UNITED KINGDOM Maria Costa Lobo

MARKET CONDITIONS UK Economy External conditions House prices continue to rise Faster drop ever in unemployment - less than 4.9% Overall confidence in economy is still positive despite Brexit Brexit > Pound at historic low against US dollar External conditions Period of uncertainty Strong US Dollar vs Pound US political landscape Global Terrorism There may be a reduction in spend and length of stay Trump Slump

MARKET CONDITIONS (CONT.) Trends Holidaymakers are choosing destinations with weaker currency such as South Africa or Mexico US holidays are down due to currency exchange, however Florida is the most affected state in the US Luxury market remains strong despite recession Families are seeking more control over budgets on holidays and still choose all-inclusive holidays (increase from 20 to 25% of families with young kids)

WHAT DO YOU NEED TO KNOW?

$122.5 billion in 2015, a 3.4% increase from 2014 VISITORS INFO No. Visitors Total arrivals to California - 17 million visitors in 2015 705,000 (2015) 686,000 (2014) 142,000 (2015) 121,000 (2014) Expenditure  $122.5 billion in 2015, a 3.4% increase from 2014 $1,044 million (2015) $905 million (2014) 16.3% of the market $253 million (2015) 32.9% of the market Profile of traveller Reason: 85% on holiday Planning: 53% more than 3 months ahead Length: 10.4 nights (50% CA) Spending: Av. $1,361/trip Dest/ trip: Av. 3.6 Kids: 12.3% travel w/ kids Reason: 74% on holiday Planning: 46% more than 3 months ahead Length: 19. nights (73% CA) Spending: Av. $1,781/ trip Dest/ trip: Av. 2.8 Kids: 14% travel w/ kids

UK MARKET – WHAT DO YOU NEED TO KNOW? UK & Ireland = #1 overseas visitors to San Diego for the past 10 years Growth of UK annual visitors = From 90,000 to 148,000 in 2015. 19% of the total visits to California from British travellers. Booking trends Planning timeframe: up to 5 months Booking timeframe: 1 to 6 months Approx. 32 % book with traditional operators, and the remainder book through online travel agencies and direct with airlines Over 90 tour operators package California in the UK, catering to all tastes, niches and budgets Mainly hotel product based – clients now looking for more ‘experiences’ in destination

UK MARKET – WHAT DO YOU NEED TO KNOW? Airlift British Airways – daily direct flight from London Heathrow Increase in low cost airlines to key gateway cities in California - opens to cost conscious traveller (Generation Y) Major airlines - Investment in regional airports, upgraded aircrafts and increased frequencies Travel Trends Currency conscious holiday - shorter stay & value-adds in luxury travel Long haul city breaks - new airlift & routes Microadventures & Wellness tourism - active activities & increase in wellness tourism Continued growth of mobile use Increase in social media influence (FOMO) - inspiration

TOP CLIENTS FOR SAN DIEGO Tour operator British Airways Holidays Flight Centre Funway Holidays Thomas Cook Trailfinders Virgin Holidays USAirtours

ACCOMPLISHMENTS

ACCOMPLISHMENTS FY16-17 - TRADE Agents trained: 384 Fams: Luxury FAM – 4 Product Managers Super FAM – 13 agents SeaWorld FAM – 15 agents Other FAMs/Visits – 17 agents Brochure Analysis: +5% in hotel coverage

ACCOMPLISHMENTS FY16-17 - TRADE Co-op campaigns USAirtours Eden Tours Gold Medal My America Holiday USAir Tours – Bookings up 24% Year over Year Eden Tours – Waiting on results Gold Medal – Results were below expectation (California bookings were overall down) and we booked additional training with their agents to reinforce the destination message My America Holiday – Social Media reach of 277,000+ and 2,000 clicks to the San Diego page

WHAT CAN YOU DO?

WHAT CAN YOU DO? 1) Early booking discounts 2) Added value to hotel bookings – Free parking, Free wifi 3) Booking incentives for agents 4) Work closely with receptives – ATI, BONOTEL, Tourico – Make your product easily available to the UK market!

OPPORTUNITIES

PLANS FOR FY17-18 UK Super FAM – October 2017 San Diego sales calls – November 2017 San Diego dedicated sales mission – Spring/Summer 2018 Luxury travel agent FAM trip Trade Shows: WTM & IPW Co-ops with Luxury, mainstream & specialist tour operators