tips from the trenches on experiential travel

Lesley Anderson, Canadian Tourism Commission & Nancy Arsenault, Tourism Cafe Canada

TOTA Tourism Summit“Embracing our Potential”

Quaaout Lodge & Spa, Chase BC

26 March 20131:45 - 4:45 pm

“Tips from the Trenches”It's In Your Heart • travelthompsonokanagan.com

Did You Know?• 25 years ago we were competing against 10

significant destinations that had 80% of the market

• Today 200 destinations! There’s a lot more competition!

• We have to differentiate. • Experience represents one method that can

generate new revenue and new value.

Minister Pat Bell, Nov 2012

Tourism is growing ... but we’re not getting our share

50#

100#

150#

200#

250#

300#

350#

1990# 1995# 2000# 2005# 2010# 2015# 2020#

Inde

x&Ye

ar&1990&=&100&

Interna/onal&Tourist&Arrivals&Received&Index&Year&1990&=&100&

Source:&&UNWTO,&2011;&Sta/s/cs&Canada,&2012&&

World#

Canada#

In 2000 we embarked on a journey

•Knowing the traveller better

•The internet creating a new playing field

•Increased competition

•The Experience Economy and emerging field of Customer Experience Management

•Learning, innovating, trying, adjusting, and shifting from “Me to We”

•Collaborating to compete

Influenced by:

Edible Canada, Vancouver BC Barkerville, BC

Experiential Travel

Engages visitors in a series of authentic, memorable travel activities, revealed over time, that engage the senses, are inherently personal and makes connections on a physical, emotional, spiritual, intellectual or social level.

Source: Nancy Arsenault (2004)

Experiential product development and marketing focuses on emotion

Benefits• Layer on a new value proposition, ROI + ROE

• Respond to growing market demand with value-based pricing

• Competitive advantage beyond ‘services’

• Lower investment cost, higher emotional returns

• Rewarding for sta!, partners, guests

• Community development, involving non-traditional partners

CTC Experiences Toolkit (Vol. 2), p. 11

TOTA Strategy

In the Beginning1999

2000

Canadian Tourism Commission Task Force

2002 2003

2005

Atlantic Canada begins investing in Experiential Travel Training

CTC Launches New Experiential Brand

Invests in EQ Research

2007

Australia released their

Experiences Toolkit

2009

2011Canadian Tourism Commission Launches

Nova Scotia Toolkit Released

TOTA Begins their Strategic Planning Process

2012

10-year Strategy rooted in

experiential tourism & EQ

research

2013

Case Studies Providing Insight

Emerging destinations are SERIOUSLY

investing

60#

80#

100#

120#

140#

160#

180#

200#

220#

2000# 2002# 2004# 2006# 2008# 2010# 2012#

Overnight*Arrivals*

Inde

x*100*=*2000*

Canada#

World#

United#States#

Selected#Emerging#Des;na;ons#*#

Compe&&ve(Landscape:(#CTC#Overseas#Markets##Trendy#Des;na;ons##

Source:##Tourism#Decision#Metrics#*#Emerging#des;na;ons#include#Brazil,#India,#China,#Turkey,#Southeast#Asia##

Marketing focused on high yield customers

The competitive landscape is such that Canada cannot gain through mass tourism

200#

400#

600#

800#

1000#

1200#

1997# 1998# 1999# 2000# 2001# 2002# 2003# 2004# 2005# 2006# 2007# 2008# 2009# 2010# 2011#

Constant'2002'US'do

llars'

Real'spending'per'trip'by'visitors'to'Canada,'1997;2011''(Constant'2002'US'dollars)'

CTC#Overseas#Markets#

US#

Converted in USD, it is still increasing

Source:##Sta=s=cs#Canada,#Interna=onal#Travel#Survey,#Na=onal#Tourism#Indicators;##Bank#of#Canada###CTC#Overseas#Markets:#UK,#DE,#FR,#AU,#IN,#CN,#JP,#SK,#MX,#BR#

Brand''Premium'

Building a Brand Takes Time

So Does Product Development &

Market Development

... in a world where there’s a customer revolution going on ...

