Newfoundland and Labrador Product Development Strategy

- 12-National Tour Association StudyThis study define packaged travel as a “a trip arranged by a travel professional that includes atleast tow travel elements, such as transportation and accommodations. Packaged travellersmay travel independently or as part of a group”. 8This study concluded:o Packaged travel spending by US and Canadians totalled $166 billion for overnight travelto worldwide destinations in 2001 - $99 billion in the US, $13 billion on travel to Mexico,$9.5 billion on travel to Canada and $45 billion to travel to destinations outside NorthAmerica.o Independent travel accounted for 56% of the market with group travel representing 44%;in Canada independent travel was only 51% of the marketo Types of accommodations used on packaged trips were generally higher-end than theoverall marketo Packaged trips lasted longer than the average trip in the US – 6.3 nights compared to 5;packaged trips by Canadians were 9 – 10 nights long on averageo The average package was $2,775 per partyGroup Tour TrendsThe Atlantic Canada Motorcoach Study: 2003 and Beyond identified some key trends in thismarket. Note that this study was undertaken before Iraq and research did not anticipate thedecline in business in 2003.Some key findings:o The seniors market is expected to grow by 10% over the next five yearso The major unknown and a major risk, is whether the new seniors (those turning 65 inadvance of the baby boomers) will follow the traditional seniors in their use of grouptours; this ‘new senior’ market will represent 40% of seniors in 5 years – Will they takegroup tours? What kind? Will Atlantic Canada appeal to them? Many tour operators donot seem to be ready for this market.o The number of companies in the North East US offering “Soft adventure” tour productincreased from 24% in 1998 to 54% in 2002. The percent of North East US companiesoffering major tour products in 2002 were:• Holidays (44%)• Events (68%)• Dinner Theatre (74%)• Fall Foliage (74%)• History/heritage (62%)• National Parks (56%)• Culture (55%)• Soft Adventure (54%)8National Tour Association, Packaged Travel in North America, Executive Summary, On-line, 2002THE ECONOMIC PLANNING GROUP of Canada Newfoundland & Labrador Tourism Product DevelopmentD. W. Knight Associates Strategy and Accommodation Needs Study