travel trends and destination marketing€¦ · silent generation (71 – 85) 1925 – 1942...

YOUR LOGO

Travel Trends And Destination Marketing Berkeley Young, President

Young Strategies, Inc.

2014 Henderson County

Tourism Conference

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

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

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.

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

A Quick Summary of Economic Statistics

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…

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.

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

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!

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!

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.

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?

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

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

What Age Group Are You Targeting?


Silent Generation


Baby Boom


GenX


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

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.”

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

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

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?

Case Study Cabarrus County, NC – Where Racing Lives

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

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

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

A BOLD new Vision for the Future Cabarrus County, NC – Where Racing Lives

Case Study Tupelo, MS – Birthplace of “The King”

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

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!

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

Do You Have

Any Questions?

Contact Information

Berkeley Young,

Young Strategies, Inc

[email protected]

704-677-4018

704-770-3333

Follow me:

www.facebook/berkeleyyoung

www.twitter.com/berkeleyyoung

travel trends and destination marketing€¦ · silent generation (71 – 85) 1925 – 1942...

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