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FOBBA Strategic Planning Workshop
rmcg Inc.
March 2015
Today’s Fun
IntroductionsWhat we know! Your Input! SWOT Analysis Strategic Issues
Lunch time! Brain works! FOBBA Strategic Initiatives & Actions
Next Steps & Wrap Up!
INTRODUCTIONS
rmcg Inc.
Marketing Research & Strategic Planning specialistsTourism, Culture, Environment focused
Projects Georgian Bay Waterfront Trail Cycle Tourism – Simcoe & Grey & tourism impacts of events Festivals – Elvis, Salsa, Jazz on the Mountain, Apple Harvest Local Foods – BPS Distribution, Food Hub & Public Markets Social issues – Beekeeping, Telecommuting, Lawns & Gardens
B&B patrons – Canada and the global village
WHAT WE KNOW!
Review of 2014 Ontario B&B Industry SurveyFOBBA Situation Analysis
Red Light – Green Light Analysis
2014 ONTARIO B&B INDUSTRY SURVEY
How was the research done?
MethodologyOnline survey designed to be engaging BBCanada emailed invitation to 1850 of their Ontario B&B members
Two reminder emails over two week duration417 B&B operators responded for a 23% response rateAll respondents received highlights of the survey results for FOBBA Board.
RMCG Inc. worked closely with FOBBA on the questionnaire design, sampling, and analysis
Geographical representation of B&Bs
• Where are we well represented?
• Where could we grow?
Profiling Innkeepers and B&B Businesses
The B&B Business90% located outside of larger community & 50% in the countryside90% lived on premises90% of B&Bs 4 rooms or less85% open year‐round2/3 operated for < 10 years70% <$30,000 in revenue
Could be closer to 80% based on Stat Can figures
25% <$10,000 in revenue
The Innkeepers•Spousal relationship•Women prime operators•Age 45‐75
Snapshot of Visitors’ Experience
Our Guests’ Profile•Guests of all ages, mostly 40‐60•20%+ returning guests•~80% from Ontario•Rest of Canada ~5‐20%•US & Overseas 1‐20%, only 3% Not hosted international guests
Guest Experience•More personalized /friendly•Full breakfast included•Offers local atmosphere•Unique architectural features of house
Marketing our B&Bs
• 75% use some form of advertising• 72% have BB website• 50% use social media,
predominately, Facebook & a little twitter BUT 46% don’t use social media
• Traditional print media used such as rack cards and DMO/local BB association publications
• Work with DMO, Chamber & BB associations, only 20% work with the RTO
• 69% don’t package with any other tourism organization
Peek at Their Future & Challenges
Future•58% expect to increase in business•77% expect to continue to operate in 2‐3 years BUT 16% expect to sell and 7% expect to close
Top Issues facing Innkeepers•Increasing regulation•Accessibility legislation•Regulatory reaction to AirBnB•Increasing costs•Technology changes & social media use•Greater guests’ expectations
FOBBA SITUATION ANALYSIS
FOBBA Membership vs B&B Industry
* Source: OMTCS. Ontario Tourism Profile. Retrieved March 10, 2015. NAICS 721191 B&B Industries EstablishmentsIncorporated, $30,000 & payroll remittances** Cathy McGowan, General Manager, BBCanada, November 2014
Statistics Canada measured 377 B&B establishments* in
2012
244 new Introductory members as a result of B&B Industry Survey
offer
BBCanada had 1954 Ontario B&B listings for their
services
6 local association memberships
representing ~20 B&Bs
How many AirB&Bs are surfacing?
Local B&B Associations – Competition?
Local B&B Associations
Membership Members of FOBBA
Fergus Elora 21 7
Headwaters 6 5
Muskoka 20 2
Niagara‐on‐the Lake 130+ 2
Stratford & Area 65 4
Total 242 20 or 8%
Our Relationship5 local B&B associationsOnly 8% are FOBBA membersRevenue to FOBBA benefits to local association?
