UAE Market Report NourAridi - Visit Finland Country Representative
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
UAE Market Report Visit Finland Country Representative
NourAridi
May 2018
Semiannual Report – United Arab Emirates: Winter season 2017-18 and outlook for summer 2018 CONTENTS • Factors affecting the results of the winter season 2017-18 • Outlook for the summer season 2018 • Prospects for the autumn/winter season 2018-19 • Trends and other relevant travel related topics • Facts and figures - Market review data
Factors affecting the results of the winter
season 2017-18
Reasons for the increase/decrease in overall outbound travelling from your market?
The United Arab Emirates is reflecting a stable economy growth of 2% year over year with a
sustainable growth in both major two emirates Dubai and Abu Dhabi.
According to the Ministry of Economy the UAE is forecasting a 3.6% overall increase by the
end of 2018 impacted by healthy changes in the oil prices and will be boosted further by the
hosting of Dubai Expo 2020.
Overall Middle East North Africa region is expecting an increase of 3.2% with inflation averaged
by 6.6% which might be increased to 8.6% impacted by the introduction of the VAT in January
2018.
Safety & security is a major concern of the Government of UAE which pride themselves as
being a country with a multicultural and open society that counteract discrimination based on
race , religion or nationality. Shariah Law is governing all activities and being the focal concern
of all related activities.
Vacations are well recognized within the UAE having one key long vacation of 3 months
(summer), two short vacation periods of 7 days (small feast- Eid) and 11 days (large feast- Eid);
Schools spring vacation is considered as an opportunity, it usually begins at the end of March
or the beginning of April. Other short vacations which are connecting to National days, Islamic
Days such as Islamic New Year, Prophet’s Mohammed birthday etc…
Extended BLeisure are seen in the UAE outbound travel market .Factors affecting the results of the winter
season 2017-18
Reasons for the increase/decrease in travelling to Finland?
Changes in demand
Multiple season had impacted the demand positively with more tendency to discover new
destination as well as local salary increase allowing more people to travel favoring close by
destination or easy accessible one (airline connectivity)
Changes in distribution
The distribution channel with the UAE and the rest of the Gulf Cooperation Council (GCC)
market remains well recognized in a clear leadership from the B2C channels that represent
more 60% of the outbound travel flows headed by Booking.com and followed by Expedia,
Trivago , HotelCombined and Wego plaforms.
The B2B (classic travel agents) followed with more than 20% of the total outbound travel flows
where there is no Tour Operators business from the UAE in the market.
Direct Bookings could be an opportunity with less than 20% of the total outbound travel flow of
the Emirates.
Finland’s image as a travel destination
Finland as a new destination remain an opportunity for the UAE Market due to several
environmental and natural benefits. Marketing for Finland will be a key pillar for the success of
increasing number of travellers from Emirates knowing that UAE travellers are considered a
key influencers for the rest of the GCC citizens.Factors affecting the results of the winter
season 2017-18
Reasons for the increase/decrease in travelling to Finland?
Lapland is the main attractive region for the UAE travellers having strong interest for the
newness, activities such as Northern lights – the views of the auroras and their outdoor
activities and adventure.
More travellers have been with an interest to Finland due to its environment and atmosphere
(cold weather, nature, landscape, greenery, fresh air).
Educational expertise remain an asset in attracting travellers from the UAE and several GCC
countries.
The contribution of Finland during the Arabian Travel Market in Dubai 2018 as unique
Scandinavian/Nordic country has helped to position Finland within the key interesting
destination and helped to increase the awareness and visibility with the market.Outlook for the summer season 2018
The overall outlook of travelling to Finland for the coming summer?
The summer 2018 remains a mystery and depends on the marketing activities which currently
on going by several meetings on both B2B and B2C platform and could be boosted forward by
upcoming activities to take in consideration.
The summer 2018 will be the longest vacation in three years as the holy month of Ramadan
being early in 2018 allowing three months of uninterrupted vacation (15th of June till 15th
September).
Europe with its weather will remain a key impact factor since most of UAE citizens visiting
cooler destinations to avoid hot weather in the region.
New summer products
Lakeland, Archipelago will be the key products to boost during the summer 2018 with a focus
on Midnight Sun, family destinations with high-end cottages and villas.
New sales channels
B2C channels will be the focus during the summer 2018 for its potential to drive larger numbers
of bookings with a prospect focus on the B2B market through the four key wholesalers present
in the market (GTA , Hotelbeds, Destinations of the World and Lots of Hotels)Outlook for the summer season 2018
The overall outlook of travelling to Finland for the coming summer?
The summer 2018 will oversee multiple combined travel patterns (close by destinations/long
haul destinations):
- Short haul (Egypt/Lebanon/Turkey and new emerging market such as
Azerbaijan/Georgia/Armenia)
- Long haul (traditional European destinations France/UK/Germany, USA and Southeast Asia)
Long summer will impact the length of stay of the travel patterns which is expected to increase
from 4.6% to 6.8 % as an average.
Summer is considered for family travellers which will impact the occupancy level having in
consideration the large family size in UAE compared to traditional family.
Which are the traveller segments?
Leisure is considered a key and major segment from UAE with a leadership of millennials and
families, using B2C as a key distribution platform.Outlook for the summer season 2018
Ad hoc marketing opportunities
B2C
Joint Campaign with big players such Expedia and Booking.com to boost bookings via their
platforms from UAE as a source market.
B2B
Joint Marketing Campaign with the 2 key players (GTA/Hotelbeds and DOTW) to support
Finland as a destination during summer 2018 and stimulate demand from classic travel agents
in UAE.
