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Travel Trends Affecting Community Travel Development Finger Lakes Tourism Alliance Waterloo, New York Wednesday, March 19, 2008. (704) 677-4018 mobile [email protected] PO Box 12600, Charlotte, North Carolina 28220-2600. Larry Gustke. Ph.D., NC State University - PowerPoint PPT PresentationTRANSCRIPT
(704) 677-4018 [email protected]
PO Box 12600, Charlotte, North Carolina 28220-2600
Travel Trends AffectingCommunity Travel Development
Finger Lakes Tourism AllianceWaterloo, New York
Wednesday, March 19, 2008
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
•Larry Gustke. Ph.D., NC State University•Dynamic partnership•Destination research and strategic planning•Research for 100+ destinations in 26 states•Small to mid sized communities and states•Travel industry focused•National research data and trends analysis•Writing and speaking
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
““It is not the strongest of the species that It is not the strongest of the species that survives, nor the most intelligent, but the survives, nor the most intelligent, but the one that is most responsive to one that is most responsive to changechange.”.”
- Charles Darwin- Charles Darwin
2008 = CHANGE2008 = CHANGE
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
2008 and Beyond
Growth in 2008Growth in 2008
finally outpacing 2000 levels-finally outpacing 2000 levels- but it is a completely different but it is a completely different
world…world…
……major traveler behavior change major traveler behavior change isis
forcing the travel industry to forcing the travel industry to reinvent reinvent the experiencethe experience!!
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Changing Consumer BehaviorTwenty years of change (1988)
•CNN was new•Compact Disc was new – cassettes going out•Few households had a PC•Internet???•Balsamic Vinegar and Sushi???•No frequent flyer miles•Few luxury hotels•Few fine dining restaurants•No security…anywhere•Videos were predicted to kill going to the movies
•Americans have changed…has your destination?
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Ups and Downs
Increases in leisure tourism,Lodging occupancies are up,
BUT• Decline in visitation to many historic
sites• Decline in attendance to many
heritage attractions• Increases & decreases at theme parks• Increase in retail shopping• Increase in dining• Isn’t soccer going outside?
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
U.S. Domestic Leisure
Increases in Leisure travel • “As long as the kids are happy”
• Respite
• Vacations demanded
• Growth in family travel
• Growth in affinity travel
• Attendance to many attractions is down
• Simplified planning,
orientation & facilitation
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Travel Industry Segments• Lodging - returned to pre 9/11 levels –
profits!• Airlines – coming back, profitability &
mergers• Cruises – growth, growth, growth…it’s
easy• Group Tour – rebounding appeals to GenX
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Attractions - ActivitiesChallenges
• Decline in attendance to many historic sites and museums
• 16,500 museums in U.S.• 9,000 house museums in U.S.• Boring vs. engaging• Desire for less structure• ½ price ticket & then sell
food, beverage, retail• “Store, Door & More” • FUN
More to do…less time to do it
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Consumer Confidence• Americans are pulling back
• June ‘07 – Feb ‘08
• 2000 - 2007
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Sophisticated Travelers
Trading Up– Truckers drinking lattes– Trends are changing at a faster rate– Consumer is more demanding– Providers of goods and services will
have to stay on top of rapidly changing trends to survive
– Luxury experiences not for the rich alone
– Fine art/craft as souvenirs
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
House MuseumsNew or through!
• Hearst Castle worst year in 20 years (USA Today)
• Biltmore Estate best year ever!
• It’s not the product…it’s the EXPERIENCE
• Requires constant reinvestment
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Biltmore and more
Seasonality of Visitation
0%
10%
20%
30%
40%
50%
60%
Jan-Mar
Apr-May
Jun-Aug
Sep-Oct
Nov-Dec
1974
1995
2003/04
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Top Ten Trends for 20081. 2008 Continued growth
in overall travel & tourism revenues
• Americans predicted to take 1,254.6 million domestic person trips in 2007, up 2.3% over 2006 (Source: IbisWorld)
• Americans view vacations as an essential part of contemporary life (Source: YPB&R/Y)
• We must learn the new behavior patterns
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
2. Time Poverty – drives all trends More to do…less time to do it
• Expedia survey – 1/3 respondents didn’t take all of their vacation days
• Nearly 50% of all Americans report “time poverty” - report desire for all-inclusive to save time (Source: YPB&R/Y)
Top Ten Trends for 2008
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Last Minute Travel
•Who has time to plan Who has time to plan anymore?anymore?•InternetInternet•Visitor centersVisitor centers•SignageSignage•Front-line trainingFront-line training•““MUST-SEES”MUST-SEES”•Seeking unique experiencesSeeking unique experiences•Swift inquiry response!Swift inquiry response!
