Insight Department

UK Consumer Behaviour and Attitudes

Topic Paper November 2013

Background

A UK segmentation model is a vital part of VisitScotland’s marketing strategy for the UK market. Segmentation basically means putting customers into groups (or ‘segments’) which have something in common - for example lifestyle, spending power, media consumption, attitudes and behaviours. Originally developed in 2006, the VisitScotland UK segmentation model divided customers into segments based around the following factors:

geographical location

attitudes and behaviours to Scotland

methods of planning and booking a holiday

internet usage

loyalty to Scotland

10 segments were developed in 2006 and VisitScotland identified 6 priority segments which have been used to guide VisitScotland’s UK marketing to date. However, segmentation models should never remain static as they need to take into account changing behaviours in the consumer market. Back in 2006, travel review websites were relatively new on the horizon, some of Scotland’s older consumers were just dipping into the ‘internet unknown’ and smart phones were not commonplace. 2013/2014 brings a new focus on segmenting the UK population for VisitScotland. Whilst the 2006 UK segmentation model was refreshed in 2010, VisitScotland believe this is now a good time to review more fully the current consumer behaviours in the UK market place and to rebuild its UK segmentation model. The first stage of this segmentation review has been research conducted with over 10,000 UK consumers during 2013. Read more to find out about UK consumer’s general holiday taking behaviours and their attitudes towards Scotland.

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Please use the following as guidance notes when interpreting the results from this research. Further details can be found in the Appendix. nn Online survey. nn Over 10,000 UK holiday takers took part. nn Respondents were a mix of people whose details were on the VisitScotland database or consumers sourced via a cold panel (a ‘cold panel’ being a research database of consumers who are willing to participate in research. They may or may not have any links to VisitScotland). nn Rejecters of Scotland as a holiday destination were excluded from the research. nn Results from the online survey were weighted against a UK representative omnibus survey. nn The results can be described as a UK representative sample of non rejecters of Scotland as a holiday destination. nn The fieldwork was conducted between June and July 2013 and focused on consumer behaviour in the past year (Jan-Dec 2012) and in the current year (2013). Specific questions were used to investigate current trends. The research data cannot be compared back to the 2006 research which informed the development of VisitScotland’s original 2006 UK segmentation model. nn Some questions focused on general holiday taking, others focused more specifically on Scotland.

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Using and Interpreting Consumer Research

Time and Money Spent on Holidays

Over the last 20-30 years, holidays and short breaks have become less of a luxury and even in hard economic times, holidays are something many consumers are unwilling to give up entirely. Survey participants were asked to record their household spend on all holidays and short breaks in 2012: Average spend on holidays in 2012 by survey participants was £1,910 (spend on all holidays)

64% of this total was spent on holidays abroad

36% on domestic holidays

(Q. How much did your household spend on all holidays and short breaks in total (inc. travel, accommodation and all that you spent while you were away Base: 10,754 ).

Shortlisting a Holiday Destination

Key aspects when choosing a holiday destination (identified by survey participants) resonate strongly with what Scotland can offer as a holiday destination. The Top 5 Important Aspects When Choosing a Holiday Destination (home or abroad): Breathtaking scenery and landscape

Relaxing place to unwind

Welcoming and friendly to visitors

Fascinating history and culture

Lots of new and interesting things to discover

(Which of these aspects are important to you when choosing a destination? Select 3 most important. Base 10,754)

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And there is evidence that those surveyed believe Scotland can deliver on these important elements of a holiday, with a strong expectation of being welcome in Scotland. In contrast, looking at some potential barriers to visiting Scotland (weather, distance), attitudes are less polarised. Strongly Agree

Slightly Agree

I feel I will be welcome in Scotland

37%

52%

10%

1%

Scotland isn’t that different to the rest of the UK for a holiday/short break

3%

26%

50%

21%

A holiday or short break offers good value for money

11%

62%

24%

3%

Getting to your destination in Scotland can be quite difficult

11%

43%

30%

16%

The unreliable weather really puts me off taking a holiday or short break in Scotland

11%

39%

30%

20%

Holiday Statement

Slightly Strongly Disagree Disagree

(Base: 10,754)

Planning a holiday is part of the enjoyment of the holiday experience for many UK holidaytakers. And whilst the destination itself is the driving force behind many holiday decisions, the role of deals and offers also has a strong influence for a proportion of consumers. Holiday Statement I really enjoy taking time to plan holidays Getting a good deal is more important than the destination itself I usually wait for last minute deals rather than planning my holiday in advance

Strongly Agree

Slightly Agree

Slightly Strongly Disagree Disagree

35%

48%

14%

2%

6%

24%

46%

25%

4%

21%

45%

30%

(Base: 10,754)

