The parity between the dollar and the euro could be an opportunity for European tourism
Data from travel intelligence provider Mabrian shows correlation between exchange rate and US origin market search demand
Carlos Cendra Cruz, Director of Sales and Marketing at travel intelligence provider Mabrian comments: "We have carefully analyzed the relationship between the euro/dollar exchange rate and the level of search demand for flights from the United States to Europe throughout this year.
“Although greater demand towards Europe could be expected as the summer months approach, we can observe a very clear correlation between the value of the euro and the demand for travel, with clear periods in which an increase in the cost of acquiring one euro translates into a drop in demand for flights to Europe, and vice versa.
"As well as telling us that right now European hotels should be heavily marketed to American travelers, this clearly shows us that hotels and tourist boards around the world should take into account - among other important things too - exchange rates. when considering where to focus your marketing funds.
"However, we must not forget that this goes both ways and that no one should be over-reliant on a single market, as a sudden change in exchange rates - or, as this study shows, even a relatively small change - can lead to a massive decrease in demand.
Paloma Real, general director of Mastercard Spain comments: "Before the pandemic, the United States was one of the most important source markets for the Spanish tourism sector both in terms of the number of visitors (3.2 million in 2019) and spending ( 6,774 million euros). Tourists from North America spend twice as much on average as European tourists (2,087 euros on average vs. €1,175 for German tourists, 1,115 for those from the United Kingdom or €763 for French tourists). This is mainly due to the fact that, when traveling by long-distance plane, North American tourists usually spend more days in the destination and travel with a higher budget than Europeans who enter our country by road and/or plane. shorter distance.
“Due to the pandemic, the United States – Spain corridor has been one of the destinations that has been most affected by the restrictions, and the number of visitors has fallen significantly. (1 million visitors in 2021). With the end of the restrictions and the fall of the euro against the dollar, it is expected that in 2022 the number of visitors and spending will approach those of 2019. The euro-dollar parity is expected to be a lever to accelerate the recovery of visitors from that country and their average spending.
“Our latest study of travel trends published last June “Travel 2022: Trends & Transitions” anticipates a change in trends around the world in terms of travel and consumption habits. Expenditure on experiences (activities, restaurants, bars and leisure) has already recovered 2019 levels and, for the first time in history, has exceeded spending on purchases. Tourists are increasingly looking for unique experiences and, if possible, personalized ones that allow them to enjoy the trip rather than buy souvenirs and products that they can easily acquire from home.
“On the other hand, we see this trend confirmed by the fact that more and more tourist destinations rely on Mastercard to develop special experiences and promote them to source markets through our priceless.com platform. Thanks to this, they are managing to accelerate the recovery of the tourism sector in their destinations.”
Fabián González, founder of Forward_MAD, a conference on luxury tourism that will take place from October 5 to 7 in Madrid, comments: "Although occupancy rates are high right now, many hoteliers are already wondering what will happen in September. After After all, they have two years of COVID debt behind them, along with staff shortages, rising interest rates and inflationary concerns.
"For the luxury segment, in particular, the potential increase in demand from one of the world's largest source markets is a gift not to be missed. It is not for nothing that American travelers are dream guests: they spend more, they stay more time, they book more in advance, they enjoy room service and, in the end, they leave good tips.
"But how do you engage these travelers? They have their own travel agencies and preferences that not all European hoteliers can easily take advantage of. Both Mabrian and Mastercard - who have some very valuable insights into this particular trend - will be at the event. of Forward_MAD from October 5 to 7 to talk about this and much more."
A survey conducted late last week by WayAway, the US cheap flight price comparison website, with a statistically relevant sample of 250 US citizens, revealed that:
- Almost half (49%) now want to travel to Europe more than before as a result of the parity between the dollar and the euro.
- The area where they think they are most likely to benefit from this change is shopping (63%), closely followed by dining out (60%).
Neville Isaac, Client Director at hotel revenue management tools provider Beonprice, comments: "Post-Covid we have seen a significant resurgence of visitors from the US and now dollar-euro parity is the perfect time. to optimize the segment.
"Traditionally in Europe, the US visitor is the biggest spender, longer booking window and longer length of stay than almost any other source market. In addition, the data shows us that they book room types so the overall profit contribution of this segment is extremely high.
"Although we are seeing extremely high ADRs (average daily rates) this year across Europe (around 30% above 2019 levels), now with euro/dollar parity hotels - especially those cities with an international airport - they have a great opportunity to increase volume from the high-value US market, where exchange rates make these destinations attractive.
"To seize this opportunity, we recommend that hotels look at the data and consider:
- What US cities are you receiving demand from?
- How far in advance do your US customers usually book?
- What channels do they use to buy?
- And finally, what products (room types, rate types, etc.) are the most popular?
“With this information Revenue Managers can sit down with marketing and design campaigns to reach these markets.”