the marketing environment: tourism and outdoor recreation steven w. burr, director institute for...

The Marketing Environment: Tourism and Outdoor Recreation

Steven W. Burr, Director

Institute for Outdoor Recreation and Tourism

Utah State University

Presentation for Marketing Your Moab Business Workshop

Moab Valley Inn, Moab, UtahJanuary 24, 2002

The Marketing Environment

Promotion is everywhere! Consumers today are inundated with messages

of all kinds. Traditional advertising mediums—TV, radio,

magazines, and newspapers Now projected that an average adult in the U.S.

has a daily potential exposure figure of 247 ads, of which 136 were given at least some attention.

A Competitive LandscapeTourism Media Spending 2000

Railroad Travel $29,378,200

Cruise Ship Travel $249,956,700

Domestic Airline Travel $504,542,800

Foreign Airline Travel $220,823,900

Public Transportation $45,934,000

Travel Services $659,881,000

Domestic Hotels/Resorts $1,003,755,600

Foreign Hotels/Resorts $184,226,400

Domestic Tourism Promotion $326,937,100

Foreign Tourism Promotion $146,971,800

Amusement, Water, Theme Parks $285,478,800

TIME PERIOD TOTAL $3,657,886,300

MEDIA CATEGORIES: Print (Magazines & Newspapers) Outdoor TV Radio

Source: 2001 Competitive Media Reporting and Publishers Information Bureau

A Competitive Landscape

To break through all of the existing clutter, our messages must be precise, enticing, and targeted to hit consumers at the right time and at the right place when they are considering their vacation options.

Continuing and Emerging Trends Continually monitor the global trends affecting

tourism and the travel industry

Evolution of the Experience Transition to an Experience-Based Economy Amenity-Based Experiences

Today’s travelers seek new and unique experiences. Traditional tourism activities being augmented by adventure

travel, wildlife viewing, recreation transportation (bikes, snowmobiles, watercraft), nature and eco-tourism, cultural heritage tourism.

Big Fun is Big Business! Leisure-entertainment lifestyle economy Spending, jobs, and taxes Leisure spending projected to be 50% of GDP by 2015.

Continuing and Emerging Trends

It’s not just the actual vacation experience! Vacation—includes all that occurs before, during, and

after the actual trip. Consumers today savor the experience of planning the

vacation. There exists a strong emotional component to planning the

vacation—“exciting, relaxing, enjoyable, awesome” Need to create the most enjoyable experience for people

planning their trip and then continue to find ways to remind them of the excitement and energy of their vacation.

Continuing and Emerging TrendsSource: Travel Industry Association of America

Increase in Visits to Friends and Relatives On the rise nationally Using vacations as a “reconnection” opportunity

with family members and friends. 51% of consumers spend time with friends and

family for fun and enjoyment, second only to watching TV.

When asked about vacation criteria, time with family is cited most frequently (47%).


Visiting Friends and Relatives (VFR) Traveler Valuable asset to the tourism industry Spend more money Experience-oriented Tend to want to participate in a multitude of

activities during their visit. Their hosts also spend a significant amount of

money in-state while entertaining their guests.

Continuing and Emerging Trends Source: Travel Industry Association of America

Continued Consumer Focus on “Mini-Trips” Overnight leisure trip of one to five nights away from home

traveling at least 50 miles or more, one way and including a Friday, Saturday, or Sunday night stay.

Half of all U.S. adults take at least one weekend trip per year (almost 103 million adults).

Almost 30% of Americans have taken five or more weekend trips in the past year; 35% take their children.

May be due to increasing desire to try new activities and visit new destinations on a regular basis.

Shorter trips allow travelers a chance to enjoy new adventures with a minimal outlay of time, vacation days, and finances.


Spur-of-the-Moment Trips With 52 weekends a year to choose from,

travelers have the flexibility to make “spur-of-the-moment” decisions about trips.

One-third of weekend travelers take advantage of coupons, discounts, or special offers while planning or on their mini-trip.

Sources of information are websites, travel guides, magazines, and newspaper travel sections.


0 10 20 30 40

City or Urban Area

Small Town or Rural Area

Ocean or Beach

Mountain Area

Lake Area

State or National Park

Theme or Amusement Park

Type of Destination Visited on Most Recent Weekend Trip Among Past-Year Leisure Travelers Who Took a Weekend Trip

percentage


Destination not located close to a major metropolitan market? …and therefore harder to convince a consumer

to spend the extra time to travel, face more barriers, and spend possibly more money on their mini-vacation…

Must provide more compelling reasons, more relevant information, and more options to entice the consumer to consider your destination for their mini-trip getaway.