Thinking about the inspiration for destination choice, word of mouth stands out as a vital source of ideas and inspiration for consumers on new destinations, but recommendations work alongside a variety of both online and off line sources of influence. 4

Planning and Booking

Top 10 Sources of Influence & Inspiration for New Destinations (home or abroad) Recommendations from close family and friends

37%

Online travel review websites

28%

Travel books/guidebooks/brochure

28%

Official tourism country websites

22%

Direct flights from local airports

20%

Discount deals/offer emails

18%

Other travel websites/blogs

17%

Newspapers/magazines

17%

TV programmes

17%

Holiday price comparison websites

15%

(Thinking about new destination you have visited in the past 3 years, which of the following inspired or influenced you to choose this/these destinations? Base:10,754)

To understand about the more active stage of planning a holiday, participants were asked questions about their recent holidays or short breaks. Word of mouth remains important, but other more information intensive sources feature more highly, with online travel review websites moving to top of this list of holiday planning tools. Top 10 Sources of Information for Planning a Recent Break (home or abroad) Online travel review websites

50%

Travel books/guidebooks/brochures

38%

Official country tourism websites

37%

Recommendation from close family/friends

35%

Other travel websites/blogs

32%

Holiday price comparison websites

25%

Travel agents/tour operators

20%

Newspapers/magazines

20%

Discount deals/offers emails

18%

Looking at photos/posts from friends on social media

12%

(Q Which if any of the following have you used to get information to plan recent holidays or short breaks? Base 10,754)

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Consumers enjoy a range of activities on their UK/Irelend holidays and these resonate well with what Scotland can offer. The Top 20 activities undertaken by survey participants on domestic holidays (any UK/Ireland holiday) were identified as: Top 20 Activities on UK/Ireland Holidays Visiting natural sites (70%)

Wildlife watching (29%)

Short walks (< 2 miles) (69%)

Other visitor attractions (24%)

Visiting castles/monuments (67%)

Visiting theme/amusement parks (23%)

Sightseeing (67%)

Cycling (roads/paths) (19%)

Visiting parks/gardens (59%)

Hill climbing/walking (19%)

Trying local speciality food and drink (54%)

Adventure activities (14%)

Visiting museums/galleries (54%)

Visiting TV/film locations (13%)

Long walks (>2 miles) (48%)

Saling/boating/watersports (13%)

Centre based walking (42%)

Horseriding/pony trekking (10%)

Visiting aquarium/zoo/safari park (34%)

Golf (10%)

(Q. Which if any of the following do you enjoy doing on a holiday or short break in the UK/ Ireland Base (10,754)

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When on Holiday

Attitudes Towards Scotland

Past research for VisitScotland has gathered views on what makes Scotland stand out as a holiday destination. Research has highlighted that Scotland’s cultural and historical icons are strong and distinctive and that the scenery is a core expectation of all our visitors. It has told us that visitors expect friendly and hospitable people who are proud and independent but welcoming and down to earth. These attributes underpin Scotland’s brand essence of Enduring, Dramatic and Human. And the UK consumer research in 2013 continues to support these pillars of Scotland’s brand with the top 10 key attributes of Scotland identified by survey participants as: Attitudes to Scotland - Top 10 Key Attributes of Scotland as a Destination: Breathtaking scenery and landscapes 86%

Unspoilt nature 75%

Fascinating history and culture 73%

Relaxing place to unwind 60%

Welcoming and friendly to visitors 57%

Both traditional and contemporary attractions 53%

Great range of outdoor activities 52%

Something for people of all ages 45%

Lots of new and interesting things to discover 45%

Country with great food and drink experiences 44%

(Q. Which, if any, of the following statements do you think particularly apply to Scotland as a holiday or short break destination? Base: 10,754)

When asked what type of holiday Scotland is best for, whilst short breaks are top of mind amongst many, longer holidays also feature for over 30% of those surveyed.

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Attitudes to Scotland - Type of Holiday Scotland is Best For: The main holiday of the year 15%

A longer holiday (a week or more) but not the main holiday of the year 19%

A short break (1-6 nights) 66%

(Q. Which, if any, of the following statements do you think particularly apply to Scotland as a holiday or short break destination? Base: 10,754)

Many survey participants feel they have a connection to Scotland, in the broadest sense. 62% felt they had a connection to Scotland.

