Travel Trends Affecting
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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

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704 677 4018 mobile byoung youngstrategies

  • 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


704 677 4018 mobile byoung youngstrategies

  • 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


704 677 4018 mobile byoung youngstrategies

2008 = CHANGE

“It is not the strongest of the species that survives, nor the most intelligent, but the one that is most responsive to change.”

- Charles Darwin

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

2008 and Beyond

Growth in 2008

finally outpacing 2000 levels-

but it is a completely different world…

…major traveler behavior change is

forcing the travel industry to

reinvent the experience!

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

ChangingConsumerBehavior

  • Twenty 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


704 677 4018 mobile byoung youngstrategies

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


704 677 4018 mobile byoung youngstrategies

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


704 677 4018 mobile byoung youngstrategies

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


704 677 4018 mobile byoung youngstrategies

Attractions - Activities

  • Challenges

  • 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


704 677 4018 mobile byoung youngstrategies

ConsumerConfidence

  • Americans are pulling back

  • June ‘07 – Feb ‘08

  • 2000 - 2007

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

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


704 677 4018 mobile byoung youngstrategies

House Museums

  • New 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


704 677 4018 mobile byoung youngstrategies

Biltmore and more

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

Top Ten Trends for 2008

  • 1. 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


704 677 4018 mobile byoung youngstrategies

Top Ten Trends for 2008

  • 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)

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

Last Minute Travel

  • Who has time to plan anymore?

  • Internet

  • Visitor centers

  • Signage

  • Front-line training

  • “MUST-SEES”

  • Seeking unique experiences

  • Swift inquiry response!

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

Top Ten Trends for 2008

  • 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)

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

Top Ten Trends for 2008

  • 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

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

Generation Y - Millennium

  • Age 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


704 677 4018 mobile byoung youngstrategies

Top Ten Trends for 2008

  • 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%)

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

Top Ten Trends for 2008

  • 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

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

Top Ten Trends for 2008

  • 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

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

Top Ten Trends for 2008

  • 8. Generational Shifts

  • Retiring Boomers

  • GenX entering peak spending years

  • GenY & MGeneration coming of age

  • Develop “age-appeal” products

  • Baby Boomers spending

  • Affinity groups

  • Family groups

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

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


704 677 4018 mobile byoung youngstrategies

Top Ten Trends for 2008

  • 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

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

Orientation & Facilitation

Visitors Centers =

Sales Centers

Gateways that create

a sense of place

A unique destination

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

Top Ten Trends for 2008

  • A New Travel Era

    • Changing 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

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

Other Trends

Traveling with pets –

(14% of all Americans)

Safety & Security always an issue

Team sports – huge growth – long term

Diverse family – grandparents & more

Nature travel

Family reunion growth

Huge Growth in RV Travel

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

Destination Challenge

The definition of

“vacation” has changed

(Go/See/Do

vs.

Chill & Immerse)

Travelers looking to escape

Short getaways

Year round travel

Search for meaning

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

The

Customer

is always right

Destination Marketing & Positioning

  • Your 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

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

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


704 677 4018 mobile byoung youngstrategies

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


704 677 4018 mobile byoung youngstrategies

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


704 677 4018 mobile byoung youngstrategies

Equity

  • Every promotion

  • Can’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


704 677 4018 mobile byoung youngstrategies

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


704 677 4018 mobile byoung youngstrategies

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


704 677 4018 mobile byoung youngstrategies

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


704 677 4018 mobile byoung youngstrategies

TAKE-AWAYS

1. 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


704 677 4018 mobile byoung youngstrategies

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


704 677 4018 mobile byoung youngstrategies

Want to know more?

Berkeley Young, Young Strategies

[email protected]

704-677-4018

Judy Randall, Randall Travel Marketing

[email protected]

704-799-6512

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

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


704 677 4018 mobile byoung youngstrategies

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


704 677 4018 mobile byoung youngstrategies

Brands for Destinations

How many brands can you name?

New York

Virginia

Las Vegas

Washington, DC

Philadelphia

Boston

Pittsburgh

Chicago

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

Brands for Destinations

Is it a brand or a logo?

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

Funding

  • You 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


704 677 4018 mobile byoung youngstrategies

Lodging Segmentation

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


704 677 4018 mobile byoung youngstrategies

Local Lodging Trends

704.677.4018 www.youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600


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