1. Working with Receptive Tour Operators Florida Governor’s Conference on Tourism September 23, 2014

2. www.rsaa.org Presentation Highlights  International Travel and Tourism to the U.S.  Top Source Markets and Long Term Forecast  What is a Receptive Tour Operator  Why Partner with a Receptive Tour Operator  Guidelines on Working with a Receptive Tour Operator  How Can You Tap Into This Market?  Q & A

3. www.rsaa.org The tagline says it all…

4. www.rsaa.org First U.S. Trade Association with Export Promotion Partnership (EPP) Seats on Travel and Tourism Advisory Board & International Trade Advisory Council RSAA’s partnership with Visit USA – Europe allows the groups to work together to address issues impacting European travelers and the businesses that service them Reciprocal Membership agreement with Braztoa Brazilian operators at Summit; trade missions to Brazil

5. www.rsaa.org Why is International Business Important?

6. www.rsaa.org International Travel & Tourism to the U.S. SSpending by international visitors totaled a record breaking $180.7 billion GGenerated a $57.1 billion trade surplus SSupported over 1.3 million jobs 2013 Travel Receipts

7. Overseas Visitors… www.rsaa.org International vs. Domestic Visitors 4 – 7 times MORE!

8. Length of Trip is www.rsaa.org International vs. Domestic Visitors 2-5 times greater!

9. Higher participation rates… www.rsaa.org International vs. Domestic Visitors For attractions, car rentals and hotels

10. www.rsaa.org A Few Quick Statistics…

11. www.rsaa.org Top Ten Markets –Visitation 2013

12. www.rsaa.org Top Ten Markets –Spending 2013

13. www.rsaa.org Forecast Arrivals in Millions

14. Source: National Travel and Tourism Office, U.S. Department ofCommerce www.rsaa.org Long Term Forecast for the Top 10 Overseas Visa Waiver Countries in 2018 Country 2018 Arrivals (000) % change 2013/18 % change 2003/18 United Kingdom4,44616%13% Japan3,9215%24% Germany2,13611%81% France1,71014%148% South Korea1,73528%181% Australia1,50925%272% Italy92610%127% Spain678 9%139% Netherlands 6327%69% Sweden 58022%174%

15. Source: National Travel and Tourism Office, U.S. Department of Commerce www.rsaa.org Country 2018 Arrivals (000) % change 2013/18 % change 2003/18 Brazil3,08250%783% China4,310139%2,642% India1,32054%385% Venezuela97724%244% Colombia1,16956%317% Argentina1,01748%575% Russia60179%864% Israel373 13%50% Ecuador 28813%141% Dominican Republic 2557%67%

16. www.rsaa.org What is a Receptive Tour Operator?  Contracts net rates with supplier partners – hotels, attractions, transportation companies  Packages these services as preset itineraries OR offers services as individual components for flexibility  Markets and sells B to B to international tour operators  Arranges both FIT (independent / individual travel) as well as group services

17. www.rsaa.org Typical Products / Services offered by RTO’s  FIT hotel, attraction, sightseeing & transfers  Pre packaged fly-drive itineraries  Multilingual escorted tour packages  Ad hoc group services for both international leisure and MICE business  Custom / special FIT requests  24 / 7 multilingual staff for client assistance and onsite problem resolution

18. www.rsaa.org RTO Distribution Chain Receptive Tour Operator Int’l Tour Operator Travel Agent Consumer Travel Agent Consumer Int’l Tour Operator Travel Agent Consumer Travel Agent Consumer Int’l Tour Operator Travel Agent Consumer Travel Agent Consumer

19. www.rsaa.org Why Partner with a RTO?  International business is our primary focus  The majority of international tour operators use a receptive operator for their USA programs, either all or a portion thereof  25% of all international travel books through RTO’s – approximately 15 million room nights “We can deliver the International Business”

20. www.rsaa.org Why Partner with a RTO?  We have the connections to the overseas client base  Extensive and multi-targeted international sales efforts  Attendance at every major international trade show  Frequent international sales visits and dedicated year round client service “We are an extension of your sales team”

21. www.rsaa.org “We have the connections built through years of relationships and know… Why Partner with a RTO?  The major players in the international community and what their sales potential is  What products appeal to specific source markets  Travel patterns in terms of length of stay and preferred destinations

22. www.rsaa.org Why Partner with a RTO? “We take the risk out of working directly with overseas tour operators”  Familiar with all regional consumer protection laws  In-market knowledge of potential financial instability and liability  Accounts receivable for dozens of international clients is OUR job – not YOURS

23. www.rsaa.org Guidelines on Working With a RTO  Net rates – minimum 30% discount  Rate integrity – quote direct international tour operators accordingly  Freesell or allotments with shortest possible cut-off  Surcharged rates rather than blackouts  Voucher acceptance / direct billing  Quick turnaround time on RFP’s

24. www.rsaa.org Tapping into this Market  Partner with your CVB  Invaluable source of market research and industry connections  Sales missions and co-op marketing opportunities  Sell your destination 1 st – then your product  Attend IPW, etc. to acquaint the international community with your property or service – create a need!  Join RSAA and take advantage of the contacts, educational opportunities and networking benefits

25. Top 10 overseas markets, 1997 45 million visitors to the US  Japan – 5.7 million  UK -3.7 million  Germany – 2 million  France – 978,000  Brazil – 940,000  South Korea – 747,000  Italy – 580,000  Argentina – 503,000  Australia – 500,000  Venezuela - 488,000 Top 10 overseas markets, 2012 67 million visitors to the US  UK – 3.8 million  Japan – 3.7 million  Germany – 1.9 million  Brazil – 1.8 million China – 1.5 million  France – 1.5 million  South Korea – 1.3 million  Australia – 1.1 million  Italy – 831,000  India – 724,000 www.rsaa.org

26. Before We Get to Questions…  RSAA Summit – Feb. 3-4, 2015 in Las Vegas, NV  One day of education and information  One day of 1-on-1, business-to-business appointments  www.rsaa.org/events/summit www.rsaa.org/events/summit

27. www.rsaa.org Questions?

28. www.rsaa.org Thank you for the opportunity!