Perceptions of U.S. Travelers about Canada and Its Tourism Marketing

Perceptions of U.S. Travelers about Canada and Its Tourism Marketing

May 13, 2014 Quebec Tourism Industry Association

Presented by: John DiStefanoSr. Director, ResearchPhoCusWright Inc.

2© 2014 PhoCusWright Inc. All Rights Reserved.

1. Marketing vacationing in Canada to the U.S.2. Communication strategy for Canada3. Vacation consideration set 4. Value proposition of Canada5. Ad recall 6. Information channels to convert “dreaming

about Canada” to book a vacation in Canada

Today’s Topics

Methodology & Sample

© 2014 PhoCusWright Inc. All Rights Reserved. 4Custom Deliverable for TIAC: April 2014

Methodology

Source: PhoCusWright Inc.

• PhoCusWright fielded an online survey between February 14, 2014 and March 4, 2014 through Survey Sampling Inc.’s U.S. consumer sample.

• The survey targeted leisure travelers in the U.S.

• Respondents were invited to participate in the survey via a link which directed them to an online survey instrument

• Confidence Interval: 99.6%Margin of Error: 1.9%

Responses and Completion Rates

Surveys Started 43,602 100%

Screen-outs(% of started) 36,019 83%

Partials(% of started) 1,343 3%

Surveys Completed(% of started) 6,079 14%


Which of the following, if any, have you done for yourself in the past two years (since January 2012)?

Base: U.S. leisure travelers (N=6,079)Source: PhoCusWright’s Canadian Tourism Survey 2014

Purchased an overnight stay Traveled by airplane

94%

74%


What was the primary purpose of the trip(s) associated with the previous question? Check all that apply.


Leisure Business and Leisure Business Visiting family and friends

87%

16%11%

0%


100% currently hold a valid passport, passport card, EDL or Trusted Traveler Program card



Who played an active role in planning your travel over the past two years (since January 2012)?


100%

45%

11% 8% 7% 2% 1%


Geographical Distribution

Source: PhoCusWright’s Canadian Tourism Survey 2014

Tier One

California 1,200

Tri-State Area + Philadelphia 900

New England 500

Tier Two

Washington D.C. 300

Illinois 500

Florida, Texas 900Georgia

Tier Three

Upstate NY 1,000Ohio, PennsylvaniaMichigan, Minnesota(under weighted),Wisconsin

Washington State 500Oregon

TOTAL: Approximately 5,800

Findings


• Canada is top of mind for 7% of Americans planning vacations• Exceeds Disney World (2%) by more than a factor of three and compares

favorably with New York (8%). • Toronto, Montreal and Vancouver are top destinations.


HighlightsA Subset of Americans Plan Canada Vacations; Cities First


Domestic and international leisure travel have an aggregate incidence of 81% and

54%, respectively.

Demand for Vacation in Canada vs. U.S. Destinations


• The top of mind (unaided) incidence for vacationing in Canada among American leisure travelers is 7% (Tier I: 7%; Tier II: 6%; Tier III: 9%) • This is marginally behind

New York City (8%) and a factor of three times ahead of Disney World (2%).

• This falls significantly behind Florida and Las Vegas, both enjoying a 15% top of mind score.

CANADA

LAS VEGASFLORIDA

NEW YORK CITY

DISNEY


Indicators of Pent-Up Demand


• Actual travel to Canada is 3%, while the “wish list” for vacationing in Canada scores 7% • This can be accounted for, in part, by the gap between desire and action.

It may also indicate pent-up demand that will respond to advertising and, therefore, convert to vacation activity.

• Canada is accessible • Almost half (49%) of those considering a vacation in Canada report that

traveling to Canada is easy. This is corroborated by the lack of negative bias associated with travel difficulty.


For almost half considering travel to Canada, the trip is viewed as easy. Moreover, vacationing to Canada by car greatly increases its appeal.

• Previous vacation experience a good indicator of future interest• Vacationers exhibiting a top of

mind awareness are more than five times more likely to have vacationed in Canada before.


HighlightsA Subset of Americans Plan Canada Vacations; The Loyalty Effect


Familiarity is Key; but Provinces/Territories Score Low


• A loyalty effect?• There’s top of mind presence among those who have already vacationed

in Canada. • Those who demonstrate top of mind awareness for vacationing in

Canada are almost five times more likely (14% vs. 3%) as their counterparts to have taken a Canada vacation.

• And 67% of those with top of mind awareness for travel to Canada have vacationed in Canada in the last 10 years.

• A minority recognize provinces/territories• The identity of the Canadian vacation centers on “cities and attractions”

(76%), whereas only a small minority (25%) think about vacationing in Canada in terms of “provinces and territories”.


Demand for Vacation Canada: Top Three Cities

Question: When considering a vacation to Canada, what are your top three destinations?Base: U.S. leisure travelers (N=6,079); Next leisure trip Canada (N=434)Source: PhoCusWright’s Canadian Tourism Survey 2014

• In top of mind appeal, Toronto, Montreal and Vancouver are in high demand, scoring at the top of the list of cities, while Niagara Falls and Québec lead the second tier.

• Ontario, Banff and Victoria comprise a third tier, while all other destinations trail behind.

