travel trends and destination marketing€¦ · silent generation (71 – 85) 1925 – 1942...
TRANSCRIPT
YOUR LOGO
Travel Trends And Destination Marketing Berkeley Young, President
Young Strategies, Inc.
2014 Henderson County
Tourism Conference
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YOUNG STRATEGIES, INC
Destination research and strategic planning
Research for 100+ destinations in 26 states
Communities, regions and states
Travel industry focused
National research data and trends analysis
Writing and speaking
Board workshops & planning sessions
Listening to travelers
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A Note on Sources
YSI combs through as much data as possible
Reliable sources – you too can subscribe to many
We translate the data into meaningful strategy for you
Some are expensive, many are free!
We want you to be informed
US Travel Outlook
Smartbrief.com
HotelNewsNow.com (STR)
2012/13 – Recovery to expansion?
“Counterintuitive”
Stock market erratic, corp. cash stockpiles
Federal, State & Local governments strapped
Spending
Taxes
Deficit
Unemployment slowly improving under 8%
Personal savings up
Personal spending down
Higher prices – gas, food and yes, travel
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GDP – Wells Frago predicts 2.8% growth in 2014
Employment – travel industry continues adding jobs
Consumer Confidence –
Consumer Spending – remains modest, but up
Business Travel - The latest global travel association
quarterly report predicts U.S. business travel spending will
rise 6.6% to $289.8 billion in 2014, up from a 3.8% growth
rate in 2013. Page 5
A Quick Summary of Economic Statistics
Leisure Travel – 61% of Americans say they will travel in 2014, taking an average of 2.4
vacation trips.
Of those traveling, nearly 70 percent said they will take one to two trips next
year, with another 30 percent reporting three or more trips.
People with higher incomes are more likely to travel.
Nearly three-quarters (73%) of those earning $50,000 and over plan to take
at least one vacation trip 100 miles or more away from home, while 46
percent of those earning under $50,000 also plan to travel
85% of those traveling said they will vacation within the U.S. and Canada,
with 15 percent planning to travel outside the continental U.S.
Source: US Travel Insurance Association Traveler Survey (UStiA).
Group Travel – coming back in certain markets
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A Quick Summary of Economic Statistics
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Travel Price Index - July 2013 vs. July 2012
1.10%
2.10% 2.30% 2.10% 2.40%
4.30%
3.30%
5.10%
2.80%
2.00%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Source: US Travel Association
The travel industry is raising prices and
travelers keep going!
Developed by the U.S. Travel Association, the Travel Price Index (TPI)
measures the seasonally unadjusted inflation rate of the cost of travel away
from home in the United States. The TPI is based on U.S. Department of
Labor price data collected for the monthly Consumer Price Index (CPI). The
TPI is released monthly and is directly comparable to the CPI.
Lodging is often the primary funding
source of destination marketing
So let’s understand what is going on with
lodging in the United States
The best source for lodging data…
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Smith Travel Research - STR and STR Global track
supply and demand data for the hotel industry and
provide valuable market share analysis for all major
international hotel chains and brands. STR is the
world’s foremost source of historical hotel performance
trends and we will offer the definitive global hotel
database and development pipeline.
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Hint from YSI: Your growth in room tax revenue may be from
increased room rates more than room nights sold….so track supply
and demand! You need to know if more rooms were occupied!
2013 / 2014 Forecast
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2014 - An evolving traveler
Last minute planning
continues
Value seeking
More shorter trips
Exploring new planning
technology
Changing travel party
demographics
Fewer but more
engaging activities
55-70 = saving money! Page 14
An evolving traveler - leisure
FUNDAMENTAL
SOCIAL CHANGE:
Leisure travel is no
longer just a luxury
for most
It is a form of therapy
We just have to get
away!
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An evolving traveler - leisure
The NEED to GET
AWAY:
Get away from work,
friends, family
Get away from debt,
politics, religion
TRUMPS:
Price of gas
Lack of job
Debt, politics, family, etc.
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An evolving visitor experience
We keep creating more to do!
Restaurants
Attractions
Museums
Entertainment
Sports
Shopping
Festivals & events
Wineries
For people who have less time to do it?