Red Light/ Green Light Update
Initiatives Rating Comments
Member Engagement 244 new “Introductory” FOBBA membersDeclining membership, local association memberships?
Sustainability Dues at $150, membership all time low, budget limitedOMTCS – assistance for strategic plan
Self‐regulation Little interest for formal regulation within industry
Operational Excellence New agreement with Resorts of Ontario
Visitor First Little progress
Product Excellence Inspection & rating system improved with Frontline Focus
Technology Web site updated, newsletter communication
FOBBA Priority Areas
1. Ratings & Inspections Frontline Focus third party inspecting & rating Some member objections (TripAdvisor vs Frontline) Membership Secretary responsible
2. Member Support & Development Web site upgraded Annual conference good value by members who attend Access to preferred suppliers (potentially expanded with Resorts of
Ontario) Access to resources of other tourism organizations? (e.g. OMTCS funding)
3. Marketing Needs to be developed after strategic plan but need to assign
responsibility & resources
FOBBA Priority Areas
Governance 5 Board members in 2014 & now 8 Board members in 2015 MOU with Resorts of Ontario for administrative support of one day a
week and access to preferred rates with some suppliers and products BBCanada continued collaborative relationship
Advocacy Appears to be important industry issue particularly related to
municipal regulations and introduction of AirBnB.
Budget Annual dues of $150/B&B ‐ ~$14,000‐$20,000 annual budget Operating expenses set to break even Unsustainable to current levels
Education Interest
• 77% interested in educational Webinars
• 80% never been to FOBBA conference
FOBBA Value to MembersFew to No Benefits‐No financial benefit, web site was not easy to navigate, web site not high on search engines, star rating system was not advertised to the public enough to warrant extra membership money.‐I am VERY OPPOSED to FOBBA becoming any sort of regulatory body vis a vis much needed tourism development in Ontario. Where does it presume to derive its absurd reference to being 'a professional B&B industry ?association‘Costs‐The cost. Each time you join an association there is a fee. I B & B strictly as a hobby. I would have to do a lot of business just to pay all the fees.Past Bad Experiences‐I was a proud and vocal member for over 10 years and inspected several times, In the last inspection the only thing I couldn't find for the inspector was my provincial business license and had difficulty renewing it. I was cancelled by FOBBA. It would have been better if I had been supported by FOBBA in figuring out how to get it. Instead we were dropped. Now invested a membership in a local association.
Their Additional Thoughts!Be the Voice‐Be known as the true "Voice" of the industry.‐connect with each owner, promote area B&B to work together and form local associations‐Generally speaking for b and b ownersBrand Awareness‐Marketing FOBBA brand so that Quality and Rating system is considered before a visitor selects a B&B‐If FOBBA were to have more visibility and was better recognized by the potential B & B guests as being an indicator of standards.‐Make the acronym visible to the average person that it belongs to the B&B trade. Now, no one outside this is aware that‐FOBBA should change its name so outsiders know what it stands for. Full name would be a start,Advocate against Municipality Regulations‐With limited resources, they need to focus on filling the Advocacy and Innkeeper Support gap which is not being filled by any other organization in this province. They need to let other organizations take the reins with ratings/inspections and marketing. They need to keep egos and personality conflicts out of their communications with members and the public. As a not‐for‐profit organization, they need to follow governance guidelines and best practices to operate with transparency, accountability and equity. They do not currently do this.‐get municipalities out of our business ...regulating the number of bedrooms " a b'n'b " can rent limits our business potential FOBBA Governance Transparency‐FOBBA must be reinvented BUT NOT BY A FEW. Must meet a broader audienceGreat Job‐You’re doing a great job!‐Appreciate this survey and info I have requested in the past on B and B's
Tourism Trends
Global Trends•Digit innovations & social media sharing growing in importance•Building engagement & long‐term relations hips•US – Cdn Dollar exchange in tourism favourOther Trends•Customization/personalization•Experiential tourism, authenticity•Slow foods, local foods•Cycle tourism, birding matches B&Bs•Newcomers