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
3.Fragile consumer confidence will affect travel decisions
• Gas prices frustrate but don’t slow us down…yet!
• Real Estate downturn causes anxiety. Despite increasing costs, seven in 10 U.S.
adults plan to take a summer vacation this year…. Even though airline ticket prices are increasing, 60% of respondents say they'll fly as much as they did last summer. (Source: Expedia.com)
Top Ten Trends for 2008
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
4. Traveler frustration Too many hassles
– No time to plan– Airline complaints up up up– Taxis and car rental– Hotel check-in, room quality – Attractions– Dining
Top Ten Trends for 2008
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Generation Y - MillenniumAge Range: 7 - 25
•Came of age at the Millennium•Optimistic, confident, self assured•Strong•Empowered•Care for others•Care for environment•Love to buy & enjoy life•Relate to the War Generation•28% U.S. population - 80 million
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
5.Internet: #1
• Travel is #1 in Internet use & sales• Expedia survey (April 2007) summer
vacation planning:– Online travel agency (52%)– Friend/family recommendation (45%)– Travel guide books (25%)– Travel community sites (19%)– Magazines & newspapers (19%)– Traditional travel agents (17%)– Convention and Visitor Bureaus (16%)
Top Ten Trends for 2008
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
6. Geotourism -Increased traveler DEMAND for destinations that:
> PROTECT THE AUTHENTICITY > AND GEOGRAPHIC CHARACTER OF PLACE> it’s environment, culture, aesthetics, heritage
and the well being of residents.
• 55.1 Million Americans > sustainable tourists (source: TIA & National Geographic)
• GEOMAPPING – maps that are user friendly and provide geotourism information in the context of a scaled road map.
•Center for Sustainable Destinations – National Geographic Society
Top Ten Trends for 2008
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
7. Business Travel: Reluctant
Growth• Costs up, desire to travel down• Service complaints up up up• Unhappy business travelers• Younger & more female• Cost-contained travel• On-line deal searching
Top Ten Trends for 2008
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
8. Generational Shifts Retiring BoomersGenX entering peak spending yearsGenY & MGeneration coming of age
• Develop “age-appeal” products• Baby Boomers spending• Affinity groups• Family groups
Top Ten Trends for 2008
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Embrace Change
Baby Boomers 15 more good $$ years
GenX is entering its peak spending years
Younger Generations…
…Are “deciders”
“Technophilia”
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
9. Orientation & Facilitation critical Travelers arriving with no plans
Time Poverty drives the need
CRITICAL COMPONENTS:- Gateways- Directional Signage- Visitor Centers (Thurs – Sun
critical)- Kiosks- Front-line training- Padded maps everywhere
Top Ten Trends for 2008
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Orientation & FacilitationOrientation & Facilitation
Gateways that create a sense of placeA unique destination
Visitors Centers =Sales Centers
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
10. A New Travel EraChanging Generation groups = NEW traveler
expectations
“Transumers” consumers in transition- airports with shopping malls- retail in lodging rooms
- Visitor centers as heritage centers
- overnights at historic sites
Top Ten Trends for 2008
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Other Trends
Traveling with pets –(14% of all Americans)
Safety & Security always an issueTeam sports – huge growth – long termDiverse family – grandparents & moreNature travelFamily reunion growthHuge Growth in RV Travel
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Destination ChallengeThe definition of
“vacation” has changed
(Go/See/Do vs.
Chill & Immerse)Travelers looking to escapeShort getawaysYear round travelSearch for meaning
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Destination Marketing & PositioningYour Best Shot at Success
• “Position” your destination based on unique attributes
• Use research to determine:• marketable assets• target audiences• effective messages
• Develop a powerful positioning statement
• Unify all destination marketing messages• Corporate recruitment• Leisure• Convention, meeting, business
TheTheCustomerCustomeris always is always
rightright
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Destination Marketing & Positioning
Elements of Positioning• Your position in the competitive marketplace
• What is your distinction?
• What makes you unique?
• What sets you apart from others?
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Research Based Marketing Process
Research Based Marketing Process
A. Destination Research and Strategic Plan
B. Brochure and Ads
C. PR
D. Website & e-marketing
E. Product Development/redevelopment
F. On-going Evaluation
G. Change ONLY if the customer/product changes
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
An old but reliable rule..
Market- who are you targeting?
Message - What are you saying?
Medium- Where are you advertising?
