Travel and Tourism Industry Market Brief 2012

An Expert's View about Travel, Tourism and Food Services in Austria

Posted on: 19 Jul 2012

Austrians took a total of 16.9 million holiday trips in 2010 as well as 3.2 million business trips.

Insert Report Title Here Page 1 of 4 Austria: Travel and Tourism Industry Market Brief 2012 Ingeborg Doblinger April 2012 Visit USA Market 2010 2011 2012 2013 (estimated) (estimated) Total Arrivals to the United 155,293 164,833 174,723 185,205 States Austrians took a total of 16.9 million holiday trips in 2010 as well as 3.2 million business trips. A total of 9.1 million of these trips were longer than 4 nights. A total of 5.9 million of these trips, which accounted for 65.1% were spent abroad, which is a decline of 1% vis-à-vis 2009. In general, Austrians prefer to spend their vacations abroad. They spent a record €7.7 billion ($10.7 billion) traveling abroad in 2010, where €251 million ($349 million) was spent for travel to the United States. For travel to the United States, Austrians spent approximately €3,200 ($4,448) per trip or €240 ($334) per night. We expect a slight increase in these rates in 2011. The United States ranked third in popularity among long-haul destinations in 2010 (meaning a destination outside Europe) for Austrian travelers. We expect the number of Austrian travelers to the United States to increase about 6% in 2011. For 2011 we expect an increase in travelers but less spending due to the downturn of the economy. Total arrivals from Austria in 2010 were 155,293. Austria ranked 35 overall for arrivals to the United States in 2010. The top ports of entry for Austrian travelers are, in order: New York JFK, Miami, Los Angeles, Washington D.C., Atlanta, Chicago, Boston and Dallas. The most popular U.S. destinations are New York, Florida (Orlando, Miami), California (San Francisco, Los Angeles, and San Diego), Nevada, Massachusetts, Illinois, Pennsylvania, New Jersey, Texas, and the national parks. The most popular recreational places in the United States are amusement/theme parks like Disney World, Disneyland, Universal Studios, Sea World, visiting historical places, sightseeing in cities, visiting museums and art galleries, visiting cultural heritage sites, ranches, shopping malls, dining in restaurants, water sports and golfing. Travel industry representatives see potential for adventure trips to Alaska, Washington State, Oregon, Colorado, Montana, Texas and Louisiana. New York, Florida, California and Las Vegas will remain strong attractions. Repeat travelers choose destinations like New England, the Carolinas, Tennessee, Georgia and the Great Lakes. In 2010, the Austrian long-haul sector of the outbound market declined by 1%. There was less demand for packages offered to South East Asia, South America, Africa and the Middle East. The U.S. Commercial Service – Your Global Business Partner. 800-USA-TRADE Insert Report Title Here Page 2 of 4 However, the United States had an increase of 4% of visitors from Austria. The appreciation of the Euro against the U.S. dollar and attractive packages offered by tour operators stimulated long-haul travel to the United States. The correlation between the weaker U.S. currency and the Austrian visitor to the United States was particularly noticeable, especially during the second half of the year. Industry experts forecast that Austrian long-haul pleasure travel will grow by 6% annually over the next 3 years if the dollar does not appreciate too much against the Euro. Expenditures will not rise at the same rate since the average length per trip and cost may be slightly declining due to the economic downturn. Expenditures per person traveling to the United States amounted to approximately €3,200 ($4,448) in 2010 vis-à-vis €3,100 ($4,309) in 2009. Visitors to the United States stayed an average of 15.7 days per trip in 2010, which is one day longer than the average day in 2009 and they spent €240 ($334) per day as compared to €232 ($320) in 2009, which is an increase of 3.4% over the previous year. Austrians who travel to the United States are generally 20-50 years of age with about 50% belonging to the upper middle class. Their length of stay in 2010 was approximately 15.7 days vis-à-vis 14.6 days in 2009. Travel mostly takes place during June, July, August and September and during the Christmas holidays. Almost 50% of all pleasure travel takes place during the months of July and August. About half are repeat travelers. About 50% of Austrian bookings to the United States are for pleasure, 25% for business, 10% for visiting friends and 15% for attending a conference/convention. Another 10% combine business and pleasure. Vienna and its surroundings account for the major part of travel to the United States. Stiff competition among the direct service carriers Austrian Airline’s Group in cooperation with United Airlines and Lufthansa (Star Alliance), Delta Airlines