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Changing Trends Affecting Cultural & Heritage Travel Cultural & Heritage Tourism Alliance Conference Seattle, Washington December 1, 2007. (704) 677-4018 mobile byoung@youngstrategies.com PO Box 12600, Charlotte, North Carolina 28220-2600. Dynamic partnership

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  • Changing Trends Affecting Cultural & Heritage Travel

  • Cultural & Heritage Tourism Alliance Conference

  • Seattle, Washington

  • December 1, 2007

(704) 677-4018 mobile

byoung@youngstrategies.com

PO Box 12600, Charlotte, North Carolina 28220-2600


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  • Dynamic partnership

  • Destination research and strategic planning

  • Research for 100+ destinations in 26 states

  • Small to mid sized communities

  • 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


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2007-08 = 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


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2007 and Beyond

Growth in 2007 and into 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


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ChangingConsumerBehavior

  • Twenty years of change (1986)

  • 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

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


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Ups and Downs

  • Increase in leisure tourism,

  • Lodging occupancies are up, BUT

  • Decline in visitation to many historic sites

  • Decline in attendance to many heritage attractions

  • Increase at many theme parks

  • Increase in retail shopping

  • Increase in dining

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


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2007 and Beyond

“If cultural and heritage tourism

is so HOT?

Why are my numbers NOT?”

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


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NationalLodging

  • Data Source: Smith Travel Research STR Report

  • RTM 2007 projection = 63.7% (growth in inventory)

  • ADR & RevPAR up!

  • Less resort hotel building, more fractional ownership resort development

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


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Airlines

Airline Selection Criteria:

Schedule/convenience-61%

More leg room-11%

Earning Flyer Miles-9%

Price increases expected

Source: Travelocity 12/06

  • Source: Air Transport Association

  • Prices below 2000 levels but going up

  • 2005 Losses: $4.1 Billion

  • 2006 Losses: $0.5 Billion

    • U.S. Fleet 20% smaller

    • 160,000 jobs cut since 2000

    • Fuel costs doubled over 2005

  • 2007 projected profit = $5.1 Billion

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


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CruiseIndustry

  • Cruise Lines (CLIA):

  • Out-performed all travel segments since 2000

  • It’s easy!

  • Formidable growth in 2007

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


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Convention&Meeting

  • U.S. Business/Convention Travel (domestic):

  • Growth is driven by:

  • Fun location (resorts, riverfronts, casinos, etc.)

  • Convenience (walking scale once there)

  • Unique experiences, events & great speakers/topics

  • Cost containment

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


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Domestic Leisure

  • U.S. Leisure Travel (domestic person trips) (TIA): Increase has never faltered

  • We all NEED to get away!

  • Exploring UNIQUE places

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


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Domestic Leisure

  • Increases in Leisure travel

  • “ 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


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ConsumerConfidence

  • Americans are cautiously optimistic

  • FEB ‘07 – Oct ‘07

  • 2000 - 2007

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


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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


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Group Tour

  • Great Potential for Rebound

  • Affinity, affinity, affinity

  • Last minute planning taking its toll

  • Hard to sell-out per capita tour

  • Custom designed for Baby Boomers or other age groups

  • Freedom without the hassle, cruise ship on land

  • Something you can’t get any other way

  • Huge growth in student travel – now 25% of international travel (SYTA)

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


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Attractions

  • Challenges

  • More to do…less time to do it

  • 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

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


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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


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Biltmore and more

  • Major Business Units

  • Destination

    • Attraction

    • Inn on Biltmore Estate

    • Explore Biltmore Estate

  • Biltmore Estate Wine Company

  • Biltmore Estate Reproductions Inc.

  • Key Statistics

  • 1,000,000 visitors annually

  • 140,000 cases of wine

  • 42 licensees

  • 66,000 room nights

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


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Biltmore and more

  • Key Statistics

  • $117 million in revenue

  • $350 million impact on community

  • 10% – 12% return on sales

  • 1,500 employees

  • $12 million in taxes

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


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Biltmore and more

NEW TOURS, ATTRACTIONS, EVENTS…

  • Downstairs Tour

  • Behind the Scenes

  • Christmas

  • Festival of Flowers

  • Winery

  • Retail

  • Dining

  • Hotel

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


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Biltmore and more

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


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Biltmore and more

William Amherst Vanderbilt Cecil

“We don’t preserve Biltmore Estate to make money—we make money to preserve Biltmore Estate!”

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


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Top Ten Trends for 2007-08

  • 1. 2007 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


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Top Ten Trends for 2007-08

  • 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


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Last Minute Travel

  • Who has time to plan anymore?

  • Internet

  • Visitor centers

  • Signage

  • Front-line training

  • “MUST-SEES”

  • Seeking unique experiences

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


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Top Ten Trends for 2007-08

  • 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


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Top Ten Trends for 2007-08

  • 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


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Top Ten Trends for 2007-08

  • 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


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Top Ten Trends for 2007-08

  • 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


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Top Ten Trends for 2007-08

  • 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


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Top Ten Trends for 2007-08

  • 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


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Top Ten Trends for 2007-08

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


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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


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Top Ten Trends for 2007-08

  • Orientation & Facilitation are 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


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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


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Top Ten Trends for 2007-08

  • 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


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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


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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


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Thriving amidst Change

  • Research is the answer to grow with the new behavior patterns!

  • Research as a foundation

  • MUST know your customer!

  • Market segmentation approach

  • A focused plan for the community

  • BE a unique destination

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


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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


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Want to know more?

Berkeley Young

byoung@youngstrategies.com

704-677-4018

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