1 MARKET INTELLIGENCE DENMARK 2016

2 CONTENT Quick overview Danish marketEvolution & characteristics outbound trips Danish market in Flanders The Danish traveller’s booking behaviour General booking information Online travel market Airline bookings to Brussels airport Online conversation in 2015 Brand topics Destination topics Channels The Cultural Traveller Definition Methodology 3 types of Cultural Travellers Update occupancy rates 2016

3 Overview Danish market – outbound trips* Projections Denmark suffered from the adverse effects of the economic crisis, but outbound trips are slowly increasing as the economy recovers. There was a clear dip in 2012, but outbound trips have since recovered, and registered 8.3 million in Between 2010 and 2014 there was an average annual growth of outbound trips of 2%. Danes have been opting for domestic trips over outbound trips during the past few years. However, this is changing according to Eurostat.This is in line with projections that state that the number of outbound trips could increase with 10% by 2019.

4 Overview Danish market – outbound tripsNumber of seats sold – leisure travel, incl. domestic (2014) Air travel is the main mode of transport for outbound Danes, with 53% of the market share. However, given Denmark’s land connectivity with it’s top destination, Germany, it is unsurprising to see land having 41% of the share. As trade between Denmark and Germany grows, the importance of land travel is set to increase. There was moderate growth in the Danish airline market between 2009 and 2014, the highest growth was recorded by LCC’s. * Projections

5 Overview Scandinavian arrivals in Flanders* Projections Source until 2015: FDP Economy DGS Source projections: Global Data

6 Danish market in FlandersEvolution number of arrivals and overnights in all market – 2015 vs 2014 (Preliminary figures) The Danish market shows an increase in arrivals and overnights in Except for the summer and the last month of 2015, Danish arrivals boomed.

7 Danish market in FlandersEvolution number of arrivals and length of stay ( , preliminary figures) The Danish arrivals grew with barely 1.9% in the past ten years. Length of stay varied wildly but increased throughout this period, which means that the Danish tourist stays longer then in 2006.

8 Danish market in FlandersShare of arrivals in subdestinations (2014, %) The art cities receive more than 3/4th of all Danish arrivals. 70% of these take place in Brussels.

9 Danish market in FlandersSeasonality for different purposes of stay (2014, %) Danish leisure arrivals show a varied trend during the year, with peaks in early spring, summer and autumn. Arrivals for business purposes are spread throughout the year, but decrease in the summer.

10 Intelligence input for action plan 2017Quick overview Danish market Evolution & characteristics outbound trips Danish market in Flanders The Danish traveller’s booking behaviour General booking information Online travel market Airline bookings to Brussels airport Online conversation in 2015 Brand topics Destination topics Channels The Cultural Traveller Definition Methodology 3 types of Cultural Travellers Update occupancy rates 2016

11 Booking behaviour – general (2015)54% of Danish consumers generally book different parts of their vacation seperately. 38% preger to book a combined package.

12 Booking behaviour general (2015)92% of Danish consumer book their vacation online. 45% book directly with a supplier, 24 consult an online travel agent and 23% book via an online price comparison website. 58% of people who book online use a PC, and 27% a laptop. Even though many Danish consumer buy online, booking via a mobile device is not markedly more popular than in countries as for example France or the Netherlands. What device do you generally use when booking your holiday abroad?

13 Online travel market Scandinavia has Europe’s highest online booking penetration at 63% in Despite this high penetration, total online travel bookings are still growing at about 5% per year. By 2017 penetration will reach 66%. Scandinavian online travel market - OTA vs. Supplier-direct share Suppliers’ direct share of the online travel market is at 61% and is projected to remain steady during the next several years. The projected growth is estimated at 3-5% annually. The OTA growth rates exceed those for the supplier-direct segment for the forecasted period. But the growth rate is slowing down from 13% in 2014 to 5% by 2017.

14 Market value evolution of the travel trade (2014)Online travel agents have the highest revenue and reported the highest growth in the past 5 years. This increase in revenue is set to continue, although at a slower pace. The in-store segment didn’t perform very strongly during the past 5 years and are set to lose revenue during the next five years.