Customization to a Customer of One Desire by consumers to have a truly customized

vacation experience… Consumers are empowered!

Can get what they need more quickly and in a more personalized format.

Consumers want the total experience!Want the ability to customize the experience to fit their

specific needs.Want the experience compacted into the allotted vacation

time available.


Continuing Impact of the Internet Internet has become a mainstream medium and has

done it faster than any other medium in history. Americans of every race, creed, and socio-economic

status are now online and their numbers are growing. 58% of U.S. households now have Internet access; about

102 million households Travel research has become one of the most popular

online activities in recent years. Internet has become a mainstay in the vacation

planning process.

The Traveling Public

Important to consider as many facets of the traveling public as possible in order to best develop communications that motivate these diverse consumers and cause them to act.

Need to take a deeper look and not just base marketing plans on straight demographic averages.

The Traveling Public

To really out-think our competitors, we need to understand our consumers intimately:

•What are their characteristics?

•What influences them?

•How do they plan their trips?

•Basically, what makes them tick?

General Traveler Segments

Older Matures— GI Generation (71+ years old) Depression (61-70 years old)

Matures— War Babies (55-60 years old)

Baby Boomers—(35-54 years old) without children on trip

Generation X—(24-35 years old) without children on trip

Generation Y—(6-23 years old)

Who are our travelers and how big is the market segment?

U.S. Overall vs. Population Segments

by Category

Millennials8%

Gen Y26%

Gen X16%

Boomers28%

War Babies6%

Depression7%

GI Generation

9%

Older Matures (16%)Depression (61-70 years old)

GI Generation (71+ years old)

With health, have time and dollars to travel

Have appetite for knowledge

Low spenders, but travel longer

More likely to drive Travel in

summer and fall Use travel agents,

friends/family, vacation guidebooks & magazines

Influenced by friends/family; Media—editorials, advertising

Transportation by own auto/truck, bus/train, airplane

Vacation types: VFR; naturalistic; general sightseeing; heritage; beach/lake; city

Planning Timeline: 0-12 months

Matures (6%)War Babies (55-60 years old)

With health, have time and dollars to travel

Have appetite for knowledge

Travel longer Travel in

summer and fall Use travel agents,

friends/family, vacation guidebooks & magazines

Influenced by friends & family; Media—editorials, advertising; activity

Transportation by own auto/truck, airplane, rental car

Vacation types: VFR; naturalistic; general sightseeing; heritage; beach/lake; city


Baby Boomers (28%)Without children on trip (35-54 years old)

72% married (average 52 years old)

56% children in household 59% two person household Environmental interest Appetite for adventure Travel year-round Use internet, travel agents,

friends/family, vacation guidebooks, magazines

Influenced by friends & family; acceptance within the group, consensus; Media—editorials, advertising; activity

Transportation by airplane, rental car, own auto/truck

Vacation types: naturalistic; VFR; beach/lake; general sightseeing; city


FamilyMost likely comprised of Boomer families

College educated Married couples 50% have a household

income of $50K+ Interest in family-oriented

activities Travel in summer Use Internet, travel agents,

friends/family, vacation guides

Influenced by friends & family, children

Influenced by media—editorials, advertising; activity

Transportation by own auto/truck (66%), airplane (19%), rental car

Vacation Types: historic/heritage sights; ocean/beach; city; lake; general sightseeing


Generation X (16%) Without children on trip (24-35

years old)

Kids of Boomers Group mentality Appetite for the

extraordinary Moving toward

mainstream activities Travel year-round Use Internet,

friends/family

Influenced by friends/family; Media—MTV, X-Games, editorials, advertising

Transportation by airplane, rental car, own auto/truck

Vacation Types: naturalistic; VFR; beach/lake; city


Generation Y (26% ) (6-23 years old)

Kids of Boomers Fiercely independent Seek out non-mainstream

activities Travel year-round Use Internet,

Friends/Family Influenced by

friends/family; Media—MTV, X-Games; trends

Transportation by rental car, own auto/truck, airplane

Vacation Types: naturalistic; VFR; beach/lake; city; hiking/camping/climbing


Changing Face of Tourists

As Baby Boomers grow older and move towards retirement, large amounts of both time and money will become available for the pursuit of their leisure activities.

Minority groups, including African-Americans, Asian-Americans, and Hispanics, are among the fastest growing population groups in the U.S. and will represent an increasing percentage of all travelers.

Changing Face of Tourists

Combination of easier access to information and economic growth will open markets in Latin America, Asia, and Eastern Europe.

Combined with existing markets in Canada and Western Europe, international tourism presents a very high growth potential.

Primary Purpose of Travel to Utah is for Leisure Purposes

One-third of leisure travelers come to Utah to visit friends and family.

