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.