15 Booking data Next figures analyse data of net flight bookings (cancelled bookings are excluded) made through the three main GDS’s (Amadeus, Travelport and Sabre) The data are about bookings made by travel agents (online or offline). Globally 45% of all flight bookings are made through a travel agent. This differs from country to country. This is only a part of what is possible. When we talk about Denmark in this case, we take only Copenhagen into account.

16 Number of days between purchase and travel for leisure trips with destination Brussels per booking channel (1/1/2014 until 23/05/2016) Some clarifications: Single site TA: a traditional travel agent who has only one address VITO: Virtual Tour Operators: tour operators who are selling directly through their website. The classic travel agent is a sum of leisure TA, both business and leisure TA and single site TA Consolidators: TA’s who process bookings made by non IATA licensed TA’s. Danish leisure travellers book as well late as early. OLTA’s and Classic TA’s have almost each half of the market.

17 Number of days between purchase and travel for leisure trips with destination Brussels per booking channel (1/1/2014 until 23/05/2016) On moments when less bookings are made OLTA’s are much stronger.

18 Weekly booking data Next two slides show the weekly number of leisure bookings to Amsterdam, Brussels, Paris and Vienna. These cities are very similar in case of seasonlaity of the markets that are coming to Flanders. (For Austria as source, Vienna is not taken into account.) Each bar shows the number of bookings in that week. Bars in green are weeks with an above average number of bookings. The dark green ones are the peaks (statistically: above average + standard deviation). The graph shows also the share of Brussels in that number. This is the orange line. This graphs can help you to plan actions more precisely by focussing on peak periods or on periods where the share of Brussels is lacking or the combination, depending of course on the action.

19 Weekly number of leisure bookings to Amsterdam, Brussels, Paris and Vienna vs share of Brussels; 2014 There is one main booking season (in dark green): from the first whole week of January to the week of Easter. Easter is a real drop. A second one is less important. But this one starts early from the first mid August to the end of September which is an early end. The share of Brussels is lacking at the beginning of the year. Typical for most markets is that people wait until the beginning of the year to plan their holidays. In the first booking period there is a mix of people who plan for the whole year, who we can call early bookers and people who book holiday by holiday, late bookers. Brussels seems to be more popular among the last category. The Easter related holidays seem to have an influence. Easter related holidays

20 Weekly number of leisure bookings to Amsterdam, Brussels, Paris and Vienna vs share of Brussels; 2015 In 2015 there is an influence of the Paris attacks in November. Because of that the average is lower and some lower weeks are also green. But still the conclusions are a bit different. The first booking period is similar: from week 2 until Easter but with a weaker start. The second booking period started a week earlier and lasted a week longer.

21 Air searches in Amadeus system vs capacity, share of Brussels against Paris, Amsterdam, Vienna and Munich For Denmark the air searches are lacking quite a lot against the seat capacity. Potential air demand (searches) are mostly driven by leisure travellers. One thing seems to be sure: there is enough flight capacity, but more popular for business travellers. Or there are possibilities to grow or there is a saturation. The Danish overnights and arrivals (FOD statistics) are the last few years relatively stable. It tends to be saturation.

22 CONTENT Quick overview Italian marketEvolution & characteristics outbound trips Italian market in Flanders The Italian traveller’s booking behaviour General booking information Italian online travel market Airline bookings to Brussels airport Online conversation in 2015 Brand topics Destination topics Channels The Cultural Traveller Definition Methodology 3 types of Cultural Travellers Update occupancy rates 2016

23 Online conversation Next slides are about the online conversation about Flanders: brand topics and destination topics. The brand topics are being measured by keywords relating to the Flemish masters, gastronomy or WWI. The destination topics are being measured by keywords relating to attractions, sites, … in Flanders, the cities or Belgium In the online conversation we track on texts on publicly available online sources. Eg private Facebook is not included It is important to look at the figures in a relative sense: comparing shares between countries.