Connections to Scotland Currently live in Scotland

12%

Lived in Scotland in the past

9%

Have travelled to Scotland on business

21%

Have studied in Scotland in the past

5%

Have good friends currently living in Scotland

18%

Have relatives currently living in Scotland

15%

Definitely have Scottish ancestry

16%

Possibly have Scottish ancestry

7%

None of these

38%

(Q. Which, if any, of the following statements do you think particularly apply to Scotland as a holiday or short break destination? Base: 10,754)

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Connections to Scotland

Social Media

Social media use is high amongst the UK sample, only 22% stated they did not have an active social media account. However, this rises to 40% for the over 55 age group. Facebook is the most popular social media account, although there is a range of other sources being used and on a daily to weekly basis.

Social media active accounts Facebook “f ” Logo

CMYK / .eps

Facebook “f ” Logo

CMYK / .eps

Facebook

68%

Twitter

30%

YouTube

25%

Linkedin

24%

GooglePlus

18%

Friends Reunited

9%

Pinterest

7%

(Q On which of the following social media channels do you have an active account? Base: 10,754)

Frequency of social media account usage Several times a day Once a day Every couple of days Once a week Every couple of weeks Once a month Less often

Facebook Twitter 49% 35% 21% 17% 13% 17% 7% 9% 4% 8% 2% 6% 3% 9%

YouTube 17% 15% 29% 17% 11% 6% 5%

Linkedin 5% 9% 21% 23% 19% 11% 12%

(Q. How often do you use each of the following social media channels? Base: Varies - all who have active account on each)

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When on holiday, just under half stated they would not undertake any social media activity (45%), whereas 55% would. Amongst these consumers, a range of social media activities would be popular: Upload trip photos (39%)

Update Facebook status (32%)

Leave reviews on travel websites (25%)

Tweet about trip (8%)

Upload trip videos (6%)

Write blog about trip (3%)

(Q. Thinking about social media, which of the following do you usually do in relation to your holidays?)

How likely consumers are to recommend Scotland as a holiday or short break destination, is a key measure of advocacy. The power of word of mouth, which we have seen already features highly as a source of inspiration for destinations. Asked on a scale of 1-10 (1: extremely unlikely, 10: extremely likely), the average score across the UK sample was 7, which is a positive score but provides room to move more consumers up the scale to become active promoters of Scotland. 33% of the sample answered 9 or 10 (i.e. extremley likely to recommend Scotland) and these participants can be viewed as active promoters of Scotland. (Q. How likely would you be to recommend Scotland as a destination for a holiday or short break, to a friend or family member? 1+extremely unlikely, 10-extremley likely)

Likelihood to Spend Time in Scotland over the Next Three Years Three-quarters expect to spend more time in Scotland in next 3 years: 23% very likely and 50% quite likely. 26% are not likely to spend time in Scotland (23% not very likely and 3% not at all likely).

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Advocacy/ Word of Mouth

Appendix

The UK consumer segmentation survey (quantitative survey) was conducted by Fraoch Marketing on behalf of VisitScotland in 2013. Fieldwork was conducted online between June and July 2013. The research focused on current and potential visitors to Scotland; ‘rejecters’ of Scotland as a holiday destination were excluded from the research. Sample Breakdown (10,754 respondents) Gender: 51% female, 49% male Age: 16-24 7%

25-34 26%

35-44 18%

45-54 21%

55-64 18%

65+ 10%

B 32%

C1 32%

C2 11%

D 7%

E 9%

Social grade: A 11% Working status: Full time Part time unemployed 54%

16%

3%

Not working/ other 7%

Full time student 4%

Retired 16%

Role of Segmentation for VisitScotland •

Optimise marketing spend by ensuring communications are targeted at the right channels within the UK

•

To maximise the number of visitors to Scotland from the UK market

•

A new segmentation model to guide VisitScotland’s marketing strategy will be available in 2014

•

VisitScotland will use the quantitative results to confirm the development of specific UK segments or groups. This segmentation work will continue into mid 2014

Links Research & Statistics section on VisitScotland’s corporate website www.visitscotland.org/research_and_statistics.aspx VisitScotland’s Current UK segments (2006-2013) www.visitscotland.org/research_and_statistics/visitor_research/uk_visitors/uk_ consumer_segmentation.aspx VisitScotland UK brand research paper www.visitscotland.org/pdf/VS%20Insights%20Brand%20Values%20(Version3)%20 (2).pdf

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Contact us Insight Department VisitScotland Ocean Point One 94 Ocean Drive Edinburgh EH6 6JH T: 0131 472 2222 [email protected] www.visitscotland.org

November 2013 Disclaimer: VisitScotland has published this report in good faith to update stakeholders on its activity. VisitScotland has taken all reasonable steps to confirm the information contained in the publication is correct. However, VisitScotland does not warrant or assume any legal liability for the accuracy of any information disclosed and accepts no responsibility for any error or omissions. Images: © VisitScotland/Scottish Viewpoint and © Thinkstock

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