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CANADIAN TRAVEL TRENDS & SEGMENTATION Summary Report Simplified Understanding September 2015

Insights West: Who We Are

A progressive, full-service market research company offering insightsdriven research solutions and interpretative analysis through leading-edge tools, normative databases and senior level expertise.

CORE VALUES

Canadian Travel Trends & Segmentation | Summary Report | September 2015

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Insights West: Who We Are (cont.) “Your Insights” panel: “Your Insights” panel: 16,000+ in BC

•  Better because ofabetter anddata AB, including newrepresentation multicultural panel of Chinese/South Asians •  Owned asset means quick turnaround/lower costs

Strong Strongpartnerships: partnerships:

usnetworks to •  allows Extensive conduct national •  National and and international International capabilities studies easily

Engaging: •  Captivating boardroom Technology presentations enabled: mobile •  Respondent engaged panel engagement/better data

Press strategy: Pressrelease release

100 • strategy: Trust in the over boardroom releases on diverse •  PR for your company topics

Canadian Travel Trends & Segmentation | Summary Report | September 2015

Tools & normative databases: •  Context •  Comparisons to competitors/peers

Full-service research: •  One-stop shop for all research •  Integration and synergies of qual + quant results

High value: •  More value for research dollar •  More robust research

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Insights West’s Tourism Expertise •  We understand travel and tourism research. Insights West team members have conducted quantitative and qualitative research studies for clients in the tourism sector for over a decade. Some of our recent tourism clients include:

•  Our recent press releases on travel and tourism: –  Weak Dollar is Negatively Affecting Canadian Leisure Travellers: July 23, 2015

www.insightswest.com/news/weak-dollar-is-negatively-affecting-canadian-leisure-travellers/

–  BC’s Leisure Travellers Choose Stanley Park and Tofino as Best Places: June 29, 2015

www.insightswest.com/news/bcs-leisure-travellers-choose-stanley-park-and-tofino-as-best-places/

–  Alberta’s Leisure Travellers Vote Banff National Park As Best Place: June 29, 2015

www.insightswest.com/news/albertas-leisure-travellers-vote-banff-national-park-as-best-place/

Canadian Travel Trends & Segmentation | Summary Report | September 2015

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Objectives & Methodology

Simplified Understanding

Rationale for the Research

• 

According to the World Tourism Organization (UNWTO), tourism is the world’s 5th fastest growing industry, with one billion international travellers and $1.53 trillion in global revenues.

• 

Given the importance of tourism today, Insights West was interested in surveying Canadian travellers.

• 

Why did we conduct this research? Ø  To explore Canadians’ travel behaviour and preferences. Ø  To determine what types of travellers make up the largest segments in Canada. Ø  To highlight our tourism and segmentation experience.

Canadian Travel Trends & Segmentation | Summary Report | September 2015

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Objectives & Methodology

Objectives •  Insights West, together with Resonance Consultancy, conducted an extensive segmentation analysis of the U.S. traveller market in November 2014. This research was followed up with a similar survey of Canadian travellers. •  Over 3,330 U.S. travellers and 1,780 Canadian travellers were surveyed about their travel behaviour and preferences. For more information on the U.S. Resonance report, visit: http://resonancereport.com/products/portrait-of-the-u-s-international-traveler. •  The key objectives of the Canadian research were to explore travel preferences among Canadian leisure travellers and identify the unique and identifiable segments of Canadian travellers.

Methodology •  An online survey was conducted with 1,781 Canadian leisure travellers who have taken a leisure trip at least 100 km from home in the past 12 months. -  An overall sample of this size has a margin of error of +/-2.3%, 19 times out of 20. •  All interviews were conducted between June 11-15, 2015. •  The data was weighted by age, gender and region according to Census Canada figures as well as by the incidence of leisure travellers by age and gender. Canadian Travel Trends & Segmentation | Summary Report | September 2015

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Top 5 Insights

Simplified Understanding

Top 5 Insights

1)  The declining Canadian dollar is impacting Canadians’ travel plans. • 

More than six-in-ten (62%) Canadian leisure travellers feel the declining Canadian dollar has had a significant (24%) or medium (38%) impact on their travel plans.

2)  The declining Canadian dollar is encouraging Canadian travellers to vacation within Canada, including their home province. • 

• 

Close to half of Canadians who have been impacted by the declining dollar plan to: -  Vacation in other areas of Canada instead of visiting the U.S. (49%); -  Make fewer trips to the U.S. than they normally would (47%); and -  Vacation in their home province/territory (46%). Nearly two-in-ten (19%) cancelled a trip they were planning to make to the U.S.

3)  Destinations in BC and the Atlantic are voted the best Canadian places to visit this summer. • 

When asked to provide the top destinations, attractions or landmarks to visit in Canada, BC destinations emerged at the top (53%), with Vancouver generating the most interest within BC (26%), followed by destinations in the Atlantic (45%) and in Ontario (41%).

