Experiential Travel: Differentiating Your Destination While Spreading

the Benefits to Communities

January 10, 2012

Sustainable Travel International Webinar Series

STI’s forward-thinking solutions strengthen the positive impacts of tourism worldwide, with a clear focus on the bottom line for

businesses and destinations.

We look forward to working with you in 2012 and beyond!

Leave the World a Better Place®

Sustainable Travel International

• Destination Stewardship

• STEP: Education & Eco-Certification • Carbon Management

• Philanthropy Development

• Partner Program

• Sustainable Travel Leadership Network

• Marketing & Communications

Program Overview

• Refining our offerings and creating next generation tools

• Delivering increased value and quality results

• Advancing the sustainable tourism movement

• Expanding our global impact

2012 Overview

• Share in STI’s innovative and strategic suite of sustainability solutions

• Connect with destination stakeholders across the tourism value chain

• Work with STI’s special advisors • Identify priority issues • Develop practical solutions • Foster a collective vision

Destination Stewardship Overview

• Assessment and Roadmap

• Green Communities

• Education & Monitoring

• Sustainable Futures

Destination Stewardship The STI Approach

Your Speakers Today! Nancy Arsenault (Ph.D.) Judy Karwacki (MA, MBA)

www.smallplanet.travel

www.tourismcafe.org

Experiential Travel: The Defining Global Trend

Source: Nancy Arsenault (2004). Packaging Experiences.

Photo Credit: Celes Davar Photo Credit: GMIST Photo Credit: Experience PEI

Experiential Travel

Engages visitors in a series of authentic, memorable travel activities, revealed over time, that engage the senses, are inherently personal and makes connections on a physical, emotional, spiritual, intellectual or social level.

Experiences can be big and small!

An exciting gastronomic adventure exploring the delectable and varied world of Vietnamese cuisine

Highlights (10 days/9night):

• 3 Cooking classes including full day with local celebrity chef

• Chef-led visit to a Fish Market and cruise on a local drift boat

• Prepare and dine on a traditional ‘Royal Dinner’

• Learn Relaxing Tai chi in a park in Saigon

• Visit renowned Mai Gallery and private meeting with owner Doung Tuong, who translated for Jane Fonda during her visit to Hanoi during the war

• Interpretive walking tour of Hanoi’s Ancients Quarter

• Farewell Dinner at the legendary Hanoi Press Club

A journey that takes in 'must see' sights of Vietnam while tantalising the taste buds with some of south-east Asia's finest cuisine.

Explore multiple ethnic communities and discover their cultural and ethnic expressions in dress and textiles

Highlights (10 days/9 nights):

• Learn of the Indigenous Textile Traditions of Oaxaca

• Meet weavers and coops in remote communities to learn of their unique traditions in weaving and dress

• Travel with the purple Murex dyers of the coast to see how they extract this scarce purple dye

• Learn about the history and evolution of "traje" from the Isthmus of Tehuantepec

• Meet weavers and dyers from Teotitlan del Valle who continue to develop their ancient traditions

This is an extraordinary, close up journey into the communities where we meet the people and artisans who create visual masterpieces.

How is it Different? “A tourism Product is what you buy ...

A tourism experience is what you remember. “

Photo Credit: Theresa Storm

Goods

Services

Experiences

Greater Differentiation

Higher Yield

Commodities

Undifferentiated

Lower Yield

Value of Economic Progression

• WOW Guest Experiences • Good Partnerships • Word of Mouth and Word of Mouse

ROE drives value pricing

The Experience Economy

Transformation

Authors: Joe Pine & James Gilmore (1999)

Greater Differentiation

Higher Yield

Grapes (Commodity) Undifferentiated

Lower Yield

Value of Economic Progression

Agri-Touism

Bottled Wine (Goods)

Great Canadian Kitchen Party

(Experiences)

Inniskillin http://www.inniskillin.com

Wine Tastings (Services)

Differentiating with Experiences

Step 1: Know your customer

Step 2: Know your community and region

Step 3: Think about experiences that make sense for your business

Photo: Fairmont Empress

http://www.northernedgealgonquin.com/bike-train.html

Step 4: Choose a theme or story

Step 5: Plan the experience ... in detail!

Step 6: Establish the flow with the itinerary

Step 7: Select partners, suppliers and experience providers

Step 8: Think about market positioning

Photo Credit: Travel Alberta

Step 9: Set the selling price

Cost-based Pricing Value-based Pricing Fixed Costs (e.g. rent, overhead, HR, insurance) $25 Fixed Costs (e.g. rent,

overhead, HR, insurance) $25

Variable Costs (e.g. guide fees, fuel, F& B, momentos) $20 Variable Costs (e.g. guide fees,

fuel, F& B, momentos) $20

Total Costs $45 Total Costs $45

Profit Margin @ 30% $14 Profit Margin @ 30% $14

Selling Price $59 Value added @ 20% $9

Selling Price $68

Step 10: Marketing and communications

Photo Credits: Canadian Tourism

Commission

Photo Credit: Olivier Bekaert

Step 11: Prepare the team and pilot the experience

Photo Credit: Kevin Loughlin

Step 12: Deliver and evaluate the experience!

Photo Credit: New Brunswick Tourism Parks and Recreation

“Getting the community involved in

tourism instills community pride,

particularly in small rural areas.”

Marie France Doucet, General Manager Le Pays de la Sagouine, New Brunswick, Canada

http://fr-corporate.canada.travel/ressources-industrie/boites-a-outils

http://en-corporate.canada.travel/resources-industry/toolkits English:

Download your FREE

toolkit today compliments of the Canadian Tourism

Commission

Authored by: Dr. Nancy Arsenault

Francaise:

Q & A and Wrap-Up: Keep In Touch!

For more information, including proposals and pricing:

Call Us:

+503-488-5500, +44-780-221-3931

Email Us: jeremys@sustainabletravel.com

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@STI_travel

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