
Passport Marketing

Global Insights
“Ambition by itself never gets anywhere until it forms a partnership with hard work.”
- James Garfield, President of the United States

COVID-19

COVID-19 Insights
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November 8, 2021, non-US citizen travelers will be permitted to enter the US through a land border or ferry terminal for tourism. Select countries may need to provide proof of COVID-19 vaccination status.
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No clear global safety definition of when a country reaches critical COVID-19 mass vaccination or immunity level.
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US government continues to lead global conversations on identifying COVID-19 international travel protocol. Presently, protocol varies country by country.
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Vaccine availability varies by country and administration is prioritized based upon group risk factors.
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Top four major concerns in order of importance about traveling domestic and international are:
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COVID-19 related restrictions on travel.
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Concern about contacting/spreading COVID-19.
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Activities not available due to COVID-19 restrictions.
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Cannot afford a trip this year.
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Local resident travel is an important short term initiative until benchmark COVID-19 recovery is achieved.
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Group / Business travel has become part of the three tentpole recovery plan for leading destination management organizations: Domestic, International and Group / Business.
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Domestic leisure travel recovery faster than international leisure travel recovery.
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Domestic leisure weekend travel is more robust than mid-week leisure travel and group / business.
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Domestic leisure travel in rural markets is experiencing robust resurgence.
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Florida and Texas leading US domestic leisure travel recovery.
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One international traveler spend is equal to three domestic travelers.
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COVID-19 case numbers remain elevated in select Asian markets but remain low in other key US travel markets.
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Twelve out of 14 US key international travel markets have more than 70% of their population vaccinated with a least one dose.
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International travel recovery projected to reach 2019 levels by 2024/25.
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Estimation international travel from select European and Latin markets projected travel recovery is 50% in 2023 and 90% by 2024/25.
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Asia travel recovery initially will progress slower than European and Latin America. This is significantly impacted by diminished airlift to US.
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Projected international travel recovery will begin with US boarder countries, Canada and Mexico, and seasoned traveler European countries, United Kingdom and Germany.
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Strongest rebounding long haul travel from Asia markets will be Japan, South Korea and Singapore.
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China's previously high outbound travel growth rate to the US is presently and significantly impacted by COVID-19 and political pressures, but still represents a potential growth market.
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Initial international travel will focus on short haul travel vs. long haul travel.
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Initial travel interests in travel will focus on minimizing COVID-19 exposure and focus on shared experiences of “What am I going to do?” vs. destination focus on “Where am I going to go?”
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Families with young children express stronger intent to travel.
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Younger generation expresses stronger intent to travel.
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Men express stronger intent to travel than women.
COVID-19 Opportunities
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Prioritize rebuilding by focusing on local residents, then domestic leisure, domestic groups / business and then international leisure.
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Important to educate partners on destinations and experiences according to prioritized consumer market segments.
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Important to create assets and incentives to make it easier for clients to sell and promote your product.
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Leverage and customize social media and local channels, market by market to tell your destination and experience stories.
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Leverage key influencers to tell your destination and experience story, and to stimulate group conversations.
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Prepare to coordinate and activate partnerships with airlines, tour operators, third party resellers and multiple communication channels simultaneously. Think multiple partners, collaboration.
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Work collectively with city, state and national organizations to maximize share of voice and access up-to-date market conditions.
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Top priority market segments: Families with Young Children, Younger Generation and Men.
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Top travel themes: Slow, Adventure, Discovery, Rejuvenation.
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Top priority travel motivators: Road Trips, National Parks, Theme Parks, Food & Wine, Luxury and Live Performances.

China

China Insights
China Opportunities
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Visa required and there are processing challenges.
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10 year Visa issuance between USA/China is provides opportunities to build repeat visitation.
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Only 6% of airlift recovered compared to 2019 capacity.
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Only 8% of Chinese travelers considering US Travel compared to 18% globally.
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Continuing expansion from primary to second tier markets.
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Shortening booking time frame among Fully Independent Travelers.
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Online purchasing platforms are transactional channels of the future.
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Impact of Fully Independent Travel outpacing Group Travel.
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Lack of Tour Operators destination and product knowledge beyond first time visitation Group Travel.
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Managing seasonality of high volume travel.
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Need for product development beyond gateway destinations and first-time visitation experiences.
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Family travel represents 30% of outbound travel, revised government “two birth” policy will continue to stimulate family travel.
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Millennials without children in China have high self-esteem and see themselves as opinion leaders, with a strong reliance on social media.
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Women representing 59% of outbound travel is expanding interest in Luxury travel beyond the “shopping” experience.
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Business + Leisure Travel is significant, with China being the largest outbound business travel market in the world.
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Meeting + Incentive Travel is a growth opportunity for long-haul travel with most major tour operators.
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Smart Phones operating as significant means of communicating, researching and making financial transactions.
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Continued expansion into second tier markets focusing on Group and First-Time Experiences Travel.
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Digital and video asset development for online platforms featuring new travel product: Family, Millennial Female, Luxury, Fly & Drive, Entertainment, Self Guided “Solo”.
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Creation of Business + Leisure Travel and Meetings + Incentive Travel communication strategies.


