BLUEPRINTFOR THE FUTURE OF TOURSIMBy Greg Klassen, Principal

July 8, 2015

EMBRACING DISRUPTION

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DISRUPTION

BLUEPRINT FOR THE FUTURE OF TOURSIM

The leaders ofthe digital revolution all

want to eat our lunch

Jamie Dimon, CEO JP Morgan

DisruptionApple i-tunes decimates record labels;

Netflix disrupts cable

Hackers disrupt SONY and the movie “the Interview”

Auto and banking are next

Tourism?We’re used to this by now

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DISRUPTION

WHAT DO THESE ORGANIZATIONS HAVE IN COMMON?

BLUEPRINT FOR THE FUTURE OF TOURSIM

world’s largest taxi company

world’s most popular media

world’s most valuable retailer

world’s largest accommodations provider

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WHY IS OUR (DMO) INDUSTRY PARTICULARLY VULNERABLE TO DISRUPTION?

DISRUPTION DMO’s began as intermediaries

Challenges in governance—self interest; short term; status quo; and a democracy

Focused on the short term and tactical under the influence of advertising agencies

Beholden to accommodation industry that collects DMF fees on behalf of the destination

Destinations focus on the “place” over the experience

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and WHY can disruption be

A GOOD THING?

Most of our industry is in airplane mode

Competitive advantage to those

destinations that “game the system” ,

embrace disruption and the new role of the DMO as curators of experiences

Small organizations and DMO’s can compete with the bigger players. Its not about big media buys anymore but about precision targeting

DISRUPTION

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TOURISM’S WINNERS AND LOSERS

Tourism Winners Yesterday

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big icons

big marketing budgets

big agency

uninformed customers

One way communication

Domestic customers; short haul; low hanging fruit

Tourism Winners Tomorrow?

Less competition

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BUILDING MOMENTUM

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BLUEPRINT FOR THE FUTURE OF TOURSIM

our tourism opportunity

2 the disrupters-marketing

3 the disrupters-tourism

4 why this is awesome for small(er)

destinations.

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1Our Tourism Opportunity+Timing is now

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OUR TOURISM OPPORTUNITY

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AN INDUSTRY THAT WILL

DOUBLE BY 2031

GENERATING>$3 TRILLIONIN TOURISM EXPORT REVENUES

Source: Tourism Towards 2030 / Global Overview, UNWTO

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OUR TOURISM OPPORTUNITY

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Source: Tourism Towards 2030 / Global Overview, UNWTO

INTERNATIONALTOURIST ARRIVALS TO

INCREASE BY43 MILLIONA YEAR ON AVERAGE

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OUR TOURISM OPPORTUNITY

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Source: Tourism Towards 2030 / Global Overview, UNWTO

ASIA AND THE PACIFIC WILL ALSOBE THE OUTBOUND REGION THAT

GROWS THE

MOST

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OUR TOURISM OPPORTUNITY

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Source: Tourism Towards 2030 / Global Overview, UNWTO

9% ANNUAL GROWTHIN MILLENNIAL TRAVEL

187 MILLIONTRAVELLERS 18 TO 29

Destination NEXT

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2The Disrupters-Marketing

+Broadcast to Engagement

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TOURISM ADVOCACY LOOP

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LEVERAGING TECHNOLOGY

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Social Media

Big Data

Content Marketing

Personalization Geo-targeting

leverage all kinds of data—web visits, likes in social media, transaction data, clicks on

websites and pull it all together to gather a digital profile of a customer for future marketing

and personalization

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BIG DATA/PROGRAMMATIC

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PERSONALISATION

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reach different consumers with different

creative messages. rather than having to

have a single TV advert that everyone

sees subtly tailor your executions based

on demographics, interests, location or

even purchase history, reaching millions

of consumers with something that seems personally relevant and interesting.

determine the location of a site visitor and the opportunity to deliver

different content to that visitor based on their location—ie.country,

region/state, city, zip organization, and……IP address, ISP,etc.

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GEO-TARGETTING

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WAYBLAZER

Disintermediation squeezing media middle01

COMMON THEMES

Channels ubiquitous; often “free”.02Customers control brands

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Reduced price of entry for SME’s and more even playing field.

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05

07

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Conversations two way. Listen and speak.

Understand product and how it meets needs of customer.

Understand customer. Then Personalize message and channel

DISRUPTION IN MARKETING

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3The Disrupters-Tourism

+Accelerating Growth

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YESTERDAY’S DISRUPTORS?

DISRUPTION IN TOURISM

Internet disrupting travel agent and tour operator disrupted by scrapers (trivago, kayak)

• Direct sales to consumers

• Online Travel Agents

Air Travel disrupts train travel and auto travel

LCC’s disrupt airlines disrupt established destinations and open up secondary and tertiary city airports

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TODAY’S DISRUPTORS?

DISRUPTION IN TOURISM

•

Airbnb disrupts hotels.

Uber disrupts taxi services.

Google, Yelp, Social sharing, ubiquitous wifi andi-pads disrupts Tourism Information Centres, DMO’s, the Concierge

Vayable and Couchsurfing.com disrupt tour operators

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VAYABLE

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GOGOBOT

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TOMORROW’S DISRUPTORS?

DISRUPTION IN TOURISM

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Driverless cars disrupting uber?

Virtual travel disrupting actual travel?

Volume of travelers deteriorate iconic sites?

Commoditization of travel experiences—Gap stores everywhere reduce the exotic lure of travel?

