
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Already seen as a place with lots of choice But choice within certain defined parameters, focused more on cities and theme parks Familiar to the UK traveler, especially via TV and films Thus less obviously long-haul because of sense of familiarity
The Creative Strategy
Capitalize on the strong affinity that the British already have for American popular culture and reawaken a desire to experience the excitement of the destination for themselves
Overall Appeal of Creative Concept
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Research supports the power of using movies as creative theme:
– It makes the USA unique and distinctive – A distinctive and ownable creative concept – Provides a framework to build the excitement and involvement – Taps into familiarity and reinforces the accessibility and diversity of the USA
„Titles‟ Execution Proved To Be Highly Effective
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Broad appeal Movies are a uniquely American property, and are integral to the appeal of this route Most informative in promoting the rich diversity The „Titles‟ device allows us to cover immense variety, yet provides an underlying theme to link it all together The different movie styles add to the range and depth of options
“You‟ve Seen The Film, Now Visit The Set”
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Clever encapsulation of the idea Memorable and distinctive Uniquely links campaign to America as the home of movies Welcoming words and tone of voice Reminds the audience how friendly the States can be
Call To Action
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Opens up the different possibilities of what to do in the States Encourages further research on the part of the holidaymaker The URL proved memorable Call to action very powerful: “This is the one that would get me out of my chair and to the internet to check it out…….”
Call to Action SeeAmerica.org.uk 0845 45678 48
Posters
The Cooperative Program
Co-operative Program Objectives
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Create opportunities for partners to leverage the DOC‟s spend in UK market Provide cost-effective opportunities to participate in the campaign for a wide spectrum of partners Enhance and provide lift to existing programs
Co-op Program Structure
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Opportunities included:
Coop TV Advertising - Web site exposure - Travelplanner exposure - Online direct email
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Selling the Program
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VAA and DOC vetted the program with members of the Board and other potential partners to ensure viability Announcement of the program to over 5,000 contacts through TINews, DOC lists, associations and media Custom sales website developed Follow up calls and consultation with over 300 prospects
Co-op Results
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80 participants
Over $2 million in Contributions
Promotional WebSite & Internet Marketing/Media Partner
MicroSite
Online Brand
Call to Action
Fulfillment
Iconic America Landing Page with Iconic Sponsor Placement
Online Marketing Strategies
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Internet Brand Awareness Behavioral marketing Web site Traffic Generation Online Media Exposure Direct Response (600K UK consumers) Search Engine Ranking and Key Word Media
The Public Relations Program
A Reminder of our Framework
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Five vertical themes that reflect the appeal and diversity of the U.S.
– Outdoor – Family – City/Urban – Shopping – Iconic America
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Initiatives that can work alone or tie directly back into our creative theme
Covering All the Bases • Ongoing consumer and trade PR
outreach
– News Bureau/press office function – Seasonal and trend driven initiatives – Campaign launch (ad amplification and
consumer media event)
• Consumer Promotions
- See America
• Trade Shows/Industry Events • Crisis Communications
- WTM- ABTA
– Media and retail partnerships
Syndicated Radio Release
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Three radio packages in tandem with national releases distributed to national and regional radio stations; aired in October/November, February and March Radio stations offered spokespersons to communicate message or use within existing program Spokespersons delivered key tourism messages:
- First release: Shopping – Karen MacDonald, Taubman Centers - Second release: Movies and Music - Third release: Movies and Food – Erik Wolfe, International Culinary Tourism Association
Consumer Media Launch
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Reception for target media and travel trade at BAFTA mid-December with Holiday theme Screening of the ad campaign prior to the new Disney release – „National Treasure‟ Over 100 attendees: trade and consumer media, tourism industry partners and Premier Partners
GMTV Promotion Reached 7 Million Daily Viewers
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3 x day on-air promotion in the week leading up to the Academy Awards (2/21/05) on ITV‟s premier breakfast show On-air personality visited 5 U.S. destinations (Miami, Los Angeles, Las Vegas, New York and North Carolina) for pre-recorded broadcasts Presenters gave clues to viewers to win trips to destination and £10,000 prize Viewers phoned in on a premium rate number SeeAmerica.org.uk posted on GMTV‟s Web site for week of promotion
Retail Partnership – First Choice
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First Choice in-store promotion during March 24-hour only special offers (e.g. 15% on all U.S. vacations purchased) Capitalizes on existing U.S. icons in-store First Choice “hypermarkets” delivering the All American experience – plus a fun family day out Local press outreach to increase foot traffic
What’s Next?
Year Two Program
2005 - 2006
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$10 million appropriated by Congress The Tourism Promotion Advisory Board - Year Two in the UK - Research 2nd market – Canada or Japan Currently conducting qualitative research study to inform DOC Decision early May for July 1 budgeting