WhistlerOttawa

Québec CityCalgary

British ColumbiaNova Scotia

VictoriaBanff

OntarioNiagara Falls/Niagara on the Lake

QuébecVancouver

MontrealToronto

0% 5% 10% 15% 20% 25% 30% 35% 40%

CanadaTotal


• It is closer than the Alps • The brand of vacationing in Canada is most closely associated with

“Natural wonders,” “Friendly,” and “Value for money.”


HighlightsBranding and Value Proposition: Beauty and Value


• Emphasize nature and beauty• “Natural beauty,” “Majestic views,” and “Abundance of snow” are top

messages associated with vacationing in Canada.


HighlightsMessaging: Urban Sophistication Missed


• But there is omission of key attributes • Brand attributes that should be prioritized (i.e., reframed) are

“Warm and sunny” and “World-Class attractions.”


HighlightsBranding and Value Proposition: Fighting the Cold


However, the qualities of cities are enhanced from prior vacations. The more you experience Canada, the more you appreciate the urban/city

aspects. This needs to be reinforced.

• But also promote urban appeal and sophistication• Urban pursuits – such as

“World-class cuisine” or “Lively arts scene” – score last in the mind of vacationers to Canada.


HighlightsMessaging: Urban Sophistication Missed


It is vital to re-position cold weather perception into a positive.

• Cold weather bias must be broken• A negative bias exists

that vacationing in Canada is “too cold.”


HighlightsBranding and Value Proposition: Fighting the Cold


Branding and Value Proposition: Appealing Attributes


• Top ranked value proposition for appeal of Canada: “Natural wonders,” “Friendly” and “Value for money.”.

• This is repeated in the top themes for visiting Canada: Communications/Advertising and Top Activities. These themes are repeated across Tiers I, II and III.


Branding and Value Proposition: Appealing Attributes

Base: Next leisure trip Canada (N=434) Source: PhoCusWright’s Canadian Tourism Survey 2014

• “Warm & sunny” and “World-class attractions” are most important.


Branding and Value Proposition: Opportunities

Base: Next leisure trip Canada (N=434) Source: PhoCusWright’s Canadian Tourism Survey 2014

• For all travelers, climate – too cold (28%) – is the #1 reason not to visit Canada.

• The concern for the cold declines (21%) for those planning to visit Canada.


Branding and Value Proposition: Opportunities


• More so for those who plan to visit Canada, the negative perception of a vacation in Canada as cold needs to be reframed.


Messaging

Question: Which of the following themes makes you most interested in a vacation in Canada?Base: U.S. leisure travelers (N=6,079)Source: PhoCusWright’s Canadian Tourism Survey 2014

• Non-urban attributes score highest• Though cities are popular, natural beauty and majestic views are valued

over urban activities. This theme is consistent across Tiers I, II and III.


Messaging


• Natural beauty and majestic views are underscored in the ad recall for vacation in Canada.

• Urban and cultural activities are noticeably absent.


Messaging

Base: Next leisure trip Canada (N=434)Source: PhoCusWright’s Canadian Tourism Survey 2014

• Multiple destinations• Visitors vacationing in

Canada are more likely to visit multiple destinations (67%) than one location (33%). This suggests that the provinces need to coordinate their efforts to support synergy.


Messaging


• It’s easy• Travel to Canada “is easy” for a trip of five nights or longer according to

nearly half of visitors (49%).


Messaging


• Interest in restaurant offers• Interest in promotional offers is strongest for restaurants (21%),

followed by historical sites (19%) and festivals (15%).


Messaging


• Ad recall low• Only 22% of travelers recall an ad for

vacationing in Canada.• For those who recall an ad, the

“destination” (46%) and “imagery” (41%) are top ranked, whereas “attraction/activity” (27%) ranks a distant third.

• The “offer” garners only 5%, underscoring the weak appeal of offer-driven advertising. The research demonstrates that the call to action needs to be based more on inspiration (i.e., destination or imagery) rather than a booking action.


• Word of mouth remains top influencer• Personal recommendations, search engines and travel sites account for

the top three influencers in the travel life cycle.


HighlightsInformation Sources and Booking


These findings are consistent across Tier I, Tier II and Tier III.

Information Sources and Booking


• Points of Influence include both personal and web• Personal recommendations and websites are the top ranked information

sources for planning a vacation, each used by more than one in three travelers.

• Search engines are the #1 ranked information source (56%), followed closely by traveler review sites such as TripAdvisor (46%).

• The second tier of websites are online travel agencies such as Expedia (38%) and metasearch engines such as Kayak (28%).

• Just a minority (18%) use social networking sites for travel information sources, but for those who do, Facebook dominates (95%).

Conclusions


• Canada enjoys a strong brand among U.S. leisure travelers, but too few Americans can recall leisure advertising for Canada

• The vacation consideration set of Canada rivals New York and exceeds Disney

• The brand promise of Canada is good value, friendly, and nature

• A loyalty effect exists that makes Canada significantly more attractive after the first visit

Conclusions


Conclusions (Cont.)

• The value proposition of good value, friendly, and nature is expanded to urban pursuits with repeat exposure

• Canada is viewed as a multi-destination vacation that is easy to travel to

• Ad recall for Canada is low. The messaging that is recalled best centers on the brand (i.e. destination)

• Marketing and advertising that addresses new messaging and increases in volume offers a solution to convert “dreaming” about Canada to booking a Canada vacation.

Thank You!

Any questions, please contactJohn DiStefano

Senior Director, ResearchPhoCusWright Inc.

[email protected]

Documents

Perceptions of U.S. Travelers about Canada and Its Tourism Marketing