24 Online conversation in 2015Number of mentions in general dashboard Danish generate rather a small number of mentions about Flanders and its brand.

25 Online conversation in 2015Mentions in general dashboard split on brand topics In Flemish Masters we track the names of 15 masters. In Gastronomy it is about beer, fries, chocolate, top gastronomy, … In Denmark Flemish food is much more important than the other topics.

26 Online conversation in 2015Mentions in general dashboard split on destinations topics The numbers here for Denmark are small (only 24)!!

27 Online conversation in 2015Mainstream media (red colours) have a clearly higher share than social media (blue colours).

28 Intelligence input for action plan 2017Quick overview Danish market Evolution & characteristics outbound trips Danish market in Flanders The Danish traveller’s booking behaviour General booking information Airline bookings to Brussels airport Online conversation in 2015 Brand topics Destination topics Channels The Cultural Traveller Definition Methodology 3 types of Cultural Travellers Update occupancy rates 2016

29 Cultural Traveller – definition= An overnight visitor for whom the opportunity to experience culture is a decisive factor in the destination choice. “Experiencing culture” can take on many forms: Art & Culture experience (museum, gallery, festivals,…) Heritage experience (cultural, natural, religious,…) Local culture experience (food, cycling culture, other traditions, language,…) We distinguish 4 types of cultural travelers, according to the “culture experience” Art & Culture Lover (Art & Culture experience) Heritage Lover (Heritage experience) Foodie (Local culture experience – Food) Cycling Fan (Local culture experience – Cycling culture)

30 Cultural Traveller – definitionLeisure FOODIE ART & CULTURE LOVER LOCAL Experience ART & CULTURE MICE Business CYCLING FAN Leisure vs Business Experiencing Culture 4 types of Cultural Travellers HERITAGE LOVER HERITAGE

31 Cultural Traveller – methodology1 The Cultural Traveller is explored from 2 viewpoints: 2 The Cultural Traveller is explored on its characteristics and behavior 3 The Cultural Traveller is explored within the markets listed below(*; **) The BRIC countries are not included in this excercise. 1 POTENTIAL MARKET = SOURCE MARKET What is the share of the Cultural Traveller in our source markets?* 2 ACTUAL MARKET = FLANDERS What is the share of the Cultural Traveller in our destination Flanders?** *Based on Visit Flanders’ online research in the market (Flemish Masters ) on people who travel abroad from the following source markets: Netherlands, France, Germany, UK, Spain, Italy, Norway, Denmark, Sweden, Switzerland, Austria, USA, Japan ** Based on Visit Flanders’ face to face interviews in the destination (The holidaymaker in Flanders, Art Cities– 2011) for the following source markets: Netherlands, France, Germany, Uk, Spain, Italy, Scandinavia, USA, Japan

32 Cultural Traveller – methodologyThe motivation of the potential and actual international travellers is the main determining factor in defining the Cultural Traveler. For the 4 types of Cultural Travellers this means: The ‘Art & Culture lover’ is motivated by visiting arts, cultural events, museums, … The ‘Heritage lover’ is motivated by visiting heritage sites, patrimony, … The ‘Foodie’ has ‘gastronomy’ as an important motivation for travelling The ‘Cycling fan’ is motivated by cycling culture (actively & passively) Important remarks: - Travellers can have multiple motivations for a trip so this means that they can appear in one or more types (above) at the same time. - For more details on the definition, see specific reports ‘Profile of the Arts & Culture lover’, ‘Profile of the ‘Heritage lover’ and ‘Profile of the Foodie’.

