Leisure Group Travel: 2010 Outlook & Questions to Travel Industry Professionals

Source: WRTA Partner - Leisure Group Travel
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USA – Major tour operators and European tourist officials express cautious optimism about a rebound in transatlantic travel for 2010
By grouptravelnewsreview

In response to questions posed by Leisure Group Travel, several industry pros indicate the worst of the decline may be over. Sharing their opinions are U.S. representatives of the national tourism organizations of Germany, Austria, Switzerland, Britain, Spain and Cyprus. Tour operators represented include Globus, Travel Bound, Collette, Travel Priorities and Virgin Vacations USA.

The forecast for American travel to Europe next year is not exactly rosy in some quarters of the industry, but tour operators and national tourism office representatives are cautiously optimistic about a rebound and believe the worst may be over. Michael Gigl, director of the Austrian National Tourist Office, North America, said, “I don’t expect things to improve rapidly, but I think we’ve seen the bottom. ”Citing a downturn of 10 to 15 percent in the first part of 2009, he said the drop in American tourists to Austria has been gradually leveling off, with numbers down only three percent in July. Gigl said he’s hoping 2010 will bring a double-digit increase over 2009.

Mike Schields, director of group sales and emerging markets for Globus Family of Brands, views 2010 with optimism, noting that booking volume is up 30-40 percent over 2009 levels. “Deposits are up 100 percent, which indicates buyers are more serious and have sat on the sidelines long enough. They have sacrificed their vacations in 2009 and are jumping back into the market.”Schields said Europe in 2010 will be generally less expensive than in 2009 because of the dollar’s improving strength against the pound and euro, and “a soft travel environment accounts for more favorable rates from suppliers.” Because of the fixed cost of cruising, Globus’ Avalon Waterways river cruise division is leading the recovery. France, Spain and Oberammergau also are selling well. Tommy Ryder, head of the groups department at Travel Bound, said,

“Bookings for 2010 are already higher than those for 2009. Europe is still our #1 destination, and there the strong seller is Oberammergau, which started slowly but is gaining momentum.” Ryder said group travel to Italy is rebounding for 2010, and “we are also seeing much more interest in Spain than previously.” France and the UK continue to be popular destinations for group travel, he added, and “bookings for Greece are on the rise, particularly pre-/post-cruise.”

SPAIN SNAPSHOT
Patricia Wood Winn, public relations manager of the Tourist Office of Spain in Chicago, said supplier feedback indicates an upturn in American visitors for 2010, with group cruises into Barcelona a big seller. Spurring travel to Spain, she said, will be Holy Year celebrations in Santiago de Compostela, an important religious pilgrimage destination. The city’s ornate cathedral is home to the reputed relics of St. James the Greater and attracts an annual average of 2.5 million visitors, a figure expected to quadruple in 2010, decreed by the Pope to be a Jubilee Year because the feast day of St. James falls on a Sunday (July 25).

Thanks to a dip in hotel prices caused by a rash of new hotels that need to be filled, “Spain is doing well in comparison to other destinations,” said Morris Stroz, president of Travel Priorities in Skokie. “Spain is still a bargain. The hotel rates in Barcelona are the lowest I’ve ever seen.” Besides Spain, Travel Priorities sells trips to Eastern Europe, Italy, England and France. Stroz said lower hotel rates in Italy and a better exchange rate against the British pound are promising signs. Travel Priorities handles many repeat groups and maintains a diversified client base, from medical to student, but group sizes are smaller in 2009 than they were last year, Stroz said. It’s hard to predict what 2010 will bring, he said, because “there’s a lot of last-minute stuff people don’t think ahead of time. It just doesn’t work like that anymore.” Nigel Osborne, president of Virgin Vacations USA, also reports late commitments as people are keeping money close to the vest. He said enquiries are up 30 percent over last year, but a lot of these are shoppers. Trips are slightly shorter, averaging 10 days instead of 12 or 14.

With tour prices in some cases lower than a decade ago, now is the time to travel, Osborne said. He noted that Virgin’s 2009 six-night “London Fling” is only $669, compared to $939 for its six-night “London Jaunt” in 1998. Good deals are also available in France, Ireland, Central Europe, Spain and Greece, Osborne said.

BRITAIN BOUND
Paul McDonagh, business development executive at VisitBritain in NewYork, is optimistic about a rebound for American travel to Britain in 2010 and sees things picking up. “I hope the worst is behind us. ”McDonagh said VisitBritain works closely with group operators and mentioned religious travel as “a new area we’ve been developing since last year.”

He said attending the first World Religious Travel Expo in Orlando last year with such partners as Visit Scotland, Canterbury Cathedral and St. Paul’s Cathedral (celebrating its 300th anniversary in 2010) was “good for us.” McDonagh looks forward to even more networking opportunities this November in Reno when the second religious expo is held in conjunction with the NTA convention. Britain is also going after the adult educational market, targeting university alumni groups and organizations like Smithsonian and Elderhostel. McDonagh said the annual Travelearning.org conference, set for February in Providence, R.I., will provide a platform for suppliers to meet with tour planners. The outlook for U.S. traffic to the island of Cyprus next year “looks promising,” according to Tasoula Manaridis, director of the Cyprus Tourism Organization in New York. “In 2010 we will be celebrating the 50th anniversary of Cyprus’ independence.

Many important events, such as concerts, exhibitions, theater performances and festivals, will take place all over the island the whole year.” Manaridis said more tour operators are including Cyprus in their programs, noting that Central Holidays and Group IST, a major religious tour operator, have recently printed brochures dedicated to Cyprus. Dan Sullivan, president of Collette Vacations, said, “We have seen a surge for 2010. With booking incentives in place, we are up over 57 percent in group reservations across the board. The economy will be better, but not robust, at least through the first quarter of 2010.” Sullivan said Collette’s new “Discover Tuscany” in February is doing well, as is Explorations by Collette, the small-group division (16-24 passengers). He also is bullish on the bank market and the religious sector, particularly to Oberammergau.

PASSION PLAY SCENARIOS
Germany, Austria, Switzerland and other Central European countries expect a significant tourism boost from the once-a-decade Passion Play in the Bavarian village of Oberammergau. The monumental event will be staged from May 15 to Oct. 3. Ricarda Lindner, regional manager of the Americas for the German National Tourist Office, said, “The Passion Play will be a huge part of the overall groups coming to Germany in 2010. The play is a great opportunity to showcase Germany… Therefore, we have incorporated it in all our activities and communication channels in 2009.” Lindner said she is optimistic about an increase in U.S. tourists in 2010 and points out two other major events the 200th anniversary of Oktoberfest in Munich and European Capital of Culture festivities in the Ruhr region of Western Germany. Mirko Capodanno, Central USA & Canada manager of the Swiss National Tourist Office, said, “Of course, Oberammergau is important for us,” noting that Switzerland is only two hours away. Capodanno said Switzerland has recently seen an increase in U.S. travelers after a decline since fall of 2008. “I have seen that people tend to book more all-inclusive packages, where they can better foresee travel expenses. This clearly speaks well for group travel.” From bargains in Spain to special events in Germany, opportunities abound for group travel planners with Europe on their radar in 2010. Slowly improving economic conditions, combined with pent-up demand for a European vacation, may well give us something to cheer about.

(Source : LeisureGroupTravel.com)