Canadian Travel Trends & Segmentation | Summary Report | September 2015

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Top 5 Insights (cont.)

4)  Canadian travellers are most interested in taking beach vacations, visiting major cities and vacationing with friends. • 

The main types of vacations Canadians plan on taking in the next two years are visits to beach resorts (46%), visits to major metropolitan cities (45%) and vacations with friends (43%).

5)  Canadian travellers are most likely to be Family-Oriented Frugals and Active Adventurers. • 

• 

Close to three-in-ten (29%) Canadian travellers are Family-Oriented Frugals – lower income, infrequent travellers, who feel English being spoken and passport not required to visit are important when deciding on a vacation destination. One-quarter of Canadian travellers are Active Adventurers – higher income, frequent travellers, who are interested in trying new things and enjoy adventure, sports and outdoor activities while on vacation. -  Out of all regions, BC has the largest proportion of Active Adventurers (42%).

Canadian Travel Trends & Segmentation | Summary Report | September 2015

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Impact of Declining Canadian Dollar

Simplified Understanding

More than six-in-ten Canadian leisure travellers feel the declining Canadian dollar has had a significant or medium impact on their travel plans. Compared to other provinces, AB leisure travellers are more likely to feel the declining Canadian dollar has had no impact.

Impact of Declining Canadian Dollar on Travel Plans BC

Significant impact

24%

Medium impact

38%

Minor impact

No impact at all

Significant/ Medium Impact 62%

24%

14%

AB

(n=600)

(n=451)

24%

25%

40%

30%

23%

25%

14%

20%

Statistically significantly higher than comparison group(s) Base: Canadian leisure travellers (n=1,781) A7. Thinking about the next 12 months, would you say the declining Canadian dollar has had an impact on your travel plans? Canadian Travel Trends & Segmentation | Summary Report | September 2015

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Among those who feel the declining Canadian dollar has had at least some impact on their travel plans, vacationing in other areas of Canada, making fewer trips to the U.S., and vacationing in their home province are most prevalent.

Impact of Declining Canadian Dollar on Travel Plans BC

% Agree I will vacation in other areas of Canada instead of visiting the U.S.

17%

I plan to make fewer trips to the U.S. than I normally would

17%

I’m more likely to vacation in my home province/territory

14%

I’m more likely to visit and stay with friends/family than stay in a hotel

14%

I plan to make fewer trips outside North America than I normally would

13%

I cancelled all my travel plans this year 4%

(n=372)

49%

58%

47%

53%

52%

46%

57%

54%

40%

46%

34%

45%

17%

17%

7%

11%

49%

44% 39%

I cancelled a trip I was 7% planning to make to the U.S.

19% 12%

Strongly agree

AB

(n=515)

Somewhat agree

Statistically significantly higher than comparison group(s) Base: Significant/medium/minor impact of CAD on travel plans (n=1,519) A8. How much do you agree or disagree with the following statements about your future travel plans? Canadian Travel Trends & Segmentation | Summary Report | September 2015

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Vacation Preferences

Simplified Understanding

Among Canadian leisure travellers, BC destinations are voted the top places to visit in Canada this summer, with Vancouver generating the most interest, followed by destinations in the Atlantic and in Ontario. Top Places to Visit in Canada British Columbia NET

53%

Vancouver British Columbia Victoria Vancouver Island

Banff

26%

Calgary

10% 6% 3%

Atlantic NET

45%

PEI

29%

AB NET 10% 8%

Edmonton

5%

Alberta

5%

Rocky Mountains

3% 26%

Quebec NET

17%

Newfoundland

11%

Montreal

Nova Scotia

10%

Quebec City

6%

14%

Halifax

5%

Quebec

6%

Maritimes/Atlantic provinces

4%

Northern Canada NET

6%

New Brunswick

3%

Yukon

3%

Manitoba NET

3%

Ontario NET

41%

Toronto Niagara Falls Ottawa Ontario

16% 11% 8% 4%

Base: Canadian Leisure Travellers (n=1,781) Note: Only responses of 3% or higher are shown. A1. If you could visit any place in Canada this summer, what are the top three places you would go? These can be geographic destinations, attractions, landmarks or your favourite places to visit. Canadian Travel Trends & Segmentation | Summary Report | September 2015

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When British Columbians were asked to select the best places in BC from a list of 69 destinations, attractions and landmarks, Stanley Park and Tofino emerged at the top. Top Places in British Columbia Stanley Park