33 Cultural Traveller – methodologyLeisure FOODIE ART & CULTURE LOVER LOCAL Experience ART & CULTURE MICE Business CYCLING FAN Leisure vs Business Experiencing Culture 4 types of Cultural Travellers HERITAGE LOVER HERITAGE 1 2 3 = CULTURAL TRAVELLER 5 In this document we refer to the Cultural Traveller as a compilation of only the following 3 types 1. Art & Culture lover 2. Heritage Lover 3. Foodie The cycling fan is not included in this document (no detailed research yet – to come oct 2017)

34 Cultural Traveller – 3 typesCultural Traveller (overall type) 1 2 3 = CULTURAL TRAVELLER FOODIE ART & CULTURE LOVER HERITAGE LOVER What is the share of the overall Cultural Traveller ? 49% of all people who travel abroad is a Cultural Traveller (= potential market) 55% of the visitors in Flanders are Cultural Travellers (= actual market)

35 Cultural Traveller – overall typePOTENTIAL VS ACTUAL – BY MARKET Most markets show higher ‘actual’ than ‘potential’ shares – this seems logical given the cultural nature of our destination DK: 51% SW: 34% NO: 37% * * In Scandinavia 39% of people who travel abroad are CT’s and 72% of the actual leisure tourists in the Art Cities is a CT. * No share for actual market

36 Cultural Traveller – overall typeACTUAL – BY MARKET In 2014 The Dutch, French and UK market have more than ‘actual’ Cultural Travellers The Germans and Spanish market count for arrivals, USA 100,000. 2014 arrivals in 6 Art Cities, data for available markets. Share of CT based on 2011 field research.

37 Cultural Traveller – 3 types1 ART & CULTURE LOVER 1 2 3 FOODIE ART & CULTURE LOVER HERITAGE LOVER - The Art & Culture Lover is motivated by visiting arts, cultural events, museums, … - What is the share of the Art & Culture Lover ? 31% of all people who travel abroad is an Art & Culture Lover (= potential market) no share available for the actual market* * Further research will focus on more details on this traveller

38 Cultural Traveller – Art & Culture LoverPOTENTIAL– BY MARKET DK: 32% SW: 24% NO: 22% 26% of the Scandinavian potential market is interested in Culture & Arts while travelling

39 Cultural Traveller – 3 types2 HERITAGE LOVER 1 2 3 FOODIE ART & CULTURE LOVER HERITAGE LOVER - The Heritage Lover is motivated by visiting heritage sites, patrimony,… - What is the share of the Heritage Lover ? 45% of all the people who travel abroad is a Heritage Lover (= potential market) 53% of the visitors in Flanders are Heritage Lovers (= actual market)

40 Cultural Traveller – Heritage LoverPOTENTIAL VS ACTUAL – BY MARKET The high shares of The Heritage Lover’s prove that many Cultural Travellers are Heritage Lovers. DK: 49% SW: 32% NO: 35% * * In Scandinavia 37% of people who travel abroad are Hertiage Lovers and 72% of the actual leisure tourists in the Art Cities is a Hertiage Lover. * No share for actual market

41 Cultural Traveller – 3 types3 FOODIE 1 2 3 FOODIE ART & CULTURE LOVER HERITAGE LOVER - The Foodie is motivated by ‘gastronomy’ (as a motive for travelling) - What is the share of the Foodie ? 10% of all people who travel abroad is a Foodie (= potential market) 6% of the visitors in Flanders are Foodies (= actual market)

42 Cultural Traveller – FoodiePOTENTIAL VS ACTUAL – BY MARKET Neighbouring markets show the highest ‘actual’ shares Further away markets often have high potential shares for gastronomy. DK: 4% SW: 3% NO: 4% * * 4% of the potential Scandinavian market is interested in gastronomy travel abroad. 2% of Scandinavian tourists in the Art Cities in the actual market is travelling for gastronomy reasons * No share for actual market

43 Cultural Traveller – Detailed informationAll detailed information on the 3 types of Cultural Travellers in the Art Cities – potential and actual characteristics – can be found in 3 separate documents: Profile of The Heritage lover Profile of The Art & Culture lover Profile of The Foodie These documents focus on the following topics for each of the markets*: Socio demo (age, education, profession, household situation) Types of travel and travel motivation Information resources Travel behaviour (accommodation, length of stay, group travel, repeat visit, excursions, activities) Satisfaction For markets with available data*. This means that the BRIC countries are not included in this ‘Cultural Traveller’ analysis. There will be a specific focus on their markets in their reports. For those markets with available data. For the potential market these are: Netherlands, France, Germany, UK, Spain, Italy, Scandinavia, Norway, Denmark, Sweden, Switzerland, Austria, USA, Japan For the actual market these are: Netherlands, France, Germany, Uk, Spain, Italy, Scandinavia, USA, Japan

