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

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