DAN COVEDAN COVE

Jenolan Caves Reserve TrustJenolan Caves Reserve Trust

““MARKETING 101MARKETING 101””�� GEOGRAPHICGEOGRAPHIC

�� DEMOGRAPHICDEMOGRAPHIC

�� LIFECYCLELIFECYCLE

�� MINDSETSMINDSETS

�� BUT WHAT DOES THIS REALLY TELL US?BUT WHAT DOES THIS REALLY TELL US?

�� AND WHAT CAN WE USE THIS AND WHAT CAN WE USE THIS INFORMATION FOR?INFORMATION FOR?

What is Market Segmentation?What is Market Segmentation?�� Recognises that tourists/visitors are Recognises that tourists/visitors are notnot a a

homogenous group.homogenous group.

�� Categorises visitors by common characteristics and Categorises visitors by common characteristics and likeminded attitudeslikeminded attitudes

�� Allows us to communicate in a more targeted fashionAllows us to communicate in a more targeted fashion

�� Helps to develop more targeted marketing campaignsHelps to develop more targeted marketing campaigns

MINDSET SEGMENTSMINDSET SEGMENTS�� ‘‘PampadorsPampadors’’ –– Luxury TravellersLuxury Travellers

�� ‘‘CompatriotsCompatriots’’ –– Family TravellersFamily Travellers

�� ‘‘True TravellersTrue Travellers’’ –– Adventure TravellersAdventure Travellers

�� ‘‘WanderersWanderers’’ –– Touring TravellersTouring Travellers

�� ‘‘GroupiesGroupies’’-- Peer Group TravellersPeer Group Travellers

THE EXPERIENCE SEEKERSTHE EXPERIENCE SEEKERS

WHO ARE THE WHO ARE THE ‘‘EXPERIENCE EXPERIENCE

SEEKERSSEEKERS’’�� The experience matters more than the actual The experience matters more than the actual

destinationdestination

�� These experiential travellers are prepared to travel These experiential travellers are prepared to travel further and spend more for a genuine experiencefurther and spend more for a genuine experience

�� Experience Seekers may yield higher profits, but also Experience Seekers may yield higher profits, but also expect superior quality and value for moneyexpect superior quality and value for money

�� Want to be active in their pursuits, and to come away Want to be active in their pursuits, and to come away with a learning experiencewith a learning experience

�� Are Are notnot characterised by age, nationality or preferred characterised by age, nationality or preferred holiday mode/styleholiday mode/style

THE CHALLENGE TO TRADITIONAL THE CHALLENGE TO TRADITIONAL

TOURISM...TOURISM...

TIMES HAVE CHANGED, AND THE EXPECTATIONS TIMES HAVE CHANGED, AND THE EXPECTATIONS (AND RANGE OF OPPORTUNITIES AVAILABLE) (AND RANGE OF OPPORTUNITIES AVAILABLE) HAVE CHANGED AS WELL. HAVE CHANGED AS WELL.

50 YEARS OF CHANGE50 YEARS OF CHANGE

1960s 1970s 1980s 1990s 2000s

STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5

Products and

Activities, Places and

Things

Service Differentiation,

Niche Indulgences

Products and

Emotions, Exhilaration

and Adventures

Experiences: Learning,

Authenticity and

Sustainability

Experiences: Meaning

and Purpose

� Pre-packaged

holiday rewards for

hard work

� Hand-written paper

Tickets

� Bookings via travel

agents

� Holiday as reward/

opportunity for

indulging passions

and fulfilling

interests and

pursuits

� Typed tickets

� Telex bookings

� Holiday as an

escapist active

adventure with high

intensity emotions

� Introduction of

Global Distribution

Systems

� Facsimile bookings

� Holiday as an

opportunity to learn

and be engaged. Tap

into local knowledge/

culture

� Emerging

sustainability

considerations

� Tailoring of holiday

packages through

travel agents

� Beginning of

Internet

for bookings

� Introduction of

e- ticketing

� Loyalty Programs

� Increased demand

for special interest

needs and rarity.

� Seeking

authenticity

and highly sceptical

of over marketing

� Emerging

environmental and

social consciousness

� Dynamic packaging

and tailored

packaging online

� Consumer direct

bookings over the

Internet

� Disintegration

of traditional

distribution channels

� E-ticketing and

e-check-ins

SO WHAT DOES THIS MEAN??SO WHAT DOES THIS MEAN??�� Is this merely an academic issue?Is this merely an academic issue?

�� What are the operational implications?What are the operational implications?

�� What are the implications for future planning?What are the implications for future planning?