44 CONTENT Quick overview Danish marketEvolution & characteristics outbound trips Danish market in Flanders The Italian traveller’s booking behaviour General booking information Danish online travel market Airline bookings to Brussels airport Online conversation in 2015 Brand topics Destination topics Channels The Cultural Traveller Definition Methodology 3 types of Cultural Travellers Update occupancy rates 2016

45 Flemish Region Room occupancy in hotels in the Flemish region (Brussels excluded) in the months Jan-May 2015 (blue) compared to the same months in 2016 (pink) 67,1% 69,3% 59,2% 56% 56,3% 57,3% 52,2% 53,3% 43,2% 43,2% = ,8% % ,8% ,1%

46 Art cities Room occupancy in hotels in the art cities (Brussels excluded) in the months Jan-May 2015 (blue) compared to the same months in 2016 (pink) 79,7% 77,5% 67,5% 66,1% 63,4% 65,5% 61,8% 62,7% 54,2% 50% -4,2% ,6% ,8% ,4% ,2%

47 Coast Room occupancy in hotels in the months Jan-May 2015 (blue) compared to the same months in 2016 (pink) 61,4% 57% 54,1% 45,1% 36,9% 33,3% 34,5% 31% 22,9% 19,9% -3% ,3% ,4% ,9% ,3%

48 Flemish regions Room occupancy in hotels in the months Jan-May 2015 (blue) compared to the same months in 2016 (pink) 61,5% 59,9% 60,2% 54,9% 54,8% 54,3% 50,2% 51,2% 45,5% 43,2% +2,3% ,7% ,7% ,9% ,7%

49 antwerp Room occupancy in hotels in the months Jan-May 2015 (blue) compared to the same months in 2016 (pink) 74,8% 76,7% 67,1% 66,4% 64,8% 63,2% 65,1% 65,2% 57,8% 55,3% -2,5% ,6% ,7% ,7% ,5%

50 bruges Room occupancy in hotels in the months Jan-May 2015 (blue) compared to the same months in 2016 (pink) 86% 82,3% 63,5% 63,8% 65,2% 54,9% 54,1% 56,8% 41,8% 38,1% -3,7% ,8% ,7% ,5% ,8%

51 ghent Room occupancy in hotels in the months Jan-May 2015 (blue) compared to the same months in 2016 (pink) 81,2% 83,7% 73,4% 72,4% 69,9% 71% 68,7% 63,3% 65% 58,6% -4,7% ,2% ,4% ,8% ,7%

52 leuven Room occupancy in hotels in the months Jan-May 2015 (blue) compared to the same months in 2016 (pink) 73,2% 72,3% 72,3% 74,3% 67,2% 64,9% 67% 58,4% 60,3% 52,3% -6,1% ,4% % ,3% %

53 mechelen Room occupancy in hotels in the months Jan-May 2015 (blue) compared to the same months in 2016 (pink) 69,6% 71,2% 65,8% 64% 65,4% 61,8% 63% 58,5% 53% 50,9% -2,1% % % ,2% ,7%

54 CONTENT Quick overview Danish marketEvolution & characteristics outbound trips - – Canadean Travel & Tourism, Tourism Flows Danish market in Flanders - FOD – Directorate-general Statistics The Italian traveller’s booking behaviour General booking information - Canadean Travel & Tourism, Panel report 2015 Q4 Danish online travel market – PhocusWright Scandinavian online travel overview Airline bookings to Brussels airport – Amadeus booking data Online conversation in 2015 – Synthesio Brand topics Destination topics Channels The cultural traveller – Flemish Masters online research (2016) + Art Cities research (2011) Characteristics Flemish Masters Flanders for Foodies Update occupancy rates 2016 – Hotel barometer