Canada’s Outbound
Travel Market
David Redekop
The Conference Board of Canada
What we are going to talk about
Canada’s travel market performance
How Massachusetts has performed
Characteristics of Canadians visiting Massachusetts
Opportunities and prospects
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.
3
Sources: USTTI, Statistics Canada and CBoC.
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
Canada: Total Outbound leisure trips
(‘000 of outbound leisure trips, all destinations)
Recession
5% CAAGR
Canada: Outbound leisure trips
(% share outbound leisure trips)
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
7
% 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.
Share of Trips by Air to US Growing
(% share of trips to US from Canada by mode)
Forecast
Source: Statistics Canada; CBoC
US on five year upward trend
(‘000 of 1+ nights leisure trips to US from Canada)
2009
Recession
Source: Statistics Canada; CBoC
5% - 6%
Performance of Massachusetts vs.
other US N.E. States
Massachusetts has performed
well since 2003
CAAGR visits 2003 to 2011
Sources: Statistics Canada and CBoC.
Canadian Visits to Massachusetts
3%-4%
Recession
Quebec & Ontario Key Geographic
Travel Markets
Sources: Statistics Canada and CBoC.
Quebec/Auto; Ontario/Plane
% of visits to Mass. In 2011 by mode
CAA
Carriers
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
Modest Economic Growth forecast for
Main Source Markets
% growth in Real GDP
Sources: CBoC forecast
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
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
2 in 3 staying in Commercial
Accommodation
Short Stay Travel Market
8 in10 stay 1-6 nights
Share of visits to Mass. in 2011 by # of nights stayed
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
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: 2011 Statistics Canada and CBoC
The Opportunities for
Massachusetts
Leisure main purpose for Quebec;
Business travel important for Ont.
Purpose of visit to Mass.
in 2011
Activities Quebec & Ontario
Visitors engaged in while in Mass.
Activity
Quebec
Ontario
900
3,300
VISIT A THEME OR AMUSEMENT PARK
10,900
4,100
GOLFING
1,400
4,100
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
FISHING
Source: Statistics Canada
2011 and CBoC
Q2 & 3 key visit periods for
Quebec & Ontario
Share of visits to Mass. in 2011 by quarter of visit
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
Demographic Segments
45+ in all geographic markets
Professionals, managers
High income $100k+
Mainly adults without children – singles, couples,
adults travelling with friends
Activity Based Segments
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”
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)
Culture Segments
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
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.
LGBT Market
Toronto – 136, 000 same sex partners
Montreal – 96,000 same sex partners
Ottawa – 20,000 same sex partners
Luxury and Adventure
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
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.
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.
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.
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.