Japan

Japan Insights
Japan Opportunities
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Participating Visa Waiver country.
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Only 75% of airlift recovered compared to 2019 capacity.
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Only 6% of Japanese travelers considering US travel compared to 18% globally.
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Increased inbound demand to Japan is putting pressure on air seat capacity to USA during peak travel periods.
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Over 60% of travel is booked online and will continue to expand.
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Rising importance of senior travel and escorted travel due to shifting population demographics.
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Demand for all-inclusive tours growing among all segments, represents 40% of outbound travel.
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Self-Guided “Solo” travel accounts for nearly 30% of outbound travel market.
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Females traveling with girlfriends featuring Culinary/Food & Wine, Shopping Well Being/ Spas continues to be major outbound travel segment.
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Growing interest in Luxury and “Once in a Lifetime” travel experiences.
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Theme Parks/Attractions have resurged in popularity among young people, couples and three-generation families.
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Strong interest in Culinary/Food & Wine, Well Being/Spa and Entertainment activities.
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Domestic Japan destinations are real competitors for overseas travel.
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Smart Phones operating as significant means of communicating, researching and making financial transactions.
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Digital and video asset development for online platforms featuring new travel product: Senior, Luxury, Entertainment, All Inclusive and Self-Guided “Solo”.


South Korea


South Korea Insights
South Korea Opportunities
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Participating Visa Waiver country.
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80% of airlift recovered compared to 2019 capacity.
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Over 51% of the population travel overseas in a given year.
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Robust number of non-stop direct flights and non-direct flights to USA.
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Increased competition in the market with low-cost carriers introducing new destination options.
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Maturity of the market creates a demand of more inspirational, thematic, sophisticated and diverse travel products: Family, Luxury and Entertainment.
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“Solo”, family, mother/daughter and senior travel continue to be important outbound travel segments with strong interest in: National Parks, Culinary/Food & Wine and Well Being/Spas.
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Business + Leisure Travel and Visiting Friends and Family Travel continue to remain significant travel motivators.
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Highest active social media penetration in Asia consisting of 82% of the population.
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Smart Phones operate as a significant means of communicating, researching and making financial transactions.
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Digital and video asset development for online platforms featuring new travel product: Family, Mother/Daughter, Luxury and Entertainment.



India Insights
India Opportunities
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Product positioning on online platforms.
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Digital and video asset development for online platforms featuring new travel product: Family, Luxury and Entertainment.
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Development of Family + Millennial travel product.
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Creation of Business + Leisure Travel and Student Travel (Higher Education) communication strategies.
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Travel Trade training in primary and secondary markets on new travel product: In Market and FAMS.
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Collaboration and integration with strategic initiatives with other BUSA marketing disciplines (Brand Marketing, Social Media, Promotions, Publicity, Research, etc.).
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Visa required and there are processing challenges.
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100% of airlift capacity recovered compared to 2019.
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20% of Indian travelers considering US travel compared to 18% globally.
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Majority of flights from India to USA are typically long haul via international hubs with points of entry being Los Angeles, San Francisco and New York.
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Minimal consolidation of national travel providers.
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Average vacation stay is approximately three weeks.
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Over 750 million people are under the age of 35 with expanding urbanization developing into new secondary markets.
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Family Travel focusing on nuclear families continues to be a growing outbound travel segment with heavy emphasis on Theme Parks/Attractions, Culinary/Wine & Food and Entertainment.
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Growing interest in Luxury experiences.
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Business + Leisure Travel and Students (Higher Education Overseas Schooling) continue to remain significant travel motivators.
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Research online via desktop and mobile still popular, however, more than half of long-haul travelers purchase travel product offline.

Southeast Asia

Southeast Asia Insights
Southeast Asia Opportunities
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Taiwan and Singapore: Participating Visa Waiver countries.
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Taiwan: Large number of annual outbound travelers, USA number one ranking long-haul destination of 574,512 visitors.
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Taiwan: Women representing 59% of outbound travel is expanding interest in Luxury travel beyond the “shopping” experience.
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Singapore: Large number of annual outbound travelers, travel to USA is 148,107 visitors.
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Singapore: 70% of outbound travelers participate in luxury vacations.
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Singapore: Tour Operators relied upon for planning and purchasing high cost luxury travel.
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South East Asia: High repeat travel rate is creating a demand of more inspirational, thematic, sophisticated and diverse travel products: Family, Luxury, Entertainment and Self Guided “Solo” products.
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South East Asia: Business + Leisure Travel and Meetings + Incentive Travel are significant.
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South East Asia: Smart Phones operating as significant means of communicating, researching and making financial transactions.
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South East Asia: Digital and video asset development for online platforms featuring new travel product: Family, Luxury, Entertainment and Self Guided “Solo”.
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South East Asia: Creation of Business + Leisure Travel and Meetings + Incentive Travel communication strategies.
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South East Asia: Travel Trade training on new travel product: In Market and Familiarization Tours.