Why Travel Matters
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Transcript of Why Travel Matters
Why Travel Matters
And How Your Organization Can Respond to Remain Competitive
The Situation at Hand
The Long Boom 1982-2007 Dow Jones industrial Average
◦ 1992 803◦ 2007 14,165
Casino Gaming◦ Late 80’s Nevada & New Jersey◦ Today 12 states have casino gaming and 48
have some form The average size of a house has increased by
50% American style capitalism was king
◦ Wal Mart & Target => cheap goods
Living Large
Everything has changed Consumers will behave differently;
chastened, will act more wisely The grasshopper and the ant Yankee virtues vs. speculation Recalibrating expectations for the good life
Consumer Reset
The new calculation:“Do we need it or do we want it?”
Reset on Travel
Across all aspects of the destination◦ Which destination?◦ What method of travel?◦ What lodging?◦ What dining?◦ What retail?◦ What activities?
Reset: Decision Impacts
To survive the challenges of change that we currently face within our industry it will be critical to go back to the basic and fundamental starting point and answer the question of why travel matters.
The Premise
Maslow’s Hierarchy of Needs
Thoughts on Why Travel Matters
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“Travel matters to get away from the usual routine. I travel to relax and to experience new places and different environments.”
Travel Matters
“Travel opens you up. We tend to become myopic when we stay in one place. Our interactions are with the same people, or the same types of people. Our world view narrows. Conversation becomes repetitive.”
Travel Matters
“Travel allows us to escape from our everyday lives and gives us the chance to recharge. And the experience can be enriching, relaxing and rejuvenating. I'm ready!”
Travel Matters
“We travel, initially, to lose ourselves; and we travel, next, to find ourselves. We travel to open our hearts and eyes and learn more about the world than our newspapers will accommodate.”
- Pico Iyer
Travel Matters
Our New Reality
Economic Transition
Commodities Products Services Experiences
What’s real are the experiences and the
connections destinations allow visitors to make.
Return on Investment (ROI)=
Return On Experience (ROE)
In order to get a positive ROE you need toknow why travel matters.
The New Matrix
As consumers ask do I need this or do I want this so too you must ask am I appealing to a consumer want or need.
Consumer
Wants NeedsDestination Appeal
Want
Need
The new battle ground
What is the real need?
Drill Bit Hole
Understanding the New Normal
“ A consumer culture invites us to want more than we can ever have: a culture of thrift invites us to be grateful for whatever we can get.”
-Time Magazine
A Culture of Thrift
63% have cut back on entertainment 56% have cut back on non fast food
restaurants 38% are buying less tickets to sporting events 46% are going to the movies less 25% are gambling less 28% are spending less on alcoholic beverages 39% have postponed or cancelled a vacation
Consumers are Changing
Source: Time Magazine
Less consumer and business level debt Insane competitiveness recedes Living a more simple life More haggling over prices More time with family and friends Quality vs. quantity
A Reset Mindset
Rethink our relationship with the consumer It has to be more than just a sale
“We’ve got to get into the overall relationship business. If we sell tickets one-off, and hot dogs one -off and sodas one-off then we are in trouble.”
- Todd LeiwekeCEO Seattle Seahawks
Where Do We Go?
Get real with the pricing Authentic experiences from a genuine
destination Integrate the local community into your
marketing efforts Design and build your destination with
locals in mind and visitors will follow
A New Strategy to Succeed
Prior to the recession the TPI had seen significant increases
Pricing must reflect a true price value from the perspective of the consumer
Scalable – they may stay at a 2 star in a destination instead of a 4 star, but the ROE is high enough that they need to travel there
Get Real with the Pricing
Experiences will become the new currency of travel
Every point of contact that a visitor has with a destination impacts that experience
Customer service is more important than ever, as it directly affects ROE
Authentic Experiences From a Genuine Destination
The local community has a passion for every activity you offer, it’s why they moved there
Harness and integrate those locals Cooperation, collaboration, co-creation
Integrate the Local Community
Develop your destination in a way that will encourages locals to express themselves
Locals know what’s authentic - and what’s not
Events, infrastructure, community programs Create & allow for nooks and crannies
◦ Locals will fill them out and make the destination more interesting
Build for Locals….….and Visitors will Follow
Authenticity Community based planning Customer service ROE Sustainable growth Quality vs. quantity
Making Travel Matter
The Fork in Our Thinking
Scenarios to Consider
o Life will eventually return to what we knew it
o Consumer have gotten to used to their lifestyle and will return to spending and behavioral patterns they had
o Hold tight and ride the recession through
Scenario 1-Back to Normal
◦The world as we know it has changed
◦Rediscover why travel matters to your destination’s visitors – what resonates with them?
◦Make changes to make destination, marketing strategies, communication more compelling and authentic by integrating the local community
Scenario 2- The New Normal
Are you ready for the New Normal?
Organizational Goals & ObjectivesTarget AudiencesCore StrategiesProgram ElementsMeasurements
Are they still relevant – Or do they need adjusting with this ‘new
normal’?
The New Normal & Your Marketing
www.smgonline.net