Int'l Pow Wow to Agents: Expand Into Inbound Travel
by Harvey Chipkin /Now is a good time for travel agents to expand their business to international travel and inbound receptive services, according to Malcolm Smith general manager of International Pow Wow (IPW).
More than 95,000 deal-making meetings took place during the three-day event held this year in Chicago. These are expected to result in nearly 9 million additional visitors to the U.S. over the next three years, said Pow Wow officials. Pow Wow is operated by the U.S. Travel Association (USTA).
“If any travel agent has the opportunity to expand their inbound business, now is the time to do it,” said Smith. “There will be definitely be strong growth in that area for the next five years.”
Signs of growth
Several signs point to growth in inbound tourism.
The number of receptive operators—representing both buyers and suppliers—at IPW continues to increase.
Last week’s event drew 1,400 buyers, the highest buyer attendance since 2001. Total attendance was 6,200 participants from over 70 countries, including 500 media.
The largest delegation yet from China illustrated strong growth from that market. The fact that China’s delegation traveled to a Midwestern city for the event was proof that Chicago’s investment in attracting Chinese travelers is paying off.
In addition, while receptive operators used to be heavily ethnic – dealing with one language or market – an increasing number are diversifying to other countries or even continents to become specialists in this kind of travel rather than in the ethnic market itself.
Healthy forecast
The U.S. Department of Commerce forecasts a 20% increase in international arrivals by 2018.
One reason for this strong growth is the U.S. visa waiver program. Taiwan, which recently completed its first full year under the program, posted a 32% hike in visitors to the U.S.
The approval of the program for Brazil, Israel and Poland will only accelerate the growth in international visitor counts, said Smith.
“When you look at the top 20 countries of origin you see that all but two experienced growth and those two showed very minor declines,” said Smith.
“In fact, there was growth not just from emerging markets but from the top established markets like Japan, Germany, the U.K. and France.”
Renewing Brand USA
Roger Dow, USTA’s CEO, said the early efforts of Brand USA inbound travel marketing program are also responsible for the strength in the international inbound market.
“It’s evidence that the US government is beginning to understand what so many countries have understood for decades,” he said. “Brand USA has done some terrific things.”
Dow called the renewal of Brand USA a top priority for the association.
Financing for Brand USA, which is funded by international visitor fees and private matching funds, is set to expire at the end of FY2015.
Representatives in the U.S. House and Senate have introduced bipartisan legislation aimed at extending the Brand USA inbound travel marketing program for another five years.