destination strategy

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Information about destination strategy

Published on March 27, 2008

Author: bruce


Slide1:  Destination Marketing Strategy The Time for Change is NOW!:  The Time for Change is NOW! As any forty year old knows we have to work twice as hard to keep up with the younger generation; the younger generation they are lighter, quicker, faster, get all the attention and are cheaper so everyone wants them over the more expensive 40 year old We have established our core markets of Japan, South Korea, Taiwan, Hong Kong and the Philippines but we are now a mature destination to them for the most part and need to reinvent ourselves; both the product and organization How to Grow Over the Next 40 Years:  How to Grow Over the Next 40 Years Travel agents need new ideas and reasons to sell destinations and even more so for the ones that do not have global names such as New York, Bali, Paris etc, Guam falls into this category Attractions are needed that will stimulate interests from the agents and media as these are the best forms of advertising, simply running ads is not enough not to mention we cannot afford in most markets Standing still is not an option and new sources of arrivals must be developed quickly or we will slowly lose market share How to Grow Over the Next 40 Years:  How to Grow Over the Next 40 Years Stakeholders on island are airlines, travel agents, hotels, optional tours, retailers, government agencies and the community at large; we MUST help to grow product Guam GVB is a marketing organization not the cure all for tourism of Guam Tourism is the combined efforts of we the stakeholders and the community if we fail it is OUR fault not GVB's Today’s Visitor Profile:  Today’s Visitor Profile FY 2005 Visitor Profile ( all markets ) 84% of visitors are leisure travelers 88% of visitors are on a full package or free-time package tours 84% of visitors stay 3.5 nights 71% of visitors are first timers $665 mean average on-island spending The Seasons for Guam:  The Seasons for Guam On Season - January – mid March and mid July – September are our busy seasons Off Season - April – June and October – end of December is off season Key holidays in between: Golden Week – Japan Lunar New Year – Korea, Taiwan and Hong Kong Choseok - Korea Limited group business also comes in during the year with stronger activity from April – June and October – mid December 2006 – 2046 How to Continue the Growth?:  2006 – 2046 How to Continue the Growth? Continue to diversify the arrivals from other destinations or we will always be dependent on one core market New segments within the existing markets must be developed to grow the core markets Develop product Guam so that we can sell it to the world Train our work force to better serve our guests Encourage new investors to invest on Guam and develop attractions Strengthen Guam’s Core Markets:  Strengthen Guam’s Core Markets I. Focus marketing attention and funding on Japan and Korea to grow new segments from them Diversify from only the family market as it is not enough and we cannot grow the spend with a focus on this segment only Segments that present opportunities are the Meetings, Incentive, Convention and Exhibitions (MICE) as well as the Social, Medical, Educational, Religious, Fraternal (SMERF) markets The MICE and SMERF markets also travel opposite the family market for the most part which will help to grow our arrivals during the off seasons Plant the Seeds and Grow New Markets:  Plant the Seeds and Grow New Markets II. New opportunities to diversify arrivals China’s outbound market will continue to grow but our near term opportunities are limited due to problems in the Visa applications as well as the lack of Approved Destination Status (ADS) for the U.S. Russian is a new and growing travel market, Saipan has done a good job of attracting share from this market due to no visa needed and cold Russian winters. There is still an opportunity for this market for Guam and we must get to work on it now Engage our congressional representative to work on Guam only Visa waivers for these markets and begin working these markets via the internet Why Visitor Diversification?:  Why Visitor Diversification? FY 2005 Visitor Arrivals: 80% of all visitors come from Japan 50% of Japanese visitors come from the Kanto region which includes Tokyo and Yokohama Visitor diversification will source visitors from other gateways and other market segments Avoids “putting all of our eggs into one basket” What Happens If We Do Nothing?:  What Happens If We Do Nothing? III. Many often react negatively to any discussion on attempting to grow new markets due to fear of a loss of share from the core markets; this strategy is why we are where are today and is synonymous with the prevent defense in football, we are playing not to lose rather than playing to win. Invariably most teams lose and this will be out fate also if we stand still Global or regional issues may also impact outbound travel from existing core markets Regional destinations more competitive than ever Typhoons, earthquakes etc will always be around the corner and can wreck havoc with arrivals at anytime Economic Benefits of Growing Japanese Arrivals:  Economic Benefits of Growing Japanese Arrivals Japanese Arrivals: Each 1% shift in outbound travel market share represents approximately 175,000 visitors 175,000 visitors* has an economic impact of $120 million in on-island spending (spend is approximately $655. per) Japan’s population has highest per capita household and discretionary income in region Japan has the most air service to Guam and most are familiar with the destination Economic Benefits of Growing Korean Arrivals:  Economic Benefits of Growing Korean Arrivals Korean Arrivals: Each 1% shift in outbound travel market share represents approximately 108,000 visitors 108,000 visitors* has an economic impact of $53 million in on-island spending (spend is approximately ($490.00 ea) Korea’s population has next highest per capita household and discretionary income in region Direct air service is provided by Korean Air who have the ability to adjust service as demand expands or contracts 5 Year Growth Target for Japan:  5 Year Growth Target for Japan FY 2005 Arrivals Japan Kanto Kansai Chubu Secondary cities 932,119 FY 2011 Arrivals Japan Kanto Kansai Chubu Secondary cities 1,001,723 Grow Secondary Markets:  Grow Secondary Markets FY 2005 Arrivals: Korea -116,514 USA/Hawaii - 46,605 East Asia - 46,605 FY 2011 Arrivals: Korea 279,893 USA/Hawaii 73,656 East Asia 88,397 Supplement from Tertiary Markets:  Supplement from Tertiary Markets FY 2005 Arrivals Australia Micronesia Russia Sub Total - 23,302 Sea Arrivals- 44,998 Total Arrivals - 68,300 FY 2011 Arrivals Australia Micronesia Russia Sub Total – 50,000 Sea Arrivals – 90,000 Total Arrivals – 140,000 GROWTH + 71,700 New Spend - $47,680,500. Goals to Diversify Our Visitor Mix :  Goals to Diversify Our Visitor Mix Attract market segments that: Come for non-leisure reasons Make their own travel plans or are on company paid trips (FITS) Visit Guam during the off seasons Stay longer Make repeat visits Spend more money on island Benefits of Diversification:  Benefits of Diversification Avoids dependency on sole market Helps fill arrival troughs during slack periods Utilizes infrastructure capacity better Identifies new market gateways Identifies market segments Increases visitor on island spending Target Market Segments:  Target Market Segments It is critical to our success that we develop the group segments from all source markets if we are to truly grow Group Segments: MICE (meetings, incentive, conventions, and exhibition) conventioneers SMERF (social, educational,medical, religious, and fraternal) attendees. Sports groups (e.g., professional, Olympic, collegiate athletic training, tournaments, exhibitions, races, regattas, and derbies). Commitment to the Plan:  Commitment to the Plan Allocate budgets based on desired results not current conditions Assign markets to staff and hold accountable for performance Adjust plan as needed and as opportunities or threats arise Stay the course and drive the plan to a successful conclusion Conclusion – If You Participate Everyone Wins!:  Conclusion – If You Participate Everyone Wins! If we all participate in developing product Guam so that GVB can market the product then we all win, if you are not part of the solution then you are part of the problem and should not expect anymore Let’s make Guam a winner as we all know it can be – Biba Guam! Thank You!

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