Market Profiles
United States of America
Profile
Adult Population 268 million
International Tourist Departures 92.6 million (2018)
Ontario Market Performance
Total Visitor Spending $4.4 billion (2016)
Overnight Visitors 6.5 million (2016)
Market Conditions
- An elevated degree of uncertainty surrounding trade disputes has tempered a strong economic climate in the US. While consumer confidence, spending and job growth remain positive it is expected that expansion will continue but decelerate in the near term.
Consumer Insights
- An elevated degree of uncertainty surrounding trade disputes has tempered a strong economic climate in the US. While consumer confidence, spending, and job growth remain positive business and leisure segments are expected to decelerate in 2019.
- Middle-aged travellers and baby boomers that are either retired or nearing retirement are driving outbound growth. Millennials earning power is on the rise too and they have a strong interest in international travel. Of the millennial demographic there is also an important segment interested in mixing work and play (“bleisure”).
- The key markets for Canada are New Yorkers and travellers aged 25-44 as they are among the most likely to be actively planning a trip here.
- With the exception of Niagara Falls, US travellers continue to be drawn more to Canada’s major cities than its landscapes.
- Trying local food and drink and seeing natural attractions are the most in-demand vacation experiences for US travellers in Canada. This is followed by nature parks, hiking or walking in nature, historical sites, and viewing wildlife.
- Food and drink festivals, cruises, canoeing/kayaking/paddle boarding, amusement parks, and fall colours are experiences that need to be promoted more. US travellers express that they would anchor a trip around food and drink festivals and cruises.
- The family market shows some potential. US travellers are most likely to travel with their spouse and to travel with children.
- Travel peak periods are June-August and March-May. For South Eastern Ontario, the US market shows a smoother trend throughout the year with a peak from late spring through to early fall.
- Regardless of the destination, US travellers show a preference for mid-priced hotels when in Canada. Cost is viewed as the key barrier for visiting Canada. Despite this, a rising interest in luxury accommodations has been observed.
- US travellers are tech savvy and they are using their smartphones to research activities, complete bookings, find restaurants and more. Based on Google Data, over 70% of US travelers agree that they “always” use their smartphones when traveling, up from 41% in 2015.
Sources: UNWTO, Destination Canada, CIA World Factbook, Statistics Canada, U.S. Travel Association
China
Profile
Adult Population 1.146 billion
International Tourist Departures 130.5 million (2017)
Ontario Market Performance
Total Visitor Spending $759.3 million (2016)
Overnight Visitors 252,000 (2016)
Market Conditions
- A rebalancing of the economy is expected to result in a gradual moderation of growth over 2020. While further trade threats could negatively impact the Asia region as a whole, there is optimism that a US-China trade deal can be reached soon. Despite the challenges, overseas travel demand is expected to continue growing.
Consumer Insights
- Currently, the top visitor source markets are top-tier cities. China’s second and third-tier cities will be the primary drivers of economic growth and demand for international goods and services as per capita incomes rise.
- There are four cities identified as first-tier (Beijing, Shanghai, Shenzhen, and Guangzhou), and 12 Chinese cities as second-tier (Chengdu, Chongqing, Wuhan, Tianjin, Xangzhou, Xi’an, Suzhou, Nanjing, Dongguan, Xiamen, Kunming, and Qingdao). China’s remaining cities were labeled as third-tier or lower.
- People aged 25-44 made up 58% of all outbound travelers in 2016. This segment of the market prefers to rely just partially on organized tours, or even fully on free and independent travel (FIT).
- The number of travelers aged 45+ is expected to increase. These travellers see iconic attractions as important for a person’s status and they want to see as much as possible. Prestige is an important push factor since travel is still a new and exciting activity that they can share with friends via social media platforms.
- 85% of Chinese international travel is to a major city destination and travel peak periods are January-February, June-July and October. In South Eastern Ontario, Chinese visitors arrive more consistently throughout the year with a notable peak leading up to October when Golden Week takes place.