Be in it for the long haul

(c) Nancy Arsenault & Lesley Anderson (2013)

Infrastructure

Activities

Programs

Driving the Sale

Creating Memories(Operators)

Building Themes, Selling Dreams(Enablers)

Inspire Visitation & Sales

Destination Development

ResearchMarket

Development

We All Have A Role To Play


Research

Customer ProfilesMarket Research

ConversionPerformance Measures

Inspire Visitation & Sales

Promotions & Advertising(Traditional, online & mobile)

Media RelationsDistribution Channels & Sales


Product & Market DevelopmentTraining & Capacity Building

FundingStakeholder Relations

Support & Build Capacity


Hotel-Resort-B&BAttraction - Heritage Site

RestaurantRetail

Sports & Performing VenuesConvention Centre

Infrastructure

ProgramsGuides - Storytellers

Tour OperatorsFestivals, Special Events

Non-Traditional Providers

ActivitiesOutdoor Adventure

Wildlife ViewingArtisans/Musicians

Visitor Information Centres

(c) Dr. Nancy Arsnault (2013)

Responsible for the Visitor Experience

What’s your core business?

Infrastructure

Activities

Programs Inspire Visitation & Sales


Research

Making the Experiential Product Shift:Raising the Bar on Engagement, Personalization, Connections & Value

(c) 2012 Lesley Anderson & Nancy Arsenault

Infrastructure

Activities

Programs

Greater Differentiation,

Emotion, & Engagement

No to Low Differentiation,


Competitive Position

Pricing & Profits

ROI

ROI + ROE

Emotional Engagement

PhysicalEngagement

Partnerships+&+Connec0ng+to+People,+Place+&+Culture

Increased+Sales,+Brand+Strength+&+Advocacy

Cost Based Pricing Value-Based Pricing

Making the Shift to Experiential MarketingRaising the Bar on Connection and Conversation

Features

Benefits

Personalization






Conversation

Present Info

Interactive


Generate Awareness


(c) 2013 Nancy Arsenault & Lesley Anderson


The Brand PremiumRaising the Bar on Loyalty

Recognition/ Appreciation

Fan/Advocate






Perception

Consideration

Loyalty


Generate Awareness


No awareness/recognition

(c) 2013 Nancy Arsenault & Lesley Anderson


Experience PEI


Infrastructure

Activities

Programs






Pricing & Profits

ROI

ROI + ROE


PhysicalEngagement



Market Price Value Price

Oceanview Hotel, NL


Infrastructure

Activities

Programs






Pricing & Profits

ROI

ROI + ROE


PhysicalEngagement



Market Price Value Price

+

Its aboutlayers of

opportunity

Photo: Women’s Day Magazine

Identifying the IconicEnriching local flavours

Revealing the story

Expanding personal horizons

Building authenticity

Let’s Apply This Through

Your Themes

It's In Your Heart • travelthompsonokanagan.com

#1 ENRICHING

LOCAL FLAVOURS

INNISKILLIN

Market Price Premium Price





Extreme Icewine(Experience)

Grapes (Commodities)

Restaurant & Wine Tasting (Service/

Activity)

Wine & Gift Store(Goods)

Low VolumeHigh Yield

High VolumeLow Yield


Pricing & Profits

Inniskillin, Niagara-on-the-Lake, ONwww.inniskillin.com

Market Price

www.inniskillin.com

Grapes: 88/kg -$2.20/kg or 40¢ to $1.00/lb

Wine: $12 to $100

Inniskillin Classic Tour: $9/per person

Commodity:

Goods:

Activities/Services:

Credit: Inniskillin Credit: Inniskillin

Market Price

www.inniskillin.com

Great Canadian Kitchen Party: $80 pp

A Sampling of Experiences

Extreme Canadian Wine Experience $27 pp

Exclusive Cool Culinary Experience: $150 pp

Credit: Inniskillin







Pricing & Profits

Raising

'the'Ba

r'on'En

gagem

ent,'

Person

aliza4o

n,'Conn

ec4ons

'and'V

alue

ROI

ROI'&'R

OE

Sales,'Brand'Strength'&'Advocacy

Inniskillin, Niagara-on-the-Lake, ONwww.inniskillin.com






Granville Island Chef’s Market Tour

(Experience)

Food ingredients (Commodities)

Restaurant Dining (Service)