and Air France KLM and British Airways in cooperation with American Airlines, is expected to keep airfares low and attractive. The low cost carrier Air Berlin and Condor are also offering flights via several hubs in Germany to several destinations in the United States. Several carriers, including Austrian Airlines, KLM and British Airways, offered return trips to New York and Washington D.C. for €299 ($415) excluding taxes. The Star Alliance group and British Airways pick up the highest number of passengers originating from Vienna across the Atlantic. A strong Euro may encourage some people to take a trip to the United States, to take advantage of the attractive packages offered by travel suppliers, which are about 6% more compared to the previous year. Airfares decreased from €499 ($694)) in 2009 to €299 ($415)) for the cheapest round trip ticket to New York in 2010. The dollar slightly increased vis-à-vis the Euro during the same period. Austrians in the past have discovered the United States as a shopping paradise, where many products are sold at a considerably cheaper price. Austrians also discovered excellent wines and cuisine as well as a broad offering of cultural events, which now rank among the main attractions. Sports are in very high demand, as is adventure travel. Most Austrians, with the exception of older people, prefer to travel individually. The majority of Austrian travelers rent a car. The United States is in a strong position, as long as the dollar does not increase too much vis-à- vis the Euro, which would make traveling to the United States expensive for middle-class Austrians. The U.S. Commercial Service – Your Global Business Partner. 800-USA-TRADE Insert Report Title Here Page 3 of 4 Competition from South East Asia, the Middle East, South Africa, the Caribbean and South America is increasing, and continuous marketing is necessary to meet these challenges. Paid vacation is generally between 5-6 weeks depending upon industry and years of service. The number of Austrian arrivals in the United States increased from 149,082 in 2009 to 155,293 in 2010. English is widely spoken and is not generally a barrier for Austrian travel to the United States. The Austrian outbound travel market is wide open with virtually no restrictions. The use of credit cards is widespread, with VISA, MasterCard, American Express and Diners Club being the most popular. Tour operators and travel agencies do extensive promotional work and absorb most promotion costs. Increasing pressure comes from tourists who like to make their own arrangements and reservations (Internet, etc.). Tour operators have been successful so far in competing with packaged air travel, hotels and car rentals at very competitive prices, due to their annual purchasing power. E-specials and last minute offers are very popular due to the attractive prices. Given that most visitors from Austria to the United States are repeat visitors who prefer to travel independently, we expect that U.S. tour operators could profitably offer attractive fly and drive packages, short city trips for shopping and cultural events, guided tours, cruises, hotel and resort packages in lesser known areas, wilderness, river rafting or adventure trips, helicopter sight- seeing, wedding packages, etc. Educational trips/stays (e.g., language, MBA programs, pilot training) may have good potential. The traditional golf packages offered should be expanded to areas, which are less known to Austrians, e.g., the Carolinas, Virginia and others. The market for vacation club packages and time-share condominiums still has some potential in this market. The Visit USA Committee is a registered association in Austria. The association comprises approximately 30 members and is funded primarily by membership dues and profits generated from events. The Visit USA Committee’s website is Sub-Sector Best Prospects Fly and drive packages, short city trips for shopping and cultural events, guided tours, hotels and resorts in lesser known areas, visits to national parks, golf packages, eco tourism, specialties such as flights in small planes to the wilderness, river rafting, adventure trips, helicopter sightseeing etc, educational trips (language study, MBA, other studies, pilot training, etc.) and cruises (including river cruises). The U.S. Commercial Service – Your Global Business Partner. 800-USA-TRADE Insert Report Title Here Page 4 of 4 Web Resources Statistik Austria Guglgasse 13 A-1110 Vienna Tel.: +43 (1) 71128 7070 Fax: +43 (1) 715 68 28 ITA Office of Travel and Tourism Industries Visit USA Committee U.S. Commercial Service Contact Information Ingeborg Doblinger Commercial Specialist U.S. Commercial Service, Vienna Austria Email: Phone: +43-1-31 339 2120 Fax: +43-1-310 69 17 Website: The U.S. Commercial Service – Your Global Business Partner. 800-USA-TRADE
Posted: 19 July 2012

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