Promotional email blast campaigns to classic travel agents to increase the visibility and
awareness of Finland.
Airlines
Joint Campaign with Emirates Holidays to push Finland as Twin Destination with neighboring
countries.
PR/Social Media and Networking
Influencer Fam Trip to be organised to maximise awareness and visibility of Finland
Travel Agents Fam trip to be organised in order to position Finland within key outbound
destinationsProspects for the autumn/winter season 2018-19
The overall outlook of travelling to Finland?
More focus on marketing and digital campaign to expose Finland unique selling point as
an adventure destination.
More contribution is required with Airlines / holidays section to drive more packages and
increase demand during autumn/winter season .
A need to create an easy slogan to ensure being connected to UAE travellers and be
more simpler in term of distribution (ex: Feel Finland)
Which present target groups should be considered to increase the demand?
Millenials/ Young Emiratis
Families
Which new target groups should be considered to increase the demand?
Solo Travellers
Educational related groups
Health and Wellness travellersTrends and other relevant travel related topics
Trends
Summer 2018 vacation approaching UAE with new trends:
• Discover of new destination and new adventures influenced by his Highness Sheikh Fazaa Crown
Prince loving new challenges and activities .
• Safaris/ Diving destinations are becoming very popular in the UAE
B2C :
Booking.com leading the platform with different destinations promotions to Cyprus, Turkey, Saudi
Arabia, Germany and Egypt.
B2B:
Key wholesalers and travel agents are pushing hot deals to Egypt, Turkey, Paris, London, Indonesia,
Armenia, Georgia, Azerbaijan.
New distribution channels
Your suggestion on how to develop business with them: what needs to be done?
Since Finland is new in the UAE market, no previous campaigns have been conducted on the
B2B distribution channels let by Booking.com and Expedia thus recommendation will be to
ensure positioning Finland on both channels before the end of the summer to make sure of
positive conversion of booking sales.Trends and other relevant travel related topics
Competitors’ actions
• Norway has been present in the market, seen as a winter destination promoting urban
cities and mainly Tromso for the northern lights and winter activities, the success of their
market awareness has been conducted though multiple joint-promotion activities with the
UAE travel trade mainly seen in co-marketing activities with top travel management
destination such as Dnata travel. The accessibility of Norway by Emirates Airlines and
Norwegian Airlines is facilitating the travel plannings of the UAE travellers.
• Switzerland and Austria are two destinations that are known for their greenery
landscape and quality lifestyle that the UAE travellers are looking for. In addition
Switzerland known similaryly for winter activities such as skiing in the alps, lakes beauty
but sees strong potential for education and is eying the UAE as a source market for
medical tourism .
• We saw a tremendous rise in emerging markets from Western Europeans countries
equally Azerbaijan, Georgia, Armenia and recently Albania offering visa free for UAE
citizens have seen a strong growth in the number of people from visiting these
respectives countries owing to close by destinations, multiple accessibility and good
value for money.
• Mostly all these destinations has been partnering with wholesalers such as GTA,
hotelsbeds , lotsofhotels anf Online Travel Agencies mainly Booking.com, Expedia and
Musafir.com.Trends and other relevant travel related topics
Free word
We would need to work closely with marketing influencers and bloggers in this market and to
create a fam trip to introduce Finnish travel agents to different partners in UAE.
To work on twin way approach by creating fam trips from UAE travel partners to Finland as well
organising a roadshow for Finnish travel to come to UAE that will ensure better communication
between both partners and product positioning.
UAE is considered as one of the niche outbound travel market due to the fact of low population
number however they remain one of the highest purchasing power traveller.UAE – Market review data
UAE overnights in Finland 2017
Year 2017: 9 900 (+31%) Winter (Nov-Apr): 4 700 (+43%) Summer (May-Oct): 4 900 (+34%)
21% 37%
51 3%
49
% %
2% 1% 2%
3% 3% 3%
1% 1%
1% 2% 1%
1% 1% 1% 3%
1% 3% 1%
66% 1%
54% 1% 6%
79%
Sources:
Visit Finland Statistics Service Rudolf, Statistics FinlandUAE overnights in Finland
Lapland
Seasonal overnights in 2017 - 2018 Winter 2017: 900 (+38%)
Spring 2017: 600 (+60%)
Finland Summer 2017: 100 (-15%)
Autumn 2017: 200 (-21%)
Winter 2017 (Dec-Feb): 2 500 (+28%)
Winter 2018: 1 300 (+37%)
Spring 2017 (Mar-May): 2 300 (+70%)
Summer 2017 (Jun-Aug): 3 200 (+40%)
Lakeland
Autumn 2017 (Sep-Nov): 1 600 (-1%)
Winter 2017: 100 (-4%)
Winter 2018 (Dec-Feb): 3 200 (+25%)
Spring 2017: < 100 (-38%)
Summer 2017: 200 (-36%)
Autumn 2017: 100 (-43%)
Coast & Archipelago Winter 2018: 100 (-42%)
Winter 2017: 200 (+57%)
Spring 2017: 300 (+188%) Helsinki area
Summer 2017: 400 (+56%)
Winter 2017: 1 300 (+23%)
Autumn 2017: 200 (+11%)
Spring 2017: 1 400 (+70%)
Winter 2018: 200 (+18%)
Summer 2017: 2 600 (+51%)
Autumn 2017: 1 100 (+6%)
Winter 2018: 1 600 (+22%)
Source: Visit Finland Statistics Service Rudolf, Statistics FinlandYou can also read