Culinary Artisan Store(Goods)




Pricing & Profits

Edible Canada, Vancouver, BCwww.ediblecanada.com

Vegetables: $1 to $3/kg

Olive Oil: $12 to $100

Served Meals: $12 to $23.00+/per person

Commodity:

Goods:

Services:

Off-site Culinary Adventures:

Chef’s Market Tour: $35/pp (2- 8 pax)Chef’s China Town Tours: $40 - 60/pp (2-8 pax)Guest Chef Market Dinner: $100/pp (14 - 24 pax)Gourmet Kayaking Weekends: $750/pp (8 - 12 pax)







Pricing & Profits

Edible Canada, Vancouver, BCwww.ediblecanada.com

Raising

'the'Ba

r'on'En

gagem

ent,'

Person

aliza4o

n,'Conn

ec4ons

'and'V

alue

ROI

ROI'&'R

OE

Sales,'Brand'Strength'&'Advocacy

WATERMARK BEACH RESORTOSOYOOS, BRITISH COLUMBIA

http://www.watermarkbeachresort.com/ http://www.covertfarms.ca/

Covert Farm Experience Partner“Catalyst for Change”

Land & Buildings(Commodities)

Gift Store(Goods)

Low Volume

High Yield

High Volume

Low Yield

Watermark Beach Resort







Pricing & Profits

Covert Farms & 30 Experience Partners

Spa, Events, Conferences, Dining(Activities/Services)

(c) Nancy Arsenault (2013)

We are now working with 30 experience partners; companies that

have a mutual respect for the customer and the caliber of the experiences they

are seeking ...

... It used to be that tourism entities viewed their neighbours as competitors. Now we have a chance

to deepen our understanding of the traveller together, and help Canada compete for visitors.

Ingrid Jarrett, Vice-President Business DevelopmentOsoyoos, British Columbia

www.watermarkbeachresort.com

#2

IDENTIFYING THE

ICONIC

Unique Sky High Adrenaline Rush

http://www.edgewalkcntower.ca/

CN TOWER EDGE WALK!







Edge Walk(Signature Experience)

Location & Building(Commodities)

Viewing,Restaurant Dining

(Service)

Retail Store, Ticket Sales(Goods)

Low Volume

High Yield

High Volume

Low Yield


Pricing & Profits

CN Tower, ON

#3

REVEALING THE

STORY

THE HERMETIC

CODE







The Hermetic Code(Signature Experience)

Legislative Building(Commodities)

(Service)

(Goods)

Low Volume

High Yield

High Volume

Low Yield


Pricing & Profits

Heartland Tours & Travel

EXCEPT THIS EXPERIENCE HAD A BOOK, PUBLISHED BY THE

LOCAL NEWSPAPER

#4

Expanding Personal Horizons

• Overnight Teepee Adventure• Experience the History, Enjoy the Culture• Teas of Manitoulin• Legends of the Land Riding Trails• Mother Earth Hiking Trail

• Eagle Cloud Crafts• Storytelling• Voice of the Drum• Medicine Walks• and more









Pricing & Profits

Experience the Past, Enjoy the Present

(Experience)

Water, land(Commodities)

Training & Education(Service)

Retail(Goods)

May 2013A New Hotel

#5

Building Authenticity

Your journey! starts here.!

ExperienceRoutes

aligned toCTCEQ

“Cultural Explorer”

But it all these great experiences don’t mean

anything if you forget one core element

____________________

Direct to Consumer

Indirect to Consumer

Group

Travel Trade

Other

Travellers

How are you selling your

Experiences?

PIT

FIT

Canadian Signature Experiences Collection Member Benefits Generated

67%Increased bookings

48%Generated growth in CTC

source markets

83%Advocacy score

91%Captured in assets

51%Received international

media coverage

http://en-corporate.canada.travel/resources-industry

Free Resources Stay Connectedhttp://www.tourismcafe.org/page/join

Join Today

Thanks!

[email protected]

www.tourismcafe.org

[email protected]

www.corporate.canada.travel/

tips from the trenches on experiential travel

Documents

mass tourism

new experiential brandinvests

new value proposition

new revenue

atlantic canada

edible canada

insightemerging destinations

significant destinations