39%

Tofino

38%

Granville Island

27%

Butchart Gardens

26%

Rocky Mountains

26%

Okanagan wineries

25%

English Bay/Spanish Banks

23%

Haida Gwaii/Queen Charlotte Islands

22%

Whistler Village

20%

Okanagan Lake

20%

Whistler-Blackcomb

19%

Barkerville

17%

Cathedral Grove

16%

Pacific Rim National Park Reserve

15%

Stanley Park

Tofino

Granville Island

Base: BC residents (n=600) Note: Only responses of 15% or higher are shown. Note: Respondents could select up to seven choices out a list of 69 BC destinations/attractions/landmarks. A2. In your opinion, what are the seven best places in British Columbia? These can include geographic destinations, attractions, landmarks or your favourite places to visit. Canadian Travel Trends & Segmentation | Summary Report | September 2015

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Albertans clearly agree that Banff National Park is the best place in AB, followed by Jasper National Park, the Calgary Zoo and Lake Louise. Among the Top 10 places in AB, six are natural landmarks. Top Places in Alberta Banff National Park

72%

Jasper National Park

48%

Calgary Zoo

38%

Lake Louise

33%

Royal Tyrell Museum

27%

Calgary Stampede

27%

Dinosaur Provincial Park

25%

West Edmonton Mall

24%

Waterton Lakes National Park

21%

Columbia Ice Field

20%

Kananaskis Provincial Park

19%

Drumheller

19%

Icefields Parkway

17%

Canmore

16%

Calgary Heritage Park Historical Village

15%

Banff National Park

Jasper National Park

Base: AB residents (n=451) Note: Only responses of 15% or higher are shown. Note: Respondents could select up to seven choices out a list of 69 AB destinations/attractions/landmarks. A2. In your opinion, what are the seven best places in Alberta? These can include geographic destinations, attractions, landmarks or your favourite places to visit. Canadian Travel Trends & Segmentation | Summary Report | September 2015

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Visits to beach resorts, major metropolitan cities and vacations with friends are the main types of vacations Canadians plan on taking in the next two years. BC leisure travellers show greater interest in visiting a major city, while Albertans are more interested in visiting a mountain resort.

Types of Future Vacations BC

Visit to a beach resort

46%

Visit to a major metropolitan city

45%

Vacation with friends

43%

Quiet countryside holiday

33%

Family vacation with kids

30%

Multi-generational vacation

28%

Cruise

26%

Visit to a mountain resort Combining business trip with leisure vacation Other

22% 12% 11%

AB

(n=600)

(n=451)

43%

37%

51%

41%

46%

43%

31%

31%

27%

27%

33%

29%

22%

19%

27%

35%

16%

12%

15%

13%

Statistically significantly higher than comparison group(s) Base: Canadian leisure travellers (n=1,781) A6. What types of vacations do you plan on taking in the next 12 to 24 months? Canadian Travel Trends & Segmentation | Summary Report | September 2015

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Iconic landmarks, English being spoken and opportunities to learn something new are the top vacation decision factors among Canadian leisure travellers. English being spoken is more important to Albertans than British Columbians. Key Decision Factors When Deciding on a Vacation Destination BC

Iconic landmarks

Opportunities to learn something new Good cultural attractions

28%

30%

31%

19%

35%

31%

29%

29%

24%

19%

21%

24%

15%

20%

15%

14%

11%

19%

11%

15%

13%

10%

5%

7%

3%

3%

35%

17% 14% 10%

All inclusive pricing

12%

Exciting city environment

11%

Fun attractions

10%

Passport not required to visit

11%

Online peer reviews and ratings

(n=451)

15%

English spoken

23% 20% 18%

7%

Professional printed guidebook reviews 4% Magazine/newspaper articles 3%

AB

(n=600)

18% 11% 8%

10 – Extremely important

9

Base: Canadian leisure travellers (n=1,781) A3. On a scale of 1-10, what are the most important factors you take into account when deciding on a vacation destination, with 1 being not at all important and 10 being extremely important? Canadian Travel Trends & Segmentation | Summary Report | September 2015

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While on vacation, close to eight-in-ten Canadian leisure travellers enjoy engaging with nature, while seven-in-ten enjoy attending cultural events. Four-in-ten would like to participate in a “once-in-a lifetime” activity. Activities on Vacation Would Like To 15%

Regularly/Occasionally Engaging with nature

38%

20%

Attending cultural events & performances

23%

22%

Attending music festivals

19%

20%

Participating in outdoor sports

20%

Participating in a ‘once-in-a-lifetime’ activity

20%

42%

19%

Personally participating in athletic competitions

9%

78%

71%

65%

56%

49%

30% Regularly

Occasionally

Base: Canadian leisure travellers (n=1,781) A4. While on vacation what activities do you enjoy regularly, enjoy occasionally, would like to try, or do not enjoy? Canadian Travel Trends & Segmentation | Summary Report | September 2015

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SEGMENTATION

Simplified Understanding

Segmentation Overview •  Insights West, together with Resonance Consultancy, conducted an extensive segmentation analysis of the U.S. traveller market in November 2014. This U.S. segmentation algorithm was used as the basis for the Canadian traveller segmentation, with a slight modification in analysis. •  The analysis was based on both a behavioural and attitudinal segmentation. •  Three main inputs were used: •  Most important factors taken into account when deciding on a vacation destination; •  Activities enjoyed while on vacation; and, •  General attitudes towards vacations. •  The resulting segmentation solution has 5 segments of varying sizes with distinct behaviours and attitudes, and as a result, different demographic profiles and trip characteristics.