Ontario Tourism Trends 2012 •141.M visits to Ontario, 2% growth•Accommodation is 16% of total expenditure, compared to 28% for F&B•Visitors spending $297/overnight trip, hotel avg daily rate $124•Quebec, 67% of other Cdn visits, 44% form Montreal•US 8% of visits, 15% of total spending, 77% of US visitors from border states•Top 9 overseas visitors: UK, China, France, Germany, India, Japan, Brazil, Mexico & South Korea, 2% of visits & 13% of total spending
1"Source:"http://www2.deloitte.com/us/en/pages/consumerMbusine
ss/articles/2014MtravelMhospitalityMandM leisureMoutlook.html
Source: Statistics Canada’s Travel Survey of the Residents of Canada and International Travel Survey; PKF Consulting, MTCS
SWOT
Strengths Strong proven history of successful advocacy
28 years, on issues such as water quality, swimming pools, fire code regulations, and more recently advising North Bay on B&B standards
Solid, defendable operational standards Consistent with provincial laws Documented best practices to share Operational Quality Assurance Program by third party: Frontline Focus
Expanded Board with skills and commitment Increased to eight board members from four – five in past years
Nurtured strong strategic alliances with BBCanada and more recently with Resorts of Ontario and OMTCS
Successfully executed 1st Ontario B&B Industry Survey with 417 Ontario B&Bs, 223% response rate – have profile of industry, know key issues facing industry – starting with knowledge
Strengths
244 “New Introductory” members have signed up as a result of the B&B Industry survey
FOBBA has been consulted by a few municipalities regarding assistance in the preparation of bylaws for B&B businesses as a result of AirBnB start ups
Process of signing an MOU with Resorts of Ontario to support FOBBA with admin, sales and give access to certain ROO programs (preferred suppliers and products, advocacy mentorship etc)
OMTCS has funded the Strategic Planning workshop and might be willing to further support FOBBA’s Strategic Actions
With BBCanada’s data we know where higher proportion of potential B&B’s of the 1800+ in Ontario – where to focus our efforts!
70%‐80% B&Bs have modest to low revenues and reluctant to spend moreon another association
Web site is updated and shows us off well, need to drive more traffic to it
Weaknesses
Declining membership and at serious low point of 94 B&B innkeepers tend to be in industry for shorter time frame (5 years
maybe) – resulting in high turn over 25% plan sell or close their B&B in next 3‐5 years Board is still small and with volunteers with only finite resources We don’t know who are our key FOBBA markets – B&B, Govt, RTOs,
municipalities, public?? guests are internal clients & B&Bs are our external clients
FOBBA & what they stand for is not well known by public FOBBA & what value they offer is not well known by B&B owners FOBBA although want to represent the Ont B&B industry, it currently does
not have the numbers to support claim Past perception as “elite” club but now changed in positive way
Weaknesses
Inspection & Rating system not well understood and may be perceived as rules as opposed to value, past system was poorly executed and have left bad taste with some B&Bs
We have not had the legs to get out our message, communication is key to future
Opportunities
Chance to build membership quickly with “new introductory” members –low hanging fruit
Chance to leverage membership through local associations – but need to know FOBBAs value to them
We know more about what the industry needs & wants via the industry survey ‐ need to use the insight
ROO may offer credibility to both our clients ROO can give us legs to advance our initiatives quickly and generate early
wins OMTCS might be able to help with funding to executive new initiative (test
drive, pilot) Some municipalities are asking for FOBBAs help, how do we let others
know?
Opportunities
We have ingredients (intellectual property) if we package it, to market our brand to RTOs, DMOs and municipalities
We need our current members to market our brand and boast our value We can deliver educational seminars easily Our conference has educational value and we should promote it to all
current and potential members Board has knowledge of other jurisdictions to help demonstrate value of
FOBBA Strategic plan is a great first step and we should communicate this out
Threats
Introduction of AirBnB’s – where will this be heading? Younger demographic may not value B&B experience Currency fluctuations Gov’t regulations Guests have higher expectations not necessarily in line with B&B
experience
STRATEGIC ISSUES & PRIORITIES
FOBBA Historical Purpose & Mission
Core Purpose:To enable on a provincial scale an operating environment where host and guests can share the satisfaction of a consistent memorable experience, in comfort and context of a successful, safe and self‐managed home business.