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The Planning Methods
Jaded travelers – been there done that
Social media = relationship
Last minute planning > news cycle
Technology to plan and book
Website = experience (videos)
Impatient travelers want you to take charge of their
TOTAL experience
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Monitor Media & Tech Used by Your Target
Traditional Ads & Public Relations
Technology & tech-mobility
Planning = PC > laptops > tablets
In the destination = Smart Phones & tablets
Search engines & OTA’s
Social media
Apps vs. mobile web sites
Pre-trip or on-the-road planning
Mobile/text message marketing
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What Age Group Are You Targeting?
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What Age Group Are You Targeting?
Silent Generation
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What Age Group Are You Targeting?
Baby Boom
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What Age Group Are You Targeting?
GenX
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What Age Group Are You Targeting?
Millennials
YOUR LOGO
Some Things Will Never Change
20s – The Age of Idealism
30s – Reality Sets In
40s – The Big Squeeze
50s – Return to the Top
60s – Vocation to Avocation
American Generational Cohorts
Silent Generation (71 – 85) 1925 – 1942
Retired, cautious, active, practical
Baby Boomer (53 – 70) 1943 - 1960
Bold, active, engaged, saving, fun-loving
GenerationX (32- 52) 1961 - 1981
Informed, practical, tech-savvy, parenting, value-seeking
GenerationY Millennials (13 – 31) 1982 – 2000
Confident, connected, informed, open-minded, experience seeking
Generation Age Groups Source: AnnFishman.com
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Is a Travel Industry Essential to Henderson County?
Essential
adj uh-sen-shuhl
1. vitally important; absolutely
necessary
2. basic; fundamental: the essential
feature
How is your DMO described?
“A nice group promoting our city.”
or
“An essential part of our city’s
economic development strategy.”
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DMO Board of
Leaders
Highly Skilled
DMO Staff
Accreditation
Annual Economic
Impact Report
Board brings clout in the community and focused direction.
Mix of travel industry leaders and power players.
President/CEO and team of dedicated professionals.
Sales, Marketing and Visitor Services
Research and Strategic Plan
Maintaining the highest standards of excellence within the industry.
Demonstrating validity within the community.
Showing the impact of travel within your community.
Demonstrating that travelers provide jobs and tax relief for locals.
Standard Recommendations for Respect
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Target markets? Drive vs. Fly
What are the demographics?
Generation groups
Visitor segmentation
Leisure
Events & meetings
Group tour
How does each segment make
their travel decision? How can you
influence that decision?
Your plan must be based on knowledge of the following
Standard Recommendations for Respect
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Your Essentialism Lies Within YOUR Community Leaders
Prove Your R.O.I.
Impact of travel is not always seen
as the result of your DMO work.
Tax relief is important but how much
of that did your DMO produce?
Community leaders want to see what
you are doing:
To generate more visitors
To provide jobs
To drive increased spending
Heads in beds!
You make your case…but what makes them care?
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Case Study Cabarrus County, NC – Where Racing Lives
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1990’s and Prior
Located northeast of Charlotte on Interstate-85.
Concord is county seat.
Home of Charlotte Motor Speedway.
Multiple race team headquarters “shops”.
Textile mills & manufacturing.
1999
Concord Mills mega-mall opens at Exit 49 Concord.
1.4 million square feet.
Bass Pro Shops & major retailers.
New restaurants, movie theaters and activities
Hotel building boom begins.
1990’s Cabarrus is 20th among NC Counties in Travel Impact
Cabarrus County, NC – Concord & Kannapolis
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Cabarrus County, NC - Visit Cabarrus
2000 – 2009
2001 – CVB moves into
new Chamber Office
Building at Exit 60 in
Kannapolis
Period of rapid travel
growth in the County and
inconsistent leadership
from Cabarrus CVB
CCCVB Board and staff
leadership at odds
2009
Donna Carpenter hired as
CVB President/CEO.
Complete restructuring of
staff.
Board retreat to
reorganize the CVB
Board.
Benchmark research
process initiated
2010
Great Wolf Lodge opens,
80,000 sq. ft. water park
& 402 rooms, $250+ ADR
2,900 rooms in County
CVB Budget
Lodging market analysis
and race visitor surveys
Partnership
New Leader + New Direction + Focused Plan = New Respect
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Cabarrus County, NC - Visit Cabarrus
2011
Cabarrus County is 12th in
NC travel impact.