One-fourth come to enjoy a general vacation. Less common—

Visitors attending a special event Visitors enjoying a getaway weekend

Leisure travel represents 80% of domestic, non-resident overnight visitation.

Most overnight visitors to Utah participate in some type

of outdoor recreation activity

0 5 10 15 20

National/State ParksTouring

Historic Site

Cultural Site

Hiking/BikingSkiing

Camping

Group Tour

Hunting/Fishing

Sporting Event

Percentage of domestic overnight visitors

Source: D.K. Shifflet & Associates, Ltd. 1998 Directions Data

Top Ten Activities of Domestic Overnight Visitors to Utah

Outdoor Recreation in Utah

Utah attracts more visitors than the national average who participate in soft adventure and outdoor recreation activities.

Utah exceeds the national average in national park and state park visitation.

Utah exceeds the national average in participation in hiking and biking, camping, skiing, hunting and fishing, and sailing and boating.

Outdoor Recreation Trends 1982-2000

Source: 2000 National Survey on Recreation and the Environment

ACTIVITY # in 2000%

Growth ACTIVITY Growth # in 2000

Bird Watching 71.2 Mil. 235.9% Walking 85.4 Mil. 179.0 Mil

Hiking 73.1 Mil. 195.9% Bird Watching 50.0 Mil. 71.2 Mil.

Backpacking 23.4 Mil. 165.9% Hiking 48.4 Mil. 73.1 Mil.

Snowmobiling 66.9 Mil. 107.5% Swimming 36.4 Mil. 92.9 Mil.

Walking 179.0 Mil. 91.2% Sightseeing 32.7 Mil. 114.0 Mil.

Off-Road Driving 27.9 Mil. 89.2% Picnicking 31.8 Mil. 116.6 Mil.

Primitive Camping 32.2 Mil. 81.9% Bicycling 27.4 Mil. 83.9 Mil.

Developed Camping 52.8 Mil. 76.0% Developed Camping 22.8 Mil. 52.8 Mil.

Downhill Skiing 17.7 Mil. 66.9% Motor Boating 17.8 Mil. 51.4 Mil.

Swimming 78.1 Mil. 64.4% Off-Road Driving 17.3 Mil. 36.7 Mil.

Fastest Growing Activities Activities Adding Most Participants

International Travelers to Utah

Expected to be one of the fastest growing traveler segments over the next few years.

Currently, international visitors account for nearly 5% of total non-resident visitors.

International travelers are sensitive to economic conditions in their home country.

Strength of U.S. dollar has prompted some visitors to choose other destinations or alter their spending.

International Travelers to Utah

Major international markets include Canada, Germany, France, United Kingdom, Japan, Belgium, Netherlands, Luxemburg, Italy, and Switzerland.

International visitors are attracted to Utah’s National Parks and other public lands.

International visitors are attracted to the large number of ethnic, cultural, and historic resources in the state.

Typically, more affluent, stay longer, more likely to participate in spending activities than U.S. visitors.

Domestic versus Overseas Visitors to Utah

Traveler Characteristic U.S. Travelers Overseas Travelers

Household Income $58,300 $72,800

Avg. Per-Day Spending $87 $81

Avg. Length of Stay 3.6 nights 5.7 nights

Purpose of Trip 80% Leisure 81% Leisure

Avg. Travel Party Size 2.7 persons 1.9 persons

Party Composition 68% adults 90% adults

Accommodations 50% Hotels/Motels 76% Hotels/Motels

Leisure Activities19% National/State

Parks78% National/State

ParksSources: Domestic—D.K. Shifflet & Associates, Ltd. Directions Data International—U.S. Department of Commerce, Tourism Industries 1997-99 Analysis

For the Transition to the Experience-Based Economy

Today’s travelers seeking new and unique, amenity-based experiences.

Utah has… The icons—from redrock to world class alpine

(natural and cultural resource-based amenities)

Public sector mandate and interest Private sector interest and involvement

Successful Rural Tourism Development

Citizens Residents

Special Interest Groups

Elected Officials

Government Agencies

BusinessesMediaConservation Groups

Resource Managers

Marketers &

Promoters

Tourism Planners & Developers

Institute for Outdoor Recreation and TourismCollege of Natural Resources


Dr. Steve Burr

Associate Professor of Recreation ResourcesDirector, Institute for Outdoor Recreation and Tourism

Extension Specialist in Outdoor Recreation and Tourism

Institute for Outdoor Recreation and Tourism College of Natural Resources


5220 Old Main HillLogan, Utah 84322-5220Office: (435) 797-7094FAX: (435) 797-4040

E-mail: [email protected]

Visit the IORT Website at www.cnr.usu.edu/iort

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