Mission:To be the first point of contact and the first point of reference, for the travelling public, current and new Bed and Breakfast host, all levels of government and tourism stakeholders groups on any and every matter related to Bed and Breakfast operations in Ontario
Vision & Mission Statements
Mission: reflects the “Purpose of being” “Who we are & what we do”
Vision: reflects the “Image of the future we seek to create” Short, sweet, power words, confidence building
Nike’s Mission: "To bring inspiration and innovation to every athlete in the world.“
Google’s Mission: “To organize the world’s information & make it universally accessible & useful”
For Help: http://www.specimentemplates.org/mission‐statements/nikes‐vision‐statement.htm
Discussion Topics at AGM
Discussion Topics Ideas
In the age of Trip Advisor, how useful is a FOBBA inspection and rating to our guests? How can we increase its relevancy and guest awareness?
• Should be able to click on the FOBBA key to access a meaning of the ratings
• FOBBA rating not understood by marketplace• FOBBA video should go on member websites• Promote FOBBA’s view of B&B Standards• Change FOBBA’s name to better reflect who we
now are• Maybe OBBA – Ontario Bed & Breakfast
Association.
How can FOBBA increase membership? • Formalize alliance with ROO – use of marketing, staff and other services
• Increase use of FOBBA logo by members –brochures, websites, etc.
• Rebrand FOBBA• Follow‐up survey replies and welcome program for introductory members
• Use of social media – Facebook/ blogging• Get name into tourism related publications• RTOs, chambers of commerce, local tourism associations, college tourism courses should all be aware of FOBBA
Discussion Topics at AGM
Discussion Topic Ideas
How can FOBBA better deliver on its member education mandate? What topics are important to you?
• Possible topics include social media, website maintenance and development, food safety, customer service, how to run a certified B&B, booking systems, Trip Advisor, Market trends
• Third party tourism workshop/course availability on FOBBA website
FOBBA has neither the ability nor the desire to compete with large on‐line booking services. What can FOBBA do to increase the visibility and value of its brand with the travelling public?
• Provide summary of what stars mean• Improve FOBBA name• Publicize “Quality” standard on website• Alliances with RTO, ROO, tourism info centres,
Local tourism
If the resources and volunteers were available, should FOBBA take a more proactive role? What industry issues should we consider (e.g. accessibility legislation, TODS signage, standardized municipal bylaws, others)?
• Promote FOBBA at Association of Municipalities of Ontario
• Promote standardized bylaw with local municipalities
• Meet tourism planning groups• Increase membership to provide a stronger voice
Strategic Issues
Strategic Issues Priority Rationale
1. How do we convert new introductory members & grow more members & local B&B organizations?
1 Low hanging fruit, consistent message of value
2. How can we work with Resorts of Ontario to deliver more member benefits (marketing, admin support, advocacy & education) for Ontario B&Bs?
2 MOU, experience, legs, add credibility to FOBBA
3. How do we demonstrate value of FOBBA Inspection & Rating system to the public, industry & local tourism organizations?
3 Key to value with municipalities, quality assurance has better image
4. How can we enhance the FOBBA brand with the public, RTOs, DMOs and municipal & provincial government?
4 Past track record, quality assurance program can save them time
5. How can we deliver valued educational topics to quickly engage members?
5 Easy & already doing, need to bring in members
FOBBA INITIATIVES & ACTIONS
NEXT STEPS & WRAP UP
Last Words
FOBBA – how do you say that?Use the insight from Ontario Industry SurveyProfiling innkeepersWhere relative to BBCanada membersRelate to their needs
Spend time to develop “value” messageClear, concise, consistent with evidence!Pilot with New Intro members then refine until perfect Same with municipalities
You have momentum! Good luck!