McTourism overwhelms locals and restricts tourism

Transparency of prices01

COMMON THEMES

Disintermediation02

Reduced price of travel03

Local and authentic

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05

07

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Heightened choice and competition

Reduced price of entry to tourism business

Sharing economy

DISRUPTION IN TOURISM

Even more insecurity

in booking travel08

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BLUEPRINT FOR THE FUTURE OF TOURSIM

4Why This Is AwesomeFor Small(er) Destinations

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BE THE DISRUPTOROF THE BIG DESTINATION

(AND BIG MARKETING BUDGETS)

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MARKET LIKE

IT’S 2019NOT 1999.

Path to Purchase—OLD School

Evaluation

Advertising/DMSchoolEncylopediaSlide Shows

Consideration Awarenss

1-800 Number and URL’sTravel AgentPlanning GuideDestination Websites

Purchase/Visit

Travel AgentTour OperatorFodorsVIC’s

Experience/Advocacy C’mon backTell your friends

Path to Purchase—NEW School

Evaluation

Social MediaTV showsLifestyle BrandsNew/traditional mediaBig Data, personalization

Consideration Awarenss

10 to 20 websites—Trip Advisor, Destination Websites; Expedia,

Purchase/Visit

Geo-targeting, personalisationMobileGogobot, Vayable, Yelp, Trip Advisor

Experience/Advocacy Trip Advisor, Yelp, Facebook

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DEEPLY UNDERSTAND THE HYPER-CONNECTED TRAVELER

WHAT DO WE NEED TO DO?

1

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BLUEPRINT FOR THE FUTURE OF TOURSIM

DEEPLY UNDERSTAND THE HYPER-CONNECTED TRAVELER

WHAT DO WE NEED TO DO?

12DEEPLY UNDERSTAND THE

MILLENNIAL AND MILLENNIALLY ALIGNED

TRAVELER

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HYPER-CONNECTED CONSUMERSSPEND MORE

THAN 50% OF

THEIR TIME

ONLINELOOKING AT CONTENT

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27,000,000PIECES OF CONTENT ARE SHARED EACH DAY

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73%OF HYPER-CONNECTED CONSUMERS

GET FRUSTRATEDWITH BRANDS WHEN THEIRDIGITAL CONTENT HAS NOTHINGTO DO WITH THEIR INTERESTS

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HYPER CONNECTED TRAVELERS

DON’T FOLLOWTHE “PATH TO PURCHASE” IN A LINEAR FASHION.THEY CARVE THEIR OWN JOURNEYAND IT CAN BE CONFUSING!

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DEEPLY UNDERSTAND THE HYPER-CONNECTED TRAVELER

WHAT DO WE NEED TO DO?

1Millennials and Millennially-Aligned

Travelers over-index on

experience, novelty, nature,

culture and history

!

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BLUEPRINT FOR THE FUTURE OF TOURSIM

IMPACTFUL TRENDS FOR THE FUTURE OF MARKETING TOURISM (IE. NEXT YEAR)

Millennial Travellers

and Aligned will

dominate by 2030

Local and authentic will rule

Massive Growth will need to be managed strategically

Marketing much more precise and less wasteful

Less big agency and more micro campaigns

Bring disruptors into tourism fold

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IMPACTFUL TRENDS FOR THE FUTURE OF MARKETING TOURISM (IE. NEXT YEAR)

TARGET THE RIGHT CUSTOMERS

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Free Spirits

Cultural Explorers

Authentic Experiencers

No-hassle Travellers

Gentle Explorers

Rejuvenators

Market Share, Revenue Potential

Age, Gender, Income

Travel Motivators – Trip Type, Accommodation, Food, Activities

Preferred Media Sources For Inspiration, Planning, Advocacy

What Sorts Of Canadian Tourism Experiences Appeal To Them

Marketing Considerations – Messaging, Voice, Personality

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UNDERSTAND HOW THE UNIQUE SELLING POINTS (USP’S) OF YOUR “REGIONAL” BRAND

THAT MATTER MOST

WHAT DO WE NEED TO DO?

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Boulders Rocks Pebbles

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DETERMINE HOW WE BRING THOSE USP’S TOLIFE ACROSS INTEGRATED CHANNELS TO CONNECT

WITH TRAVELERS AT:

WHAT DO WE NEED TO DO?

MOMENT THEY DISCOVER YOUR DESTINATIONE/EXPERIENCE(FIRST

MOMENT OF TRUTH)

WHEN THEY PURCHASEYOUR DESTINATION/EXPERIENCE(SECOND MOMENT OF TRUTH)

WHEN THEY EXPERIENCEYOUR DESTINATION/EXPERIENCE

(THIRD MOMENT OF TRUTH)

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THEN…DELIVER THE JAB, JAB RIGHT HOOK WITH CONTENT

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It’s About Content

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Follow The Global

Traveler

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A SHIFT TO CONTENT MARKETING

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CONTENT IS A SUSTAINED, ALWAYS ON STRATEGY THAT SUPPORTS AND EXPANDS THE EFFECTIVENESS OF PAID MEDIA.

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SOURCE OF CONTENT

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Curation

Assembly

Creation

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PUBLISHING PLAN

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WHY NOW?

NOTHING WILL EVER MOVE THIS SLOWLY AGAIN

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TOURISM WINNERS AND LOSERS

Tourism Winners Yesterday

BLUEPRINT FOR THE FUTURE OF TOURSIM

big icons

big marketing budgets

big agency

uninformed customers

One way communication

Domestic customers; short haul; low hanging fruit

Tourism Winners Tomorrow

Embracing change, risks and technology for competitive advantage

Understanding customers, product, USP’s, brand and how it all ties together

Seeking potential in international markets

Communicating role of tourism in economic development

Collaboration…rowing in same direction—partners and customers AND disrupters

Less competition

“Destination differentiated by “experiences”

Thank you

Greg KlassenTwenty31 Consulting

@klassenGreg