Understanding the North America market

News from the marketplace

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  The political climate

  The economic effects of ongoing political uncertainty remain one of the key factors influencing both business operations and consumer travel sentiment. Many potential visitors are expressing unease about the political landscape, with some questioning how this instability may affect their overseas travel plans. 

  In addition, inflationary pressures are causing consumers to reconsider discretionary spending, including leisure travel. Economic worries are undeniably playing a role in the decision-making process for US travellers, potentially deterring some from booking international trips. The recent announcement of a UK / US trade deal will hopefully have a positive impact.

  That being said, while some tour operators in Scotland have observed a slight dip in bookings, others are cautiously optimistic, noting it’s too early to determine whether this will be a trend or a temporary blip. 

  Cultural sensitivities are another important factor shaping the travel experience. US visitors have expressed concern over how they will be received in the UK and other parts of Europe, given rising political tensions. This sense of unease may have implications for those considering travel to Scotland and other European destinations. Highlighting Scotland’s warm welcome is more important than ever.

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  Pricing: mixed view

  Another factor affecting travel sentiment from US visitors is the rising cost of accommodation in some areas of Scotland. There is no doubt that this is an extremely challenging economic landscape. A combination of the legacy of the pandemic, the cost of doing business, including inflation and other costs, and labour shortages continue to impact the accommodation and hospitality sectors, their costs and profitability, and therefore the end price to consumers. During peak times, consumers are finding that costs have risen across some areas of Scotland, something other countries are also experiencing.

  The impact on US visitors varies by market segment. For luxury visitors, there seems to be little to no effect. Wealthier visitors are generally willing to pay a premium for the experiences they want, and Scotland remains a highly desirable destination. Interestingly, some US tour operators have reported interest from their clients in expanding their luxury offerings. A shift toward more high-end itineraries suggests that, for certain visitors, Scotland's appeal remains strong, and they are willing to adjust their spending habits to accommodate the increase in costs. 

  The rising cost has caused concern among mid-range Free Independent Travelers (FIT) and group visitors, who are feeling the pinch. This segment of the US market is likely to be the most sensitive to price increases, potentially opting for alternative destinations or postponing trips if it looks like prices will continue to rise.

  There are still a range of options to suit all budgets and we’re lucky that we’ve got such a spread of accommodation on offer in Scotland – from glamping and hostels, to self-catering and budget hotels, to luxury resorts. We work hard to promote a range of different accommodation options and offers to meet the needs of all our visitors through our international and domestic marketing.  

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  Booking patterns

  An additional trend is the continued shift in booking patterns. Where visitors once planned their trips up to six months in advance, many are now opting for shorter lead times. 

  While this trend may pose challenges for operators who rely on longer-term planning, it also provides opportunities for those who can accommodate last-minute bookings, whether through flexible itineraries or dynamic pricing models.

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  A shift in destination choice

  Canadians are still eager to explore international destinations, but the US is no longer the preferred choice for many. For various reasons – political instability, rising concerns over security, and a general reluctance to deal with the complexities of travelling across the border – many Canadians are opting to look further afield. 

  In response, Canadian media outlets, including travel editors and influencers, are shifting their focus away from the US. Some have even cancelled US travel assignments for the remainder of the year, instead directing their attention to Europe, particularly the UK, Germany, and France.

  This redirection in Canadian travel coverage is indicative of a broader trend. As American destinations become less attractive to Canadian visitors, European destinations, including Scotland, are stepping into the spotlight. 

  In fact, Canadian media is now increasingly covering European destinations, with a specific emphasis on those that offer unique cultural experiences, rich history, and beautiful landscapes – qualities that Scotland excels in.

  This presents a unique opportunity for Scotland, particularly as Canadian interest in European destinations grows.