What does this signify?

SOME KEY CONCEPTSSOME KEY CONCEPTSWHAT IS WHAT IS ““LEISURELEISURE””?? WHAT IS WHAT IS ““RECREATIONRECREATION””??

.. when I use the term 'leisure', I .. when I use the term 'leisure', I am talking about human am talking about human experience, characterised by experience, characterised by intrinsic motivation and/or intrinsic motivation and/or satisfaction; by a subjective satisfaction; by a subjective sense of freedom to choose and sense of freedom to choose and of freedom from constraint; and of freedom from constraint; and by the understanding that it is by the understanding that it is accepted by our own reference accepted by our own reference group as being leisure.group as being leisure.

Elery HamiltonElery Hamilton--Smith (1985)Smith (1985) Can the Can the

arts be leisure? arts be leisure? World Leisure and World Leisure and Recreation, Recreation, 27(3), 1527(3), 15--19.19.

Recreation is considered to be Recreation is considered to be activity voluntarily undertaken, activity voluntarily undertaken, primarily for pleasure and primarily for pleasure and satisfaction, during leisure time.satisfaction, during leisure time.

John Pigram (1983) John Pigram (1983) Outdoor Outdoor

Recreation and Resource Management. Recreation and Resource Management. London, Croom London, Croom Helm, p. 3.Helm, p. 3.

Another definition of Another definition of

““RecreationRecreation””......

Recreation is any pursuit engaged upon during leisure time, Recreation is any pursuit engaged upon during leisure time, other than pursuits to which people are normally 'highly other than pursuits to which people are normally 'highly committed' (the latter includes such things as optional committed' (the latter includes such things as optional shopping, overtime, secondary work, house repairs, car shopping, overtime, secondary work, house repairs, car maintenance, further education, homework, child care, maintenance, further education, homework, child care, religion and politics').religion and politics').

Countryside Recreation Research Advisory Group (1970) Countryside Recreation Research Advisory Group (1970) Countryside Countryside RecreationGlossary, Cheltenham, UK, Countryside Commission, p. 7RecreationGlossary, Cheltenham, UK, Countryside Commission, p. 7..

Into the Brave New World...Into the Brave New World...

�� As societal attitudes towards leisure and recreation As societal attitudes towards leisure and recreation change, there will naturally be further diversification change, there will naturally be further diversification and segmentation increases its importance as a tool.and segmentation increases its importance as a tool.

�� But what are the operational implications for tour But what are the operational implications for tour operators, attractions and destinations? operators, attractions and destinations?

THE IMPLICATIONSTHE IMPLICATIONS�� We must offer authentic experiences.We must offer authentic experiences.

�� We must continue to try to understand the rapidly We must continue to try to understand the rapidly changing market.changing market.

�� We must customiseWe must customise

�� We must invest in product developmentWe must invest in product development

�� We must be competitiveWe must be competitive

�� We must offer value for moneyWe must offer value for money

�� We must collaborate (attractions & destinations)We must collaborate (attractions & destinations)

�� We must move into the age of Social Media, the new We must move into the age of Social Media, the new and immensely powerful, and immensely powerful, ‘‘word of mouthword of mouth’’

““InnovationInnovation””…… Why Bother?Why Bother?

� Good is not good enough any more

� The experience must be beyond that expected by the average visitor

� For a destination, the experience is now more important than the ‘Brand’, especially in visitor loyalty

� Innovative approaches are more essential now than ever before

� To achieve this is harder than ever before

Operators and attractions MUST be Operators and attractions MUST be

prepared to explore new approachesprepared to explore new approaches

Dressing up is an occasional bonusDressing up is an occasional bonus

The importance to conservation

return visitation & word of mouth.The supreme importance of achieving an EMOTIONAL

CONNECTION.

In Summary...In Summary...�� Market segmentation is a valuable toolMarket segmentation is a valuable tool

�� Changing social patterns increase this valueChanging social patterns increase this value

�� The Experience Seekers segment is socially broad, The Experience Seekers segment is socially broad, but of increasing importancebut of increasing importance

�� Study of Leisure patterns and recreational activity Study of Leisure patterns and recreational activity spectrums is no longer an academic question but is spectrums is no longer an academic question but is now a matter for operational managersnow a matter for operational managers

�� All tourist destinations must develop innovative All tourist destinations must develop innovative responsesresponses

�� There is much that we donThere is much that we don’’t yet fully understand t yet fully understand about this change, so we must be prepared to about this change, so we must be prepared to adapt, change, then adapt again!adapt, change, then adapt again!