Long range strategic
planning for the
destination.
Community leader
surveys & workshops
Vision 2020 Revealed
Car & hauler go mobile!
2012
Exit 49 committee formed
New brand, new website
CVB moves to new office
VIC location at Exit 49.
Sales staff increased.
GWL adds group space.
Carolina Courts opens.
2013
Allegiant announces first
commercial flights into
Concord!!
Sea-Life Aquarium ground
breaking at Concord Mills.
CVB leadership roll in
community expands.
New Leader + New Direction + Focused Plan = New Respect
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A BOLD new Vision for the Future Cabarrus County, NC – Where Racing Lives
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Case Study Tupelo, MS – Birthplace of “The King”
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Tupelo, MS – Birthplace of Elvis Presley
Prior to 2010
1,700 rooms, Elvis Birthplace, aggressive leaders on a mission.
Well funded DMO - 2% Meals Tax, 2% Lodging Tax. $2 Million+ budget.
10 person staff, film office, sports, sales, marketing. 9 person Board.
Lack of accountability from CVB.
2010/11
Neal McCoy promoted to president/CEO.
First ever research and planning study initiated.
Marketing and sales plan with specific goals established.
Sales staff realligned.
2011/12
Research and strategic plan rolled out at multiple leader sessions
Board refocused at retreat, staff realligned, budget reallocated.
Leadership training program established.
New staff positions established.
New Leader Refocuses the DMO
Visitor Survey – Spending
Trip Characteristics
LEISURE DAY
TRIPPERS
LEISURE/ GROUP
OVERNIGHT
BUSINESS
CONFERENCE
MEETING
TEAM
SPORTS
Average # Nights 0 2.3 2.4 2.4 1.5
How much did you spend while in Tupelo?
Lodging
Shopping
Food/Meals
Attractions/Events
Auto Fuel
Total
$0
$123.02
$37.55
$29.64
$30.29
$220.50
$176.22
$136.21
$117.16
$85.19
$73.19
$587.97
$207.89
$129.75
$119.61
$40.87
$102.90
$601.02
$220.80
$137.85
$98.66
$27.57
$59.32
$544.20
$150.04
$103.75
$126.93
$40.29
$67.67
$488.68
Lodging Tax – 2%: $0 $3.52 $4.16 $4.42 $3.00
Meals Tax – 2%: $0.75 $2.34 $2.33 $1.97 $2.54
Sales Tax – 7.25%: $15.99 $42.63 $43.57 $39.45 $35.43
Water District .25%: $0.55 $1.46 $1.50 $1.36 $1.22
City General Fund 18%/7% $2.77 $7.40 $7.57 $6.85 $6.15
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CVB Steps Into Position of Power in Tupelo
CVB 2013 Milestones
Powerful Board – 30 minute
meetings! Leaders want in!
CVB President sought to serve on
local and state boards.
Candidates for office come to CVB
President for advice.
CVB creates product development
fund and asks EDC to administer.
Top quality marketers come to the
CVB for jobs.
Attractions & lodging count on the
CVB for sales and planning.
The CVB is essential to Tupelo as the result of
focused leadership and constant communication.
Essential to Your Community Extends to the State!
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The Process.
Engage your leaders &
staff in the process up
front. Build consensus
for the plan. Inclusion
is critical.
The Plan.
Be bold and put it out
there…what you are
going to accomplish
with deadlines. Work
to earn “buy-in”.
The Victory.
Celebrate every
victory and report
your ROI. Use your
Board and electeds
as spokespersons.
The Experience.
Solid research and
partnership in
developing the vision
plan for the
community as a
destination.
The Partnership.
Embrace your travel
industry leaders and
engage other E.D.
agencies regularly.
Close relationships
with electeds.
Step 1 Step 2 Step 3 Step 4 Step 5
Making Your DMO ESSENTIAL to Your Community
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Do You Have
Any Questions?
Contact Information
Berkeley Young,
Young Strategies, Inc
704-677-4018
704-770-3333
Follow me:
www.facebook/berkeleyyoung
www.twitter.com/berkeleyyoung
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