- Internet research is the top reason for choosing a holiday destination and social media is a growing driver in influencing bookings. Chinese celebrities share their holiday experiences on flagship social networks such as Weibo and WeChat and they are seen as reliable opinion leaders and influencers.
- Travel agents still play a vital role in China, especially among the first-time outbound travellers as they offer more convenience and value, and help them address any language barriers, visa preparation, or knowledge gaps.
- Mobile payments are now an integral part of Chinese consumer culture.
Sources: UNWTO, China National Statistics Institute, Destination Canada, CIA World Factbook, China National Tourism Authority, Brand USA, Statistics Canada, Ctrip
United Kingdom
Profile
Adult Population 53.7 million
International Tourist Departures 70.4 million (2018)
Ontario Market Performance
Total Visitor Spending $614.1 million (2016)
Overnight Visitors 381,000 (2016)
Market Conditions
- Moderate economic growth in the United Kingdom is a reflection of ongoing political uncertainty surrounding the Brexit process. The labour market has weakened recently and consumer spending has slowed as well. As a result, consumers are not spending as much on non-essential items and instead are saving more temporarily.
Consumer Insights
- Baby Boomers, with more free time and money for travel, are the most important segment but younger travellers aged 18-34 also indicated increased active planning for trips to Canada in recent studies.
- UK travellers are willing to spend more to get the destination they want and this is even more the true for those aged 18-24 and 55-64. Unfortunately for Canada, cost is viewed as the key barrier to visiting – expensive flights topped the list.
- The chance to sample local cuisine and drink remains the most in demand vacation experience in Canada. This is followed by seeing natural attractions such as mountains and waterfalls, viewing wildlife, visiting parks, historical sites and the Northern Lights. The Northern lights and hiking/walking are said to be the most appealing for travellers aged 35-54 while the top activities all hold stronger than average appeal for travellers aged 55+.
- Travel peak periods are June-August and March-May. In South Eastern Ontario, the UK market tends to peak between June and October, while the late fall, winter and early spring are spread more evenly.
- UK travellers report consulting a travel agent/tour operator on their most recent long-haul trip for either planning or booking purposes. The next most popular method for booking a vacation was an online travel site or direct with an airline for flights.
Sources: UNWTO, Destination Canada, CIA World Factbook, Statistics Canada
France
Profile
Adult Population 54.9 million
International Tourist Departures 29.1 million (2017)
Ontario Market Performance
Total Visitor Spending $243.4 million (2016)
Overnight Visitors 198,000 (2016)
Market Conditions
- Due to tensions in the euro area the French economies growth is expected to decline slightly in 2020 to a moderate 1.2% in 2020-21. The labour market is gradually improving which is expected to raise household disposable income and consumption. Generally, most people in France are well-educated and enjoy a good standard of living with GDP per capita in of around US$38,361, with a significant amount of paid vacation.
Consumer Insights
- The French economy is expected to slow down in 2019 due to global uncertainties and social unrest. Generally, most people in France are well-educated and enjoy a good standard of living with GDP per capita in of around US$38,361, with a significant amount of paid vacation.
- French travellers were most likely to be accompanied by their spouse, and this is particularly common among travellers aged 55+. Travelling with friends (55+), alone (18-34 years) or with children under 18 (35-54 years), in order, are the next most common travel parties.
- Travel agent/tour operator use is more common for trips to Canada than for trips in general, with 64% of recent French travellers to Canada consulting a travel agent/tour operator. For trips to Canada, flight and accommodation bookings are most often done though a travel agent/tour operator online.
- The sharing economy is an important consumer trend in the French market. 80% of Airbnb users tend to be under 35 years of age and 62% choose this type of accommodation for its price.
- French travellers place a high importance on the activities they will be embarking on during their holiday and are open to adventure and active vacation packages.
- In Canada, aboriginal culture and traditions, exploring off-the-beaten-path places, historical sites, and natural attractions are the top trip anchor activities for French travellers.
- The peak travel periods are June-August and March-May.
- Personal recommendation from friends and family, particularly in-person, are cited among the top information sources throughout the purchasing cycle. Encouraging past visitors to Canada to advocate and share their experiences with their personal networks is key.