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Working with Receptive Tour Operators
Florida Governor’s Conference on TourismSeptember 23, 2014
www.rsaa.org
Presentation Highlights
International Travel and Tourism to the U.S.
Top Source Markets and Long Term Forecast
What is a Receptive Tour Operator
Why Partner with a Receptive Tour Operator
Guidelines on Working with a Receptive Tour Operator
How Can You Tap Into This Market?
Q & A
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But First – What Is RSAA?
The tagline says it all…
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But Don’t Take My Word For It…
First U.S. Trade Association with Export Promotion Partnership (EPP)Seats on Travel and Tourism Advisory Board & International Trade Advisory Council
RSAA’s partnership with Visit USA – Europe allowsthe groups to work together to address issues impactingEuropean travelers and the businesses that service them
Reciprocal Membership agreement with BraztoaBrazilian operators at Summit; trade missions to Brazil
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Why is International Business Important?
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International Travel & Tourism to the U.S.
Spending by international visitors totaled a record breaking
$180.7 billion
Generated a $57.1 billion trade surplus
Supported over 1.3 million jobs
2013 Travel Receipts
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Overseas Visitors…
International vs. Domestic Visitors
4 – 7 times MORE!
Length of Trip is
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International vs. Domestic Visitors
2-5 times greater!
Higher participation rates…
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International vs. Domestic Visitors
For attractions, car rentals and hotels
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A Few Quick Statistics…
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Top Ten Markets –Visitation 2013Rank Country 2013 Arrivals %
Variance
1
Canada 23.39 M 3%
2
Mexico 14.34 M 1%
3
United Kingdom
3.84 M 2%
4
Japan 3.73 M 1%
5
Brazil 2.06 M 15%
6
Germany 1.92 M 2%
7
China 1.81 M 23%
8
France 1.50 M 3%
9
South Korea 1.36 M 9%
10
Australia 1.21 M 7%
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Top Ten Markets –Spending 2013Rank Country 2013 Spending %
Variance
1
Canada $27 Billion 6%
2
Japan $18 Billion 9%
3
United Kingdom
$13.7 Billion 8%
4
Mexico $10.5 Billion 5%
5
Brazil $10.5 Billion 13%
6
China $9.8 Billion 12%
7
Germany $7.5 Billion 9%
8
Australia $6.1 Billion 12%
9
France $5.9 Billion 11%
10
India $5.6 Billion 14%
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Forecast Arrivals in Millions
Source: National Travel and Tourism Office, U.S. Department
ofCommercewww.rsaa.org
Long Term Forecast for the Top 10 Overseas
Visa Waiver Countries in 2018Country
2018 Arrivals (000)
% change 2013/18
% change 2003/18
United Kingdom 4,446 16% 13%
Japan 3,921 5% 24%
Germany 2,136 11% 81%
France 1,710 14% 148%
South Korea 1,735 28% 181%
Australia 1,509 25% 272%
Italy 926 10% 127%
Spain 678 9% 139%Netherlands 632 7% 69%Sweden 580 22% 174%
Source: National Travel and Tourism
Office, U.S. Department of Commerce www.rsaa.org
Country2018
Arrivals (000)
% change 2013/18
% change 2003/18
Brazil 3,082 50% 783%
China 4,310 139% 2,642%
India 1,320 54% 385%
Venezuela 977 24% 244%
Colombia 1,169 56% 317%
Argentina 1,017 48% 575%
Russia 601 79% 864%
Israel 373 13% 50%
Ecuador 288 13% 141%Dominican Republic 255 7% 67%
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What is a Receptive Tour Operator?
Contracts net rates with supplier partners – hotels, attractions, transportation companies
Packages these services as preset itineraries OR offers services as individual components for flexibility
Markets and sells B to B to international tour operators
Arranges both FIT (independent / individual travel) as well as group services
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Typical Products / Services offered by RTO’s
FIT hotel, attraction, sightseeing & transfers
Pre packaged fly-drive itineraries
Multilingual escorted tour packages
Ad hoc group services for both international leisure and MICE business
Custom / special FIT requests
24 / 7 multilingual staff for client assistance and onsite problem resolution
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RTO Distribution Chain
Receptive Tour
Operator
Int’l Tour Operator
Travel Agent
Consumer
ConsumerTravel Agent
Consumer
Consumer
Int’l Tour Operator
Travel Agent Consumer
ConsumerTravel Agent Consumer
Int’l Tour Operator
Travel Agent
Consumer
Travel Agent
Consumer
Consumer
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Why Partner with a RTO?
International business is our primary focus
The majority of international tour operators use a receptive operator for their USA programs, either all or a portion thereof
25% of all international travel books through RTO’s – approximately 15 million room nights
“We can deliver the International Business”
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Why Partner with a RTO?
We have the connections to the overseas client base
Extensive and multi-targeted international sales efforts
Attendance at every major international trade show
Frequent international sales visits and dedicated year round client service
“We are an extension of your sales team”
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“We have the connections built through years of relationships and
know…
Why Partner with a RTO?
The major players in the international community and what their sales potential is
What products appeal to specific source markets
Travel patterns in terms of length of stay and preferred destinations
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Why Partner with a RTO?
“We take the risk out of working directly with overseas tour
operators” Familiar with all regional consumer protection
laws
In-market knowledge of potential financial instability and liability
Accounts receivable for dozens of international clients is OUR job – not YOURS
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Guidelines on Working With a RTO
Net rates – minimum 30% discount Rate integrity – quote direct international tour
operators accordingly
Freesell or allotments with shortest possible cut-
off
Surcharged rates rather than blackouts
Voucher acceptance / direct billing
Quick turnaround time on RFP’s
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Tapping into this Market
Partner with your CVB Invaluable source of market research and industry
connections Sales missions and co-op marketing opportunities
Sell your destination 1st – then your product
Attend IPW, etc. to acquaint the international community with your property or service – create a need!
Join RSAA and take advantage of the contacts, educational opportunities and networking benefits
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How Things Change – 1997-2012
Top 10 overseas markets, 199745 million visitors to the US
Japan – 5.7 million UK -3.7 million Germany – 2 million France – 978,000 Brazil – 940,000 South Korea – 747,000 Italy – 580,000 Argentina – 503,000 Australia – 500,000 Venezuela - 488,000
Top 10 overseas markets, 201267 million visitors to the US
UK – 3.8 million Japan – 3.7 million Germany – 1.9 million Brazil – 1.8 million
China – 1.5 million France – 1.5 million South Korea – 1.3 million Australia – 1.1 million Italy – 831,000 India – 724,000
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Before We Get to Questions…
RSAA Summit – Feb. 3-4, 2015 in Las Vegas, NV One day of education and information One day of 1-on-1, business-to-business
appointments www.rsaa.org/events/summit
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Thank you for the opportunity!