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Equity
Every promotionCan’t benefit everyone
equally every time !
• Market segmentation by:• Geographic location• Type of Visitor (leisure, group, etc.)• Time of year
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Don’t let this happen to you..DON’T
•Local politics drive the process…market to the visitor not your civic leaders!
• A generic “vanilla” positioning to please all local constituencies “Small Town Friendly”
• Civic pride can get in the way… “Home of Pepto-Bismol”
• Oversell - “Worlds best…”
• Undersell - “Living and working in…”
• Spend a fortune on logos and image packages…message is more important!
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Finally…your best shot at a “Brand”
• ZEALOUSLY guard “the experience”
• What makes you unique……makes you irresistable
• Repeat visits and referrals are gold
• Tomorrow’s visitor is just like the visitor today…know your customer!
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Finally…your best shot at a “Brand”
• Combine & coordinate efforts – streamline
• Do research for market, message, medium
• Develop a consistent positioning and “look”
• Focus on your best target segments
• PR is your best friend! (trade publications)
• Stay on top of competition and marketing • Focus on your customer and expect change
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
TAKE-AWAYS1. Use research to understand traveler behavior
2. Focus on all open days & need periods (slow)
3. Don’t try to copy others…focus on your unique
4. The story is more important than the facts
5. Plan for short attention spans & offer options
6. Look for “transumer” opportunities
7. Broaden the experience through interpretation
8. Pay attention to market segmentation
9. Report successes and research identified ROI
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Walt Disney said:
“You don’t build it for yourself.
You ask the customer, and you build it for them.”
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Berkeley Young, Young StrategiesBerkeley Young, Young [email protected]
Judy Randall, Randall Travel MarketingJudy Randall, Randall Travel [email protected]
Want to know more?Want to know more?
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
So How Much $$ Do You Have?
• Building awareness for your destination is expensive
• Destination marketing is increasingly competitive
• Multiple messages confuse the customer
• Is it possible to truly “BRAND” your destination?
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
What is a Brand?
Travel and Tourism is the world’s largest industry, with some well known brands…
…Brands that cost $$ millions to create and build
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Brands for Destinations
How many brands can you name?New YorkVirginiaLas VegasWashington, DCPhiladelphiaBostonPittsburghChicago
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Brands for Destinations
Is it a brand or a logo?
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
FundingYou have to have $$ to compete:• City / County Budgets• Dedicated Taxes (meals, lodging, etc.)• Memberships• Sponsorships• Grants• Contributions
Every one comes with politics and potential animosity within the community.
BEWARE TURF WARS
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Lodging Segmentation2006 2007 Category
16-42.6% 22-45.7% LODGING RESPONSE RATE of 54 properties/7,353 rooms
39.0% 41.2%Individual Business Traveler
21.3% 18.5%Convention/Meeting/Group - Corporate
9.0% 7.8%Leisure – Tourists visiting , local attractions, shopping, etc.
5.1% 7.7%Group – Weddings/reunions/family events
4.8% 5.3%Convention/Meeting/Group - SMERF
5.0% 4.6%Group – Sports (team events)
2.8% 3.4%Leisure – Visiting Friends and Relatives
3.3% 2.6%Transient – pass through on highway
0.9% 2.0%Military-base related
1.5% 1.7%Convention/Meeting/Group - Association
3.0% 1.7%University-related
2.2% 1.7%Group Tour/Motorcoach
1.7% 1.6%Convention/Meeting/Group - Government
0.4% 0.3%Other
2006 2007 Convention/Meeting Segments as a % of Total Business
21.27% 18.46% Corporate
4.84% 5.27% SMERF (Social, Military, Educational, Religious, Fraternal)
1.52% 1.71% Associations
1.74% 1.69% Government
29.37% 27.13% Total Convention, Meeting, Group Segment
704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600
Local Lodging TrendsAnnual Revenue
$153,656,442
$197,211,440
$190,158,502
$140,145,292
$141,282,779$142,720,712
$178,334,509
$100,000,000
$120,000,000
$140,000,000
$160,000,000
$180,000,000
$200,000,000
$220,000,000
2001 2002 2003 2004 2005 2006 2007
Annual Revenue
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
2001 2002 2003 2004 2005 2006 2007
Supply
Demand
$64.18
$59.24
$59.44
$62.03
$68.55
$72.28
$74.37
$98.62
$95.23
$92.82
$94.87
$101.64
$108.93
$115.51
$0.00 $20.00 $40.00 $60.00 $80.00 $100.00 $120.00
2001
2002
2003
2004
2005
2006
2007
RevPar
ADR