Canadian Travel Trends & Segmentation | Summary Report | September 2015

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The largest segments among Canadian travellers are FamilyOriented Frugals and Active Adventurers. BC has the largest proportion of Active Adventurers. Segment Sizing Canadian Leisure Travellers (n=1,781)

16%

British Columbia (n=600)

16%

Alberta (n=451)

12%

Saskatchewan/ Manitoba (n=67)*

13%

Ontario (n=394)

Sophisticated Explorers

12%

14%

All-In Enthusiasts

9%

42% 28%

24%

24%

Atlantic (n=72*) 4%

25%

13%

17%

Quebec (n=197)

21%

28%

25%

24% 39%

11% 20%

20%

Active Adventurers

5% 9%

13%

23%

29%

39% 10%

26%

10%

13%

22%

45%

Occasional Convenience Travelers

Family-Oriented Frugals

Statistically significantly higher than comparison group(s) Canadian Travel Trends & Segmentation | Summary Report | September 2015

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Compared to U.S. leisure travellers, Canadians are more likely to be Active Adventurers, and less likely to be Occasional Convenience Travellers. Segment Sizing: Canadian Travellers vs. U.S. Travellers Canadian Travelers

U.S. Travelers

(n=1,781)

Family Oriented Frugals 29%

(n=3,379)

Sophisticated Explorers 16%

Family Oriented Frugals 26%

Sophisticated Explorers 16%

All-In Enthusiasts 21%

Occasional Convenience Travelers 9% Active Adventurers 25%

Occasional Convenience Travelers 15%

Canadian Travel Trends & Segmentation | Summary Report | September 2015

All-In Enthusiasts 25%

Active Adventurers 18%

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Segment Summary

Segment Sophisticated Explorers (16%)

Demographics

Trip Characteristics

•  More female (61%) •  Oldest segment (Avg. 57 years) •  Smaller household size (2.2)

•  Less frequent travellers (Avg. of 3.7 trips/year)

•  More male (59%) All-In Enthusiasts (21%)

•  High incidence of children at home (58%) •  Larger household size (3.2) •  Higher income •  The largest segment in ON (28%)

•  Iconic landmarks, opportunities to learn something new and good cultural attractions are important •  Greatest interest in visiting major metropolitan cities •  Exploring new cultures and learning/personal development are important while on vacation

•  Less likely to have children at home (15%)

•  Youngest segment (Avg. 39 years)

Vacation Preferences

•  More likely to have travelled for business in past year (53%) •  More likely to have travelled within home province/territory, to the U.S. and outside North America in past year

Canadian Travel Trends & Segmentation | Summary Report | September 2015

•  Interested in taking all types of vacations •  All factors are important when deciding on a destination •  More likely to participate in all types of activities •  Go on vacations for all the different reasons

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Segment Summary (cont.) Segment Active Adventurers (25%)

Demographics •  Slightly more male (56%) •  •  •  • 

Occasional Convenience Travellers (9%)

Trip Characteristics

•  Frequent travellers (Avg. of 5.4 trips/year) Smaller household size (2.8) •  More likely to have travelled within home Less likely to have province/territory, to children (39%) the U.S. and outside Higher income North America in past year The largest segment in BC (42%)

Vacation Preferences •  Greater interest in engaging with nature and participating in outdoor sports •  Interested in trying new things and participating in adventure activities that take them out of their comfort zone •  Sports and outdoor activities are important while on vacation

•  Older (Avg. 55 years) •  Smaller household size •  English being spoken is most •  Least likely of all important when deciding on a (2.3) segments to have vacation destination •  Less likely to have travelled outside North children at home •  Less likely to participate in all America in past year (21%) vacation activities •  Lower income

Family Oriented Frugals (29%)

•  Slightly more female (57%) •  Lower income

•  Compared to the other segments, English being spoken and passport •  Less frequent travellers not required to visit are more (Avg. of 3.4 trips per important decision factors year) •  Most interested in visiting a beach resort

Canadian Travel Trends & Segmentation | Summary Report | September 2015

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Contact Us to Learn More!

Contact us for more information on tourism research, segmentation analysis, or to discuss how Insights West can help you address your marketing challenges.

Jane Ha-Trapp Vice President, Insights West 403.860.5277 [email protected]

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